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Feb 3, 2019 · 15m · top-founders

1289 Virtual Event Management Business Passes $2m in ARR Selling $30k ACV's

Muhammad Younas · 7m 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 The Top Entrepreneurs Podcast, host Nathan Latka interviews Muhammad Younas, CEO of VFairs, detailing how the virtually incubated SaaS platform scaled past $2 million in ARR through a dual pricing model, lean unit economics, and a distributed global team.

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 45.6% of the talking time here. How this is scored →

Nathan as informed peer 4.4 Guest teaching 1.8 Guest disagreement 1.4 Nathan pushing back 3.8
05100:0010:002:19–5:43 · Nathan as informed peer 5/10 Dual Pricing Structure and Seasonal Revenue Dynamics Nathan challenges the SaaS model validity by pointing out high seasonality and pushes back on pricing math assuming $600/event instead of $6,000. Muhammad corrects Nathan's price confusion and defends the repeat event model.5:46–8:46 · Nathan as informed peer 7/10 Customer Count, MRR Growth, and ARR Milestones Nathan actively calculates run rates and financial metrics, pressing Muhammad to clarify the difference between trailing collections ($1.6M) and annualized current run rate ($2M). Muhammad readily accepts the calculations.8:47–11:50 · Nathan as informed peer 6/10 Acquisition Channels, Sales Team, and Unit Economics Nathan presses Muhammad on customer acquisition cost, rejecting his initial $1k ad-spend-only figure and insisting on including sales salaries to derive a true fully weighted CAC. Muhammad concedes and adjusts the figure to $4k-$5k.11:50–14:17 · Nathan as informed peer 4/10 Retention Rates, Global Team Structure, and Exit Potential Nathan covers retention metrics, geographic distribution, and asks about exit intentions and corporate ownership structure in a standard, friendly cadence.14:17–15:01 · Nathan as informed peer 0/10 Host Recap and Episode Conclusion Host wraps up the episode with a quick monologue summarizing key metrics.2:19–5:43 · Guest teaching 4/10 Dual Pricing Structure and Seasonal Revenue Dynamics Nathan challenges the SaaS model validity by pointing out high seasonality and pushes back on pricing math assuming $600/event instead of $6,000. Muhammad corrects Nathan's price confusion and defends the repeat event model.5:46–8:46 · Guest teaching 2/10 Customer Count, MRR Growth, and ARR Milestones Nathan actively calculates run rates and financial metrics, pressing Muhammad to clarify the difference between trailing collections ($1.6M) and annualized current run rate ($2M). Muhammad readily accepts the calculations.8:47–11:50 · Guest teaching 2/10 Acquisition Channels, Sales Team, and Unit Economics Nathan presses Muhammad on customer acquisition cost, rejecting his initial $1k ad-spend-only figure and insisting on including sales salaries to derive a true fully weighted CAC. Muhammad concedes and adjusts the figure to $4k-$5k.11:50–14:17 · Guest teaching 1/10 Retention Rates, Global Team Structure, and Exit Potential Nathan covers retention metrics, geographic distribution, and asks about exit intentions and corporate ownership structure in a standard, friendly cadence.14:17–15:01 · Guest teaching 0/10 Host Recap and Episode Conclusion Host wraps up the episode with a quick monologue summarizing key metrics.2:19–5:43 · Guest disagreement 3/10 Dual Pricing Structure and Seasonal Revenue Dynamics Nathan challenges the SaaS model validity by pointing out high seasonality and pushes back on pricing math assuming $600/event instead of $6,000. Muhammad corrects Nathan's price confusion and defends the repeat event model.5:46–8:46 · Guest disagreement 1/10 Customer Count, MRR Growth, and ARR Milestones Nathan actively calculates run rates and financial metrics, pressing Muhammad to clarify the difference between trailing collections ($1.6M) and annualized current run rate ($2M). Muhammad readily accepts the calculations.8:47–11:50 · Guest disagreement 2/10 Acquisition Channels, Sales Team, and Unit Economics Nathan presses Muhammad on customer acquisition cost, rejecting his initial $1k ad-spend-only figure and insisting on including sales salaries to derive a true fully weighted CAC. Muhammad concedes and adjusts the figure to $4k-$5k.11:50–14:17 · Guest disagreement 1/10 Retention Rates, Global Team Structure, and Exit Potential Nathan covers retention metrics, geographic distribution, and asks about exit intentions and corporate ownership structure in a standard, friendly cadence.14:17–15:01 · Guest disagreement 0/10 Host Recap and Episode Conclusion Host wraps up the episode with a quick monologue summarizing key metrics.2:19–5:43 · Nathan pushing back 5/10 Dual Pricing Structure and Seasonal Revenue Dynamics Nathan challenges the SaaS model validity by pointing out high seasonality and pushes back on pricing math assuming $600/event instead of $6,000. Muhammad corrects Nathan's price confusion and defends the repeat event model.5:46–8:46 · Nathan pushing back 6/10 Customer Count, MRR Growth, and ARR Milestones Nathan actively calculates run rates and financial metrics, pressing Muhammad to clarify the difference between trailing collections ($1.6M) and annualized current run rate ($2M). Muhammad readily accepts the calculations.8:47–11:50 · Nathan pushing back 6/10 Acquisition Channels, Sales Team, and Unit Economics Nathan presses Muhammad on customer acquisition cost, rejecting his initial $1k ad-spend-only figure and insisting on including sales salaries to derive a true fully weighted CAC. Muhammad concedes and adjusts the figure to $4k-$5k.11:50–14:17 · Nathan pushing back 2/10 Retention Rates, Global Team Structure, and Exit Potential Nathan covers retention metrics, geographic distribution, and asks about exit intentions and corporate ownership structure in a standard, friendly cadence.14:17–15:01 · Nathan pushing back 0/10 Host Recap and Episode Conclusion Host wraps up the episode with a quick monologue summarizing key metrics.

