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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:

1. Create something that will make you stand out in a competitive and crowded market.
2. Focus on how you can increase your customer retention rate\\u2014perhaps it\\u2019s by adding new products that will better serve them.
3. 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