StarZero All shows Try the podcast clipper →

Dec 15, 2017 · 17m · top-founders

874 How This $10m+ Agency Keeps 85%+ Gross Margins

Bob Gilbreath · 9m spoken Nathan Latka · 6m spoken
0:00 / 0:00

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

Host Nathan Latka interviews Ahology co-founder and CEO Bob Gilbreath, exploring how the company scaled beyond $10 million in revenue with 85% SaaS-level gross margins by blending proprietary trend software with enterprise influencer marketing campaigns.

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 43.1% of the talking time here. How this is scored →

Nathan as informed peer 5.0 Guest teaching 3.0 Guest disagreement 2.0 Nathan pushing back 3.7
05100:0010:000:25–4:23 · Nathan as informed peer 5/10 The Top Entrepreneurs Podcast Title Sequence Nathan presses Bob on Ahology's revenue breakdown between SaaS and campaign media, raising concerns about customer concentration and agency instability based on his own venture experience.4:23–6:30 · Nathan as informed peer 5/10 Ahology's Origins, Growth Trajectory, and $10M Revenue Nathan questions how an agency could raise ten million dollars in VC capital, while Bob reframes the company's current position around profitability, high margins, and a ten-million-dollar revenue run rate.6:30–9:35 · Nathan as informed peer 6/10 Fundraising Strategy and Proprietary Trend Data Advantages Bob educates on positioning strategy by advising founders to never use the word agency when fundraising, explaining how proprietary trend data creates SaaS-like margins within media execution.9:37–12:46 · Nathan as informed peer 6/10 Sponsor Break: Acuity Scheduling Promotion After an ad read, Nathan refuses Bob's initial deflection regarding gross margins, forcing him to benchmark against traditional SaaS levels before exploring early sales hustle tactics.12:46–15:43 · Nathan as informed peer 4/10 Previous WPP Exit, Book Publishing, and Thought Leadership Nathan inquires about Bob's prior exit to WPP, book advance figures, and the strategic ROI of publishing a traditional business book to win enterprise CMO contracts.15:43–17:21 · Nathan as informed peer 4/10 The Famous Five Questions and Episode Conclusion The interview concludes smoothly with the standard rapid-fire Famous Five questions and Nathan summarizing Ahology's core financial and operational metrics.0:25–4:23 · Guest teaching 3/10 The Top Entrepreneurs Podcast Title Sequence Nathan presses Bob on Ahology's revenue breakdown between SaaS and campaign media, raising concerns about customer concentration and agency instability based on his own venture experience.4:23–6:30 · Guest teaching 3/10 Ahology's Origins, Growth Trajectory, and $10M Revenue Nathan questions how an agency could raise ten million dollars in VC capital, while Bob reframes the company's current position around profitability, high margins, and a ten-million-dollar revenue run rate.6:30–9:35 · Guest teaching 5/10 Fundraising Strategy and Proprietary Trend Data Advantages Bob educates on positioning strategy by advising founders to never use the word agency when fundraising, explaining how proprietary trend data creates SaaS-like margins within media execution.9:37–12:46 · Guest teaching 3/10 Sponsor Break: Acuity Scheduling Promotion After an ad read, Nathan refuses Bob's initial deflection regarding gross margins, forcing him to benchmark against traditional SaaS levels before exploring early sales hustle tactics.12:46–15:43 · Guest teaching 3/10 Previous WPP Exit, Book Publishing, and Thought Leadership Nathan inquires about Bob's prior exit to