SaaS Interviews with CEOs, Startups, Founders
EP 454: $6.9M Movie Tickets Sold In Discount Marketplace DealFlicks with CEO Sean Wycliffe
21 Oct 2016
Chapter 1: What is the main topic discussed in this episode?
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.
Chapter 2: What is Dealflicks and how does it operate?
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. He is hell-bent on global domination. We just broke our 100,000-unit soul mark.
Chapter 3: How many tickets and concessions does Dealflicks sell monthly?
And I'm your host, Nathan Latka. Okay, Top Tribe, every Monday I give one of you a hundred bucks to invest in your idea and to get to the top. To enter, subscribe to the podcast on iTunes now and then text the word Nathan to 33444 to prove that you subscribed. Last week's winner was Dr. Paul Vasquez.
Chapter 4: What is the average order value for transactions on Dealflicks?
Dr. Paul Vasquez with My Ads Nation. And he currently is working a full-time job and is dying to get out. Guys, a little CEO weapon for you. I hate going back and forth via email to set up a meeting time. You know, you gotta send 12, 13 emails, go between your inbox and your calendar.
Chapter 5: What is the current team size and structure at Dealflicks?
It's a pain in the butt. I started using nathanlaca.com forward slash assistant, totally free, which I loved. I reached out to the founders and said, you should pay me five grand. I'll make you a sponsor on the podcast. They did.
Chapter 6: How does Dealflicks generate revenue from ticket sales?
I'll tell you more about the tool and how I negotiated a deal later on in the episode. But for now, check it out. nathanlaca.com forward slash assistant, totally free. Nathan Latke here. Coming up tomorrow morning, you'll hear from Ariel Gamis, who exited in 2013, is now moving from a job to startup CEO again.
Chapter 7: How much funding has Dealflicks raised and what's the future fundraising plan?
But how is he doing it? Top five. Good morning. Our guest today is Sean Wycliffe. You may have remember him or you may remember him from episode 14 at NathanLatke.com forward slash the top one podcast. And he broke down how he uses affiliates in movie theaters to build his $240,000 per month business. We're going to get all into it. I want to get an update because that was almost a year ago.
Sean, are you ready to take us to the top? Hey, how's it going?
Chapter 8: What are the unique buyer statistics for Dealflicks?
Going. How's it going? Going good, going good. So tell everyone first, the company is called DealFlix. What do you do and how do you make money? Give us a refresher. Yeah, so what we do is we'll partner directly with movie theaters and offer their movie tickets and often popcorn and soda for up to 60% off. It's pretty exciting because we're around the country now in about 800 theater locations.
And we have no convenience fees. And the way that we make money is we'll take a percentage of whatever we sell through our platform from our theater partners for that service. And that's how we make money. And what is the, so I think again, last time we spoke, I think you said your volume put you somewhere in the $240,000 per month range. What are you, what are you at now?
How many kind of tickets are you moving per month? Yeah, so we just started selling over 140,000 tickets and concessions per month. Okay. And I think we just passed over about 350,000-ish, 370,000-ish per month. So, okay, that's interesting. At 140 grand in terms of ticket volume and 370 in revenue, I mean, that's top line revenue? Yes.
Okay, so the average ticket price is what, two or three bucks? Oh, sorry, that's tickets and concessions like popcorn and things like that too. So in terms of tickets itself, it's about 70,000. Okay, so about 70... Okay, wait, hold on, I'm confused now. Because you said you had 140,000 tickets per month and you're saying those tickets only represented 70 grand in revenue.
So tickets were what, like 25 cents? Yeah, yeah, sorry, let me start over. So about 70,000 tickets per month and then there's another 70,000 concession-ish. So... So, yeah. So, yeah. And then those 70,000 tickets translated, you know, to about 370,000 in top line revenue. And so our average transaction is a little over two tickets per transaction.
So, you know, usually, you know, people are buying 2.2 tickets or so. And so what is the average order value typically? Yeah. So the average order value is... It's actually around $13, but what happens is we actually have a lot of people that buy gift cards. So they'll buy them a few months before and then they'll use them later.
And so we'll recognize that revenue in the months when they purchase the gift cards. So that's kind of why, depending on the month, it can vary a little bit. Does the $13 include the concession income or just the ticket purchase? It can actually be for both, yeah.
So whenever we sell a bundle through DealFlix, that price is just set between us and the theater, and then the theater kind of allocates it between the ticket and the concession. We just have the price that we sell the bundle for. Okay, and so this is, I mean, your revenue model, would you call it a marketplace?
Yeah, we believe it's Markplace because we're partnering with theaters and then we're allowing them to put up different inventory on the platform. And then on the flip side, obviously, there's the users that are making the purchases from the marketplace. So we do see it as a two-sided marketplace. So your sellers are the theaters and the buyers are the moviegoers, right? Exactly.
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