Equity Beats Sponsorships

Nathan Barry shares his perspective on the most profitable way to monetize attention, arguing that building equity through your own products is more valuable than taking sponsorship deals or short-term cash opportunities.

Key Points:

• Fundamental Question:

  • What is the most profitable place to direct attention?
  • Traditional sponsorships ($5k for newsletter, $500 for Instagram) aren't that profitable

• Celebrity Examples:

  • Jessica Alba: Made more wealth from starting her own company than from movies
  • Ryan Reynolds: Shifted from doing ads for others to buying companies (Mint Mobile, Aviation Gin)
  • Both prioritized equity over cash payments

• Personal Application:

  • Applied this thinking to ConvertKit
  • Instead of monetizing through sponsorships, ebooks, or memberships
  • Chose to build a SaaS company for long-term equity value

• Business Evolution Insights:

  • What works early might not work later
  • Early-stage businesses might need cash flow (through strategies like annual plans)
  • Later-stage businesses can focus more on sustainable growth
  • Important to recognize when strategies no longer serve the business

• Patient, Long-term Focus:

  • Stayed calm despite opportunities to sell
  • Resisted life-changing buyout offers
  • Maintained focus on building long-term value
  • Avoided short-term revenue spikes for sustainable growth