Why $50M+ Startups Are Ditching Ads for Newsletters

Hey Advisor, it's Tommy.

Today, we're diving into why companies like Motion Creative, Rippling, etc. are building media assets instead of just running more ads.

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GROWTH STRATEGY
An in-depth analysis

I noticed something interesting a while ago.

Three $50M+ VC-backed startups all launched newsletters within weeks of each other.

Not just any startups – Motion Creative, Rippling, and Mutiny.

The same companies that have millions to spend on fancy ads are suddenly investing in... newsletters?

Here's the thing:

They know something most founders miss.

While you're burning cash on ads that get more expensive every quarter...

These companies are building assets that appreciate over time.

Let me explain why the smartest B2B companies are all rushing to build media channels right now.

Your CAC is probably increasing 10-20% year over year.

That's not sustainable for any business model.

Meanwhile...

The companies with strong newsletters are seeing their acquisition costs drop by 20-35%.

That hit me hard because I've seen the same pattern with dozens of startups.

So...

Here are 5 reasons why VC-backed companies are going all-in on newsletters:

1. Direct audience ownership

You own the relationship, not Meta or Google.

When Motion Creative sends an email, it lands directly in their prospect's inbox.

No middleman, no auction, no bidding against competitors.

2. Compounding returns

Each subscriber represents lifetime value.

While ad costs reset to zero every month, your email list grows over time.

Motion Creative's newsletter (Thumbstop) now drives a part of their demos.

All at near-zero marginal cost.

3. Trust-building on autopilot

Regular valuable content builds authority.

When your prospects read your insights every week, they start to see you as the expert.

By the time they book a call, they're already halfway sold.

4. Data you can actually use

You learn what your market actually cares about.

Which links do they click? What subjects get opened?

This is product development gold that ads can never provide.

5. The "warm introduction" effect

New products launch to a receptive audience.

When Rippling launched their new expense management tool, they didn't start from zero.

They had 18,000+ subscribers who already trusted them.

Here's the best part:

Starting a newsletter costs almost nothing compared to most marketing channels.

You don't need fancy tech.

You don't need a content team.

You just need to share what you already know about your industry in a way that actually helps people.

These companies are building trenches their competitors can't cross.

Because while anyone can copy your ads, no one can copy your relationship with your audience.

Have a look for yourself:

👉 Thumbstop (Motion)

👉 Spendsetters (Rippling)

👉 Independent Money (carry lab)

👉 Move the needle (Data Box)

👉 Peer signal (Keyplay)

👉 TLDR (Wealthsimple)

Start building assets,

not expenses,

—Tommy

P.S. Your face when you realize how much money you've been wasting on ads that could have gone to building or growing your own media channel instead...

In case you ever need it, here are 3 ways I can help you:

1. Click here to put your business in front of 15,000+ founders, business owners and marketers

2. Click here if you want guidance on how to grow your business with a newsletter

3. Click here if you want my team to run your B2B newsletter

See you soon,

Tommy
Founder at Newslaunch.co