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Justin Duke

๐Ÿ‘ค Speaker
125 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

Maybe you want to segment by tag or by target user in a certain vertical.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

Bundown makes it really easy to do that.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

Great question.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

It's around two-thirds comes from that flat SaaS revenue.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

The flat revenue is sort of the paywall for some of the premium features like custom domains, advanced analytics, that sort of thing, whereas metered is purely based on volume.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

So only a third of ButtonDown's revenue comes from that just tax on top of the email you're sending to subscribers.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

Two-thirds, the majority, is coming from the premium feature set.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

I think if I had to choose between the two, purely usage-based because it leans into expansion revenue a bit more nicely.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

You're always going to have an upper bound if you do that conventional three-column SaaS pricing grid of $29 a month, $99 a month, $199 a month.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

You're then tying yourself to that maximum price unless you have a contact us thing.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

If you do something that's purely usage or metric-based, you open yourself up to grow your revenue and your ARPU per customer as they mature and as they continue to do well on the platform.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

I think that's fair.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

I think one of the things I still need to resolve is the fact that my unit costs are very similarly disincentivized.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

I pay a certain fraction of a cent per email I send to AWS.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

So in a way, I'm almost a little bit disincentivized for my customers to use the platform extensively.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

an account that sends out one email a day is costing me 30 times more than an account that's sending out one email a month, even if I'm taking away a pretty similar margin from each one.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

So that's something I still think I need to work on a little bit with the business model.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

But it's why I've found a bit of success with sort of the hybrid approach of you get that metered billing, but then you also get that flat margin on top of it.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

I launched it in around 2016.

SaaS Interviews with CEOs, Startups, Founders
ButtonDown Email Is Niche Mailchimp, Hits $5k in MRR

It was less of a company and more of a very hackish MVP because I wanted to use it.