EP 623: rfactr Raises $9m, $900k MRR Helping 220 Customers With Social Selling With CEO Richard Brasser

In Episode #623, Nathan interviews Richard Brasser. He's the foremost expert in helping companies increase the effectiveness and influence of their Salesforce's strategic use of social communication. He does this through his company, rFactr. Richard pursues his focus in enabling salespeople to leverage social communication and build more meaningful relationship.

Famous Five:

• Favorite Book? – Crossing the Chasm
• What CEO do you follow? – Tony Robbins
• Favorite online tool? — Outlook
• Do you get 8 hours of sleep?— Very rarely
• If you could let your 20-year old self, know one thing, what would it be? – Richard wished he knew the concept of compounding interest and the concept of deferred asset allocation

Time Stamped Show Notes:

• 01:34 – Nathan introduces Richard to the show
• 02:15 – Companies need to engage their buyers in a more meaningful way
• 02:32 – rFactr is focused on enhancing sales people's ability to connect with people
• 02:51 – rFactr's platform is called a social port
• • 03:15 – rFactr has a per month/per user model
• 03:26 – rFactr is not a marketplace
• 03:33 – rFactr is directly plugged into companies' CRMs
• 03:55 – Average customer pay per month
• • 04:15 – rFactr has channel activations
• 04:40 – rFactr's starting price is $5K a month
• 04:49 – rFactr was launched in 2009
• 04:57 – rFactr was bootstrapped for the first 8 years
• 05:04 – rFactr had a seed round and will probably have a series A
• 05:17 – rFactr has raised a total of $9M
• 05:32 – Richard played golf on tour for 7 years
• • 05:45 – Richard made a good amount from playing golf
• 06:01 – Richard was already 7 years in business when he needed someone for the operations and finance side of the company
• 06:08 – Richard's partner was just exiting his software company when he joined rFactr
• 06:25 – Nathan tells Richard about Episode 615 where he had Shin as a guest whose company makes carbon fiber golf shafts
• • 06:47 – Richard hasn't seen Shin's product
• 07:05 – The seed round is an equity round
• • 07:17 – The last round was in 2010
• 07:40 – The company has been around for 16 years, but the main product was developed 9 years ago
• 07:51 – Richard's company started as a strategy and consulting firm
• 08:33 – Richard shares how the first company was valuated
• 09:31 – Team size is 18
• 09:39 – rFactr has 220 paying customers
• 09:44 – Average MRR
• 10:29 – Richard shares why they're having the small companies together with the biggest ones
• 11:25 – Gross customer churn
• 11:37 – CAC
• • 12:08 – rFactr has no paid marketing
• 12:23 – Team's location
• 13:45 – The Famous Five

3 Key Points:

• Small companies may not be able to pay as much as the big companies, but the level of help they need is similar.
• Use your money from your exit for your new company.
• Paid marketing isn't always necessary—know your options to better decide if it's right for you.

Resources Mentioned:

• The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Organifi – The juice was Nathan's life saver during his trip in Southeast Asia
• Klipfolio – Track your business performance across all departments for FREE
• Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator – The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible – Nathan uses Audible when he's driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
• Freshbooks – Nathan doesn't waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
• Show Notes provided by Mallard Creatives