SaaS Interviews with CEOs, Startups, Founders 727: Why People Pay Him $10m+/year or $4 on Every $10 in Ads Managed
Jul 21, 2017
13:19
Andrew Fischer. He's a seasoned entrepreneur with extensive business development and sales experience in digital media and enterprise software or SaaS. He's recently launched Choozle, a simple and digital marketing platform in the fall of 2012. Based in Denver, Colorado, Choozle is the world's fastest growing digital advertising platform.
Famous Five:
- Favorite Book? – The Hard Thing About Hard Things
- What CEO do you follow? – Jeff Green
- Favorite online tool? — Evernote
- How many hours of sleep do you get?— 7
- If you could let your 20-year old self, know one thing, what would it be? – "I will probably reinforce the message of focus"
Time Stamped Show Notes:
- 01:04 – Nathan introduces Andrew to the show
- 01:35 – Choozle is the fastest growing digital advertising platform because of Inc Magazine's annual ranking
- 01:45 – It will be Choozle's first year in Inc
- 02:02 – Choozle became profitable last year
- 02:16 – Choozle was launched in 2012
- 02:25 – Revenue is between $5-10M
- 02:29 – Team size is around 32
- 02:36 – Choozle raised a small round
- 02:54 – Choozle is a SaaS that installs on an agency level
- 03:07 – The lowest level of subscription is $99 for an agency with one client and up to $2K a month for unlimited accounts
- 03:21 – Average pay per customer is $300 a month
- 03:25 – Choozle has 250 clients
- 03:30 – Choozle offers hybrid-managed services
- 03:51 – Choozle is also an ad-tech company, so they take a percentage of media
- 04:03 – Media shares start at 40%
- 04:17 – Choozle is a premium player in the space
- 04:53 – 2016 revenue
- 05:00 – 2017 target revenue
- 05:34 – Majority of Choozle's revenue are coming from Q3 and Q4
- 05:51 – Choozle has raised $8.5M to date
- 06:02 – Choozle's grace capital is from non-traditional services like a family office
- 06:29 – The goal when they had a raise was to build a sustainable company
- 06:51 – The raise was an equity-based investment
- 07:02 – Average churn is 5-7% per month
- 08:03 – Andrew is currently happy with their churn rate
- 08:32 – LTV to be
- 08:52 – CAC
- 09:22 – Average payback period
- 09:34 – Choozle has 10 full-time salespeople, total team size is around 30
- 11:25 – The Famous Five
3 Key Points:
- The digital advertising space is quite saturated and the churn rate of a SaaS businesses is quite high.
- Aim for your company to not just be profitable, but sustainable as well.
- Don't limit who you allow as investors in your company.
Resources Mentioned:
- The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
- Klipfolio – Track your business performance across all departments for FREE
- Hotjar – Nathan uses Hotjar to track what you're doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
- Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
- Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
- Audible– Nathan uses Audible when he's driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
Show Notes provided by Mallard Creatives