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Jul 9, 2016 · 22m · top-founders

EP 350: Toronto Based SaaS Doing $25k MRR with 10 Clients with Amanda Parker

Nathan Latka · 12m spoken Amanda Parker · 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 episode of The Top, host Nathan Latka interviews Amanda Parker, CEO of Simply Insight, exploring how she transitioned from running a marketing agency to scaling a natural-language data analytics SaaS to over $25,000 in monthly recurring revenue with high enterprise ARPU.

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 61.6% of the talking time here. How this is scored →

Nathan as informed peer 4.7 Guest teaching 1.7 Guest disagreement 1.8 Nathan pushing back 3.8
05100:0010:0020:000:28–2:59 · Nathan as informed peer 4/10 Weekly Listener Contest Winner Announcement Nathan inquires about Amanda's transition from running an agency with enterprise clients to launching a software startup. Amanda explains that discovering client data pain points prompted her to focus entirely on building Simply Insight.3:01–6:53 · Nathan as informed peer 7/10 Simply Insight's Software Model and Pre-Selling Validation Nathan repeatedly presses Amanda when she deflects revenue questions with vague descriptors like 'ramen profitable' and percentage growth. He firmly insists on an actual revenue anchor, leading her to disclose a monthly recurring revenue of 20k to 35k dollars.6:53–10:35 · Nathan as informed peer 6/10 Outbound Sales Strategy, Customer Acquisition, and Toronto Ecosystem The discussion covers customer acquisition costs, churn, and the Toronto tech talent pool. Nathan breaks down the financial viability of Amanda's sales rep model while she details having zero churn at her target pricing tier.10:35–16:05 · Nathan as informed peer 8/10 Fundraising Strategy and Convertible Note Terms Debate Amanda describes raising a 500k convertible note with no interest or discount, dismissing terms as irrelevant rounding errors if the company succeeds. Nathan strongly challenges this view, demonstrating financial expertise by outlining macroeconomic risks and the legal danger of callable debt.16:05–19:54 · Nathan as informed peer 3/10 Contact Channels for Simply Insight and Amanda Parker Amanda shares her contact details and answers the standard Famous Five questions. The segment also features ad reads for live events and web hosting services.19:57–21:20 · Nathan as informed peer 0/10 HostGator and Google AdWords Credit Promotion Nathan delivers a solo outro promoting Google AdWords credits, HostGator hosting, and upcoming live events. Because this is a host monologue and ad read, all dynamic scores remain zero.0:28–2:59 · Guest teaching 2/10 Weekly Listener Contest Winner Announcement Nathan inquires about Amanda's transition from running an agency with enterprise clients to launching a software startup. Amanda explains that discovering client data pain points prompted her to focus entirely on building Simply Insight.3:01–6:53 · Guest teaching 2/10 Simply Insight's Software Model and Pre-Selling Validation Nathan repeatedly presses Amanda when she deflects revenue questions with vague descriptors like 'ramen profitable' and percentage growth. He firmly insists on an actual revenue anchor, leading her to disclose a monthly recurring revenue of 20k to 35k dollars.6:53–10:35 · Guest teaching 2/10 Outbound Sales Strategy, Customer Acquisition, and Toronto Ecosystem The discussion covers customer acquisition costs, churn, and the Toronto tech talent pool. Nathan breaks down the financial viability of Amanda's sales rep model while she details having zero churn at her target pricing tier.10:35–16:05 · Guest teaching 3/10 Fundraising Strategy and Convertible Note Terms Debate Amanda describes raising a 500k convertible note with no interest or discount, dismissing terms as irrelevant rounding errors if the company succeeds. Nathan strongly challenges this view, demonstrating financial expertise by outlining macroeconomic risks and the legal danger of callable debt.16:05–19:54 · Guest teaching 1/10 Contact Channels for Simply Insight and Amanda Parker Amanda shares her contact details and answers the standard Famous Five questions. The segment also features ad reads for live events and web hosting services.19:57–21:20 · Guest teaching 0/10 HostGator and Google AdWords Credit Promotion Nathan delivers a solo outro promoting Google AdWords credits, HostGator hosting, and upcoming live events. Because this is a host monologue and ad read, all dynamic scores remain zero.0:28–2:59 · Guest disagreement 1/10 Weekly Listener Contest Winner Announcement Nathan inquires about Amanda's transition from running an agency with enterprise clients to launching a software startup. Amanda explains that discovering client data pain points prompted her to focus entirely on building Simply Insight.3:01–6:53 · Guest disagreement 3/10 Simply Insight's Software Model and Pre-Selling Validation Nathan repeatedly presses Amanda when she deflects revenue questions with vague descriptors like 'ramen profitable' and percentage growth. He firmly insists on an actual revenue anchor, leading her to disclose a monthly recurring revenue of 20k to 35k dollars.6:53–10:35 · Guest disagreement 1/10 Outbound Sales Strategy, Customer Acquisition, and Toronto Ecosystem The discussion covers customer acquisition costs, churn, and the Toronto tech talent pool. Nathan breaks down the financial viability of Amanda's sales rep model while she details having zero churn at her target pricing tier.10:35–16:05 · Guest disagreement 5/10 Fundraising Strategy and Convertible Note Terms Debate Amanda describes raising a 500k convertible note with no interest or discount, dismissing terms as irrelevant rounding errors if the company succeeds. Nathan strongly challenges this view, demonstrating financial expertise by outlining macroeconomic risks and the legal danger of callable debt.16:05–19:54 · Guest disagreement 1/10 Contact Channels for Simply Insight and Amanda Parker Amanda shares her contact details and answers the standard Famous Five questions. The segment also features ad reads for live events and web hosting services.19:57–21:20 · Guest disagreement 0/10 HostGator and Google AdWords Credit Promotion Nathan delivers a solo outro promoting Google AdWords credits, HostGator hosting, and upcoming live events. Because this is a host monologue and ad read, all dynamic scores remain zero.0:28–2:59 · Nathan pushing back 3/10 Weekly Listener Contest Winner Announcement Nathan inquires about Amanda's transition from running an agency with enterprise clients to launching a software startup. Amanda explains that discovering client data pain points prompted her to focus entirely on building Simply Insight.3:01–6:53 · Nathan pushing back 7/10 Simply Insight's Software Model and Pre-Selling Validation Nathan repeatedly presses Amanda when she deflects revenue questions with vague descriptors like 'ramen profitable' and percentage growth. He firmly insists on an actual revenue anchor, leading her to disclose a monthly recurring revenue of 20k to 35k dollars.6:53–10:35 · Nathan pushing back 3/10 Outbound Sales Strategy, Customer Acquisition, and Toronto Ecosystem The discussion covers customer acquisition costs, churn, and the Toronto tech talent pool. Nathan breaks down the financial viability of Amanda's sales rep model while she details having zero churn at her target pricing tier.10:35–16:05 · Nathan pushing back 8/10 Fundraising Strategy and Convertible Note Terms Debate Amanda describes raising a 500k convertible note with no interest or discount, dismissing terms as irrelevant rounding errors if the company succeeds. Nathan strongly challenges this view, demonstrating financial expertise by outlining macroeconomic risks and the legal danger of callable debt.16:05–19:54 · Nathan pushing back 2/10 Contact Channels for Simply Insight and Amanda Parker Amanda shares her contact details and answers the standard Famous Five questions. The segment also features ad reads for live events and web hosting services.19:57–21:20 · Nathan pushing back 0/10 HostGator and Google AdWords Credit Promotion Nathan delivers a solo outro promoting Google AdWords credits, HostGator hosting, and upcoming live events. Because this is a host monologue and ad read, all dynamic scores remain zero.

