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Nov 21, 2019 · 24m · top-founders

1580 Why ReviewPro CEO Sold 80% For $28M in 2016 and How He Grew to $15M in ARR Today

RJ Friedlander · 14m spoken Nathan Latka · 8m spoken
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Host Nathan Latka interviews ReviewPro founder and CEO RJ Friedlander to discuss scaling a B2B guest intelligence platform to $15 million in ARR on under $5 million in equity. Friedlander details the company's capital efficiency, low churn across 45,000 hotel locations, and the strategic rationale behind selling an 80% majority stake to Shiji for $28 million.

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 36.1% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 3.6 Guest disagreement 2.6 Nathan pushing back 4.1
05100:0010:0020:001:15–5:25 · Nathan as informed peer 5/10 Client Portfolio and Revenue Model Breakdown Nathan probes ReviewPro's revenue model, asking whether data feeds operate as one-off services. RJ clarifies that data delivery is an ongoing recurring API feed accounting for over 90% of revenue.5:25–8:53 · Nathan as informed peer 6/10 Product Suite, Market Reach, and Shiji Acquisition Nathan attempts to calculate monthly ARPU by dividing $1.2M run rate across 45k units, but RJ corrects the premise, explaining that enterprise brands like Radisson license thousands of properties at distinct rates alongside low-cost data units.8:53–11:15 · Nathan as informed peer 6/10 Founder Retention and Acquisition Deal Mechanics Nathan draws on private equity experience to ask why RJ stayed after a major exit and presses whether the $28M was balance sheet cash or secondary. RJ clearly details the angel investor liquidity and ongoing put option structure.11:19–15:02 · Nathan as informed peer 3/10 Promo Break: SaaStock Australasia Announcement Following Nathan's promotional announcement for SaaStock Australasia, the interview covers growth rates and churn benchmarks in a relaxed, friendly exchange.15:02–17:39 · Nathan as informed peer 6/10 Brand Retention Metrics and Sales Organization KPIs Nathan asks for Net Revenue Retention percentages, but RJ openly admits they do not track monthly cohort retention because enterprise hotel chains have constant property additions and subtractions.17:39–21:45 · Nathan as informed peer 8/10 Customer Acquisition Economics and Payback Debate Nathan vigorously presses RJ on CAC payback periods and sales efficiency. When RJ demurs and points to content marketing and a finite TAM, Nathan breaks down fully weighted CAC mechanics and insists on the math.21:45–23:36 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round, quickly resolving a mix-up regarding Booking.com's CEO before concluding with a recap of ReviewPro's metrics.1:15–5:25 · Guest teaching 3/10 Client Portfolio and Revenue Model Breakdown Nathan probes ReviewPro's revenue model, asking whether data feeds operate as one-off services. RJ clarifies that data delivery is an ongoing recurring API feed accounting for over 90% of revenue.5:25–8:53 · Guest teaching 5/10 Product Suite, Market Reach, and Shiji Acquisition Nathan attempts to calculate monthly ARPU by dividing $1.2M run rate across 45k units, but RJ corrects the premise, explaining that enterprise brands like Radisson license thousands of properties at distinct rates alongside low-cost data units.8:53–11:15 · Guest teaching 4/10 Founder Retention and Acquisition Deal Mechanics Nathan draws on private equity experience to ask why RJ stayed after a major exit and presses whether the $28M was balance sheet cash or secondary. RJ clearly details the angel investor liquidity and ongoing put option structure.11:19–15:02 · Guest teaching 2/10 Promo Break: SaaStock Australasia Announcement Following Nathan's promotional announcement for SaaStock Australasia, the interview covers growth rates and churn benchmarks in a relaxed, friendly exchange.15:02–17:39 · Guest teaching 6/10 Brand Retention Metrics and Sales Organization KPIs Nathan asks for Net Revenue Retention percentages, but RJ openly admits they do not track monthly cohort retention because enterprise hotel chains have constant property additions and subtractions.17:39–21:45 · Guest teaching 3/10 Customer Acquisition Economics and Payback Debate Nathan vigorously presses RJ on CAC payback periods and sales efficiency. When RJ demurs and points to content marketing and a finite TAM, Nathan breaks down fully weighted CAC mechanics and insists on the math.21:45–23:36 · Guest teaching 2/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round, quickly resolving a mix-up regarding Booking.com's CEO before concluding with a recap of ReviewPro's metrics.1:15–5:25 · Guest disagreement 2/10 Client Portfolio and Revenue Model Breakdown Nathan probes ReviewPro's revenue model, asking whether data feeds operate as one-off services. RJ clarifies that data delivery is an ongoing recurring API feed accounting for over 90% of revenue.5:25–8:53 · Guest disagreement 3/10 Product Suite, Market Reach, and Shiji Acquisition Nathan attempts to calculate monthly ARPU by dividing $1.2M run rate across 45k units, but RJ corrects the premise, explaining that enterprise brands like Radisson license thousands of properties at distinct rates alongside low-cost data units.8:53–11:15 · Guest disagreement 2/10 Founder Retention and Acquisition Deal Mechanics Nathan draws on private equity experience to ask why RJ stayed after a major exit and presses whether the $28M was balance sheet cash or secondary. RJ clearly details the angel investor liquidity and ongoing put option structure.11:19–15:02 · Guest disagreement 1/10 Promo Break: SaaStock Australasia Announcement Following Nathan's promotional announcement for SaaStock Australasia, the interview covers growth rates and churn benchmarks in a relaxed, friendly exchange.15:02–17:39 · Guest disagreement 3/10 Brand Retention Metrics and Sales Organization KPIs Nathan asks for Net Revenue Retention percentages, but RJ openly admits they do not track monthly cohort retention because enterprise hotel chains have constant property additions and subtractions.17:39–21:45 · Guest disagreement 6/10 Customer Acquisition Economics and Payback Debate Nathan vigorously presses RJ on CAC payback periods and sales efficiency. When RJ demurs and points to content marketing and a finite TAM, Nathan breaks down fully weighted CAC mechanics and insists on the math.21:45–23:36 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round, quickly resolving a mix-up regarding Booking.com's CEO before concluding with a recap of ReviewPro's metrics.1:15–5:25 · Nathan pushing back 3/10 Client Portfolio and Revenue Model Breakdown Nathan probes ReviewPro's revenue model, asking whether data feeds operate as one-off services. RJ clarifies that data delivery is an ongoing recurring API feed accounting for over 90% of revenue.5:25–8:53 · Nathan pushing back 5/10 Product Suite, Market Reach, and Shiji Acquisition Nathan attempts to calculate monthly ARPU by dividing $1.2M run rate across 45k units, but RJ corrects the premise, explaining that enterprise brands like Radisson license thousands of properties at distinct rates alongside low-cost data units.8:53–11:15 · Nathan pushing back 4/10 Founder Retention and Acquisition Deal Mechanics Nathan draws on private equity experience to ask why RJ stayed after a major exit and presses whether the $28M was balance sheet cash or secondary. RJ clearly details the angel investor liquidity and ongoing put option structure.11:19–15:02 · Nathan pushing back 2/10 Promo Break: SaaStock Australasia Announcement Following Nathan's promotional announcement for SaaStock Australasia, the interview covers growth rates and churn benchmarks in a relaxed, friendly exchange.15:02–17:39 · Nathan pushing back 5/10 Brand Retention Metrics and Sales Organization KPIs Nathan asks for Net Revenue Retention percentages, but RJ openly admits they do not track monthly cohort retention because enterprise hotel chains have constant property additions and subtractions.17:39–21:45 · Nathan pushing back 8/10 Customer Acquisition Economics and Payback Debate Nathan vigorously presses RJ on CAC payback periods and sales efficiency. When RJ demurs and points to content marketing and a finite TAM, Nathan breaks down fully weighted CAC mechanics and insists on the math.21:45–23:36 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round, quickly resolving a mix-up regarding Booking.com's CEO before concluding with a recap of ReviewPro's metrics.

