In the competitive world of business media, Morning Brew has transformed from a college-side project into a $75 million powerhouse, amassing nearly 3 million subscribers. Created by two college students, this brand has redefined how millennials and Gen Z consume business news. Here’s how Alex Lieberman and Austin Rief took Morning Brew from an idea in a dorm room to a thriving business and what future founders can learn from the journey of Morning Brew.

The Morning Brew Origin Story

In 2014, Alex Lieberman, a senior at the University of Michigan preparing for a career on Wall Street, found traditional business news sources like the Wall Street Journal too dry and time-consuming. Spotting an opportunity, he began writing a daily business news digest, “Market Corner,” which he emailed to friends and classmates as a PDF attachment.

Enter Austin Rief, a sophomore at the time, who saw potential in Lieberman’s project and reached out to collaborate. They quickly refined the concept, and in March 2015, Morning Brew was born. The journey of Morning Brew had officially begun, fueled by a mission to make business news engaging, digestible, and accessible to a younger audience.

Identifying the Problem and Crafting a Solution

Lieberman and Rief identified a significant gap in the business news landscape: traditional news sources were lengthy, unengaging, and difficult for young professionals to digest. As finance majors, they wanted news that was concise, informative, and even entertaining—a reflection of their interests and needs. Morning Brew set out to meet this need by delivering quick, lively, and often humorous summaries of the top business stories of the day.

Their solution was to build a media brand that would make business news approachable and fun. This journey of Morning Brew wasn’t just about creating another news outlet; it was about redefining the business news landscape for a generation that craved convenience and engagement.

The Early Years: Hustle and Growth

While the idea was powerful, transforming it into a business required grit and hustle. Both Lieberman and Rief juggled their studies and eventually full-time jobs while growing the newsletter. Lieberman spent a year at Morgan Stanley before leaving his role in 2016 to focus on Morning Brew full-time. Rief joined him after graduating in 2017, encouraged by a fortune cookie message to “take the leap.”

Their early growth strategy was both simple and effective. Lieberman and Rief pitched the newsletter directly to business classes and clubs across campus, learning that getting students to sign up online yielded no results. Instead, they switched to passing around physical sign-up sheets and manually entering email addresses into their database. This hands-on approach, though labor-intensive, was essential in building an initial subscriber base.

By the end of 2017, their referral program was in full swing, with over 300,000 subscribers, each with at least one referral. This initial phase of the journey of Morning Brew laid a solid foundation and proved that their hard work and adaptability would be critical to future success.

Building Morning Brew’s Audience

Morning Brew’s growth was driven by a mix of innovative strategies and a highly effective referral program. In the early days, the founders relied on word-of-mouth marketing, leveraging their university network to spread the word. They pitched Morning Brew to professors and collected email addresses from students before lectures.

However, it was the referral program that truly accelerated growth. By incentivizing subscribers to refer friends and family, Morning Brew reached hundreds of thousands of new readers. Subscribers earned rewards for referrals, ranging from exclusive content to branded merchandise and even a trip to Morning Brew’s headquarters. This tactic not only grew their audience but also fostered a sense of community and loyalty among readers.

As Morning Brew’s audience expanded, so did its reputation as a fresh and relevant media brand. The journey of Morning Brew from dorm room to popular media platform made it an attractive partner for major media companies, culminating in Business Insider’s acquisition of a majority stake in 2020.

Scaling Up: From Thousands to Millions

With subscriber numbers climbing, Morning Brew began scaling its team and operations. In late 2017, they raised $750,000 in seed funding from friends and family, allowing them to hire additional staff. By November 2018, they had 700,000 subscribers, adding roughly 120,000 new subscribers per month.

Understanding their audience and leveraging network effects were key to this phase of the journey of Morning Brew. The founders refined their referral program, turning engaged readers into brand ambassadors. Subscribers received incentives, like exclusive Morning Brew content and merchandise, creating a sense of community and FOMO around the brand.

To reach new audiences, Morning Brew also partnered with other newsletters for cross-promotions and bought ad space on similar platforms. When those opportunities dwindled, they took an unconventional approach, acting as sales consultants for other newsletters to help them monetize, in exchange for advertising space for Morning Brew.

