$2M Agency Helps Brands Raise Capital, IPO, Sell, with ROIworks CEO George Revutsky

george-revutsky

In Episode #453, Nathan is joined by George Revutsky, CMO for Soothe – the world’s largest on-demand massage service. He’s also the CEO of ROIworks – a growth agency that runs growth and build growth agency teams for funded startup and Fortune 1000 companies like Headspace, TriNet and Original Stitch just to name a few. Listen as George talks about how he generated double digit revenue for Soothe in 11 months.

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Famous Five:

  • Favorite Book? – Don’t Make Me Think
  • What CEO do you follow? – Aaron Levie
  • Favorite online tool? — Optimizely and Hotjar
  • Do you get 8 hours of sleep?— No
  • If you could let your 20-year-old self know one thing, what would it be? – “Know the value of moderated user testing and customer development when founding companies or evaluating products”

Time Stamped Show Notes:

  • 01:10 – Nathan introduces George to the show
  • 01:48 – ROIworks started as an agency 10 years ago
    • 02:12 – Used digital tools such as aid acquisition, A/B testing etc. for a series of experiments
  • 02:40 – Typically, they would make some kind of retainer
  • 03:15 – They used to have 3-6 months contract
    • 03:40 – Shifted to monthly
  • 03:51 – Average pay per customer
    • 04:00 – $ 240,000 per customer
  • 04:05 – Number of total unique customers
  • 04:45 – First year revenue
  • 05:05 – ROIworks is making roughly around $2 million a year
  • 05:15 – 12 people in the team
  • 05:30 – ROIworks changed their model
    • 05:43 – Used to have smaller retainers
    • 06:16 – Now they’re getting larger retainers and less clients
      • 06:25 – They’re getting deeper with these Series A and B clients
  • 06:30 – Monthly head count expenses
  • 06:50 – Agencies should retain a 25% percent after all the expenses
  • 07:20 – What George does with the cash flow as the CEO
    • 07:40 – “We like to be conservative and be safe for our team members”
    • 07:50 – Keeping some cash in the bank
    • 08:04 – Give bonuses to team that is coming from the cash flow
  • 08:54 – How Soothe works with ROIworks
    • 09:00 – The founder of Soothe invested in one of George’s startup
    • 09:15 – George takes a leave from 6-12 months
      • 09:27 – George co-founded SplendidLabs during his leave
        • 09:50 – It is a machine-learning based personal shopping assistance
        • 10:08 – Sold it because they can’t find a particular market fit
    • 11:40 – George started providing ROIworks’ discounted marketing services to Soothe to help the beta testing
    • 12:21 – Soothe grew steadily
    • 12:33 – Soothe got Series A for $ 10.6 million
    • 13:51 – Hiring George directly as the contract CMO
    • 14:30 – Able to put together 11 straight months of double-digit growth
    • 14:45 – The growth led to their Series B which is for $ 35 million
    • 14:55 – ZEO is their biggest competitor
  • 15:10 – Created a playbook to acquire customers
    • 15:30 – Doing Facebook advertising, AdWords, re-marketing and a lot of paid ads
    • 16:00 – Paid acquisition is foolproof
    • 16:17 – Soothe was in the Ellen show for Mother’s Day
    • 16:59 – Who to approach with the Ellen team
  • 17:45 – Connect with George through george@roiworks.com and ROIworks.com
  • 19:00 – The Famous Five

3 Key Points:

  1. Make your team members happy – it will boost their confidence and will be reflected in their work.
  2. Be happy to help someone else find success.
  3. There are tons of ways to acquire customers – you just have to find what works best.

Resources Mentioned:

  • Toptal – Nathan found his development team using Toptal  for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal  developers.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • 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.
  • ROIworks.com – George’s business website
  • george@roiworks.com – George’s email address
  • Show Notes provided by Mallard Creatives

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