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SaaS Interviews with CEOs, Startups, Founders

EP 522: Delivra $15M 2017 Goal, $700k MRR Now, Helping 450+ Customers Sell Things with CEO Neil Berman

28 Dec 2016

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 9.046 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.

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Chapter 2: What is Delivra and how does it help businesses?

9.526 - 23.79 Nathan Latka

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.

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Chapter 3: How has Delivra achieved its growth without external funding?

24.09 - 53.167 Nathan Latka

And I'm your host, Nathan Latka. Okay, Top Tribe, this week's winner of the 100 bucks is none other than Derek Rodenbeck. He is an artist and he's looking to increase his revenue. If you want your chance to enter and to win 100 bucks each Monday on the show, simply subscribe to the podcast on iTunes now and then text the word Nathan to 33444 to prove that you did it.

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53.588 - 78.704 Nathan Latka

Again, text the word Nathan to 33444. Many people ask me what tool I used to sell my first company, Heyo. The answer is thetopinbox.com. I used it to send emails, schedule emails to be sent out later, and set reminders inside my inbox so I would know when potential buyers were actually interested. And I easily remember to follow up with ones that hadn't replied to me.

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79.165 - 95.561 Nathan Latka

You can try it for free at thetopinbox.com. Nathan Latke here. This is episode 522. Coming up tomorrow morning, you're going to learn from Usman of XIQ. He's using AI to power sales teams and has raised 1.1 million bucks to do it. Top drive.

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Chapter 4: What marketing strategies does Delivra use to acquire customers?

95.621 - 99.105 Nathan Latka

Good morning. Nathan Latke here. And our guest today is Neil Berman.

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Chapter 5: What is Delivra's customer retention rate and average customer lifespan?

99.165 - 113.17 Nathan Latka

This guy knows SaaS. He launched his company called Delivera many, many years ago, back in 1999 in the email marketing space. Maybe invented email marketing, but Neil, let's have some fun. Are you ready to take us to the top? Let's do it, Nate. All right.

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Chapter 6: How does Delivra calculate its customer acquisition cost?

113.21 - 117.096 Nathan Latka

Walk us through the business. What does Delivera do and how do you generate revenues?

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118.899 - 138.814 Neil Berman

Delivera is an email marketing software tool that helps our clients sell more stuff. And where we... The way we make money is, you know, we're a high breakeven business with a low variable cost. So the more customers we can sign up, the better.

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Chapter 7: What challenges does Delivra face in managing cash flow?

139.075 - 142.238 Nathan Latka

And how many current customers in December 2016 are paying you?

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142.258 - 149.027 Neil Berman

500 direct paying clients and we have a couple thousand extra through resellers.

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149.507 - 153.192 Nathan Latka

Oh, great. Okay. So what are the what's the kind of the average customer pay you per month?

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Chapter 8: What are Neil Berman's insights on raising capital?

154.64 - 160.731 Neil Berman

Uh, so they're paying us 10,000 a year. So I guess that's what, but somewhere between eight, $900 per month.

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160.751 - 170.249 Nathan Latka

Yeah. So about 833 bucks per month is what they're paying you. Uh, and then is it fair? Can I back into, to kind of an MRR number by just doing the eight 33 times 500? Should that math work properly?

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172.072 - 175.438 Neil Berman

Uh, let's try that.

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175.618 - 178.183 Nathan Latka

Yeah.

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182.467 - 189.438 Neil Berman

Let's see, we're doing 4.8 million a year. That's what you did last year or this year? That's what we're gonna do this year.

189.678 - 203.8 Nathan Latka

Okay, so you're gonna do 4.8 million. So if I do just the 4.8 million divided by 12, that puts about 400 grand per month in a kind of average monthly recurring revenue. So yeah, if you're currently doing 416 grand per month, that annualized comes out to about your 4.8 number.

205.045 - 205.486

Perfect.

205.947 - 212.581 Nathan Latka

Good. Okay. So 4.8 million in 2016 is what you'll do. What'd you do in 2015? Total revenue?

214.364 - 219.174 Neil Berman

I think we did 4.2 to 4.3. So we've had a reasonably good increase over the year.

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