799: SaaS: How He Grew To $200k MRR, $2m Raised at $7m Cap
Olin Hyde. He\u2019s the co-founder and CEO of LeadCrunch.ai, an intelligent demand generation platform that accelerates sales with high precision analytics and content delivery. In less than 10 months since they\u2019ve launched, the company has grown to more than 90 customers and are getting 300% higher sales conversion rates.
Famous Five:
- Favorite Book? \u2013 Humans
- What CEO do you follow? \u2013 Elon Musk
- Favorite online tool? \u2014 Salesloft
- How many hours of sleep do you get?\u2014 8
- If you could let your 20-year old self, know one thing, what would it be? \u2013 Olin hoped he would have known how important linear algebra is
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Time Stamped Show Notes:
- 01:38 \u2013 Nathan introduces Olin to the show
- 02:09 \u2013 The last exit of Olin was Auto-Semantics that analyzed social media feeds
- 02:22 \u2013 It was sold to ai-one
- 02:28 \u2013 Olin spent 2 years with ai-one
- 02:38 \u2013 LeadCrunch started with healthcare
- 02:51 \u2013 LeadCrunch has beat IBM Watson
- 02:59 \u2013 LeadCrunch is using their targeting technology to help mid-market companies find their next best customers
- 03:17 \u2013 Olin shares why they\u2019re targeting SMBs
- 03:34 \u2013 Olin likes to work with people who help others make their dreams come true
- 03:43 \u2013 LeadCrunch\u2019s first product was Private Alpha with 1,070 small businesses signups
- 03:56 \u2013 LeadCrunch stays away from the enterprise because they like the idea of democratizing the power of AI to enable everyone to achieve their dreams
- 04:08 \u2013 LeadCrunch\u2019s business model is a combination of subscription and on-demand
- 04:42 \u2013 It is still early for LeadCrunch\u2019s SaaS model, so most of their revenue is from on-demand
- 04:53 \u2013 With on-demand, LeadCrunch got 130 rebooks from customers in just 90 days
- 05:17 \u2013 Average customer pay is $20K
- 06:05 \u2013 Olin won\u2019t call their revenue ARR, but on-demand
- 06:40 \u2013 LeadCrunch has a customer success function
- 06:50 \u2013 LeadCrunch was launched in August 2015
- 07:27 \u2013 Trailing 12 months revenue is around a million dollars
- 07:36 \u2013 Monthly revenue is around $200K in bookings
- 07:46 \u2013 The product was launched in September 2016
- 08:04 \u2013 LeadCrunch was initially bootstrapped and has raised about $2M in capital
- 08:36 \u2013 LeadCrunch has kept the cap of $6M
- 09:33 \u2013 LeadCrunch has around 90 lifetime customers and 55 on their current product line
- 10:50 \u2013 Olin shares the weirdest thing he did to get a customer
- 11:44 \u2013 Gross margin
- 12:03 \u2013 LeadCrunch optimizes for growth and not for margins yet
- 12:48 \u2013 Customer payback period is 2.1 months
- 13:15 \u2013 On-demand customers pay as LeadCrunch delivers
- 13:36 \u2013 LeadCrunch\u2019s CAC decreases as they get more customers
- 13:57 \u2013 Paid spent is around $6500
- 14:41 \u2013 LeadCrunch does A/B tests to discover new funnels
- 14:58 \u2013 LeadCrunch is influenced by Traction of Justin Mires
- 15:18 \u2013 LeadCrunch is conservative and capital efficient
- 15:35 \u2013 Team size is 15
- 16:04 \u2013 \u201cWe could get cash flow positive in 60 days if we want to\u201d
- 17:40 \u2013 The Famous Five
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3 Key Points:
- Work with people that you believe in the most.
- Revenue models vary depending on which model works best for the company.
- Cash flow positive is great, but you shouldn\u2019t have to sacrifice your people to reach it.
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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