Hubspot's $20M Revenue Sacrifice
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Sam Parr shares a story about Hubspot's decision to cancel significant advertising revenue after acquiring his company.
"When we sold the company to Hubspot, we went into the year with millions of dollars booked in advertising and were probably going to do $20 million the next year. They told us to cancel all those contracts and give the money back - they weren't going to do advertising anymore.
I said we could scale this to tens of millions, but they responded 'We make a billion dollars a year, and we would just have to report that and it's a little too complicated and people won't understand it.'
The decision to not do advertising was worth more to them than the tens of millions of dollars of advertising revenue they could have made, which is wild."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.