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Mar 30, 2016 · 19m · top-founders

This Media Agency Does $6m in Revenue with 32 Employees With Matt Weinberg of Vector Media Group EP 211

Matt Weinberg · 8m spoken Nathan Latka · 8m 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 Matt Weinberg, co-founder of Vector Media Group, to uncover how his bootstrapped digital agency scaled from a high school side project into a six-million-dollar annual revenue business with 32 employees.

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 50.2% of the talking time here. How this is scored →

Nathan as informed peer 4.2 Guest teaching 3.0 Guest disagreement 0.4 Nathan pushing back 1.2
05100:0010:001:13–3:39 · Nathan as informed peer 3/10 Introducing Matt Weinberg of Vector Media Group Nathan introduces Matt and inquires about the company's early evolution from a high school computer repair service to a modern digital agency. The tone is purely conversational and cooperative as Matt shares their background.3:39–7:54 · Nathan as informed peer 6/10 Revenue Streams and Ad Spend Management Model Nathan probes into the business model, performing quick mental math to calculate their monthly revenue from ad spend management based on percentage take rates. Matt confirms the numbers and elaborates on the split between web development and ad management.7:54–12:13 · Nathan as informed peer 5/10 Hourly Rates, Annual Revenue, and Seasonal Fluctuations Nathan sets up a mock client consultation scenario with a hypothetical small budget. Matt educates him on how agencies scope business requirements into technical specs, agile sprints, and the necessity of reserving budget for post-launch iterations.12:13–14:51 · Nathan as informed peer 4/10 Client Success Stories: Greentech Media and Associated Press Matt discusses notable client engagements including Greentech Media and the Associated Press. Nathan acknowledges the technical complexity of large-scale CMS architecture.14:52–17:50 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions with Matt Weinberg During the Famous Five, Nathan teasingly reinterprets Matt's praise of Travis Kalanick as an endorsement of breaking laws, which Matt gently qualifies and redirects.1:13–3:39 · Guest teaching 2/10 Introducing Matt Weinberg of Vector Media Group Nathan introduces Matt and inquires about the company's early evolution from a high school computer repair service to a modern digital agency. The tone is purely conversational and cooperative as Matt shares their background.3:39–7:54 · Guest teaching 3/10 Revenue Streams and Ad Spend Management Model Nathan probes into the business model, performing quick mental math to calculate their monthly revenue from ad spend management based on percentage take rates. Matt confirms the numbers and elaborates on the split between web development and ad management.7:54–12:13 · Guest teaching 5/10 Hourly Rates, Annual Revenue, and Seasonal Fluctuations Nathan sets up a mock client consultation scenario with a hypothetical small budget. Matt educates him on how agencies scope business requirements into technical specs, agile sprints, and the necessity of reserving budget for post-launch iterations.12:13–14:51 · Guest teaching 3/10 Client Success Stories: Greentech Media and Associated Press Matt discusses notable client engagements including Greentech Media and the Associated Press. Nathan acknowledges the technical complexity of large-scale CMS architecture.14:52–17:50 · Guest teaching 2/10 The Famous Five Rapid-Fire Questions with Matt Weinberg During the Famous Five, Nathan teasingly reinterprets Matt's praise of Travis Kalanick as an endorsement of breaking laws, which Matt gently qualifies and redirects.1:13–3:39 · Guest disagreement 0/10 Introducing Matt Weinberg of Vector Media Group Nathan introduces Matt and inquires about the company's early evolution from a high school computer repair service to a modern digital agency. The tone is purely conversational and cooperative as Matt shares their background.3:39–7:54 · Guest disagreement 0/10 Revenue Streams and Ad Spend Management Model Nathan probes into the business model, performing quick mental math to calculate their monthly revenue from ad spend management based on percentage take rates. Matt confirms the numbers and elaborates on the split between web development and ad management.7:54–12:13 · Guest disagreement 1/10 Hourly Rates, Annual Revenue, and Seasonal Fluctuations Nathan sets up a mock client consultation scenario with a hypothetical small budget. Matt educates him on how agencies scope business requirements into technical specs, agile sprints, and the necessity of reserving budget for post-launch iterations.12:13–14:51 · Guest disagreement 0/10 Client Success Stories: Greentech Media and Associated Press Matt discusses notable client engagements including Greentech Media and the Associated Press. Nathan acknowledges the technical complexity of large-scale CMS architecture.14:52–17:50 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions with Matt Weinberg During the Famous Five, Nathan teasingly reinterprets Matt's praise of Travis Kalanick as an endorsement of breaking laws, which Matt gently qualifies and redirects.1:13–3:39 · Nathan pushing back 1/10 Introducing Matt Weinberg of Vector Media Group Nathan introduces Matt and inquires about the company's early evolution from a high school computer repair service to a modern digital agency. The tone is purely conversational and cooperative as Matt shares their background.3:39–7:54 · Nathan pushing back 1/10 Revenue Streams and Ad Spend Management Model Nathan probes into the business model, performing quick mental math to calculate their monthly revenue from ad spend management based on percentage take rates. Matt confirms the numbers and elaborates on the split between web development and ad management.7:54–12:13 · Nathan pushing back 2/10 Hourly Rates, Annual Revenue, and Seasonal Fluctuations Nathan sets up a mock client consultation scenario with a hypothetical small budget. Matt educates him on how agencies scope business requirements into technical specs, agile sprints, and the necessity of reserving budget for post-launch iterations.12:13–14:51 · Nathan pushing back 0/10 Client Success Stories: Greentech Media and Associated Press Matt discusses notable client engagements including Greentech Media and the Associated Press. Nathan acknowledges the technical complexity of large-scale CMS architecture.14:52–17:50 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions with Matt Weinberg During the Famous Five, Nathan teasingly reinterprets Matt's praise of Travis Kalanick as an endorsement of breaking laws, which Matt gently qualifies and redirects.

