King: SMB software adoption is driven by trusted resellers, not product superiority
Brendan King · 1220 How He Shields Himself from SMB Churn with 1200 Resellers, $2.3m/mo in Revenue · Nov 26, 2018 · at 8:07
Vendasta CEO Brendan King explains to Nathan Latka why channel distribution is more defensible than point software products in the SMB market.
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“One thing we've come to know is that all products, you know, that are pretty good is the small business is going to rely on the expertise of someone they trust and they're going to, you know, and in any given case, you could argue one product's better than another. It doesn't really matter. It's going to be what that guy says it is. What that reseller tells a small business it is.”
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More from Brendan King
Vendasta operates at a remarkable 18-to-1 LTV to CAC ratio
“So overall, our LTV to CAC is, is really, really good. Like we're running, you know 18 to one right now.”
King: Vendasta achieves 117 percent net revenue retention
“So we're you know, right now about 17% net negative or said differently.”
King: Vendasta generated over $2.3 million in revenue last month
“No, I think we, I told you before. So this year we're just, we're about, we just did 2.3 and change last month.”
King: Vendasta adopted value-based pricing to reduce low-end customer churn
“So what we've actually done in the last six to seven months to mitigate that is we is we started to do what we call value-based pricing. We're at the low end. We actually don't charge as much But there's not that expectation. So they work up into our product, …”