SaaS Interviews with CEOs, Startups, Founders
698: How this Sales Training Tool Went from $600k to $1.2M in Revenue in 1 Year
22 Jun 2017
Chapter 1: What is the main topic discussed in this episode?
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.
Chapter 2: What is Sales Huddle and how does it work?
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 talk. Five and six million. He is hell-bent on global domination. We just broke our 100,000 unit soul mark. And I'm your host, Nathan Latka. Morning, everybody. It's a new one for you this morning, episode 698.
Coming up tomorrow morning, I talk to Dan Gamito.
Chapter 3: What is the revenue model for Sales Huddle?
He is the fired ConvertKit co-founder that you've never heard of. Most of you know Nathan, but you don't know of this guy who was fired and he blames his father. His father made him feel not worth enough and he missed out on a lot of equity. It's an emotional episode. It's explosive. You don't want to miss that tomorrow. Good morning, everybody. My guest this morning is Sam Couchy.
Chapter 4: How did Sales Huddle achieve $1.2 million in revenue?
He is the CEO. Actually, many of you guys may recognize him. I had him on earlier, but he's the CEO of a company called Sales Huddle, a training and development team that is using game technology to help organizations better prepare their people for the workforce. Sam, I believe last time we spoke, you had something around 61 customers and 700 grand in revenue.
Chapter 5: What strategies contribute to Sales Huddle's 100% retention rate?
Are you ready to take us to the top? All right, so update us. Last time you came on was back, I believe, in August or maybe July of last year.
Chapter 6: How has the company evolved since its founding?
What does Sales Huddle do for folks that don't know what it does? And then where are you today in terms of customers?
Got it. Yeah, great. So in a nutshell, we're a mobile game platform for employee training.
Chapter 7: What challenges does Sam face as a founder?
So we've all sat through our fair share of workshops and trainings and videos that missed the mark or put us to sleep. We take everything you need to know to do your job, whether it's selling, servicing, frontline, full-time. We gamify it into quick-burst trivia games that you can use to upskill your workforce faster, better, and more effectively.
And so what, again, describe to us your revenue model. Last time you said you had 61 customers, 700 grand in revenue. Are they paying monthly or is it pay as you go or what?
It's monthly.
Chapter 8: How is Sales Huddle planning to scale and grow?
So we're a SaaS model. Upfront integration fee ranges from 5K all the way up to 50K. We have a monthly recurring fee that... It's anywhere between $1,000 and up based off number of employees on the platform. We closed out last year at $1.2 million in revenue. Going into this year, we have around $800K in our annual recurring revenue stream.
Wait, Sam, what does that mean?
So $800K in recurring revenue on subscription from 82 clients on our platform.
Okay, so your current run rate is you're doing, call it about 70 grand per month or 65 grand per month from 80 clients paying you monthly.
Correct.
Okay, and so how did you do 1.2 million last year? Explain how the professional services one-time fees work.
Got it. So we have an initial integration fee that is charged to take the client's current content, convert it onto our platform, and get them jump-started. So the integration fee is a one-time fee customers pay. And then because companies think of our purchase as an enterprise purchase, they budget it. We don't really have a monthly recurring stream. Most of our companies pay us up
upfront for the year. So a lot of that number is clients that range from one-year to two-year deals who, in some cases, because of being so bought into the product, they might pay for the whole thing upfront.
Got it. Do you require they pay upfront, or they choose to, or they can pay more monthly?
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