10 Million will take some time, but not 1 Million.
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Posted On: 10/06/2019 9:50:11 AM
10 Million will take some time, but not 1 Million. 1 Million to me is a magic number. When I was young, I wanted to be a millionaire. Nowadays, a million doesn't seem to get you very far, but it certainly would here. Verb keeps telling us that we have around 700,000 users. But I am not sure what that number represents as many contracts use an outdated structure. I am talking about 1mil users under the current SaaS pricing model. I have no idea how close or how far we are from that.
Imagine a million paying users of the App that someone is paying $2 per month for each. That is $2mil/month for just the cost of the app.
Now let's try to calculate some of the "add on" revenue. Rory has said recently his goal is to get to $10 per month per user of revenue. However, he has said they are no where near that now. My rough and sometimes misguided calculations tell me we are under $1 per user currently, but remember, sampling and some of the other add on features have only recently become available. But let's say they can get to a quarter of the $10/user and call it $2.50 per user per month (not including the cost of the app). That is another $2.5mil/month.
Adding it all together ($2mil/month in the subscription fee for the app + $2.5mil/month for add on revs), that would be $4.5mil/user of SaaS revenue per month. Annually, that would be $54mil for just the Direct Sales vertical alone. Judging that our current run rate is about $16mil per year, $54mil represents a crap ton of growth, however very realistic. At the rate Verb is adding new customers and switching over existing customers to the new pricing structure, and adding in sampling, we could be there reasonably soon. Please keep in mind, that is only revenues for the Direct Sales vertical and not anything else. Should anything else bear fruit, which Rory keeps telling us it will, that will be over and above the $54mil.
Another thing to keep in mind is that this is SaaS revenue which brings with it huge margins (i.e. extremely profitable) compared to the non-digital side. Wall Street loves huge margins.
Last thing to keep in mind is that once each new company has been set up with the app, the company is doing the marketing for us. They want their sales associates using the app because they know it increases each associates sales and it is a retention tool so associates stick around much longer if they use it. Why? Because the associates become successful selling product, which means more money in their hands, which means they will stick around. People don't tend to leave jobs if they are raking it in.
I have seen multiple videos put out by many of Verb's customers who have launched their app, and many of them are pushing their associates to use the sampling. Point is, each customer of Verb is pushing their own folks to increase our revenue. They are doing the marketing for us. HUGE!!! All we have to do is get the company to sign on and put forth the app, provide some initial support, and it takes on a life of its own, grass roots growth, if you will. Do yourself a favor and go check out the number of downloads for each of these customers with a new app and you will be amazed. Doesn't mean they are all using them, but it becomes a game of numbers, and one can see how quickly we can get to a million users.
If Johnny sees Dorris getting sales awards and being very successful, and Johnny finds out the secret to Dorris's success is adopting use of the Verb app, how long do you think it will take for Johnny to start using the app? Not sure I can count in milliseconds.
At $54mil/year, I don't think we go unnoticed. At $54mil/year I don't think we have a measly multiplier of 1.5. So many doors open for us when we are generating that kind of revenue that are not available to us now.
Ahhh, a million....if only.
Imagine a million paying users of the App that someone is paying $2 per month for each. That is $2mil/month for just the cost of the app.
Now let's try to calculate some of the "add on" revenue. Rory has said recently his goal is to get to $10 per month per user of revenue. However, he has said they are no where near that now. My rough and sometimes misguided calculations tell me we are under $1 per user currently, but remember, sampling and some of the other add on features have only recently become available. But let's say they can get to a quarter of the $10/user and call it $2.50 per user per month (not including the cost of the app). That is another $2.5mil/month.
Adding it all together ($2mil/month in the subscription fee for the app + $2.5mil/month for add on revs), that would be $4.5mil/user of SaaS revenue per month. Annually, that would be $54mil for just the Direct Sales vertical alone. Judging that our current run rate is about $16mil per year, $54mil represents a crap ton of growth, however very realistic. At the rate Verb is adding new customers and switching over existing customers to the new pricing structure, and adding in sampling, we could be there reasonably soon. Please keep in mind, that is only revenues for the Direct Sales vertical and not anything else. Should anything else bear fruit, which Rory keeps telling us it will, that will be over and above the $54mil.
Another thing to keep in mind is that this is SaaS revenue which brings with it huge margins (i.e. extremely profitable) compared to the non-digital side. Wall Street loves huge margins.
Last thing to keep in mind is that once each new company has been set up with the app, the company is doing the marketing for us. They want their sales associates using the app because they know it increases each associates sales and it is a retention tool so associates stick around much longer if they use it. Why? Because the associates become successful selling product, which means more money in their hands, which means they will stick around. People don't tend to leave jobs if they are raking it in.
I have seen multiple videos put out by many of Verb's customers who have launched their app, and many of them are pushing their associates to use the sampling. Point is, each customer of Verb is pushing their own folks to increase our revenue. They are doing the marketing for us. HUGE!!! All we have to do is get the company to sign on and put forth the app, provide some initial support, and it takes on a life of its own, grass roots growth, if you will. Do yourself a favor and go check out the number of downloads for each of these customers with a new app and you will be amazed. Doesn't mean they are all using them, but it becomes a game of numbers, and one can see how quickly we can get to a million users.
If Johnny sees Dorris getting sales awards and being very successful, and Johnny finds out the secret to Dorris's success is adopting use of the Verb app, how long do you think it will take for Johnny to start using the app? Not sure I can count in milliseconds.
At $54mil/year, I don't think we go unnoticed. At $54mil/year I don't think we have a measly multiplier of 1.5. So many doors open for us when we are generating that kind of revenue that are not available to us now.
Ahhh, a million....if only.
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