StarZero All shows Try the podcast clipper →

Jan 19, 2023 · 21m · top-founders

$50m Revenue Selling Salesforce for Real Estate Brokerages, Beauty of Multi Year Deals with Accelerators

York Bauer · 12m spoken Nathan Latka · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of Conversations with Nathan Latka, MoxieWorks CEO York Bauer explains how he scaled a residential real estate software spin-off into a $50 million annual run rate enterprise SaaS platform backed by Vector Capital. Bauer breaks down the company's enterprise-only licensing model, multi-year contracts with inflation accelerators, ecosystem monetization, and disciplined M&A strategy.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 35% of the talking time here. How this is scored →

Nathan as informed peer 5.1 Guest teaching 2.4 Guest disagreement 1.5 Nathan pushing back 2.9
05100:0010:0020:000:00–2:05 · Nathan as informed peer 0/10 Announcement for SaaS Open Event in New York Solo intro monologue and promotional announcement by the host for the SaaS Open event. No interaction occurs.2:06–5:53 · Nathan as informed peer 6/10 Enterprise Focus and Macroeconomic Market Resilience Nathan inquires how SOFR rate increases affect brokerage churn, which York clarifies by highlighting their enterprise focus on profitable full-service brokerages. Nathan connects multi-million ACV accounts to Net Dollar Retention indicators.5:53–8:33 · Nathan as informed peer 5/10 Spin-off Origins and Private Equity Partnership The conversation covers the spin-off background from Windermere Real Estate and Vector Capital's PE backing. Nathan reframes anchor customer initial revenue as 'product roadmap acceleration fees.'8:34–10:50 · Nathan as informed peer 6/10 Scaling to 3,500 Brokerages and $50M Run Rate Nathan calculates revenue by multiplying 3,500 customers by a $50k ACV, estimating $100M+ revenue. York corrects the assumption by clarifying that enterprise volume pricing tiers put their run rate closer to $50M.10:51–13:55 · Nathan as informed peer 7/10 Operator Mindset: Navigating 1 to 10 Growth Nathan presses York on why he chose to manage a 1-to-10 growth phase rather than starting a zero-to-one company to own 100%, laying out standard hired-CEO compensation packages. York responds by detailing the high failure rates and risk profile differences.13:56–16:03 · Nathan as informed peer 6/10 M&A Discipline and Board Collaboration with Vector Capital York describes their acquisitions with Vector Capital and board structure. Nathan spots the anomaly of an even six-person board, prompting York to explain that an unfilled seventh seat accounts for the number.16:05–18:30 · Nathan as informed peer 7/10 Multi-Year Contract Acceleration and Ecosystem Upselling Nathan challenges the multi-year deal model, arguing that locked contract terms limit Net Dollar Retention expansion. York explains that their business expands through modular add-ons and a 150-partner ecosystem rather than seat expansion alone.18:30–21:08 · Nathan as informed peer 4/10 The Famous Five Questions with York Bauer Standard rapid-fire Famous Five concluding questions covering reading habits, sleep schedule, and career advice, followed by Latka's wrap-up summary.0:00–2:05 · Guest teaching 0/10 Announcement for SaaS Open Event in New York Solo intro monologue and promotional announcement by the host for the SaaS Open event. No interaction occurs.2:06–5:53 · Guest teaching 3/10 Enterprise Focus and Macroeconomic Market Resilience Nathan inquires how SOFR rate increases affect brokerage churn, which York clarifies by highlighting their enterprise focus on profitable full-service brokerages. Nathan connects multi-million ACV accounts to Net Dollar Retention indicators.5:53–8:33 · Guest teaching 2/10 Spin-off Origins and Private Equity Partnership The conversation covers the spin-off background from Windermere Real Estate and Vector Capital's PE backing. Nathan reframes anchor customer initial revenue as 'product roadmap acceleration fees.'8:34–10:50 · Guest teaching 4/10 Scaling to 3,500 Brokerages and $50M Run Rate Nathan calculates revenue by multiplying 3,500 customers by a $50k ACV, estimating $100M+ revenue. York corrects the assumption by clarifying that enterprise volume pricing tiers put their run rate closer to $50M.10:51–13:55 · Guest teaching 3/10 Operator Mindset: Navigating 1 to 10 Growth Nathan presses York on why he chose to manage a 1-to-10 growth phase rather than starting a zero-to-one company to own 100%, laying out standard hired-CEO compensation packages. York responds by detailing the high failure rates and risk profile differences.13:56–16:03 · Guest teaching 2/10 M&A Discipline and Board Collaboration with Vector Capital York describes their acquisitions with Vector Capital and board structure. Nathan spots the anomaly of an even six-person board, prompting York to explain that an unfilled seventh seat accounts for the number.16:05–18:30 · Guest teaching 4/10 Multi-Year Contract Acceleration and Ecosystem Upselling Nathan challenges the multi-year deal model, arguing that locked contract terms limit Net Dollar Retention expansion. York explains that their business expands through modular add-ons and a 150-partner ecosystem rather than seat expansion alone.18:30–21:08 · Guest teaching 1/10 The Famous Five Questions with York Bauer Standard rapid-fire Famous Five