StarZero All shows Try the podcast clipper →

Jan 28, 2019 · 21m · top-founders

1283 $100m Exit Was $45m Cash Upfront, Using To Launch New $10/mo Website Builder with 3250 Customers

David Braun · 11m spoken Nathan Latka · 7m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this podcast interview, host Nathan Latka speaks with serial entrepreneur David Braun about building and selling TemplateMonster for $100 million and reinvesting his capital into Weblium, an agency-SaaS hybrid website builder. Braun details his strategic approach to B2B partnership distribution, self-funded team expansion in Kyiv, and master-level negotiation in both business and personal life.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 39.8% of the talking time here. How this is scored →

Nathan as informed peer 5.2 Guest teaching 4.4 Guest disagreement 2.2 Nathan pushing back 4.6
05100:0010:0020:001:21–4:02 · Nathan as informed peer 2/10 Guest Background and Personal Life Management Nathan inquires about David's unusual personal life setup managing two wives and four children. David calmly explains his financial framework and 18-year guarantee structure to ensure family peace.4:02–7:47 · Nathan as informed peer 6/10 The Rise and $100M Sale of TemplateMonster Nathan digs into the metrics of the TemplateMonster acquisition, calculating revenue multiples and founder take-home pay. David provides transparent figures regarding the $100M total valuation, $45M upfront cash, and 70% bottom-line profit margins.7:47–9:51 · Nathan as informed peer 4/10 Launching Weblium as an Agency-SaaS Hybrid David explains Weblium's positioning as a hybrid agency-SaaS model designed to solve DIY website abandonment. Nathan interrupts to interrogate the subscription pricing and ongoing retention incentives.9:55–17:23 · Nathan as informed peer 7/10 Sponsor Spotlight: Software Discovery with Capterra Nathan presses aggressively on David's customer acquisition strategy, doubting why major institutions like banks and corporate registrars would partner without demanding revenue cuts. David defends his distribution engine by explaining that Weblium subsidizes creation costs to deliver free value for the partners' end users.17:23–19:36 · Nathan as informed peer 7/10 Churn Management, Burn Rate, and Team Structure Nathan directly challenges David's claim of having zero churn, prompting David to reveal that all customers pay upfront for an annual term. Nathan then deduces that David's 51-person team necessitates a monthly cash burn funded from his previous exit.1:21–4:02 · Guest teaching 3/10 Guest Background and Personal Life Management Nathan inquires about David's unusual personal life setup managing two wives and four children. David calmly explains his financial framework and 18-year guarantee structure to ensure family peace.4:02–7:47 · Guest teaching 3/10 The Rise and $100M Sale of TemplateMonster Nathan digs into the metrics of the TemplateMonster acquisition, calculating revenue multiples and founder take-home pay. David provides transparent figures regarding the $100M total valuation, $45M upfront cash, and 70% bottom-line profit margins.7:47–9:51 · Guest teaching 5/10 Launching Weblium as an Agency-SaaS Hybrid David explains Weblium's positioning as a hybrid agency-SaaS model designed to solve DIY website abandonment. Nathan interrupts to interrogate the subscription pricing and ongoing retention incentives.9:55–17:23 · Guest teaching 6/10 Sponsor Spotlight: Software Discovery with Capterra Nathan presses aggressively on David's customer acquisition strategy, doubting why major institutions like banks and corporate registrars would partner without demanding revenue cuts. David defends his distribution engine by explaining that Weblium subsidizes creation costs to deliver free value for the partners' end users.17:23–19:36 · Guest teaching 5/10 Churn Management, Burn Rate, and Team Structure Nathan directly challenges David's claim of having zero churn, prompting David to reveal that all customers pay upfront