Rich Yoon, founder of Jet Designs, discusses customer retention dynamics for productized design agencies on Startup Acquisition Stories.
Insight
Design agencies should avoid money-back guarantees to prevent client exploitation
“At the time we had a money back guarantee for the first one. So they would, Use us for like three weeks, almost like a month and like a few days before they'd like cancel. So that really sucked. And I don't think I'd recommend other founders.”
Insight
Selling founders should prioritize closing a deal over maximizing valuation
“There was like a quote, something like, you know, any deal is better than a strikeout or something like that. And that, that was like, Hey, like, I think that was, that's true. And a lot of, I think I see listings on there where vendors want to get, obviously …”
Disclosure
Jet Designs acquired customers via Meta ads and targeted outbound
“We ran some ads on Facebook and Instagram, that was really good as well as Outbound on LinkedIn, and email, just reaching out to recently, companies. That was kind of our main two, two main channels.”
Assertion Not checkable as stated
Micro-acquisitions attract inbound from PE, agencies, and solo founders
“Just the inbound that I got with Just so many different people, like PE firms, and then, like, solo founders, as well as, like established, like, actual agencies, like, marketing agencies that wanted to, you know, expand to, like, design services and stuff”
Disclosure
Yoon structured post-sale transitions as three free weeks, then weekly pay
“So that is it's three weeks for sure. And then after that, it's like for every week, additional week, it's like you know, additional pay type of thing.”