SaaS Interviews with CEOs, Startups, Founders
1615 Secrets to Cold Traffic to Demo to Sales Funnel with $1.8m ARR SalesProcess CEO
26 Dec 2019
Chapter 1: What is the main topic discussed in this episode?
launched kind of just a kind of hustle agency done for you system back at seven years ago to help people drive more sales and demos. He's now kind of codified that today. It's still really a training and membership program, but he's scaled nicely to 280 customers paying anywhere between six and 15 grand per year doing caught, you know, 1.8 million bucks over the past, call it trailing 12 months.
So healthy growth, two people based between Toronto and other remote locations, totally bootstrapped, which obviously is a great place to be. Hello, everyone. My guest today is Nick Kauzman. He has got a BSc in engineering physics. He's the founder of salesprocess.io, a group from zero to a $1.8 million run rate over the past several years. It's bootstrapped, one commission-based employee.
We're going to dive into it today. He's helping 250 SaaS and high-ticket service companies scale up. Nick, are you ready to take us to the top?
Let's do it.
All right, man. So crowded space, marketing tech, sales tech, how are you positioning this?
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Chapter 2: How did Nick Kozmin scale his company to $1.8 million in ARR?
How's it different?
So we focus on helping SaaS companies grow profitably. We help them install what's called video sales letter funnels. Basically, it's the video sales letter funnel plus paid traffic to a demo. So we're helping companies just pump, fill their calendar with demos. And yeah, our service and our product shows them how to do that and achieve profitable growth.
So there's tons of marketing firms out there that show people how to do ads, show people how to do outbound prospecting, but not too many of these folks understand that they need to make it profitable. So, you know, like this is your world.
If you're generating a demo at like $150 per demo on Facebook or using LinkedIn ads, let's say your show up rate is 70%, the close rate is 50% or 30%, you want to make the math make sense, right? So if you're spending $1,000 to get a client, you want your gross contract You shouldn't be over $1,000 in that first year.
You want that payback period to be pretty short so you guys can grow, so they can grow profitably. So we focus on that. So essentially, we build machines where you can spend $1.
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Chapter 3: What unique strategies does Salesprocess.io use for SaaS growth?
For SaaS companies, we spend $1. You should make at least $3 back in like 30 days. And we eat our own dog food. So we got to 1.8 million in seven months.
That's where you're at today, 1.8?
Yeah, well, 2.2 in revenue, but since we're bootstrapped, I just look at cash collected, we're at like 1.8.
So let me ask it differently. Last month, how much did you do in revenue?
180.
Okay, 180, got it. And what's that up from a year ago?
That was, it's up, we were doing like 30 last year.
Okay, got it. So about 30 grand in December 2017, now at 180 December 2018. You're saying you do all that by eating your own dog food.
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Chapter 4: How does Nick define profitable growth for SaaS companies?
You do a lot of demos every day?
Oh yeah, buddy.
How many?
You want me to share my screen with you?
No, no, no, that won't come through. It won't come through on the show.
Yeah, like I have a sales rep. I got Joseph in Arkansas. I'm in Toronto. I do five to six demos a day. And then Joseph's doing five to eight demos a day.
Okay. What's the team? So just two of you today?
So we got to 1.8 with just me and Joseph.
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Chapter 5: What is a video sales letter funnel and how does it work?
But then I brought on two other sales reps that are ramping up right now. They're not really selling. They're just training right now.
Okay. Are they like full-time employees or commission only? Commission only.
Everyone's commission only.
Okay. So just you really full-time.
Yeah. And Joseph's full-time, but he's commission only.
Okay. Okay. Got it. Got it.
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Chapter 6: How does Nick's team structure contribute to their success?
Very good. Okay. So two full-time and break down. So like what's the average customer pay you per month? You have a lot of SaaS companies using you.
Yes. Our contract values anywhere from six grand to 15,000 a year.
Okay. A year. And is that just, is it, is it really variant on how many leads or how many demos you're setting up for them?
So we teach them, it's an e-learning, it's like a consulting e-learning package, right? So the 15 grand is more hands-on where we actually help them write their copy and their ads. Like that's, that's really what they're, they're paying for. Like we just write banger ads that cut through Facebook and YouTube and So that's where our $15,000 clients get.
Chapter 7: What pricing models do they offer for their services?
And then our six grand package is basically the playbook on how to build these video sales letters. So we give them the sales scripts, the BSL scripts, the ad scripts, the templates, how to set the CRM, how to hire folks, how to do a demo, how to one-call close. Most people have no idea how to do that.
Yeah, so just to be clear, so is this like an agency on steroids, Nick, or is this truly a SaaS company?
It's not an agency, it's a info product.
Okay, got it. Yeah, yeah. But it's not, I mean, you have to hustle every month and close new deals every month to build stackable recurring revenue, correct?
Yeah, well, the contract is per year. So it's a yearly contract and we have a group, we have a community, so they pay to be part of the community.
Okay.
OK, so let me do a specific example here. I'm going to pick one of these logos you have off your site. So a company like Copilot or Gather or AdvisorStream is paying you. What you're saying is Copilot is going to say, you know, Nick, we need we have two SDRs.
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Chapter 8: What lessons has Nick learned from his entrepreneurial journey?
They're putting into AEs right now. We want to test if your system makes our SDRs more effective for getting demos for these AEs. We want to sign up for you to do, you know, line us up 200 demos over the next year. And you're going to say, OK, that's 15 grand.
Yeah. Well, we'll be, we'll look at, it depends on the price point in the market that they're in. Right. We usually, if they're just doing outbound, if they're selling something over like 50 grand, they're looking at five to 20 demos a month. If they're a little bit lower price point where they're selling like SMBs, like we can get like 120 demos a month.
It just depends on the, on the, uh, on who they're going after.
How many customers are you serving today? 280. 280. Okay. And when did you launch the company? What year?
So I started seven years ago, but I was kind of like a, I would go in, I could only help two customers at a time. So I'd go in for half a year, and I'd roll up my sleeves and do all the work. So I'd build the funnel, I'd get on the phone, I'd build the sales team, I'd run their ads, and we would do, it was $100,000 fee plus 15% of the lift.
So I would go in, and I could only do two of those a year. So then we did these deals, everyone started asking me.
Hold on, Nick, sorry, so that was back in 2011? Yeah.
Yeah. 2012. Yeah.
And so like, where were you in life at that point? Was this like college or out of college or quit corporate?
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