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:

1. Marketers will have a HUGE advantage if they have 100% visibility of their ecosystem.
2. Paid marketing should be aligned to your target market, otherwise you’re just wasting your money.
3. 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