How Targetrecruit CEO Jonathan Ross grew Targetrecruit to $4.8M revenue and 300 customers in 2018.

hello everyone my guest today is Reena Gupta she's a serial entrepreneur and philanthropist interestingly dove into entrepreneurship when most women take a career break after her first child was born she's now doing that Kavya a tool called mom relaunch we jump into shows to began with a staffing company called Avaya then we've gone to a company called target recruit the most innovative talent management platform built on the Salesforce platform that modernizes the recruiting cycle at organizations from front to back office all right now are you ready to take us to the top yes I am ready thanks a lot Nathan all right so where are you spending more of your time mom relaunch or Target recruit currently I'm spending sort of equal time in both the companies when I started mom relaunch I thought it will take its own time to grow but the way the we are getting the support and initiatives it says kicked off at a very fast pace and I'm still trying to juggle the time between the two companies so what what are the business models on each of them is mom relaunch just information a membership site and what's target recruit so let me give you a little background of how it all comes together so you will understand what why and how I'm doing this do that I want to do that first but I want to get into that but first just tell us the current business model and then work backwards and tell us the story absolutely so the target recruit is a subscription-based applicant tracking system and vendor management system which is based on salesforce.com and we the business model is we have a per user license caused as well as some services and what about mom relaunch okay so mom relaunch business model is to do the placement and consulting projects by utilizing the talent pool that we trained on a launch pad that's the business model plus we have lot more things to offer in terms of mom relaunch but just focusing on the model the business model that's what we are okay so mom relaunch in a way you're kind of teaching your training moms too and then maybe the moms go use target recruit to find our next job target recruit will be the system that we run mom relaunch on just from the first technology point of view but think of mom relaunch as a services company that goes to clients and say do you need and our focus is an IT and HR for now so do you need do you need Salesforce developer do you need a Java developer do you need a business analyst we provide them and they can hire full-time part-time they can give us the whole project to work on they can give us and hire them as a consulting just on a contract basis and its target recruit your baby you're the founder you joined later on no it's my it's my baby it's your second baby right you have one one real baby and then target or playwright I have two real baby two real babies and four companies okay so target recruit when did you launch the company give us more the backstory here sure so target recruit was officially launched on app exchange which is the target which is the salesforce.com marketplace and we launched target recruit in 2008 okay a heck of a year to launch a company what where were you personally at that time personally I was still running my other company which is called Avaya a navantia I started as an IT consulting I was an independent consultant and then I turned into an IT staffing then in one of the projects I came across salesforce.com immediately fell in love with the platform decided to specialize in it so we started providing as a niche consulting partner for salesforce.com and then have you bootstrapped target recruiter if you decided to race no my company's a bootstrap coach she's in California and she's bootstrap folks I celebrate this is amazing all right good so so you're totally bootstrapped I love that and give us a sense real quick of kind of team size and and what you where you see the product going over the next year so about target recruit it's about 50 to 55 people on and off in that size we have people in I would say multiple countries now we have some developers in Belarus we have our sales marketing developers in India we have people in us some all across whenever we whenever and wherever we find talent that's a good answer and can you give us just a quick story about a customer that's paying target recruiting specifically how they're using it besides mom relaunch yeah absolutely so target recruit is started primarily with my background was in staffing company I understand that that industry well so we built a software the philosophy was a CRM based applicant tracking system that was a pretty innovative thing at that in 2008 and with Salesforce platform of flexibility and customization and integration it was one of the best time for us to launch the product so we went into the market with focus on staffing industries and just focus on the we call it in a industry as the front office solution and then we started adding the back-office and timesheet accounting scheduling be specialized in healthcare we specialized and just recently released a workforce management version of target recruit so we started with staffing industry so small medium large staffing industries are our clients and her name one of those client if you don't me asking you real quick what are these clients on average I mean give me a general sense the size of what they're paying per month are we talking ten bucks a month or 10 grand a month or more our target recruit is per user license about $99 per user per month okay any average logo that signs up has how many users I would say between 25 to 75 is a midsize if it is a small company it's about five to ten licenses okay so she's all gonna say 20 people at 99 bucks a month so the average customer maybe pays you two grand a month is that fair for the smaller size if it is mid-sized then it is seventy-five an average okay so maybe five users an average so depend on the client size okay but what I'm trying to do is get a sense of your average customers is about 20 people I mean is that a good average or no I would say more like 30 35 okay it's a good good number yeah that's good and then 99 that's per month not per year right yeah month oh okay good okay so again can you tell us a company right now that's that's using target recruit yeah if you do you need the customer names yeah yeah is there well just share a customer name that that you're comfortable sharing or that's giving you approval to share I want to hear an actual story not just kind of marketing yeah so I would say one of our I always like to use this customer because we grew with this customer and this is our MedPro staffing this is fro staffing Metro staffing there in Florida one of the one of our I would say the customer who really knows how to work with a company as a vendor as a partner and the in fact I always go back and say that we are in health care because of Metro staffing they helped us build products that are specifically for healthcare industry they helped us even architect the they were we were working with us so a customer like that is the reason why companies like us survive so I love to talk about them and they've been with you back since 2008 huh almost that time I would say 10 2010 but it's it's one of the it's one of my favorite stories to talk about is like every every customer you can go and learn from them but they're very few customers that understand how it makes to work work like a partner and what have you scaled to today in terms of total customers paying you I would say how close to about 300 is the right number and then of course that goes up and down and we started to carve out our expertise also scaling to larger clients and not only there's some big clients sure yeah I mean but I mean if I do the math on that 300 customers if each of those logos on average have 30 seats a pop paying 99 bucks a month I mean that puts you at like 890 grand a month in revenue is that generally accurate I would say it's an average so let's keep it like a number that fluctuates up and down because there's some customers we pay significantly low for getting the license and then there are some services and all those things but it's on about ballpark I would say it's pretty close if you look into those if we had charged full full price drops there yeah yeah but you hon so I want to make sure I get I get an accurate representation of kind of where you get credit here so I mean are you it mean is it way south of 800 grand a month are you like 200 grand a month or way north or what just to me a big range yeah I I'll have to look into that but I would prefer I think it's not around $800 a month I would say close to four five is much okay could you get so closer to 400 or 500 bucks a month in the reasoning behind that which is totally is maybe early customers are on bulk deals you give more discounted prices under 99 bucks a month yes okay very good and what do you grow at I look by the way I asked this question because people always assume bootstrap companies are flat to declining they can never grow your every year what are you growing at year every year I would say it's more about 3035 percent that Rene that's beautiful for a bootstrap company yeah I you know I always go back and say it's bootstrap but we try to run it as a completely like in a more like a startup mode so every time we are like looking...