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

0:00 · Nathan 69.3% · guest 30.7%0:00 · Nathan 69.3% · guest 30.7%3:00 · Nathan 35.6% · guest 64.4%3:00 · Nathan 35.6% · guest 64.4%6:00 · Nathan 45.5% · guest 54.5%6:00 · Nathan 45.5% · guest 54.5%9:00 · Nathan 31.4% · guest 68.6%9:00 · Nathan 31.4% · guest 68.6%12:00 · Nathan 45.3% · guest 54.7%12:00 · Nathan 45.3% · guest 54.7%15:00 · Nathan 49% · guest 51%15:00 · Nathan 49% · guest 51%
Sharpest disagreement ▶ 2:40 Guest defends repeat event model against SaaS seasonality skepticism

Muhammad politely refutes Nathan's skepticism regarding seasonal churn by explaining that 60% of their revenue is repeat business.

 Hardest push from Nathan ▶ 10:03 Nathan refuses raw ad-spend CAC figure

Nathan explicitly tells Muhammad he did not answer the question and demands fully weighted CAC including sales personnel salaries.

 Biggest teaching moment ▶ 3:21 Muhammad corrects Nathan's $600 per event math error

Muhammad clarifies that the per-event price is $6,000, dismantling Nathan's calculation that customers need 50 events to justify an annual contract.

 Nathan holds their own ▶ 8:29 Nathan separates cash collections from run rate

Nathan demonstrates financial mastery by correcting Muhammad's ARR interpretation, proving that $165k/month already means exceeding a $2M run rate.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Dual Pricing Structure and Seasonal Revenue Dynamics 5435 Nathan challenges the SaaS model validity by pointing out high seasonality and pushes back on pricing math assuming $600/event instead of $6,000. Muhammad corrects Nathan's price confusion and defends the repeat event model.
Customer Count, MRR Growth, and ARR Milestones 7216 Nathan actively calculates run rates and financial metrics, pressing Muhammad to clarify the difference between trailing collections ($1.6M) and annualized current run rate ($2M). Muhammad readily accepts the calculations.
Acquisition Channels, Sales Team, and Unit Economics 6226 Nathan presses Muhammad on customer acquisition cost, rejecting his initial $1k ad-spend-only figure and insisting on including sales salaries to derive a true fully weighted CAC. Muhammad concedes and adjusts the figure to $4k-$5k.
Retention Rates, Global Team Structure, and Exit Potential 4112 Nathan covers retention metrics, geographic distribution, and asks about exit intentions and corporate ownership structure in a standard, friendly cadence.
Host Recap and Episode Conclusion 0000 Host wraps up the episode with a quick monologue summarizing key metrics.

