Despite high costs and compliance hurdles, SMS can be a massive revenue stream, akin to email marketing 15 years ago. MarketBeat successfully leverages it for offers, finding a phone number is 5-10x more valuable than an email address.
Founder burnout is often a product of the business you design. MarketBeat's founder maintains longevity by actively rejecting potentially lucrative but stressful models, such as offering phone support. He builds constraints around the business to align it with his personal and family priorities.
Optimizing for cheap leads can attract low-quality subscribers who don't convert. MarketBeat found greater profitability by paying more per subscriber from reputable sources, which resulted in a much higher return on ad spend (ROAS).
When considering a significant business change, like migrating to a new platform, avoid disrupting your primary revenue source. MarketBeat's founder advises creating a new, separate project to test the change, protecting the "goose that's laying golden eggs."
Instead of a fixed post-signup offer sequence, MarketBeat's system analyzes 7-day performance data to determine which ad network or internal offer is paying the most. It then presents that top-performing offer first, maximizing immediate revenue from new subscribers.
MarketBeat's acquisition funnel doesn't stop at one email. It aims to get four opt-ins from a new user: a primary email, a secondary email (on Beehiiv), a phone number for SMS, and push notification consent. This multiplies communication channels and accelerates profitability.
Don't just treat other channels as spokes for a central email list. Instead, build a multi-channel network where email, YouTube, SMS, and other platforms all point to each other. This creates a resilient web that captures and retains audience members across their preferred platforms.
According to MarketBeat's founder, email lists experience diminishing returns and deliverability issues after hitting about one million subscribers. His strategy to scale beyond this "melting point" is to create multiple, distinct newsletter brands rather than growing a single monolithic list.
Before the current AI era, MarketBeat grew its initial audience by programmatically generating news articles. They used templates (like Mad Libs) for company earnings reports, which drove traffic from Google News to company-specific pop-up opt-ins, securing their first 100,000 subscribers.