Hey - Marc here.

Happy Saturday morning, motivated B2B SaaS Founders!

Here's at least one tip to keep in mind as you grow your B2B SaaS company:

Today's issue takes about 5 minutes to read.

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In today's issue, I share some key takeaways from a recent interview between Nathan Latka, the host of Daily Interviews with SaaS Founders, and Shruti Ghatge, the CEO and co-founder of Zomentum. They discussed how she hit $250k MRR in November for partnership SaaS.

Shruti Ghatge is an investor investing in seed in series A, a SaaS star for jumping into the business, and was named CRN women of the channel 2022. Zomentum was awarded a great place to work under her leadership. Now, they've got 4k customers and approximately a $90m valuation.

About Zomentum

Zomentum, launched in the latter half of 2018, is a revenue platform that helps partners and partner programs save time by replacing numerous tools used for sales, quoting, and billing processes with one modern platform.

Zomentum is a two-sided network with partners on one side and a SaaS product on the other. Shruti takes care of everything business while her co-founder is in-charge of tech and products.

An average customer pays a per-partner fee, a sliding scale on their SaaS company side. They also have a motion where they add partners and those who pay $100 to $200 per month by themselves.

P.S. They now have around 4k partners in the network, and 70% of them pay to use their product. Their biggest SaaS company customer pays about $100K in a contract.

Challenges

Partner programs and partner revenue has been a black box for most SaaS companies.

Zomentum exists because SaaS companies and partners are trying to go to market together, but they live in their own silos. What they do as a platform is get both of them together on a single platform where they can come to get deals done.

Advice to Other Founders

Don't dive in too quickly.

Shruti used to work at Excel and saw this problem. She realized that SaaS companies don't know what to do once they're up and running; that's why they didn't write a single line of code at least 12 months into the company — they spent time solving for the chicken and egg, deciding which one would go first, and how they would penetrate with such a strong value proposition.

Go after your partners' success first.

Shruti is a big believer in partner success. She says more people buy SaaS products when partners are happy and succeeding. So by design, she wants to ensure that her partners succeed so their SaaS company can do well too.

Respect prices.

They use grandfather pricing, which started very low at $39 and eventually increased to $49.99. But because of compounding, then it's lower. Moving forward, new partners signing up are paying $200 on average, but historically, the average was around $60 to $80.

Now they've got 2.8k customers paying an average of 200 bucks a month — 560k a month in revenue.

Bonus

Shruti's favorite book is Play Bigger by Kevin Maney.
She sleeps a good 7-8 hours.
31 years old turning 32.
She wishes she knew in her 20s that she'd be fine like she used to be. She wanted to do things very quickly but thinks she turned out fine anyways.

TL;DR

Momentum, doing $35k a month a year ago, is now doing $250k a month with their two-sided network helping you grow faster with partner programs. They've got over 2.8k partners on one side of their marketplace and a SaaS company bringing in another 1.2k — making that over 4k partners on their platform as they look to scale. Again a two-sided marketplace here. 13 million series at a little under 100 million valuations last year. 75 on the team, 38 engineers, as she looks to scale with their four-person sales team based out of Bangalore with a 300k to 500k quota target.

P.S. Here is a link to the full interview if you are interested in listening to the full episode: She hit $250k MRR in November for partnership SaaS, 4000 customers, approx $90m valuation

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See you again next week.

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