How this Sales Training Tool Went from $600k to $1.2M in Revenue in 1 Year

Sam Caucci

In Episode #698, Nathan interviews Sam Caucci. He’s the CEO of Sales Huddle, a training and development team that is using game technology to help organizations better prepare their people for the workforce.

Famous Five:

  • Favorite Book? – Meditations
  • What CEO do you follow? – Jason Lemkin
  • Favorite online tool? — GrowBots
  • How many hours of sleep do you get?— 4
  • If you could let your 20-year old self, know one thing, what would it be? – Sam is a big believer that you have to over-network

Time Stamped Show Notes:

  • 00:52 – Nathan introduces Sam to the show
  • 01:30 – Sales Huddle is a mobile game platform for employee training
  • 01:43 – Sales Huddle has everything a business needs to learn
  • 02:04 – Sales Huddle is a subscription business
  • 02:10 – Pricing is from $5K to $15K
  • 02:13 – There’s a monthly recurring fee based on the number of employees on the platform
  • 02:20 – 2016 revenue closed out at $1.2M
  • 02:29 – MRR is around $800K 82 subscribed clients on the platform
  • 02:58 – Sales Huddle has an initial integration fee for converting a client’s current content into the platform
  • 03:18 – Most companies pay Sales Huddle an upfront payment
  • 03:36 – Sales Huddle tries to get companies to pay upfront first
  • 04:03 – Sales Huddle has 100% retention
  • 04:37 – Sam credits their 0 churn on the product not infringing on the customer’s current learning stack yet
  • 05:10 – Sales Huddle started as a part-time consulting company 6 years ago
    • 05:26 – The development of the product was in middle of 2014
    • 05:27 – Selling started in 2015
  • 05:40 – Team size is now 20
  • 06:05 – Sales Huddle is currently raising and has raised $400K
  • 06:33 – The round was a kiss convertible note
  • 06:41 – A kiss convertible note converts to an equity and is similar to safe note
  • 07:44 – Many startups don’t think of their sales pipeline
  • 08:08 – Sales Huddle is currently in a strong position
  • 08:40 – As a founder, Sam believes it is his responsibility to drive the shift with his team
  • 08:58 – Sam can definitely raise money through sales, but they have to think of the worst case scenario
  • 09:12 – Sam sees his company running a 100m dash; once they get to 200m, they will think about how to get to 300m
  • 09:30 – ARR goal is around 100m and they’re currently at 50m
  • 10:16 – Sam just had a daughter
  • 10:49 – Sam is building a team that is going to have your back in a bar fight
  • 11:12 – Sales Huddle’s competitors
  • 11:43 – Sales Huddle just started to spend money on paid acquisition
  • 11:59 – Sales Huddle is almost always breaking even
  • 12:16 – Sales Huddle is burning $40K-60K a month
  • 12:41 – The hardest shift for Sam
  • 13:50 – The Famous Five

3 Key Points:

  1. A great retention rate could mean you’re not charging enough or your product is just that good.
  2. Be the founder that your team trusts—even to the point of trusting you that raising funds is not necessary.
  3. Always invest in growing your network!

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
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • 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
  • Show Notes provided by Mallard Creatives