for an annual term. Nathan then deduces that David's 51-person team necessitates a monthly cash burn funded from his previous exit.1:21–4:02 · Guest disagreement 1/10 Guest Background and Personal Life Management Nathan inquires about David's unusual personal life setup managing two wives and four children. David calmly explains his financial framework and 18-year guarantee structure to ensure family peace.4:02–7:47 · Guest disagreement 1/10 The Rise and $100M Sale of TemplateMonster Nathan digs into the metrics of the TemplateMonster acquisition, calculating revenue multiples and founder take-home pay. David provides transparent figures regarding the $100M total valuation, $45M upfront cash, and 70% bottom-line profit margins.7:47–9:51 · Guest disagreement 2/10 Launching Weblium as an Agency-SaaS Hybrid David explains Weblium's positioning as a hybrid agency-SaaS model designed to solve DIY website abandonment. Nathan interrupts to interrogate the subscription pricing and ongoing retention incentives.9:55–17:23 · Guest disagreement 4/10 Sponsor Spotlight: Software Discovery with Capterra Nathan presses aggressively on David's customer acquisition strategy, doubting why major institutions like banks and corporate registrars would partner without demanding revenue cuts. David defends his distribution engine by explaining that Weblium subsidizes creation costs to deliver free value for the partners' end users.17:23–19:36 · Guest disagreement 3/10 Churn Management, Burn Rate, and Team Structure Nathan directly challenges David's claim of having zero churn, prompting David to reveal that all customers pay upfront for an annual term. Nathan then deduces that David's 51-person team necessitates a monthly cash burn funded from his previous exit.1:21–4:02 · Nathan pushing back 2/10 Guest Background and Personal Life Management Nathan inquires about David's unusual personal life setup managing two wives and four children. David calmly explains his financial framework and 18-year guarantee structure to ensure family peace.4:02–7:47 · Nathan pushing back 3/10 The Rise and $100M Sale of TemplateMonster Nathan digs into the metrics of the TemplateMonster acquisition, calculating revenue multiples and founder take-home pay. David provides transparent figures regarding the $100M total valuation, $45M upfront cash, and 70% bottom-line profit margins.7:47–9:51 · Nathan pushing back 4/10 Launching Weblium as an Agency-SaaS Hybrid David explains Weblium's positioning as a hybrid agency-SaaS model designed to solve DIY website abandonment. Nathan interrupts to interrogate the subscription pricing and ongoing retention incentives.9:55–17:23 · Nathan pushing back 7/10 Sponsor Spotlight: Software Discovery with Capterra Nathan presses aggressively on David's customer acquisition strategy, doubting why major institutions like banks and corporate registrars would partner without demanding revenue cuts. David defends his distribution engine by explaining that Weblium subsidizes creation costs to deliver free value for the partners' end users.17:23–19:36 · Nathan pushing back 7/10 Churn Management, Burn Rate, and Team Structure Nathan directly challenges David's claim of having zero churn, prompting David to reveal that all customers pay upfront for an annual term. Nathan then deduces that David's 51-person team necessitates a monthly cash burn funded from his previous exit.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 70.3% · guest 29.7%0:00 · Nathan 70.3% · guest 29.7%3:00 · Nathan 15.3% · guest 84.7%3:00 · Nathan 15.3% · guest 84.7%6:00 · Nathan 23.8% · guest 76.2%6:00 · Nathan 23.8% · guest 76.2%9:00 · Nathan 55.6% · guest 44.4%9:00 · Nathan 55.6% · guest 44.4%12:00 · Nathan 27.7% · guest 72.3%12:00 · Nathan 27.7% · guest 72.3%15:00 · Nathan 27.9% · guest 72.1%15:00 · Nathan 27.9% · guest 72.1%18:00 · Nathan 45% · guest 55%18:00 · Nathan 45% · guest 55%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 16:48 David refutes Nathan's assumption about partnership unit economics

