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May 16, 2017 · 22m · top-founders

661: How Unbounce Hit $12M/Year In Revenue, 14k Customers, Very Little $$ Raised with Co-Founder Oli Gardner

Nathan Latka · 10m spoken Oli Gardner · 9m 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 episode of The Top, host Nathan Latka interviews Unbounce co-founder Oli Gardner to examine how the company scaled to $1.4 million in monthly recurring revenue and 14,000 customers with less than $1 million CAD in capital raised. Gardner reveals candid insights into SaaS pricing overhauls, customer churn reduction, paid acquisition economics, and his personal journey as a tech leader.

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 50.8% of the talking time here. How this is scored →

Nathan as informed peer 5.8 Guest teaching 2.2 Guest disagreement 1.2 Nathan pushing back 2.5
05100:0010:0020:001:09–5:32 · Nathan as informed peer 5/10 Introducing Oli Gardner and Unbounce Conversion Platform Nathan guides the origin story of Unbounce, drilling down into how equity was split among six co-founders. Oli is very transparent and collaborative, sharing candid details about financial hardship and early valuation methods.5:33–8:28 · Nathan as informed peer 6/10 Scaling Team, Restructuring Pricing, and Moving Upmarket Nathan quotes Unbounce pricing tiers from research, but Oli clarifies the difference between annual and monthly pricing. Oli explains how eliminating the entry-level tier reduced customer support drag and repositioned them upmarket.8:29–11:04 · Nathan as informed peer 7/10 Customer Milestones, Monthly Revenue, and Churn Prevention Nathan computes Unbounce's monthly recurring revenue in real time using active customer numbers and ARPU. Oli confirms the figure and breaks down churn metrics and how product additions address seasonal flappers.11:05–14:10 · Nathan as informed peer 6/10 Expansion Revenue Levers and Competitive Product Moats Nathan cites specific expansion features and names competitors like SumoMe and Bounce Exchange. Oli articulates Unbounce's competitive moat with pixel-perfect custom designs over generic pop-up templates.14:14–16:38 · Nathan as informed peer 5/10 Public Speaking, AI Conversion Automation, and Marketing CAC Nathan enthusiastically praises Oli's public speaking and extracts core acquisition unit economics. Oli outlines their paid CPA figures and agency transition smoothly.16:38–20:05 · Nathan as informed peer 6/10 The Famous Five and Life Lessons on Radical Truth Nathan moves through the Famous Five questions and refuses to let an ambiguous personal relationship remark drop without extracting a business lesson. He finishes with an analytical recap of the company's core metrics.1:09–5:32 · Guest teaching 1/10 Introducing Oli Gardner and Unbounce Conversion Platform Nathan guides the origin story of Unbounce, drilling down into how equity was split among six co-founders. Oli is very transparent and collaborative, sharing candid details about financial hardship and early valuation methods.5:33–8:28 · Guest teaching 4/10 Scaling Team, Restructuring Pricing, and Moving Upmarket Nathan quotes Unbounce pricing tiers from research, but Oli clarifies the difference between annual and monthly pricing. Oli explains how eliminating the entry-level tier reduced customer support drag and repositioned them upmarket.8:29–11:04 · Guest teaching 3/10 Customer Milestones, Monthly Revenue, and Churn Prevention Nathan computes Unbounce's monthly recurring revenue in real time using active customer numbers and ARPU. Oli confirms the figure and breaks down churn metrics and how product additions address seasonal flappers.11:05–14:10 · Guest teaching 2/10 Expansion Revenue Levers and Competitive Product Moats Nathan cites specific expansion features and names competitors like SumoMe and Bounce Exchange. Oli articulates Unbounce's competitive moat with pixel-perfect custom designs over generic pop-up templates.14:14–16:38 · Guest teaching 1/10 Public Speaking, AI Conversion Automation, and Marketing CAC Nathan enthusiastically praises Oli's public speaking and extracts core acquisition unit economics. Oli outlines their paid CPA figures and agency transition smoothly.16:38–20:05 · Guest teaching 2/10 The Famous Five and Life Lessons on Radical Truth Nathan moves through the Famous Five questions and refuses to let an ambiguous personal relationship remark drop without extracting a business lesson. He finishes with an analytical recap of the company's core metrics.1:09–5:32 · Guest disagreement 1/10 Introducing Oli Gardner and Unbounce Conversion Platform Nathan guides the origin story of Unbounce, drilling down into how equity was split among six co-founders. Oli is very transparent and collaborative, sharing candid details about financial hardship and early valuation methods.5:33–8:28 · Guest disagreement 1/10 Scaling Team, Restructuring Pricing, and Moving Upmarket Nathan quotes Unbounce pricing tiers from research, but Oli clarifies the difference between annual and monthly pricing. Oli explains how eliminating the entry-level tier reduced customer support drag and repositioned them upmarket.8:29–11:04 · Guest disagreement 1/10 Customer Milestones, Monthly Revenue, and Churn Prevention Nathan computes Unbounce's monthly recurring revenue in real time using active customer numbers and ARPU. Oli confirms the figure and breaks down churn metrics and how product additions address seasonal flappers.11:05–14:10 · Guest disagreement 2/10 Expansion Revenue Levers and Competitive Product Moats Nathan cites specific expansion features and names competitors like SumoMe and Bounce Exchange. Oli articulates Unbounce's competitive moat with pixel-perfect custom designs over generic pop-up templates.14:14–16:38 · Guest disagreement 1/10 Public Speaking, AI Conversion Automation, and Marketing CAC Nathan enthusiastically praises Oli's public speaking and extracts core acquisition unit economics. Oli outlines their paid CPA figures and agency transition smoothly.16:38–20:05 · Guest disagreement 1/10 The Famous Five and Life Lessons on Radical Truth Nathan moves through the Famous Five questions and refuses to let an ambiguous personal relationship remark drop without extracting a business lesson. He finishes with an analytical recap of the company's core metrics.1:09–5:32 · Nathan pushing back 2/10 Introducing Oli Gardner and Unbounce Conversion Platform Nathan guides the origin story of Unbounce, drilling down into how equity was split among six co-founders. Oli is very transparent and collaborative, sharing candid details about financial hardship and early valuation methods.5:33–8:28 · Nathan pushing back 3/10 Scaling Team, Restructuring Pricing, and Moving Upmarket Nathan quotes Unbounce pricing tiers from research, but Oli clarifies the difference between annual and monthly pricing. Oli explains how eliminating the entry-level tier reduced customer support drag and repositioned them upmarket.8:29–11:04 · Nathan pushing back 3/10 Customer Milestones, Monthly Revenue, and Churn Prevention Nathan computes Unbounce's monthly recurring revenue in real time using active customer numbers and ARPU. Oli confirms the figure and breaks down churn metrics and how product additions address seasonal flappers.11:05–14:10 · Nathan pushing back 2/10 Expansion Revenue Levers and Competitive Product Moats Nathan cites specific expansion features and names competitors like SumoMe and Bounce Exchange. Oli articulates Unbounce's competitive moat with pixel-perfect custom designs over generic pop-up templates.14:14–16:38 · Nathan pushing back 1/10 Public Speaking, AI Conversion Automation, and Marketing CAC Nathan enthusiastically praises Oli's public speaking and extracts core acquisition unit economics. Oli outlines their paid CPA figures and agency transition smoothly.16:38–20:05 · Nathan pushing back 4/10 The Famous Five and Life Lessons on Radical Truth Nathan moves through the Famous Five questions and refuses to let an ambiguous personal relationship remark drop without extracting a business lesson. He finishes with an analytical recap of the company's core metrics.

