Jamespotrevenue

hello everyone my guest today is alex he is a multi-entrepreneur in software and co-founder of ra sam which he sold the sales and ceo of jamespot collaboration platform today which plays again in the collaboration platform space are you ready to take it to the top yeah ready okay very good tell us what jamespot does and how you guys make money what's the revenue model well you know we are a french european company software and we are all in one collaboration solution so we changed the way the organization worked together you know in this digital age okay and what does that mean i mean are you how do you bill are you sas platform yeah we are fully sas platform 100 cloud-based and we deliver 18 applications for organizations to work together better you know that make everyday project collaboration innovation faster and easier for our collaborators okay so just are you like in that marketplace or do people buy pay one time and get access to seven different tools no yeah we we have a uh it's more like you know an intranet or enterprise social network all in one base all in what collaboration software okay so what do people pay on average per month for this well uh we had more than 200 customers now because you know we work with bluetooth and so on and the average price you know for a user you asked for me yeah now for a brand for a brand oh for brand it depends how many users you have inside well what is the average number of users oh it's about uh 500 to 1 000. that's and what are they pay per user they pay produce about seven euros okay so we'll call it we'll call it eight us dollars so 500 i wanted to make the translation in dollars for you and for all the world because we have different prices uh whenever sometimes it's uh it's quite the same we have a quite discount for dollars people so just be clear 500 seats it sounds like you said with an average of eight bucks a seat that's essentially a brand paying you on average four grand a month something like that yeah exactly okay and can i multiply times 200 brands you're doing about 800 000 per month right now yeah because you know uh we have some uh customers are smaller than these that's why i asked for an average so what's the average customer pay per month [Music] uh it will be 1 000 okay so you're doing more like 200 000 per month right now exactly how today our annual record in revenue is about two million dollars okay great that's wonderful and where were you exactly if you're doing call it 200 grand today a month what were you doing exactly a year ago we are i didn't understand the question you say where we are the last year one year ago so january of 2018 how much were you doing per month yeah yeah 1.5 million euros so we have done a 40 percent growth last year yeah so you're about 125 000 us dollars a year ago now you're about 200 thousand dollars per month and we are going to 3 million euros so that's mean 3.3 uh million dollars by the end of this year yeah with 50 uh persons of of growth this year because it's a huge market today okay so what's the team size today how many people we are 12 20 people okay and everyone's based in france yeah they are all based you know some in europe but maybe in france and we start we work with broad people so uh because we have to make sales and customers success management locally based for people that are not in the same you know time as we are yep and have you bootstrapped this company or raised capital no it's fully bootstrapped but the first company i've based horizon to call from a cell to tallest was with vc and but jamesport is a 100 bootstrap company we and it's a different very interesting model that you know from vcs and so are you uh burning capital today or you're casual positive oh oh excuse me bless you thank you uh no we are we are positive today uh with um very good uh a big day about how much like 10 20 more than this for this year oh that's great so let me ask you as an entrepreneur when you have free cash flow each year what do you do with it you let it sit in the bank or you pay out a dividend or what no what we do we make we reinvest our 80 persons and adding 20 for you know the the bfa you know the money you need to to when you are in uh you know full growth so you need you know have money because you have to pay before hiring people for instance sales people uh or marketing actions so um but mainly we reinvest all and do to make this growth happen yeah and when did you launch the company what year the company uh was lunch is 2005 but the product was lunch is 209 so it's a ten years product that's a bootstrap time for for european we are we are sometimes slower that you are in us yeah no i i think there's nothing wrong with slow bootstrapped growth um tell me how you got your first 10 customers the first 10 customers were coming because we uh we were dealing with you know very people that was looking for something very new because at this time you know social platform were not uh very very uh you know no um and so it was by network first uh people you know people trust you people know tell me specifically though because everyone can say that specifically who was the first person you sold to and how did you know them so the first i sell was a guy that i knew that do business for us in the previous life and so he jump in in the company and say he need this to to better deal with his salespeople and so that's why it was the first customer and the second one uh was you know a huge company uh which one total you know total tltal yeah