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SaaS Interviews with CEOs, Startups, Founders

EP 544: RevBoss $700k 2015 Revenue, Now $90k MRR to Help Customers Drive Revenue with CEO Eric Boggs

19 Jan 2017

Transcription

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

0.031 - 21.24 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. He is hell-bent on global domination.

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21.26 - 23.804 Eric Boggs

We just broke our 100,000 unit sold mark.

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Chapter 2: What is RevBoss and how does it help B2B sales teams?

24.084 - 34.981 Nathan Latka

And I'm your host, Nathan Latka. Okay, Top Tribe, this week's winner of the 100 bucks is Daniel Alsodini. He's based overseas.

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Chapter 3: What challenges did Eric face while transitioning from services to SaaS?

35.001 - 59.772 Nathan Latka

He's an employee at a current company and can't wait to break free. For your chance to win 100 bucks, Top Tribe, simply subscribe to the podcast now and then text the word Nathan to 33444 to prove that you did it. Again, text the word Nathan to 33444 to prove that you did it. I give away 100 bucks every Monday. Many people ask me what tool I used to sell my first company, Heyo.

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59.852 - 75.959 Nathan Latka

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 remembered to follow up with ones that hadn't replied to me.

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Chapter 4: How did Eric's previous experiences shape his approach at RevBoss?

76.419 - 93.454 Nathan Latka

You can try it for free at thetopinbox.com. Nathan Latke here. This is episode 544. Coming up tomorrow morning, you will learn from Gal Harzvi of Unami, which just raised $3.4 million. They're doing $160,000 a month in recurring revenue by helping businesses get more leads.

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94.615 - 118.8 Nathan Latka

nathan latke here good morning guys our guest today is eric boggs he's the ceo at revboss the sales prospecting sas company revboss helps b2b sales teams grow pipeline and win more customers prior to revboss he was the founder and ceo at argyle social and employee number one at bronto eric lives in durham north carolina with his wife and three small children eric are you ready to take us to the top

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118.78 - 137.38 Nathan Latka

let's do it you know i just realized i reached out when i was growing hayo when you guys sent a customer blast out at argyle social that you were shutting down i think i reached out and we talked about me buying those assets yeah i had already left argyle at that point um

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137.663 - 158.335 Eric Boggs

Yeah, I was, that was a, that was a very weird time and ended up selling bits and pieces of the company to a couple of different buyers. And in a not good situation, our investors got quite a bit of their money back. So it turned out to be not a complete smoking crater, but maybe just like a smoldering small hole in the ground.

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Chapter 5: What competitors does RevBoss face in the sales prospecting space?

158.355 - 160.178 Nathan Latka

I forget how much, how do you guys raise?

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161.12 - 171.426 Eric Boggs

We'd only raised 1.5, 1.6. Okay. And that was a little bit of the problem. The other competitors in our category had raised massive amounts of money.

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171.587 - 173.712 Nathan Latka

Buddy Media and Wildfire.

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174.974 - 193.904 Eric Boggs

Yeah. Yeah. I think we had realized a little too late that it was a foot race. And, uh, at that point, you know, a lot of the market was so far ahead of us and we kind of made some dumb product decisions early on as, as companies are wanting to do, but we just didn't have the cash and the runway to get to where we needed to get. So, you know, you live, you learn.

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194.224 - 194.424 Nathan Latka

Yeah.

Chapter 6: How does RevBoss measure its customer acquisition cost and lifetime value?

194.585 - 202.517 Nathan Latka

What'd you know? It's super valuable. By the way, this is what happened with most companies, right? Most companies give back nothing on the dollar. What'd you guys, what'd you give back 50, 60 cents on the dollar?

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203.797 - 209.382 Eric Boggs

Uh, I contractually cannot share. Oh, is that not public?

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209.402 - 211.664 Nathan Latka

What year did you do that? I mean, this was many years ago, right?

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212.885 - 222.654 Eric Boggs

Um, I think the whole thing kind of wrapped up like two years ago. Um, so actually, yeah, I guess I probably could share. I mean, it was probably somewhere between 60 and 70 cents on the dollar.

