Madison Wickham, founder and CEO of Grandex, explains the early unit economics and ad revenue of Total Frat Move four months after its launch in 2010.
0:00 / 0:17exact quote · 17.6s
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“And we hit a point where we had, I want to say, I think like 2000 dollars a month coming in through ad revenue. But I mean, our expenses were basically non-existent. We had like a 150 dollar a year hosting package.”
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More from Madison Wickham
PredictionNot checkable as stated
Wickham in 2016: Instagram's algorithmic feed will destroy it for marketers
“And I guarantee you the right, I mean, the right is on the wall. Like it's gonna, it's going to, it's gonna just plummet as a platform for marketers.”
Madison WickhamJun 14, 2016▶ 26:44Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
Insight
Pre-revenue startups can invent valuations; revenue creates a strict baseline
“As soon as you start generating revenue, then it gives investors a metric to use as a basis for valuation prior to generating revenue. You can just totally pull numbers out of your ass”
Madison WickhamJun 14, 2016▶ 17:12Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
Insight
Wickham: Merchandise offers more control for niche media than digital ads
“And that really worked well. And it was something that we understood and felt like we had a lot more control over than Battling the extremely competitive and complex world of digital advertising. So we really gravitated towards merchandise and e-commerce and m…”
Madison WickhamJun 14, 2016▶ 5:41Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
AssertionNot checkable as stated
Wickham: Grandex raised its angel round at a $20M pre-money valuation
“It was, we raised it at a twenty million dollar pre-money valuation.”
Madison WickhamJun 14, 2016▶ 16:47Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
AssertionNot checkable as stated
Wickham: Grandex ran profitably for its first three and a half years
“For the first three and a half years, we ran the business profitably.”
Madison WickhamJun 14, 2016▶ 13:20Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
AssertionPartly supported
Wickham: Grandex raised $2.3M from angel investors over 12 months
“We ended up raising about 2.3 million over, it was a long drawn out process. It was kind of like running around, like closing people over, over like maybe 12, 12 months.”
Madison WickhamJun 14, 2016▶ 16:22Frat Guy Takes 2K a Month Side Project to 10Mil a Year Media Company, EP 286: Madison Wickham
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