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SaaS Interviews with CEOs, Startups, Founders

EP 426: 1500 Customers and Profitable, $5.5M Raised with Pablo Fuentes of Proven.com

23 Sep 2016

Transcription

Chapter 1: What is Proven and how does it help small businesses?

0.031 - 19.395 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. I'm now at $20,000 per top. Five and six million.

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Chapter 2: How does Proven generate revenue from job postings?

19.415 - 32.2 Nathan Latka

He is hell-bent on global domination. We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka. OK, Top Tribe, this week's winner of the 100 bucks is Jose Avila.

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Chapter 3: What are the pricing models used by Proven?

32.501 - 54.722 Nathan Latka

He is a 17 year old that doesn't want to go to college and he wants to start his own business. For your chance to win 100 bucks just like Jose every Monday morning, simply subscribe to this podcast on iTunes right now and then text the word Nathan to 33444 to prove that you did it. Okay, many of you heard I made a big league acquisition of a company called SendLater.

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55.042 - 56.283 Nathan Latka

And I'm a greedy business guy.

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Chapter 4: What was Pablo Fuentes' revenue growth from 2009 to 2015?

56.403 - 76.701 Nathan Latka

I didn't want to give away equity to a technical co-founder. So I found my coders on a website called TopTal at NathanLatka.com forward slash T-O-P-T-A-L. I paid over $12,000 to the site to a guy named He Sheming in China, who I've never met, but we're going to build a big business together. I'm taking SendLater public by the time I turn 30.

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77.002 - 95.972 Nathan Latka

I'll tell you more about TopTal later on in this episode. Top Tribe, this is episode 426. Coming up tomorrow morning, you're going to learn from Keith. He did a million dollars in his agency in 2015 and launched a SaaS business called Segmetrics out of that, already doing five grand a month. Top drive. Good morning.

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Chapter 5: How does Proven ensure customer retention and manage churn?

96.012 - 116.579 Nathan Latka

Our guest today is Pablo Fuentes. He's the founder and CEO of Proven, a leading small business hiring tool. He's passionate about helping minorities and women start technology companies. He also enjoys Brazilian jujitsu, making cigar box guitars and playing the blues. He has a BA from UCLA and an MBA from Stanford. Pablo, are you ready to take us to the top?

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117.04 - 117.3 Pablo Fuentes

Sure.

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117.5 - 117.781 Nathan Latka

All right.

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Chapter 6: What is the funding history of Proven and how much has been raised?

118.001 - 121.686 Nathan Latka

Give us the down low. What does Proven do? And most importantly, how do you make money?

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121.936 - 138.763 Pablo Fuentes

Yeah, absolutely. We are a small business hiring tool. And what we do is we help when, let's say you're a small business, a restaurant or a retail shop, and you wanted to hire people, instead of having to go to a number of different job sites and post a job at each one, we help you distribute the job.

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138.743 - 160.765 Pablo Fuentes

And then we help you collaborate with other managers to make sure that you hire the right person. A big differentiator for us is our mobile tool. So we have probably one of the best mobile apps in the business and native apps in both iOS and Android where people can collaborate for the hiring directly from their phones.

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160.805 - 165.61 Pablo Fuentes

And we're the only app in the app store that allows you to post jobs directly from your phone.

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165.63 - 168.092 Nathan Latka

Who do you compete with, Pablo? Who would you say your biggest competitors are?

168.258 - 172.548 Pablo Fuentes

I would say there's a few. ZipRecruiter, they've changed their direction a little bit.

Chapter 7: What strategies did Proven implement to increase profitability?

172.889 - 176.016 Pablo Fuentes

The company's like Workable, and then there's a number of other smaller ones as well.

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176.317 - 180.647 Nathan Latka

Got it. Okay, so break down kind of history. What did you found the business in?

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180.897 - 195.851 Pablo Fuentes

We started the company originally in 2009. Back then, the idea was to connect people with jobs through text messages. And that's evolved over time. We pivoted quite a few times to find our way into a growing, successful business today.

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195.971 - 199.474 Nathan Latka

And this is always embarrassing, but what was your first year revenue in 2009?

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199.594 - 207.682 Pablo Fuentes

Oh, God, definitely zero. That was also revenue in years two and three and four.

207.702 - 210.364 Nathan Latka

Okay. So in 2015, what was total revenue?

210.715 - 218.31 Pablo Fuentes

Uh, in, in 2015, we did, uh, by a little bit over a million dollars in revenue. Okay. This year we're on track to grow about 60%.

218.431 - 223.982 Nathan Latka

And so you're on track to do what? About 1.5, 1.6. Correct. And, and tell us how you make money.

224.249 - 243.178 Pablo Fuentes

We make money every time a small business posts a job. It's a menu type option where they choose where they post and the jobs can be, you know, vary in price. And then we have partnerships with different third party job providers and then job boards and we make money that way.

Chapter 8: What are Pablo Fuentes' future goals for Proven?

260.56 - 267.569 Pablo Fuentes

It's over, it's over 1100, uh, individual companies, but it's a 1500 location to some, some companies have more than one location.

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267.929 - 270.372 Nathan Latka

I see. And what does each location pay you on average?

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270.503 - 277.074 Pablo Fuentes

It really depends. They can spend, you know, a couple hundred bucks a month.

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277.094 - 282.543 Nathan Latka

Okay. So what is the ARPU? I mean, what's your average revenue per user if you do the division per month?

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283.384 - 285.548 Pablo Fuentes

If you, I'm sorry, help me understand.

286.109 - 291.938 Nathan Latka

Average revenue per user. So take your total revenue in August of 2016 divided by total number of paying customers.

293.572 - 298.6 Pablo Fuentes

Okay, well, the way we think about it is more in terms of the lifetime value of a customer.

298.68 - 301.925 Nathan Latka

So let's say... How do you get lifetime value if you don't know ARPU?

303.628 - 316.288 Pablo Fuentes

Okay, let me walk you through how we think about it and then we can get there. So our average customer pays us about $350 or $400 a year.

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