http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png 0 0 Daryl Lu http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png Daryl Lu2018-10-26 14:48:002020-12-09 10:10:38VLG Marketing Acquires Atlanta-Based Burner Rocket
http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png 0 0 Daryl Lu http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png Daryl Lu2018-09-05 11:56:002020-12-09 10:10:39Entrepreneurship Is Full of Hard Work that Is Rarely Sought After
I posted recently about the importance to periodically check how a current role/ position fits into the greater journey – “Before Making Moves Based On Today’s Bad, Chart How All The Dots Align to A Path”. I took this to heart recently by reviewing my resume and updating my skills and experience. It’s made me aware of my career progression and my upcoming path as I head into my mid-30s. In short: optically, I’ve been rather stagnant.
Building a startup is incredibly hard work. Many startups do not come close to the type of success that is read about in the news or even the local startup digest. Entrepreneurship, though intrinsically rewarding, is not well-received professionally.
As I’ve had the great opportunities to lead sales at Body Boss Fitness, SalesWise, and SalesWise’s new product/ brand Burner Rocket, they’ve all been tough experiences to get through. Starting from virtually nothing and fighting to get scraps of the first 10 customers and then the next is rarely seen from the outside. The mind soaks up more information than what any “normal corporate” job may provide. However, it’s, in some ways, specialized. The bruises and cuts that I have felt by leading the charge for what a sales process may look like, what are the pieces of collateral that will help sell, how do we support our customers when we don’t even know the full metrics of what is working and what is not… those lessons are not always visible to the outside world. And yet, I know the incredible value that has been learned. I know the pains and the difficulties to get to where we are. I have good hypotheses for why we may not have grown at a faster clip, but from the outside, there’s little stock. Growing from 0-10 may not be as impressive as being a leader who hit the $2MM ARR quota from last year’s $1.5MM. Should that be?
Again, periodically looking through the portfolios of seemingly little accomplishments for early-stage opportunities, I can sense there’s a strain. There’s a pull and a fight between the desire to hop into a role where the hard work has mostly been done. Perhaps, there’s a need for an optimizer or a player to just “grow more”. It’s a struggle – to be a part of something so early that the chances of success are low. The challenges and rewards are greater. Or, do I take the easier route by following the path others have already trotted on before. In that way, perhaps I can have the requisite bullet points for others to note and say, “yes, he’s had that experience of hitting XX of quota”.
Being an entrepreneur and taking a real fight to creating something special isn’t always lauded. It’s rarely what folks are really looking for. But they’re the opportunities I’m looking for. It looks like I’m still on the right path.
http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png 0 0 Daryl Lu http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png Daryl Lu2018-03-28 11:41:002020-12-09 10:10:45Which came first – CAC or ASP?
Got a little chicken or the egg situation here. Except in this case, we’re talking about CAC or ASP (cost of acquisition vs. average selling price). More context…
My company’s recent little pivot is called Burner Rocket. We help B2B companies break through the noise to reach key decision makers. Our secret sauce? We send burner phones. Yes, a little like that scene from The Matrix when Neo gets a phone and gets an immediate call from Morpheus.
It’s crazy effective(~65.5% turn-ons and 75.3% conversation rate)
… and fun (you can’t help but feed off the fun energy from “folks recording personalized videos” to “recipients turning on the phones”).
This isn’t the cheap direct mail piece like coffee mugs or keychains. Sometimes, you gotta go big to break through the noise these days.
When I pitched a local entrepreneur recently, he immediately said, “wow, your customers must have a high ASP”. I thought he would, for sure, go with “wow, your customers must have a high CAC”. It’s a chicken or egg situation where you could ask which came first?
In the world of ASP vs. CAC, they both influence each other. My focus on CAC is to isolate the costand difficulty of acquiring a customer. I want to focus on the customer, and her buying cycle. The burner phones really cut out a ton of time, especially, when it comes to breaking through to net-new leads. They also get conversations because of the novelty (prospects may now associate the brand and product to be novel).
ASP should take into account CAC, too. However, ASP does not cover the longer-term revenue that could come from a customer – lifetime value (LTV). ASP may not actually cover cost of servicing a customer. Instead, the lifetime of the customer should take service into account.
Our new business may not influence ASP, or LTV for that matter. Instead, our new business can accelerate the pipeline via the top-of-funnel conversions (cold to conversations, to demos) and likely the mid-funnel with stalled opportunities. Thus, our phones can materially impact CAC.
Then again, I focus on all three metrics with a priority on both CAC and LTV before ASP. Prime B2B companies who have high CAC and LTV are good candidates + our other ideal customer profile (ICP) facets.
What are your thoughts? How are you considering your go-to-market strategy?