Assertion Not checkable as stated
JazzHR Customers Stay for Roughly 10 Years on Average
“To bring in a customer who's going to stay with us for 10 years-ish on average, it's more, with that, through that lens, it's more than worth the investment.”
Assertion Not checkable as stated
Pete Lamson: JazzHR saw record customer job postings in July 2020
“In fact, we have had the most jobs posted, most new jobs posted with by Jazz HR's customers in the history of our company with just the past month in July.”
Insight
Buying Out Channel Rev Shares Caps Sales and Loses Partners
“Yes, mathematically that will work, and it'll look good in a spreadsheet, and yes, you will improve your gross margin short term. It's also a great way to limit sales. I mean, you know, because after a period of time, that partner can just switch to a competit…”
Insight
Pete Lamson: Buying out partner revenue shares limits long-term sales growth
“Yes, mathematically, that will work, and it'll look good in a spreadsheet, and yes, you will improve your gross margin short term. It's also a great way to limit sales. I mean, you know, because after a period of time, that partner can just switch to a competi…”
Prediction Didn’t hold up
Lamson predicts JazzHR will hit 25,000 paid customers by 2020
“We have a lofty goal of getting to 25,000 paid customers by the end of twenty-twenty. We're at 3000 now.”
Assertion Not checkable as stated
JazzHR Set an All-Time Record for Job Postings in July 2020
“In fact, we have had the most jobs posted, most new jobs posted with by Jazz HR's customers in the history of our company with just the past month in July.”
Insight
Indirect Channel Distribution Trades Gross Margins for Lower Upfront CAC
“For indirect, what typically happens if you do it well is your CAC will go down, but you're shifting that CAC to success driven revenue share. So it's a more efficient use of a cost of capital. So your CAC goes down, your gross margins go down too, because you…”
Disclosure
JazzHR Pays Referral Partner Revenue Shares in Perpetuity Without Caps
“As long as that, as long as their customers are paying us, we are paying them. We don't limit it after a 12 month period.”
Insight
Pete Lamson: Indirect sales lower CAC but compress gross margins and ARPU
“For indirect, what typically happens if you do it well is your cap will go down, but you're shifting that cap to success driven revenue shares. So it's a more efficient use of use of a cost of capital. So your CAC goes down, your gross margins go down, too, be…”
Disclosure
Pete Lamson: JazzHR pays its referral partners a perpetual revenue share
“If their customer chooses to purchase, then pay them a revenue share in perpetuity for the business. As long as that, as long as their customers are paying us, we are paying them. We don't limit it after a 12 month period.”
Disclosure
Pete Lamson: JazzHR operates at cash flow breakeven to reinvest in growth
“Now we run the business at cashflow breakeven. We could be cashflow positive if we chose to, but we plow everything we can back into the business to drive additional growth.”
Assertion Not checkable as stated
Pete Lamson: JazzHR customers stay for roughly ten years on average
“Of a quota-carrying sales team to bring in a customer who's going to stay with us for 10 years-ish on average, it's more, with that, through that lens, it's more than worth the investment.”
Insight
Lamson: SaaS companies do not have a real business until customers renew
“You don't make money by selling somebody for one year, you can sell anybody, anything once, but you don't have a business until they renew. And so deriving that lifetime value is critical for SAS businesses.”
Insight
Lamson: Pushing unwanted features fails; accepting downgrades retains customers long-term
“We have to start with what's best for our customers and to jam them into things that they don't need. That is a losing strategy. And so number one is we want our customers to be on the right solution for their business. So what of our products do they need to …”
Insight
Lamson: Capturing existing demand outperforms creating demand in SMB marketing
“Any time, especially with a small business, you are tapping into existing demand versus creating demand. It's going to be more effective because it's, you're tapping into that mid funnel versus top of funnel.”
Assertion Not checkable as stated
Lamson says the average JazzHR customer stays for nine years
“So our, the average customer stays with us for about nine years right now.”
Assertion Not checkable as stated
$25 and $50 demo incentive gift cards yield identical results
“We have tested both 25 and 50 dollars. They both work the same.”
Assertion Not checkable as stated
90% of US mid-market companies lack dedicated recruiting software
“90% of that market has no recruiting solution in place other than word docs and spreadsheets and email inbox management.”
Disclosure
Lamson says JazzHR would reject a $24M acquisition offer
“No.”
Assertion Not checkable as stated
JazzHR Pricing Starts at $39 With an Average Under $200 Monthly
“Our pricing starts as little as just 39 dollars a month, so you can get the ball rolling in an even more affordable way, but average is, like I said, a little under 200 per month.”
Disclosure
No Single Industry Vertical Exceeds 5% of JazzHR's Total Business
“But no one vertical within our business is more than five percent of our business.”
Disclosure
Indirect Channel Sales Generate Almost 50% of JazzHR's New Business
“We launched indirect sales or channel sales not long thereafter, and that today is almost 50% of our new business and growing.”
Assertion Not checkable as stated
JazzHR Maintains a Sub-12-Month CAC Payback of Roughly $2,000
“So we are right now just under a 12 month kind of payback. So we're a little, just about 2000 dollars.”
Assertion Not checkable as stated
JazzHR Reached Nearly 7,000 Customers and $1.4M MRR in 2020
“Yeah, I mean, we're just under 7000, but that's, your numbers are correct.”
