In Episode #292, Nathan interviews Carlo Cisco, the founder and CEO of Select, a private membership community that offers discount deals with thousands of premier brands. Carlo was an early builder of Groupon. He’s also a canny investor who made $75k in stocks by investing during college. Listen in to hear Nathan and Carlo break down the numbers behind Select, discuss Groupon’s meteoric growth, and explain Select’s unbelievable CAC:LTV ratio.
- Favorite Book? –The Intelligent Investor
- What CEO do you follow? —Mark Zuckerberg
- What is your favorite online tool? — Intercom
- Do you get 8 hours of sleep?— No
- If you could let your 20 year old self know one thing, what would it be? —To get ready for some crazy stuff
Time Stamped Show Notes:
- 01:30 – Nathan’s introduction
- 01:43 – Welcoming Carlo to the show
- 02:00 – Carlo started an events planning business while he was in college
- 02:20 – Actively invested in tech companies while he was in college
- 03:16 – Carlo put about $9k into stocks and turned it into $85k
- 04:11 – Joined Groupon and helped build their operation in Japan
- 05:30 – Groupon hasn’t helped businesses enough…most businesses aren’t getting repeat customers from Groupon or LivingSocial deals
- 07:35 – Started Select in 2013
- 08:00 – The goal was to work with premier brands in an ongoing, sustainable way
- 08:50 – Select generates revenue through a $250 annual membership fee
- 09:55 – Currently have around 9000 members
- 10:20 – Annual revenue is $725k – average revenues are down because of a discount deal that generated members early on
- 11:20 – Currently at over $1 million run rate
- 11:45 – Annual retention rate is around 75% – which is unusually high for the sector
- 12:20 – Have raised just under $800k in funding
- 13:00 – Had equity funding from an accelerator programme – “The network is incredible”
- 14:00 – Currently happy to break even on customer acquisition
- 14:40 – Current lifetime value is around $900 per customer
- 15:22 – Currently have a CAC:LTV ratio of 1:7
- 15:40 – Ideal customer: High-income professionals, 25-45 years of age
- 17:02 – Connect with Carlo on Twitter and Linkedin
- 18:30 – Famous Five
3 Key Points:
- Accelerators have value beyond just funding – their networks and support can seriously pay off
- Invest wisely and early
- If you want excitement: prepare for it. Life can be crazy if you’re only ready.
- 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