How Sellercloud CEO Jeremy Greenberg grew Sellercloud to $21.6M revenue and 800 customers in 2024.

hello everyone my guest today is jeremy greenberg he's the founder and ceo of seller cloud his vision is guided seller cloud to the forefront of the competitive e-commerce management playing field jeremy are you ready to take us to the top sure all right tell us tell us about the company what do you guys do and how do you make money so we help e-commerce companies manage their orders their inventory pretty much all their business processes across uh everything from how they manage their suppliers to actually shipping out products to the customer and uh that includes also uh listing products and uh various things like uh integrating with amazon ebay their own website to really uh be the operating system of that business so we make money basically charging per order you know we basically have a transactional fee so we charge starts at 25 cents an order but basically every month we tally up how many orders went through our system and that's how we built for all of our services we do have some you know secondary you know upgrade uh you know options and things like that but primarily our about 90 of our revenue is from uh per transactional type uh charges jeremy is this predictable revenue i mean would you consider it sas revenue or no it's too seasonal and choppy to be predictable no it's very predictable there is a seasonable aspect to it you know obviously in december there are more orders going through our system than in you know march or something like that but uh there's a predictable pattern we've been you know we have a trend that we could see uh you know december is usually a certain percentage higher than november and then january is a certain percentage higher than that because we bill after the fact so uh so basically uh in january billing for december which is usually the biggest month and then there's a typical percentage that it dips and basically it's because we're a growing business every year the baseline goes up but basically there's a similar pattern that goes from one year to the next so over the past 12 months jeremy how how is that based on increase what's been your growth rate year over year growth rate uh last year uh the growth rate's been around 40 each year okay so consecutively so uh and that's in terms of rev in terms of actual revenue correct yeah actual revenue some of that is really from new clients some of it's because our existing clients are actually growing yeah and what are those clients i mean i know you have many different kinds of clients but give me an average on average what's a customer pay you per month or per year probably around the thousand thousand dollars a month uh the bottom the lowest tier is five hundred dollars a month we have like a minimum of 500 but some clients are paying us several thousands of you know depending on how big they are okay and put this on a timeline for me when'd you launch 2010 2010 okay very good and have you bootstrapped the company or have you decided to raise no it's all bootstrapped i love that you know we earned our first profit in 2012 broke even in 2012 and started to make a profit and then gradually grew the business uh from that point till now you know gradually adding employees and your cash flow positive today correct and how many folks are on the team there are so there are 35 in my office here in new jersey and then about two years ago i added an office in europe so we have around an equal amount in the european office okay so 70 folks total all full time correct that's right so new jersey and uh and europe very good and what have you scaled to over the past eight years in terms of total customers on the platform so we have over 600 clients now some of those clients vary in size like i said uh some of them have over 100 employees you know using using their account uh and some of them are small you know like just a few people in the company but we have over i think something like 610 or something like that was our last count okay jeremy can i multiply this so i can i take 610 times that thousand dollar month average you just gave me i mean are you guys doing somewhere around 600 grand a month right now yeah probably a little bit more but yeah somewhere in that range um and with 40 percent we did around yeah go ahead yeah so last year in 2017 we did around 5.1 million dollars in revenue so uh you know it's gradually increased between then and now and uh you know we're hoping to uh you know continue to grow at that rate it's sort of hard to uh you know we're trying our best to maintain the rate you know the growth jeremy just to be clear i mean if you did 5.1 million last year and you're already doing north of 600 a month uh 600 grand a month today that's you know that's a 7.2 million run rate up from a 5.1 million dollar run rate just a year ago so you already have healthy growth even if you're ended today correct yeah that's great what you know churn is critical in any kind of sas business uh especially in kind of marketing and sales tech space what's your churn today and how do you measure that so we you know we have all kinds of reporting so we do uh you know we can report on logo churn and revenue churn and we do that on a monthly basis so basically uh you know if you have your you know we still use quickbooks to manage our finances but what we've done is we have our own internal system that we uh we can reference uh you know by by the client id that we have and you know we run a bunch of reports and we can basically run a 12-month churn and a 18-month churn both on revenue and logo so jeremy what is the revenue churn per month per year today so i think it's around 88 that's retention not churn oh sorry that's the logo trend the revenue trend is somewhere around 90 90 90 percent just just to be clear jeremy just be clear you're not talking about churn you're talking about retention yeah so revenue trend um if you have 90 revenue churn what that would mean is if you're doing 5 million last year that would go down to like a million sorry sorry yeah so we have net negative uh churn yeah so we're we're not only retaining our clients but we're adding clients every month yeah so what i'm trying to figure out gross revenue churn per year is what 12 percent because you said you retained 88. so if you retained 88 that means you churned 12. yeah yeah is that right that was the logo trend i was referring to what's revenue yeah so the revenue i i honestly don't have the number off that's okay that's okay it's okay so 12 logo churn per year and you have net negative revenue churn uh each year correct what do you drive the only way to have net negative revenue churn is to obviously be driving expansion revenue what kinds of additional things are you selling into your you know into your customer base that drives the upsells so we've been expanding on our product on a product line so it used to be that we just had the seller cloud service that people would pay per transaction now we have some add-on services both in professional services that we're charging for like white glove type services where we're we're help going down to people's offices or giving them working on projects with them customizing things for them and then we also have some additional products like we introduced a product called sku stack which is a warehouse management solution which sort of is in tune with the type of customer that we have but going deeper into the operations uh deeper into the warehouse and you know originally we just sort of managed inventory on a simple level you know uh what's in the warehouse now we actually with sku stack you can actually track where stuff is in the warehouse scan everything to you know in and out of uh bins in the warehouse and track serial numbers and you know all kinds of more advanced uh type stuff so we actually charge extra for that okay so interesting and when you're signing up one of these a thousand dollar a month accounts what are you willing to spend to acquire that customer fully weighted um to be honest we really don't know what our cost of acquisition is because until the last few months it's been pretty much organically grown but uh you know we do spend you know it's very hard to actually crunch those numbers how are you getting let's instead of focusing on the number then let's focus on how you're getting new customers so how are you signing up new customers so there's a lot of referrals you know from existing clients and then we do go to some trade shows but what would you pay for a trade show what was the last one you went to so we would go to let's say ebay open you know we were you know a silver sponsor or something like that and you know might spend fifteen twenty thousand dollars you know attending a trade show like that or the internet retailer event um so those are you know depending you know depending on travel and setting up the booth it could cost twenty twenty five thousand dollars to to get involved in one of those conferences but you know we maybe meet a hundred you know potential clients and sometimes the sales cycle is kind of long because they uh you know they don't necessarily want to transition to another platform in the middle of the year they want to you know plan it and negotiate and whatever it may be but that's been the primary way we've gotten to know new people uh but uh initially was all through organic recommendations and referrals um jeremy break your team down today what percent are like sales marketing versus...