Spent the last month building Fertit - basically a newsletter manager but you bring your own SMTP and skip the DevOps nightmare. All the features (subscriber management, admin dashboard, custom preferences) without the infrastructure markup.
The math that broke me:
Mailchimp: $230/month for 15k contacts
My solution: $10/month infrastructure + $10 SendGrid = unlimited
What I learned: The "enterprise" features are mostly database operations with SMTP APIs. But the 3 weeks of Go/PostgreSQL/Redis setup explains why people just pay ConvertKit $300/month.
Here's the thing: Even open-sourcing it, I realized most people don't want to deal with servers, Docker configs, and database migrations. So I built an affordable hosted service starting at $5/month. More features and security measurements, zero setup - just bring your SMTP and start sending. You get all the cost savings without any of the self-hosting headaches.
Now testing this hosted version at $5/month - middle ground between DIY pain and SaaS pricing.
Hosted version: https://www.fertit.com
Open source: https://github.com/rasadov/NewsletterManager
Anyone else tired of choosing between expensive self-hosting and expensive SaaS? Would love feedback on the approach.
1. Deliverability. Email marketing providers like MailChimp charge a premium because they have highly trustworthy send addresses and IPs that email servers can trust. The BYO SMTP aspect of your product has the potential to ruin that for customers who aren't aware of those issues. I probably wouldn't be surprised if that aspect also makes it harder for you to clamp down on fraud, abuse, and spam. If you don't control the send server then you might not know everything that's going on from front to back.
2. Someone looking to save money can already find MailChimp competitors that are cheaper without the overhead of having to also hook up a second service to send the emails. For example, 15K contacts at mailerlite is $98/month. Or I could do something email send-based like Brevo and send 40,000 emails per month at $35. If I go with Brevo I don't have to bring my own email send service.
3. The LSV of an email subscriber is so high that the end result is you're going too far downmarket. Customers would benefit more from more effective campaigns with better deliverability, more powerful business logic, more integrations to other business platforms, etc. In other words, paying more is worth the investment. The LSV of an email subscriber is often somewhere between $10-50. So if you have 15,000 active contacts you are looking at revenue from those subscribe rover their lifetime as potentially being something like $150,000-$750,000. In that frame of reference, $230/month for MailChimp is a steal.
I'm just not sure who this is for. Sure, you do say it's for indie developers, but I think that target customer has the most options to use something else.
I think the Mom test would be applicable here. I worry that you built a product just for yourself that doesn't really appeal to anyone else. The main differentiators seem to be low price and splitting up the business logic from the send service, which to me is kind of like making someone buying an ice cream buy the ice cream cone next door.