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SaaS Interviews with CEOs, Startups, Founders

717: Why Moving Her Team to Brazil Was Genius

11 Jul 2017

Transcription

Chapter 1: What inspired Emília to move her team to Brazil?

0.031 - 16.116 Nathan Latka

She has founded a company called Content Tools back in 2015, moved her entire team of 30 to Brazil, where again, just a lot of efficiencies there. The average salary is somewhere around three grand per month, but they're killing it in terms of customers. They have over 700 paying customers, paying on average 100 bucks per month.

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16.096 - 34.901 Nathan Latka

So they do about 70 grand per month right now, growing rapidly month over month. They just had their first month, which would have been April of 2017, which was net negative churn. In terms of gross churn, they're at about 2% or 3% CAC. They're not spending any money on paid acquisition except two content folks. So call it six, seven grand per month there.

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34.941 - 51.244 Nathan Latka

But again, growing by 20 or 30 new customers per month down there in Brazil. This is episode 717. Coming up tomorrow morning, you'll learn from Ran Korbor, Air pollution is deadly, but here's how this Israeli entrepreneur is totally cashing in. But first, here's today's episode.

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51.865 - 67.787 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.

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Chapter 2: How does Contentools support content managers?

67.767 - 92.29 Nathan Latka

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 sold mark. And I'm your host, Nathan Latka. Hello, everybody. My guest today is Amelia Chagas. She is the CEO of a company called ContentTools.com, a platform that helps over 700 companies plan, create, distribute, and analyze content.

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92.27 - 106.207 Nathan Latka

As a content manager for over eight years, she has led video, book, and web-based strategies at both enterprises and SMBs. She's a 500 Startups entrepreneur and part of the Endeavor Promises program. Amelia, are you ready to take us to the top?

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107.428 - 111.933 Emília Chagas

Yes. Thank you so much, Nathan. Thanks for having me. It's a pleasure to be here.

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Chapter 3: What are the financial metrics of Contentools?

112.114 - 117.4 Nathan Latka

Thank you for coming. And you're absolutely glowing right now because you're in a beautiful location. Tell us where you are.

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118.207 - 137.985 Emília Chagas

I'm in Florianópolis, Brazil. It's a small island down south. It's well known for its tech and tech businesses. It's a great environment here. It's a great place to be if you're a startup owner, if you're a founder. Floripa is for sure one of the best cost-effective places on earth.

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138.005 - 139.388 Nathan Latka

What's your average salary?

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140.633 - 152.224 Emília Chagas

It's around $3,000. It's monthly, of course. It's really low, really. I mean, you can live well here. We have more than 40 beaches surrounding us.

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Chapter 4: How does Emília manage customer acquisition?

153.265 - 167.118 Emília Chagas

It's amazing. Yeah, and it has a great structure, too. It's not that good because we have to go to San Francisco often, and the flights there are around 20 hours. 20?

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167.836 - 170.904 Emília Chagas

Yeah, between airports and yeah.

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171.124 - 172.427 Nathan Latka

How many team members do you have right now?

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173.871 - 174.853 Emília Chagas

We have 30 people.

174.873 - 183.695 Nathan Latka

30 people. So, I mean, if I take 30 people to an average call of 3K per month, right, you're spending what? About 90K or 100K per month in salaries?

183.956 - 184.056

Yeah.

184.593 - 192.187 Emília Chagas

A little bit less than that. It's not everyone earns 3K. Some people are a little bit less.

Chapter 5: What challenges does Contentools address for SMBs?

192.207 - 198.018 Emília Chagas

Some people are a little bit more than that. So we are around 65K, 70K.

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198.86 - 203.428 Nathan Latka

Okay. And tell me about the tool. What does it do and how do you make money? What's your business model?

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204.016 - 229.428 Emília Chagas

Sure. Content tools, the software, the service model. So we charge for subscriptions. We offer a content marketing platform all in one for content managers, for companies that have smart teams, growing teams in marketing. So if you have Three, four, five people in your marketing team, you're growing as a business, you need content, right? Content's the beginning of marketing.

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229.788 - 243.924 Emília Chagas

But working with content's not that easy. You have a lot of issues, a lot of tools, different tools, different processes going through your approval processes, and then publishing is also a headache.

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Chapter 6: How does Contentools differentiate itself from competitors?

243.944 - 249.991 Emília Chagas

So we merge everything into one single software, and it's very easy to use.

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250.011 - 252.214 Nathan Latka

And what does the average customer pay you per month?

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253.426 - 278.893 Emília Chagas

Around $100, $300. It really depends on the plan they're in. We have companies paying $100, companies paying $1,000. It really accommodates what a business needs. So we have features from strategy to creation. You can create content within content tools as well and distributing and analyzing everything.

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279.447 - 284.652 Nathan Latka

So is this like, can we relate this to like Buffer or Hootsuite? Or if not, how's it different?

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285.693 - 290.218 Emília Chagas

We do that too, but we also do the workflow. So that's different.

290.498 - 291.8 Nathan Latka

I see, like the project planning.

292.62 - 295.624 Emília Chagas

Exactly. So we merge everything in it.

Chapter 7: What are Emília's future plans for Contentools?

295.644 - 304.653 Emília Chagas

You don't need a Google Docs or a distributing tool. You have everything within one single software, and that's different.

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304.933 - 306.855 Nathan Latka

And how many customers do you have paying you today?

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307.645 - 314.435 Emília Chagas

We have around 300 customers, 700 companies using content tools and many of them through their agencies.

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315.597 - 318.241 Nathan Latka

Okay. So 700 are using, but 300 are paying.

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319.303 - 322.948 Emília Chagas

No, all of them pay, but some of them pay through their agencies.

323.129 - 324.891 Nathan Latka

So you have 700 customers then?

325.632 - 326.033 Emília Chagas

Yeah.

326.053 - 336.589 Nathan Latka

Okay. Got it. I mean, can I do the math? And if I take 700 times, you said between like 100 and 300 ish per month, let's just like do in the middle, 150. Are you in about a hundred grand per month, 105 grand per month?

336.89 - 337.712 Emília Chagas

We're going there.

Chapter 8: What personal insights does Emília share about entrepreneurship?

337.892 - 348.131 Emília Chagas

We have a lot of people pay for the smaller parts of the smaller features, like social features are a little bit less costly. So we are around 70K per month.

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348.151 - 357.649 Nathan Latka

Okay, got it. And you mentioned earlier that your headcount expenses were around the same amount. So I imagine you've raised capital in order to stay in business, right? To cover your cash burn?

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358.844 - 365.117 Emília Chagas

We raised an angel round. We're growing to raise a seed round next year.

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365.498 - 367.021 Nathan Latka

Got it. And so how much have you raised to date?

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367.041 - 369.987 Emília Chagas

500K. 500K.

370.688 - 376.6 Nathan Latka

Very good. And walk me through kind of where your brain was at when you were launching this. So what year did you launch the company in?

377.862 - 405.097 Emília Chagas

We launched 2015 right after we had gone through 500 startups. So I'm a content manager for around eight years, as you mentioned, and working with startups and working with enterprises, I've always seen the same kinds of problems when you deal with content. It can be really messy for the content manager. He has to poke so many shoulders to, oh, okay, what is the status of your content?

405.457 - 424.903 Emília Chagas

It's very messy for the content manager and we wanted to make it easier, right? So we created content tools and launched it around July 2015. We went beta, and then in January 2016, we moved from beta, and we've been growing since.

425.364 - 431.937 Nathan Latka

If somebody offered you $1.5 million to buy the whole company right now, would you sell it? About two times you're in. I'm not sure.

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