SaaS Interviews with CEOs, Startups, Founders
850: SaaS: How Promorepublic Went From $6k to $20k MRR
21 Nov 2017
Chapter 1: What is the main topic discussed in this episode?
They had just 600 customers. They're now up to 5,500 customers, 1.8 million raised.
Chapter 2: What is PromoRepublic and how does it help SMBs?
It's at about 110,000 euros in 2016 revenue. We'll hit about 300,000 in 2017. They've doubled their ARPU to $20, doing MRR last month of about $20,000. Also decreased gross monthly logo churn from 8% down to 5.8%. And their team is down to about 22 people as they look to get more efficient now.
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.
Chapter 3: What is the pricing model for PromoRepublic's services?
Five and six million. He is hell-bent on global domination.
Chapter 4: How has PromoRepublic's MRR changed over the past year?
We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka. 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. Here's the thing, though.
This database...
Chapter 5: What strategies are being used to reduce customer acquisition costs?
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. 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. Good morning. My guest today is Max Bejerski.
He is a passionate SaaS entrepreneur whose mission is to connect professional SaaS companies and startup hubs to help them form long-term relationships and good win-win partnerships. Currently, he's connecting angel institutional investors, co-founders, exceptional talent, and partner companies across three different countries to make the promo republic.com venture succeed at a global scale.
That's his current company. Prior to co-founding Promo Republic, he worked in marketing agencies for 10 years and was responsible for business development, digital marketing, and sales. Max, are you ready to take us to the top?
Absolutely. Looking forward to it. Okay.
Good, good, good. So that's a mouthful, obviously. Give me like one sentence. What does Promo Republic do? And then second sentence, how do you make money? What's your revenue model?
I see. So Prom Republic is a content automation, social media content automation tool that helps SMBs to create basic social media presence. In a way, it's a vix for social media presence. So that's what TechCrunch called us. Our business model is pretty standard for a SaaS company. We are in a monthly subscription model.
We offer individual packages that start with $15 a month if you buy an annual package.
Okay. And what's the average customer paying you per month?
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Chapter 6: What role does AppSumo play in PromoRepublic's customer growth?
That's double. So you've increased pricing.
oh yeah we've been suffering to find a channel with low customer acquisition cost as you remember we've been operating in europe before that but us surprised us with the prices of acquiring a customer so we had to create additional value of our product to move average revenue per user up and we are continuously working on that so we are Launching $100 a month package pretty soon.
Chapter 7: How does PromoRepublic manage customer churn?
That's great. Yeah, back in August of 2016, the numbers you shared with me, you had about 8% gross churn. You had $100 CAC on a lifetime value of $125. So obviously those ratios don't work, which is why you made some of these changes. Now, is your CAC still about $100, which is, you know, now it's a little better since your ARPU is higher.
Yeah.
It's better. It's around $150, $170. Okay, $100. Your CAC is $170? Customer acquisition cost is $150, $170. So we're doing different experiments, doing different mix of channels. So that's around the range where the price we're paying for one customer.
And give me an example of kind of where you're spending capital and what channels. Maybe start with how much total you spent last month on these paid channels.
Oh, on paid channels, that varies from... Months to months. So the channels that work really well for us, we're in a product fit mode regarding marketing as well. So we're trying lots of stuff. Things that started to work is building affiliate network. So that brings around 10% of our customers. We do a lot of content marketing.
What do you pay your affiliates?
We pay 30% lifetime. So we're trying to be a bit above market. So maybe it's now an average.
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Chapter 8: What funding has PromoRepublic secured to support its growth?
Yeah, but that's... Anyway, we get most of our revenue from top affiliates.
Okay. So I know it varies, but what did you spend last month on paid acquisition?
So it's around... $3,000. So that's paid. We try not to invest in Facebook and in Google AdWords. Over the last months, we were focusing on R&D. So we're having now the time that we work on R&D. We've got public funding for that.
How much capital have you raised to date?
In total, we raised up to date 1.85 million US dollars and around 1.1 from public sources and from grants and soft loans and the rest is coming from business angels. We have cool guys from the US, so Silicon Valley based business angels. So ex-Facebook guy, we have daughter of Peter Drucker, the management guru on board.
And yeah, we have a couple of new seed stage VCs from London, Estonia, and East Europe on board.
Great. So again, about a year ago, you'd raised about $650,000. So since then, you raised about an additional $1.2. You said you're putting some of that towards R&D, which is great. What's your team size now?
Yeah, so we've been 27. Now we're 22 people. So we grew maybe too early. So we made our team is reduce our team. So we make sure we have on the people that can influence market fit.
And where are you based?
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