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

0:00 · Nathan 53.9% · guest 46.1%0:00 · Nathan 53.9% · guest 46.1%3:00 · Nathan 23.8% · guest 76.2%3:00 · Nathan 23.8% · guest 76.2%6:00 · Nathan 29.1% · guest 70.9%6:00 · Nathan 29.1% · guest 70.9%9:00 · Nathan 29.4% · guest 70.6%9:00 · Nathan 29.4% · guest 70.6%12:00 · Nathan 51.4% · guest 48.6%12:00 · Nathan 51.4% · guest 48.6%15:00 · Nathan 16.2% · guest 83.8%15:00 · Nathan 16.2% · guest 83.8%18:00 · Nathan 31.2% · guest 68.8%18:00 · Nathan 31.2% · guest 68.8%21:00 · Nathan 47.1% · guest 52.9%21:00 · Nathan 47.1% · guest 52.9%24:00 · Nathan 100% · guest 0%24:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 20:25 Rejecting conventional CAC frameworks

RJ resists Nathan's insistence on standard SaaS payback metrics, arguing that market constraints and low-cost content marketing make standard CAC models less applicable to ReviewPro.

 Hardest push from Nathan ▶ 19:59 Pressing on fully weighted CAC

Nathan refuses RJ's deflection on acquisition costs and enumerates SDR ratios, commissions, and event overhead to demand a defined payback ratio.

 Biggest teaching moment ▶ 6:28 Explaining multi-property hotel economics

RJ educates Nathan on why dividing revenue simply across 45k properties is invalid due to massive brand-level contracts like Radisson alongside volume data accounts.