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

0:00 · Nathan 76.4% · guest 23.6%0:00 · Nathan 76.4% · guest 23.6%3:00 · Nathan 25.7% · guest 74.3%3:00 · Nathan 25.7% · guest 74.3%6:00 · Nathan 31.5% · guest 68.5%6:00 · Nathan 31.5% · guest 68.5%9:00 · Nathan 35.8% · guest 64.2%9:00 · Nathan 35.8% · guest 64.2%12:00 · Nathan 61.8% · guest 38.2%12:00 · Nathan 61.8% · guest 38.2%15:00 · Nathan 49.6% · guest 50.4%15:00 · Nathan 49.6% · guest 50.4%18:00 · Nathan 98.4% · guest 1.6%18:00 · Nathan 98.4% · guest 1.6%
Sharpest disagreement ▶ 16:00 Reframing the Uber CEO takeaway

When Nathan jokingly frames Matt's admiration of Travis Kalanick as willingness to break laws, Matt immediately clarifies that he does not endorse everything Kalanick does but admires strong-minded vision.

 Hardest push from Nathan ▶ 9:14 Pushback on holiday slowdowns

Nathan jokingly challenges the premise that startup clients slow down development work in November and December, insisting that startups ought to be hustling through holidays.

 Biggest teaching moment ▶ 11:39 The reality of post-launch product budgeting

Matt explains to Nathan why clients with small budgets must preserve capital for post-launch user feedback rather than spending their entire budget on initial buildout.

 Nathan holds their own ▶ 4:38 Rapid calculation of ad spend take rates

Nathan demonstrates commercial savvy by quickly calculating that Vector's 9-12% cut of roughly $10M-$15M in managed ad spend translates to $100k-$150k per month.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Matt Weinberg of Vector Media Group 3201 Nathan introduces Matt and inquires about the company's early evolution from a high school computer repair service to a modern digital agency. The tone is purely conversational and cooperative as Matt shares their background.
Revenue Streams and Ad Spend Management Model 6301 Nathan probes into the business model, performing quick mental math to calculate their monthly revenue from ad spend management based on percentage take rates. Matt confirms the numbers and elaborates on the split between web development and ad management.
Hourly Rates, Annual Revenue, and Seasonal Fluctuations 5512 Nathan sets up a mock client consultation scenario with a hypothetical small budget. Matt educates him on how agencies scope business requirements into technical specs, agile sprints, and the necessity of reserving budget for post-launch iterations.
Client Success Stories: Greentech Media and Associated Press 4300 Matt discusses notable client engagements including Greentech Media and the Associated Press. Nathan acknowledges the technical complexity of large-scale CMS architecture.
The Famous Five Rapid-Fire Questions with Matt Weinberg 3212 During the Famous Five, Nathan teasingly reinterprets Matt's praise of Travis Kalanick as an endorsement of breaking laws, which Matt gently qualifies and redirects.

Statements from this episode (7)

Disclosure
Weinberg: Vector Media Group charges 9% to 12% of ad spend
“It ranges between nine and 12% depending on the spend.”
Matt Weinberg Mar 30, 2016 ▶ 4:10
Assertion Not checkable as stated
Web development and design drive 70% of Vector Media Group's business
“That's actually, that, that part of our business is about 30% of our business. The rest of it is, the majority of the business is really the web development and the web design piece.”
Matt Weinberg Mar 30, 2016 ▶ 4:26
Disclosure
Weinberg: Vector Media Group's average retainer is 50 to 100 hours monthly
“Average retainer is between, I'd say, 50 and a hundred hours a month.”
Matt Weinberg Mar 30, 2016 ▶ 7:19
Disclosure
Weinberg: Vector Media Group charges around $180 per hour for development
“You know, our rate is around a 180 dollars an hour. So if you're buying a hundred hours, it's about 18,000 dollars a month.”
Matt Weinberg Mar 30, 2016 ▶ 8:04
Disclosure
Weinberg: The vast majority of Vector Media Group revenue is hourly based
“On development and on development, we sell by hours. On marketing, we really sell by percentage of spend or more of a retainer model. Design is kind of hourly based, but it's kind of retainer. It's a little bit of a mix, but yeah, I would say the vast majority…”
Matt Weinberg Mar 30, 2016 ▶ 8:20
Disclosure
Weinberg: Vector Media Group did about $6 million in revenue in 2015
“Yeah. So last year we did about six million dollars in revenue.”
Matt Weinberg Mar 30, 2016 ▶ 8:53
Insight
Weinberg: Clients underestimate post-launch changes and should reserve budget for feedback
“And I think a lot of times people underestimate how much their ideas change post-launch. You know, we always want to make sure the client leaves some of their budget for post-launch because as soon as you start getting real customers using it, they're going to…”
Matt Weinberg Mar 30, 2016 ▶ 11:53
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