When Nathan insists he would lose money offering Weblium's deals to his audience, David firmly refutes his premise by reiterating that Weblium covers the $400 setup cost entirely on the partner's behalf.

 Hardest push from Nathan ▶ 17:35 Nathan rejects David's zero churn claim

Nathan bluntly tells David he does not believe that none of the 3,250 customers have churned, citing standard SMB failure rates.

 Biggest teaching moment ▶ 17:49 David clarifies that all 3,250 customers are on annual prepaid plans

David educates Nathan on why churn has not shown up yet by pointing out that every single active customer prepaid for a full year in advance.

 Nathan holds their own ▶ 19:01 Nathan calculates payroll math to uncover the monthly burn rate

Nathan instantly calculates that supporting 51 staff members on $32k MRR would imply impossible $630 monthly salaries, forcing David to acknowledge their $85k monthly burn rate and personal subsidies.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Guest Background and Personal Life Management 2312 Nathan inquires about David's unusual personal life setup managing two wives and four children. David calmly explains his financial framework and 18-year guarantee structure to ensure family peace.
The Rise and $100M Sale of TemplateMonster 6313 Nathan digs into the metrics of the TemplateMonster acquisition, calculating revenue multiples and founder take-home pay. David provides transparent figures regarding the $100M total valuation, $45M upfront cash, and 70% bottom-line profit margins.
Launching Weblium as an Agency-SaaS Hybrid 4524 David explains Weblium's positioning as a hybrid agency-SaaS model designed to solve DIY website abandonment. Nathan interrupts to interrogate the subscription pricing and ongoing retention incentives.
Sponsor Spotlight: Software Discovery with Capterra 7647 Nathan presses aggressively on David's customer acquisition strategy, doubting why major institutions like banks and corporate registrars would partner without demanding revenue cuts. David defends his distribution engine by explaining that Weblium subsidizes creation costs to deliver free value for the partners' end users.
Churn Management, Burn Rate, and Team Structure 7537 Nathan directly challenges David's claim of having zero churn, prompting David to reveal that all customers pay upfront for an annual term. Nathan then deduces that David's 51-person team necessitates a monthly cash burn funded from his previous exit.

Statements from this episode (14)

Insight
Braun advises waiting six months post-divorce before negotiating future arrangements
“There is a grace period. It's like when she's like really mad at you because you kind of, you know, like disappointed her. So wait until the grace period ends. Usually it's about six months. Then go and talk about the future.”
David Braun Jan 28, 2019 ▶ 2:30
Disclosure
Braun structured an 18-year upfront bank plan for divorce support
“So what I did a structure 18 years plan. So I put the money in the bank. So like, she was super sure that, you know, like I would not leave her without, you know, like without the financial support and so on.”
David Braun Jan 28, 2019 ▶ 2:55
Assertion Not checkable as stated
TemplateMonster reached $1M in sales in two years
“So like we asked him to create 31st templates we published online and within first couple of months we took, we got like 70,000 dollars in sales. [324] David Braun: And after two years, we got like one million dollars in sales. [327] David Braun: Then I create…”
David Braun Jan 28, 2019 ▶ 5:13
Assertion Not checkable as stated
TemplateMonster reached $25M in annual revenue by 2013
“It was 25 mil a year.”
David Braun Jan 28, 2019 ▶ 5:59
Assertion Not checkable as stated
TemplateMonster operated at an unusually high 70% net profit margin
“No, no, no. [366] David Braun: We was like super profitable. [367] David Braun: It was 70% margin.”
David Braun Jan 28, 2019 ▶ 6:05
Disclosure
TemplateMonster's $100M sale in 2013 included $45M in upfront cash
“A cash up front was about 45.”
David Braun Jan 28, 2019 ▶ 7:08
Assertion Not checkable as stated
TemplateMonster built over 1.5 million websites for clients
“During TemplateMonster times, we created over 1.5 million websites for customers.”
David Braun Jan 28, 2019 ▶ 7:55
Opinion
Braun argues DIY website builders produce crappy sites that users hate
“People do not want to do it in do it yourself mode. Because the websites at the end are crap. You know, when you take a look, you see that, you know, like those websites are crappy, really.”
David Braun Jan 28, 2019 ▶ 8:44
Assertion Not checkable as stated
Weblium has 3,250 customers and is adding 600 monthly
“So right now we have 3250 something customers, and we are growing right now about 600 customers a month.”
David Braun Jan 28, 2019 ▶ 12:06
Assertion Not checkable as stated
Weblium generates $425k in yearly revenue with 250% growth
“I have like 425,000 yearly revenue. Cause like it's growing like crazy months over months. It's about 250% gross.”
David Braun Jan 28, 2019 ▶ 12:19
Assertion Not checkable as stated
Weblium acquires customers with zero ad spend by partnering with banks
“So I already signed up five most the biggest banks in the Ukraine. We work with two banks in Austria right now. One big banking group, which is covering 26 countries is right now, like we are signing up the contract. So actually, actually, we do not spend any …”
David Braun Jan 28, 2019 ▶ 13:45
Assertion Not checkable as stated
Weblium projects a 5-6 year customer lifetime value of $600-$700
“So LTV is around five to six years. So we basically return after investing into site creation, we're getting back 600 to 700 bucks.”
David Braun Jan 28, 2019 ▶ 17:10
Assertion Not checkable as stated
All 3,200 Weblium customers pay their annual subscription upfront
“They prepare for a year, so that is why we don't have any, all of those 3200 customers, they paid for a year in the back.”
David Braun Jan 28, 2019 ▶ 17:51
Assertion Not checkable as stated
Weblium operates unprofitably with a monthly burn rate of $85,000
“So we still we still not profitable. We need our burn rate is about 85,000 dollars.”
David Braun Jan 28, 2019 ▶ 19:14
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more