Here’s Why This Ad Tech Firm Grew 3x Year Over Year, More Than $1m in Revenues

Here’s Why This Ad Tech Firm Grew 3x Year Over Year, More Than $1m in Revenues

This is from The Top Entrepreneurs Podcast by Nathan Latka:

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Quickly pick part of video to watch:
01:04 – Nathan introduces Andrew to the show
01:35 – Choozle is the fastest growing digital advertising platform because of Inc Magazine’s annual ranking
01:45 – It will be Choozle’s first year in Inc
02:02 – Choozle became profitable last year
02:16 – Choozle was launched in 2012
02:25 – Revenue is between $5-10M
02:29 – Team size is around 32
02:36 – Choozle raised a small round
02:54 – Choozle is a SaaS that installs on an agency level
03:07 – The lowest level of subscription is $99 for an agency with one client and up to $2K a month for unlimited accounts
03:21 – Average pay per customer is $300 a month
03:25 – Choozle has 250 clients
03:30 – Choozle offers hybrid-managed services
03:51 – Choozle is also an ad-tech company, so they take a percentage of media
04:03 – Media shares start at 40%
04:17 – Choozle is a premium player in the space
04:53 – 2016 revenue
05:00 – 2017 target revenue
05:34 – Majority of Choozle’s revenue are coming from Q3 and Q4
05:51 – Choozle has raised $8.5M to date
06:02 – Choozle’s grace capital is from non-traditional services like a family office
06:29 – The goal when they had a raise was to build a sustainable company
06:51 – The raise was an equity-based investment
07:02 – Average churn is 5-7% per month
08:03 – Andrew is currently happy with their churn rate
08:32 – LTV to be
08:52 – CAC
09:22 – Average payback period
09:34 – Choozle has 10 full-time salespeople, total team size is around 30
11:25 – The Famous Five

In Episode #727, Nathan interviews Andrew Fischer. He’s a seasoned entrepreneur with extensive business development and sales experience in digital media and enterprise software or SaaS. He’s recently launched Choozle, a simple and digital marketing platform in the fall of 2012. Based in Denver, Colorado, Choozle is the world’s fastest growing digital advertising platform.

Favorite Book? – The Hard Thing About Hard Things
What CEO do you follow? – Jeff Green
Favorite online tool? — Evernote
How many hours of sleep do you get?— 7
If you could let your 20-year old self, know one thing, what would it be? – “I will probably reinforce the message of focus”

3 Key Points:

1. The digital advertising space is quite saturated and the churn rate of a SaaS businesses is quite high.
2. Aim for your company to not just be profitable, but sustainable as well.
3. Don’t limit who you allow as investors in your company.