Published: Oct. 31, 2017, 9 a.m.
Christopher Day. He\u2019s been a successful entrepreneur, having sold two companies to a Fortune 100 company before turning 40. He\u2019s had businesses from residential painting to investment banking doing cross-border M&A transactions. Along the way, he has found time to mentor other entrepreneurs and participates in helping solve legislative issues to foster entrepreneurial growth in the State of Indiana. He\u2019s now building a platform with DemandJump that is looking to solve prescriptive analytics and qualified traffic. The DemandJump team has discovered marketers only have 20% visibility of their actual ecosystem.
Famous Five:
- Favorite Book? \u2013 Good to Great
- What CEO do you follow? \u2013 Jack Welch
- Favorite online tool? \u2014 One Pager
- How many hours of sleep do you get?\u2014 4
- If you could let your 20-year old self, know one thing, what would it be? \u2013 \u201cThe power of relationships\u201d
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Time Stamped Show Notes:
- 01:48 \u2013 Nathan introduces Christopher to the show
- 02:36 \u2013 DemandJump sells their platform on a subscription basis
- 02:41 \u2013 They have annual subscriptions and professional services
- 03:10 \u2013 82% of the revenue is from SaaS, 1% is from a one-time payment and the rest is for the other model
- 03:48 \u2013 DemandJump allows marketers to have 100% visibility of their competitive ecosystem, which is the first time this has been made possible in history
- 04:57 \u2013 They show marketers where to focus to capture traffic from their competitors
- 05:15 \u2013 Average annual contract value is $45K with beta customers
- 05:30 \u2013 Average annual contract value now is $100K -$250K
- 05:43 \u2013 DemandJump has started to work with mid-market companies
- 06:00 \u2013 Self-service for mid-market will be from $200 to hundred million
- 06:27 \u2013 DemandJump currently has 22 customers
- 06:50 \u2013 DemandJump is getting close to their million dollar revenue mark
- 07:11 \u2013 DemandJump was launched in 2015
- 07:36 \u2013 The traffic cloud was built in October 2016
- 08:05 \u2013 2016 revenue was $165K
- 08:20 \u2013 MRR by December 2016 was $10K
- 08:30 \u2013 2017 goal is to hit $1.5 in ARR
- 08:54 \u2013 DemandJump raised $4M with 18 Angel investors on their board
- 10:08 \u2013 DemandJump is looking to raise another $5M with a 15% pre-money valuation
- 11;12 \u2013 Christopher sold software companies before
- 12:00 \u2013 Annual logo churn is 8-9%
- 12:24 \u2013 Annual revenue churn is almost the same with logo churn
- 13:00 \u2013 CAC is around $10K
- 13:31 \u2013 Most of DemandJump\u2019s customers pay annually upfront
- 13:55 \u2013 Paid marketing spend was around $5K
- 14:19 \u2013 40% of DemandJump\u2019s budget goes to sales and marketing
- 15:49 \u2013 They will double or triple their paid marketing spend because of their target
- 17:20 \u2013 Assumed LTV is 36 months
- 18:54 \u2013 Team headcount is 17
- 19:29 \u2013 They\u2019re all based in Indiana
- 19:40 \u2013 7 are in engineering, 3 focus on customer success, 3 on sales, 2 on marketing and a newly hired CFO
- 21:17 \u2013 The Famous Five
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3 Key Points:
- Marketers will have a HUGE advantage if they have 100% visibility of their ecosystem.
- Paid marketing should be aligned to your target market, otherwise you\u2019re just wasting your money.
- Relationships and networking is of the UTMOST importance.
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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