it's one of the five major accounts in the world and uh they need some collaborative tools to make their uh what we call a survey and uh in internal uh how did you know this who'd you get in touch with there this was a previous customer in my previous company okay of pre oh god of the previous company and you knew what was the title of the person you sold to there um at this time it was more people into innovation process but and the second time it was more uh deal with people of communication internal communication hr head of hr not really hr more communication and organization inside people who think about the way people work together interesting okay very good and then what's churn look like today what is sorry churn so our churn is about uh five persons per year only okay five yeah a very few uh uh churn because we do a lot of you know uh intensive work to to uh to understand why people are going to collaborate on jansport is that revenue churn or logo churn uh this is a revenue term okay so five percent revenue return and then do you have expansion on the on the same cohort or no yeah we have expansion into uh the other ones of course and it's about uh uh 10 or 15 percent here okay so your net revenue retention is what about 110 yeah yeah because we when you add this and you uh subtract the other one that's why we are inflating uh and it's a very uh it's one of the reason of our growth where is the 15 expansion coming from what are you upselling to old customers two things the first thing is that we have a customers that have more user because we are dealing with growing companies so they put more employee that's the first things the second one is that we have an upselling model with applications because into gemspot you can add new application you are going to buy and so then you have more use of the of the system with new usage your new way of using the solution very good how aggressive are you being to get a new customer that pays you a grand a month will you spend the first year acv to get the customer yeah so the first year uh it's about eight thousand uh dollars so we are we are profitable about you know uh nine nine months in nine months you you have what we call a cost acquisition cost yeah it's about nine and then that eight thousand is fully weighted are you including salespeople salaries and productions fully weighted with sales machines uh people of uh marketings including ever you know uh general gna that i put inside you know i put a a part of all you know the the expense we have into this so it's not you know it's a really a full costed customer acquisition cost very good all right let's wrap up here on with the famous five number one what's your favorite business book so um i i would tell you we have uh uh it's a it's into the the news today we have renault nissan you know this uh those are cara uh yes yeah nissan but it's uh it's also renault that's more famous in europe because nissan is in u.s but uh renault is in europe we have l'oreal you know we've all you know the cosmetic stuffs uh l'oreal pascagoula phobia uh yeah it's uh it's uh so what's your question is what's your favorite business book what does mean the february's book sorry your favorite business uh a book you read you open a book and you read it what's your favorite business book oh sorry i didn't understand at all no problem it's i would say i was looking back to see if i can show you it's the sales acceleration formula the cell's acceleration formula that's a good one number two from the up spot and the second one is this one yeah it's by near all that's a good one sorry i didn't understand at all it was booking you know booking with no problem number number two is there a ceo you're following or studying oh true so many ones i would say the ceos i'm following is uh if we said the big ones uh for me uh i say peter thiel is very interesting uh one uh number three what's your favorite online tool for building the company favorite tool yep i would say or build up a company very tall it's good from performance to excellence from good to great you know what is your favorite online tool for building like your company oh online tool i would say today it's pi drive it's like number four how many hours of sleep to get every night oh uh seven and what's your situation married single kids i am uh diverse and i have a new kids of two years you know with my new uh wife okay so one one kid oh i have i have two big kids you know that my daughter has 23 years so three kids total three kids what are you i am 49 49 and last question what do you wish your 20 year old self knew what is your what's something you wish you knew when you were 20. ah i don't know where what i knew was then 20. i was doing programming that was i was a geek when i was young what's something you wish you knew when you were 20 ah wishing you [Music] two you know to to to make a big concert of music because i'm a musician too i don't know if this is to answer the question but uh very good guys there you have it again from alan is building james spot a collaboration tool 200 customers right now using it paying a grand per month so 200 grand a month right now in sales up from 125 grand a month just a year ago they've got about 20 ebitda so healthy cash flow margin bootstrap team of 20 in france 5 revenue churn 15 expansion for net revenue retention of 110 he's paying eight grand to get a new customer worth 12 000 a year so a nine month payback period as he looks to scale uh thank you for taking us to the top thank you tom