Sramana Mitra: I see. You were going into networks and finding which clients of those networks had strong landing pages, and then going after them and telling them that you would optimize their campaigns and get them further enhancements.
Stephan Goss: I wasn’t operating on their campaign. I was risking my own money. I wasn’t telling them, “Hey, I’ll spend $1,000 on your behalf. If it works, you give me $100.” I was spending $1,000 of my own money, and they would pay me on a cost-per-action. For every acquisition that they did, I would get $5.
Sramana Mitra: You were running an affiliate marketing yourself. >>>
Rudy Nadilo: I have a thought that is separate from what Tobi just said. A lot of people told me I was crazy to go work for the Swedes. When I joined, it was probably $2 million. There were more than 30 clients. I looked at this, not as a risk, but as a gift. I built companies from scratch and knew what it took. When you think about Tobi’s journey, he was all in. He put the horse, the farm, the pig, and the cow on the line.
I’m now launching into North America and I’ve got a list of clients that I can go to and say, “Hey, Audi, Mercedes-Benz, Hilti, and KLM are using this software.” I’m actually able to show them examples of that. To those people, I was never that guy who could invent the thing. Tobi is the inventor. I have always prided myself in being able to take a product and figure out a way to package it, sell it, and grow it. For those people who are more on the marketing >>>
According to a MarketsandMarkets report, the cyber security market is projected to grow 10.6% annually over the next five year period to be worth $202.36 billion by the year 2021. The industry is estimated to be worth $122.45 billion this year. The report projects the highest growth in the application security market.
Sramana Mitra: What did you need to do in terms of sales and marketing? Precisely, what were the hires assigned to do?
Katherine Kostereva: Since the beginning of the company, we invested heavily into both inbound and outbound marketing. We always had sales development. In 2003, we managed to do it just through cold calls. It doesn’t work nowadays. We use completely different tools for the outbound campaigns. When we started, I was making cold calls as well.
Sramana Mitra: You were actually calling people to sell $10 a month solution.
Katherine Kostereva: I was calling people to find the opportunity, then I’d visiting people to sell them the product for as many users as they have. One of >>>
As with other Vision India 2020 ideas, Gagori was also originally designed as a billion dollar project. It focused on using Japanese and Italian designers working with Indian potters and ceramicists to create high-end dinner sets, vases, platters, pots, etc. You can read it here.
Once again, there is a comparable opportunity with some of the same ideas, but without the need to scale at exponential pace. You could build a set of e-commerce businesses that specifically focus on high-end ceramics.
Sramana Mitra: Let’s go back to the very beginning. I’m going to step you through the process of how you put one foot before the other. How did you get the business off the ground? Who was the first client? How did you win this client? How did the business start to unfold?
Stephan Goss: I had gotten decently good at buying ads. I started buying ads for a company. Basically, it was just affiliate marketing. I was getting the deals through a network. I wasn’t doing any of the sales directly myself. I was just finding the people who had the offers that I could piggyback on top of. I would buy ads. I would spend $1000 and hopefully make $1,200 back. It was an arbitrage play. The nice thing is if you’re good at doing that, you can be profitable. We had the opportunity to be profitable from day one.
Sramana Mitra: What kind of a client did you have? What kind of affiliate segment was this company trying to reach?
Sramana Mitra: What is it about this company that appealed to you and what is your background?
Rudy Nadilo: My background is in technology. To keep it simple, I graduated from Northwestern and got my MBA. I ended up being in the advertising industry for the first 10 years. Then I went to the research field because there was a firm called Information Resources, which had this amazing technology called Behaviour Scan. I just thought about this.
I remember sitting with a client and looking at these people come in presenting these electronic test markets and quantifying. You’d write an opinion paper and everybody was talking about it. Here was people coming in with facts. We were able to, electronically, send and read what people are buying in the supermarket based upon their scanner purchases and beam a television ad to one house versus another house. Being a geek, I love that. I worked for IRI for 10 years running their consumer panel and ended up being their Chief Marketing Officer. There was a lot of manual things being done. >>>
According to market research firm Packaged Facts, the US meal kit delivery services market is estimated to grow to $1.5 billion in sales this year. The researcher predicts that the industry will grow to a multi-billion dollar market over the next five years. New York-based Blue Apron is estimated to be the market leader in the industry and analysts believe that the company is now gearing to go public.