Dickerson: Upfront front-end sales reduce net CAC to effectively zero
Todd Dickerson · 950 How Clickfunnels Grew From $14m to $60m in ARR in 18 Months · Mar 1, 2018 · at 15:14
Todd Dickerson, co-founder of ClickFunnels, explains to Nathan Latka why the company does not track conventional cash payback periods.
0:00 / 0:20exact quote · 20.8s
720p mp4 · rendered on demand · StarZero watermark
“Our all-in cost to acquire customers is about a 130 dollars at this point. But like Russell said, we don't really even look at it that way because that, that upfront media spin that last month was about a 130. So that upfront media spin that was really paid back to us immediately through these front end one-time products that are being sold. So we're acquiring the ClickFunnels customers, but really the upfront net is effectively zero.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Todd Dickerson
Dickerson: ClickFunnels runs with 15 engineers and 80 support staff
“We're only about 15 guys on the engineering team. We have a huge support team at this point. Probably about 80 people.”
Dickerson: ClickFunnels sustains roughly 10% monthly churn
“Our overall churn is about 10%, which is, I know that sounds high.”
Dickerson: ClickFunnels generates over $1M monthly from viral footer badges
“I know that at this point, over a million dollars a month comes in just from that badge.”
Dickerson: ClickFunnels generates $60M ARR purely from direct software subscriptions
“Right at it. And that doesn't include a lot of the one-off sales. We do a lot of coaching programs and whatnot on the back end as well. But when it comes to just directly from the software, yeah.”
Dickerson: ClickFunnels sees almost zero churn from customers past one year
“From about a year on, we have almost no churn. So once customers are actually using us and actually having success with us, it ends up being very low, but upfront, that's the initial part that we've been focusing on and working really hard on.”
Dickerson: External investments are treated as insurance against economic downturns
“I view the business as our, ours, our green fund, right? Like that's what we're going to do under best case scenario. And when it comes to investing and pulling money out, that's more of a insurance policy kind of thing. So any investments that we make in that…”