Christopher Day. He’s been a successful entrepreneur, having sold two companies to a Fortune 100 company before turning 40. He’s had businesses from residential painting to investment banking doing cross-border M&A transactions. Along the way, he has found time to mentor other entrepreneurs and participates in helping solve legislative issues to foster entrepreneurial growth in the State of Indiana. He’s now building a platform with DemandJump that is looking to solve prescriptive analytics and qualified traffic. The DemandJump team has discovered marketers only have 20% visibility of their actual ecosystem.

Famous Five:

Favorite Book? – Good to Great
What CEO do you follow? – Jack Welch
Favorite online tool? — One Pager
How many hours of sleep do you get?— 4
If you could let your 20-year old self, know one thing, what would it be? – “The power of relationships”

Time Stamped Show Notes:

01:48 – Nathan introduces Christopher to the show
02:36 – DemandJump sells their platform on a subscription basis
- 02:41 – They have annual subscriptions and professional services
03:10 – 82% of the revenue is from SaaS, 1% is from a one-time payment and the rest is for the other model
03:48 – DemandJump allows marketers to have 100% visibility of their competitive ecosystem, which is the first time this has been made possible in history
- 04:57 – They show marketers where to focus to capture traffic from their competitors
05:15 – Average annual contract value is $45K with beta customers
- 05:30 – Average annual contract value now is $100K -$250K
- 05:43 – DemandJump has started to work with mid-market companies
- 06:00 – Self-service for mid-market will be from $200 to hundred million
06:27 – DemandJump currently has 22 customers
06:50 – DemandJump is getting close to their million dollar revenue mark
07:11 – DemandJump was launched in 2015
- 07:36 – The traffic cloud was built in October 2016
08:05 – 2016 revenue was $165K
08:20 – MRR by December 2016 was $10K
08:30 – 2017 goal is to hit $1.5 in ARR
08:54 – DemandJump raised $4M with 18 Angel investors on their board
10:08 – DemandJump is looking to raise another $5M with a 15% pre-money valuation
11;12 – Christopher sold software companies before
12:00 – Annual logo churn is 8-9%
12:24 – Annual revenue churn is almost the same with logo churn
13:00 – CAC is around $10K
13:31 – Most of DemandJump’s customers pay annually upfront
13:55 – Paid marketing spend was around $5K
- 14:19 – 40% of DemandJump’s budget goes to sales and marketing
- 15:49 – They will double or triple their paid marketing spend because of their target
17:20 – Assumed LTV is 36 months
18:54 – Team headcount is 17
- 19:29 – They’re all based in Indiana
- 19:40 – 7 are in engineering, 3 focus on customer success, 3 on sales, 2 on marketing and a newly hired CFO
21:17 – The Famous Five

3 Key Points:

Marketers will have a HUGE advantage if they have 100% visibility of their ecosystem.
Paid marketing should be aligned to your target market, otherwise you’re just wasting your money.
Relationships and networking is of the UTMOST importance.

Resources Mentioned:

Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
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
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

829: SaaS: Will He Get $25m Valuation on $1m ARR in Predictive Analytics Space?

SaaS Interviews with CEOs, Startups, Founders