How Luckyorange CEO Dann Wajcman grew Luckyorange to $2M revenue and 15K customers in 2024.

hello everyone my guest today is Danny Weitzman he's the co-founder and CEO of lucky orange the conversion optimization suite responsible for helping 90,000 plus websites turn more visitors into customers he's got a background ranging and brand management to lead generation and the understand understands exactly what businesses agencies and clients expect and demand he came out he can be found contributing regularly at forbes.com Danny are you ready to take it to the top yeah man let's do it all right tell us about lucky orange what's the revenue model and how do you what's the business - yeah great question so really we are a typical SAS model subscription as a service users start with a free trial all features included in all plans and from there we really help guide you into a plan that works best for you and your business that could be dictated based upon if you're an agency and you want to attract many sites if you're a high-volume site you need a lot of pageviews or maybe your site that you want to have a lot of operators logged in we're gonna find a plan that works best for you all plans all features start at just $10 a month for unsampled data and it really scales up based upon your needs and really we like it kind of from a holistic standpoint the value we provide should way outweigh the cost and so we understand that analytics or insights as we like to refer to them it's just one part of a sound business model so we really believe from a pricing perspective how we fit into your overall strategy should allow you to then have money left over to then implement on the insights you're gonna learn from lucky ores you go for it's kind of you go from Danny from 10 bucks a month all the way up to 100 bucks a month what's the average customer paying per month would you say yeah we typically see transaction values around that $35 a month price point so it's kind of a hybrid and that really is dependent on you know are you coming to us from a third-party partnership we have where you have a lot of high volume customers that are more self-serve but then we also have a whole separate really revenue that comes from users that are more enterprise custom plan focused what for revenue comes through the partners that you have a good chunk of it it's really like more than 50% not from any one specific partner altogether though as a channel all together as a whole revenue partnership is probably closer to about 40% and so and but it's really just tribute across multiple partners and really white label solutions I mean how does that work no it really works it upon just having will call plug-in directory availability so when you look at lucky orange and the value can provide the very first barrier to gaining those insights is can I even get this code on my website you know so for those businesses out there that you know they're going out of themselves or they're lean on the team and they may not always have access to development support the ability to just hey let's click this button or let's have simple 1 2 3 step installation instructions removes that first barrier which of course is again can I even get this code on my site and that's why partnerships has been really great for us not just in terms of brand awareness but even simplifying the installation process yeah I mean look onboarding is critical it means of a larger percentage of your visitors obviously convert into a trial and obviously a paid plan what have you been able to scale that to how many customers are you serving today yeah I mean we just looked in I mean we're probably mid 15 plus thousand active paying customers or or more so it's it's definitely growing from that perspective but that doesn't necessarily reflect the amount of websites we're tracking as one account could have a hundred sites underneath it you know count as one paying customer so it's it's been really unique to see how the customer need has evolved allowed us to kind of evolve the product to fit that need so Jenny just be clear you've got 15,000 kind of unique people paying you they may have 10 websites under them of varying sizes one might get a million hits a month one might get ten hits a month yeah and that's good and really that number kind of ranges them again you can have a client as you mentioned who's doing hundreds of million pages a month and it could be as it's the first time Shopify or a big commerce store who's got a hundred page views a month and you know they're it what's I think really interesting about then what that story is telling is that whether you're a huge enterprise and you have analytics divisions and people who can analyze his numbers or you're selling bicycles and you can't be behind a computer all day we all have this thirst for understanding of what's really happening on our website and what are the simple things I can do to learn from my visitors to improve these conversion rates it might be as simple as a certain call-to-action did not work or a price point was confusing or a caption and lead form but we all want this knowledge and we want to what we say pull back this digital curtain to provide this transparency so that way again whether you're Danny I think we totally get the value of the product so I want to shift from kind of you sharing what the product does to actually how you've driven the growth of the company most my listeners are CEOs private equity VC they're more interested in that so I totally get the value proposition you made that really clear when did you launch the company and were you there at the beginning I know your CEO oh yeah absolutely so co-founded with funny enough my brother-in-law Brian Gruber our wives are twins and sisters not identical so the important distinguish there people always ask about that this really started we like to say started with Brian creating the technology and we really came together to form this business in what year this was probably 2014 okay so fairly recently and fairly recent and you've already scaled I mean if I'm doing the math you've scaled to 15,000 customers at a $35 RP I mean what you guys are around five hundred twenty-five grand a month in revenue currently well we don't really disclose full revenue amounts and we'll Danny and just tell me where the numbers are wrong you just gave me those two numbers it should be a simple math equation why would that math equation not be accurate a lot of different variables but I want to get back to you had a really good question which was the evolution of the business no Danny but I want to make sure I get the numbers right first cuz those are wrong you're the evolution story will be different so do not have 15,000 customers or is the price point higher or lower well price point will its variance based upon what match we're looking at in terms of is it you know subscription from the subscription model credit card is about from invoice so it there are there are some other variables that will go into that equation okay but you're you're you are a pure place SAS model everyone is paying you on a monthly recurring basis well I don't really care if it's we have credit card or your website or invoice right I mean it's not always it could be by and really - or animal model okay but regardless if you take if it's by annually or if it's annually you divide by 12 months that's I get a monthly ARPU so generally 35 hours so yeah correct okay so where's my math wrong because if I take fifteen thousand customers times 35 bucks that's 525 grand a month in revenue it sounds like you're not there yet we're not there yet but there I mean there are some other variables to it but we'll share those thanks I'm interested in the variables which variables in particular well I don't know them that's why I'm asking what variables would lead that multiplication problem not to not equal that well again we're looking at other things that would in terms of how the revenues coming in from the different sources the different price points customers that are you know on and off line so again there are a few other variables that will play into the factor to it okay before Danny you get more into the evolution and I will promise will shift away from the numbers here in a second I mean can you give me a general range of where you're at today I mean are you guys above 300 grand a month or is it significantly lower or significantly higher uh-oh it's currently lower okay lower than 300 yeah okay and how do you guys bootstrap this thing or of you raise capital totally bootstrap the whole way through it you know we took part in an accelerator earlier on that was more meant to be kind of just a milestone of where are we how we you know are we getting some early on guidance so small accelerator we took place in but really it's been bootstrap how much money did they give you 18 grand okay so super smart they take like what six percent equity or something diluted oh yeah yeah yeah which to which accelerator was that it's put called spark lab they were out of Kansas City and you guys are still based there right still based in Kansas City Kansas yeah I love that what have you grown the tea insights to so just now we brought in our ninth team member and we've kept it relatively lean intentionally you know we really want to be let technology be the solution and then let us be the people behind the technology to help you know drive it from both a customer service standpoint or sales standpoint so we've really you always really good tech out there to help us you know keep the team lean but provide they all in Kansas City or they're all remote everybody's in-house it's awesome where are you recruiting developers...