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Jul 22, 2016 · 17m · top-founders

EP 363: Google AdSense for Physical BillBoards Does $250k with Douglas Lusted

Nathan Latka · 8m spoken Douglas Lusted · 6m spoken
0:00 / 0:00

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In Episode 363 of The Top podcast, host Nathan Latka interviews LinkIt CEO Douglas Lusted to explore how his startup utilizes proprietary Wi-Fi sensors to deliver transparent, Google AdSense-style analytics and programmatic bidding to physical out-of-home billboards.

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 57.1% of the talking time here. How this is scored →

Nathan as informed peer 4.0 Guest teaching 2.4 Guest disagreement 0.4 Nathan pushing back 2.2
05100:0010:000:28–2:38 · Nathan as informed peer 4/10 Weekly Cash Giveaway Announcement and Entry Details The segment begins with solo housekeeping and sponsor promotions before introducing Douglas Lusted. When Douglas explains LinkIt's core value proposition, Nathan quickly crystallizes the model as a physical version of Google AdSense, which Douglas enthusiastically confirms.2:38–5:30 · Nathan as informed peer 6/10 LinkIt's Founding Origin, Co-Founders, and Capitalization Nathan drills into the equity split and capitalization history, quickly calculating standard 500 Startups convertible note terms and probing past funding from Canadian VCs. Douglas answers transparently while maintaining boundaries around his exact majority equity percentage.5:31–10:42 · Nathan as informed peer 5/10 Revenue Growth, Enterprise Pilots, and Sensor Technology Douglas educates Nathan on the out-of-home advertising industry, contrasting LinkIt's Wi-Fi sensor tracking with cameras and breaking down billboard CPMs. Nathan probes the conversion rate from pilots to paid contracts and synthesizes the data credibility challenge billboard networks face.10:42–13:15 · Nathan as informed peer 3/10 Target Enterprise Pipeline, Major Prospects, and Growth Strategy Nathan inquires about unit economics, recognizing that CAC and LTV metrics are premature for an enterprise pilot stage. Douglas outlines his concentrated pipeline of 30 target enterprise accounts across North America, including major billboard owners like Lamar and Clear Channel.13:16–15:54 · Nathan as informed peer 2/10 HostGator Infrastructure and Web Hosting Promotion Nathan transitions through sponsor messages into the Famous Five rapid-fire round. The exchange is lighthearted and cooperative as Douglas shares his book choice, role model, and sleep routine without any friction.0:28–2:38 · Guest teaching 2/10 Weekly Cash Giveaway Announcement and Entry Details The segment begins with solo housekeeping and sponsor promotions before introducing Douglas Lusted. When Douglas explains LinkIt's core value proposition, Nathan quickly crystallizes the model as a physical version of Google AdSense, which Douglas enthusiastically confirms.2:38–5:30 · Guest teaching 2/10 LinkIt's Founding Origin, Co-Founders, and Capitalization Nathan drills into the equity split and capitalization history, quickly calculating standard 500 Startups convertible note terms and probing past funding from Canadian VCs. Douglas answers transparently while maintaining boundaries around his exact majority equity percentage.5:31–10:42 · Guest teaching 4/10 Revenue Growth, Enterprise Pilots, and Sensor Technology Douglas educates Nathan on the out-of-home advertising industry, contrasting LinkIt's Wi-Fi sensor tracking with cameras and breaking down billboard CPMs. Nathan probes the conversion rate from pilots to paid contracts and synthesizes the data credibility challenge billboard networks face.10:42–13:15 · Guest teaching 3/10 Target Enterprise Pipeline, Major Prospects, and Growth Strategy Nathan inquires about unit economics, recognizing that CAC and LTV metrics are premature for an enterprise pilot stage. Douglas outlines his concentrated pipeline of 30 target enterprise accounts across North America, including major billboard owners like Lamar and Clear Channel.13:16–15:54 · Guest teaching 1/10 HostGator Infrastructure and Web Hosting Promotion Nathan transitions through sponsor messages into the Famous Five rapid-fire round. The exchange is lighthearted and cooperative as Douglas shares his book choice, role model, and sleep routine without any friction.0:28–2:38 · Guest disagreement 0/10 Weekly Cash Giveaway Announcement and Entry Details The segment begins with solo housekeeping and sponsor promotions before introducing Douglas Lusted. When Douglas explains LinkIt's core value proposition, Nathan quickly crystallizes the model as a physical version of Google AdSense, which Douglas enthusiastically confirms.2:38–5:30 · Guest disagreement 1/10 LinkIt's Founding Origin, Co-Founders, and Capitalization Nathan drills into the equity split and capitalization history, quickly calculating standard 500 Startups convertible note terms and probing past funding from Canadian VCs. Douglas answers transparently while maintaining boundaries around his exact majority equity percentage.5:31–10:42 · Guest disagreement 1/10 Revenue Growth, Enterprise Pilots, and Sensor Technology Douglas educates Nathan on the out-of-home advertising industry, contrasting LinkIt's Wi-Fi sensor tracking with cameras and breaking down billboard CPMs. Nathan probes the conversion rate from pilots to paid contracts and synthesizes the data credibility challenge billboard networks face.10:42–13:15 · Guest disagreement 0/10 Target Enterprise Pipeline, Major Prospects, and Growth Strategy Nathan inquires about unit economics, recognizing that CAC and LTV metrics are premature for an enterprise pilot stage. Douglas outlines his concentrated pipeline of 30 target enterprise accounts across North America, including major billboard owners like Lamar and Clear Channel.13:16–15:54 · Guest disagreement 0/10 HostGator Infrastructure and Web Hosting Promotion Nathan transitions through sponsor messages into the Famous Five rapid-fire round. The exchange is lighthearted and cooperative as Douglas shares his book choice, role model, and sleep routine without any friction.0:28–2:38 · Nathan pushing back 1/10 Weekly Cash Giveaway Announcement and Entry Details The segment begins with solo housekeeping and sponsor promotions before introducing Douglas Lusted. When Douglas explains LinkIt's core value proposition, Nathan quickly crystallizes the model as a physical version of Google AdSense, which Douglas enthusiastically confirms.2:38–5:30 · Nathan pushing back 4/10 LinkIt's Founding Origin, Co-Founders, and Capitalization Nathan drills into the equity split and capitalization history, quickly calculating standard 500 Startups convertible note terms and probing past funding from Canadian VCs. Douglas answers transparently while maintaining boundaries around his exact majority equity percentage.5:31–10:42 · Nathan pushing back 3/10 Revenue Growth, Enterprise Pilots, and Sensor Technology Douglas educates Nathan on the out-of-home advertising industry, contrasting LinkIt's Wi-Fi sensor tracking with cameras and breaking down billboard CPMs. Nathan probes the conversion rate from pilots to paid contracts and synthesizes the data credibility challenge billboard networks face.10:42–13:15 · Nathan pushing back 2/10 Target Enterprise Pipeline, Major Prospects, and Growth Strategy Nathan inquires about unit economics, recognizing that CAC and LTV metrics are premature for an enterprise pilot stage. Douglas outlines his concentrated pipeline of 30 target enterprise accounts across North America, including major billboard owners like Lamar and Clear Channel.13:16–15:54 · Nathan pushing back 1/10 HostGator Infrastructure and Web Hosting Promotion Nathan transitions through sponsor messages into the Famous Five rapid-fire round. The exchange is lighthearted and cooperative as Douglas shares his book choice, role model, and sleep routine without any friction.

