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SaaS Interviews with CEOs, Startups, Founders

How To Acquire $1m+ Company For $2 Dollars with Eric Siu CEO of Single Grain

31 Jan 2016

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 15.768 Nathan Latka

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.

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Chapter 2: How did Eric Siu acquire a company for just $2?

16.268 - 18.39 Nathan Latka

I'm now at $20,000 per talk.

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Chapter 3: What challenges did Single Grain face before Eric's takeover?

18.41 - 19.391 Nathan Latka

Five and six million.

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Chapter 4: How did Eric leverage his expertise to negotiate ownership?

19.411 - 21.193 Nathan Latka

He is hell-bent on global domination.

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Chapter 5: What strategies helped Single Grain grow from zero to $30K monthly revenue?

21.253 - 27.54 Nathan Latka

We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka.

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Chapter 6: What is Care Sprout and how does it generate revenue?

27.52 - 51.638 Nathan Latka

Okay, Top Tribe, this week's winner of the 100 bucks is Rhett Gillins. He's in the restaurant industry and he feels stuck. He wants to start his own software business. So congratulations, Rhett, for your guys' chance to win 100 bucks every Monday morning. Simply subscribe to the podcast on iTunes now in order to enter and then text the word Nathan to 33444 to prove that you subscribed.

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Chapter 7: How does Eric optimize lead acquisition for Care Sprout?

51.618 - 53.101 Nathan Latka

Good morning, Top Tribe.

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Chapter 8: What tools does Eric use to track business performance?

53.161 - 73.018 Nathan Latka

The new year is almost here, and you're going to love our guest today. His name is Eric Hsu, and he's the CEO of digital marketing agency Single Grain, which has helped companies like Salesforce, Yahoo, and Intuit scale their revenues online. He also interviews entrepreneurs on marketing and personal growth on his podcast, Growth Everywhere. Eric, are you ready to take us to the top?

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72.998 - 82.367 Nathan Latka

ready as ever nathan let's do it so first things first you said that you are loving the show so i wanted to have you on tell me about single grain how do you guys make money

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82.668 - 99.308 Eric Siu

Yeah. So the original, I mean, it's like, it's like a typical marketing agency where people will come to us looking for SEO help or paid advertising help. And, you know, just to be frank, I was, I took over the business around two years ago. So I'm not the original founder. It was a struggling business.

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99.888 - 113.866 Eric Siu

And, you know, I really started to figure out, started to look at things and say, wow, I, there's certain parts of the business that I just don't like. So I really want to talk about how, you know, I was able to stop doing what, you know, I'm not good at and really started to focus on what we are good at.

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114.567 - 128.645 Eric Siu

Um, and in this, in this scenario, you know, we still get a lot of great leads and, you know, we, we've kind of started going in a direction of becoming a referral agency where we're giving business to other agencies and we're collecting a recurring income. So that's been continuing to grow in the last eight months.

128.745 - 134.933 Eric Siu

And then the, the monthly recurring revenue on that so far is a $30,000 a month from zero, um, eight months ago.

134.913 - 150.002 Nathan Latka

See, Top Type, don't you love it when I have guests on that listen to the show? They give us the numbers. I don't even have to ask. It's great, Eric. $30,000 in MRR. I want to go back first, though, real quick, because I think this is interesting. You said you took the agency over two years ago. Did you buy out the founders? I mean, tell me what you did there.

149.982 - 164.07 Eric Siu

Yeah. So I interesting story. I was brought on to help help the agency. I was given a 10 percent stake. And then down the road, the original founder decided he didn't want to do agency anymore. He wanted to go do something else. There were a couple of other partners in the business.

164.13 - 170.041 Eric Siu

But, you know, we worked out a deal where at the end of the day, out of pocket, out of my own pocket, I paid two dollars for the company.

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