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

0:00 · Nathan 67.9% · guest 32.1%0:00 · Nathan 67.9% · guest 32.1%3:00 · Nathan 35% · guest 65%3:00 · Nathan 35% · guest 65%6:00 · Nathan 27.6% · guest 72.4%6:00 · Nathan 27.6% · guest 72.4%9:00 · Nathan 48% · guest 52%9:00 · Nathan 48% · guest 52%12:00 · Nathan 40.4% · guest 59.6%12:00 · Nathan 40.4% · guest 59.6%15:00 · Nathan 40% · guest 60%15:00 · Nathan 40% · guest 60%18:00 · Nathan 71.4% · guest 28.6%18:00 · Nathan 71.4% · guest 28.6%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 12:00 Rejecting the pop-up label and abuse of technology

Oli passionately rejects the industry label of spammy pop-ups, asserting that human misuse rather than the technology is to blame while differentiating Unbounce's overlay philosophy.

 Hardest push from Nathan ▶ 18:28 Pressing for a business lesson from a personal answer

Nathan refuses to let Oli end on an ambiguous reflection about an early marriage, insisting on knowing if it affected the business and demanding an actionable takeaway.

 Biggest teaching moment ▶ 7:06 Oli explains the counterintuitive benefit of raising prices

Oli educates the audience and Nathan on how removing their cheap ten-dollar tier drastically reduced support overhead and attracted serious marketers.

