Published: Oct. 8, 2017, 9 a.m.
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Daniel Chait. He\\u2019s the CEO and co-founder of Greenhouse, which designs tools that help create and navigate a new world of work. Daniel has been a technology entrepreneur in New York for nearly 20 years. Before Greenhouse, he co-founded Lab49, a global firm providing technology consulting solutions for the world\\u2019s leading investment banks. He\\u2019s a proud graduate of the computer engineering program at the University of Michigan.
Famous Five:
- Favorite Book? \\u2013 Nudge
- What CEO do you follow? \\u2013 Kim Scott
- Favorite online tool? \\u2014 Trello
- How many hours of sleep do you get?\\u2014 7.5
- If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cThe dotcom crash\\u201d
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Time Stamped Show Notes:
- 01:35 \\u2013 Nathan introduces Daniel to the show
- 02:10 \\u2013 Greenhouse sells recruiting software that corporations use to design and execute their hiring process
- 02:40 \\u2013 Greenhouse is a SaaS company
- 02:50 \\u2013 Average customer pay per year varies
- 03:05 \\u2013 The pricing model depends on the size of the company
- 03:40 \\u2013 Greenhouse tends to price higher than their competitors\\u2019 because they offer a premium software solution
- 04:05 \\u2013 Greenhouse is in the recruiting software space which is currently crowded
- 04:15 \\u2013 Daniel shares some of their competitors depending on the categories
- 05:10 \\u2013 The competition is extremely fragmented
- 05:33 \\u2013 Greenhouse falls into all the categories, from the smaller ones to enterprise
- 06:05 \\u2013 Greenhouse offers three tiers
- 06:24 \\u2013 Greenhouse was launched in 2012
- 06:32 \\u2013 First year revenue was around $50
- 07:33 \\u2013 Post product revenue is around $1M
- 08:25 \\u2013 Greenhouse currently has 2000 customers
- 09:03 \\u2013 Team size is 195, based in San Francisco and New York
- 09:30 \\u2013 Greenhouse has raised $16M from their series C round
- 09:53 \\u2013 Daniel enjoyed doing their fund raising and he believes in their investors
- 10:13 \\u2013 Every round is different
- 10:40 \\u2013 This was the first time that Daniel raised outside the investment
- 11:19 \\u2013 Greenhouse has a world-class retention rate
- 11:36 \\u2013 97% of their customers have renewed
- 11:55 \\u2013 Most of the team is in inside sales
- 12:36 \\u2013 Daniel shares where their expansion comes from
- 13:11 \\u2013 Greenhouse\\u2019s newest product is Greenhouse CRM which is still in beta
- 14:10 \\u2013 The inside sales team job is heat mapping the products used by a customer
- 14:41 \\u2013 The expansion is through additional growth
- 15:15 \\u2013 LTV-CAC ratio
- 15:48 \\u2013 \\u201cWe have a healthy ratio\\u201d
- 16:04 \\u2013 Payback period
- 17:00 \\u2013 The weirdest thing Daniel did to acquire new customers
- 17:43 \\u2013 They went from market research to marketing
- 17:57 \\u2013 ARR
- 18:07 \\u2013 Daniel on hitting the $50M ARR mark by end of 2017
- 19:40 \\u2013 The Famous Five
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3 Key Points:
- Create something that will make you stand out in a competitive and crowded market.
- Focus on how you can increase your customer retention rate\\u2014perhaps it\\u2019s by adding new products that will better serve them.
- Raising a capital round can help you gain new customers.
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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
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