On the agency, how do you structure your retainers? It sounds like they're dynamic based on the client's finances? How many calls would you say it takes approximately before they take that first bite?
On the SaaS, I see you've leveraged seller financing for multiple deals. Is there a minimum down payment percentage you try to have before making an offer?
"On the agency, how do you structure your retainers? It sounds like they're dynamic based on the client's finances?"
It's a combination of the needs of the client and the maturity of their business. I also have a minimum cost for the retainer so we can meet our own financial and margin goals.
"How many calls would you say it takes approximately before they take that first bite?"
We typically start with a project and then move onto a retainer. The initial calls are to scope out the initial project. It usually doesn't take more than 2 calls before I draw up a proposal and get a signature before we start.
"On the SaaS, I see you've leveraged seller financing for multiple deals. Is there a minimum down payment percentage you try to have before making an offer?"
It ends up being a math equation since I don't want the seller financing to expand past 24 months, and to take more than 90% of the revenue generated from the SaaS on day 1. This isn't a super strict rule but I think it ends up being more risky to structure things differently. So far I've paid down 50% and 35% for the two deals I've done. In both cases the seller financing was for 24 months.
On the agency, how do you structure your retainers? It sounds like they're dynamic based on the client's finances? How many calls would you say it takes approximately before they take that first bite?
On the SaaS, I see you've leveraged seller financing for multiple deals. Is there a minimum down payment percentage you try to have before making an offer?
"On the agency, how do you structure your retainers? It sounds like they're dynamic based on the client's finances?"
It's a combination of the needs of the client and the maturity of their business. I also have a minimum cost for the retainer so we can meet our own financial and margin goals.
"How many calls would you say it takes approximately before they take that first bite?"
We typically start with a project and then move onto a retainer. The initial calls are to scope out the initial project. It usually doesn't take more than 2 calls before I draw up a proposal and get a signature before we start.
"On the SaaS, I see you've leveraged seller financing for multiple deals. Is there a minimum down payment percentage you try to have before making an offer?"
It ends up being a math equation since I don't want the seller financing to expand past 24 months, and to take more than 90% of the revenue generated from the SaaS on day 1. This isn't a super strict rule but I think it ends up being more risky to structure things differently. So far I've paid down 50% and 35% for the two deals I've done. In both cases the seller financing was for 24 months.