Christopher Day. He’s been a successful entrepreneur, having sold two companies to a Fortune 100 company before turning 40. He’s 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’s 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? – Good to Great
- What CEO do you follow? – Jack Welch
- Favorite online tool? — One Pager
- How many hours of sleep do you get?— 4
- If you could let your 20-year old self, know one thing, what would it be? – “The power of relationships”
Time Stamped Show Notes:
- 01:48 – Nathan introduces Christopher to the show
- 02:36 – DemandJump sells their platform on a subscription basis
- 02:41 – They have annual subscriptions and professional services
- 03:10 – 82% of the revenue is from SaaS, 1% is from a one-time payment and the rest is for the other model
- 03:48 – 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 – They show marketers where to focus to capture traffic from their competitors
- 05:15 – Average annual contract value is $45K with beta customers
- 05:30 – Average annual contract value now is $100K -$250K
- 05:43 – DemandJump has started to work with mid-market companies
- 06:00 – Self-service for mid-market will be from $200 to hundred million
- 06:27 – DemandJump currently has 22 customers
- 06:50 – DemandJump is getting close to their million dollar revenue mark
- 07:11 – DemandJump was launched in 2015
- 07:36 – The traffic cloud was built in October 2016
- 08:05 – 2016 revenue was $165K
- 08:20 – MRR by December 2016 was $10K
- 08:30 – 2017 goal is to hit $1.5 in ARR
- 08:54 – DemandJump raised $4M with 18 Angel investors on their board
- 10:08 – DemandJump is looking to raise another $5M with a 15% pre-money valuation
- 11;12 – Christopher sold software companies before
- 12:00 – Annual logo churn is 8-9%
- 12:24 – Annual revenue churn is almost the same with logo churn
- 13:00 – CAC is around $10K
- 13:31 – Most of DemandJump’s customers pay annually upfront
- 13:55 – Paid marketing spend was around $5K
- 14:19 – 40% of DemandJump’s budget goes to sales and marketing
- 15:49 – They will double or triple their paid marketing spend because of their target
- 17:20 – Assumed LTV is 36 months
- 18:54 – Team headcount is 17
- 19:29 – They’re all based in Indiana
- 19:40 – 7 are in engineering, 3 focus on customer success, 3 on sales, 2 on marketing and a newly hired CFO
- 21:17 – The Famous Five
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’re just wasting your money.
- Relationships and networking is of the UTMOST importance.
Resources Mentioned:
- Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
- The Top Inbox – 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 – Track your business performance across all departments for FREE
- Hotjar – Nathan uses Hotjar to track what you’re 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 – Nathan uses Acuity to schedule his podcast interviews and appointments
- Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
- Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
- Show Notes provided by Mallard Creatives