$50K Monthly Revenue, Finally Designers Can Quickly Give File to Developers with Anh Vu of Avocode

Vu Hoang Anh

In Episode #351, Nathan interviews Anh Vu, the founder and CEO of Avocode – a tool to connect front-end designers and back-end developers and make fantastic collaboration simple. Anh’s background is in design, but he’s building a SaaS business with negative churn and great profits by being totally on top of his numbers.

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Famous 5:

  • Favorite Business Book? – The Startup Playbook
  • What CEO do you follow? — Hiten Shah
  • Favorite online tool? — Chart Mogul
  • Do you get 8 hours of sleep?— No
  • If you could let your 20 year old self know one thing, what would it be? —Measure everything, be really data driven, and focus on retention

Time Stamped Show Notes:

  • 01:13 – Nathan’s introduction
  • 01:50 – Avocode makes it easy for front-end designers to share information with back-end developers
  • 02:50 – The designer uploads the design into Avocode, where all the team can access it, leave notes, and make revisions. Then the developer can access all the design assets through Avocode
  • 03:25 – As of May 2016, $50k MRR
  • 03:57 – Launched in February 2015
  • 03:54 – $250k annual revenue in 2015
  • 04:20 – Currently working with the 500 Startups accelerator
  • 04:53 – 2800 customers on one of two plans
  • 06:00 – Average revenue per customer is $27
  • 06:40 – Some users were on boarded in a pre-order process and pay less than average
  • 07:17 – User churn is 7% monthly
  • 07:28 – Net revenue churn is -1%
  • 07:50 – Some users stay and purchase more and more seats – so revenue churn is negative
  • 08:40 – Upselling more seats to your current customer base is a KEY SaaS strategy
  • 09:23 – There are 14 people in An’s team, based in the Czech Republic
  • 09:43 – Monthly expenses are $35k
  • 10:10 – They’re profitable
  • 11:20 – Currently spending nothing on customer acquisition
  • 12:01 – The average business-plan customer stays for 18 months
  • 13:12 – Most of the customer base is startups and enterprise businesses
  • 14:00 – Growing at 15% month over month
  • 14:18 – Planning to start their first capital raise in August 2016
  • 15:20 – Discussing partnerships with companies like Adobe and Sketch
  • 16:07 – Follow Anh on Twitter
  • 18:45 – The Famous Five

3 Key Points:

  1. Upsell your current customer base
  2. Plan partnerships and exit strategies – early
  3. Measure everything

Resources Mentioned:

  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Leadpages  – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.