Email Platform Enables Commerce

Nathan Barry describes combining email marketing with commerce capabilities, specifically how ConvertKit expanded from email marketing into payment processing. This creates a more compelling business model by pairing complementary services together.

Key Points:

• Core Strategy:

  • Start with email marketing platform
  • Add commerce/payment processing capabilities
  • Take a cut of everything customers sell
  • Integrate both services into one platform

• Business Model Advantages:

  • Revenue from both email subscriptions and payment processing fees
  • Customers don't feel extra costs (comes from processing fees)
  • Significantly reduces customer churn
  • Creates two-way value - platform pays creators while creators pay for email

• Why It Works:

  • Email builds connection to audience
  • Commerce naturally follows audience building
  • Combined services create better unit economics than standalone offering
  • Synergy between products strengthens overall business model

• Improvement Over Competition:

  • References Gumroad's limitations (4% of $10 PDFs)
  • Better business model through combined services
  • More sustainable revenue structure
  • Creates stickier platform with dual-purpose functionality