Proposify Hits 3200 Customers and $150k in MRR with CEO Kyle Racki

kyle-racki

In Episode #527, Nathan interviews Kyle Racki, co-founder and CEO of Proposify. He’s passionate about design, SaaS, and marketing. He loves jamming out to 90s covers/tunes at open mic nights, and also has the unique ability to work in perfectly, cromulent Simpsons’ references to any conversation.

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Famous Five:

  • Favorite Book? – Lean Analytics
  • What CEO do you follow? – Alex Turnbull
  • Favorite online tool? — Heap Analytics
  • Do you get 8 hours of sleep?— Sometimes
  • If you could let your 20-year old self, know one thing, what would it be? – “That it’s all going to be okay and…I’m going to give myself a hug”

Time Stamped Show Notes:

  • 01:40 – Nathan introduces Kyle to the show
  • 02:24 – Proposify is a SaaS business and it helps people streamline their sales and close more deals
  • 02:40 – Average customer pay per month is $40-$50
  • 02:53 – Current number of customers
  • 03:10 – Average MRR
  • 03:25 – Proposify was launched in 2013
    • 03:35 – Proposify had less than $1000 MRR for 17 months
    • 04:03 – Kyle and his co-founder had an agency
    • 04:22 – Kyle raised $250K in seed capital from a local investor
    • 04:39 – Kyle and his team’s pay is around $60K a month during that time
  • 05:40 – Team size is 15 and are located in Halifax, Canada
    • 06:20 – Kyle shares how the startup market is in Halifax
    • 06:50 – Known startup companies from Halifax
  • 07:24 – Kyle does weekly phone calls with customers to check in on them
  • 07:50 – Kyle shares how one of their customers beat VaynerMedia in a proposal
  • 09:15 – How Proposify creates proposals in a flash
  • 09:40 – Proposify’s competition
  • 10:04 – Proposify is more focused on the digital agency space
  • 11:25 – Average number of new customers per month
  • 11:50 – Proposify has a free and no-credit card sign-up
  • 12:00 – Proposify does inbound sales, but organic search is the biggest source of traffic
  • 12:43 – Best podcast that drives Proposify’s traffic
  • 13:05 – Proposify has a general marketing budget
    • 13:28 – $10K for paid marketing
  • 13:45 – CAC is quite low
  • 14:18 – LTV
  • 14:40 – Gross monthly customer churn
  • 15:00 – Proposify currently has 2 sales people
  • 15:35 – Other system Kyle uses for business intelligence is Heap Analytics
  • 16:16 – Total 2015 revenue is $551K
  • 17:11 – Proposify is profitable and continually growing
  • 18:30 – “We’ll always entertain acquisition offers if it makes sense”
  • 19:00 – The process Kyle will go through if there’s a possible acquisition
  • 19:47 – Number of Proposify’s developers
  • 20:00 – Connect with Kyle through their website and help Kyle look for Proposify.com’s owner and he’ll pay you
  • 22:00 – The Famous Five

3 Key Points:

  1. There’s a temptation to spend VC money; be decisive when you want to raise capital and stick to your goals.
  2. Organic traffic is good, but getting paid marketing can still drive more traffic and customers.
  3. There are a lot of things to consider in an acquisition – it should match your personal goals, be a cultural fit, and the numbers need to make sense.

Resources Mentioned:

  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Drip – Nathan uses Drip’s email automation platform and visual campaign builder to build his sales funnel
  • 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 the quality of Toptal
  • Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens and follow-up with email sequences
  • Proposify.biz – Kyle’s business website
  • Show Notes provided by Mallard Creatives

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