concluding questions covering reading habits, sleep schedule, and career advice, followed by Latka's wrap-up summary.0:00–2:05 · Guest disagreement 0/10 Announcement for SaaS Open Event in New York Solo intro monologue and promotional announcement by the host for the SaaS Open event. No interaction occurs.2:06–5:53 · Guest disagreement 2/10 Enterprise Focus and Macroeconomic Market Resilience Nathan inquires how SOFR rate increases affect brokerage churn, which York clarifies by highlighting their enterprise focus on profitable full-service brokerages. Nathan connects multi-million ACV accounts to Net Dollar Retention indicators.5:53–8:33 · Guest disagreement 1/10 Spin-off Origins and Private Equity Partnership The conversation covers the spin-off background from Windermere Real Estate and Vector Capital's PE backing. Nathan reframes anchor customer initial revenue as 'product roadmap acceleration fees.'8:34–10:50 · Guest disagreement 2/10 Scaling to 3,500 Brokerages and $50M Run Rate Nathan calculates revenue by multiplying 3,500 customers by a $50k ACV, estimating $100M+ revenue. York corrects the assumption by clarifying that enterprise volume pricing tiers put their run rate closer to $50M.10:51–13:55 · Guest disagreement 3/10 Operator Mindset: Navigating 1 to 10 Growth Nathan presses York on why he chose to manage a 1-to-10 growth phase rather than starting a zero-to-one company to own 100%, laying out standard hired-CEO compensation packages. York responds by detailing the high failure rates and risk profile differences.13:56–16:03 · Guest disagreement 1/10 M&A Discipline and Board Collaboration with Vector Capital York describes their acquisitions with Vector Capital and board structure. Nathan spots the anomaly of an even six-person board, prompting York to explain that an unfilled seventh seat accounts for the number.16:05–18:30 · Guest disagreement 2/10 Multi-Year Contract Acceleration and Ecosystem Upselling Nathan challenges the multi-year deal model, arguing that locked contract terms limit Net Dollar Retention expansion. York explains that their business expands through modular add-ons and a 150-partner ecosystem rather than seat expansion alone.18:30–21:08 · Guest disagreement 1/10 The Famous Five Questions with York Bauer Standard rapid-fire Famous Five concluding questions covering reading habits, sleep schedule, and career advice, followed by Latka's wrap-up summary.0:00–2:05 · Nathan pushing back 0/10 Announcement for SaaS Open Event in New York Solo intro monologue and promotional announcement by the host for the SaaS Open event. No interaction occurs.2:06–5:53 · Nathan pushing back 3/10 Enterprise Focus and Macroeconomic Market Resilience Nathan inquires how SOFR rate increases affect brokerage churn, which York clarifies by highlighting their enterprise focus on profitable full-service brokerages. Nathan connects multi-million ACV accounts to Net Dollar Retention indicators.5:53–8:33 · Nathan pushing back 2/10 Spin-off Origins and Private Equity Partnership The conversation covers the spin-off background from Windermere Real Estate and Vector Capital's PE backing. Nathan reframes anchor customer initial revenue as 'product roadmap acceleration fees.'8:34–10:50 · Nathan pushing back 4/10 Scaling to 3,500 Brokerages and $50M Run Rate Nathan calculates revenue by multiplying 3,500 customers by a $50k ACV, estimating $100M+ revenue. York corrects the assumption by clarifying that enterprise volume pricing tiers put their run rate closer to $50M.10:51–13:55 · Nathan pushing back 5/10 Operator Mindset: Navigating 1 to 10 Growth Nathan presses York on why he chose to manage a 1-to-10 growth phase rather than starting a zero-to-one company to own 100%, laying out standard hired-CEO compensation packages. York responds by detailing the high failure rates and risk profile differences.13:56–16:03 · Nathan pushing back 3/10 M&A Discipline and Board Collaboration with Vector Capital York describes their acquisitions with Vector Capital and board structure. Nathan spots the anomaly of an even six-person board, prompting York to explain that an unfilled seventh seat accounts for the number.16:05–18:30 · Nathan pushing back 5/10 Multi-Year Contract Acceleration and Ecosystem Upselling Nathan challenges the multi-year deal model, arguing that locked contract terms limit Net Dollar Retention expansion. York explains that their business expands through modular add-ons and a 150-partner ecosystem rather than seat expansion alone.18:30–21:08 · Nathan pushing back 1/10 The Famous Five Questions with York Bauer Standard rapid-fire Famous Five concluding questions covering reading habits, sleep schedule, and career advice, followed by Latka's wrap-up summary.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 87.3% · guest 12.7%0:00 · Nathan 87.3% · guest 12.7%3:00 · Nathan 17.5% · guest 82.5%3:00 · Nathan 17.5% · guest 82.5%6:00 · Nathan 23.4% · guest 76.6%6:00 · Nathan 23.4% · guest 76.6%9:00 · Nathan 23.8% · guest 76.2%9:00 · Nathan 23.8% · guest 76.2%12:00 · Nathan 31.8% · guest 68.2%12:00 · Nathan 31.8% · guest 68.2%15:00 · Nathan 27.1% · guest 72.9%15:00 · Nathan 27.1% · guest 72.9%18:00 · Nathan 16.5% · guest 83.5%18:00 · Nathan 16.5% · guest 83.5%21:00 · Nathan 82.9% · guest 17.1%21:00 · Nathan 82.9% · guest 17.1%
Sharpest disagreement ▶ 12:58 York rejects zero-to-one glorification

