Insight certainty 4/5 debate potential 2/5

Mader: Blended Averages for CAC and LTV Lead to Destructive Spending

Mark Mader · EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader · Apr 12, 2017 · at 15:36

Mark Mader, CEO of Smartsheet, discusses unit economics and acquisition modeling during an interview with Nathan Latka.

0:00 / 0:11exact quote · 11.5s
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“I see too many businesses look at averages and averages can either completely turn you upside down or completely leave you under investing. So we never look at the average. We always look at the discreet item markets.”

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More from Mark Mader

Assertion Not checkable as stated
Half of Smartsheet Expansion Revenue Occurs Without Human Sales Reps
“There's also half of our expansion that happens without a human being being involved.”
Mark Mader Apr 12, 2017 ▶ 14:07 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
Assertion Supported
Smartsheet Serves 65,000 Paying Brands Averaging $1,000 in ARR
“We serve about 65,000 distinct brands today on a paid basis. On average, each one of those, Nathan, provide about a thousand bucks a year ARR, but the diversity is huge. It goes all the way from 200 bucks a year to 1.65 million a year.”
Mark Mader Apr 12, 2017 ▶ 3:24 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
Assertion Supported
Smartsheet Is an $80M ARR Business Growing Over 60% Annually
“We're about an eighty million dollar business today on a deal basis, and we're a super grower in the last, our category over the last five years is north of, well north of 60% a year.”
Mark Mader Apr 12, 2017 ▶ 4:17 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
Prediction Held up
Mader Predicts Smartsheet Will Hit $100M ARR by Mid-2017
“So we're going to hit triple digit ARR here come mid year in 2017.”
Mark Mader Apr 12, 2017 ▶ 5:36 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
Insight
Mader: Businesses Must Assign Fully Loaded CAC to SEO Content Campaigns
“Very often people say, is there, you can only assign CAC to something on which you're spending money, like an advertising campaign, but you should also do the same thing on your SEO campaigns. Who's actually writing the content.”
Mark Mader Apr 12, 2017 ▶ 16:45 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
Assertion Not checkable as stated
60% of Smartsheet's New ARR Comes From Unassisted Sales
“Customers, 60% of our new AR that comes in is unassisted in nature. That means a human being is not speaking with the prospect.”
Mark Mader Apr 12, 2017 ▶ 6:58 EP 627: SmartSheet $70M Raised, $80M ARR, Helping 65,000 Customers with Project Management with CEO Mark Mader
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