Alexander Volodarsky explains Lemon.io's business model and average take rate on developer placements.
Insight
Volodarsky: Dev Shops Often Pitch Senior Engineers but Assign Junior Staff
“We, it's a little bit harder on the vetting side because you also have to vet before vetting a developer, you have to vet a dev shop because a lot of dev shops are very shady. You know, you need to make sure that there's nothing going on inside the weather tha…”
Assertion Partly supported
Volodarsky: Senior Ukrainian Developers Cost Product Companies $3K to $5K Monthly
“If you're a product company, you have someone, something that that developers want to work on, you would have a high chance of paying less. You would have a high chance of paying, I don't know maybe three to four to 5000 dollars per, per, per month. If you wor…”
Insight
Volodarsky: Sourcing Developer Supply is Harder and Less Scalable Than Acquiring Clients
“Finding supply is very is very underestimated. It's very hard, it's very expensive, and it's not as scalable as, you know, you could, as marketing towards clients.”
Assertion Not checkable as stated
Lemon.io Reached $330K Monthly GMV During Its Peak Month
“In terms of new projects on a short, around 25, but in terms of GMV, it was the best months we did around 330 thousand GMV.”
Assertion Not checkable as stated
Volodarsky: Vetted Developers Leave Lemon.io if Unplaced Within Two Weeks
“Sometimes they spend from 10 to 20 hours of their lives to You know, for us to vet them. If we don't find them work within like first two weeks, they leave and find work elsewhere.”
Disclosure
Lemon.io Accepts Developer Rates Outright and Adds a Commission Markup
“We don't negotiate rates. If the developer comes and says, I want to make, you know, 50 dollars per hour, we'll pay them 50 dollars per hour. We'll just add whatever, you know, is our commission to and we'll offer this to a client.”