Ben Thompson of Stratechery joins Acquired to discuss the business's history and evolution. Topics include pioneering the subscription internet media model, the expansion into podcasting and the Stratechery Plus bundle, and the challenges of building a paid publication. They also touch on building brands, the advantages of a large subscriber base, and growing a paid podcast subscription service.
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Quick takeaways
Creating a unique and memorable brand identity is crucial for standing out in the crowded online landscape.
Pioneering a subscription model with highly differentiated content and delivering extra content via email can attract a dedicated audience and maximize revenue per user.
Continuous refinement and iteration are essential to meet the needs of the audience and overcome initial struggles for growth.
Positive word-of-mouth, social media sharing, and influential figures play a significant role in attracting attention and fostering recognition in the industry.
To succeed on the internet, it is important to find your own niche and be the biggest fish in your own pond.
Deep dives
Building a Memorable Brand: The Journey of Stretechary
When Ben Thompson started Stretechary, he wanted to create a brand that would be easily recognizable and memorable. Despite the unconventional name, Stretechary became a unique and distinct website in the tech industry. The visual elements, such as the orange color scheme and hand-drawn illustrations, added to the site's identity. The site's distinctive features helped it stand out in the crowded online landscape, and its memorable nature contributed to its growth.
The Shift to Subscription Model and Email Newsletters
Recognizing the limitations of an ad-driven model, Ben Thompson pioneered a subscription model for Stretechary. He believed that producing highly differentiated content would attract a dedicated audience willing to pay for high-quality analysis. By charging a low subscription fee, Ben maximized revenue per user and used tools like Stripe to make the payment process efficient. Additionally, Ben made the strategic decision to deliver extra content to subscribers via email to improve their experience and increase engagement.
Early Challenges and Lessons Learned
Building Stretechary was not without its challenges. The initial product launch faced technical issues and a confusing user experience, leading to dissatisfaction among both free users and subscribers. Ben had to make quick adjustments, including going back to the old website and delivering additional content via email. These changes proved to be successful, gradually attracting more subscribers and increasing engagement. The early struggles taught Ben the importance of continuously refining and iterating to meet the needs of his audience.
Growth and Recognition
Stretechary's growth was fueled by positive word-of-mouth and social media sharing. Influential figures like John Gruber of Daring Fireball played a significant role in introducing Stretechary to a wider audience, leading to a rapid increase in Twitter followers. With a clear focus on consistently producing high-quality content, Stretechary garnered attention from readers, analysts, and industry professionals. The unique brand, valuable insights, and subscriber benefits contributed to Stretechary's success and recognition in the tech industry.
The Importance of Word-of-Mouth Business and Subscription Growth
Word-of-mouth business is crucial for exponential growth, but networks can get exhausted, leading to a more linear growth pattern. The podcast episode discusses the speaker's experience with exponential growth in subscribers after simplifying the subscription model and reaching 1,000 subscribers. The exponential growth allowed the speaker to secure subscriber revenue and attract more interest to the business. Additionally, the episode highlights the importance of making payment processes easy and building trust with subscribers to overcome initial hesitation.
The Evolution of Sturtecherie's Content Consumption and Strategy
The podcast explores the evolution of how Sturtecherie's content is consumed. Initially focused on email newsletters, the speaker highlights the advantages of email as a feed that people check daily, allowing for consistent engagement. However, the rise of platforms like Substack and podcasts led to changes in content consumption habits. Sturtecherie adapted by providing podcast options for subscribers and ensuring easy access to content across different mediums. The speaker also emphasizes the importance of a web experience for growth, as social media and link-sharing play significant roles in attracting new readers.
The Power of Subscriptions and Customer Feedback
The podcast discusses the advantages of subscription models for writers and publishers. Subscriptions provide recurring revenue and allow writers to focus on keeping subscribers satisfied. Feedback from subscribers, expressed through subscription numbers, helps writers understand their impact and improve their content. The podcast also highlights the value of subscribers' trust in contributing financially to support content creators, indicating a positive incentive structure. The speaker mentions that subscriptions create a feedback mechanism that goes beyond direct communication and allows writers to reach a broader audience.
The Internet's Winner-Take-All Effects and Finding Your Own Pond
One of the main ideas discussed in the podcast is the winner-take-all effects of the internet in specific markets. The speaker explains that in order to succeed on the internet, it is important to be the biggest fish in your own pond rather than competing with other fish. The internet provides vast opportunities in different markets, and the key to success lies in finding your own niche and defining your parameters. The speaker gives the example of different analysts covering tech and media, where each analyst focuses on a specific market, such as Apple or social media. This illustrates how the internet allows for specialization and finding unique ponds for success.
The Power of Branding and the Challenge of Writing a Book
Another key point addressed in the podcast is the power of branding and the challenges of writing a book. The speaker discusses the concept of aggregation theory, which has gained recognition and influence due to branding. By giving a term to the concept and coining it as aggregation theory, it gained traction and became more widely accepted. However, the speaker reflects on the idea of writing a book about aggregation theory and shares the difficulties and uncertainties involved. These include time constraints, fear of being frozen in time, and the transient nature of the internet. The speaker also emphasizes the importance of delivering personal analysis rather than parroting others, maintaining independence, and continuing to provide unique perspectives through interviews and articles.
Ben Thompson joins Acquired to discuss the business of Stratechery itself and celebrate 10 years (!) of the internet’s best strategy analysis destination. Even beyond Stratechery’s enormous impact itself on business and tech over the years, Ben’s work inspired a whole generation of business content creators — this show very much included — and it was super special for us to give the Acquired treatment to one of our own heroes. We cover the full history of Ben pioneering the subscription internet media business model (indeed SubStack’s seed round pitch was “Stratechery-in-a-box”), and how + why he’s evolved the business since and is now doubling down both on podcasting and a broader vision of the Stratechery Plus bundle… including for the first time content not made by Ben himself! Tune in and enjoy.
Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
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