Metrics Teach Not Market

Nathan Barry shares his perspective on business transparency, specifically regarding ConvertKit's public metrics. He maintains this transparency not for marketing purposes but as part of the company's mission to help creators earn a living.

Key Points:

• Transparency Philosophy:

  • Good idea if driven by mission
  • Bad idea if driven by marketing
  • Faced pressure from friends to remove public metrics due to competitor advantages

• Purpose of Public Metrics:

  • Serves as a real-time blueprint for other entrepreneurs
  • Allows others to track historical data at specific revenue milestones
  • Helps entrepreneurs compare their metrics (like churn) to ConvertKit's at similar stages
  • Creates "breadcrumbs" for future entrepreneurs to follow

• Authenticity of Approach:

  • Metrics hosted on third-party site (convertkit.bearmetrics.com)
  • Doesn't track traffic to the metrics page
  • Not actively used for marketing purposes

• Business Context:

  • Company is self-funded
  • Grew from $2,000 to $100,000 monthly revenue in 12 months
  • Currently at approximately $26-29 million in recurring revenue
  • Operates with 69 employees
  • Started with just $50 initial investment

• Early Financial Challenges:

  • Operated on 3% profit margins during growth phase
  • Got down to $10-12,000 in bank despite revenue growth
  • Expenses increased faster than revenue
  • Required careful cash flow management during rapid growth