Expensify EC-1 Half 5: Enterprise mannequin
You’d anticipate an expense administration firm to have a big gross sales division and promote by way of all types of channels to maximise buyer acquisition. However like we’ve seen again and again by way of the course of this EC-1, Expensify simply doesn’t do what you assume it ought to.
Preserving in thoughts this firm’s propensity to simply keep on with its guts, it’s not a lot of a shock that it acquired to more than $100M in annual recurring revenue and hundreds of thousands of customers with a employees of 130, some contractors, and an nearly non-existent gross sales workforce.
If you happen to’re questioning how its doable to develop to such a degree with out a longtime gross sales workforce, the quick reply is: Phrase of mouth. To an extent, Expensify can do that as a result of house it’s in, as expense reporting is such a thankless, nearly thoughts numbingly boring process that anybody who discovered a great answer is certain to advocate it to their colleagues and associates.
But it surely’s extra fascinating how Expensify grows bottom-up inside SMBs, its core buyer base. By offering a simple and significant expertise through the product itself, the corporate has come to some extent the place it solely takes one or two customers who love the service to show their firm into prospects.
This method flips the normal gross sales mannequin on its head and is now often called product-led development, however Expensify did it lengthy earlier than it was an accepted enterprise mannequin. Although that was tougher than it sounds, it additionally put the corporate in a uniquely privileged place, which it’s absolutely intent on leveraging.
Beginning the flywheel
There are a lot of methods to get such a enterprise mannequin began, however as standard, Expensify threw warning and all recommendation out the window and banked on turning its customers into evangelizers for its product.