JazzHR on Scaling to $6m ARR With $25 Giftcards For Demo Calls

pit_ftr_PeteLamson_0217

Pete is CEO of JazzHR and is a results-oriented executive with a 25-year history of a strategic, metrics-driven approach to accelerated revenue Focus on the global small business market. Deep experience in B2B high-velocity customer acquisition.

As CEO of JazzHR, responsible for Jazz’s strategic direction, performance, and day-to-day business operations.

Business Model

The company is a software as a service (SaaS) who sell direct and through partners like Namely and PrismHR. As of September 2017, they have 3,000 customers and are doing $600k in MRR.

How much do companies pay you?

Companies pay between $200-400 and will stay with us for over 9 years based on historical data. We focus on the 50-500 employee team size kind of customer. Other people are much better at enterprise and super SMB.

This means they’ll pay JazzHR a total of around $19,000.

How do you get new customers?

Direct and indirect channels. We spend about 1/3 of LTC on CAC, or about $3000-5000 to acquire a new customer who pays $19k over their life. We have less than 1% gross monthly logo churn.

We use $25 gift cards to get “good fit leads” on a product demo. About 6 months post demo the close rates went through the roof. This strategy is working well.

Will you pass $750k MRR by Dec 31 2017?

Yes. We’re growing over 300% quarter over quarter and hope to hit 20,000 paying customers by 2020.

If Linkedin offered you $24m to sell the company, would you sell?

“No”

Famous Five:

Business Book: The Founders Mentality

CEO you follow: Andy Grove

Favorite online tool: Owler

How much sleep? 7

Pete is married with 3 kids, is 54 and wishes his 20-year-old self-knew that he should take more chances and that he was better than he thought he was (confidence important!).