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SaaS Interviews with CEOs, Startups, Founders

Nigeria Based Referbox hits 52 on Waitlist. Student Founder Launching Paywall Next Month Targeting $1k MRR

14 Dec 2022

Transcription

Chapter 1: What is Referbox and how does it aim to help businesses in Africa?

4.992 - 42.91 Nathan Latka

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 of these podcast interviews. Check it out right now at getlatka.com. Guys, referbox.app, he started coding it back earlier this year, 2022. They've got 52 on the wait list.

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42.93 - 57.806 Nathan Latka

They're launching pricing here in one month, hoping to get a thousand bucks in MRR quickly by getting customers to pay 30 bucks a month. Their idea is to build on top of Flutterwave down in Africa, Nigeria, specifically this referbox app will enable you to get more referrals into your stores to sell more product.

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58.126 - 70.844 Nathan Latka

They're working on building integration right now to Flutterwave, again, as they look to scale. Hey folks, my guest today is Damilare Olade. He is the founder of a company called Referbox App, which is a referral marketing tool for Africans.

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Chapter 2: Who is Damilare Olade and what inspired him to start Referbox?

70.864 - 86.427 Nathan Latka

He's a software developer and launched this back when he was, he started his journey when he was 20 in terms of the startup world. His team won the top 10 teams awards at Africa Hacks Hackathon in his home country of Nigeria. And he's passionate about solving problems with code. All right, Damilare, are you ready to take us to the top?

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87.668 - 88.309 Damilare Olade

Sure, let's go.

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88.93 - 92.796 Nathan Latka

All right, so the website, well, what is the website? It's referbox.com?

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93.94 - 98.286 Damilare Olade

Referbox.app. We couldn't get it.com domain. Yeah.

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Chapter 3: What challenges do startups in Nigeria face when acquiring customers?

98.747 - 105.938 Nathan Latka

That's okay. Okay. Referbox.app. And talk to me about what your customers look like. Who are they? And give me an example of how they use you.

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106.819 - 126.685 Damilare Olade

Yeah. So major customers are startups who want to use referral marketing as a leverage to acquire customers and also like grow their customer base. But we have a second market segment, which are small businesses. And I don't know if you want me to run you through how we started.

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126.705 - 133.554 Nathan Latka

No, well, I mean, I'll ask all the questions. Tell us first, what's the average customer paying you per month right now?

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134.636 - 151.858 Damilare Olade

So the funniest thing is that we're still in private beta. We just put out our private beta a few weeks ago. Incredibly, we have about 52 startups who are on our week list of private testing with three startups in Nigeria.

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152.378 - 162.713 Nathan Latka

So you're pre-revenue right now. You haven't launched yet, but you have five zero, you have 50 startups on your way list. 52. Tell me how you got them on your way list. How'd you build it?

Chapter 4: How did Referbox build its initial waitlist of customers?

164.416 - 189.035 Damilare Olade

So I just made a tweet that we just launched and I spoke about the problems current startups in Nigeria face when it comes to acquiring customers. You need to do ads, you need to do influencer marketing and all of this does not really guarantee you the type of customers you want. And referral marketing B, it's a platform where you need to do less to get more.

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189.515 - 199.032 Damilare Olade

And with that, surprisingly, we're able to get about 52 people on that weekly. And these are businesses that have hundreds and even thousands of customers.

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199.372 - 203.479 Nathan Latka

That's amazing. So when do you plan to launch your pricing, your paywall?

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204.337 - 214.829 Damilare Olade

Yeah, we plan on launching in about a month because we have a start-up competition we are planning for in about a few weeks. So that's one of the things that's actually pushing things back.

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215.75 - 217.071 Nathan Latka

So you're launching in one month?

218.153 - 220.255 Damilare Olade

Yes, in a month.

220.776 - 224.24 Nathan Latka

And how much money do you want to make in the first month?

225.481 - 231.728 Damilare Olade

In the first month, in terms of maybe $1,000. $1,000.

232.366 - 235.952 Nathan Latka

And how many customers would that be? How many people do you have to get to pay you to make a thousand bucks?

Chapter 5: When is Referbox planning to launch its pricing model?

243.303 - 243.624 Nathan Latka

How many?

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243.644 - 248.031 Damilare Olade

30 active. Yeah.

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248.051 - 251.837 Nathan Latka

Okay. So you're going to charge like 30 bucks a month, something like that.

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252.678 - 269.634 Damilare Olade

Yes. And the interesting part is big, big companies tend to pay more because then they have like bigger user base and like we require more API requests and all of that. Yeah, that makes a lot of sense.

