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SaaS Interviews with CEOs, Startups, Founders

33: How to Build a $100m SaaS Company

16 Oct 2015

Transcription

Chapter 1: What is the focus of The Top podcast?

0.031 - 24.3 Nathan Latka

This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark.

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24.32 - 59.959 Nathan Latka

And I'm your host, Nathan Latka. In the last episode, number 32, you learned from Anthony Zhang and the secret he uses to pay college students three bucks to literally build a business for him. Okay, Top Tribe, our guest today is Alex Moore. He is the CEO at Baden, who is known most, I'd say, for their boomerang Gmail plugging, which makes emailers everywhere more productive.

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60.36 - 82.694 Nathan Latka

He graduated from MIT in 05 and has an extremely strong engineering background based out in Mountain View, California. Alex, are you ready to take us to the top? Let's do it, Nathan. All right, I know you're sitting there in Mountain View with your cold brew hunkered down. I'm here in the Appalachian Mountains hoping my Redskins can pull off a win next week, a big NFL fan.

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82.714 - 86.759 Nathan Latka

So walk us through, tell me what, first off, what does Baden mean?

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88.461 - 93.667 Alex Moore

So Baden is a Burmese word that means foretelling the future through magic.

93.687 - 99.934 Nathan Latka

Interesting. Okay, now Boomerang, walk people through what the Boomerang Gmail plugin is. Is that your main product?

100.302 - 118.942 Alex Moore

Yeah, that's our main product. That's the bell cow for the business. So give the pitch, yeah. Yeah, Boomerang's a tool that helps you use email way more productively. So you can get notified if someone doesn't respond to your messages. You can schedule messages to be sent at a time where they're more likely to get a response.

118.962 - 125.449 Alex Moore

And you can include a red receipt in the emails you send out, as well as just snoozing emails and a couple other tangential features.

125.429 - 136.562 Nathan Latka

So I can't wait to dive into this. And Alex, just so people have context, again, we have really young students that listen to the top. They're part of the top tribe because they want to learn from entrepreneurs and figure out how to drop out of school and build their own business.

Chapter 2: Who is Alex Moore and what does Baden do?

184.005 - 184.946 Alex Moore

And that's in Mountain View, right?

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185.907 - 189.871 Nathan Latka

Yeah, all in Mountain View. Cool. So walk us through, why did you start Boomerang?

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191.473 - 201.683 Alex Moore

Yeah, great question. So it came from extreme personal pain in my previous life. Good place to start. Do you have an HDTV?

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202.243 - 204.846 Nathan Latka

You know, I don't watch TV. I don't even know what HD means.

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206.378 - 214.115 Alex Moore

All right, well, if you did have an HDTV, you would be able to say thank you to me because I helped shave 10 cents off the cost of it.

214.696 - 215.919 Nathan Latka

Okay, tell us that story.

217.662 - 239.484 Alex Moore

So I was working as an analog circuit person at Analog Devices in Boston. And I was in the lab a lot, working with oscilloscopes. I really liked it. But as I started to have more and more responsibility, I started to spend less and less time in front of my oscilloscope and more and more time in front of my email, trying to coordinate with people, making sure they got back to me.

239.524 - 254.19 Alex Moore

And there was really nothing good to do with an email that was like, you know... You know, somebody's like, oh, I'll get that to you on Thursday. Well, you need to make sure they do. And there was nowhere to put that, you know, like you could flag it, but then you'd end up with 60 flag things. You could move it to a folder.

254.251 - 264.01 Alex Moore

And so it was just like, somebody's got to have a better way to do this and couldn't find one. So I decided, you know what, still young enough to do this and decided to go out and build one.

Chapter 3: What is the Boomerang Gmail plugin and its main features?

361.552 - 380.904 Alex Moore

Your product is sort of your marketing because you've got a lot of free users. They tell each other about it and you get a lot of organic growth that way. then we've started to experiment with some paid channels. Some stuff's working. I'm not going to share with you the stuff that's working best because as soon as it gets known, it stops working.

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381.024 - 382.166 Nathan Latka

Alex, what's working best?

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383.268 - 388.537 Alex Moore

Yeah, I can't tell you, but as soon as people start doing the same thing, it stops working so well.

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388.918 - 392.985 Nathan Latka

Is it billboards or something online?

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394.13 - 411.919 Alex Moore

something online. Okay. Is it, but we started, you know, this is, we're five years in, you know, so we've done the love hanging fruit stuff. Um, I mean, if you start out, like do a little bit of SEO, make some pages, you know, you'll get some free Google traffic. You can get a long way with some pages, um, using your email list.

411.959 - 419.412 Alex Moore

Well, like until you really have revenue coming in at scale, I mean, you can't, you can't do anything with paid anyway.