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

0:00 · Nathan 65.9% · guest 34.1%0:00 · Nathan 65.9% · guest 34.1%3:00 · Nathan 33.1% · guest 66.9%3:00 · Nathan 33.1% · guest 66.9%6:00 · Nathan 34.1% · guest 65.9%6:00 · Nathan 34.1% · guest 65.9%9:00 · Nathan 39.2% · guest 60.8%9:00 · Nathan 39.2% · guest 60.8%12:00 · Nathan 84.3% · guest 15.7%12:00 · Nathan 84.3% · guest 15.7%15:00 · Nathan 90% · guest 10%15:00 · Nathan 90% · guest 10%
Sharpest disagreement ▶ 3:36 Guarding specific equity percentage

Douglas firmly draws a boundary on sharing his exact equity split, politely declining to give the exact number while confirming he retains majority ownership.

 Hardest push from Nathan ▶ 6:30 Pushing for paid conversion numbers

Nathan presses Douglas to clarify the distinction between 18 total enterprise pilots and the 6 actually paying monthly recurring revenue.

 Biggest teaching moment ▶ 7:11 Exposing the reality of billboard CPM estimates

Douglas educates Nathan on how billboard operators have historically claimed arbitrary foot traffic numbers, explaining why sensor data causes friction when audience counts are cut in half.