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269.654 - 271.496 Nathan Latka

Did you build this yourself or do you have a co-founder?

272.557 - 276.703 Damilare Olade

Yes, I have a team. I have two co-founders.

277.484 - 279.526 Nathan Latka

How much equity did you give them?

280.928 - 283.672 Damilare Olade

Yeah, I don't know if I can say that.

283.712 - 285.033 Nathan Latka

You can say it. They're not listening.

Chapter 6: What pricing strategy does Referbox plan to implement for its customers?

298.461 - 301.866 Nathan Latka

Okay, so you have 33%, they each have 33%, and you're off to the races.

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303.489 - 315.529 Damilare Olade

Not that equal, but yes, somewhere in the balance. I'm the CEO. We don't have roles yet, but I'm the main guy in the team.

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315.796 - 319.5 Nathan Latka

Yeah, fair enough. Are you guys bootstrapping or have you decided to raise capital?

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319.52 - 331.772 Damilare Olade

Yeah, we're bootstrapping. We're bootstrapping because we have a roadmap we want to meet and we want to make sure we do what we really want and also grow at a steady pace.

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332.652 - 340.84 Nathan Latka

Interesting. And obviously, if you're bootstrapping, that means you have to pay for rent and meals and all that right now. You don't have any revenue from the company. So how are you paying your bills?

341.861 - 361.273 Damilare Olade

Yeah, so I'm a student and I also work part-time building websites for brands and businesses. So I make money from that. My co-founders also work in different companies where they can use it to source for funds. But that's how we make money for that.

361.814 - 365.18 Nathan Latka

So when are you guys going to quit your full-time jobs and go all in on the company?

366.622 - 372.571 Damilare Olade

So the thing is, we're students and I'm in my third year. I'll be finishing next year.

Chapter 7: How are the roles divided among the co-founders of Referbox?

372.591 - 378.516 Damilare Olade

So by then, I'm That's awesome.

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379.037 - 381.322 Nathan Latka

When did you write the first line of code for Referbox?

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382.825 - 394.724 Damilare Olade

It was February 22nd this year. And it was, it just came as an idea. And from there we are like, into what it is now.

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396.125 - 411.46 Nathan Latka

Referbox.app. Very cool. So 52 on the wait list, launching in one month. You want to get 30 customers paying 30 bucks a month for your first thousand bucks in sales. Your bootstrap. Is there anyone else working on this besides the three founders?

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412.521 - 414.183 Damilare Olade

No, no. Just the three of us.

414.843 - 419.648 Nathan Latka

Just the three of you. Okay. And how do you split the roles? Do you do all the engineering?

420.758 - 424.864 Damilare Olade

So my two co-founders are major engineers.

Chapter 8: What are the future plans for Referbox in terms of expansion and features?

424.884 - 445.534 Damilare Olade

So I do front-end development, the UI, UX, and also I do the business side. And my two co-founders are like basic engineering, back-end stuff. So we split the roles since we're kind of building like a very technical product. So we're trying to focus more on the engineering part first.

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445.598 - 451.524 Nathan Latka

That makes sense. And why is $30 a month the right price point? How did you come up with that?

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452.886 - 470.965 Damilare Olade

So first, we did a research on existing platforms around the world. Obviously, there's none in Africa yet. So we did a research on GrowSolve, ReferralRock, and the rest. And we figured that that's like a good enough pricing amount. Yeah.

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471.518 - 478.107 Nathan Latka

Okay, well, we'll see what happens. We're rooting for you. Anything you want to sneak in here before we wrap up with the famous five?

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478.127 - 501.375 Damilare Olade

So there's something really different about Referbox that I really love to talk about is the fact that, so we started Referbox as a platform to help small businesses, acquire customers and all of that. And our major plan is to provide APIs and plugins. So allow these small businesses to integrate on platforms, like, for instance, Shopify, or there's a Nigerian platform called Flutterwave Store.

501.395 - 521.686 Damilare Olade

I've heard of them. So, for instance, there's a small business. In Flutterwave Store, you can create a referral marketing campaign, share it to your friends and your family, and they join. And we have a marketplace app for those people, so they can manage their rewards. If you're giving them coupon codes, you can manage it on the app. So, this is what other platforms are.

521.706 - 525.792 Nathan Latka

So, Damoleri, are you launched? Are you launched on the Flutterwave AppExchange already?

526.582 - 535.094 Damilare Olade

No, we are working on that because Flora is a big company and we are trying to take it step by step.

535.555 - 540.442 Nathan Latka

We're rooting for you. In the meantime, let's wrap up here with the famous five. Number one, what's your favorite book?

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