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Beacons is a link-in-bio product doing $3.7k MRR and growing 290% MoM that's going after incumbent Linktree.
But it has the potential to become the unified storefront for the multi-SKU creator.
Our report and a thread
https://sacra.com/research/beacons-ai-storefront-multi-sku-creator/
But it has the potential to become the unified storefront for the multi-SKU creator.
Our report and a thread
https://sacra.com/research/beacons-ai-storefront-multi-sku-creator/
Before we get started, a note: we covered Beacons in depth as part of their equity crowdfunding campaign on @joinrepublic.
Our goal is to provide research to help folks make informed investing decisions on Reg CF campaigns. https://republic.co/beacons-ai
Our goal is to provide research to help folks make informed investing decisions on Reg CF campaigns. https://republic.co/beacons-ai
@hunterwalk coined the term "the multi-SKU creator" referring to the challenge creators have with monetizing via a single product, like a single paid newsletter.
To drive conversion rates and ARPU, creators can make more $ with multiple SKUs. https://hunterwalk.medium.com/why-a-paid-newsletter-wont-be-enough-money-for-most-writers-and-that-s-fine-the-multi-sku-f41daa074cdb
To drive conversion rates and ARPU, creators can make more $ with multiple SKUs. https://hunterwalk.medium.com/why-a-paid-newsletter-wont-be-enough-money-for-most-writers-and-that-s-fine-the-multi-sku-f41daa074cdb
That’s important because as @ljin18 points out, there is no middle class in the aggregator-driven, single-SKU creator economy.
95-99% of YouTube/Instagram/Spotify/Roblox/Twitch creators don't make enough for it to be even a part-time job. https://twitter.com/ljin18/status/1339604141295988736
95-99% of YouTube/Instagram/Spotify/Roblox/Twitch creators don't make enough for it to be even a part-time job. https://twitter.com/ljin18/status/1339604141295988736
The single-SKU creator is at the mercy of their platform’s take rate.
The multi-SKU creator can build compounding revenue streams from a combination of platforms and direct sales, which opens up full-time creation as a career path to many more people. https://twitter.com/ryangum/status/1347297689566924807
The multi-SKU creator can build compounding revenue streams from a combination of platforms and direct sales, which opens up full-time creation as a career path to many more people. https://twitter.com/ryangum/status/1347297689566924807
Companies like @stir are being built to stitch together the backoffice for the multi-SKU creator, but they still have massive fragmentation in all of their user-facing customer profiles.
Here's where the link-in-bio comes in.
Here's where the link-in-bio comes in.
The link-in-bio routes users from a creator's profile on @instagram to their merch store on @shopify, to email capture, to donations on @patreon and to content on other platforms like @YouTube and @Spotify.
The public facing link-in-bio also powers Beacons growth loop:
- Tap a referral link in a creator's Beacons
- In 5 taps, create your own custom Beacons page with links and embeds
- Paste that link into your own TikTok profile
They have 70k users growing 90% MoM since Sept
- Tap a referral link in a creator's Beacons
- In 5 taps, create your own custom Beacons page with links and embeds
- Paste that link into your own TikTok profile
They have 70k users growing 90% MoM since Sept
However, easy come, easy go: Beacons is experiencing high gross revenue churn of 16-18% monthly.
That's over 3x higher than fellow creator product @ConvertKit at 4.9%.
To date, it's masked its churn with its high rate of acquisition.
That's over 3x higher than fellow creator product @ConvertKit at 4.9%.
To date, it's masked its churn with its high rate of acquisition.
Beacons growth loop has allowed them to grow fast while spending very little on customer acquisition.
Super low CAC means even with high churn you can drive sustainable growth via an efficient CLV/CAC ratio.
Super low CAC means even with high churn you can drive sustainable growth via an efficient CLV/CAC ratio.
They need to bring down churn, no question.
If they make sure that their churn goes asymptotic by cohort, then they will bring their churn down overall via the aging of their cohorts. https://twitter.com/ericstromberg/status/1283909856735395843
If they make sure that their churn goes asymptotic by cohort, then they will bring their churn down overall via the aging of their cohorts. https://twitter.com/ericstromberg/status/1283909856735395843
It's good to remember how @shopify scared off investors with their 5% logo churn, while @BessemerVP understood that low CAC, asymptotic churn and expansion revenue made it tolerable:
With healthy growth dynamics, Beacons can go after Linktree, which is at 8 figures in ARR in a market that's bigger than people think
And it gives Beacons a shot of going after the mobile website builder / storefront market with Webflow ($2.1B), Wix ($15B+) and Shopify ($163B)
And it gives Beacons a shot of going after the mobile website builder / storefront market with Webflow ($2.1B), Wix ($15B+) and Shopify ($163B)
Beacons is the prototypical example of a product that starts off looking like a toy, per @cdixon. Its sites are crappy compared to what you can build in Webflow.
What's unique is that Beacons sites are both consumed on mobile and built on mobile. https://twitter.com/cdixon/status/688533495346417664
What's unique is that Beacons sites are both consumed on mobile and built on mobile. https://twitter.com/cdixon/status/688533495346417664
We go into much more depth in our full report where we break down Beacons freemium model, their bear/base/bull cases and the whole market and competitive landscape for the multi-SKU creator.
If you're interested in the campaign, read the rest
https://sacra.com/research/beacons-ai-storefront-multi-sku-creator/
If you're interested in the campaign, read the rest
https://sacra.com/research/beacons-ai-storefront-multi-sku-creator/
