Great Sunday Video to Watch After Billions.
“Right now money is cheap, when I said that, money was expensive…the way we ran our company is not the way everybody does it, and it’s not what I call the ‘West Coast offense’. WC offense is you spend and spend until there’s not 1% of growth left.
That means you’ve got to raise money and raise money and keep spending for growth. And the WC offense has worked extraordinarily well for lots of companies out there. It’s worked extremely well for lots of investors. It doesn’t always work well for the entrepreneurs.”
“The founder of Pardot sold his company to Exact Target. The founder of Pardot made like 10X more money than the founder’s of Marketo will ever make, because he followed a different strategy. He said, ‘I’m not going to raise a bunch of money, I’m going to build a nice company, and I’m going to sell it for a $100 million, and when he sold it for $100 million he took home like $90 million.”
Payne paused as the audience took that in. “When I say run the ‘East Coast offence’, what I would say is do what’s right for you, if you have growth, (he shouts out to TrackMaven), you can burn money, but if your growth rate is not that high, be careful, because that money comes out of your, and your employees, and your friends and family who have invested in you.”