Dave Lee, co-founder and CEO of marketing automation tool Plus This, discusses why the company has avoided taking outside venture capital.
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“We've been profitable since day one.”
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More from Dave Lee
Insight
Dave Lee says SMB buyers anchor add-on prices to base software costs
“They look at, hey, I'm paying 70 bucks for this platform. I should only have to pay 19 or 29 for a series of add-ons, regardless of how valuable they might be.”
Dave LeeMay 5, 2020▶ 13:181746 Infusionsoft Employee #8 Launches New Venture, Passes $175k in MRR, 2500 SMB Customers
Disclosure
Dave Lee Uses PlusThis Profits for Personal Investments and Software Incubation
“Yeah, I look at it as an asset that needs to be diversified, and it goes across a number of different things. Personal investments, real estate the market, EFTs I do a lot of charity stuff, so I give away a significant chunk of it. We do fund things for the em…”
Dave LeeSep 30, 2020▶ 13:45PlusThis Does $85k in Profit Every Month Selling Marketing Tools to 3,000 SMB's
Insight
Dave Lee says SaaS add-on tools inherit their host platform churn rates
“When it comes down to it, although we have a lot of tools that could be full standalone tools we are really reliant on the platforms. So if Entreport, for example, has a huge turnover and those customers are using plus this as well. That is built in turnover f…”
Dave LeeMay 5, 2020▶ 6:311746 Infusionsoft Employee #8 Launches New Venture, Passes $175k in MRR, 2500 SMB Customers
AssertionNot checkable as stated
Dave Lee says platform customers using add-ons are three times more valuable
“They learn quickly that customers, their customers that have an add-on like ours are three times more valuable as a customer.”
Dave LeeMay 5, 2020▶ 8:181746 Infusionsoft Employee #8 Launches New Venture, Passes $175k in MRR, 2500 SMB Customers
AssertionNot checkable as stated
Dave Lee says VCs ignore 40% profit margins to focus on growth
“I do stay in touch with PE firms and VCs and investment bankers And they, you know, they could care less if we're 40% profitable. They really only care about the growth rate right now.”
Dave LeeMay 5, 2020▶ 11:361746 Infusionsoft Employee #8 Launches New Venture, Passes $175k in MRR, 2500 SMB Customers
AssertionNot checkable as stated
Dave Lee notes downward pricing pressure among marketing automation platforms
“At the same time, there's been a downward pressure on, on pricing. These marketing automation platforms are going after a smaller and smaller customer”
Dave LeeMay 5, 2020▶ 12:311746 Infusionsoft Employee #8 Launches New Venture, Passes $175k in MRR, 2500 SMB Customers
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