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.
Bounce Exchange Revenue: $17,000,000
- 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:
- Put your energy into the right start-up. Lots of talented people waste their time making bad ideas work.
- Everyone feels like they’re underachieving. Decide what goals matter to you.
- Decide what analytics are relevant to your business. The numbers that everyone else is talking about might not be useful for you.
- 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.
- Show Notes provided by Mallard Creatives