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Jul 3, 2019 · 21m · top-founders

1439 Does sending physical gifts increase LTV of customers?

Indrek Põldvee · 10m spoken Nathan Latka · 7m 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 The Top Entrepreneurs Podcast, host Nathan Latka interviews Indrek Põldvee, co-founder of Sorry as a Service, exploring how the company combines CRM software integration with physical artisan gifts to improve enterprise customer retention and generate predictable recurring revenue.

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 41.2% of the talking time here. How this is scored →

Nathan as informed peer 4.8 Guest teaching 1.6 Guest disagreement 1.1 Nathan pushing back 2.9
05100:0010:0020:000:00–2:10 · Nathan as informed peer 0/10 Book Promotion: How to Be a Capitalist Without Any Capital Introductory monologue and promotional book pitch by the host without direct guest interaction.2:10–5:39 · Nathan as informed peer 5/10 Guest Introduction and Indrek Põldvee's Professional Background Latka explores the dual business model of software subscriptions versus physical item margins, converting pricing tiers into US dollar metrics.5:41–8:21 · Nathan as informed peer 4/10 Hackathon Prototype and Converting Job Interviews into Sales Indrek recounts turning job interviews into customer sales, which Latka enthusiastically packages as an actionable growth hack.8:21–10:35 · Nathan as informed peer 6/10 Accelerator Funding, Lean Burn Rates, and Unit Economics Latka drills into capital efficiency, distinguishing gross from net burn rate and clarifying the operational unit economics of the team.10:35–13:00 · Nathan as informed peer 6/10 Customer Retention Use Cases, Loyalty, and Measurable ROI Latka challenges the product as a dispensable nice-to-have, prompting Indrek to push back with specific ROI metrics from British Telecom.13:01–15:24 · Nathan as informed peer 6/10 Enterprise Sales Cycles and Channel Partner Commission Model Latka probes channel commission structures, calculating the exact annual payout based on partner revenue sharing rules.15:25–18:56 · Nathan as informed peer 7/10 Managing Seasonal Churn and Supplier Volume Predictability Latka confronts the guest over turning down seasonal clients using an Amazon Prime analogy, and presses on blended gross margins for physical fulfillment.18:56–20:17 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions A friendly and cooperative concluding Famous Five rapid-fire segment without friction.0:00–2:10 · Guest teaching 0/10 Book Promotion: How to Be a Capitalist Without Any Capital Introductory monologue and promotional book pitch by the host without direct guest interaction.2:10–5:39 · Guest teaching 2/10 Guest Introduction and Indrek Põldvee's Professional Background Latka explores the dual business model of software subscriptions versus physical item margins, converting pricing tiers into US dollar metrics.5:41–8:21 · Guest teaching 1/10 Hackathon Prototype and Converting Job Interviews into Sales Indrek recounts turning job interviews into customer sales, which Latka enthusiastically packages as an actionable growth hack.8:21–10:35 · Guest teaching 2/10 Accelerator Funding, Lean Burn Rates, and Unit Economics Latka drills into capital efficiency, distinguishing gross from net burn rate and clarifying the operational unit economics of the team.10:35–13:00 · Guest teaching 4/10 Customer Retention Use Cases, Loyalty, and Measurable ROI Latka challenges the product as a dispensable nice-to-have, prompting Indrek to push back with specific ROI metrics from British Telecom.13:01–15:24 · Guest teaching 1/10 Enterprise Sales Cycles and Channel Partner Commission Model Latka probes channel commission structures, calculating the exact annual payout based on partner revenue sharing rules.15:25–18:56 · Guest teaching 3/10 Managing Seasonal Churn and Supplier Volume Predictability Latka confronts the guest over turning down seasonal clients using an Amazon Prime analogy, and presses on blended gross margins for physical fulfillment.18:56–20:17 · Guest teaching 0/10 The Famous Five Rapid-Fire Questions A friendly and cooperative concluding Famous Five rapid-fire segment without friction.0:00–2:10 · Guest disagreement 0/10 Book Promotion: How to Be a Capitalist Without Any Capital Introductory monologue and promotional book pitch by the host without direct guest interaction.2:10–5:39 · Guest disagreement 1/10 Guest Introduction and Indrek Põldvee's Professional Background Latka explores the dual business model of software subscriptions versus physical item margins, converting pricing tiers into US dollar metrics.5:41–8:21 · Guest disagreement 0/10 Hackathon Prototype and Converting Job Interviews into Sales Indrek recounts turning job interviews into customer sales, which Latka enthusiastically packages as an actionable growth hack.8:21–10:35 · Guest disagreement 1/10 Accelerator Funding, Lean Burn Rates, and Unit Economics Latka drills into capital efficiency, distinguishing gross from net burn rate and clarifying the operational unit economics of the team.10:35–13:00 · Guest disagreement 3/10 Customer Retention Use Cases, Loyalty, and Measurable ROI Latka challenges the product as a dispensable nice-to-have, prompting Indrek to push back with specific ROI metrics from British Telecom.13:01–15:24 · Guest disagreement 1/10 Enterprise Sales Cycles and Channel Partner Commission Model Latka probes channel commission structures, calculating the exact annual payout based on partner revenue sharing rules.15:25–18:56 · Guest disagreement 3/10 Managing Seasonal Churn and Supplier Volume Predictability Latka confronts the guest over turning down seasonal clients using an Amazon Prime analogy, and presses on blended gross margins for physical fulfillment.18:56–20:17 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions A friendly and cooperative concluding Famous Five rapid-fire segment without friction.0:00–2:10 · Nathan pushing back 0/10 Book Promotion: How to Be a Capitalist Without Any Capital Introductory monologue and promotional book pitch by the host without direct guest interaction.2:10–5:39 · Nathan pushing back 2/10 Guest Introduction and Indrek Põldvee's Professional Background Latka explores the dual business model of software subscriptions versus physical item margins, converting pricing tiers into US dollar metrics.5:41–8:21 · Nathan pushing back 1/10 Hackathon Prototype and Converting Job Interviews into Sales Indrek recounts turning job interviews into customer sales, which Latka enthusiastically packages as an actionable growth hack.8:21–10:35 · Nathan pushing back 3/10 Accelerator Funding, Lean Burn Rates, and Unit Economics Latka drills into capital efficiency, distinguishing gross from net burn rate and clarifying the operational unit economics of the team.10:35–13:00 · Nathan pushing back 6/10 Customer Retention Use Cases, Loyalty, and Measurable ROI Latka challenges the product as a dispensable nice-to-have, prompting Indrek to push back with specific ROI metrics from British Telecom.13:01–15:24 · Nathan pushing back 3/10 Enterprise Sales Cycles and Channel Partner Commission Model Latka probes channel commission structures, calculating the exact annual payout based on partner revenue sharing rules.15:25–18:56 · Nathan pushing back 7/10 Managing Seasonal Churn and Supplier Volume Predictability Latka confronts the guest over turning down seasonal clients using an Amazon Prime analogy, and presses on blended gross margins for physical fulfillment.18:56–20:17 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions A friendly and cooperative concluding Famous Five rapid-fire segment without friction.