Statements from this episode (13)

Assertion Not checkable as stated
Younas: vFairs generates nearly 60% of revenue from repeat customers
“So right now, almost 60% of our revenue comes from repeat business, from our repeat customers.”
Muhammad Younas Feb 3, 2019 ▶ 2:54
Assertion Not checkable as stated
Younas: Nestle, T-Mobile, and AT&T purchase annual licenses from vFairs
“Nestle, T-Mobile, AT&T, all of these are our customers. They do annual lessons with us because they keep, they run 10 to 12 events a year.”
Muhammad Younas Feb 3, 2019 ▶ 3:32
Assertion Not checkable as stated
Younas: vFairs' revenue is split evenly between annual and single-event contracts
“So it's close to fifty-fifty, so 50% of that is coming from our annual contracts and remaining 50% as our single event license.”
Muhammad Younas Feb 3, 2019 ▶ 3:59
Disclosure
vFairs is completely internally funded by parent company Bayt
“It's all internally funded by our parent company.”
Muhammad Younas Feb 3, 2019 ▶ 4:48
Assertion Supported
vFairs parent company Bayt is funded by Tiger Global
“So yeah, our parent company is Baith and they are funded by Tiger Global Management.”
Muhammad Younas Feb 3, 2019 ▶ 4:53
Assertion Not checkable as stated
Younas: vFairs serves up to 170 customers with 70 annual contracts
“See, we have over one, 60 to one 70 customers, so close to 60 to 70 of them at least are annual contracts.”
Muhammad Younas Feb 3, 2019 ▶ 5:52
Assertion Not checkable as stated
Younas: VFairs is growing revenue at 100% year-over-year
“So, so as of now, we are doing a hundred percent year on year. So basically whatever our 2016, 17 revenue was increased by a hundred percent. You know, over the past five months, we keep on increasing a hundred percent, you know a year over year you know, righ…”
Muhammad Younas Feb 3, 2019 ▶ 7:50
Assertion Not checkable as stated
Younas: VFairs generates $165,000 to $170,000 per month in revenue
“So as of now, we are close to one 65 to one 70,000 dollars a month as of now.”
Muhammad Younas Feb 3, 2019 ▶ 8:15
Prediction Not checkable as stated
Younas: VFairs will approach a $3M run rate within five months
“I think over the next five months it will close, it will be close to three million dollars.”
Muhammad Younas Feb 3, 2019 ▶ 8:26
Assertion Not checkable as stated
Younas: Inbound accounts for 80% of vFairs' business
“So, so almost 80% of our business is purely incoming, you know? So, so people call us, people reach out to us, people, Come to our website to ask for our services. 20% is outbound where we reach out to other customers.”
Muhammad Younas Feb 3, 2019 ▶ 9:17
Assertion Not checkable as stated
Younas: vFairs' fully weighted CAC is roughly $4,000 to $5,000
“So I think just to give you a rough number, we would say like on average, one customer would cost us at this point, I think, I don't know, close to four to 5000 dollars in terms of fully weighted.”
Muhammad Younas Feb 3, 2019 ▶ 11:36
Assertion Not checkable as stated
Younas: vFairs maintains a 95% renewal rate on annual contracts
“Those who are doing annual essence with us, our renewal rate is close to 95%. So, you know, we hardly lose any customer on the annual essence as of now for the past three years.”
Muhammad Younas Feb 3, 2019 ▶ 12:14
Assertion Not checkable as stated
Younas: vFairs is already a profitable business
“So as of now, we don't need as such you know, I think we have been doing, like we are already a profitable business.”
Muhammad Younas Feb 3, 2019 ▶ 12:40
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