 Nathan holds their own ▶ 9:07 Nathan calculates MRR on the fly

Nathan instantly calculates the implied MRR of 1.3 million dollars by multiplying 14,000 customers by a 93-dollar ARPU, which Oli confirms is almost exact at 1.4 million dollars.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Oli Gardner and Unbounce Conversion Platform 5112 Nathan guides the origin story of Unbounce, drilling down into how equity was split among six co-founders. Oli is very transparent and collaborative, sharing candid details about financial hardship and early valuation methods.
Scaling Team, Restructuring Pricing, and Moving Upmarket 6413 Nathan quotes Unbounce pricing tiers from research, but Oli clarifies the difference between annual and monthly pricing. Oli explains how eliminating the entry-level tier reduced customer support drag and repositioned them upmarket.
Customer Milestones, Monthly Revenue, and Churn Prevention 7313 Nathan computes Unbounce's monthly recurring revenue in real time using active customer numbers and ARPU. Oli confirms the figure and breaks down churn metrics and how product additions address seasonal flappers.
Expansion Revenue Levers and Competitive Product Moats 6222 Nathan cites specific expansion features and names competitors like SumoMe and Bounce Exchange. Oli articulates Unbounce's competitive moat with pixel-perfect custom designs over generic pop-up templates.
Public Speaking, AI Conversion Automation, and Marketing CAC 5111 Nathan enthusiastically praises Oli's public speaking and extracts core acquisition unit economics. Oli outlines their paid CPA figures and agency transition smoothly.
The Famous Five and Life Lessons on Radical Truth 6214 Nathan moves through the Famous Five questions and refuses to let an ambiguous personal relationship remark drop without extracting a business lesson. He finishes with an analytical recap of the company's core metrics.

Statements from this episode (13)

Assertion Supported
Unbounce raised less than $1M CAD across family, angel, and seed rounds
“It was a friends and family around initially, so some of the people who had a little bit of money threw in, I think it was a total of 50 grand Canadian between the people that contributed, then a little bit after that we had some angel, a total of like one 80…”
Oli Gardner May 16, 2017 ▶ 3:27
Assertion Supported
Gardner: Five of Unbounce's six co-founders remain active at company
“Five of us are.”
Oli Gardner May 16, 2017 ▶ 5:25
Assertion Not checkable as stated
Gardner: Unbounce has approximately 184 employees
“We are 184, I think.”
Oli Gardner May 16, 2017 ▶ 5:42
Assertion Not checkable as stated
Gardner: Unbounce ARPU is around $93 per month
“It is, ARPU is around 93 dollars a month.”
Oli Gardner May 16, 2017 ▶ 6:12
Insight
Gardner: Removing cheap subscription tiers increased revenue and reduced support burden
“And so we took that out, and then we eventually took the 25 dollar plan out as well. Our revenue went up, obviously, because things cost more. I mean, it's really scary doing that. You think, oh, no one's gonna sign up anymore, but they do. They pay for it. It…”
Oli Gardner May 16, 2017 ▶ 7:42
Assertion Not checkable as stated
Unbounce has 14,000 active paying customers
“14,000 active.”
Oli Gardner May 16, 2017 ▶ 8:33
Assertion Not checkable as stated
Gardner: Unbounce generates just under $1.4M in MRR
“It's 1.4, just under, I think.”
Oli Gardner May 16, 2017 ▶ 9:22
Disclosure
Unbounce launched Convertibles to reduce seasonal customer churn
“That's the reason we launched this convertibles set of tools, because then we're on the website too. And you're getting tons of leads and being very successful there. So you're less likely to want to turn it off. So that was the strategy.”
Oli Gardner May 16, 2017 ▶ 10:15
Opinion
Gardner: Bounce Exchange is the most advanced competitor in website overlays
“They would be the one I respect the most when it comes to the overlay world, because I know that they're doing a lot with machine learning and such, so they're pretty advanced.”
Oli Gardner May 16, 2017 ▶ 12:50
Disclosure
Unbounce's data science team aims to automate conversion rate optimization
“And I work on our Cylons team, our machine learning artificial intelligence team, which we've just grown this big data team, a bunch of data scientists, and that's really excited. Our goal there is to automate conversion.”
Oli Gardner May 16, 2017 ▶ 15:23
Assertion Not checkable as stated
Gardner: Unbounce paid customer acquisition cost is around $160 to $200
“I think our CPA for paid is around, we just engaged a new agency, so it's fluctuating, but I think from what I've seen, it's around the one 60 to 200 mark.”
Oli Gardner May 16, 2017 ▶ 15:42
Assertion Not checkable as stated
Gardner: Unbounce average customer lifetime value is roughly $1,000
“It depends on the plan, but I think on average it's probably around a thousand dollars.”
Oli Gardner May 16, 2017 ▶ 16:02
Assertion Not checkable as stated
Gardner: Unbounce spends around $100,000 monthly on paid acquisition
“Not sure. I would say around about that mark.”
Oli Gardner May 16, 2017 ▶ 16:34
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