Sramana Mitra: How do you charge? Is it a per user pricing model?
Karl Mehta: The pricing model is exactly like Salesforce or Slack. It’s a per user per month model. It’s close to $5 to $7 per user per month. It ratchets down with volume. If you have more than 10,000 employees, you get a pretty significant discount.
Sramana Mitra: When you start a significant account, what kind of deal size are you starting at? Is it $10,000 a month or $100,000? Where does the sales cycle begin?
Karl Mehta: Sales cycle begins with a very minimum commitment for as little as $5,000 a month. You get a pretty good experience of it and at the end of the month, you can either turn it off or add more users to it. >>>
Sramana Mitra: In the example with the email system, you’re saying that you prefer to do all the delivery from your email marketing systems. You have a lot more control over the trial and error process. How do you control the Facebook system? You’re not going to be delivering those ads. Those ads are going to be delivered by Facebook, and you’re going to have to interface with the Facebook system. How do you manage the trial and error process given that constraint?
Or Shani: I think it’s the same thing. I look at it differently. Is there an option not to work through Facebook? Not in the best possible way you want to do it. It’s a necessary evil. The question is not whether you have, more or less, control. How do you build a mechanism and a machine that reacts and does the best possible work? >>>
Entrepreneurs are invited to the 314th FREE online 1M/1M roundtable mentoring session on Thursday, July 21, 2016, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea to Sramana Mitra. You’ll gain straightforward feedback, advice on next steps, and she’ll answer any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
In case you missed it, you can listen to the recording here:
Referring to online reviews is no longer restricted to restaurant booking, hairstylists, or your neighborhood dog walker. More and more people are using job review sites like Glassdoor.com to review their next new job. Little wonder then that the increasing traffic has helped drive valuations upwards as the company gets ready to go public.
Sramana Mitra: To what extent are your corporate clients specifying what areas they want learning content in, which then drives your strategy of finding people who can produce that content and deliver that content on your network?
Karl Mehta: When a corporate client sets up EdCast, they tell us the topics for which they set up channels. They will set up a channel on leadership or supply chain, for example. Those are all the topics that’s given to us. That goes into our content engine that brings either existing web content or it brings influencers that we know. Every enterprise has their own subject matter experts but they have not tapped into that. Our platform allows them to identify those subject matter experts. They can now share knowledge that is already sitting inside their company. That is a huge asset. >>>
During this week’s roundtable, our guest was Henry Schuck, Co-founder and CEO, DiscoverOrg, a first-time entrepreneur who has bootstrapped his company to $25 million ARR, and then raised private equity financing from TA Associates. Henry sees a clear path to $100 million. Very inspiring story!
Sramana Mitra: Do you do this through your own email marketing system or do you interface with other email marketing systems and optimize as an add-on?
Or Shani: We can do both. We usually prefer people sending things through us. It depends on the integration, process, and the state of the client, but we really prefer to be on the driver side. Another example is email. Once you send an email, what’s going to be your open rate? It might be 2%. It might be 5%. If you’re really hyper-targeted, you can get maybe 7%.
We have Harley-Davidson here in New York as a client. They can send a newsletter or an email with a headline of, “If you’re going to click on the link here, you’re going to get a free Harley-Davidson.” Theoretically, they can give a Harley-Davidson bike which costs $30,000 to anybody who is going to open the >>>