SaaS Interviews with CEOs, Startups, Founders
ChoreRelief Launches SaaS for Contractors to Manage Invoices, Breaks $800k in ARR, Raising Now
01 Oct 2021
Chapter 1: What is the main topic discussed in this episode?
As we ramp up our PR strategy and marketing effort, which we actually put in together, as we also go through the rebranding process, we're planning on hopefully getting somewhere around 20, on average, somewhere between 25 and 35 million.
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Chapter 2: What is ChoreRelief and what services does it offer?
Check it out right now at getlatka.com. Hey folks, my guest today is Tariq Kerbesh. He's building a tool called ChoreRelief.com, a marketplace and operation software for home services. Tariq, are you ready to take us to the top?
Yes, sir. Let's do it.
All right. So we've spoken a couple of times, but last we spoke, I think was back in August or July of last year. You were just really getting going. You had about 200 customers, I think 30,000 bucks in MRR. Help me understand, help folks that missed that interview understand what are people paying you for?
Well, two things now. We're not just a marketplace alone. We also offer service management tool for contractors. So where we make money, customers pays us to connect them with local contractors based on their time and availability.
So we take a transaction card from there, but also now small businesses are paying us for a subscription-based model anywhere from $59, mid-tier $119, $249, depends on the size of the team that they have, and it depends on how many freebies would they get from us. But as they increase their subscription, they lower down their commission.
So when you say customers pay to connect with local contractors, those customers are all SMBs?
No, there's some of them. Originally, we started with individual homeowners, then switching to landlords, and now we're in the process to experiment with small to mid-sized property management, as well as restaurant retail stores.
Okay, but the majority of your customers, say, are homeowners and landlords?
From the consumer side, yes, but the service providers are SMBs.
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Chapter 3: How does ChoreRelief generate revenue from its customers?
So that product that launched about a month ago went from nothing to $60 a month times 400 is about $24,000 a month in MRR.
Something like that. Yeah. And then we're planning on adding the annual subscription model so we can discount the actual monthly so we can have even a long sales ticket.
Yeah.
And when you add back on the homeowner and landlord side who pay to connect with all these local contractors, how much MRR is coming from the homeowners and landlords?
Well, that varies. We've had anywhere from like, you know, it could be 10,000, it could be 35,000, depends on the actual time. But right now, we're wrapping up all of our resources and marketing to focus more on bringing those type of customers.
Because what we notice is this, the more job we send to these contractors in a regular basis, the more incentives they see for them to upgrade to their paid subscription model. Because now you can, you know, any job that we send you, rather than pay me 20%, you pay me 10%. So that's an incentive right there.
And, uh, so as, as we ramp up our PR strategy and marketing effort, which we actually put in together, as we also go through the rebranding process, uh, we're planning on hopefully getting somewhere around 20, on average, somewhere between 25 and 35 a month.
So last month, all your revenue from both as the marketplace combined, how much did you do last month in top line revenue?
I don't have the numbers in front of my head, but it's somewhere around the mid thirties.
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Chapter 4: Who are the primary customers using ChoreRelief's platform?
This year we're almost on track of doubling. The user growth has already increased this year by 400.
Well, Craig, hold on, hold on, hold on. So ignore user growth. Look at revenue for a second. I just want to make sure I didn't misstate you because I want to get this accurate. You told me a year ago you were doing about $30,000 a month in revenue or about $400,000 in total revenue last month. You just told me last month you did about mid-30s in revenue. So $30,000 a month is the same run rate.
Are we talking about the marketplace? Are we talking about the SaaS or all together?
Now, the question I asked you was on the marketplace side, on both sides, how much revenue did you last month? And you said mid-30s.
So the marketplace, that's just the leads that we get. That's not including the subscription base that we charge for the contractors to be part of the ecosystem.
That's what I was asking. So on both sides of the marketplace.
On the both side, like roughly around 50 to 60,000. I don't have the exact number in front of me. I see. Consumers like you're trying to compare last year to this year. So we grow in the marketplace, the Legion service, the operation software, that's just brand new, just recently launched 45 days ago. And that itself is already generating converting and paid like from free tiers to pay tiers.
That growth has been impressive. What I was articulating though, when I said full marketplace revenue is you've got homeowners and landlords paying you as a percentage of GMV going to the platform. And then you've got snow removal folks, landscapers, painters paying you on the flip side. And they're also now paying you for subscription tools to do things like invoicing.
And what you're saying is that new SaaS tool is growing really fast and you back that up with numbers.
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Chapter 5: What challenges does ChoreRelief face in the marketplace?
Married, single, kids?
Oh, still married.
10 years. Any kids?
Not yet.
All right. And how old are you?
I just turned 41.
41. Happy birthday. Last question. Something you wish you when you were 20.
Oh, man, that's easy one. Just take all of my saving and put in Bitcoin.
Guys, there you have it. Chore Relief, helping homeowners and landlords connect with local contractors they need, whether that's a painter, snow removal, or anything else. They're going to be expanding markets here shortly. They just launched their SaaS tool, which helps these local contractors do things like invoicing, charging $60 to $250 per month on that.
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