SaaS Interviews with CEOs, Startups, Founders
727: Why People Pay Him $10m+/year or $4 on Every $10 in Ads Managed
21 Jul 2017
Chapter 1: What is the main topic discussed in this episode?
Andrew founded Choozle back in 2012.
Chapter 2: What is Choozle and why is it considered the fastest growing digital advertising platform?
They've got a multi-tiered kind of revenue approach where they're making money on a SaaS play, but also rev share. The SaaS side of that, 250 customers paying on average 300 bucks a month, so 75 grand there per month. Additionally, again, making most of their money on the percentage of ad spend side.
Raised 8.5 million bucks, did about 10 million in sales in 20, or last year, looking to hit about 20 million this year. This is episode 727, Choozle. Coming up tomorrow morning, you'll learn from Aaron Klein. And with $24 million raised, why is he building financial technology on the back of advisors? But first, here's today's episode.
This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per talk.
Chapter 3: How has Choozle achieved profitability and what are its revenue figures?
Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka.
Chapter 4: What is the subscription model and pricing structure for Choozle's services?
Hello, everyone. My guest today is Andrew Fisher. He's a seasoned entrepreneur with extensive business development and sales experience in digital media and entrepreneur service. software or enterprise software or SaaS. He recently launched Choozle, a simple end-to-end digital marketing platform in the fall of 2012.
Based in Denver, Colorado, Choozle is the world's fastest growing digital advertising platform.
Chapter 5: How does Choozle generate revenue beyond subscription fees?
Andrew, you're ready to take us to the top. All right. Thanks for having me in. Yeah, that's a big word. Fastest growing digital advertising platform. How do you know you're the biggest? Prove it.
Well, we know we're the fastest growing just based on our growth rates as proven by third-party sources, including Inc. Magazine and their annual rankings. What were you ranked? This will be our first year in Inc. because you have to have four years of track record above a certain revenue level. So when I looked at last year's benchmarks, we'll probably be in the 60s or 70s worldwide.
And so for our category, we'll still be the fastest growing over that period of time, which is exciting. And we also got profitable last year, which is pretty unusual for us. a fast-growing technology company to also get profitable in the same year. So we're very proud of that.
That's great. So you launched this again several years ago.
Chapter 6: What strategies does Choozle implement to manage customer churn?
I think you said 2012, correct?
Yep. So it's been about four and a half years.
Got it. And I'm pulling the data, I think, off Inc. here. That's where my research team got this, I believe. But 2016 revenue was between $5 and $10 million?
Yep.
Exactly.
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Chapter 7: How does Choozle calculate customer acquisition cost and lifetime value?
And about 30 employees?
Yeah. We ended last year, 2016, at 32 full-time employees. We actually raised a small... follow-on round based on our success last year.
Chapter 8: What are the key metrics that indicate Choozle's business health?
So we've invested pretty rapidly in the team. We are actually just about 50 full-time employees. So we've had a pretty big growth spurt over the last six months or so.
And what's the business model? Is it an agency retainer model or is it SaaS?
It's SaaS in the sense that we are fully a self-service platform. We install at the agency level. They do have a monthly license fee, which is very much a SaaS type model.
Which is what on average?
It depends. The lowest level of subscription we have is $99 for an agency with a single client, and that can go up to around $2,000 per month if they want to fully white label our system, have unlimited accounts.
Average it for me, though, Andrew. What would you say if you average it?
The average subscription level is probably about $300 a month.
Okay.
per client. We've got about 250 clients in the platform. As I mentioned, the vast majority are self-service. We do offer kind of hybrid managed services, which is kind of a training program to get our agencies up to speed until they are able to take over the controls.
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