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David Barrett. He started programming at the early age of 6 and has been aspiring to become an expense report magnate ever since. He attended the University of Michigan where he worked in a virtual reality lab before moving to Texas to render 3D graphics engines for the video game industry. Next, he moved to California to join Travis of Uber in building a peer-to-peer file transfer technology called Red Swoosh, which was acquired by Akamai in 2007. In 2008, David left that company to start Expensify and has since been relieving the world\u2019s frustration one expense report at a time.

Famous Five:

• Favorite Book? \u2013 Good to Great
• What CEO do you follow? \u2013 Elon Musk
• Favorite online tool? \u2014 Google Docs
• 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 \u201cIt is possible for everyone else around you to be wrong and for you to be right\u201d

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Time Stamped Show Notes:

• 01:46 \u2013 Nathan introduces David to the show
• 02:38 \u2013 Expense reports have been overlooked
• 02:56 \u2013 David took the opportunity that will take care of expense reports
• 03:18 \u2013 Expense report is synonymous with any business
• 03:52 \u2013 David shares how his eagerness to help the homeless led him to create an expense report reimbursement app
• 05:09 \u2013 David was in Episode 655 of The Top
• 05:16 \u2013 Expensify isn\u2019t looking to raise another round at the moment as they just raised $25M
• 05:23 \u2013 Expensify is currently profitable and not burning capital
• 05:27 \u2013 Team size is 120
• 05:33 \u2013 Expensify was founded in 2008
• 06:04 \u2013 Expensify currently has 42K customers
• 06:21 \u2013 Expensify also has millions of free users
• 06:49 \u2013 Pricing has a free account which offers 10 receipts a month and a paid account starts at $9 per active user
  • 07:15 \u2013 Enterprise plans also start at $9
• 08:21 \u2013 ARR is still under $100M
• 09:44 \u2013 The expansion is the bulk of Expensify\u2019s revenue growth
• 10:40 \u2013 Expensify has a $5 plan for a group
• 11:10 \u2013 Revenue retention is over 100% annually
  • 11:24 \u2013 Every 3 years, a customer pays 500% more
• 12:55 \u2013 The most effective strategy to acquire customers is to hand their product to the individual employees and promote it within their own companies
  • 14:14 \u2013 David shares how the payment shifts from the employee's personal card to the company\u2019s expenses
  • 16:16 \u2013 The target is to share to at least one other person
• 16:35 \u2013 Expensify doesn\u2019t have any paid channels
  • 16:40 \u2013 They do lots of conferences which is more for establishing brand leadership
  • 17:25 \u2013 They spend a single digit million, annually, for their conference
  • 17:32 \u2013 Their conference is ExpensiCon
  • 18:00 \u2013 Only 100 selected people can join
• 19:35 \u2013 David believes that the cost of sales doesn\u2019t equate to the cost of customer acquisition
  • 21:38 \u2013 The most important decisions are not quantifiable
• 22:40 \u2013 David won\u2019t sell Expensify for $300M
• 16:10 \u2013 The Famous Five

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3 Key Points:

1. Getting your own clients to refer you is the best way to grow your customer base.
2. The most important decisions for your company are sometimes not quantifiable.
3. Focus on the best possible brand or product you can offer.

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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