CHURN FM E291 | From Champagne Problems to Category Creation: The Rise of Paddle’s Merchant of Record Play with Andrew Davies
May 28, 2025
Andrew Davies, CMO of Paddle, shares insights on tackling the unique challenges SaaS companies face as they scale globally. He delves into the innovative merchant of record model, highlighting its resurgence and its significance in managing global payments efficiently. Davies discusses Paddle's strategic growth phases, including the successful ProfitWell acquisition, and the balance between refining the ideal customer profile and maintaining growth momentum. He emphasizes the importance of adaptability in leadership during different business growth phases.
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Champagne Problems of Scale
- Andrew Davies calls scaling SaaS "champagne problems" that come with success but are tough to solve.
- Paddle eases complex global payment issues like tax, currencies, fraud, helping companies scale smoothly.
Choose Payment Stack Wisely
- Avoid building your own payment stack piecemeal as it creates future headaches.
- Make a conscious decision early to use integrated solutions rather than solving incremental problems badly.
Joining Paddle's Growth Journey
- Andrew Davies joined Paddle in 2021 to audit marketing and found a company growing fast but with no structured marketing.
- Founders were building leadership and platform; the company aimed to target upmarket but refocused on core SMB market later.