How Kit (Formerly Convertkit) Hit $25M Revenue Using SEO and Community Flywheels

Kit, formerly known as Convertkit, has carved out a significant niche in the SaaS industry, particularly among creators and content marketers. The company’s journey to achieving a $25 million annual run rate is a testament to strategic growth tactics, effective use of SEO, and a strong community focus. Nathan Barry, the CEO, has shared insights into the methods that propelled Kit to this impressive milestone. In this article, we’ll delve into the strategies and systems that were instrumental in reaching these revenue targets.

2015: Community Building as a Growth Foundation

Convertkit’s journey began with a strong emphasis on community building. Nathan Barry understood early on that fostering a robust community would be key to the company’s growth. By focusing on creators and their stories, Convertkit differentiated itself from competitors. This approach not only helped in building a loyal user base but also established the company as a thought leader in the creator economy.

2016: Profit Sharing and Employee Engagement

In 2016, Convertkit introduced profit sharing to reward its team for their hard work and dedication. This move was instrumental in maintaining a high level of employee engagement and retention. During a team retreat, Nathan Barry announced the distribution of $100,000 in profit sharing among the team members. This initiative not only motivated the team but also aligned their efforts with the company’s long-term goals.

2018: Leveraging SEO for Organic Growth

One of the pivotal tactics Convertkit employed was leveraging SEO to drive organic growth. By 2018, the company was generating over 120,000 organic clicks per month and was ranked for nearly 70,000 organic keywords. This SEO strategy accounted for approximately 40% of all new accounts, underscoring its effectiveness. The creation of valuable content, such as creator stories, played a significant role in this success.

How Kit’s Content Strategy Boosted SEO

The company invested in creator stories, which involved profiling creators and their journeys. Convertkit hired local photographers to capture high-quality images for these stories, which were then offered to creators for use on their websites. Additionally, these photos were made available on Unsplash, contributing to millions of downloads and numerous backlinks to Convertkit’s site. This tactic not only enhanced brand visibility but also boosted SEO performance significantly.

2019: Affiliate Program as a Revenue Driver

Convertkit’s affiliate program was another major contributor to its revenue growth. At its peak, affiliates drove over 30% of the company’s revenue. Although the proportion of revenue from affiliates has decreased to around 20% as other channels have grown, the program remains a vital part of the company’s marketing strategy. With over 3,000 affiliates participating, Convertkit has been able to reach a wider audience and increase its market share.

2020: The Role of a Free Plan in Conversion

In 2020, Convertkit introduced a free plan to attract a broader user base. This decision was inspired by the success of similar strategies at companies like Mailchimp. The free plan exceeded expectations, achieving a 5% conversion rate from free to paid accounts, surpassing the projected 3%. This tactic not only increased the user base but also established a pipeline for future paid conversions.

How Kit Created a Flywheel for Continuous Growth

Nathan Barry and his team implemented a flywheel strategy that integrated various growth tactics into a cohesive system. By aligning content creation, SEO, and community engagement into a continuous feedback loop, Convertkit ensured that each success built on the previous one. This approach has been crucial in sustaining long-term growth and maintaining a competitive edge in the market.

Future Prospects: Marketplace and External Discovery

Looking ahead, Convertkit aims to further enhance creator visibility through a marketplace initiative. Although this is a few years away, the focus is currently on external discovery, which involves promoting content across various platforms to increase creator reach. This strategy is expected to pave the way for internal discovery and eventually a full-fledged marketplace.

In conclusion, Convertkit’s rise to a $25 million revenue run rate is a result of strategic community building, effective use of SEO, an impactful affiliate program, and a well-executed free plan. Nathan Barry’s leadership and the company’s innovative approach to marketing have set a strong foundation for continued growth. For more insights on Convertkit’s journey, visit their GetLatka profile or their official website at convertkit.com.

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