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Apr 2, 2016 · 17m · top-founders

26 and Managing $8.4m In Adspend with Fehzan Ali of Adscendmedia.com EP 219

Nathan Latka · 7m spoken Fehzan Ali · 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 Fehzan Ali, CEO of Adscend Media, examining how his bootstrapped company scaled to $700,000 in monthly ad spend through rewarded mobile advertising. Fehzan breaks down the financial mechanics of performance networks, his pivot from desktop to mobile offer walls, and key leadership insights behind managing an $8.4 million annual run rate.

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 51.6% of the talking time here. How this is scored →

Nathan as informed peer 5.4 Guest teaching 3.2 Guest disagreement 1.6 Nathan pushing back 3.4
05100:0010:001:07–4:21 · Nathan as informed peer 6/10 Introducing Fehzan Ali and Adscend Media's Core Model Nathan probes Adscend Media's core monetization model, testing Fehzan on metrics, client economics, and managed spend numbers. Fehzan explains their performance-based CPA/CPI model and 30% take rate collaboratively.4:42–7:23 · Nathan as informed peer 7/10 Clarifying Campaign Economics and Platform Revenue Nathan pushes Fehzan to clarify how a hypothetical $100,000 ad campaign actually distributes money. Fehzan corrects Nathan's assumption that Adscend operates as an agency rather than a performance technology platform.7:23–11:30 · Nathan as informed peer 7/10 Desktop History and Pivot to Mobile Offer Walls Nathan presses on Fehzan's claim of reaching a $13M business, demanding exact clarity on whether that figure represents gross ad spend or net revenue. He also challenges Fehzan on the confusing phrasing regarding selling versus pivoting the original company.11:30–13:33 · Nathan as informed peer 4/10 Bootstrapping, Austin Headquarters, and Industry Vision The conversation shifts to a friendly Austin connection, local network ties, and bootstrapping history. Fehzan outlines his vision of rewarded advertising replacing intrusive ads.13:33–16:51 · Nathan as informed peer 3/10 Podcast Giveaway Details and HostGator Sponsorship A standard Famous Five rapid-fire segment combined with mid-roll and outro promotions. Both participants maintain an easygoing, cooperative tone.1:07–4:21 · Guest teaching 3/10 Introducing Fehzan Ali and Adscend Media's Core Model Nathan probes Adscend Media's core monetization model, testing Fehzan on metrics, client economics, and managed spend numbers. Fehzan explains their performance-based CPA/CPI model and 30% take rate collaboratively.4:42–7:23 · Guest teaching 5/10 Clarifying Campaign Economics and Platform Revenue Nathan pushes Fehzan to clarify how a hypothetical $100,000 ad campaign actually distributes money. Fehzan corrects Nathan's assumption that Adscend operates as an agency rather than a performance technology platform.7:23–11:30 · Guest teaching 5/10 Desktop History and Pivot to Mobile Offer Walls Nathan presses on Fehzan's claim of reaching a $13M business, demanding exact clarity on whether that figure represents gross ad spend or net revenue. He also challenges Fehzan on the confusing phrasing regarding selling versus pivoting the original company.11:30–13:33 · Guest teaching 2/10 Bootstrapping, Austin Headquarters, and Industry Vision The conversation shifts to a friendly Austin connection, local network ties, and bootstrapping history. Fehzan outlines his vision of rewarded advertising replacing intrusive ads.13:33–16:51 · Guest teaching 1/10 Podcast Giveaway Details and HostGator Sponsorship A standard Famous Five rapid-fire segment combined with mid-roll and outro promotions. Both participants maintain an easygoing, cooperative tone.1:07–4:21 · Guest disagreement 1/10 Introducing Fehzan Ali and Adscend Media's Core Model Nathan probes Adscend Media's core monetization model, testing Fehzan on metrics, client economics, and managed spend numbers. Fehzan explains their performance-based CPA/CPI model and 30% take rate collaboratively.4:42–7:23 · Guest disagreement 2/10 Clarifying Campaign Economics and Platform Revenue Nathan pushes Fehzan to clarify how a hypothetical $100,000 ad campaign actually distributes money. Fehzan corrects Nathan's assumption that Adscend operates as an agency rather than a performance technology platform.7:23–11:30 · Guest disagreement 3/10 Desktop History and Pivot to Mobile Offer Walls Nathan presses on Fehzan's claim of reaching a $13M business, demanding exact clarity on whether that figure represents gross ad spend or net revenue. He also challenges Fehzan on the confusing phrasing regarding selling versus pivoting the original company.11:30–13:33 · Guest disagreement 1/10 Bootstrapping, Austin Headquarters, and Industry Vision The conversation shifts to a friendly Austin connection, local network ties, and bootstrapping history. Fehzan outlines his vision of rewarded advertising replacing intrusive ads.13:33–16:51 · Guest disagreement 1/10 Podcast Giveaway Details and HostGator Sponsorship A standard Famous Five rapid-fire segment combined with mid-roll and outro promotions. Both participants maintain an easygoing, cooperative tone.1:07–4:21 · Nathan pushing back 3/10 Introducing Fehzan Ali and Adscend Media's Core Model Nathan probes Adscend Media's core monetization model, testing Fehzan on metrics, client economics, and managed spend numbers. Fehzan explains their performance-based CPA/CPI model and 30% take rate collaboratively.4:42–7:23 · Nathan pushing back 5/10 Clarifying Campaign Economics and Platform Revenue Nathan pushes Fehzan to clarify how a hypothetical $100,000 ad campaign actually distributes money. Fehzan corrects Nathan's assumption that Adscend operates as an agency rather than a performance technology platform.7:23–11:30 · Nathan pushing back 6/10 Desktop History and Pivot to Mobile Offer Walls Nathan presses on Fehzan's claim of reaching a $13M business, demanding exact clarity on whether that figure represents gross ad spend or net revenue. He also challenges Fehzan on the confusing phrasing regarding selling versus pivoting the original company.11:30–13:33 · Nathan pushing back 2/10 Bootstrapping, Austin Headquarters, and Industry Vision The conversation shifts to a friendly Austin connection, local network ties, and bootstrapping history. Fehzan outlines his vision of rewarded advertising replacing intrusive ads.13:33–16:51 · Nathan pushing back 1/10 Podcast Giveaway Details and HostGator Sponsorship A standard Famous Five rapid-fire segment combined with mid-roll and outro promotions. Both participants maintain an easygoing, cooperative tone.

