How Oitchau CEO Lonny Szneiberg grew Oitchau to $5M revenue and 300 customers in 2024.

hello everyone my guest today is lonnie schneiberg he's a serial entrepreneur working online since 1998. investing.com is one of his companies on its way to becoming a privately funded unicorn with offices around the globe and over 300 employees and 60 million bucks in revenue his other company oichau is a time and attendance solution which started in brazil to solve the problem of three million annual labor law related lawsuits in the country alone lonnie are you ready to take us to the top definitely okay so so are these investing.com and oyshow are they separate companies are they tied together somehow no they're separate companies uh some of the partners invested also in ciao but uh these are two separate entities and one is running brazil and the other is an international uh monster actually where we're uh growing pretty fast uh we surpassed we just surpassed bloomberg in traffic recently with 100 million uh sessions a month on the site alone so it's it's a it's a very it's a major operation so okay so that's investing.com 60 million bucks in revenue compare that to oichau i mean what's oil doing right now in terms of revenue uh that's a good zero is a baby but growing very fast there is a there is a big issue in brazil which is related as you said there are three million lawsuits a year peop business owners don't necessarily know the extra hours that their employees are doing and then they found out at the end of the month they need to pay a few extra salaries because of these extra hours which they're required to pay by loss so okay um so is it i mean is it it looks like based on the website you're essentially kind of time tracking for employees and managers pay for this correct uh it's a time and attendance uh application uh but it's it's a very smart application so we know we know to identify the where the who and the when uh when people punch in and or punch out how much time they did the the all the extra hours that they did notify about any problems problem which is outside uh what the manager configures in real time to the manager so you don't need to wait for the end of the month to find out you have a problem with an employee you you get the information in real time the next day you can already invite the employee chat with them and solve the problem got it well yeah i mean you never say you have a dumb tool so it sounds pretty smart uh it's obviously a good thing when managers are signed when managers are signing up for this i mean well what's a typical kind of company paying on average per month for the two well to be honest what happens is that the employees actually they take the tool home with them and then they can manage the uh the cleaning lady or the creator profile and manage the cleaning lady and the babysitter on the other side and we have uh various uh companies with over 5000 people and um some of the actually the government is also looking into it uh testing some tools we're running some pilots so um covering a pretty big scope of the businesses okay yeah but um what i'm trying to do is understand pricing so maybe on a per seat basis what are people paying on average for this well uh to convert it in dollars uh you know the real has been moving so much so let's take the last few days uh so it's a few dollars a few dollars for employee uh and um the price it just depends on the amount of employees you have and uh and the actual plan that you choose we're also launching right now a solution for um hold on hold on lonnie sorry i don't i don't want to get off that subject because i want to understand it because i'm still not here um if we look at your entire kind of base and all of the seats on your platform whether it's someone managing their cleaning lady or someone managing 5000 employees on average what's the per seat price and reels is fine on average it's about a hundred and a hundred and some dollars uh and sometimes again like if you if you look at the majority of of the companies we're looking at small businesses but then you have major companies with thousand employees and up which uh would change the average completely so uh but but the majority in terms of amount are the smaller businesses okay so the average company is paying 100 bucks per month to use the tech yeah more or less something something more sure yeah but yeah that's the nature by the way of an average you take your total customer's revenue and you get an average right i totally get that you have power laws happening here yeah okay and and so put this on a timeline for me when did you launch this company uh well we launched it in uh in august uh 2018 okay so this is so like this year for about a year sorry yes you launched it this year a couple months ago correct correct we've been working for quite a while we already have had many customers participating in the beta but uh the official launch was in the co in an hr conference here in sao paulo in august uh 16. okay and how many customers have you scaled to over the last couple months well we have uh we have a few hundreds and uh i'm not i'm not i can't really go in the specifics i can't say that we're expecting the current growth rate to reach a million dollar a year revenue by uh august next year if the current rate continues well it definitely won't continue because going from a dollar to five dollars is a super high growth rate and doing that same growth rate day over day or month over month becomes virtually impossible with the law of large numbers correct uh there is a legislation issue in brazil which works in our favor so actually the the government is pushing the businesses towards these tools and there aren't many out there uh and and not not familiar with another tool that offer the same complexity as ours so currently we actually months over months we're we're growing and the demand is continuous to expand so uh i don't think we're gonna reach that level of like uh it's gonna take a while a few good months until uh the growth will slow down from what i'm from where i'm standing sure by the way growth is relative but going from like a dollar in month one to a thousand bucks a month in month two is a thousand x month over month growth if you do a thousand x for another month and a thousand x another month and another month you had a billion dollars in revenue in four months the growth rate won't stay that high yeah i'm referring to what i said previously which is the one million uh dollar a year which is the the first goal yeah no total it makes complete sense makes complete sense when you say a couple hundred customers today you're talking like two three hundred something like that um okay yeah so and then what i'm trying to understand here is you have a free kind of a free plan as well so what is it like i mean how many freezers do you have on the platform and and where do you show them the pay well sure so it's a it's actually it's not a free plan it's a trial uh just a 14-day trial um after that we asked them if they want to if they want to continue with us to a paid plan okay does the free trial require a credit card at the beginning or at the end no uh at the end at the end it's not it's not a premium model okay got it very good and then look i i love the kind of focus on getting to a million bucks in ar that would be call it 83 grand per month it sounds like if you've got two or three hundred customers today at that arpu you told me about a hundred bucks you're somewhere around call it 20 30 grand per month today is that accurate uh like i said i don't want to go especially specifics because we have various companies some of big which screw the um the average a little bit but in some government clients which is a complete completely different size of contracts but uh the goal is a million a year in august yeah just be clear lonnie i'm just multiplying the numbers you gave me you said 100 was an average obviously when you give me an average it means are people doing more and people doing less and you said a couple hundred customers so i'm simply multiplying are you generally doing about 30 grand per month right now uh i'm not going to the numbers because as i said there are just way to understand a company if you if you do them if you multiply then a company with five you take one company with 5 000 employees uh or a few of them you completely change uh well obviously the average and and the growth plan so i'm not going to go into numbers right now but yeah lonnie sorry that number has to be wrong then i asked you what is your average per month so you said 100 bucks per month meaning there are some companies with 5 000 employees that might pay you 10 grand per month and there are a bunch that pay you two dollars listen uh we're talking about future plans until august okay i'm saying i don't know i'm not talking about future i'm talking about what you currently have so i currently i'm not going to go in specifics it's just not something i'm going to review what's you gave me then because i said is that your what's your average and you said 100. so if that's wrong what is it like what's wrong okay so your average customer today is paying 100 bucks per month more or less yeah okay that you could have just said at the beginning why'd you make that so difficult...