Thread by @nathanbarry

Everyone wants to calculate a free to paid newsletter conversion rate by [total paid subscribers] / [total free subscribers]. While the math is correct, you have to account for conversions over time.

A free audience doesn't convert to paid all in one go.

You're really tracking the current free vs paid *ratio* for your list.

A conversion rate should be based on a cohort or a campaign. For example: "My automated upgrade pitch email sequence has a 7% conversion rate."

Or: "The Cyber Monday campaign had a 5% conversion rate."

@benedictevans *currently* has a 1.5% free to paid conversion ratio, but the paid newsletter has only been around for 5 months. Over time his conversion ratio will increase as he promotes the paid offering more.

$250k+ ARR is great!

https://twitter.com/benedictevans/status/1343900001500590080

Benedict also kept the free newsletter exactly the same. If he moved more of the free offering behind a paywall then he would drive more conversions, but the most paid subscribers isn't the only goal.

There's still immense value in a free newsletter.

.@lennysan has an 8-9% free to paid ratio after 9 months. He puts 3/4 of his content behind the paywall and has a stronger call to action to upgrade.

I've seen free to paid ratios as high as 20%, but most sit in the 7-12% range.

Here are three things you can do today to drive more paid subscribers:

1. Add an automated email sequence to pitch upgrades.

2. Use conditional content to talk to free and paid subscribers differently in the same email.

3. Move more content behind the paywall.

But keep in mind the best goals are the most revenue AND reach. You may be better off with a lower free to paid ratio, but a much faster growing free list.

Make sure the metric you are focusing on is right for your business and audience.