Assertion certainty 4/5 debate potential 3/5

Perry: Design Pickle pays offshore talent double the local average wage

Russ Perry · DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done · Jun 1, 2020 · at 6:42

Design Pickle founder Russ Perry outlines his company's global labor arbitrage strategy and compensation structure across emerging markets.

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“Our teams are in markets. I call them emerging markets where they are, you know, on average making three to four dollars an hour if they want to get a job where we'll start at six to seven dollars an hour. So we're three X-ing their take home, still fractional what you could hire here.”

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More from Russ Perry

Opinion
Perry: Creatives cannot make a viable living on Fiverr or 99designs
“You can't make a living working on a marketplace. Like, you can't make a living cobbling together jobs off Fiverr or 99 designs, and that's where a lot of those companies get their teams from, their labor.”
Russ Perry Jun 1, 2020 ▶ 7:30 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
Disclosure
Perry: Fiverr casually explored acquiring Design Pickle for $20M in 2019
“The first round was two or three million. The second round was twenty million. And then I said no to both... There weren't any term sheets. These were casual conversations.”
Russ Perry Jun 1, 2020 ▶ 22:05 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
Assertion Not checkable as stated
Perry: 100% of Design Pickle's 470 employees are outside the US
“470.”
Russ Perry Jun 1, 2020 ▶ 7:11 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
Insight
Perry: Moat comes from managing complex workflows at scale, not labor arbitrage
“That's the boat. It's managing that, not just finding some cheaper designers compared to US and reselling their time.”
Russ Perry Jun 1, 2020 ▶ 10:29 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
Assertion Not checkable as stated
Perry: Design Pickle maintains roughly 50% retention in first year
“So of the first year year zero through, or month zero through 12, it's gonna be Around 50%.”
Russ Perry Jun 1, 2020 ▶ 14:26 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
Assertion Not checkable as stated
Perry: Design Pickle gross margins range from low 60s to 68%
“Our gross margin is on a good month you know, 68% on a, when we start to grow and we're adding middle management, it gets down to low sixties.”
Russ Perry Jun 1, 2020 ▶ 6:28 DesignPickle: Bootstrapped, $10m Revenue, Helping 3,000 Brands Get Design Work Done
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