SaaS Interviews with CEOs, Startups, Founders
They Hit $24k MRR In 6 Months Helping Ecommerce Brands Model Customer LTV
08 Jan 2022
Chapter 1: How did the guest achieve $24k MRR in just six months?
So to date, we've been revenue-backed, but we're in the process of raising our first venture round.
Okay, got it. And when you say revenue-backed, has PredictWise been a bunch of money?
Yeah, like bootstrap. So we were using revenue that we're getting from our customers to maintain the business.
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.
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 of these podcast interviews. Check it out right now at getlatka.com. Hey folks, my guest today is Richard Purcell.
He's building Accurate. That's accurate.com. Actionable LTV predictions. Richard, you ready to take us to the top? Let's do it. All right. SaaS folks here, LTV. So is this a tool specifically built for SaaS founders?
So we're primarily working with B2C organizations. And the biggest problem that we're seeing is that leading brands want to be able to measure their business, their customers, and campaigns on LTV. Because if they know exactly how much a customer is going to spend in the future, it'll inform their marketing investments, forecasting, and general health of the business.
But the biggest problem is they don't have the data and past purchase data alone does not predict the future. And third-party data has always been unreliable and it will soon cease to exist with all the changes and rules and regulations. And so what Ocreate does is we bring in external privacy first data on every adult American's in-depth behaviors and attitudes.
And when we match this database with a brand's customer data, the outcome is a 90% plus accurate LTV prediction at the individual level, which helps brands make the right investments and the right customers throughout all phases of the lifecycle.
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Chapter 2: What challenges do e-commerce brands face in measuring customer LTV?
I see. I see. Okay, got it. So you spun out. Now, does that mean the parent company is sitting on the cap table of Accurate right now?
That is correct.
Okay. So how do you structure that? I mean, why not just go out and start your own thing from scratch? What do you get from the parent company that it was worth giving up a bunch of equity for?
I think primarily what was the biggest value add was being able to leverage the database that Occurate built over the last five years.
Sorry, that Occurate built or the parent company built?
I'm sorry, that PredictWise built. Yes.
Got it. Sorry, it's called PredictWise?
Yes.
And they were exclusively working with Ecommerce brands as well?
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Chapter 3: How does Accurate's technology improve LTV predictions?
And when you say revenue back, that's predict-wise putting a bunch of money?
Yeah, like bootstrap. So we were using revenue that we're getting from our customers to maintain the business.
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Again, both plural founderpath.com forward slash products forward slash valuations. Okay. So predict wise, when you did the spin out, they didn't write you a big check to help fund early stage operations. No.
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Chapter 4: What pricing model does Accurate use for its services?
So how would you fund yourself? How'd you pay your salary like the first month or two?
Yeah. So that first came from a first customer that we were able to close. More details are probably best to ask our co-founder and CEO. But I know that... What are you? I'm on the founding team. So I'm leading all of our go-to-market. I was one of the 3 first co-founders.
Okay. So how did you guys assemble that team? Did you just sort of say, Hey, we're all equal. We'll each do 30% or what?
Yeah, so that's probably detail that our CEO is best to share that with. But we started with these three that all started by working with PredictWise and decided to spin off into Occurate.
But you shy away from answering bigger questions, which tells me, would they view you as a third co-founder? Do you have enough equity where they'd say, yeah, Richard's a third co-founder?
I have enough equity in the company where it makes me feel like I have ownership as one of the first people to join.
Yeah. So they might call you like head of marketing or something who's incentivized with equity versus like being a true sort of ground level stage one co-founder.
Yeah. I mean, I think usually the co-founder title is when someone has over 10% equity. I have less than that.
Okay. Fair enough. Fair enough. Got it. Okay, cool. Talk to me about where you see future growth coming from. What's sort of go to market for the next 12 months?
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Chapter 5: What is the backstory behind the founding of Accurate?
What's the team size today? How many folks?
So we have about five full-time employees. I'm the only non-engineer on the team. And we are currently hiring more people for our first full-time salespeople, engineers. And then we're also supported by a team of contractors that help us with sales, marketing, and engineering.
Just to be clear, so the five includes you and the two other co-founders? Yes. You talked about contractors helping with sales. Are you working with a firm like Alleyoop to outsource your SDR team? Or what does that mean?
Yeah. So we're working with an outsourced SDR team as an agency. We're working with another agency to help with content marketing. I'm working with another part-time designer. And so we find that working with these people part-time helps us reduce costs as well as reduce risk.
Which firm do you choose to do the outsourced SDR work?
They're called leadgenerator.io.
Leadgenerator.io?
Yeah. They've done well so far? Really well, yes.
Do they actually spin up a human, like an SDR? Can you hire that human or no?
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