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Alex Yakubovich. He\\u2019s the co-founder and CEO of Scout RFP. Prior to Scout, he was a co-founder of another startup which was acquired by LivingSocial in 2012. At that company, he led the operations team and helped the company become the largest online ordering providers in the country. He attended Case Western Reserve University where he studied mechanical engineering.

Famous Five:

• Favorite Book? \\u2013 Shoe Dog
• What CEO do you follow? \\u2013 Marc Benioff \\xa0
• Favorite online tool? \\u2014 Salesforce
• How many hours of sleep do you get?\\u2014 7
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 Take big risks

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Time Stamped Show Notes:

• 02:25 \\u2013 Nathan introduces Alex to the show
• 02:58 \\u2013 Scout RFP helps companies make online purchases by finding suppliers and the best deals
• 03:14 \\u2013 One of their newest customer\\u2019s is Beam Suntory who makes Jim Beam bourbon
  • 03:56 \\u2013 They use Scout RFP to source for the best deals on raw materials that they use to make their liquor
• 04:15 \\u2013 Scout RFP is a SaaS model
• 04:20 \\u2013 Scout RFP charges per user basis
  • 04:47 \\u2013 They charge only the buyers who are making the purchase and not the suppliers
• 05:00 \\u2013 Scout RFP also has different tools that they offer depending on the plans
• 05:34 \\u2013 Average per seat is $5K annually
  • 05:53 \\u2013 All contracts are annual contract
• 05:59 \\u2013 Scout RFP has raised capital: $27.5M in total
• 06:27 \\u2013 Alex\\u2019s last company just raised $500K and it had a great exit
• 07:00 \\u2013 Alex has thought about what it\\u2019s like to have big companies involved in your company
• 07:30 \\u2013 The capital allowed them to not skim and invest on growth upfront
• 07:49 \\u2013 Current team size is 50
  • 07:59 \\u2013 Half is the engineering and product side and half is for the sales side
• 08:29 \\u2013 The exit price of the first company was in the tens of millions
• 09:37 \\u2013 Alex has co-founders who were with him in the first company
• 10:43 \\u2013 There are over 100 companies that use the platform
• 11:10 \\u2013 The number of seats per company depends on the company
• 11:54 \\u2013 Scout RFP has overall users and paid users
  • 12:12 \\u2013 Paid users is more than 3K
• 13:05 \\u2013 Scout RFP is part of Silicon Valley Sourcing Leaders Group
  • 13:31 \\u2013 The group is about networking and sharing information and knowledge
  • 13:49 \\u2013 There are now sourcing leaders programs in New York
  • 14:00 \\u2013 The group helped Scout RFP to acquire new customers
  • 14:30 \\u2013 The organization hosts their companies
• 15:18 \\u2013 Gross customer churn
• 15:31 \\u2013 Logo churn is not that high
• 16:00 \\u2013 Scout RFP has 17% net negative churn
• 16:58 \\u2013 Scout RFP has a customer success team, a sales team, ADPR team and management team
• 17:38 \\u2013 As a business grows with Scout RFP, the LTV grows as well
  • 18:22 \\u2013 The average deal size per business is quite consistent, about 10
• 19:09 \\u2013 CAC to LTV ratio is 3
• 19:25 \\u2013 Payback period is around 15 months
• 20:17 \\u2013 Paid acquisition costs are around $40K a month
  • 20:49 \\u2013 They do LinkedIn ads, some Facebook and Google, and a lot of tradeshows
• 21:23 \\u2013 Gross margin is 85-90%
• 21:44 \\u2013 Target ARR this 2017
  • 22:14 \\u2013 Scout RFP is currently over $1.2M in MRR
• 23:54 \\u2013 The Famous Five

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3 Key Points:

1. An acquisition is an opportunity to build a bigger and better business.
2. Being in a group with your target market is a big opportunity for you to acquire new leads.
3. Let your big questions guide you in growing your business.

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Resources Mentioned:

• Simplero \\u2013 The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
• 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
• GetLatka - Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
• 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