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SaaS Interviews with CEOs, Startups, Founders

1450 20k Customers and $1m in ARR Event Management Company Started as Wife Project

14 Jul 2019

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 20.78 Nathan Latka

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.

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20.86 - 35.342 Nathan Latka

Five stars. It's a verified purchase. He goes on to say, if you like doing things the hard way, don't read this book. for everyone else who appreciates someone showing you what to do and why it works step by step so you can rinse and repeat and accomplish the same results. Read this book now in all caps.

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35.862 - 52.127 Nathan Latka

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.

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52.507 - 71.635 Nathan Latka

If success came with an instruction manual, this book would be it. 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. Go grab an Audible version right now at capitalistbook.com.

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72.931 - 89.455 Nathan Latka

Launched this little Eventbrite, sorry, this Eventbrite competitor back in 2009 for his wife as she was doing like her first little scrapbooking events. He then added it to the WordPress plugin site. Before you know it, he's getting a bunch of feature requests. 2011, doing about 20 grand a month. Quit his full-time job and has now scaled it to about

89.435 - 106.101 Nathan Latka

to about 80 grand per month in revenue, 20,000 paying customers, paying on average four bucks a month. They churn about 30% of their customers' return or revenue per year. So working on bringing that down. He's also working on growth through things like CAC, sorry, through things like paid spend and also some writing and content initiatives.

106.882 - 132.176 Nathan Latka

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.

132.497 - 156.81 Nathan Latka

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 Seth Schultz.

156.871 - 178.038 Nathan Latka

He lives in southern Utah, where he's been hardwired to the web development community since 2001. In 2009, he launched his first WordPress plugin. Then in 2011, he quit his full-time job to focus on building a business around the plugin called Event Espresso. which now powers over 60,000 ticketing websites. Seth, are you ready to take us to the top? Yes. All right. Tell us about this thing.

Chapter 2: What inspired Seth to create a WordPress plugin for event management?

287.511 - 293.858 Nathan Latka

Yeah. And both of those each year, you'll, you'll kind of, you know, you'll keep about 70% of that. You'll turn about 30%. Is that right?

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294.259 - 295.08 Seth Schultz

Right. Right.

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295.1 - 299.385 Nathan Latka

That's great. So, so, and what does that equate to in terms of how many customers you have paying today?

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299.425 - 307.994 Seth Schultz

Um, let's see, we have about around, I think 20,000 paying customers, 20,000 paying customers.

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308.114 - 312.559 Nathan Latka

That's amazing. So 20,000 divided into 80,000, they're each paying what about four bucks a month?

312.91 - 313.832 Seth Schultz

Yeah, something like that.

314.753 - 317.398 Nathan Latka

Okay. And what are they getting for that? That feels really cheap.

318.64 - 357.242 Seth Schultz

So they're getting standalone software where they can sell tickets to any type of event, say a conference, a concert. And they're basically in control of all their data. with our software platforms. And they're bypassing ticketing fees, such as Eventbrite and Cvent and those types of platforms. They charge per ticket, so $1 to $2 per ticket. With our platform, customers are bypassing that.

357.842 - 358.543 Seth Schultz

So that's...

Chapter 3: How does Seth manage customer churn and retention?

358.962 - 365.954 Seth Schultz

our customers are basically paying, paying us to keep the, keep the platform going since it's a, since it's an open source model.

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366.595 - 380.167 Nathan Latka

So did you have, sorry, I don't mean to cut you off, but did you have people that you signed up early on that paid way? Like, cause right now on your website, your cheapest plan for one website is about 80 bucks, I think. Uh, and I think is that that's for the year. Yes.

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Chapter 4: What strategies is Seth using to grow his customer base?

380.207 - 389.558 Nathan Latka

That's for a year. Yeah. So, but divide 80, obviously by 12 and, and obviously that's higher than four bucks a month. So did you have people early on paying you way less and that's what the average is for today?

