How Morning Brew Grew to 6 Million Subscribers and $70 Million Revenue in Six Years | Austin Rief, Co-founder & CEO
Dec 12, 2024
auto_awesome
Austin Rief, Co-founder and CEO of Morning Brew, shares insights into building a massive media platform from scratch while still in college. He discusses the journey from a small newsletter to 6 million subscribers and $70 million in revenue in just six years. Austin dives into innovative acquisition strategies, including leveraging Instagram Stories for low-cost subscriber growth. He also sheds light on hiring remote talent in Sri Lanka, navigating the creator economy, and the importance of product-market fit in today's competitive landscape.
Morning Brew's success stemmed from their commitment to high-quality content and a focused ambassador program for subscriber growth.
The founders prioritized a self-sustaining financial model, opting for minimal external funding and maintaining frugality to fuel growth.
Strategic early engagement with new advertising platforms, like Instagram Stories, enabled them to acquire subscribers at an exceptionally low cost.
Deep dives
Building a Successful Newsletter from Scratch
The journey of creating a successful newsletter began with a focus on delivering high-quality content consistently. The founders prioritized refining their daily newsletter, Morning Brew, which initially garnered attention and subscribers through an ambassador program and focused outreach. This dedication to content quality allowed them to gain traction, growing their subscriber base rapidly. By staying committed to their core mission of delivering the best newsletter possible, they established a solid foundation before expanding their offerings.
Embracing Financial Independence and Growth
Morning Brew's financial strategy involved maintaining frugality while leveraging profits from their newsletter to fuel growth. Instead of seeking extensive external funding early on, the founders opted to initially raise a small amount of capital, which they barely touched. This approach allowed them to build a successful business that generated significant revenue, embracing a self-sustaining model. As they scaled, they remained focused on profitability, which positioned them favorably in a competitive landscape.
Navigating the Landscape of Digital Advertising
The strategic timing of launching and utilizing new advertising platforms significantly contributed to Morning Brew's subscriber growth. Being one of the first advertisers on Instagram Stories allowed the newsletter to secure subscribers at an astonishingly low cost. This early access positioned them advantageously during a time when digital advertising was becoming increasingly competitive. Their ability to seize opportunities when new platforms emerged proved vital for establishing their brand and expanding their reach.
Innovative Talent Sourcing and Recruitment
A key aspect of sustaining Morning Brew's growth involved effective hiring practices tailored to the fast-paced startup environment. The founders employed creative recruitment strategies, such as sourcing candidates and networking through their existing connections, allowing them to expedite the hiring process. They emphasized the importance of assessing candidates' hands-on experience and understanding of their roles, ensuring alignment with the company's objectives. This focus on hiring quality talent significantly influenced the operational efficiency and culture at Morning Brew.
Future Aspirations and Goals
Looking ahead, Morning Brew aims to position itself as a leading media outlet akin to the Wall Street Journal for a new generation. The founders see immense potential to impact younger business professionals' lives while continuing to enhance their product offerings. They acknowledge that while they have achieved notable success, there is still a considerable journey ahead to fulfill their vision. Their strategic direction emphasizes growing revenue while maintaining a strong connection with their audience and community.
Austin Rief is the Co-founder & CEO of Morning Brew, building the Wall Street Journal for the next generation. They started the company in 2017, and grew it to 6 million subscribers and $70 million in revenue in six years.
We talk through the journey starting Morning Brew with Co-founder Alex Lieberman while students at the University of Michigan, and Austin's playbook for starting a new media company from scratch today. We get into the creator economy, early stage investing, ad based business models, being the first advertiser on Instagram Stories, advice for hiring, and his secret for sourcing remote talent in Sri Lanka.
Timestamps: (00:00) Intro (03:42) How to start a media company from scratch today (13:01) Future of the creator economy is niche products (14:42) Opportunity in B2B media today (17:05) Reflecting on investing during ZIRP (21:30) Why its starting to feel like 2021 again (23:16) Talking VC portfolio math (27:09) Starting Morning Brew with Wall Street interview prep (33:35) Being so dumb that they never pivoted from being a newsletter (35:29) How newsletter business models works (38:32) Morning Brew’s first viral Instagram post (40:37) Acquiring subscribers for two cents on Instagram Stories (42:29) Nik Sharma’s poor mans paid ads strategy (44:32) Landing Discover as their first big sponsor (46:06) How agencies and ad buying works (49:49) Why sales roles are so hard to hire for (53:04) Importance of offsheet references (57:43) Sourcing talent in Sri Lanka with Oceans (01:04:23) Austin and Alex’s unique co-founder dynamics (01:07:16) Dental plans, rotisserie chickens, and company laptops (01:10:00) Building WSJ for the next generation
