Chapter 1: How was KarmaCRM built as a niche CRM for professional speakers?
Guys, my new book, How to Be a Capitalist Without Any Capital, just hit the Wall Street Journal bestseller list. It's ranking extremely high on Kindle and Audible. And I want to thank you guys for grabbing it. If you haven't bought it yet, here's what James Y. said in an Amazon review on March 8th. He said, literally, a step-by-step blueprint for conquering the world and building your own empire.
Chapter 2: What factors contribute to KarmaCRM's $30k in monthly recurring revenue?
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Chapter 3: How did KarmaCRM scale with limited funding?
He then says, pro tip, stock up on highlighters while you're adding this to your Amazon cart, you'll be using them. This book should be required reading for every entrepreneur, startup or founder, business person, and human. Seriously, Nathan isn't in a kind of class that cuts through all the bull crap, he used a different word, to show you what you need to do and how to do it.
If success came with an instruction manual, this book would be it.
Chapter 4: What strategies did KarmaCRM use to acquire its first customers?
We'll be stocking up and handing these out as Christmas gifts to all my friends and colleagues. If I could give this book a six-star review, I would. From James, James, thank you. All you that listen to the podcast, thank you so much. SaaS founders are loving the book.
Chapter 5: What is the customer acquisition cost and payback period for KarmaCRM?
Go grab an Audible version right now at capitalistbook.com. We found it in 2011. Karma CRM, it's a CRM for speakers. They're doing about 30 grand a month in revenue. That's up from 20 grand a month about a year ago.
Chapter 6: How does KarmaCRM maintain low churn rates among its customers?
They raised $100,000, currently serving 600 customers, paying about 50 bucks a month. Again, again, mainly speakers. Paying 300 bucks to acquire that customer. Lifetime value is about 1,000 bucks. They stay with them for about 20 months and they've got about 5% logo churn per month.
Chapter 7: What future growth strategies is KarmaCRM considering?
A team of four people based in, spread out really, in different remote locations, looking at and investing in many other projects as well, like e-commerce. This is the top entrepreneurs podcast where founders share how they started their companies and got filthy rich or crash and burn.
Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines. We went from a couple of hundred thousand dollars to 2.7 million. I had no money when I started the company.
Chapter 8: How does the guest view potential acquisition offers for KarmaCRM?
It was $160 million, which is the size of many IPOs. We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc. are calling us the fastest growing business show on iTunes. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is JP.
He was thrown into business at 18, taking over his father's furniture company and growing it from 100 grand over a million all before 21 years old. He's been in deep code since he was 15 and has self-proclaimed serial squirrel chaser. He's since founded several SaaS companies. We're going to jump into his current one, Karma CRM today. JP, are you ready to take us to the top? Absolutely.
All right. Does Karma CRM do exactly what it sounds like you're playing in the CRM space? That is true. Yep. And pure play SaaS model? Pure play SaaS model. Yeah. We're currently focusing on professional speakers, so more of a niche CRM. Oh, I like that. Still all the way up. And what is the, before we kind of dive deeper there into that niche, give me a general sense.
What's the average customer paying you per month for the software? Probably about 50 to a hundred bucks a month. Okay. And how did you decide on speakers? I mean, obviously I think in, in niche kind of focuses specific in this space. It's so fragmented, but why speakers? So we found out that we had a pretty healthy segment of our customer base that were speakers.
And we kind of realized that the general CRM market is so saturated that it's hard to kind of compete in that space. So it was a lot easier for us to pick a niche, serve them really well. It puts a face to a customer much more than quote unquote small business. And what have you, I want to put this on a timeline real quick. So when did you launch the company? What year?
So the company was launched seven years ago, 2011. Okay. And what have you scaled to today in terms of total customers? So we are over 600 customers. Okay, that's great. So I mean, can I take that 600 times a 50 to get your, you know, general MRR per month today is about what 30 grand? Yeah. And what does growth look like?
So if I go back a year in September of 2017, what were you doing in that month? So we've grown about, I guess, 50% year over year over the past couple of years. That's pretty good. So maybe 20 grand a month about a year ago, now up to 30 grand a month? Yep. Are you doing this all bootstraps? We took a small friends and family round of funding, but generally bootstrapped, yeah. Okay.
What are you talking, like 100 grand? Yeah. Okay. Okay, very good. And what it sounds like you've launched several SaaS companies. I mean, why decide a couple years ago to go into the CRM space? It's extremely crowded, fragmented, many would say being commoditized, very difficult challenge you decided to take on. Yeah, so it definitely was a challenge.
I went into it initially seven years ago, because I co founded a web development firm, and there was no good CRMs out there. So I tried to get my sales guy to use Salesforce, Pipedrive, Pipeline Deals, a couple other ones at the time. And he kept going back to Spreadsheet. So as a developer, I'm like, I'm going to build this simple tool. You're going to use it.
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