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SaaS Interviews with CEOs, Startups, Founders

1443 Bootstrapped and Making Pop-ups Sexier, Passes $1.4m in ARR

07 Jul 2019

Transcription

Chapter 1: What insights does the guest share about their new book?

0.031 - 21.3 Nathan Latka

If you guys love the podcast, you wanna get the audible version of my new book, How to Be a Capitalist Without Any Capital at capitalistbook.com. A user named just J on Amazon said this in a review, a four hour work week for 2019. He goes on to say, I bought this book because I read somewhere that it was like a four hour work week of 2019 and it absolutely delivered.

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21.6 - 37.461 Nathan Latka

The book delivered on both big ideas and has specific actionable templates, including unredacted and minimally redacted emails. This book is not chock full of self-promotion or useless platitudes, but it's broken down into four key rules explained in solid detail and with specific and often amusing anecdotes.

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37.901 - 54.642 Nathan Latka

Reading this really got my wheels and my head turning of how to be resourceful, which many say is the ultimate trait of a successful entrepreneur. My favorite of the four rules is blank. You have to go read the review to find out. But guys, thanks for supporting me on the podcast. I hope you go grab the book on Audible today at capitalistbook.com.

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55.6 - 74.646 Nathan Latka

Built a great team of about 24, 25 people based in Denmark, helping pop-ups become sexier. They've passed 1,200 paying customers, paying $100 a month, so $120,000 per month in revenue, up about 30% to 40% year over year when they were doing about $80,000 per month again last year. Bootstrapped, which I love, 1.3% revenue churn per month. That's on a net basis.

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74.666 - 97.2 Nathan Latka

When they do spend money to acquire customers, they spend about $700 to acquire, so called on average a seven-month payback period. Again, team of 24 based in Denmark and other remote locations, launched in 2020. This is the Top Entrepreneurs Podcast, where founders share how they started their companies and got filthy rich or crash and burn.

98.463 - 110.542 Nathan Latka

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.

110.783 - 112.465 Mogens Muller

I had no money when I started the company.

112.786 - 115.79 Unknown

It was $160 million, which is the size of many IPOs.

116.251 - 139.19 Nathan Latka

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 Mogens Muller. He's the CEO and co-founder of a company called Sleeknote.

Chapter 2: How did Sleeknote evolve to make pop-ups sexier?

232.154 - 242.358 Nathan Latka

Okay, so 2014. And then fast forward to today, how many customers have you scaled to? 1,200. 1,200, that's great. And where did you, I mean, walk me through the growth there. Where did you find your first 10 customers?

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243.781 - 266.083 Mogens Muller

Well, actually, we, yeah, that's a bit of a story, but I can do it very short. First of all, for me, it was very important to begin with that we got some proof of concept so that we figure out if people actually wanted to buy what we were developing. So I started selling this to the first 30 customers without having a product or anything actually to sell other than an idea.

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266.103 - 279.957 Mogens Muller

So we got a validation for those 30 customers that they wanted this thing that I was talking about. And then we began to create it. And I also told them that they were about to pay for it. We could not just develop it for them to use it for free.

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280.426 - 305.717 Mogens Muller

So we had them paying something like, I think, $30 or $40 per month for a completely hard-coded solution with a very, very simple message and very simple. They could not change anything. There weren't any system or anything like that. So from there, we got the first beta testers. And from those beta testers, we made a lot of business cases, stuff that we promoted on our blog.

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306.298 - 327.291 Mogens Muller

And then when we launched, when we went into public beta, we got around 200 customers in the first couple of months. From there, we began to become like a real company. Then we began to have segmented pricing, depending on how big a customer or how big a website it was. And then it has been like,

327.71 - 347.057 Mogens Muller

bootstrapped growth, pretty, not not hyper growth, but but steady, good growth around 30 40% per year. And yeah, we are a little startup from Denmark bootstrap, but but are growing pretty, pretty good. And and, you know, loving what we do. And it's going good so far.

347.318 - 362.709 Nathan Latka

And 1200 customers at the price point, the average price point you said earlier of 100 bucks, that means you're doing about 120 grand per month right now. Yeah, close to. Okay. And if you're growing kind of 30% year over year, that means you were doing what about 80 grand per month a year ago? Yeah, something like that. Something like that.

363.691 - 369.242 Nathan Latka

Where's most of the growth coming from new customers or current customers that start on a cheap plan and upgrade themselves?

370.37 - 389.767 Mogens Muller

Yeah, it's a combination, but I think 70% of the growth is coming from new customers and 30% from existing. So we are working quite a lot on upgrading the customers that we already have. Normally when they got more visitors onto the website, but most of it is from new customers.

Chapter 3: What strategies contributed to Sleeknote's revenue growth?

436.339 - 437.862 Nathan Latka

As you add them, what's it costing you?

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438.322 - 454.868 Mogens Muller

That's very hard to say because it's very different depending from where they're coming. But this customer came from our content marketing. So we have a blog that we update a few times a week. got a podcast, got a YouTube channel. But so it's generally, it's content marketing.

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455.129 - 458.434 Nathan Latka

Okay, but so obviously you can still calculate CAC with your content marketing team.

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458.454 - 475.84 Mogens Muller

So what's your team size today and how many of them are content? We got a customer acquisition cost, but it's just, you know, it's very, very different from customer to customer. But in general, we got right now a customer acquisition cost at I think around $700. Okay, got it.

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475.88 - 478.845 Nathan Latka

And if they're paying you a hundred bucks per month, that puts your payback at what, seven months?

479.534 - 504.147 Mogens Muller

Yeah. Something like that. Seven, seven, eight months. Again, sometimes a customer like, like the one that I just mentioned, you know, the, the payback for them was like one day, uh, because they, they pay a lot more than, than, than a hundred dollars per month. Uh, so, so, so for very small customers, it's around 10, 11 months for big customers. It's like days or a month or something like that.

504.688 - 508.332 Nathan Latka

When you do spend 700 bucks to acquire the customer, where are you typically spending that money?

508.812 - 511.495 Mogens Muller

Um, typically we are spending it on Facebook and AdWords.

512.116 - 512.376 Nathan Latka

Okay.

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