SaaS Interviews with CEOs, Startups, Founders
No One Is Talking About This Multi-Million Dollar Tech Company in Barecelona with Gina Tost of GeneApp Episode 238
25 Mar 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. 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.
And I'm your host, Nathan Latka. Okay, Top Tribe, this week's winner of the 100 bucks is Rhett Gillins. He's in the restaurant industry and he feels stuck. He wants to start his own software business. So congratulations, Rhett, for your guys' chance to win 100 bucks every Monday morning.
Simply subscribe to the podcast on iTunes now in order to enter and then text the word Nathan to 33444 to prove that you subscribed. Coming up tomorrow morning, you guys are going to hear from Joe Fairless. Let me break down how a 30-year-old bought a $6.2 million apartment complex and makes exactly how much in cash flow? A lot, folks. A lot. Good morning, Top Shrive.
What a great morning it is this morning. You're going to love our guest. Her name is Gina Tost, and she's the co-founder of the app promotion platform called TopShrive. GNAP, the first smart and programmatic CPI mobile ad tech network from Barcelona in Spain. She's been featured on Wired Magazine as one of the top 100 startups of 2015.
She's also a journalist with broad experience and a focus on mobile technology, startups, and video games. She's worked for TV channels, newspapers, websites, and radio stations worldwide across Spain, Latin America, Japan, and many others. She's also writer of the book Vida Extra.
uh and it i'll tell you what it's having a lot of success it's a book about video games and design gina are you ready to take us to the top yes let's do this okay first things first you're joining us from barcelona correct yes very good so tell us more about gene app what does it do and how do you make money
Okay, we are an app promotion platform. If you look at it from the outside, it seems like an affiliation platform where anyone can come and can promote mobile apps. But if you're looking, Gina from the inside is a tech company. What we do is we create tech solutions for every player here. For example, for advertisers, we help them optimize their promotion, their app promotion.
For networks, we offer them the best paid campaign with all the offers worldwide in one invoice and one payment. And for example, for influencers and bloggers with different tools, they can, for example, have their own white label app store or they can have smart links. What we do is we have a transversal view of the market since we are integrated with every player in the market.
Hold on, hold on, Gina. Gina, I'm going to stop you. Take me back a second. I'm not following. Give me a live example of how this works. I'm a blogger. How do I use GNAP?
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Chapter 2: What is Gin App and how does it work?
I don't have the number right in front of me, but it's about an average 100,000.
Okay, so what was the 750 number you just gave me all of 2015? Yes. Oh, got it. Okay, got it. Got it. That makes sense. Okay, so annual revenue, the total revenue that you made as a company then in June 2015 was somewhere around 30, you know, you know, 320,000 ish. Yes. Okay, got it. And is this the only way you make money is by taking percentage of the ad spend? Or do you have some other model?
That's our model.
Okay, got it. I noticed you have a monthly payment starting at $100 or 100 euros per month. That doesn't seem like a percentage cut.
Yes. What we have realized is that we have a lot of data. So maybe this year we are starting to do something with this data.
So what month did you launch that monthly payment option?
Since the beginning.
Okay, so you just told me your only revenue stream was a percentage of total ad spend. But on the website, you have people paying a monthly fee as well.
Is the monthly fee making up... The monthly fee is based on your performance.
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Chapter 3: How does Gin App support bloggers and influencers?
Well, that's why it's an average. So you have 300 you're working with. It sounds like they're spending about 100 grand total and you're making, I think you said 30% on the 100 grand. So you're making 30 grand from 3000 advertisers. Is it fair to say you're making about $100 per advertiser per month on average?
Um, no more, more because some of the advertisers, sometimes they don't have campaign. For example, some advertisers are focused on, um, let's see, uh, Christmas or got it. Or like waves, you know, uh, they don't want to promote, for example, candy crash this month and they are going to wait. So basically our average invoicing is 1,000.
What does that mean, average invoicing is $1,000?
When I invoice them monthly, our advertiser, the invoice average is $1,000. I have $3,000 to $100. Okay.
Do you consider yourself a software as a service company?
No.
Okay. Got it. Okay. So I'm trying to put a square peg in a round hole here. What kind of model is this then? Would you just call it like a marketplace?
Yes.
Got it. Okay. That makes good sense. So you're taking 30%. What about... Are you tracking things like what it costs you to sign up a new advertiser?
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Chapter 4: What is the average cost per install (CPI) for app promotions?
What do you mean? How can you be raising capital and not know if it's going to be a convertible note or an equity round?
Oh, no, no, no. I didn't understand your... No, it's going to be an equity.
Okay, got it.
So this will be your Series A. And we are going to spend this on marketing.
How much are you raising?
Half a million.
Half a million. And what valuation?
Five.
Five million pre-money?
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Chapter 5: How many advertisers and sources does Gin App work with?
Most of them.
Over 10,000?
Yes.
Over 50,000.
I don't know that number, but more than 10,000. Yes.
Okay. More than 10,000. Okay. All right. Well, Gina, hey, before we get into my favorite part of the show, if people want to connect with you online, where can they do that?
We are on social media, basically on Twitter. They can follow us on GNAP. We also have a blog at GNAP.com and of course, LinkedIn.
Okay, Top Tribe, do not forget your chance to win a hundred bucks right here on the podcast every Monday. It's very simple. You just subscribe to the show on iTunes. And then once you've done that, text me to prove that you've done it. My number is 703-431-2709. Subscribe now and text me to enter 703-431-2709. Okay, top tribe, I have to tell you, many people go, Nathan, you came out of nowhere.
Your website's growing so fast. How'd you do it? The answer is simple. So I use HostGator. I don't know if you guys know that, but I use HostGator. And the reason I do, they have like about 4,500 free templates I can use because I don't code. They've got a great e-commerce plugin. And guys, I bug the heck out of their support. They've got 24-7 support, which I love.
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Chapter 6: What revenue did Gin App generate in 2015?
I'm hiring people, so no.
How many hours do you get?
Uh, five, six.
Okay. That's not horrible. Okay.
I don't have a family. So if I ever have a kid, maybe, but now I'm just very good.
Last question, Gina, what would you tell your 20 year old self?
Focus on learning about everything because you will never know when are you going to use it?
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Chapter 7: What challenges did Gin App face in its early days?
focus on learning everything top tribe. There you have it. What an episode, what an episode from Barcelona. Gina started from nothing. She now has, Oh, she's helped bloggers make over 10,000 bloggers make money by placing ads for over 300 advertisers. She's she works with, they did 750 grand in revenue processed in 2015, which meant they made 30% or about 30, 320 grand on that.
now raising at a $4.5 million pre-money valuation, raising 500K and really leading Barcelona. Gina, thank you for taking us to the top.
Thank you very much.
If you guys enjoyed Gina today, go back and listen to Michael from yesterday. I'll tell you what, this entrepreneur served 10 years in the army, and you just won't believe what happened after. Top Tribe, I love giving away free money. I feel like Oprah giving away cars, and I have something special for you today.
How many of you have heard our super sharp guests talk about success they've had with Facebook and Google Ads? Well, all of you listening right now, yes, if you're listening, you get $100 in free AdWords. Here's how you get it, okay? Again, thanks for listening. Get the free $100 from Google, right when you sign up with my website host provider, HostGator. Go sign up now to get your free money.
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