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SaaS Interviews with CEOs, Startups, Founders

She's Built a $500k/year Company in Bali Looking for $8m Pre-Money Valuation with Andrea Loubier of MailBird EP 205

14 Mar 2016

Transcription

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

0.031 - 18.364 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 talk.

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Chapter 2: What inspired Andrea Loubier to build Mailbird in Bali?

18.384 - 43.909 Nathan Latka

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 that I give away every Monday is Kim Dust. She's in the entertainment industry and is currently working a full-time day job and doing her side hustle on the side. Kim, congrats.

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Chapter 3: How does Mailbird differentiate itself in the email market?

43.889 - 71.55 Nathan Latka

For you guys' chance to win 100 bucks every Monday, simply subscribe to the podcast on iTunes now and then text the word Nathan to 33444 to officially enter. Again, text the word Nathan to 33444 after you've subscribed. Coming up tomorrow morning, Top Tribe, you'll hear from Scott Hansberry and he breaks down how to bet on poker players and make money while doing it with his company, YouStake.

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72.256 - 88.097 Nathan Latka

Okay, Top Tribe, good morning. Our guest today is Andrea Lubier. She's a travel addict who's obsessed with spicy food, third culture, and she's really a third culture kid who has a crazy passion about improving the unification of online communication, all starting with email.

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88.598 - 100.915 Nathan Latka

As the CEO of Mailbird and one of Southeast Asia's leading female thought leaders, Andrea is taking on Outlook from Silicon Bali, as she calls it. Andrea, are you ready to take us to the top?

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100.935 - 101.696 Andrea Loubier

Oh, hell yeah.

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101.876 - 101.976

Okay.

Chapter 4: What pricing models does Mailbird use and how do they impact revenue?

103.829 - 107.195 Nathan Latka

First off, tell me, how did you, so where are you right now?

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108.157 - 113.326 Andrea Loubier

I am in Bali, Indonesia. So tiny little tropical island in Southeast Asia.

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113.526 - 115.129 Nathan Latka

So you're building the business there, right?

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115.79 - 116.291 Andrea Loubier

Correct, yeah.

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116.471 - 119.897 Nathan Latka

I love that. Okay, so tell us what Mailbird does and how do you guys make money?

120.687 - 137.409 Andrea Loubier

All right, so Mailbird, basically, you can think of it as like a Swiss army knife for all your online communication. Essentially, it's a productive information management and communication tool that's packaged in a beautiful, basically kick-ass email client called Mailbird. Okay.

Chapter 5: What are the conversion rates for Mailbird's pricing strategies?

138.07 - 156.01 Andrea Loubier

And we sell it. We have a freemium-based model, so you can get it for free, but it limits you to managing three email accounts from any email provider. However, we also have a subscription-based model, so you can actually get it for $12 a year or pay one time upfront $45. And then...

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155.99 - 170.218 Nathan Latka

And you've won. I wanted to have you on because you've won all kinds of awards. PC Worlds, Best Free Stuff of 2013, IT Worlds, Best Windows Email Client of 2015. You must be growing very fast. Give us a sense of the size of the company. How many users do you guys have?

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Chapter 6: How does Andrea Loubier manage high customer churn?

170.924 - 190.291 Andrea Loubier

So we actually did a pretty big milestone for us. We actually just hit 1 million email accounts that are being managed from Mailbird. And so Mailbird not only is email, but we also provide messaging, calendars, chat, video meetings, and more. So yeah, we're actually over that now, but we just recently hit 1 million accounts that are managed from Mailbird.

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191.112 - 200.927 Andrea Loubier

And so now we're getting close to being over half a million dollar company since the end of 2015. and it continues to grow. What does that mean?

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200.948 - 203.893 Nathan Latka

Does that mean half a million, you're doing about $500,000 each year?

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203.953 - 205.978 Andrea Loubier

Exactly, yes.

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205.998 - 207.601 Nathan Latka

In annual recurring revenue?

Chapter 7: What funding strategies has Mailbird pursued?

208.462 - 213.773 Nathan Latka

Correct, yeah. Do you think of it, is it really a SaaS business? I mean, is the revenue pretty predictable?

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214.681 - 231.576 Andrea Loubier

Um, we've been doing a lot of testing over the last few years, but like definitely now that we're, you know, three years and we've definitely kind of found a repeatable, uh, solution that, that basically is a really solid, uh, funnel for the business. So, um, yeah.

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231.556 - 245.995 Nathan Latka

Well, I want to, I want to dive into that funnel a second before we do though. So I'm on the pricing page right now. You go from light, which is free pro, which is six bucks for the first year and pro lifetime, which is $22 and 50 cents, which people pay once for. So this is very interesting.

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246.035 - 258.812 Nathan Latka

You have three very different kind of things that most other companies, they test one of these, they have a free plan and they have a monthly recurring plan and they have a pay once and get it, you know, forever kind of plan, which one of these is making you the most money.

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Chapter 8: How does Andrea justify an $8 million pre-money valuation?

259.518 - 272.496 Andrea Loubier

So definitely the pro lifetime one, though, the ones that you pay once a year. We do have people that like to try the software, so they'll go for the pro, which is, again, the twelve dollars per year. Oh, I misread this.

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272.576 - 277.443 Nathan Latka

Hold on. Let me just clarify the twenty two dollars and fifty cents when it says pay once. That's pay once for the year.

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278.464 - 278.905 Andrea Loubier

Correct.

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279.005 - 280.547 Nathan Latka

OK, OK, got it.

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280.882 - 294.856 Andrea Loubier

And you're probably looking at one of our little hacks that we have, too, where as a first time user to the website, you actually get a good deal on the actual software within the first few minutes after visiting. So I want to ask you about that.

295.096 - 311.416 Nathan Latka

So I see I see the little lightning bolt with the welcome flash sale for the next 57 seconds and 28, 27, 26. Oh, my gosh. I'm like panicking. I need to buy this very fast. Yeah. I'm half joking, but not really. Some people will have that reaction. How's this working for you in terms of conversions?

312.197 - 332.067 Andrea Loubier

It's been really, really good. Actually, we actually saw a pretty significant increase in conversions to paying customers with that. So a couple of things that we're actually in the process of doing is actually looking at the pricing structure. So is it the fact that there is this like flash sale with a limited time, you know, offer for this deal where you can get the software done?

332.047 - 358.257 Andrea Loubier

for half off or um is it a matter of like oh the the software just is more you know attractive at half price so we're doing a lot of testing there but ever since we put this this banner up it's been really really interesting to see how many more people actually convert well let's let's dive into that because listeners might be going i wonder if we should test this on our website so before the banner if 100 people visit your website how many convert into a pay plan

359.198 - 363.202 Andrea Loubier

And to a paid plan, we have about 20% that will actually convert to paying.

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