The next B2B moat: owning your distribution through newsletters
In this issue:
Editor’s corner – “In B2B, distribution is the final remaining moat” (calling the rise of newsletter-based ABM)
Referrals over funnels: the B2B growth strategy that generates high-value clients with $0 CAC
Why most businesses are failing to win trust in an AI-disrupted world… and what to do about it
1. “In B2B, distribution is the final remaining moat” (calling the rise of newsletter-based ABM)
The playbook for B2B growth is broken. Cold calling success rates have plummeted 52% in just one year while cold email open rates dropped 23% year-over-year. Meanwhile, 95% of cold emails now fail to generate any response as decision-makers receive 10+ cold pitches weekly. Traditional outbound is dying from saturation, and the trendy alternative – B2B podcasting – creates a different set of problems that most founders don't discover until they're six months in.
The most effective growth channel for B2B companies today may actually be the industry newsletter.
Podcasts are great, but beware of a few traps
B2B podcasts promise thought leadership and audience building, but beware of the platform dependency. YouTube now controls 39% of podcast listening, Spotify 21%, and Apple 8% – meaning 68% of your audience lives on platforms where algorithms determine your reach.
You don't own subscriber data, can't determine true listener counts, and have zero control when platforms change their rules. One podcaster with 35,000+ followers saw their reach collapse to just 500 people after algorithm changes.
Guest participation also creates unexpected friction. Podcasters now face pressure to add video, requiring guests to worry about cameras, lighting, home backgrounds, and performing brilliantly off-the-cuff. There's no easy edit button when someone misspeaks, and the permanent audio-video record makes executives uncomfortable going "on record" without review rights.
How newsletters can deliver scientific growth under your control
B2B newsletters specifically can achieve 40% open rates and reach 10-15x more people than social media posts. When you have 10,000 subscribers, roughly 4,000 people see your message. That same 10,000 followers on Instagram? Only 400 people (4% organic reach). On Facebook? Just 260 people (2.6% reach).
More importantly, you own the relationship. Your email list isn't subject to algorithm changes that can destroy your reach overnight. Facebook's 2018 algorithm update literally shut down digital publisher LittleThings, while newsletter businesses like Morning Brew and The Hustle built multi-million dollar companies on owned audiences.
The interview format works better for a newsletter setting too. Instead of asking executives to perform on camera, you conduct interviews and turn them into newsletter articles that they can review and edit, ensuring they sound brilliant.
Companies that built revenue engines from newsletters
Punctuation generates $1.7M annually from 13,000 consultancy subscribers
David C. Baker's Punctuation, a two-person consulting firm specializing in creative agencies, generates $1.7 million in annual revenue from just 13,000 newsletter subscribers ($130 revenue per subscriber annually). His weekly newsletter, published since 1996 (28+ years), exemplifies the power of consistency, quality, and patience in professional services marketing. Baker considers his subscriber list his most valuable business asset, stating: "If there was a fire, the first thing I would metaphorically grab would be my subscriber list."
Content format and philosophy: Baker delivers full 1,200-word original articles directly in email covering positioning, business strategy, and agency management. His newsletter contains minimal promotion: only a footer mention stating "We position, benchmark, review, value, and buy/sell/merge in the marketing, creative, and digital space. Hit reply if you'd like to connect."
Quality over quantity metrics: Baker doesn't obsess over open rates, especially post-Apple privacy changes, but focuses on unsubscribe rates (aims for ≤0.25% per mailing) and spam complaints (averages 1 complaint per 78,000 emails sent). His list is small by internet standards but highly engaged – he regularly prunes inactive subscribers, prioritizing quality over vanity metrics. The $130 annual revenue per subscriber dramatically exceeds typical B2B newsletter benchmarks of $5-15.
FullFunnel.io converts 22% of newsletter-based interview guests to opportunities
FullFunnel.io, a B2B marketing consultancy, developed a systematic approach to converting newsletter guests and prospects into clients, achieving 76% response rates on outreach and 46% interview acceptance rates, with 2 paying clients from 9 interviews plus 6 additional qualified opportunities – a 22% guest-to-opportunity conversion rate. Over three months, they generated $375,000 in pipeline from newsletter-based ABM targeting just 21 carefully selected accounts.
Strategic guest selection and outreach: FullFunnel.io targets CEOs and CROs from companies matching their ICP: B2B scale-ups with $5-10M ARR and >$50K ACV. They use newsletter engagement as their primary filter for interview invitations, prioritizing companies where employees are already subscribed. From 21 outreach attempts, they received 16 responses (76%), and 9 agreed to interviews (56% of responses).
Interview execution framework: During interviews, they focus on GTM challenges, root causes, and marketing/sales alignment – providing a platform for guests to share expertise without pitching services. However, they strategically validate whether their ABM consulting services would be valuable and request introductions to senior marketing/sales leaders. They mention relevant case studies naturally during conversation, planting seeds without overtly selling.