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

0:00 · Nathan 58.3% · guest 41.7%0:00 · Nathan 58.3% · guest 41.7%3:00 · Nathan 33.4% · guest 66.6%3:00 · Nathan 33.4% · guest 66.6%6:00 · Nathan 34.8% · guest 65.2%6:00 · Nathan 34.8% · guest 65.2%9:00 · Nathan 43.1% · guest 56.9%9:00 · Nathan 43.1% · guest 56.9%12:00 · Nathan 70% · guest 30%12:00 · Nathan 70% · guest 30%15:00 · Nathan 70.8% · guest 29.2%15:00 · Nathan 70.8% · guest 29.2%
Sharpest disagreement ▶ 10:56 Pushing back on company sale phrasing

Fehzan firmly rejects Nathan's assumption that he sold or lost the prior desktop business, clarifying it was simply a revenue stream pivot within the exact same entity.

 Hardest push from Nathan ▶ 8:22 Refusing conflated revenue terminology

Nathan refuses to let Fehzan blur top-line media spend with realized revenue, interrupting to demand precision on whether $13M was managed ad spend or Adscend's cut.

 Biggest teaching moment ▶ 6:09 Explaining performance platform economics

Fehzan directly educates Nathan that Adscend is not an agency taking an upfront fee, but a performance platform that only captures a 30% share on successfully delivered installs.

 Nathan holds their own ▶ 9:30 Deconstructing Adscend's P&L and gross margins

Nathan demonstrates financial mastery by restructuring Fehzan's figures into proper accounting terminology, breaking down top-line gross billings, publisher COGS, and real net gross profit.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Fehzan Ali and Adscend Media's Core Model 6313 Nathan probes Adscend Media's core monetization model, testing Fehzan on metrics, client economics, and managed spend numbers. Fehzan explains their performance-based CPA/CPI model and 30% take rate collaboratively.
Clarifying Campaign Economics and Platform Revenue 7525 Nathan pushes Fehzan to clarify how a hypothetical $100,000 ad campaign actually distributes money. Fehzan corrects Nathan's assumption that Adscend operates as an agency rather than a performance technology platform.
Desktop History and Pivot to Mobile Offer Walls 7536 Nathan presses on Fehzan's claim of reaching a $13M business, demanding exact clarity on whether that figure represents gross ad spend or net revenue. He also challenges Fehzan on the confusing phrasing regarding selling versus pivoting the original company.
Bootstrapping, Austin Headquarters, and Industry Vision 4212 The conversation shifts to a friendly Austin connection, local network ties, and bootstrapping history. Fehzan outlines his vision of rewarded advertising replacing intrusive ads.
Podcast Giveaway Details and HostGator Sponsorship 3111 A standard Famous Five rapid-fire segment combined with mid-roll and outro promotions. Both participants maintain an easygoing, cooperative tone.

Statements from this episode (7)

Disclosure
Ali: Adscend Media Processes $700,000 in Monthly Media Spend
“We're doing approximately 700,000 dollars a month currently in media spend.”
Fehzan Ali Apr 2, 2016 ▶ 2:47
Disclosure
Ali: Adscend Acquired Slice App Users for a $2 CPA
“So we just finished up a really big campaign with a company called slice and they do like, they're basically like a shopping assistant and package tracker app top rated on the, on, on the app market. And we were acquiring users for them that were linking their…”
Fehzan Ali Apr 2, 2016 ▶ 3:24
Disclosure
Ali: Adscend Media Takes a 30% Cut of Processed Media Spend
“So we sit in the middle, we create the technology and the algorithms to maximize revenue and ROI for everybody in the process, and as a result, we take a rough share of roughly 30%.”
Fehzan Ali Apr 2, 2016 ▶ 4:07
Assertion Not checkable as stated
Ali: Adscend Managed $13M in Annual Desktop Ad Spend
“So the aggregate amount of spend that we're managing top line is thirteen million, and we kept 30% of that thirteen million.”
Fehzan Ali Apr 2, 2016 ▶ 9:22
Assertion Not checkable as stated
Ali: Mobile Accounts for 95% of Adscend Media's Revenue
“And of course, mobile has taken off and is actually 95% of our revenue today.”
Fehzan Ali Apr 2, 2016 ▶ 11:22
Assertion Not checkable as stated
Ali: Adscend Media Employs Around 20 Full-Time Staff
“Currently we have about 20.”
Fehzan Ali Apr 2, 2016 ▶ 11:33
Disclosure
Ali: Adscend Media Was Bootstrapped With Just $10,000
“Bootstrap the company with about 10,000 dollars to start and pretty much just been reinvesting the profits.”
Fehzan Ali Apr 2, 2016 ▶ 12:27
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