BROADCASTS.com

Justin McGill. He\u2019s an entrepreneur and owned a startup in 2008 when he started a digital agency. After he scaled that out, he launched LeadFuze \u2013 a B2B lead generation platform. He\u2019s also the co-host of Zero to Scale Podcast which gives us a behind the scenes look at growing a startup with 200K per month in MRR.

Famous Five:

• Favorite Book? \u2013 The Ultimate Sales Machine
• What CEO do you follow? \u2013\xa0 Elon Musk
• Favorite online tool? \u2014 ZenPayroll which is now Gusto and bench.co
• Do you get 8 hours of sleep?\u2014 No
• If you could let your 20-year old self, know one thing, what would it be? \u2013 Justin would\u2019ve told himself that entrepreneurship was a path in life he could take

\xa0

Time Stamped Show Notes:

• 01:50 \u2013 Nathan introduces Justin to the show
• 02:15 \u2013 LeadFuze is a software platform
• • 02:21 \u2013 LeadFuze allows to you to search for contact information and automate the outreach to ideal and prospective customers\u2014turning them into possible sales opportunities
• 02:35 \u2013 LeadFuze is a subscription-based company
• 02:55 \u2013 Average MRR is $175
• • 03:08 \u2013 Early stage companies are using LeadFuze
• 03:25 \u2013 Average number of customers
• 03:45 \u2013 LeadFuze started off completely\xa0 bootstrapped and had a small raise of $150K
• • 03:56 \u2013 Two of three investors are Rob Walling of Drip and David Hauser of Grasshopper
• 04:26 \u2013 Justin shares why he decided to take capital
• 04:43 \u2013 Justin did a small equity round
• 06:10 \u2013 If you\u2019re trying to grow your sales, LeadFuze can help you
• 06:43 \u2013 LeadFuze is web-based
• 07:00 \u2013 LeadFuze wants to focus exclusively on lead generation
• 07:24 \u2013 LeadFuze is a software with a service
• 08:14 \u2013 Gross customer churn and revenue churn
• • 08:35 \u2013 \u201cCustomers stay for 6 months or so\u201d
• 09:15 \u2013 Why not just charge $175 upfront?
• • 09:31 \u2013 LeadFuze is currently a product company without engineering help
  • 09:47 \u2013 Justin is trying to look for a CTO
• 10:58 \u2013 Justin shares why his CTO left
• 11:57 \u2013 Current team size on remote
• • 12:18 \u2013 About to open an office in Phoenix, AZ
• 12:30 \u2013 LeadFuze has 3 co-founders, one who was Justin\u2019s sales coach
• 13:55 \u2013 CAC
• • 14:05 \u2013 Around $300
• 14:28 \u2013 Justin invested in content and that is what driving the signups at the moment
• 14:50 \u2013 LeadFuze offers 20 leads for free
• • 15:02 \u2013 8.5% of the signups convert from free trial to paid
  • 15:10 \u2013 Free trial doesn\u2019t require a credit card
• 15:40 \u2013 Total 2015 revenue
• • 15:50 - LeadFuze started totally free
  • 16:11 \u2013 Average total cash flow by the end of 2015 is around $250K
• 16:45 \u2013 Some of the sources where LeadFuze pulls data are from ClearBit, Full Contact, and Tower Data
• 17:23 \u2013 Hit Justin up on Twitter
• 18:55 \u2013 The Famous Five

\xa0

3 Key Points:

• As a startup, the pay-as-you-go model may be more beneficial than subscription plans.
• Entrepreneurs need to be more open about their people leaving.
• Don\u2019t waste time and TAKE the leap as early as you can.

\xa0

Resources Mentioned:

• Acuity Scheduling \u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Drip \u2013 Nathan uses Drip\u2019s email automation platform and visual campaign builder to build his sales funnel
• Toptal\xa0\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\u2019t have to hire a co-founder due to the quality of Toptal
• Host Gator\xa0\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
• Audible\xa0\u2013 Nathan uses Audible when he\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
• The Top Inbox\xa0 \u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Jamf \u2013 Jamf helped Nathan keep his Macbook Air 11\u201d secure even when he left it in the airplane\u2019s back seat pocket
• ClearBit, Full Contact, and Tower Data Where LeadFuze pulls its data
• @Jus10McGill \u2013 Justin\u2019s Twitter handle
• Show Notes provided by Mallard Creatives