Scaling Europe
00:13:51 · Sebastian Johnson, Omer Kaplan
[00:13:51] S0: a bit about that next stage of the journey then? Because they come on board, do the score, they do the market and then they become kind of scale partners. What does that look like for an e commerce brand? [00:14:01] S1: So that actually is extremely unique because if and maybe we can do it another time but if you go to our dashboards in our platform, I think we're the only one in the world that gives within the same place basically other than the manufacturing itself, they have everything there. They have obviously all of their data but their data is already thinking PLTV and ROAS and LTV not just ROI which is very important. They have all of their performance there, but not only Meta, Nepalveen, and TikTok, but also in the same place they have Amazon and they have influencers and they have attribution for each of them, understanding also the correlation between everything, which is extremely hard. They have everything around CRO. They have everything around retention. They have everything around customer support. They have inventory forecasting. They even have the kind of twelve month budget plan that's connected. It's literally replacing for them at least seven or eight companies dashboards and platforms that they're working with. So instead of going to Shopify and to Meta and to Amazon and to Klaviyo and to Gorgias and to Triple Whale, they now have everything within the same place. And it's not just that everything is there, it's also really connected, which is very, very unique.
00:14:01 · Omer Kaplan, Sebastian Johnson
[00:14:01] S1: So that actually is extremely unique because if and maybe we can do it another time but if you go to our dashboards in our platform, I think we're the only one in the world that gives within the same place basically other than the manufacturing itself, they have everything there. They have obviously all of their data but their data is already thinking PLTV and ROAS and LTV not just ROI which is very important. They have all of their performance there, but not only Meta, Nepalveen, and TikTok, but also in the same place they have Amazon and they have influencers and they have attribution for each of them, understanding also the correlation between everything, which is extremely hard. They have everything around CRO. They have everything around retention. They have everything around customer support. They have inventory forecasting. They even have the kind of twelve month budget plan that's connected. It's literally replacing for them at least seven or eight companies dashboards and platforms that they're working with. So instead of going to Shopify and to Meta and to Amazon and to Klaviyo and to Gorgias and to Triple Whale, they now have everything within the same place. And it's not just that everything is there, it's also really connected, which is very, very unique. [00:15:39] S0: And how does this work for ZyG? What's the business model? What's the upside for you and the company?
00:15:39 · Sebastian Johnson, Omer Kaplan
[00:15:39] S0: And how does this work for ZyG? What's the business model? What's the upside for you and the company? [00:15:44] S1: So the business model is we take a range of 12% to 15% of revenue. That range is usually also dependent on kind of what is the... Because we help finance the growth, so also the return time on kind of the CAC versus LTV. And what's really interesting is that we onboard companies that we think are going to be at least at the round of like 2.5 LTV to CAC at scale. When you are taking our kind of fee and you compare it to the alternative cost of doing it themselves, because we are replacing so many different functions, we are actually a cost saver. So in addition to being able to provide tremendous scale, we are actually a cost saver if you compare apples to apples. [00:16:45] S0: And for the companies themselves, you mentioned it's a cost saving, you're consolidating a lot of what these tools would be doing. What would be the best outcome for them? How big do you think they can get and how big can you help them get? [00:16:56] S1: We are literally trying to only onboard companies that we can 10x them. So if they're selling at like $5,000,000 when they start working with us, we expect them to get to 50,000,000 in like a couple of years and then to more. I know, I see, I see, see, this is what we're looking for. We're not looking to provide something that can help you improve your numbers by 20%. We're looking to really take you to a whole different level.
00:16:56 · Omer Kaplan, Sebastian Johnson
[00:16:56] S1: We are literally trying to only onboard companies that we can 10x them. So if they're selling at like $5,000,000 when they start working with us, we expect them to get to 50,000,000 in like a couple of years and then to more. I know, I see, I see, see, this is what we're looking for. We're not looking to provide something that can help you improve your numbers by 20%. We're looking to really take you to a whole different level. [00:17:30] S0: And you showed me the tool, and I remember being almost gobsmacked by it because the speed at which it was able to assess the market, put all the materials together, it was absolutely insane. And the technology is clearly there today to enable so many parts of the scaling process to happen quickly and in [00:17:51] S1: a way that [00:17:51] S0: they haven't happened before. How do you see this changing the next three or five years? What other changes are coming down the line that can help companies grow even faster?
00:17:51 · Sebastian Johnson, Omer Kaplan
[00:17:51] S0: they haven't happened before. How do you see this changing the next three or five years? What other changes are coming down the line that can help companies grow even faster? [00:18:00] S1: So that's a very deep question because I think that three to five years nobody knows. I think there is also a big question around consumer shift change here. We all know about how much of purchases, transactions will be through agentic PAs, the likes of Manus and Instinet and all of that. But I do think that there is going to be democratization here. I do think that all of these tools and capabilities for the companies that will have the right partner to kind of get all of what it can offer, I think that much smaller companies will be able to become significant. Because I think that many of the things that you can do today with AI, before it was mainly only relevant for bigger companies, and I think that today also smaller companies can do it. And we've seen really similar trends in mobile games. [00:19:08] S0: Oh, really? Yeah. As in making it more accessible so that smaller individual sort of new entrants can then dominate?
00:19:08 · Sebastian Johnson, Omer Kaplan
[00:19:08] S0: Oh, really? Yeah. As in making it more accessible so that smaller individual sort of new entrants can then dominate? [00:19:16] S1: Yes. So we in our source, which was our previous company, we did something similar with mobile games where basically when we identified that there is potential, we delivered scale for them. And this was prior to AI, but what happened is that many of the indie game developers will manage to create huge hits. And I'm sure we're going to see it in consumerandecom. I'm sure we're going to see what we're calling indie, which is a bit different here. But I'm sure we're going to see these really amazing entrepreneurs with really great products that are now going to be able to get much more traction. [00:19:59] S0: And do you think there are certain product types within e commerce that are going to be easier to scale than others? [00:20:04] S1: I think that media is becoming very expensive and it's not going to change. And I think that as a result retention is key. I think that you need products that are not based on a one time only kind of experience and that you have customers and a community that keeps buying. And of course you need to know how to measure it and optimize, and it's a big part of what we're doing and how we're thinking. But I do think that this will be a very strong shift and most companies will go through being very kind of retention led and not just transactional led.