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Blake Smith. He\\u2019s the CEO and co-founder of Cladwell, a clothing company that doesn\\u2019t sell clothing. His goal is to fight for sustainability and human labor practices by enabling people to buy fewer, but better clothes. Blake was at The Top a year ago where he articulated that they passed 11,500 customers with each customer paying $6/month; so, they were doing about $70K MRR a year ago. They were at about 5% churn, monthly spending and at $17 to acquire new customers. They\\u2019re based in Cincinnati and they\\u2019ve raised about $1.8M and $100K in revenue.

Famous Five:

• Favorite Book? \\u2013 Wooden on Leadership
• What CEO do you follow? \\u2013 Ben Horowitz
• Favorite online tool? \\u2014 Calendly
• How many hours of sleep do you get?\\u2014 2
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 Blake would tell himself the importance of following your curiosity as opposed to having a strategy or a plan

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Time Stamped Show Notes:

• 01:04 \\u2013 Nathan introduces Blake to the show
• 01:59 \\u2013 Cladwell\\u2019s current customers is around 17K in number
• 02:06 \\u2013 Cladwell is an everyday styling app
• 02:50 \\u2013 When you go to the Cladwell\\u2019s website, you\\u2019ll click \\u201cbuy\\u201d
• 02:58 \\u2013 Cladwell is also downloadable in the App store
• 03:12 \\u2013 Cladwell is doing pricing tests
  • 03:45 \\u2013 Cladwell looks at other SaaS products that customers are paying for
  • 04:02 \\u2013 Cladwell also looks at other workout apps
  • 04:21 \\u2013 Cladwell is looking into charging $9
  • 04:41 \\u2013 \\u201cWe\\u2019re going forward unless proven otherwise\\u201d
• 04:47 \\u2013 Pricing tests never end, especially with SaaS
• 05:31 \\u2013 Last month total revenue is around $60K
• 05:41 \\u2013 Cladwell used to bill quarterly
• 05:49 \\u2013 Cladwell is around 900K ARR
• 06:17 \\u2013 80% of Cladwell\\u2019s customers are using the web app on their mobile devices
• 06:42 \\u2013 Last year\\u2019s revenue in the same month
• 07:19 \\u2013 Marketing spend last year
• 07:32 \\u2013 Cladwell has recently raised a $1.2M round
• 08:07 \\u2013 2016 total sales is $760K
• 09:35 \\u2013 Blake explains how the app works on a daily basis
  • 09:40 \\u2013 Every morning, the Cladwell app gives a recommendation of what to wear
  • 09:53 \\u2013 Cladwell recommends 3 outfits basing on what\\u2019s in your closet and the daily weather
  • 10:18 \\u2013 Cladwell will also know what you wore for 3 days
• 10:55 \\u2013 The more that you use the app, the better the experience is
• 11:35 \\u2013 Majority of Cladwell\\u2019s users are working millennial moms
• 12:18 \\u2013 People have tried Cladwell\\u2019s ideas before and onboarding was the biggest issue
• 12:33 \\u2013 Cladwell did something similar to Google venture\\u2019s sprint design process
• 12:56 \\u2013 Cladwell provides a feed of all the potential items in a person\\u2019s wardrobe
  • 13:34 \\u2013 A female customer will have an average of 60-70 pieces of clothing in her wardrobe
• 13:58 \\u2013 The onboarding process is now easier for customers because of the feed
• 15:30 \\u2013 Team size is around 15
• 16:02 \\u2013 Cladwell\\u2019s currently spending is still TBD
• 16:18 \\u2013 Churn rate is a bit high
• 16:50 \\u2013 From the 17K customers, around 5K has downloaded the app
• 18:00 \\u2013 The Famous Five

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3 Key Points:

1. Onboarding is one of the biggest challenges for a styling company, customers lose interest using the product.
2. More and more millennial mothers are finding it hard to manage their time; having an app that will save them time daily is heaven sent.
3. Follow your curiosity\\u2014it can lead you to something GREAT.

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Resources Mentioned:

• The Top Inbox \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Klipfolio \\u2013 Track your business performance across all departments for FREE
• Hotjar \\u2013 Nathan uses Hotjar to track what you\\u2019re 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 \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books

Show Notes provided by Mallard Creatives