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222.694 - 232.082 Nathan Latka

That's not horrible, right? Um, what was the, uh, what was it competitors that I just mentioned that were buying these assets, you know, the hoot suites of the world, or was it just a totally different kind of buyer?

232.957 - 246.731 Eric Boggs

Um, one was an enterprise buyer that we actually tried to get to buy the whole company. Um, and earlier in the life of Argyle, that conversation kind of progressed and never really, you know, we never really got married.

Chapter 7: What is the current revenue model and MRR of RevBoss?

247.412 - 259.624 Eric Boggs

Uh, and eventually when sort of fire sale happened, you know, they were quick to swoop in and they got a good deal and, you know, investors got some, some of their assets back and, you know, it could have been a whole heck of a lot worse.

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259.644 - 262.727 Nathan Latka

What did they buy? Like a customer list or the tech stack or what?

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262.893 - 269.261 Eric Boggs

I think they bought, I think they licensed the core technology.

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269.401 - 269.961 Nathan Latka

Oh, interesting.

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270.222 - 277.51 Eric Boggs

And then we sold the actual code base to another startup that was sort of ramping up similar product in a similar space.

277.791 - 285.66 Nathan Latka

So that license, I guess their thesis was they had a product that did not do exactly what you did, but still in the social space, and this was going to be a natural upsell for them?

286.619 - 305.067 Eric Boggs

Yeah, yeah. At the time, it was this was an enterprise buyer, like, you know, selling marketing solutions to the Fortune 50. And they had a very, very weak social story. And so they saw the stuff that we had built as a natural fit to their platform. And frankly, just a good story.

305.047 - 315.891 Eric Boggs

Some of the team went there and suddenly they could check the social box and some of the stuff that we had built, I think, dovetailed in nicely with some of the stuff that they were already selling to their customer base.

316.072 - 321.604 Nathan Latka

So that was Argyle. You were then, was it before or after that, that you were employee number one at Bronto? I guess before, right?

Chapter 8: What lessons did Eric learn from his previous company, Argyle?

361.287 - 369.656 Eric Boggs

But slowly kept getting better. The product kept getting better. I improved in my role and really, really toned it.

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369.976 - 371.858 Nathan Latka

I assume you got equity that early, right?

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372.968 - 377.077 Eric Boggs

Uh, yeah. So all that kind of played out really nicely.

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377.558 - 380.765 Nathan Latka

And the company, you made more money on that than you did on Argyle.

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380.805 - 401.781 Eric Boggs

I imagine because Bronson was doing very well in the grand scheme of things. And I mean, just having that story, um, that early in my career has really helped. I, after Bronto, I went to business school for two years and got a complete scholarship and a stipend due in large part because I had this unique career experience that not very many people had.

401.821 - 426.591 Eric Boggs

And so I had a, you know, a choice of schools and had experienced something really different being there from the very beginning of a company's launch and then seeing it through to, you know, when I left, I think there were maybe maybe 30 employees. And now, geez, it's gotten acquired twice. It got acquired by NetSuite and then Oracle acquired NetSuite. So now Bronto is an Oracle company.

427.132 - 431.14 Nathan Latka

And so fast forward now into RevBoss. What does RevBoss do and what's your business model?

432.031 - 456.792 Eric Boggs

So we are a SaaS company that helps B2B sales organizations find more prospects and win more customers. And the company sort of spun out of my experience at Bronto, you know, where I sold software subscriptions there in like the, you know, the pre-Cambrian era of SaaS when, you know, we didn't even use Salesforce.com. This was like back in the Stone Ages.

457.993 - 482.946 Eric Boggs

And then even fast forwarding forward to Argyle, where our outbound sales process was just a complete mess. And so in between the Argyle wind down and RevBoss, I was a consultant for a year and helped a number of really good SaaS companies make some improvements in their sales process, Azure, UserVoice, DeviceMagick. And from that sort of

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