Post-interview conversion process: After interviews, they analyze content to understand priorities and challenges, then create 100% personalized proposals. They combine this with direct mail including the printed proposal and branded gifts. The newsletter maintains relationship continuity between touchpoints, keeping the consultancy top-of-mind as buying cycles progress.
Best practices: Operational excellence for B2B newsletters
Revenue and pipeline metrics: The ultimate measures are business impact. Track revenue per email (direct attribution), subscriber lifetime value, and pipeline velocity (how newsletter affects sales speed). Email-sourced deals close at 37% better rates than average inbound leads, have only 1.2% lower ACV, and close 7% faster.
ROI examples: Xerox generated $1.3 billion in pipeline from ABM campaigns targeting 30 accounts with newsletter at the core, adding 20,000 new contacts and scheduling 1,000+ appointments. OpenText created 31 opportunities worth $1.8 million in pipeline (average $58,064 per opportunity) from personalized customer onboarding including newsletter nurturing.
Industry-specific benchmarks: Niche B2B newsletters (10,000 subscribers) typically generate $150K-$250K lifetime value over 3-5 years through ads and sponsorships. Enterprise software newsletters see lead values of $500-2,000 per qualified lead, with 6-13% of engaged subscribers converting to customers worth $50K-150K average. Marketing technology newsletters like Stacked Marketer achieved $685K in 2022 revenue from 16,000+ subscribers. Financial/investment newsletters command $50-200+ revenue per subscriber annually for premium content.
The bottom line: The newsletter as “relationship infrastructure”
B2B newsletters represent far more than marketing tactics – they're relationship infrastructure generating compounding returns. The case studies reveal companies generating $4M+ annually (Lenny Rachitsky), $25M+ in B2B revenue (Morning Brew), $52M in closed contracts (Optum), and $1.3B in pipeline (Xerox) through systematic newsletter strategies.
2. Referrals over funnels: the B2B growth strategy that generates high-value clients with $0 CAC
AI + Data Mastery with Jason Renno, Ep. 54: Referrals over Funnels: How We Built a 7-Figure B2B Company Without Ads w/ Mike Abramowitz (Oct. 20, 2025)
TLDR
Built business to 7 figures and 290 clients entirely through referrals – no paid ads, no cold email, no traditional marketing
The strategy: go deep on relationships, overdeliver massively, and make every client feel like they're your only client
Most B2B founders obsess over customer acquisition cost. They optimize funnels, split test landing pages, tweak ad copy, and celebrate when CAC drops from $5,000 to $4,800. Meanwhile, Mike Abramowitz grew his business Better Than Rich from concept to seven figures in three years with 290 clients and zero dollars spent on customer acquisition.
Mike helps blue-collar business owners (plumbers, HVAC companies, landscapers) build businesses that don't depend on the owner working 80-hour weeks. He launched in 2022 after calling his business coach and asking, "Do you think we could teach other business owners how to do this?"
The $140K client that proves the model
Mike’s highest-paying client ever – a $140K annual account – reached out because of a chain of referrals.
It started with a client Mike worked with years ago. That client knew someone who knew someone else, who mentioned Mike’s name in passing. Months later, when a business owner in California needed help, Mike’s name surfaced in conversation. That business owner reached out, they had a conversation, and Mike landed a $140K account.
No pitch deck. No proposal. No negotiation. Just a conversation where Mike demonstrated he understood her problems better than anyone else she'd talked to.
This is what happens when you build a referral engine instead of a funnel. You don't compete on price or features. You compete on trust, which is the most valuable currency in B2B.
How to build social capital intentionally
Mike doesn't just hope for referrals. He engineers them through a system he calls social capital – investing in relationships with no expectation of immediate return.
The foundation is simple: go deep instead of wide. Most founders network with hundreds of people, collecting business cards and LinkedIn connections like trophies. Instead,Mike identifies the 10-20 people who are best positioned to refer him clients (other consultants, industry leaders, former clients) and invests in those relationships intensely.
What does this “relationship investment” look like? It means checking in regularly with no agenda. It means sending thoughtful notes when you see something that reminds you of them. It means introducing them to people who can help them, even if it doesn't benefit you. It means celebrating their wins and supporting them during losses.
Over time, those people become your champions. They don't just refer clients to you – they actively sell you to their networks because they want you to succeed.
Why CAC is the wrong metric for most B2B service companies
The SaaS world is obsessed with customer acquisition cost because in SaaS, you need thousands or millions of users to build a valuable company. But most B2B service businesses don't need millions of users. They need dozens or hundreds of high-value clients.
For those businesses, optimizing CAC is the wrong game. Optimizing customer lifetime value and referral rate is the right game.
