Nathan Barry's 3 Rules for Building an $8M Business

This article is about Nathan Barry, a successful entrepreneur who has built a thriving business using a unique approach. Learn about the strategies he employed to grow ConvertKit into an $8M company, and discover the three key mantras that guide his success.

The Early Days: Building an Online Audience

Nathan started blogging in 2011 with the goal of making money online and building relationships with people in his field. His focus on content creation led him to publish two successful eBooks, "The App Design Handbook" and "Designing Web Applications", which boosted his audience and income.

• Nathan's first eBook, "The App Design Handbook," generated $12,000 within 24 hours of launch, demonstrating the power of a targeted audience and effective marketing.
• He learned that teaching everything he knew through his blog post-launch, helped him gain recognition and credibility.
• He emphasized the importance of consistent creation, publishing his second eBook just 90 days after the first. This demonstrated that daily writing can significantly accelerate the process of creating valuable content.

Realizing the Value of Email Marketing

Nathan discovered the power of email marketing during the promotion of his second eBook. He realized that email subscribers were 15 times more valuable than Twitter followers, leading him to shift his focus towards building an email list.

• Nathan discovered the effectiveness of email marketing over other social media channels and realized that the value of an email subscriber outweighed other platforms by a considerable margin.
• He started using MailChimp but found its features limiting and realized the need for a more user-friendly and effective email marketing platform.

Kickstarting ConvertKit

Nathan publicly launched his SaaS company, ConvertKit, as a project on his blog, sharing his progress with his audience. He was transparent about his goals and challenges, building anticipation and attracting support from other entrepreneurs.

• He set a goal of generating $5,000 in revenue within six months using only $5,000 of his own money, relying on pre-orders to fund the rest of his business.
• He shared every detail of the journey, including the challenges and setbacks, creating a public record of his business's creation.
• He attracted support from established entrepreneurs like Hiten Shah, David Hauser, and Amy Hoy, who were impressed by his commitment and willingness to work in public.

Declining Sales and Doubling Down

Despite initial traction, ConvertKit's revenue declined after a year and a half, leading Nathan to consider shutting down the business. However, he realized that he hadn't yet given it his full effort and decided to double down on his commitment.

• He invested $50,000 of his savings into ConvertKit, demonstrating his renewed dedication to the business's success.
• Nathan's decision to either "shut down or double down" highlighted the importance of self-reflection and commitment in building a successful business.
• He was driven by a desire to avoid regret, knowing that he would always wonder what could have been if he had not given ConvertKit his best shot.

How ConvertKit Grew

Nathan focused on traditional sales techniques and exceptional customer service to grow ConvertKit, offering free migration services to overcome the common objection of switching email providers.

• Nathan actively reached out to potential customers, understanding their needs and frustrations with existing email marketing solutions.
• He offered free migration services to alleviate the perceived burden of switching platforms, making it easier for potential customers to onboard.
• This strategy helped ConvertKit gain traction, with revenue increasing from $2,000 per month to $5,000 per month in just a few months.

Working In Niches

Nathan achieved significant success by targeting small, highly-specific niches, such as professional paleo recipe bloggers who are women. He leveraged the "echo chamber" effect to gain momentum within these niches.

• Targeting small, specific niches allowed Nathan to focus his marketing efforts and build strong relationships with key influencers within those communities.
• He understood that the "echo chamber" effect within these niches made it easier to gain traction and build momentum, as people within the niche tended to follow each other and trust recommendations from within their community.
• Nathan's strategy of targeting smaller niches enabled ConvertKit to achieve significant growth by creating a buzz within these communities.

How To Use 5 Seconds of Courage To Win at Networking

Nathan utilizes a strategy of "five seconds of courage" to overcome his introverted nature and effectively network at conferences, allowing him to build valuable relationships with industry leaders.

• He prepares by identifying potential connections he wants to meet at the conference, making the networking process more manageable and focused.
• He uses a combination of email, Twitter, and in-person interactions to establish a connection with key individuals before and during the event.
• He engages with potential connections in a short, friendly manner, making a good first impression and highlighting his value as a connection.

Nathan Explains The Three Business Philosophies That Drive Him

Nathan Barry's three core mantras for success are "Teach Everything You Know," "Create Every Day," and "Work In Public." These philosophies are deeply embedded in his business practices and have contributed significantly to his success.

• Teach Everything You Know

  • Nathan believes in sharing knowledge and experience openly, regardless of whether it's a success or a failure. He understands that this approach helps others learn and grow, creating a more collaborative environment.
  • He believes that sharing his knowledge is not only beneficial to others but also a powerful marketing strategy.

• Create Every Day

  • Consistent creation is essential to Nathan's success, and he emphasizes the importance of daily habits to achieve significant results. He firmly believes that creating every day, even if it's just a thousand words, can lead to extraordinary outcomes.
  • This principle has allowed him to write two books and launch his SaaS company within a short period.

• Work In Public

  • Nathan advocates for transparency and public accountability. He believes that sharing your work process, not just the final product, can attract attention, create a sense of community, and ultimately drive more success.
  • This approach has allowed Nathan to build a strong online presence, attract supporters, and leverage the power of word-of-mouth marketing.

Nathan's Required Reading

Nathan recommends two books that have influenced his journey: "Anything You Want" by Derek Sivers and "Rework" by Jason Fried and David Heinemeier Hansson.

• Anything You Want by Derek Sivers

  • This book emphasizes the importance of finding your own path and doing what you love, regardless of societal expectations.
  • It provides insights on building a successful business through creativity, passion, and authenticity.

• Rework by Jason Fried and David Heinemeier Hansson

  • This book challenges conventional business wisdom, advocating for a more efficient and streamlined approach to work and building a successful business.
  • It emphasizes the importance of focusing on core values, eliminating distractions, and prioritizing work that truly matters.