WPP, book advance figures, and the strategic ROI of publishing a traditional business book to win enterprise CMO contracts.15:43–17:21 · Guest teaching 1/10 The Famous Five Questions and Episode Conclusion The interview concludes smoothly with the standard rapid-fire Famous Five questions and Nathan summarizing Ahology's core financial and operational metrics.0:25–4:23 · Guest disagreement 2/10 The Top Entrepreneurs Podcast Title Sequence Nathan presses Bob on Ahology's revenue breakdown between SaaS and campaign media, raising concerns about customer concentration and agency instability based on his own venture experience.4:23–6:30 · Guest disagreement 2/10 Ahology's Origins, Growth Trajectory, and $10M Revenue Nathan questions how an agency could raise ten million dollars in VC capital, while Bob reframes the company's current position around profitability, high margins, and a ten-million-dollar revenue run rate.6:30–9:35 · Guest disagreement 3/10 Fundraising Strategy and Proprietary Trend Data Advantages Bob educates on positioning strategy by advising founders to never use the word agency when fundraising, explaining how proprietary trend data creates SaaS-like margins within media execution.9:37–12:46 · Guest disagreement 3/10 Sponsor Break: Acuity Scheduling Promotion After an ad read, Nathan refuses Bob's initial deflection regarding gross margins, forcing him to benchmark against traditional SaaS levels before exploring early sales hustle tactics.12:46–15:43 · Guest disagreement 1/10 Previous WPP Exit, Book Publishing, and Thought Leadership Nathan inquires about Bob's prior exit to WPP, book advance figures, and the strategic ROI of publishing a traditional business book to win enterprise CMO contracts.15:43–17:21 · Guest disagreement 1/10 The Famous Five Questions and Episode Conclusion The interview concludes smoothly with the standard rapid-fire Famous Five questions and Nathan summarizing Ahology's core financial and operational metrics.0:25–4:23 · Nathan pushing back 4/10 The Top Entrepreneurs Podcast Title Sequence Nathan presses Bob on Ahology's revenue breakdown between SaaS and campaign media, raising concerns about customer concentration and agency instability based on his own venture experience.4:23–6:30 · Nathan pushing back 4/10 Ahology's Origins, Growth Trajectory, and $10M Revenue Nathan questions how an agency could raise ten million dollars in VC capital, while Bob reframes the company's current position around profitability, high margins, and a ten-million-dollar revenue run rate.6:30–9:35 · Nathan pushing back 4/10 Fundraising Strategy and Proprietary Trend Data Advantages Bob educates on positioning strategy by advising founders to never use the word agency when fundraising, explaining how proprietary trend data creates SaaS-like margins within media execution.9:37–12:46 · Nathan pushing back 6/10 Sponsor Break: Acuity Scheduling Promotion After an ad read, Nathan refuses Bob's initial deflection regarding gross margins, forcing him to benchmark against traditional SaaS levels before exploring early sales hustle tactics.12:46–15:43 · Nathan pushing back 3/10 Previous WPP Exit, Book Publishing, and Thought Leadership Nathan inquires about Bob's prior exit to WPP, book advance figures, and the strategic ROI of publishing a traditional business book to win enterprise CMO contracts.15:43–17:21 · Nathan pushing back 1/10 The Famous Five Questions and Episode Conclusion The interview concludes smoothly with the standard rapid-fire Famous Five questions and Nathan summarizing Ahology's core financial and operational metrics.

