I remember Rory, CEO of VERB mentioned some whales in a Summer update and if some hit...
This feels like it could be a +$1M/yr deal when all is said and delivered. Maybe even a lot more.
If they were even doing part of this in house, they likely were spending more than that anyway
Keep in mind, just on part of it. Now they can outsource it and focus on what they do best rather than also trying to be a technology company.
Looks like Kyani may be a $100M+ company and has 100,000 distributors?
VERB's base core product is $3,500/mo minimum or $42K/yr
If they have 100K users and only 10% used the product, that takes the annual up to $120K/yr.
50% takes the annual up to $600K/yr
Each additional market beyond 3 is $1,500
I am assuming that is per month as it takes resources to support different markets and updates. Not a one time thing
If I am right, that is $40,500/mo or $486K/yr
Sampling add another $90K/yr
That doesn't include the per sample charge
If 50K people sent out only 1 sample a month, that is $360/yr
If you started off with 10K sending 5 a month, that still is $360/yr
Learn add another $90K/yr
If Learn is standalone, make that $300K/yr
What I like about this deal
- It's big, really big
- It's an established company and not one starting from scratch. Larger VERB revenues will come quickly
- These deals don't happen in weeks. They happen over many months and a lot of decision making. You are now seeing the fruits of the pipeline from prior quarters
- Whenever you can win over a client that is using a different vendor for years, that is tough. It's not easy. Even harder to win over someone that is doing it themselves
- They didn't decide to dip their toe in the water to try it out, but are all in
- Showcases VERB entire platform. Now you are seeing the potential revenue together rather than the parting out
- They are likely signing a yearly or multi year commitment vs. month to month.
- Lot of SasS vendors would kill to make this kind of revenue from one sale vs. $10/mo
- This will open up the analyst eyes on this type of deal size
- This negates all the BS that everything is so easy to do yourself. If that was true, why would the client stop doing it.
