848: SaaS: Wistia Video King? $10m+ ARR, 10k+ Customers on Just $1m Raised!
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What is the main topic discussed in this episode?
Founded back almost 11 years ago.
What is Wistia and how does it help businesses with video?
Feels like a long time, but not really, right? 2006 was launch date. There are now over 100 people up there in Boston helping you guys, the world really, entrepreneurs, better frame their video, host their video, present their video to their online audiences. They have tens of thousands of paying customers, an ARPU average of about 100 bucks a month, doing well more than a million bucks in monthly recurring revenue. Growth tactic wise, you know, making limits more obvious in their free trial is something that's helped them drive growth.
How does Wistia's pricing model work?
Margins lower than most SaaS companies, but that's because they have hosting expense. They've managed to keep churn, though, lower than most, especially SMB companies at 1.6% monthly. 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.
What challenges did Wistia face in its early years?
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.
How has Wistia managed customer churn effectively?
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.
What growth strategies has Wistia implemented?
Many of you listening right now don't have time to listen to every B2B SaaS CEO that I've interviewed. If you want to get access to the database I've created with year-over-year growth rates, customer accounts, margins, and many, many other data metrics and data points, you can go to getlatka.com.
How does Wistia convert free users to paying customers?
Here's the thing, though. This database... I keep it to myself. It's so freaking valuable. And to preserve the quality of the data and make sure that the people that have access to it have a true advantage, I'm only letting 10 companies on each month. So we're full this month, but you can go to getlatka.com to get on the waiting list for next month. And look, there's big people on the waiting list. I mean, the biggest VCs you've ever heard of.
What is the importance of profitability for Wistia?
You've probably heard of them. They're big, private equity, billions and billions under management. So it's an impressive waiting list. Go get on now at getlatka.com. Hello, everyone. My guest today is Chris Savage. He's the CEO and co-founder of Wistia, a leading video platform that enables business teams to harness the connective power of video. They help over 400,000 businesses connect better with their customers using video as the medium. Chris, are you ready to take us to the top?
Let's do it.
All right. Now, for those people that are not familiar with Wistia, give me a better description than what I just gave. What does it do and how do you make money? What's your revenue model?
Yeah, so it's a subscription model, really simple. Basically, it's a platform. You can upload your videos to put them on your site and control how they look. So it's a total control over the player. You can add interactivity if you want, link it into all the other analytics tools that you use. And basically, we're just trying to make it really, really easy for you to understand how your videos are performing, how you can make videos. And when you do that, we see companies use videos a lot more and they end up connecting better with their customers.
And what is the average customer pay you kind of per month and what will determine if they pay more or less? Like what things do you base your pricing on?
So it's based on numbers of videos and how much viewing you have. So the average customer is around $100 a month. And it's 25 cents per video per month as you add more videos. So we've tried to get a pretty simple storage model. And it also, we have some customers that have millions and millions of videos.
Okay, got it. You cut out when you said the hundred, they get 20, I think you said 20 something.
They get 25. So each video is 25 cents a month in storage costs, basically. So it scales up as you add tons of videos, but it's also really predictable, which is one of the things we found people wanted.
Got it. So take us back now that we understand the business and kind of what the average customer looks like.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–0:01
2
What is Wistia and how does it help businesses with video?
0:01–0:29
3
How does Wistia's pricing model work?
0:29–0:47
4
What challenges did Wistia face in its early years?
0:47–0:56
5
How has Wistia managed customer churn effectively?
0:56–1:05
6
What growth strategies has Wistia implemented?
1:05–1:21
7
How does Wistia convert free users to paying customers?
1:21–1:43
8
What is the importance of profitability for Wistia?
1:43–20:52
Speakers
3 identifiedMore from Top Founders
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