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Randy Wootton

๐Ÿ‘ค Speaker
185 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

What I would say is a lot of our contracts are TCV.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

So they're multiple year deals because what you find with these large enterprises is they run a robust RFP process and they're looking for partners.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

And so if you make it all the way through and you get to the end, they often say, great, let's do a three year deal.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

They're also looking for preferred pricing if they make the commitment and that such.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

But it's very, very different than like a mid mark high transaction sale.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

I won't give you the exact number.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

I would say all of, or I'll tell you this, 95% of our deals are paid up front.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

A large percentage of them are paid annually on the contract date.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

Some are paid up front fully.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

So what's neat about this business versus when I was at Rocket Fuel is

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

where we were having to buy inventory, chase agencies to get paid.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

They had to go chase advertisers to pay them.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

We were basically playing a bank to the agencies.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

In the pure SaaS model, where you get paid up front, the more you grow, the more cash you have.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

It's a wonderful working capital dynamic.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

And you also reduce churn.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

You also reduce overall cost of customer acquisition costs.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

So, you know, bigger deals, longer terms.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

I will always go for those.

SaaS Interviews with CEOs, Startups, Founders
1396 Percolate Flirts with $40m in ARR, 600 Brands Using as Their Ultimate Content Machine

Great question.