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

0:00 · Nathan 69.6% · guest 30.4%0:00 · Nathan 69.6% · guest 30.4%3:00 · Nathan 47.3% · guest 52.7%3:00 · Nathan 47.3% · guest 52.7%6:00 · Nathan 44.8% · guest 55.2%6:00 · Nathan 44.8% · guest 55.2%9:00 · Nathan 35.6% · guest 64.4%9:00 · Nathan 35.6% · guest 64.4%12:00 · Nathan 56.4% · guest 43.6%12:00 · Nathan 56.4% · guest 43.6%15:00 · Nathan 89.7% · guest 10.3%15:00 · Nathan 89.7% · guest 10.3%18:00 · Nathan 76.8% · guest 23.2%18:00 · Nathan 76.8% · guest 23.2%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 14:09 Amanda dismisses convertible note terms as rounding errors

Amanda rejects Nathan's scrutiny regarding convertible note terms, arguing that interest and discount calculations do not matter because everyone gets rich if the startup succeeds.

 Hardest push from Nathan ▶ 5:42 Nathan demands concrete revenue metrics over vague percentages

Nathan refuses Amanda's framing of month-over-month percentage growth and explicitly points out that she is dancing around the question before demanding an absolute dollar figure.

 Biggest teaching moment ▶ 12:19 Amanda explains incentivizing lead angel investors

Amanda educates the audience and Nathan on the tactical necessity of offering sweeter terms to an anchor lead investor to build momentum for the remainder of an angel round.