York pushes back against Nathan's suggestion to found a business from scratch, arguing that zero-to-one failure rates are off the charts and validating the 1-to-10 growth model.

 Hardest push from Nathan ▶ 12:24 Nathan probes hired CEO equity and risk profile

Nathan questions why an executive would take a hired CEO equity slug of 5-20% instead of launching their own startup with 100% equity.

 Biggest teaching moment ▶ 10:05 York explains enterprise tiered volume pricing

York corrects Nathan's quick math assumption of $100M+ ARR by breaking down how volume pricing discounts scale down per-seat ARPU on large accounts.

 Nathan holds their own ▶ 17:15 Nathan highlights multi-year NDR limitation risks

Nathan demonstrates SaaS domain expertise by interrupting to note that multi-year locked contracts can restrict a company's ability to drive Net Dollar Retention.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Announcement for SaaS Open Event in New York 0000 Solo intro monologue and promotional announcement by the host for the SaaS Open event. No interaction occurs.
Enterprise Focus and Macroeconomic Market Resilience 6323 Nathan inquires how SOFR rate increases affect brokerage churn, which York clarifies by highlighting their enterprise focus on profitable full-service brokerages. Nathan connects multi-million ACV accounts to Net Dollar Retention indicators.
Spin-off Origins and Private Equity Partnership 5212 The conversation covers the spin-off background from Windermere Real Estate and Vector Capital's PE backing. Nathan reframes anchor customer initial revenue as 'product roadmap acceleration fees.'
Scaling to 3,500 Brokerages and $50M Run Rate 6424 Nathan calculates revenue by multiplying 3,500 customers by a $50k ACV, estimating $100M+ revenue. York corrects the assumption by clarifying that enterprise volume pricing tiers put their run rate closer to $50M.
Operator Mindset: Navigating 1 to 10 Growth 7335 Nathan presses York on why he chose to manage a 1-to-10 growth phase rather than starting a zero-to-one company to own 100%, laying out standard hired-CEO compensation packages. York responds by detailing the high failure rates and risk profile differences.
M&A Discipline and Board Collaboration with Vector Capital 6213 York describes their acquisitions with Vector Capital and board structure. Nathan spots the anomaly of an even six-person board, prompting York to explain that an unfilled seventh seat accounts for the number.
Multi-Year Contract Acceleration and Ecosystem Upselling 7425 Nathan challenges the multi-year deal model, arguing that locked contract terms limit Net Dollar Retention expansion. York explains that their business expands through modular add-ons and a 150-partner ecosystem rather than seat expansion alone.
The Famous Five Questions with York Bauer 4111 Standard rapid-fire Famous Five concluding questions covering reading habits, sleep schedule, and career advice, followed by Latka's wrap-up summary.

