How Frrole CEO Amarpreet Kalkat grew Frrole to $492K revenue and 18 customers in 2017.

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 the marketing funnel looks like and how many customers they have I'm now its twenty thousand dollars per tough I haven't explained he has happened on global domination we just pull over a hundred thousand units for Mark and I'm your host Nathan lack any of you guys met in person has seen my unbelievable dashboards that I built you know I'm an mo analytics like crazy person I love the data and I'm up resenting the data in beautiful dashboard design team can use on their mobile devices their phones and tvs throughout the office now the way I do this without having to hire a big development team is that Nathan lock accomplished analytics if using a company called Eclipse folio and i'll tell you more later on the show how i use them nemikham forward plush analytics in this episode 6 36 coming up tomorrow morning we hear from clayton max the CTO of infusion soft i get into the weeds with clade he gives us the reason Infusionsoft did not IPO how they passed 100 million dollars in annual crowing revenue with 125 million dollars raised helping 45,000 SMB with marketing sales automation i also asked you to go public good morning everybody makin left to hear our guest this morning is operate in calcutta is the CEO and co-founder of fro land a I that's artificial intelligence start up as redefining consumer intelligence he loves building things Viet product revenue streams teams or organizations I'm afraid are you ready to take us to the top let's go right ahead room in yeah very good all right tell us what fraud does what's the business do and how do you generate revenue so full provides consumer intelligence we largely look at public social later I use that to build you know these insights knowledge about people about brands businesses markets and you know the customer side we work a lot with marketing departments research inside streams and we also now recent instead of working with product owners you know products that need to be consumer aware so plugging in consumer awareness and as you know as a service essentially in based on what we know about the people so what is ok so I'd understand you what it does so so give me an example of a customer paying you and tell me exactly how they use you so take a little for example you know ebay flip kart except to our customers so we work with a muffin or muffing analytics research team and they for them understanding the consumer is the holy grail right for marketing guy thoroughly because I make the ama p with ebay so ebay is using you and and yeah and tell me exactly how they're doing it yes they we will for example the shipping p merry way the shipping insights team works with us now they want to understand hospital experience that consumers have with ebay shipping they want to understand how they compare to their competitors they want to see how their programs you notes as well are doing they want to understand if people care more about faster delivery or cheaper delivery so they're lot of questionable the consumer that you can get unfit from social data so we help them get those answers your striping kind of OpenSocial API is like Facebook Twitter to kind of do this problem they're not exactly we we have data about no ships with both Twitter and Facebook so so we have access to you know official access to these api so it's a no screaming Parker at all but yeah we get the data or algorithms you know try to understand that you know make deductions and that's what our customers make use of so if a Twitter mentions on you know and Twitter something like just got my stuffed animal from ebay i love how fast it shipped you wouldn't be able to get that data and send it to your ebay shipping team to say hey people love fast shipping will get that absolutely so we'll get that goes into our system you know we're probably looking at a few where she builds you know r annotations as I guys would say you know we're trying to annotate every conversation every person in in dozens or thousands and tens of ways so yeah so based on that I get my answers for the questions that I'm looking for and how do you you so what did he may pay you I mean how do you make money just a subscription business you know this must pay us for the insights so typically they would say hey I'm interested in insights about me and you know X number of competitors for example so we say okay I'm based on that this is why ups on a monthly basis and that's the business okay so it's a subscription take subscription sack it's a monthly subscriptions and / yes the data data says absolutely and what just what is talked about in averages for now but with the average customer paying you per month well how does the medium the better number you know we have a couple of older customers who don't pay as much we start around two and a half three years ago we have a couple of new customers I think the average just for fast you know comes to around thirty two thousand dollars for you okay 30 gram per year yeah but the median number will probably be higher I don't have the exact number but should be around 48 50 K so and gave ami cel annual contracts no not really um so personally I don't believe in locking customers in you know unless there's a reason you know they if customers good value they should use us if they don't get value then why should they so normally we have a 30-day workout clothes you know if you're not able to get value you can work out got it but if they're paying that the 12 months up front the 32 ish thousand up front many cuz to spit what early you know we will throw in a small discount if they want to pay and really but a lot of fun Christmas pay quarterly or monthly is a little too much of an overhead from invoicing perspective etcetera so quarterly sure she's aware we go got it and then take it back and give us some more the history what you do on to the business end so we go back a little while so we actually started as a hobby to see news discovery product and where this was 2012 2012 yeah so then 2014 be you know we've reverted to a b2b model we said okay we've got this intelligence you know we gotta find a way to monetize so so as you know embrace sort of Bangalore so you know fix was a little bit friendly back in bend over since the valley and yes 2014 we like a b2b product so it's been three years pretty much intact answer here was you know the three year and was three for us and now where you are in terms of team side today so hurting people right now what money 130 is 13 yeah all in San Francisco or bix between san fran and bangalore so actually right now everybody's in bangla and i split my time between San Francisco and Bengaluru i'm here in fact looking for a first san francisco you know based teammate maybe you line them from a listener from from the show what who are you looking for sales product sales absolutely i'm looking for a sales guy yeah all right there you guys have a sales guy sales gal whoever it is I'm a pretty what's your compensation look like is it mostly as a mostly base or commission or what so we actually yeah so base commission bill but idly idly i'm looking for a i would call it almost a goat on real kind of parole you know so so we would wear you open to a significant chunk of equity if that works well you know for the right person so what's the holy mission of chunk like 5 10 15 well five to ten percent is significant in my book okay yeah that's coke on drug level equally that way i would see and have you guys raised capital tonight are you self funded whether it's a small injured around a couple of years two and a half years ago now yes so we'd raised like a 250 k and ya posted we have embraced money yet okay so a total capital that you've raised is about quarter of a million yeah yeah and where you at today in terms of how many customers are our paying you per month so we are a team 17 18 CS 15 to 20 you can bolt bus call it okay and can I just take 18 times kind of a thirty-two thousand dollar annual contractor assuming this I mean pretty healthier you're about 50 grand per month yes a little less than that right now so we're doing it on 40 41 in a model right now yeah that's great yes and take 18 times you know a little bit less than 2,500 bucks per month from each customer that's a healthy little business sorry good yeah where are you where are you and what about churn obviously visited pivoted in 2014 but what's your gross customer turned per month so that's one thing I'm in zuellni the way 15 we actually quite bad on that name of us for 2016 and how do you know you did bad so bad boo is around seeing around would ya all customers out of like three customers I think out of 10 or 11 at that point of time every month and now over all over the year over the year yeah so last year you know out of some 16 our customers we lost two so so there you go i mean in terms of here are likely fifteen percent annual turn yeah but revenue site i mean our net revenue side i think we will we've been fantastic you know with ups etc so the net revenue shown is very healthy projective yeah it definitely is negative yeah so good thing that's always gonna be any...