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

0:00 · Nathan 53.4% · guest 46.6%0:00 · Nathan 53.4% · guest 46.6%3:00 · Nathan 34.3% · guest 65.7%3:00 · Nathan 34.3% · guest 65.7%6:00 · Nathan 39% · guest 61%6:00 · Nathan 39% · guest 61%9:00 · Nathan 63.6% · guest 36.4%9:00 · Nathan 63.6% · guest 36.4%12:00 · Nathan 22.7% · guest 77.3%12:00 · Nathan 22.7% · guest 77.3%15:00 · Nathan 46% · guest 54%15:00 · Nathan 46% · guest 54%
Sharpest disagreement ▶ 10:55 Bob declines to disclose mixed gross margins

Bob attempts to shut down the inquiry into unit economics by stating he would rather not get that deep into the business on the show.

 Hardest push from Nathan ▶ 11:03 Nathan rejects vague qualitative descriptions

Nathan directly challenges Bob by telling him he cannot just say outstanding without providing a concrete range for the audience.

 Biggest teaching moment ▶ 7:00 Educating on hybrid positioning for investors

Bob breaks down why pitching as a services agency caps valuation and explains how to frame tech-enabled media delivery as a native publishing model.

 Nathan holds their own ▶ 11:26 Nathan details software leverage on gross margins

Nathan demonstrates operational expertise by articulating how internal proprietary software enables 85 percent gross margins on agency revenue without adding headcount.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
The Top Entrepreneurs Podcast Title Sequence 5324 Nathan presses Bob on Ahology's revenue breakdown between SaaS and campaign media, raising concerns about customer concentration and agency instability based on his own venture experience.
Ahology's Origins, Growth Trajectory, and $10M Revenue 5324 Nathan questions how an agency could raise ten million dollars in VC capital, while Bob reframes the company's current position around profitability, high margins, and a ten-million-dollar revenue run rate.
Fundraising Strategy and Proprietary Trend Data Advantages 6534 Bob educates on positioning strategy by advising founders to never use the word agency when fundraising, explaining how proprietary trend data creates SaaS-like margins within media execution.
Sponsor Break: Acuity Scheduling Promotion 6336 After an ad read, Nathan refuses Bob's initial deflection regarding gross margins, forcing him to benchmark against traditional SaaS levels before exploring early sales hustle tactics.
Previous WPP Exit, Book Publishing, and Thought Leadership 4313 Nathan inquires about Bob's prior exit to WPP, book advance figures, and the strategic ROI of publishing a traditional business book to win enterprise CMO contracts.
The Famous Five Questions and Episode Conclusion 4111 The interview concludes smoothly with the standard rapid-fire Famous Five questions and Nathan summarizing Ahology's core financial and operational metrics.

Statements from this episode (9)

Disclosure
Ahalogy's revenue was two-thirds campaign and one-third SaaS last year
“It was about last year about two-thirds campaign, about a third SaaS.”
Bob Gilbreath Dec 15, 2017 ▶ 2:26
Insight
Large brands are growing wary of SaaS commitments over active media spend
“It's easier for the large brands, I think, are starting to get wary of SaaS and technology and making those kind of commitments to what they call non-working dollars. But on the media side, it's where they're putting their, they're kind of, they have to go get…”
Bob Gilbreath Dec 15, 2017 ▶ 2:42
Disclosure
Ahalogy's average brand campaign contract is between $50,000 and $70,000
“I mean, it can go 20 grand all the way to 253 hundred grand. I'd say average around 50 to 70”
Bob Gilbreath Dec 15, 2017 ▶ 3:12
Assertion Supported
Ahalogy has raised about $10M in total capital to date
“We've raised about ten million dollars over those years.”
Bob Gilbreath Dec 15, 2017 ▶ 5:12
Assertion Not checkable as stated
Ahalogy is profitable with high margins and is not actively fundraising
“We're profitable and have great margins, and I'm not fundraising right now.”
Bob Gilbreath Dec 15, 2017 ▶ 5:33
Assertion Not checkable as stated
Ahalogy exceeds a $10M annual revenue run rate
“We're, you know, kind of over the ten million dollar a year rate right now.”
Bob Gilbreath Dec 15, 2017 ▶ 6:02
Assertion Not publicly verifiable
Quotient acquired Crisp at an estimated 6x to 7x revenue multiple
“A quotient just bought a company called crisp a few months ago in our space. I think that was something like, you know, it's always hard to tell, you know, the numbers aren't public completely, but something like a six to seven X.”
Bob Gilbreath Dec 15, 2017 ▶ 8:21
Disclosure
Ahalogy claims its agency gross margins rival typical SaaS companies
“I hold it up against SAS.”
Bob Gilbreath Dec 15, 2017 ▶ 11:09
Assertion Not publicly verifiable
Bridge Worldwide grew revenue from $10M to $45M during WPP earnout
“I mean, and during that time, we grew revenue from ten million to forty five million.”
Bob Gilbreath Dec 15, 2017 ▶ 13:38
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