 Nathan holds their own ▶ 21:05 Lecturing on finite TAM acquisition strategy

Nathan counters RJ's TAM rationale by demonstrating that in a finite market, the company with deep CAC and LTV discipline can afford to outspend rivals and win critical market share.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Client Portfolio and Revenue Model Breakdown 5323 Nathan probes ReviewPro's revenue model, asking whether data feeds operate as one-off services. RJ clarifies that data delivery is an ongoing recurring API feed accounting for over 90% of revenue.
Product Suite, Market Reach, and Shiji Acquisition 6535 Nathan attempts to calculate monthly ARPU by dividing $1.2M run rate across 45k units, but RJ corrects the premise, explaining that enterprise brands like Radisson license thousands of properties at distinct rates alongside low-cost data units.
Founder Retention and Acquisition Deal Mechanics 6424 Nathan draws on private equity experience to ask why RJ stayed after a major exit and presses whether the $28M was balance sheet cash or secondary. RJ clearly details the angel investor liquidity and ongoing put option structure.
Promo Break: SaaStock Australasia Announcement 3212 Following Nathan's promotional announcement for SaaStock Australasia, the interview covers growth rates and churn benchmarks in a relaxed, friendly exchange.
Brand Retention Metrics and Sales Organization KPIs 6635 Nathan asks for Net Revenue Retention percentages, but RJ openly admits they do not track monthly cohort retention because enterprise hotel chains have constant property additions and subtractions.
Customer Acquisition Economics and Payback Debate 8368 Nathan vigorously presses RJ on CAC payback periods and sales efficiency. When RJ demurs and points to content marketing and a finite TAM, Nathan breaks down fully weighted CAC mechanics and insists on the math.
The Famous Five Rapid-Fire Questions 3212 Nathan conducts the Famous Five lightning round, quickly resolving a mix-up regarding Booking.com's CEO before concluding with a recap of ReviewPro's metrics.

Statements from this episode (12)

Assertion Not checkable as stated
ReviewPro has 35,000 SaaS hotel clients and 10,000 data clients
“It'd be about 35,000 hotels that pay us a monthly SAS fee for one or all of our, and then we have the balance of 10,000 pay us for our data.”
RJ Friedlander Nov 21, 2019 ▶ 2:03
Assertion Not checkable as stated
Over 90% of ReviewPro revenue comes from dashboard SaaS tools
“So they're using our data through our dashboard and they have access to our analytics and our reports. That would be in terms of revenue would be like 95% or over 90.”
RJ Friedlander Nov 21, 2019 ▶ 2:58
Assertion Supported
ReviewPro reached 45,000 hotel clients globally on just €5M in equity
“We raised a total of five million euros in equity, which to build a global SAS business model where we work with, as we said 45,000 hotels, 150 countries. We support the product and account management in seven languages to have built all that on only five mill…”
RJ Friedlander Nov 21, 2019 ▶ 4:31
Assertion Not checkable as stated
ReviewPro had 62 full-time employees when acquired by Shiji
“When we sold the company, we had 62 full-time employees, right?”
RJ Friedlander Nov 21, 2019 ▶ 8:10
Disclosure
Shiji acquired 80% of ReviewPro at a valuation above $35M
“Well, they acquired 80% initially and the price was higher than that.”
RJ Friedlander Nov 21, 2019 ▶ 8:34
Disclosure
Friedlander retains equity and put options for ReviewPro's remaining 20%
“Thirdly, that 20% I have the, you know, the significant part of that 20% And an agreement to stay with them and puts to, for them to acquire the rest of the shares over three years.”
RJ Friedlander Nov 21, 2019 ▶ 9:53
Assertion Not checkable as stated
ReviewPro's early investors saw returns between 2.5x and 28x at exit
“Our original investors, which were individual investors and some well-known, some well-known entrepreneurs, and then also a small venture capital fund, they ended Earlier on, they all exited with between a two and a half and a 28 time return.”
RJ Friedlander Nov 21, 2019 ▶ 10:35
Assertion Supported
Shiji's $28M deal included secondary share purchases and primary growth capital
“The twenty eight million was not all into the balance sheet. There was secondary plus investment for growth.”
RJ Friedlander Nov 21, 2019 ▶ 11:09
Assertion Not checkable as stated
ReviewPro grew revenue nearly 37% in 2017 and over 30% in 2018
“And in 2017, we grew 36, almost 37%. This year we're over 30% growth and we're expecting strong growth next year as well.”
RJ Friedlander Nov 21, 2019 ▶ 13:01
Assertion Not checkable as stated
ReviewPro maintains an annual revenue churn rate under 10%
“We, our churn rate is less than 10%.”
RJ Friedlander Nov 21, 2019 ▶ 14:14
Disclosure
ReviewPro evaluates customer retention at the brand level, bypassing monthly cohorts
“And we don't really work on a cohort analyzing monthly cohorts. What we do is we look at brands.”
RJ Friedlander Nov 21, 2019 ▶ 15:30
Assertion Not checkable as stated
ReviewPro's average customer contract duration spans 26 to 27 months
“The shortest contract period is 12 months. Our average contract period is about 26, 27 months, right?”
RJ Friedlander Nov 21, 2019 ▶ 19:43
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