Beerud Sheth founded Elance back in 1998. At the time, the concept was new and path breaking. Today, with freelancing becoming a gigantic part of the global workplace, the company is playing a massive role in matching businesses with service providers. You can also read our interview with Fabio Rosati on Elance’s evolution. Today, Beerud
Sramana Mitra: What I see is that the bigger disruption is in looking for systematic ways of being able to compensate influencers. Reed Berglund: That’s one way of looking at it, absolutely. If you examine the initial goal for these influencers on these platforms, they were free platforms. They went on from a hobby standpoint.
Sramana Mitra: What did a McDonalds campaign like that yield you in terms of revenue? Are we talking about a $10,000 client or a $200,000 client? Reed Berglund: That’s more in the neighborhood of a $100,000 client. Sramana Mitra: Is that your sweet spot? Is that what you’re looking for as you’re building this business?
Sramana Mitra: Walk me through a use case such that we can understand how the workflow operates here. Reed Berglund: I’ll walk you through a program that we just did for Universal Music Group. This is a franchise that is about 25 years old. Its success came during the CD era, which was much different
Sramana Mitra: The company didn’t work out. Reed Berglund: The company didn’t work out. We were ahead of the market. That’s one of the great lessons in my career. We were also trying to change buying behavior in a highly entrenched industry. Sramana Mitra: What happened next? Reed Berglund: We spun out of that company. One
Continuing with our Bootstrapping Using Services theme, FullBottle is an interesting social media marketing venture that taps into the reach and engagement capacity of influencers to attract customers. Sramana Mitra: Let’s start at the very beginning of your story. Where are you from? Where were you born, raised, and in what kind of circumstances? Reed
Sramana Mitra: Let me understand the open source strategy a little bit better. You offer a portion of your technology as open source, right? Mike Oeth: Correct. Sramana Mitra: It’s a freemium open source model. You have other functionalities and features. It’s a classical commercial open source model. Mike Oeth: Right. On top of that,
Sramana Mitra: Interesting! What about financing? Did you, at any point, raise external financing? Mike Oeth: We did not. We have stayed completely self-funded. We see ourselves as a software company and we’re lucky enough to have software margins. We’ve been cash flow positive since 6 to 12 months of starting. Rob does the marketing and