Bluerabbitrevenue & funding

hello everyone my guest today is Bernardo Latif he is a high school teacher or it was where were eight years and he's an entrepreneur in web design for fifteen and gamification expert for eight years three as an international expert today he's focus on his company blue rabbit bernardo are you ready to take it to the top yes yeah very good okay so tell us about the company what are you doing how do you make money okay so what we do is that we developed a platform called blue rabbit and we salute to schools so that they can gain five classes or the whole school to get all together so we can actually track what players are interested and motivated to to do okay and it is a pure plumbing software as a service model these schools are paying monthly recurring fees basically it's a software itself it's uh you can you get a WordPress version or you can get an appended version you install with it and you work with it it's not a software a service is just a plane cloud software it's probably simpler so they're paying like a one-time fee for a license or something no they pay a monthly fee okay so it is a peer it is a software as a service model well yeah okay yeah okay I mean are you seeing healthy economics what are your tell me about your trend well this year we just managed to get we started up 2017 we managed to get something around ten thousand dollars but we're looking forward to our work hundred thousand uh by the end of this year okay so just to be clear at the end of we're at the right at the beginning of 2017 you were doing ten thousand dollars a month in revenue no idea by the beginning of seventeen we were doing nothing by the end of it we made only ten thousand dollars okay so what a small are you what do you at today what did you do last month around dollars okay around three thousand dollars and how are you how are you how are you scaling this up I mean how are you finding new customers to sign up we're having an online campaign and we're also having we have sales sales people going to schools selling the software directly okay how many people are on your team today that's seven people right now okay and how are you paying them if you're only making three grand a month oh it's based on Committee for salesmen these basin commission and we get some funding from capitalists one month ago how much everyone shares one month ago up how much have you raised five thousand ok 21,000 was that that was just a convertible note that was what what kind of financing was that was a convertible note or an equity round it took a liquid erode yakked and 50 we gave away 15% from four to five thousand okay so so that's a valuation of what some are on a home for $2,000 Yeah right yeah yes yeah okay so okay got it so this is summarize you have seven people on your team they're all commission based you're doing three grand a month in revenue right now at the beginning you just launched this about a year ago so it's all grow have this point you raise 25,000 bucks priced around you about 15% of the company how many customers are you serving today right now we have two pink schools four thousand four thousand reser users and we're looking forward to 150,000 growth due to a project we opened with it's called the engaging project with the Erasmus Foundation in the in Europe so we're looking forward to 150,000 growth in the next couple what does that mean hundred thousand worth of course of what growth of 50,000 registered players in the platform okay but registered players just increases your cost structure doesn't necessarily drive you more revenue right yeah in this case since we're actually solidly on their servers board racer cost they're just like getting the license and they're just working with it so they can put their own life courses through blue rabbit so it does not increase or cost at all okay why how do you look invert this huge pain user base and do I mean sorry this huge free user base into axel more revenue for the company well right now we're using it as it helped us use as marketing we won an award in November thanks to this because people believe in the party so we're using it as a marketing push so we can get more paying schools through this huge advantage by telling that we've got 150 thousand European students getting got it okay but just to be clear right now bernardo you have to paying schools that make up 3 grand it's about beige pay about 1500 bucks a month for 3 grand total yes more or less okay got it and what your jewel onto the company in sorry what what year did you launch the company in ok uh last year yeah just this year in 2017 ok 2017 and considered like exactly and where was I mean where was your head at when you did this you're you're a high school teacher you have your hands full teaching you like gamification I mean why start a software company actually I started developing blue rabbit because as a teacher I decided to give me five more classes back in 2010 and and I started figuring out that using Excel to gain 5 class was not enough so I develop a blog and then it did it was enough and so I add it started adding stuff to the blog things that players could upload their their own projects into it so blue rabbit has started to grow out of the class itself so I ended up developing it based on what I was teaching the way I was teaching why I was teaching so it turned into a good business and and it's not working and other teachers are inviting it and everybody's were like hey dude you should start selling this so we decided to take it to the next level and did you develop the whole thing you wrote all the code or do you have a developer Honor no well when a developer just is year but all the other lines of code were developed like me ok got it so you're the developer you're the business guy are you the only person that owns equity besides the investor no no no we're it's my other partner partner at the end and a partner Luis who is also helping me with the development at the end has been working with me for the past three and a half years and at least just guarding with when the other partner got in also I see and do you know yet I mean it's really really early but do you have a sense of what it costs you to acquire a new paying school we already had that it's something around between $50 and $100 ok English and how did you get to that number more or less we calculated the expenses my my partner there and has a lot of experience selling software to schools he's been working on that for almost 7 years and also calculating through the direct Commission and the cost of the cost of the software on the cloud itself what commission do you pay a salesperson it's 20% of the no it's sorry it's 30% of the year deal and then for the second year they get 15% if they get another signed up okay so and and the two schools right now they're paying fifteen hundred bucks a month each right it's not exactly they pay one is paying something around two thousand and the other one is being around went out okay so this okay my point is though if I take 30% of that year-long deal that's like five grand which is part of your tak but you just told me or cackles only a hundred bucks mm-hmm yeah more or less yeah but it's not right if you pay a sales person thirty percent of the deal 30 percent of two grand a month is a $5,400 Oh Michelle sorry yeah yeah I didn't count I'm sorry I'm sorry I didn't come for that yeah you're completely right about it yeah in in terms of cost of the school for a whole year yeah it would be around five thousand dollars but it's a little less based on I was just considering how much it costs us without considering the Commission I'm sorry about that you just think there who are there any other are there any other costs associated with the sale besides a commission at the salesperson mm no no no not right now we actually crunch that down there's no other there's no other cost right now maybe if you count a little bit of the development but we absorbed that with uh with a capitalist got it yeah now that makes a lot of sense I know that cost itself it's pretty much and and what is for the team is a seven where are you based today in Mexico City Mexico see I love that and most of your customers the two schools are in Mexico or Europe yes right now we only have them here in Mexico okay very good very good will Bernardo let's uh let's wrap up here with the famous five number one what is the last business book that you read it was it last what business book that you read rework good one number two is their CEO you're falling or studying right now uh I started following again Bill Gates a little bit number two is that what's your favorite online tool for building the company it slack by far number four how many hours of sleep take it every night how many what hours of sleep Oh you can actually track me in Fitbit it's around 7 1/2 hours every day I always get all the pay hours that's good and how old are you I'm 35 next Friday no congratulations in what's your situation Bernardo married single you have kids married married and he locates marry three dogs and one rabbit all right last question take us back 15 years what do you wish your 20 year old self knew that it doesn't matter how hard it will get it doesn't matter how dark it looks you're gonna get out of it don't worry about it guys it doesn't matter how dark it looks it'll be ok coming from a high school teacher of over eight years in Mexico City he had had now launched software called blue rabbit to gamify the classroom his peers and himself are using it a lot in their rooms launched in 2017 now as to schools paying for the software doing about three grand per month in total hoping a scale at ten grand per month in total by the end here of 2018 there's they're spending about five grand to acquire these new customers with a salesperson Commission model they have a team of seven right now bernardo thank you for taking us at the top no thank you