If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. We continue our coverage of fat startups, how they get funded, built, and scaled in this series with Adaptive Insights. Lean startups get a lot of attention now, but I have been covering fat startups as well with stories like Adaptive Insights. Sramana: Rob, let’s start by
Sramana Mitra: Can you talk about that? John Wallace: The problem now has a name. It’s not an ideal name but it has a name. It’s called marketing attribution. It’s looking at the effectiveness of marketing spend. The field closest to that would be approaches of this in Statistics in the past 20 years –
Sramana Mitra: You focused on getting to a business model. Part of the problem at the Valley right now is that people just go and build things without figuring out a business model. As a result, they have huge burn rates and no monetization model. That doesn’t create a sustainable company. That whole model is
Sramana Mitra: How much did you do in terms of revenues in the first couple of years? John Wallace: It probably took us four years to get to a million dollars. Sramana Mitra: How many people were involved? John Wallace: There were about four people. My original hypothesis was that there would be a lot
Andrew Grauer: Then, moving on to the other question on the engagement level, engagement is quite high. I think the difference between other online education sites like Coursera and edX is that their users are looking just to learn for learning sake. Our supplemental resources are really focused on helping students who are already enrolled
Sramana: Your policy of being selective with distributors makes perfect sense. How many relationships do you have with distributors in order to allow you to serve the entire car parts market? Michael Dash: I have one distributor who covers 99% of my aftermarket parts requests. For my body parts, I have one distributor that I
Sramana Mitra: You were kind of an applications engineer? John Wallace: It was a great opportunity. Sramana Mitra: That brings us to 2003? John Wallace: Yes. In 2003, I started a firm doing analytic consulting. I thought that I would be more impartial to what software we use to solve a problem and be more focused on
Sramana Mitra: From the end user’s perspective, is the end user using your platform largely in a web self-service mode? What percentage of that user uses self-service versus a tutor assisted usage? Andrew Grauer: It’s probably going to be something like 70% to 80% self-service. Sramana Mitra: I’m trying to gauge how big the tutoring