419.672 - 419.732

Um,

419.712 - 433.707 Nathan Latka

Well, so help us understand, because again, there's entrepreneurs just starting out that are wondering, should I start paid or should I not start paid? You've been around, you've been doing this for five years. It seems like you're extremely data oriented. You made, you know, these HDTVs cheaper by 10 cents doing something I don't understand, but it sounds really intelligent.

434.728 - 442.497 Nathan Latka

So $5 and 15 bucks is what people pay you, is what they can pay you. Are you selling to individuals or companies usually?

Chapter 4: How did Alex Moore come up with the idea for Boomerang?

697.272 - 708.403 Alex Moore

Yep. So we found that what makes the most sense, and it's kind of cliche, but we found that just really trying to go the extra mile and give really good customer support to everybody is really the thing that works best for us.

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709.384 - 712.547 Nathan Latka

So you just do it broadly. Do you have a big support team or is it?

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713.624 - 727.982 Alex Moore

We got two folks who handle support for us. And most of the time, they can keep it going. If we have a really crazy day or something, I mean, there have been days where the whole team was doing nothing but support email. But most of the time, they can keep it rolling.

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728.002 - 743.361 Nathan Latka

Well, and that's such a great, I mean, what you just said, I think is really interesting. We talk with a lot of entrepreneurs who maybe are developers, and they go, should I make my developers or my marketers do support? And it sounds like you even, Alex, maybe, is it true to say in the last week, you've answered at least a support ticket as CEO?

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744.083 - 769.191 Alex Moore

I think I've answered exactly one in the last week. What we do is we rotate. Support is something that, well, for one thing, it's really hard to do as a founder after a certain point of time because you're just too close to it. It's your baby. And it's hard to kind of disassociate that. But we try to give each of our support folks a day away from support every two weeks.

769.252 - 781.226 Alex Moore

So every other Friday, somebody is off of email. Oh, great. Doing something else, working on something else so they don't burn out. And on those days, we rotate someone else from the team onto support.

781.827 - 803.333 Nathan Latka

Got it. Okay, interesting. So you have a rotating schedule there. Exactly. Okay. Walk... I just ran out of coffee, so I'm like in shock, and I'm wishing I could reach to the microphone and steal your cold brew and chug a bunch of it. Walk me through, though. Walk me through, Alex. Do you guys think about customer acquisition costs? I'm about to make up a term here.

803.713 - 809.46 Nathan Latka

Do you think instead of like a download acquisition cost, are you tying all your metrics back to downloads?

810.267 - 828.185 Alex Moore

So the problem we got is as a browser extension, it's really hard to link someone who comes onto the website and downloads to somebody who then starts using the product and do that in an accurate way. So I don't think I would be... You shouldn't do what we do unless you have to. Got it.

Chapter 5: What is the pricing strategy for Boomerang?

1042.341 - 1061.36 Alex Moore

It's like Startup CEO, a Field Guide or something. I read it like six months ago. Got it. In a lot of ways, it was sort of like talking to an older, wiser version of myself and But I wouldn't say that I necessarily follow a CEO exactly.

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1061.78 - 1074.998 Nathan Latka

Okay, great. I look everyone I talked to that's interviewing from Silicon Valley. The answer is almost Elon Musk, Elon every time. He's a great guy. He's a great guy. Everybody loves him. That's great. So okay, number three, Alex, what is your favorite online tool? Like boomerang?

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1077.041 - 1078.402 Alex Moore

I'm a big fan of rescue time.

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1078.683 - 1080.405 Nathan Latka

Okay, how do you use rescue time?

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1081.043 - 1085.477 Alex Moore

So it's an app that you install that basically monitors what you do on your computer.

1086.46 - 1087.102 Nathan Latka

Valuable.

1087.122 - 1108.832 Alex Moore

And then it generates some really helpful reports that says, okay, last week you spent four hours reading news websites. And it's really interesting to kind of get a sense. I had no idea how I spent my time before I had that. And it turns out I spent an awful lot of time in email. I guess that's not a big surprise.

1110.414 - 1122.666 Alex Moore

But it was really helpful for me to just kind of see, okay, and I haven't really changed my behavior all that much, but it was just really helpful to have a sense of, okay, here's what I'm doing every day when I'm on my computer.

1123.347 - 1131.744 Nathan Latka

Mm-hmm. Okay, great. Well, listen, you're a busy guy. You're building a great company, cashflow positive, big team. I'm curious, yes or no, do you get eight hours of sleep every night?

Chapter 6: How does Boomerang acquire customers without a sales team?

1260.045 - 1285.335 Nathan Latka

Bye-bye. Coming up in episode number 34, you are going to hear from Neville Medora, the greedy Indian who said, quote, the plumbers love me and my email marketing. This podcast is produced by Oration Recording and is sponsored by Eddy Communications and Roanoke, Virginia's Grandin CoLab, the premier workspace for entrepreneurs and growing companies.

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