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

0:00 · Nathan 95.5% · guest 4.5%0:00 · Nathan 95.5% · guest 4.5%3:00 · Nathan 21.1% · guest 78.9%3:00 · Nathan 21.1% · guest 78.9%6:00 · Nathan 17.5% · guest 82.5%6:00 · Nathan 17.5% · guest 82.5%9:00 · Nathan 26.8% · guest 73.2%9:00 · Nathan 26.8% · guest 73.2%12:00 · Nathan 39.2% · guest 60.8%12:00 · Nathan 39.2% · guest 60.8%15:00 · Nathan 33% · guest 67%15:00 · Nathan 33% · guest 67%18:00 · Nathan 51.4% · guest 48.6%18:00 · Nathan 51.4% · guest 48.6%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 12:44 Defending product ROI against nice-to-have critique

Indrek directly rebuts Latka's assertion that the service lacks tangible ROI data by citing 2.6x ROI metrics with British Telecom.

 Hardest push from Nathan ▶ 16:16 Pushback on rejecting seasonal customers

Latka refuses the guest's logic for turning away holiday customers, arguing that predictable annual usage should be embraced rather than treated as churn.

 Biggest teaching moment ▶ 12:44 Citing proven enterprise ROI numbers

When Latka assumes the company cannot prove revenue expansion over un-gifted cohorts, Indrek educates him on their quantified 2.6x ROI track record.

