Buy Content Sites

HubSpot's strategy of acquiring content sites instead of spending on traditional marketing channels demonstrates how companies can grow through strategic acquisitions rather than paid advertising.

Key Points:

• Acquisition vs Paid Marketing:

  • Only 3 ways to grow a subscription business:
    • Get new customers
    • Expand existing customers
    • Reduce churn
  • Instead of high PPC (pay-per-click) spending, buy businesses that already have your target customers
  • Cross-sell to acquired customer base

• Real World Example - HubSpot:

  • Acquired The Hustle (content site) to gain access to their audience
  • More cost-effective than traditional marketing channels
  • Provides direct access to established audience

• Benefits:

  • Can be cheaper than paying high customer acquisition costs in competitive markets
  • Instant access to established customer base
  • Opportunity to cross-sell additional products/services
  • Pay a revenue multiplier instead of ongoing marketing costs

• Strategy Application:

  • Look for businesses that have your target customers
  • Focus on opportunities where acquisition cost is lower than traditional marketing
  • Consider content sites, resellers, or complementary businesses
  • Evaluate based on potential for cross-selling to acquired customers