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- Convertkit vs Beehiiv
If you want to market your products, email marketing is one of the most effective channels.
And things are getting spicy in that space…
The 2 biggest companies are practically at war.
Company rivalries are always special. They offer a unique view of company values and agility, and it usually ends up benefiting the customer (as everyone tries to give a better offer).
Some of these battles will go down in history:
1/ Uber vs Lyft
2/ Adidas vs Puma
3/ Apple vs Samsung
The same is happening with ConvertKit and Beehiiv.
ConvertKit is already established as a giant with $40m+ ARR. Beehiiv is the new kid in town with massive VC funds (they raised $32M series B this week)
They’ve done fun banter in the past, not included each other in SEO articles (or worse, portrayed each other in a negative light). But that happens…
What’s new is that Beehiiv recently changed its entire pricing model. It’s a more usage based pricing. For me, going from $99 to $250 / month doesn’t make sense to me. At this point, I start getting trust issues.
And Convertkit started a B2B campaign targeting all Beehiiv customers.
Here’s the email they’re sending:
@WG_Mojo@denk_tweets@nathanbarry Hi [First Name],
Did you catch beehiv's price increase announcement?
If this worries you, I’d love to share more about how ConvertKit is lowering prices. We’re launching a newsletter plan that might fit your needs perfectly.
We collaborate and support a wide range of… twitter.com/i/web/status/1…
— Matt Paulson (@MattPaulsonSD)
3:16 AM • Apr 28, 2024
Is this good? or bad? ethical?
You decide. I’m not here to opinionate anyone’s business principles.
But here’s the reaction of Beehiiv founder and CEO:
I loooooove when our competitors spam our users with false information
at least this time @nathanbarry hired someone else to do it for him.. delegation is everything 🤝
— Tyler Denk 🐝 (@denk_tweets)
10:03 PM • Apr 25, 2024
🍿🍿🍿
My rules for pricing a product
Having grown Tweet Hunter and Taplio to a combined $10M ARR — I’ve learned a thing or two about pricing:
1/ Product > prices
People will pay a premium for a better product. Gaining customers on prices is a downward spiral I don’t recommend you get into.
That being said, staying competitive is always beneficial. Especially if your product is better.
2/ You can’t earn profits from every customer
There will always be a few heavy users you will do a loss on no matter the price. The goal is to remain profitable with good margins overall.
Don’t overoptimize.
🔴 I'm launching something (again...)
Paying $250/mo for sending emails doesn't make sense to me.
At least for light users running a humble newsletter.
That’s why — I’m planning to launch an email-sending platform.
I don’t have a name. I don’t have the product.
I only know that I have to ship it before baby #2 comes in July 😅😅
If you're interested in the product: enter the waitlist here:
If you have any ideas/ want to collaborate on this: DM me on Twitter/reply to this email.
Looking forward to hopefully launching a competitor to Convertkit and Beehiiv😉
Tweet of the week
Great update on the state of AI in 2024
Zuck on Dwarkesh
TLDR: AI winter is here. Zuck is a realist, and believes progress will be incremental from here on. No AGI for you in 2025.
1) Zuck is essentially an real world growth pessimist. He thinks the bottlenecks start appearing soon for energy and they will be take… twitter.com/i/web/status/1…
— Ate-a-Pi (@8teAPi)
12:31 AM • Apr 20, 2024
That’s it for this week!
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See you next Thursday!
Keep building
Tibo 💻