Content Strategy: Making Business News Fun

At the heart of Morning Brew’s success is its content strategy. Recognizing that young professionals wanted to stay informed without spending hours reading traditional business news, they designed a short, entertaining newsletter that covered essential stories in just five minutes.

Each edition of Morning Brew is a balance of informative and humorous content. For example, the newsletter might use a playful GIF to illustrate a market trend or add a quirky comment on the latest Silicon Valley drama. This approach worked exceptionally well with readers, achieving a 45% unique open rate, which is well above industry averages.

As their audience grew, Morning Brew diversified by launching niche newsletters like Emerging Tech Brew, Retail Brew, and Marketing Brew. These specialized publications allowed them to go deeper with existing subscribers while attracting new readers with focused interests. This expansion phase in the journey of Morning Brew not only increased reach but strengthened the brand’s reputation for delivering relevant and engaging content.

Monetization: Turning Readers into Revenue

Unlike many digital media companies that struggle to monetize, Morning Brew found success primarily through email ads. By 2019, the company was generating $13 million in ad revenue, up from $3 million the previous year. Their success was driven by:

• High Engagement: With 50% open rates and 15% click-through rates, Morning Brew could offer advertisers a highly engaged audience.
• Native Ads: Advertisements were designed to match the style of Morning Brew’s content, enhancing the reader’s experience without disrupting it.
• Targeted Audience: Morning Brew’s subscribers are young professionals, a desirable demographic for advertisers aiming to reach future leaders and decision-makers.

Over time, Morning Brew expanded its revenue streams beyond email ads, branching into podcasts, events, and even a learning platform. This diversified model further solidified the brand’s financial stability and marked another phase in the journey of Morning Brew.

Building the Team and Culture

Maintaining a strong company culture was essential as the company scaled from a two-person operation to a team of over 30. Lieberman and Rief prioritized hiring individuals who shared their vision and work ethic. Recognizing the importance of onboarding and employee development, they invested in an HR function early on to create a positive work environment.

This emphasis on culture paid off, enabling Morning Brew to grow quickly while staying true to its core values. The journey of Morning Brew was as much about building a cohesive team as it was about increasing subscriber numbers.

The $75 Million Exit: A New Chapter

In October 2020, Morning Brew reached a major milestone by selling a majority stake to Insider Inc., a subsidiary of Axel Springer, for around $75 million. This acquisition allowed Morning Brew to retain its independence while gaining resources and expertise to fuel further growth.

The sale was a significant achievement, marking a new chapter in the journey of Morning Brew. In just five years, Lieberman and Rief had built a media brand that challenged the norms of traditional news and created real value in a crowded digital landscape.

Lessons for Future Founders

The journey of Morning Brew offers a roadmap for aspiring entrepreneurs. Key lessons include:

• Identify a Clear Problem: Start with a distinct problem and focus on solving it well.
• Do Things That Don’t Scale: In the early days, doing things manually can help build strong foundations.
• Build a Community: Encourage engagement to foster a loyal audience.
• Know Your Audience: Tailor content and strategies to the needs and interests of your target demographic.
• Diversify Thoughtfully: Expand revenue streams without straying from core values.
• Prioritize Culture: A strong company culture can sustain growth and adaptability.

These lessons, learned through the journey of Morning Brew, demonstrate that a clear mission, hard work, and adaptability are key to success.

What’s Next for Morning Brew?

Despite the sale, the journey of Morning Brew is far from over. The brand continues to innovate and expand, exploring new formats and topics to reach an ever-growing audience. Backed by Insider Inc., Morning Brew is well-positioned to continue its mission of making business news fun and accessible for young professionals.

As traditional media struggles to capture the attention of younger generations, Morning Brew’s success provides a model for the future of news. Their approach reminds us that there’s always room for innovation in consuming information. By staying true to their mission, they’ve not only built a thriving company but changed the way a generation engages with business news.The journey of Morning Brew is proof that with creativity, dedication, and a deep understanding of your audience, you can redefine any industry.