From $0 to $17,000,000 In 2015 With NYC Based SaaS Company

Ryan Urban

Summary:
In Episode #253 Nathan interviews Ryan Urban, the founder and CEO at Bounce Exchange, a fast-growing consultancy that increases online conversion rates. Listen as Nathan and Ryan talk about investing in your own start-up, why some analytics aren’t worth it, and the best eateries in Tribeca.

Famous 5

  • Favorite Book? – The Psychology of Persuasion
  • What CEO do you follow? — None
  • What is your favorite online tool? — Gmail
  • Do you get 8 hours of sleep?— No
  • If you could let your 20 year old self know one thing, what would it be? — Drop out of college! I should have dropped out instead of going to grad school.

Time Stamped Show Notes:

  • 01:20 – Nathan’s introduction
  • 02:20 – Welcoming Ryan to the show
  • 02:30 – Best eateries in the Tribeca area?
  • 02:54 – Bounce Exchange makes money for e-commerce companies
  • 03:20 – Created a new category of marketing software to increase online conversion rates
  • 04:00 – Why Ryan left Bonobos when he was offered $300k to stay
  • 04:40 – It’s crucial to get the right co-founder for a start-up
  • 06:10 – In 2013 Ryan made a little over $30k: he couldn’t get a loan for a wedding
  • 06:50 – The co-founders of Bounce Exchange are both in business
  • 07:30 – Their developer has equity but doesn’t work for BounceX full-time
  • 08:30 – Ryan didn’t want to follow the model of big software companies
  • 09:10 – Bounce Exchange currently has around 150 employees
  • 09:40 – Bounce Exchange was initially self-funded
  • 10:30 – In August 2015, raised $6.3 million in a VC round
  • 11:30 – 2012 made around $105k in revenue; 2015 made $17 million.
  • 12:00 – Aiming to make $3.3 million in December 2016
  • 12:20 – Currently working with 250-300 clients
  • 13:40 – It’s difficult to come up with average revenue per client
  • 15:30 – MRR January 2016 was between $1.5 and 2 million
  • 16:50 – Net revenue churn is roughly 0%
  • 18:20 – What are Bounce Exchange spending to acquire new customers?
  • 21:30 – CPA of around $2k
  • 23:10 – Why Ryan thinks CAK/LTV isn’t a useful analytic
  • 24:40 – What’s a better measure? Ryan likes to use CPA to acquire a qualified demo
  • 25:10 – Acquiring a customer for 20% of what the contribution margin dollars will be
  • 26:00 – 85% of the team is in New York
  • 26:45 – Bounce Exchange is currently in the black
  • 28:00 – Calculating a PNL
  • 22:30 – Other major costs include security and server infrastructure

3 Key Points:

  1. Put your energy into the right start-up. Lots of talented people waste their time making bad ideas work.
  2. Everyone feels like they’re underachieving. Decide what goals matter to you.
  3. Decide what analytics are relevant to your business. The numbers that everyone else is talking about might not be useful for you.

Resources Mentioned:

  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.