 Nathan holds their own ▶ 14:44 Nathan details convertible debt liquidation risk

Nathan leverages his own startup and financing background to counter Amanda's optimism, warning that convertible notes are legal debt that investors can recall if the macroeconomic climate shifts.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Listener Contest Winner Announcement 4213 Nathan inquires about Amanda's transition from running an agency with enterprise clients to launching a software startup. Amanda explains that discovering client data pain points prompted her to focus entirely on building Simply Insight.
Simply Insight's Software Model and Pre-Selling Validation 7237 Nathan repeatedly presses Amanda when she deflects revenue questions with vague descriptors like 'ramen profitable' and percentage growth. He firmly insists on an actual revenue anchor, leading her to disclose a monthly recurring revenue of 20k to 35k dollars.
Outbound Sales Strategy, Customer Acquisition, and Toronto Ecosystem 6213 The discussion covers customer acquisition costs, churn, and the Toronto tech talent pool. Nathan breaks down the financial viability of Amanda's sales rep model while she details having zero churn at her target pricing tier.
Fundraising Strategy and Convertible Note Terms Debate 8358 Amanda describes raising a 500k convertible note with no interest or discount, dismissing terms as irrelevant rounding errors if the company succeeds. Nathan strongly challenges this view, demonstrating financial expertise by outlining macroeconomic risks and the legal danger of callable debt.
Contact Channels for Simply Insight and Amanda Parker 3112 Amanda shares her contact details and answers the standard Famous Five questions. The segment also features ad reads for live events and web hosting services.
HostGator and Google AdWords Credit Promotion 0000 Nathan delivers a solo outro promoting Google AdWords credits, HostGator hosting, and upcoming live events. Because this is a host monologue and ad read, all dynamic scores remain zero.

Statements from this episode (11)

Disclosure
Parker: Simply Insight charges $2,500 to $5,000 monthly subscription fees
“They pay anywhere between 2505 thousand dollars per month.”
Amanda Parker Jul 9, 2016 ▶ 3:13
Disclosure
Parker: Simply Insight presold client contracts before having a product
“Signed on our first client contracts before we actually even had a product, ah, in market.”
Amanda Parker Jul 9, 2016 ▶ 3:57
Assertion Not checkable as stated
Parker: Simply Insight is growing at least 20% month-over-month
“So, so we're growing at least 20% month over month.”
Amanda Parker Jul 9, 2016 ▶ 5:35
Assertion Not checkable as stated
Parker: Simply Insight expects $20k to $35k MRR this month
“Sure, so we're, we'll be expecting this month somewhere between, like, 20 and 35 K.”
Amanda Parker Jul 9, 2016 ▶ 6:02
Prediction Not checkable as stated
Parker: Simply Insight aims to hit $50k MRR by year-end 2016
“So our ARR our goal is by the end of the year, getting to 50 K MRR.”
Amanda Parker Jul 9, 2016 ▶ 6:24
Assertion Not checkable as stated
Parker: Simply Insight has about 10 clients
“So, we've changed around our pricing model, so it does depend a little bit but you're looking at about 10 clients.”
Amanda Parker Jul 9, 2016 ▶ 6:42
Assertion Not checkable as stated
Parker: Our outbound sales rep nearly covered his annual salary in six weeks
“We're, so right now everything is outbound sales, so that's my sales guy's salary is essentially what we're paying, so he, he's pretty, almost close to have paid for himself for the year, and he's been around about six, six weeks now.”
Amanda Parker Jul 9, 2016 ▶ 7:01
Insight
Parker: Consulting builds marquee logos that boost enterprise SaaS sales
“Even if you don't necessarily have an agency model, even doing some consulting in the space that you think that there's a problem in gives you a really good entrance. And I mean, those kind of names definitely help in fundraising and absolutely help when other…”
Amanda Parker Jul 9, 2016 ▶ 7:45
Assertion Not checkable as stated
Simply Insight intentionally cut $10,000 in MRR by firing low-tier accounts
“So we don't have any churn at the higher levels right now. So we originally were selling like a couple hundred bucks a month and just kind of test some things out in the market. We turned off that tab which was about 10 K per month MRR that we lost because we …”
Amanda Parker Jul 9, 2016 ▶ 9:08
Disclosure
Simply Insight raised on a convertible note with zero discount and interest
“No, it's a little bit more simple than that, so we're just doing a cap and no discount, no interest.”
Amanda Parker Jul 9, 2016 ▶ 12:19
Opinion
Latka: It has never been a better time to start a company
“It's never been a better time to start a company. I mean, if you're like a little smart and you have kind of an idea, preferably a problem you're solving for yourself, it's never been better because the fact that angels are willing to do these convertible note…”
Nathan Latka Jul 9, 2016 ▶ 13:47
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