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389.578 - 413.265 Seth Schultz

Yeah. So, so we had people paying, so we have a, we have a freemium model. We're based on a freemium model. We have a free software that we, that people can use and they, they upgrade to the premium model. Um, and so when we first started, we were only charging like $50 for, for like a lifetime. Um, uh, membership. And then over the years we found that that model didn't work out.

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413.285 - 423.117 Seth Schultz

So we also started charging, um, a yearly month by yearly fee. And so, um, I think we started off at like $60 or something like that per year.

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423.838 - 431.087 Nathan Latka

Sorry. You have a bunch in that 20,000 that may have paid that one time fee early on. So today it's not contributing to your 80 grand a month.

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432.068 - 432.349 Seth Schultz

Yeah.

432.569 - 435.292 Nathan Latka

Yeah. Got it. How, how many are on monthly plans?

437.014 - 455.19 Seth Schultz

Um, Let's see. I'd have to look at the numbers, but, uh, I don't know off the top of my head. I think we have about what, 10,000 events, smart users that are paying monthly, you know, and they're paying, they're paying anywhere from $5 up to, you know, a hundred dollars a month or something like that.

456.191 - 463.402 Nathan Latka

Very cool. Okay. So, so put this on a timeline for me. When did you launch? Obviously you quit the job in 2011, but when did you launch the platform?

463.682 - 463.742

Um,

Chapter 5: How did Seth transition from a full-time job to entrepreneurship?

599.212 - 615.313 Nathan Latka

All right, a lot of you guys are like me and we're always looking for new tools, especially software tools to use in our business to drive growth, any kind of growth. And you always wonder, well, is this tool something I can trust? And that's where all mine reviews come in. This is where I use capterra.com.

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615.293 - 635.677 Nathan Latka

And the reason that I use Keptera is it's really the leading free online resource to help you find the best software solutions for my business. You know, we're now using monday.com. We're using Asana for some stuff. We're using Hotjar. And with over 850,000 reviews of products from real software users... You know, Keptera helps you discover everything you need to make an informed decision.

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635.817 - 656.92 Nathan Latka

So they have over 700 specific categories of software ranging from project management to email marketing, et cetera. No matter what kind of software you guys need, what I need, Keptera makes it easy for you to discover the right solution fast. In order to get started, visit Keptera.com slash top for free today to find the tools that make an informed decision for your business.

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656.96 - 659.303 Nathan Latka

That's Keptera.com slash top.

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Chapter 6: What is the revenue model for Seth's event management software?

659.543 - 679.573 Nathan Latka

Keptera, that's C-A-P-T-E-R-A. Now, I want to get in your head in 2011. I mean, did you know you were going to do this? So you saved up a cushion in case it didn't work? Like you just or I mean, how did you do it?

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679.773 - 686.388 Seth Schultz

Um, well, the company was profitable enough that I could just quit. I could quit my job and, and, and pay myself and pay myself.

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686.589 - 688.834 Nathan Latka

How much was it at that? How much was it doing a month?

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689.034 - 691.841 Seth Schultz

Um, I think we were doing like 20,000 a month.

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692.021 - 692.823 Nathan Latka

Oh, okay. That's pretty good.

693.304 - 719.91 Seth Schultz

Yeah. Yeah. And, but so we started off the first, when I first started the. Selling the plugin, I started off on my own, just my own little website through PayPal. I was making $2,000 a month, and then I was telling my office, my co-founder, which was a fellow co-worker at the time in my marketing job, And, uh, you know, I was buying pizza and talking to, talking to everybody.

719.93 - 743.142 Seth Schultz

I was like, Hey man, you got to get on in on this. I need some help. Cause he was really business savvy and he was getting his MBA at the university of Utah. So he, uh, basically gave up a job at the, uh, in Michigan, uh, to be, uh, uh, uh, you know, to work at the, uh, to the hospital out there and be like a, a business, I guess, uh,

743.797 - 749.631 Nathan Latka

uh, you know, I guess they need, uh, you guys worked, you guys worked together with the business at the hospital. Yeah. Yeah.

749.651 - 754.142 Seth Schultz

No, we didn't work at the hospital. He was going, he was leaving to go work at a hospital. Okay.

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