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SaaS Interviews with CEOs, Startups, Founders

SalesProcess Did $1m Last Month Helping Brands Drive Sales, 40% Net Profit

20 Nov 2020

Transcription

Chapter 1: How did SalesProcess achieve $1 million in monthly recurring revenue?

0.031 - 19.255 Darren Ong

Yeah, so it's already past a million in terms of monthly recurring revenue the last few months. So the last few months have been, you know, probably month on month been growing about, I'd say, 15%.

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21.142 - 41.85 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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41.83 - 52.925 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

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53.125 - 57.632 Darren Ong

We've got to grow faster. Minimum is 100% over the past several years.

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57.652 - 68.867 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Bien before Google acquired his company for $2.6 billion.

69.117 - 73.18 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

73.941 - 100.835 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello, everyone.

100.875 - 115.302 Nathan Latka

My guest today is Darren Ong. He's a passionate executive director and co-investor for high growth SaaS and private equity and the private debt sort of ecosystems. He invested in food, fintech and sales process.io early on. Darren, you ready to take us to the top?

115.322 - 115.542 Darren Ong

Yep.

Chapter 2: What growth strategies does SalesProcess implement for clients?

571.294 - 575.779 Darren Ong

I'm actually expanding for the Asia Pacific and Middle East.

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576.78 - 585.249 Nathan Latka

Yep. Interesting. Okay, got it. So what would you say Nick helped you do to grow from $5 million in total transactions volume in 2017 to $18 million in 2019?

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587.211 - 616.95 Darren Ong

Yeah, okay. Great question. So in terms of the website, the landing page, the branding... What the foundational copyright for our solutions for Fluid FinTech was harnessed and re-emphasized to the target audience, which were the B2C users. So that was the first. Second was our packaging in terms of the services, basic, intermediate, advanced services.

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617.386 - 629.298 Darren Ong

Then also use cases, case studies, a lot of work went into driving the outbound prospecting at traffic.

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629.598 - 647.097 Nathan Latka

Darren, sorry, the website gets like no traffic. I mean, I'm in the reports right now for Ahrefs and SEMrush. You don't even register on Alexa Traffic Rank as a top site, not even in the hundreds of millions. There's only two sites linking into the site. There's very little design. I don't even see pricing plans that you just described. Why don't I see any of that?

647.358 - 651.326 Darren Ong

Are you at F-L-U-I-D-F-I-N-T-E-C?

651.867 - 652.588 Nathan Latka

Dot com, yes.

652.648 - 654.973 Darren Ong

Sometimes it's, yeah.

655.775 - 664.572 Nathan Latka

I mean, I'm looking at the reports right now. There's no traffic. I mean, so when you say he drives you traffic via ads and built your inbound engine, well, there's nothing here to show for it. There's no traffic.

Chapter 3: How does SalesProcess help companies identify product market fit?

802.085 - 804.548 Nathan Latka

You're filing a tax return. You put this number.

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805.129 - 806.931 Darren Ong

Yeah, $16 million.

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806.951 - 807.532 Nathan Latka

$1.6 million?

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808.593 - 809.074 Darren Ong

Yeah, $1.6 million.

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809.094 - 810.655 Nathan Latka

And what do you guys think it'll do in 2020?

814.46 - 827.056 Darren Ong

Going by the $800,000... Going to touch easily... Easily about $20 million. Okay.

827.337 - 830.381 Nathan Latka

You said in 2019 it was doing $800,000 a month in revenue on average?

831.822 - 850.951 Darren Ong

Yeah. So it's already past a million in terms of monthly recurring revenue the last few months. So the last few months have been probably month on month been growing about I'd say 15%.

851.692 - 862.163 Nathan Latka

How did you do $16 million in total revenue in 2019 if the average monthly recurring revenue was $800,000 per month? That would be about a $9.6 million in revenue, not $16 million. Where did the extra $6 million, $7 million come from?

Chapter 4: What pricing strategies does SalesProcess recommend for SaaS companies?

1176.166 - 1178.889 Nathan Latka

$7,900? And how did he get to that number?

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1181.291 - 1201.539 Darren Ong

So... we've, we've got valuation, we've got, you know, uh, in fact, you know, the IRR and the, how, how he's, um, like doing the financial statements and so forth. So, so he takes it from, you know, the financial statements that, uh, come in, uh, you know, it's quarterly.

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1202.74 - 1208.908 Nathan Latka

So, so what, I mean, maybe a better question is last month, what, what was profit? How much hit the bottom line is cashflow?

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1211.875 - 1222.416 Darren Ong

I think for each engagement at, say, $21,800, the profit looks at... Can we just look at the whole business?

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1222.577 - 1227.006 Nathan Latka

So just all last month, September of 2020, what was total profit in September of 2020?

1228.449 - 1232.517 Darren Ong

September, in percentage, it would have been around 40%.

1232.918 - 1234.64 Nathan Latka

What is it in a flat number?

1235.561 - 1242.568 Darren Ong

Because we pay the commissions, right? So that's about, you know, it prorates to 20% or whatever. I understand that.

1243.408 - 1250.395 Nathan Latka

What's the flat number? Percentages are hard. 40% of a dollar is 40 cents. That's not that impressive, even though if it's profit, what is the actual profit number?

Chapter 5: Who is Nick Cosman and what role does he play in SalesProcess?

1291.289 - 1295.493 Darren Ong

the percentage of the... Darren, this month just happened.

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1295.513 - 1302.761 Nathan Latka

Sorry, I don't understand why you're talking about percentages on projections. If you just look at September, you're about to close out September. What will total profit be in September?

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1305.244 - 1308.787 Darren Ong

It's not being computed yet. That's what I'm trying to say.

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1309.128 - 1314.514 Nathan Latka

What was it in August? What was it the month prior then? The last month that you completed, what was profit?

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1316.656 - 1327.835 Darren Ong

In August, Give or take about $440,000. Okay.

1327.855 - 1332.99 Nathan Latka

And why do you guys decide to pay that out instead of reinvesting it back into the business? How do you make those decisions?

1334.827 - 1361.998 Darren Ong

Yeah, so Nick actually has a lot of mastermind events now. So he's reinvesting a lot more on the strategies for the premium, the diamond package, where he's going to actually have a lot more tracks in terms of the mastermind events, seminars, and so on. So these are more on the...

1362.164 - 1384.041 Darren Ong

uh, his diamond program, uh, that he, he meant, uh, sort of, uh, gives a, a very harnessed look in terms of, you know, uh, and so on. He, if you know the background, he, he was also, you know, previously mentored by all the, the greats, you know, like high low, high low pairs and, and so on.

1385.844 - 1388.288 Nathan Latka

Got it. I think people will make their own judgment.

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