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Ryan Urban

๐Ÿ‘ค Speaker
730 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Yeah, so CPA, and you got to look at the different swatches in the market.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

So for an enterprise customer, like, hey, what do we think are... So I'll do a bottom-up analysis.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

I'll say, okay, well...

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Say we have a certain reps who do the sales for an enterprise client.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

What do we think that enterprise client could pay us?

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Say it's like $15,000 a month, right?

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

I'll say, let's look at just the first year alone.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

say we do a one-year contract and look at the first year.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Now let's, let's look at what our contribution margin dollars on it or contribution margin dollars or contribution dollars.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Um, so say our gross margin is 80%, right?

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Um, so, and if it's 15 K, I'll say, let's, let's look at it.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Um, so let's times that by let's times that by 12 and that's 180 K. But, um,

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

say the margin is 80% of that.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

So let's kind of reduce that a bit and say we're at a number about $150,000.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

That's the amount of profit I was making a year.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Now, if we can close, say if we can close 20% of those very warm leads, let's kind of divide that.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Now we have the breakeven value is $30,000 for very qualified enterprise demo.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

Now, what's a good CPA for that?

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

So in our case, we were historically under $1,000, which means that we weren't investing enough money in marketing.

SaaS Interviews with CEOs, Startups, Founders
From $0 to $17,000,000 In 2015 With NYC Based SaaS Company, EP 253: Ryan Urban

So now for that particular Swatch in the market, now we're at about $3,000.