 Nathan holds their own ▶ 17:25 Deconstructing pure SaaS versus blended fulfillment margins

Latka demonstrates sharp domain expertise by dismantling the pure software margin claim, pointing out that physical goods and fulfillment necessarily dilute blended gross margin.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Book Promotion: How to Be a Capitalist Without Any Capital 0000 Introductory monologue and promotional book pitch by the host without direct guest interaction.
Guest Introduction and Indrek Põldvee's Professional Background 5212 Latka explores the dual business model of software subscriptions versus physical item margins, converting pricing tiers into US dollar metrics.
Hackathon Prototype and Converting Job Interviews into Sales 4101 Indrek recounts turning job interviews into customer sales, which Latka enthusiastically packages as an actionable growth hack.
Accelerator Funding, Lean Burn Rates, and Unit Economics 6213 Latka drills into capital efficiency, distinguishing gross from net burn rate and clarifying the operational unit economics of the team.
Customer Retention Use Cases, Loyalty, and Measurable ROI 6436 Latka challenges the product as a dispensable nice-to-have, prompting Indrek to push back with specific ROI metrics from British Telecom.
Enterprise Sales Cycles and Channel Partner Commission Model 6113 Latka probes channel commission structures, calculating the exact annual payout based on partner revenue sharing rules.
Managing Seasonal Churn and Supplier Volume Predictability 7337 Latka confronts the guest over turning down seasonal clients using an Amazon Prime analogy, and presses on blended gross margins for physical fulfillment.
The Famous Five Rapid-Fire Questions 4001 A friendly and cooperative concluding Famous Five rapid-fire segment without friction.

Statements from this episode (13)

Assertion Not checkable as stated
Sorry as a Service ships 400 to 500 items daily
“We are sending like a four or 500 items per day.”
Indrek Põldvee Jul 3, 2019 ▶ 4:33
Assertion Not checkable as stated
Sorry as a Service pricing starts at £1,000 per month
“It's starting from thousand pounds a month, so to say.”
Indrek Põldvee Jul 3, 2019 ▶ 4:59
Disclosure
Founder pitched during job interviews to land his first startup customers
“I had two job interviews, which I turned into customers. Because in the end of the job, job interview, I realized like, ah, damn, this is not very passionate. And I told them, Hey, okay, I this job is interesting, but I was in a hackathon and let me know what …”
Indrek Põldvee Jul 3, 2019 ▶ 7:42
Assertion Not checkable as stated
Sorry as a Service generated $150K to $200K in 2016 revenue
“And then I think our total revenue in 2016 was a 150 to 200 K.”
Indrek Põldvee Jul 3, 2019 ▶ 8:39
Assertion Not checkable as stated
Sorry as a Service had the lowest burn rate in Techstars London
“And it was funny because we were in textiles, London. We had the biggest team, but the lowest burn rate.”
Indrek Põldvee Jul 3, 2019 ▶ 8:59
Disclosure
Sorry as a Service currently serves 11 enterprise customers
“Today we have 11 customers.”
Indrek Põldvee Jul 3, 2019 ▶ 10:31
Disclosure
Despite the name, most Sorry as a Service gifts are thank-yous
“Most half of the gifts that we are sending is a loyalty. Thank you.”
Indrek Põldvee Jul 3, 2019 ▶ 11:01
Assertion Not checkable as stated
Physical gifting yields 2.6x higher ROI than vouchers for British Telecom
“We have some results with British Telecom where we have, and some other customers where we have actually shown that our ROI is two point six times higher than normally you give vouchers and other things. So it makes more money.”
Indrek Põldvee Jul 3, 2019 ▶ 12:44
Assertion Not checkable as stated
Sorry as a Service enterprise sales cycles take 8 to 12 months
“Because again, I told you the sales cycles are eight to 12 months, and not putting our own working hours, because in a startup, you don't count your own hours, because you're working for passion, and it's really, really hard.”
Indrek Põldvee Jul 3, 2019 ▶ 13:08
Disclosure
Sorry as a Service pays channel partners 20% to 25% commission
“Ah, it's a 20, 25. 25.”
Indrek Põldvee Jul 3, 2019 ▶ 13:51
Disclosure
Sorry as a Service rejects seasonal enterprise clients to protect artisan suppliers
“And we actually don't like to work with these companies because they don't give us steady, steady volumes. And because all the items we are shipping, it's handmade. Our bakers also need some kind of minimum volume.”
Indrek Põldvee Jul 3, 2019 ▶ 15:47
Assertion Not checkable as stated
Sorry as a Service owns no warehouses and drop-ships all gifts
“We don't ship anything ourselves. Everything is shipped by suppliers. So we don't have a warehouse. We don't have anything. We are just the connector”
Indrek Põldvee Jul 3, 2019 ▶ 18:05
Assertion Not checkable as stated
Sorry as a Service makes 5% to 15% margins on physical items
“Yeah, yeah, five, 10, 15, depends how much we get.”
Indrek Põldvee Jul 3, 2019 ▶ 18:39
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