Mike’s business doesn't have the best website. He doesn't have a content marketing engine or a paid ads team. But he has a 100% referral rate, meaning every client refers at least one other client. That's a business that compounds faster than any funnel ever could.
The hard part is having the discipline to invest in relationships with no immediate payoff, to overdeliver when you're tired, and to say no to opportunities that don't align with your referral strategy.
How to implement this in your business
Start by identifying the 10-20 people who are best positioned to refer you clients. These might be former clients, industry peers, consultants who serve adjacent markets, or community leaders in your niche.
Reach out with a simple message: "I'm being more intentional about the relationships I invest in. I'd love to find ways to support you, introduce you to people who can help you, or collaborate. No agenda, just seeing how I can be helpful."
Then follow through. Introduce them to people. Send them leads. Celebrate their wins publicly. Show up when they need help. Do this for six months with zero expectation of anything in return.
After six months, you'll notice something: people start referring you without being asked. They'll mention your name in conversations. They'll introduce you to prospects. They'll become your unpaid sales team.
3. Why most businesses are failing to win trust in an AI-disrupted world… and what to do about it
xGrowth, Episode: Become the Most Known and Trusted Brand in Your Market With Marcus Sheridan (Oct. 22, 2025)
TLDR
Over 60% of Google searches now don't result in clicks as AI answers replace blue links – traditional SEO is dying
Marcus Sheridan's "Endless Customers" system: answer every question buyers ask with radical transparency, even the uncomfortable ones
Businesses that teach and show the truth become trusted brands that AI will recommend, while competitors get commoditized
The mega-trend that's destroying traditional marketing
The Wall Street Journal recently reported that many websites are hemorrhaging traffic. Over 60% of all Google searches now don't end with someone clicking a blue link. Instead, people get their answer directly from Google's AI-powered results or from ChatGPT, Claude, and other AI tools.
For 20 years, the B2B playbook was simple: get recommended by humans (referrals) and get recommended by search engines (SEO and paid ads). Companies invested millions in SEO to rank on page one of Google for their target keywords. They bought ads to show up when buyers searched for solutions.
That playbook is breaking. When someone asks ChatGPT or Google AI "What's the best CRM for small businesses?" they don't get a list of links. They get an answer – a specific recommendation with reasoning. If your company isn't the answer, you don't exist in that conversation.
The question every B2B founder should be asking is: how do I become the answer that AI recommends?
The radical transparency framework
Marcus has been teaching this for over a decade, long before AI made it critical. The framework is simple: answer every question your buyers ask, including the ones that make you uncomfortable.
Most companies hide their prices. Marcus says publish them. Most companies avoid talking about their weaknesses. Marcus says be the first to address them. Most companies won't compare themselves to competitors. Marcus says create detailed comparison pages that honestly evaluate the pros and cons of your product versus the alternatives.
This feels risky. Won't customers use your honesty against you? Won't competitors steal your pricing? Won't you scare away buyers by admitting your weaknesses?
The opposite happens. When you're the only company willing to be transparent, you become the trusted source. Buyers assume every other company is hiding something (because they are). But you're not. That makes you trustworthy.
And here's the critical insight for the AI era: AI tools train on the content they find on the internet. If you've written the most comprehensive, honest, transparent content on your topic, AI tools will learn from your content and recommend you when asked.
The three types of content that build trust
Marcus identifies three categories of content every B2B company must create:
Pricing and cost content. Buyers want to know what things cost. If you won't tell them, they'll find your competitors who will. Create content that explains not just your pricing, but how pricing works in your industry, what factors drive costs up or down, and how buyers can get the best value.
Problems and weaknesses content. Every product has limitations. Create content that honestly explains what your product is bad at, who it's not right for, and when buyers should choose a competitor instead. This sounds insane, but it builds massive trust. Buyers know you're not going to sell them something that doesn't fit their needs.
Comparison content. Buyers are going to compare you to competitors whether you like it or not. Instead of letting them do it on Reddit or through anonymous reviews, create your own comparison pages that honestly evaluate your product against alternatives. Show where you're better, where competitors are better, and help buyers make informed decisions.
When you create all three types of content, you become the authoritative source in your market. You're not just another vendor – you're the educator who helps buyers navigate complex decisions.
Why this makes you AI-proof
Here's where this connects to AI: when someone asks ChatGPT "What's the best marketing automation tool for small businesses?" the AI looks for high-quality, comprehensive content to base its answer on.
If your competitor has a basic landing page that says "We're the best!" and you have detailed articles explaining:
How marketing automation pricing works
What features matter most for small businesses
When buyers should choose your product vs. competitors
Common mistakes buyers make when evaluating tools
Which company will AI recommend? The one that taught the AI what matters.
In the AI era, the companies that teach and show the truth become the default recommendations. The companies that hide behind marketing fluff get commoditized and ignored.
Disclaimer
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