Statements from this episode (11)

Assertion Not checkable as stated
Bauer: Traditional brokerages are profitable, unlike venture-backed real estate startups
“We're not only on the large brokerage end, we're also on the quality brokerage, the full service brokerage end, which means that these companies tend to be better run. They are profitable and they don't rely on the kind of funding that you've seen some of the …”
York Bauer Jan 19, 2023 ▶ 3:08
Disclosure
Bauer: MoxieWorks mid-market deals range from $100k to $500k ARR
“Our, Small deals are typically 50,000 in ARR. Although we don't concentrate heavily on that end of the market, we tend to focus on more, we would call at least the middle market, which is, I'd say, you know, a hundred to 500 grand ARR. But we have customers, a…”
York Bauer Jan 19, 2023 ▶ 4:57
Insight
Latka: Million-dollar customer count is the best indicator of 150%+ NDR
“That's the best clue you can look in a SaaS company to Do they have the ability to drive net dollar attention above one 50 is how many customers are paying more than a million bucks a year.”
Nathan Latka Jan 19, 2023 ▶ 5:20
Disclosure
Bauer: MoxieWorks has about six customers paying over $1 million annually
“Actually, we have about a half dozen.”
York Bauer Jan 19, 2023 ▶ 5:31
Insight
Bauer: Selling software directly to real estate agents resembles high-churn B2C
“It looks, it masquerades as business because these are agents and they're doing business, but in reality, they behave like a consumer, which means the CAC is really high, the support burden is really high, and they churn like crazy.”
York Bauer Jan 19, 2023 ▶ 9:40
Disclosure
Bauer: MoxieWorks is generating around $50M in annual revenue
“We're in the fifty million range.”
York Bauer Jan 19, 2023 ▶ 10:30
Prediction Not checkable as stated
Bauer: MoxieWorks will surpass $100M revenue within two to three years
“I think this year is going to be challenging. You guys all see in the headlines, what's going on in the housing market. So I think it'll be Challenging to do this year, but we absolutely will break a hundred million in the coming, you know, couple, three years…”
York Bauer Jan 19, 2023 ▶ 10:37
Assertion Not checkable as stated
Latka: Hired growth CEOs typically receive $250k–$350k cash and 5–20% equity
“Most CEO comps, you know, in this kind of situation, you're going to be making cash to 50 to three 50, and you're going to have an equity slug. That's something between sort of five and 20% of the business, somewhere, somewhere sort of in that range.”
Nathan Latka Jan 19, 2023 ▶ 12:37
Opinion
Bauer: Private equity firms are much more disciplined than VCs
“And that was the difference I think, by the way, between a PE and a VC approach in these last several years, PEs are much more disciplined. And I think that, That serves things well now in a slowdown.”
York Bauer Jan 19, 2023 ▶ 14:26
Disclosure
Bauer: MoxieWorks multi-year contracts use cost-of-living inflation clauses
“It's typically a COLA cost of living. You know, it's how we phrase it. So it seems reasonable. It's essentially an inflation clause.”
York Bauer Jan 19, 2023 ▶ 16:49
Disclosure
Bauer: MoxieWorks grows by adding products rather than seat licenses
“So our growth comes less from license count growth, although You know, sometimes our customers grow acquisitively or organically. Most of our growth comes by adding products. Not license.”
York Bauer Jan 19, 2023 ▶ 17:51
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more