Nathan Barry, founder of ConvertKit, talks about the creator economy, building ConvertKit, culture, profit sharing, and the evolution of the creator economy. Insights on monetizing skills, personal background, overcoming challenges, marketing tactics, equity structures, and building a profitable business without external investment.
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Quick takeaways
The creator economy offers lucrative opportunities for individuals to monetize their unique skills directly through various avenues like writing newsletters or selling ebooks.
Advancements in technology and the growth of internet audiences have significantly expanded opportunities for creators to reach broader audiences through tools like social media platforms and email marketing.
Effective communication and negotiation strategies are crucial, as demonstrated through personal anecdotes shared in the podcast, emphasizing the importance of active listening and thoughtful responses in securing favorable outcomes.
Deep dives
Understanding the Creator Economy
The creator economy is a new concept where individuals can earn a living by leveraging their unique skills to engage and serve an audience. Unlike traditional employment, creators can monetize their talents directly through various avenues such as writing newsletters or selling ebooks, resonating with an audience for financial support. This shift in earning potential has revealed that many high-income earners are creatives rather than professionals like doctors or lawyers, emphasizing the lucrative opportunities in the creator field.
Evolution of Opportunities in Content Creation
Advancements in technology and the growth of internet audiences have significantly expanded opportunities for creators. The increase in online content consumers and improved discovery mechanisms have facilitated broader reach for creators. Tools like social media platforms and email marketing have enabled direct, scalable access to audiences, surpassing the limitations of traditional publishing or marketing methods. By leveraging these tools effectively and focusing on specific niches, creators can achieve substantial growth and revenue.
Real-Life Experiences with Negotiations
The importance of effective communication and negotiation strategies is exemplified through personal anecdotes shared in the podcast. Stories of salary negotiations during job interviews emphasized the significance of active listening and strategic responses. These experiences highlighted the impact of non-verbal cues and thoughtful responses in negotiation scenarios, showcasing the value of patience and tact in securing favorable outcomes.
Introduction of Profit Sharing and Equity Options
The speaker discusses their initial approach to the business, intending to avoid venture capital and focusing on profit-sharing and equity options for employees instead of traditional equity. They highlight examples from Basecamp and Mailchimp that influenced their decision, emphasizing the value of profit-sharing and fair compensation.
Implementation of Stock Options and Secondary Sales
The speaker describes the shift towards issuing stock options and organizing secondary rounds for team members, ensuring liquidity and ownership benefits. They narrate the process of setting a company valuation, involving team members in equity buybacks, and partnering with investors through innovative funding methods like roll-up vehicles. This approach is aimed at providing long-term stability, consistency, and predictability in company growth and compensation structure.
Nathan Barry is a pioneer of the creator economy. He is the founder and CEO of ConvertKit, an email marketing platform used by creators like James Clear, Tim Ferriss and Arnold Schwarzenegger. He’s also the author of Authority, an eBook that has sold over 15,000 copies worldwide since its release.
In this episode of the Elevate Podcast, Nathan Barry joins host Robert Glazer to discuss building ConvertKit, ConvertKit's unique culture and profit sharing, the creator economy and much more.