How Algopix CEO Ori Greenberg grew Algopix to $3.8M revenue and 5K customers in 2024.

hello everyone my guest today is zory greenberg he is the ceo and co-founder of comic called algo picks the only place to understand ecommerce market share pricing and promotions of your competitors and categories in real time he's powering fortune 50 cpgs and marketplaces algopix gives you a window into now not weeks ago with 1p plus 3p coverage you can adjust your current market conditions boost sessions and conversions with more relevant merchandising and pricing all right are you ready to take to the top yeah now you say in this bio that you put in here the only place to understand e-commerce market share i mean there's a lot of players in this space why do you use the word the only place to understand this we're actually the only ones who provide market share insights into sales that occur on amazon.com as well as walmart ebay google shopping etc there are other players that do only one of these platforms usually it's amazon and they're basing their data on scraped kind of information we actually have transactional data so that that makes us unique in this that's a huge that's obviously a huge advantage so we want to understand this advantage how did you get access to such exclusive data that nobody else can get access to so we put it as obviously our goal to do that so we support more than 70 000 brands and online sellers that share data with us in return for using free e-commerce tools okay so you're not you're not getting a direct feed then from amazon or from walmart or from these ecommerce players you're getting them from brands that use you you then are using their data and selling it back to other people we're processing and anonymizing the data and then we're selling it yes that's correct okay got it uh why can't sorry i don't understand why can't somebody else do that well they can it's just a huge data set that requires a lot of data processing i see i see okay so give me more of the backstory we had you back on the show um earlier but for people that missed that what kinds of customers are are you know the average user of your data is mainly cpg brands so it would be the cpg brands as well as the um marketplaces themselves we have customers like google shopping facebook's marketplace walmart so both okay both and you founded the company in 2016 correct that's correct and walk me through sort of how you've grown over the past 12 months you know last time it came on i believe it was i think middle last year right wow i think was maybe two years ago something like that okay maybe two years ago even um you know obviously we're in the middle of pandemic there's a lot more happening on e-commerce over the past 18 to 24 months how's that impacted your business i think when you came on you said you were working with about 2000 customers how many are you working with today so a lot more we started by serving uh smbs uh we grew and went up market to kind of mid-level customers uh and we're now serving probably 1450 fortune 100 companies as enterprise large enterprise customers so i would say we have probably about five thousand smbs uh that we're working we're walking away from that business model we need to focus on the larger uh companies probably about a couple of dozens of meat size companies paying probably a thousand dollars a month on average yep um and we're now focusing on companies able to pay six seven figures to get tons of value and actually increase their market share and how many of those kinds of customers do you currently have probably about a dozen a dozen do they graduate up i mean can't they start as an smb then move to a grand a month then move to 10 grand a month well they can but now that our solution supports really the biggest companies we focus on getting to them initially and not kind of maturity existing customers it's just a different sales process different type of customer and and so how is this you know churning off grandfathered accounts is obviously sort of a delicate act you don't want negative word of mouth hitting the market um but you also don't want to force them into a plan that's 10 times what they're used to paying so how do you gracefully churn these folks off great question realizing that that's not our market but still supporting the product because it's the same kind of infrastructure for the enterprise product we're gonna give our product away for free that's our kind of way to thank the community so we're going to continue to support we have over 70 000 free users we're going to continue supporting them i see okay now those 5 000 smbs on your platform are they still paying that smaller rp about 20 a month yes yes we do encourage them to kind of walk away from that paying model to the data sharing model which would benefit them and us and in terms of your total monthly revenue right now how much of it is still smb focused uh less than less than 40 okay got it got it so 5 000 at 20 bucks a month is about 100 grand a month and if that's 40 of your revenue total revenue something closer to what 220 a month right now 230. i love your real-time calculations you're you're great we uh pay us average thirty four dollars a month so it's a little bit more but you got the number the down numbers uh about right okay got it so total business call 230 000 per month that's obviously up significantly since our interview a long time ago but what is that up you every year um i must tell you that these are the numbers that we're aiming to complete 2020 uh but it's it changed dramatically over the past 12 months since we started focusing on enterprise customers well i guess the a more clear question i should have asked was exactly 12 months ago how much were you doing per month uh we grew about 300 last year okay so over the past 12 months you've grown revenue about 300 percent that's great okay got it got it so that would you know again if you're doing about 230 uh per month right now 230 000 that would be up from 70 000 uh a month about a year ago something like that and and would you credit most of that it sounds like you would you'd credit most of that growth to onboarding these thousand dollar a month accounts or these dozen or so even bigger accounts than that the enterprise deals the enterprise deals are the biggest growth engine where i believe that by the end of 2021 will still stop supporting the medium-sized businesses yep and have them all enjoy your free plan obviously have you been able to do this without raising additional capital or did you do an additional raise no we didn't need to raise we generated more revenues than expected that's great so it's still only three million raised yes and last time you came on you were still burning to drive growth are you still burning company and you're comfortable with it or have you gotten back to break even um we're still burning but we're okay we have a decent runway and our existing investors are always there to back us up if we spend more than we planned on which haven't hasn't happened we're on the good side of coffee i'd say yeah why i mean most e-commerce friends right now if they've got capital they can access they want it so they can drive growth right now i mean e-commerce is the thing right now and people can't go out and shop i mean you haven't raised does that mean you're not quite sure where to spend money to get new enterprise customers no we plan on raising funds in q2 2021 we know probably grow our sales team and focus on that you're right why is that though you already have great growth 300 year over year why do you why wait to raise we're not ready organization wise in a healthy way the question is it makes sense just not the right timing for us so how many folks are on the team today i'd rather not talk about that if you're okay with it uh i'm i'm okay not pushing there i am curious why you feel like that's a competitive advantage to for people not to know your team size right why is that an advantage well if i tell you that then i'll tell you the theme size but i think we're very effective in terms of uh producing the product versus the number of you know the headcount um yeah i mean look one of my favorite things to measure is revenue per employee right teams that can do more with a less number of employees are obviously you know great businesses uh but that being said if i go to your website and and click on your linkedin link in the footer a linkedin profile we can go there and see it lists 17 employees so i'm just a little confused why they're listed on linkedin but you wouldn't want to reveal them in a podcast well i'd rather not say the number but you have right about the number it's it's plus or minus that number i see you you meant the reason i wanted to go here is because you mentioned your sales or getting in the right spot to be able to uh raise the right amount and not raise too quickly do you have quota carrying sales reps now are you still doing all the sales i'm doing most of the sales okay so i mean are you nervous about that how do you pass that playbook off to somebody else and trust them enough to execute i can't wait to learn from other people about that this is my first time doing enterprise sales i'm sure i'll learn a lot i wouldn't say nervous i'm excited about it i just feel like i am not in a position to give someone the handbook yet and i feel like when i hire it should come with a basic handbook so we're still learning we're good we have a good product...