How to 3x Customer Revenue, Be More Than Just Document Signing

Mikita Mikado

In Episode #750, Nathan interviews Mikita Mikado. He’s the CEO of PandaDoc, a company founded to accelerate the way organizations transact. He’s an entrepreneur, engineer and executive focused on creating self-sustaining companies.

Famous Five:

  • Favorite Book? – Pitch Anything
  • What CEO do you follow? – Satya Nadella
  • Favorite online tool? — Google Calendar
  • How many hours of sleep do you get?— 8
  • If you could let your 20-year old self, know one thing, what would it be? – Mikita would tell himself to not focus too much on making money, but just focus on learning as much as he can

Time Stamped Show Notes:

  • 01:24 – Nathan introduces Mikita to the show
  • 02:03 – Jared Fuller was in Episode 193 of The Top and is still part of PandaDoc
  • 02:25 – PandaDoc helps organizations in the way they transact
    • 02:39 – We cover all kinds of transactions
  • 02:52 – PandaDoc focuses on deals that have substantial value and paperwork
  • 03:06 – PandaDoc can build proposals, quotes, contracts and close deals in a digital fashion
  • 03:30 – PandaDoc’s RPU has increased since last year
  • 03:56 – PandaDoc has annual deals
  • 04:10 – Average customer pay
  • 05:10 – PandaDoc gets most of their customers from word-of-mouth
  • 05:32 – PandaDoc is doing well in SEO
  • 06:15 – PandaDoc gives their small customers templates that they can use in their deals
  • 06:58 – The marketing team finds keywords that are most popular and relevant to them
    • 07:20 – They use Moz and other tools to find keywords
  • 08:03 – The templates from PandaDoc are in HTML, not PDF
  • 08:41 – QuoteRoller was the first product that was launched in 2011
    • 08:56 – There was a pivot to PandaDoc at the end of 2015
  • 09:06 – Team size is now 104-106
  • 09:23 – The last year total raised was $4.5M in cash and $2M in debt
  • 09;41 – Currently, the debt has been paid
  • 09:50 – Total amount raised is $19.5M
  • 10:17 – PandaDoc has more than 7K customers
  • 10:30 – PandaDoc has 2 different cohorts of customers
  • 11:22 – Gross churn is satisfactory
  • 11:50 – From last year’s revenue churn, it was 9%
  • 12:46 – PandaDoc has a longer churn that will probably reactivate
  • 13:21 – Some inbound marketers use PandaDoc to close a deal then will stop using it
  • 13:50 – 5% monthly churn is high for Mikita
  • 14:38 – PandaDoc has around 100 team members and 2 are focused on targeting customers
  • 15:13 – CAC and LTV varies
  • 16:00 – Mikita is trying to get under 12 months for a payback period
  • 16:29 – Fully weighted CAC can be $1200
    • 16:48 – How Mikita assumes CAC
  • 18:47 – The industry’s rule of thumb for their payback period is 1.13 of ACV or a 14 month payback period
  • 19:05 – PandaDoc has channels that have a payback period of 6 months and 2 years
  • 19:29 – PandaDoc has an outbound sales team that is their delta force
    • 19:54 – The outbound sales team finds the industries that PandaDoc should target
  • 21:05 – Paid spent total is under a quarter of a million
  • 21:19 – PandaDoc is close to hitting a million in MRR
  • 22:08 – “We want to make an impact”
  • 22:22 – PandaDoc is a horizontal product
  • 23:22 – PandaDoc competes on every particular feature that they have
  • 23:47 – PandaDoc focuses on workflow and the actual collaboration of the workflow
    • 23:58 – “We want a system of records for deals or transactions”
  • 24:05 – PandaDoc isn’t going to the CRM space
    • 24:18 – Mikita has been in the CRM space before
    • 24:43 – One of the challenges of CRM is the emergence of AI
  • 25:40 – The goals behind PandaDoc are to make an impact, learn and have fun
  • 27:12 – Mikita’s consideration for a price of acquisition
  • 28:08 – Silicon Valley has a great ecosystem to develop and thrive
  • 30:20 – The Famous Five

3 Key Points:

  1. Create a product that serves a different market and fills a gap others may not have seen.
  2. Your goals will guide you through your business but, at the same time, follow your goals while being mindful of your employees and company.
  3. Multiple revenue cohorts means you need to have multiple marketing and sales strategies.

Resources Mentioned:

  • 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
  • GetLatka – Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Simplero – The easiest way to start and sell your course
  • 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
  • Show Notes provided by Mallard Creatives