EP 396: Why He Raised $3m Then Merged With #1 Competitor

Published: Aug. 24, 2016, 9 a.m.

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Kevin Davis, who came up with a creative solution for tech support. After waiting weeks to get his computer back from the Geek Squad, he thought there had to be a quicker, better solution. He created Geekatoo as a platform for people to find tech experts in their own neighborhoods.

Famous Five:

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  • Favorite Book? \\u2013 Jason Calacanis\\u2019s Podcast
  • What CEO do you follow? \\u2014 Not really, I look at other marketplaces.
  • Favorite online tool? \\u2014 Base
  • Do you get 8 hours of sleep?\\u2014Yes
  • If you could let your 20 year old self know one thing, what would it be? \\u2014 Make sure that you get your startup out as soon as possible.

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Time Stamped Show Notes:

  • 01:25 \\u2013 Nathan introduces Kevin
  • 01:50 \\u2013 Musician, tech guy, and geek
  • 02:10 \\u2013 Geekatoo, \\u201clike an Uber for tech support\\u201d
  • 03:00 \\u2013 They started out aiming for a nationwide company
  • 04:10 \\u2013 A platform
  • 04:50 \\u2013 Founded in 2010
  • 04:55 \\u2013 First-year revenue was literally nothing
    • 05:30 \\u2013 It took over a year to get the product out
    • 06:20 \\u2013 He supported himself by living back home
  • 07:00 \\u2013 Now it is much quicker to bootstrap a launch
  • 07:45 \\u2013 They take a percentage for every job that comes through
  • 08:00 \\u2013 Switched to solving larger-level problems
  • 08:50 \\u2013 Three different plans and other services
  • 09:30 \\u2013 Customers are covered for the long term
  • 10:00 \\u2013 Onboarding takes people from one service to a monthly plan
  • 10:30 \\u2013 Total customers is 40000
  • 10:50 -- $2.7 M in capital
  • 11:10 \\u2013 2015 revenue was almost $4 M
  • 11:25 \\u2013 Biggest costs
    • 11:50 \\u2013 Provider payout and overseas center
    • 12:25 \\u2013 Ad words
  • 13:20 \\u2013 A focus on positive economics
  • 14:15 \\u2013 Average project value is about $130
    • 14:40 \\u2013 Acquisition cost is $20 to $30
    • 15:15 \\u2013 A large volume of customers had $0 acquisition cost
  • 16:00 \\u2013 Reasoning behind the merger with HelloTech
    • 17:35 \\u2013 \\u201cA bigger pie\\u201d
    • 18:00 \\u2013 New partners coming forward
  • 18:35 \\u2013 kevin@hellotech.com or @geekatoo on Twitter
  • 21:15 -- The Famous Five

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3 Key Points:

  • Don\\u2019t worry about perfecting your business\\u2014get it out there as quickly as possible
  • Do what is best to help your business grow.
  • Find a simple way to communicate with your customers.

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Resources Mentioned:

  • Host Gator \\u2013 The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Freshbooks - The site Nathan uses to manage his invoices and accounts.
  • Leadpages\\xa0 \\u2013 The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible \\u2013 Nathan uses Audible when he\'s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
  • Base \\u2013 Kevin\\u2019s favorite online tool
  • Show Notes provided by Mallard Creatives
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