How LeadFuze CEO Justin Mcgill grew LeadFuze to $367.5K revenue and 175 customers in 2016.

this is the top where I interview entrepreneurs who are number one or number two in their industry in terms of Revenue or customer base you'll learn how much revenue they're making what their marketing funnel looks like and how many customers they have I'm now at $20,000 per top 5 and6 million he is help on global domination we just broke our 100,000 unit sold Mark and I'm your host Nathan lka okay top dbe this winner of The 100 bucks is Daniel Alini he's based overseas he's an employee at a current company and can't wait to break free for your chance to win 100 bucks top tribe simply subscribe to the podcast now and then text the word Nathan to 33444 to prove that you did it again text the word Nathan to 33444 to prove that you did it I give away 100 bucks every Monday folks many of you reach out to me and you say Nathan so many guests on your show talk about the importance of batching but whenever I try and batch you tell me this you go Nathan they don't book back to back times so you or they don't show up after they book it's frustrating the answer is guys you have to use Smart Tools I use a tool called AE scheduling at Nathan lat.com schedu I'll tell you specifically how I use it later on in the episode Nathan L here hope you guys are off to a great New Year this is episode 537 I'm actively building and buying SAS companies the top inbox.com was the last one I bought if you have a deal send it my way and be sure to tune in tomorrow morning for episode 5:38 you're going to learn from next. Founders they've raised a million bucks in Pre in their pre- revenue they're aiming for a $6 million series a for a smart sales automation tool Nathan ladka here good morning everybody Our Guest today is Justin Mill and his Entre Journey started in 2008 when he started a digital agency after he scaled that out he launched lead fuse a B2B lead generation platform he's also the co-host of the zero tocale podcast which gives a behind the scenes look at growing a startup to 100K per month in mrr Justin are you ready to take us to the top let's do it all right tell us about lead fuse what do you do and how do you generate Revenue yeah so essentially we're a software platform we actually started off as a kind of a product IED service but we're we're now fully a software platform and basically we allow you to discover contact information and kind of automate that that Outreach to your ideal customers uh or at least your ideal perspective customers and then turn those into you know sales opportunities and how do you generate Revenue so basically it's a it's a sub you know a subscription so people pay to access the the platform so um you know essentially you get a certain number of of leads and and you can send a certain number of emails and and whatnot what is the so I see you have 150 bucks per user per month all the way up to 400 bucks per user per month what's the average customer paying you per month yeah it's it's roughly about $175 or so dollars a month is is kind of the average okay and is that is that what a a whole business would pay you or what what a seat on a business would pay you so it's a seat but right now we're we're primarily there's a lot of like early stage companies that use us and so uh it's it's predominantly like one seat um and so we're we're we'll gradually start to move up Market but right now it's it's primarily one seat we've got a couple that are you know two or three but it's it's primarily one seat and how many customers are paying you here in December 2016 uh roughly 175 or so 175 yeah right around there that makes the math easy can I just do 175 arpu times 175 customers to get anr of about 30 grand yeah that's exactly it awesome very cool talk to us about funding are you bootstrapping this or have you raised Capital yeah so started off completely bootstrapped we just recently raised some money like a small round 150,000 we we may end up adding another 100,000 or so but uh we we raised 150,000 we've got some awesome investors like like Rob Walling of drip who I know you've uh you've talked about their product they just recently sold the lead pages but he's an investor uh David Hower and Adam Gustafson are are three investors currently why does David how are ring about is that grasshopper grasshopper yeah yep very successful uh had had an exit there does uh chargify now and why' you decide to uh actually they just sold chargify that was a pretty good deal I think that's public um uh why did you decide to take Capital basically we we wanted to validate the the software and and kind of validate the business first and then kind of take on software to help us get to that next stage and start to you know invest more into marketing which you know marketing and sales and which and that's something we're we're just now starting really was that a convertible note or Equity round Equity oh wow okay this is so okay pretty pretty small Equity round most people do convertible n of that size why did you decide to do an equity round we we don't plan on doing uh another round you know like this is going to be just basically it's a One-Shot deal um you know we we kind of have the business structured where we're not going to need to raise more so we kind of wanted to keep that bootstrapped mindset I guess uh and bring them on as kind of more so as partners I mean I was very specific about who we brought on as investors um these were people that you know listened to like the Zer to scale podcast for example so they understood how we operated you know kind of the way I I approach business and so they came to us and um you know I look at them more as partners I guess than I do actual investors interesting interesting so were they actually we're very similar this way I'm I have actively have many VC and private Equity firms throwing ridiculous amounts of money at this rollup strategy I'm doing the mtek space um well marketing kind of BB SAS space but uh I just haven't really pulled the trigger yet uh one of the things I'm thinking about though is if you want to get someone's time like David's uh it makes a lot of sense or robs it makes a lot of sense to take a little bit of money right to get some of their mind share sure absolutely yeah I mean they've got you know just successes under their belt you know and and they've been kind of where I want to take lead FWS and so uh having them as kind of a a Guiding Light if you will certainly helps so tell us what you do what what's the company actually do what do I do or the the lead fuse what does lead yeah if someone's listening right now they're going I wonder if I should use these lead fuse guys what would you tell them yeah so I mean essentially you know if you're you know trying to grow your sales and and obviously you need lead generation to be a part of that uh you know lead fuse helps you uncover contact information on your ideal customer uh prospects I guess P prospective customers that should say and then you know basically automates the Outreach to them so I know you're working on something thing kind of in that space where you know it sends the emails and kind of automatically follows up and it's kind of the same thing it just ties it all into one platform essentially oh so okay so do you have a is yours web based or does it actually exist inside of Gmail no it's it's completely web based you can connect uh you know your your Google apps or or Office 365 accounts and is this I mean when I looked at your stuff I mean this looks to me more like we'll give you 500 leads you then go kind of figure out what to do with them but you have it sounds like you do I mean do you have CRM and some of that stuff built into the back end we actually integrate with CRM so we want to kind of be more top of funnel we do not want to be like the entire sales process right so uh we want to focus exclusively on the lead generation part and so you know kind of where we we you know are different in a sense is that not only are we just focused top of funnel but but also like we provide a little bit of a service so we're more of like a a swass if you will like a software with a service in the sense that we actually helped you that's the first Justin that was pretty slick so so essentially like we kind of help you construct your email copy as well because for you to have success with our platform from a customer success standpoint we know that you're going to need to send better cold emails than than what most people are putting together right so we actually kind of based on how we started as this done for you model where you didn't even have access to software I mean we wrote your email scripts we did the email sending and then we just forwarded you leads and that kind of helped us validate things but um you know through that process we we got pretty good at at sending cold emails and what that copy should be and so we've kind of translated that over into kind of a service level offering that's included in the software packages and so what is the you said you have 125 customers today um what's your gross customer turn monthly yeah so so user turn or like Revenue turn gross customer turn so we're at about 20 just...