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SaaS Interviews with CEOs, Startups, Founders

0 to $20k MRR in 4 Days? How This SaaS Startup Did It.

12 Aug 2021

Transcription

Chapter 1: What is the background of Sales for Life and Pipeline Signals?

0.031 - 25.941 Nathan Latka

last year, but was total revenue across the whole business. 2.2. You are listening to conversations with Nathan Latka. And if you're hearing this, it means you're not currently on our subscriber feed to subscribe, go to get latka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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26.742 - 47.51 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public. We got to grow faster. Minimum is 100% over the past several years. or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise.

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47.73 - 83.717 Nathan Latka

Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion. We want to see a real pervasive data culture, and then the rest flows behind that. If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. No questions asked.

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85.165 - 98.903 Nathan Latka

Hey folks, special guest today, Jamie Shanks. He's the CEO of Sales for Life, a learning and a service company. They're pioneering social selling training program for mid-market and enterprise companies. They've trained over 250,000 sales reps in dozens of industries.

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98.923 - 113.181 Nathan Latka

They recently founded Pipeline Signals, a BPAS company that mines signal intelligence from LinkedIn for any accounts in our customer's total addressable market or for sales opportunities versus risks. Jamie, you ready to take us to the top?

113.201 - 114.042 Jamie Shanks

Fantastic. Thanks for the invite.

114.224 - 123.674 Nathan Latka

This sounds like you enjoyed training $250,000 salespeople on a one-time pay-for-the-class module. And then you're like, you know what? I sort of like SaaS better. Let's launch Pipeline or Signals.

124.955 - 146.759 Jamie Shanks

Yeah. So, I mean, over the years, Sales for Life was a one-time project-based revenue business. And we've tried our darndest over the years. The lifetime, customer lifetime value would be on an average of about two and a half years now. ARPU 80,000. But yeah, it started out project-based revenue and we've done our darndest to make it stretch it out.

146.959 - 159.252 Jamie Shanks

But what was happening as a training business was people were asking, can you just do for me? And so this managed service of Pipeline Signals was born to be able to mine that intelligence on their behalf.

Chapter 2: How did Jamie Shanks transition from training to SaaS?

367.289 - 386.181 Jamie Shanks

So the live part of our service offering was 10% of revenue, was speaking engagements, sales kickoffs, and quarterly business reviews. But that was 80 flights a year for five years in a row. Take that time back. My business partner, Amar, and I looked at this holistically and said, well, we have other services businesses we want to create.

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386.783 - 401.052 Jamie Shanks

The managed service side has greater scalability and the total adjustable market is endless. Let's develop that because our customer sentiment is we can't turn this tap off once we start.

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403.732 - 409.683 Nathan Latka

Interesting. Okay. So how many people today are paying for Pipeline Signals and what's your pricing model there?

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410.204 - 426.212 Jamie Shanks

Yeah. So Pipeline Signals right now has eight customers active. MRR ranges between $2,000 and $4,000. The average is $2,500. That's what they're paying per month on average? Per month, yes. And it's a payment gateway, pay-by-credit card.

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426.192 - 445.609 Jamie Shanks

And the idea is that the price fluctuates based on two variables, which is the volume of accounts around the world they'd like us to monitor, existing customers, perspective, and white space. And then the other leverage point would be a time horizon of the report. Do you want it daily, weekly, or monthly?

446.049 - 454.917 Jamie Shanks

So it's kind of like microtransactional and stacking that MRR per customer over hopefully a lifetime.

454.897 - 460.562 Nathan Latka

Yeah. I mean, eight customers, $2500 a month. You're doing, what, $20,000 a month in revenue there and just launched it this year.

461.142 - 462.844 Jamie Shanks

We launched it actually a couple of days ago.

463.384 - 467.428 Nathan Latka

A couple of days ago. Okay. So where did you get those first eight customers from? Were they service folks?

Chapter 3: What revenue did Sales for Life generate in its early years?

833.176 - 833.777 Nathan Latka

What do you do with it?

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834.28 - 849.079 Jamie Shanks

Yeah. So we have been, listen, Amar and I do well, but we plow a lot of it back into product development. We plow it back into marketing. So most of it is getting reinvested.

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849.72 - 851.683 Nathan Latka

Okay. And what's the team size today? How many people?

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851.703 - 867.219 Jamie Shanks

20 teammates. Our teammates are all globally dispersed. We do not have teammates sitting in North America as an example, but we have teammates all around the world. And 20 teammates is kind of a shared services model between two businesses.

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867.239 - 868.04 Nathan Latka

How many engineers?

869.263 - 870.645 Jamie Shanks

Engineers, two.

870.665 - 876.055 Nathan Latka

Two. Okay, got it. Interesting. Very cool. A heck of a story here. Let's wrap up with the famous five. Number one, favorite book?

876.917 - 883.028 Jamie Shanks

Favorite book right now is called The Boutique by Greg Alexander. If you're in ProServe, it's like a must.

883.048 - 885.212 Nathan Latka

Number two, is there a founder you're following or studying?

Chapter 4: How did content marketing contribute to Sales for Life's growth?

903.05 - 905.172 Nathan Latka

Number four, how many hours of sleep do you get every night, Jamie?

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906.373 - 913.36 Jamie Shanks

Seven and a half. I've been tracking my sleep for three years and I'm pretty religious about understanding my sleep.

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913.475 - 917.059 Nathan Latka

Number four, our last question here, what's your situation? Married, single kiddos?

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917.839 - 920.843 Jamie Shanks

Two kiddos, eight and seven and married.

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921.443 - 922.284 Nathan Latka

Married. And how old are you?

923.085 - 923.445 Jamie Shanks

I'm 42.

924.206 - 926.408 Nathan Latka

Last question. Something you wish you knew when you were 20.

927.609 - 937.98 Jamie Shanks

Wish I knew when I was 20 is don't be afraid to fail and don't try to please everybody. Like do things for yourself, not for other people.

938.213 - 955.34 Nathan Latka

Guys, there you have it. Sales for Life launched in 2013 with $379,000 in total revenue that year. They've now scaled up to 2.2 million last year on the agency side and then launched an internal SaaS tool. It's called Pipeline Signals. It's already doing $20,000 a month in revenue. Should grow to about, call it $30,000, $40,000 a month in revenue by December.

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