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SaaS Interviews with CEOs, Startups, Founders

Learn from Organice: How to get free customers from the Slack App Exchange

11 Oct 2023

Transcription

Chapter 1: How did Andrew Phan launch his agency at just 24?

4.975 - 17.366 Nathan Latka

You are listening to Conversations with Nathan Latka, where I sit down and interview the top SaaS founders, like Eric Wan from Zoom. If you'd like to subscribe, go to getlatka.com.

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17.866 - 35.463 Nathan Latka

We've published thousands of these interviews, and if you want to sort through them quickly by revenue or churn, CAC, valuation, or other metrics, the easiest way to do that is to go to getlatka.com and use our filtering tool. It's like a big Excel sheet for all these podcast interviews. Check it out right now at getlatka.com.

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38.987 - 48.599 Nathan Latka

Guys, when Andrew was 24, this was back in 2012, he launched his own agency and started doing consulting work. Today, he charges on average $20,000, $30,000, $40,000 per project.

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Chapter 2: What is Organice and how does it integrate with Slack?

48.659 - 66.243 Nathan Latka

And last year did, quote, several millions in revenue, call it $3 million in revenue. But what we talked about today was how he's launching these individual SaaS applications like Organize.app on the Slack app exchange, which helps you bring your org chart online. into your Slack channel. If you're a smaller team, that's maybe too early for the enterprise level org charts.

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66.263 - 69.068 Nathan Latka

He's just now got his first paying customers on that product.

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Chapter 3: Who are the typical customers for Organice's Slack tool?

69.088 - 89.605 Nathan Latka

55 engineers up at the holding co level, 1.5 of which we'll call it a person and a half working on the spinoff for OrganizeApp. We'll see what he does next. Hey, folks, my guest today is Andrew Phan. He is building a company called Organize, which helps founders and people ops teams of growing Slack heavy organizations by bringing the core of their HR tools into Slack.

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89.765 - 91.108 Nathan Latka

Andrew, ready to take us to the top?

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92.371 - 95.217 Unknown

Hey, guys. Nice to be here.

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95.919 - 101.411 Nathan Latka

We're good. We're thrilled to have you. From what I understand, you have a company called Upsilon where you work on side projects.

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Chapter 4: How did Andrew acquire his first paying customers?

101.431 - 109.148 Nathan Latka

And one of the side projects that has taken off is this one called Organize. That's N-I-C-E dot app. Tell me about a customer that pays for Organize app.

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Chapter 5: What pricing model does Organice use for its users?

110.917 - 154.898 Andrew Phan

Yeah, so we just started recently. The application was launched this March. And currently we have a bunch of paying users and a bunch of users which I hope will convert to the paid users soon. If I have to... describe an average customer, I would say that this is an SMB company which uses Slack a lot and which is probably growing and which is too small to start using enterprise-level HR tools.

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155.039 - 158.363 Nathan Latka

And when you say lots of paying customers, how many paying customers?

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159.745 - 161.848 Andrew Phan

Not a lot. Currently, we have five.

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162.588 - 163.149 Nathan Latka

That's great.

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Chapter 6: How does marketing on the Slack App Exchange work?

163.229 - 165.191 Nathan Latka

And what do you charge per month on average?

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167.033 - 170.977 Andrew Phan

We charge per users in their workspace.

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172.378 - 173.119 Nathan Latka

Okay, and how much?

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174.66 - 183.81 Andrew Phan

$1. $1 for a user if you pay annually or $1.25 for a user if you pay monthly.

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183.83 - 191.818 Nathan Latka

Okay, so $1 per user per seat per month or $1.25. And then how many seats do the five customers currently have?

193.334 - 207.861 Andrew Phan

In total, they have somewhere near 400 seats. So our MRR is somewhere near 400, depending on the amount. It jumps depending on the number of users.

208.462 - 213.512 Nathan Latka

Well, so why does it jump? I mean, if they use your tool and pay for it and get addicted, they shouldn't churn at all.

Chapter 7: What metrics does Andrew track to convert trial users to paid customers?

213.532 - 214.313 Nathan Latka

Why does it jump?

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215.609 - 239.544 Andrew Phan

It jumped to the positive direction. I mean, people, those companies, they are growing because, yeah, usually you need to visualize the organization if you want to grow. Because if you are shrinking, it does not make sense to visualize your existing team. So I would say that revenue is growing.

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239.564 - 242.528 Nathan Latka

And help me understand, Andrew, how you got these first five customers.

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244.01 - 263.281 Andrew Phan

Yeah, so this is not our first product which we launched on top of Slack. And what we realized is that Slack is a perfect place to start your first, I would say, bootstrap small business.

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Chapter 8: What future plans does Andrew have for his agency and SaaS tools?

263.641 - 289.18 Andrew Phan

Because once you release something for Slack, you can get into their marketplace. And basically, this is a free marketing tool for you. And this is how we got our first client. So we just released our application there. We wrote a description for this application where we mentioned some words like org chart, org tree.

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289.741 - 297.152 Andrew Phan

And our first customer basically found us using the search on the Slack marketplace.

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297.908 - 315.279 Nathan Latka

I want to go deep on how you optimize for Slack because I'm on the listing right now. Slack does not use ratings. So it's not like you can get to the top of a list if you get a lot of five-star ratings. But what you have in your description are bold words like org chart, birthday, work anniversary, manage PTO. How did you know what keywords to target?

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315.299 - 318.364 Nathan Latka

And does making them bold actually get you more traffic from Slack?

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318.631 - 351.38 Andrew Phan

So Slack Marketplace team is not huge, and the algorithms on how they rank certain applications are not that sophisticated in comparison to Apple Store or Google Store. So this is only my guess, and my guess is based on observation because we have two other applications in the marketplace. So they... rely on the application usage.

351.401 - 363.191 Andrew Phan

So for example, if you found some customers which are using you a lot, they're probably going to rank you higher.

364.212 - 372.54 Nathan Latka

So Andrew, they're tracking how many people click that green add to Slack button. So for you guys, last month, how many people downloaded Slack on the Slack directory?

374.521 - 412.383 Andrew Phan

Not a lot. Maybe... 25 uh yeah i'm saying not a lot because for our another tool we get like 20 30 downloads per day that tool is uh more It's less appealing in terms of a business. However, it has good keywords, good names, so that's why people install it. So for organized, we basically tried... We try to highlight our main feature, which is building our org chart.

412.824 - 432.068 Andrew Phan

And I guess most of the clients, they find us by typing org plus something in the search bar. Because if you do this, probably you will see us in the top. And basically, the number of results won't be huge. Probably like five, ten results in total.

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