How Feedvisor CEO Victor Rosenman grew Feedvisor to $15M revenue and 500 customers in 2024.

this is the top where I interview entrepreneurs to our number one our 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 Tov I haven't experienced his have bent on global domination we just broke on a hundred thousand units roll mark and I'm your host Nathan black new episode guys if 691 almost a 700 how crazy is that but be sure to tune in every morning tomorrow morning we talked to John Ferrara he just landed a massive deal with Microsoft that helped him grow his monthly recurring revenue to $225,000 big question now is will heal in the CRM space good morning everybody my guest this morning is Victor Rosen man he's a CEO and founder of feed Weiser before founding feed Weiser he was a founder of an innovative social media marketing start-up and a senior R&D manager at Sun Microsystems Victor holds of BSC in computer science and an Executive MBA from Kellogg Northwestern Victor are you ready to take it to the top thank you all right give it to us what is feed Viator duan what's your revenue model how do you make money oh we're free get off my show by now not exactly advisor what's adviser that is where decision support system for large e-commerce vendors that sell through marketplaces so we're helping them to make all decisions in the most optimal and smart way we kind of bring bringing them as markets on demand say so so when you think about I got to bring it down to earth when you think about the e-commerce business Victor given really give a real example of an e-commerce game so let's think about any commerce station let's say 20 30 million dollar name warning name one at the customer we can't really disclose names that is the only problem because we under NDA but whatever we have in the website we can because I cannot disclose on the show because your name one that you can disclose I'm just trying to make this easy for people to understand so you have you have RM des agree you've got a leather care supply and you've got a company called undercuts tell us about undercut so what do they do and how do they pay you so I cannot talk about the specific customers I'm really sorry on their maker you have this on your website so make you increase you can create a revenue 6.5 X percent there's a 250% increase in profit and 300 cent increase in sales talk about what you can talk about yeah so whatever is in the website we we can talk about whatever is in the website I can tell you what what we do for this person so what we do for this merchants is the join feed butter most of them will have significant business on out of them before before joining feed visor they will be doing some sort of marketplace selling through Amazon they will manage merchandise right they will manage pricing through us and then what will happen as soon as this join feed visor and we're just looking into way more parameters into how they optimize pricing how they make purchasing decisions how do they replenish and we just make these numbers right so for example if they've been selling on a certain price we can find the right price if if they were why do what gives you the right to tell them the right price tell us more about that oh sure so what we do is we look into a lot of very number searcher for human really consume what's going in the market think about the stock market as an example for example selling an apple not much different than stock market so you have a lot of competition and competition changes prices and the competition has certain amount of reviews and and rating and and they have certain amount of items in stock everything so so really to go and look into all these various numbers it's very good and it's very tough to make these decisions and that's why you employ the artificial driven algorithms artificial intelligence driven algorithms and they apply machine learning to actually make this decision more precise so any decision specifically the big one that you guys tackle is pricing pricing is the biggest decision but the second biggest would be replenishment and the third one bigoted would be a sort what do you mean by were plasma is that like inventory management how many items who wants to keep in store got it okay so and then how do you make money from this we actually we charge certain monthly subscription Plus which are certain amount of red share ok what's the monthly subscription on average we leverage our customers pay us to $3,000 a month okay and that's a flat fee regardless of this combination of subscriptions which can be two three thousand dollars and certain amount of ratios can come up to another thousand dollars okay I don't care about the registry part to start just to saw just the recurring flat or revenue what is that typically per customer it's around twenty five hundred okay and so they're paying they're paying that too they can get access and I'm going to read right off your website this is from undercut they sell it looks like grooming products or like bathroom products essentially very nicely designed they said that they use things like the 30-day trailing information of thing on feed visor profits units sold and sales it's a dashboard they have these are all things they paid at that splat twenty five hundred bucks a month for right so they actually getting information and they getting the automated price adjustment we can which reduce so so then all of these is included into this slide package and then for a revenue that they make through the system they Rev share okay I get decides not to do anything through feed visor and not to pay director but it would be unreasonable why couldn't they just keep you they say okay P visor says change my price - $10 I'm just not going to do that through them I'll do it myself and get the benefit without paying them a cut yeah well it doesn't make sense because first when you do it so you need two things to be successful you need to be precise and you need to be fast there is no way you will be spot by doing things manually so the rapture represents really small portion of of your entire fee so it's rather you should go and simply use the system there's no reason to the circumvent because we create the ry so if I am if I if I sign up for you and I pay you 20 bucks a month and then let's say in that month I do $100,000 in volume all through you what percentage of that will go to you it depends on the subscriptions on a subscription plan whenever is let's say about a percent oh this is just a cover like processing fees yeah yeah it's not it's only huge amount it's not like 20 percent yeah you're really is that you're really making your money then you're a SAS business if you're - yeah we stopped didn't majority of our revenue is coming from the beast as an industry got it okay and so take us give us some history here so what your Jalan CH the company in so Sophie visor was founded I phoned is actually in 2011 what I was working basic in myself and then I really bootstrap the company initially for the first year in 2012 we get initial seed funding how much ah if I'm not going saying about talking million okay something very initial get a convertible note or priced round I know this was Alexa T there's all equity okay and how much have you raised today 33 million 33 million okay great so walk us down I mean is the funding round kind of what you expected it to be or is there anything different than what you expected at the beginning in funding yeah well you never know at the beginning I had to say that our funding experience was notice that's very easy but it was fair okay and how did you would you do I know you're transitioning right now from kind of the UK I believe right where were you from originally started in Israel Israel so you're transitioning from Israel to to New York by the way I'm so impressed with the amount of talent coming out of Israel in the past three weeks I've talked to like three or four Israeli companies who are just killing it you know one of them I think I forget who was raised like a hundred million dollars I mean they're just killing it so Israel - New York City you're making the transition what was it like raising capital in Israel Israel has very powerful VCA consistent very powerful so there's a lot of capital in Israel it's it's not different than from any other place like Silicon Valley New York so for for me it wasn't creatively difficult to start with because I came after year in bootstrapping I had a first few customers I had working prototype I wasn't days working product but I've been working prototype with people paying for it what were you what were you doing in terms of revenue in the month right before you raise that first seed round well this was terrible yeah but like are we talking like like five grand or ten grand in revenue or is something in this range yes got it so I'll give you a fun story so when I raise the seed funding if I did I really didn't know that much about e-commerce didn't so I knew the details of the commerce didn't but I didn't knew about this is not like the impact and how things are going to work so and when we started speed-wise was primarily rev-share because it was the the risk less piloted or all the three free way to engage with customers because if it doesn't work you don't pay so and then when you move to more of the fix that actually when you get gaining credibility when you gain credibility you can ask or larger model come to start three with...