Share
))
HBO and The Ringer's Bill Simmons hosts the most downloaded sports podcast of all time, with a rotating crew of celebrities, athletes, and media staples, as well as mainstays like Cousin Sal, Joe House, and a slew of other friends and family members who always happen to be suspiciously available.
…
continue reading
Manage episode 515806686 series 3644325
Content provided by Mike J Midgley. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike J Midgley or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.
Welcome back to our Revenue Architecture series on the Force & Friction Podcast, where we break down what really moves the needle in GTM, RevOps, AI, partnerships, and SaaS growth.
Today, we have an exceptionally special guest for a deep dive into the Mathematical Model and revenue architecture as a whole with Derek Sather.
What makes Derek's story compelling is his transformation from watching brilliant companies fail because revenue was treated like magic, not science, to becoming an MIT-educated systems thinker who co-created the framework that makes revenue predictable.
Derek's track record speaks for itself: helping companies scale from 25 million to a billion ARR, again and again, using mathematical precision instead of guesswork.
In our conversation, we explore why small changes create massive impacts while large investments yield minimal results, the counterintuitive nature of nonlinear systems, and how the Mathematical Model enables companies to engineer growth rather than hope for it.
Here are the core areas we discuss in today's episode:
1: From Linear Thinking Addiction to Systems Engineering
2: The Compound Multiplication Magic: Why 10% Becomes 100%
3: The One-Round Game vs. Infinite Game Dynamic
4: The Segmentation Imperative: Why Averages Kill Insights
5: Beauty in Simplicity: Why Complex Systems Need Simple Visuals
Final Thoughts
Derek leaves us with a powerful insight about the resource allocation mistake that kills growth potential.
"Most software organizations, from a go-to-market standpoint, significantly overfund acquisition, and significantly underfund expansion... keeping your existing customer and expanding is so much more efficient. Of course it is, but let's actually get the right resources there... we really want to look at recurring revenue equals recurring impact."
His final message emphasizes that mathematical precision isn't just about optimization—it's about understanding where to invest for maximum return, recognizing that the infinite game of retention and expansion often delivers better ROI than the one-round game of acquisition.
The Mathematical Model transforms revenue from guesswork into engineering, from hoping for growth to systematically creating it. As Derek demonstrates, when you understand the nonlinear relationships that govern recurring revenue businesses, you can achieve exponential results through marginal gains rather than massive investments.
The future belongs to leaders who can think in systems, optimize for compound effects, and engineer growth with mathematical precision rather than linear intuition.
Learn more at www.forceandfrictionpodcast.com
78 episodes