 Nathan holds their own ▶ 4:10 Deducing accelerator valuation and structure

Nathan immediately recognizes and recites the exact standard 500 Startups accelerator terms and discount rates before Douglas finishes explaining.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Cash Giveaway Announcement and Entry Details 4201 The segment begins with solo housekeeping and sponsor promotions before introducing Douglas Lusted. When Douglas explains LinkIt's core value proposition, Nathan quickly crystallizes the model as a physical version of Google AdSense, which Douglas enthusiastically confirms.
LinkIt's Founding Origin, Co-Founders, and Capitalization 6214 Nathan drills into the equity split and capitalization history, quickly calculating standard 500 Startups convertible note terms and probing past funding from Canadian VCs. Douglas answers transparently while maintaining boundaries around his exact majority equity percentage.
Revenue Growth, Enterprise Pilots, and Sensor Technology 5413 Douglas educates Nathan on the out-of-home advertising industry, contrasting LinkIt's Wi-Fi sensor tracking with cameras and breaking down billboard CPMs. Nathan probes the conversion rate from pilots to paid contracts and synthesizes the data credibility challenge billboard networks face.
Target Enterprise Pipeline, Major Prospects, and Growth Strategy 3302 Nathan inquires about unit economics, recognizing that CAC and LTV metrics are premature for an enterprise pilot stage. Douglas outlines his concentrated pipeline of 30 target enterprise accounts across North America, including major billboard owners like Lamar and Clear Channel.
HostGator Infrastructure and Web Hosting Promotion 2101 Nathan transitions through sponsor messages into the Famous Five rapid-fire round. The exchange is lighthearted and cooperative as Douglas shares his book choice, role model, and sleep routine without any friction.

Statements from this episode (13)

Disclosure
LinkIt sells annual subscriptions to screen network owners and advertisers
“So we sell it as an annual subscription to the network owners, so the guys who own the digital screens, or sometimes we'll sell it directly to the advertiser who wants to see that data back.”
Douglas Lusted Jul 22, 2016 ▶ 2:20
Assertion Not checkable as stated
LinkIt generated approximately $100,000 in first-year revenue
“Our first year revenue was about a 100,000.”
Douglas Lusted Jul 22, 2016 ▶ 3:08
Assertion Supported
LinkIt has raised approximately $1M CAD across two seed rounds
“No we've raised two seed rounds. In total, we've raised about a million dollars. Well, Canadian, which is about 50 cents US these days, but no, we've raised capital.”
Douglas Lusted Jul 22, 2016 ▶ 3:51
Assertion Partly supported
LinkIt raised $600K–$650K from XDL Capital and BDC
“We had raised about six, 650,000. And we raised it from XDL capital, which is a local VC in Toronto, as well as BDC, which is kind of like a government BC out in Canada.”
Douglas Lusted Jul 22, 2016 ▶ 4:46
Assertion Not checkable as stated
LinkIt generated approximately $250,000 in total revenue in 2015
“Well, 2015 total revenue was about 250,000.”
Douglas Lusted Jul 22, 2016 ▶ 5:35
Assertion Not checkable as stated
LinkIt is pacing to reach nearly $1 million in 2016 revenue
“This year we're on pace to do just under a million.”
Douglas Lusted Jul 22, 2016 ▶ 5:41
Assertion Not checkable as stated
LinkIt reached approximately $25,000 in monthly recurring revenue in May 2016
“We're at about 25,000.”
Douglas Lusted Jul 22, 2016 ▶ 6:13
Assertion Not checkable as stated
Six of LinkIt's 18 enterprise pilots converted to paying customers
“So we have, like, out of the 18 customers all 18 of them were kind of started out as pilots, which is kind of an ugly term for us, but we often have to go through fairly long pilots, and then we've had about six of those 18 converts so far.”
Douglas Lusted Jul 22, 2016 ▶ 6:23
Assertion Supported
LinkIt tracks billboard audiences using Wi-Fi sensors instead of cameras
“We have guys who use cameras. So they put a camera on the screen and track people. We actually track people through small wifi sensors.”
Douglas Lusted Jul 22, 2016 ▶ 7:12
Assertion Contradicted
The digital billboard industry is growing revenue by about 35% annually
“I don't think it's going to, you know, I don't think the industry is going to fold by any means. It's growing by about 35% per year.”
Douglas Lusted Jul 22, 2016 ▶ 9:47
Assertion Contradicted
Buying billboard ads requires calling owners rather than online bidding
“Cause right now you can't do that. You have to physically call the billboard owner and try and make a deal. So real time bidding is what I would do with it.”
Douglas Lusted Jul 22, 2016 ▶ 10:29
Disclosure
LinkIt targets 30 North American operators with contracts up to $6M
“We really are only going after like the top 30 guys in the industry. There's only really 30, 30 in Canada and US that are worth our time, and those 30 would be anywhere from 600,000 to six million a year, depending on who it is.”
Douglas Lusted Jul 22, 2016 ▶ 10:58
Assertion Not checkable as stated
Ontario Lottery and Gaming is piloting LinkIt across 9,000 digital screens
“The biggest customer prospect we have now who actually is doing a pilot is OLG, which is the Ontario lottery gaming in Canada. They have 9000 screens out there. That's the largest one in Canada.”
Douglas Lusted Jul 22, 2016 ▶ 11:18
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