SaaS Interviews with CEOs, Startups, Founders
They Grew 60% YoY to $4.2m Revenue By Spending $300k on FB Ads
01 Mar 2021
Chapter 1: What is the main topic discussed in this episode?
We are doing about three and a half million a year.
Okay. Got it.
Yeah. So this is 4.2 or something.
Yeah. Got it. Got it. So more like 350, $400,000.
60% growth year over year.
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And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public. We got to grow faster. Minimum is 100% over the past several years. Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise.
Or Looker CEO Frank Behan before Google acquired his company for $2.6 billion.
We want to see a real pervasive data culture, and then the rest flows behind that.
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Chapter 2: How did AX Semantics evolve from a content agency to a SaaS company?
Do they understand the product or was that just, you know, fat finger on Facebook? Um, and, um, then we have a consultation call. We see, do they have the data? Um, what is the exact need? And then we onboard them and, and, and close.
So with all the spend you're doing on Facebook, Instagram, and Google, first off, quantify that for us. How much did you spend last month on those paid platforms?
Um,
I wouldn't know on a monthly basis, but I can tell you that it's probably 250K. I'm talking euros here, so at 10%, 15%. 250K a year.
Yep, on ads. Okay, got it. So with that kind of sample size, you should sort of know what your CAC is. What do you pay to get a new $850 a month customer?
Well, a fresh lead is about 25 to 35 euros per lead. From there, we have 25 to 30% conversion into an appointment. From the appointment, we have 70% conversion into an opportunity in the good stage. And when I say good stage, it's a stage that keeps moving. It's not like, circle back or reconnect or whatever. It's something like a signature handover.
Um, the two famous stages that we have ping and pong, you have to do something. They have to do something lead appointment.
Now they're qualified. Then what?
Um, and we have this, um, consultation call with them.
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Chapter 3: What strategies were used to acquire the first customers?
But what you do know is that net dollar retention annually is now above a hundred percent. Yes. Got it. The expansion from historical cohorts is more than that same revenue you lost from that same cohort. Yes. I see. Well, congratulations. That's a big step.
It was a long, very, very dark way. And, uh, yeah, but we made it through.
How do you plan? How do you plan to get customers this year? Is it still going to be about 400 grand of Facebook, Instagram, and Google ad ad spend?
Well, we are playing around with new ways. We are looking into outbound for the first time. We are also developing the product further. Next step is, I'm not sure it's totally official, but it's going to be official like next week. We are going into personalization. Let me give you a quick example. Take a power driller.
If you have a power driller, it's a different tool for a carpenter than it is for a car mechanic than it is for an electrician. yet it has the same description why they're doing different things with it. Uh, so if you can tell from the path that you, from the user journey, this is a carpenter, or this is a, somebody who is into car parts that give them a different description of the tool.
Um, so it's close to one, one personalization. And, um, this is where we are heading with the product. Um, This naturally has a bigger market. So we are looking into Outbound as a new acquisition channel.
Great. We'll see how it goes. You'll have to come back on and give us an update. In the meantime, let's wrap up here with the famous five. Number one, favorite business book? Right now, it's The Mom Test. Number two, is there a CEO you're following or studying?
Not really, no.
Number three, what's your favorite?
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