Ben Mones is the Founder and CEO of Fama, a SaaS company revolutionizing the hiring process. Mones has transformed Fama into a hyper-growth operation with a lean business model. In today’s ‘How Did You Do It?’, we sat down with Mones, to learn how he was able to transform Fama into such a lean operation.

Interviewer:  Noela Tuquero (TCA)

Interviewee: Ben Mones (BM)

TCA: What is Fama Technologies?

BM: The signs of potential workplace misconduct have fundamentally evolved from five or ten years ago. Today, it presents itself in all sorts of different ways, whether it’s on social media, Google, or offline news. Quite simply, Fama is a software company that helps companies identify workplace misconduct through its online screening solutions. We help companies hire great people. 

TCA: What does Fama do for customers?

BM: We serve over 2,000 clients in over 25 countries. For each of them, we provide the tools and technology to gather informative data while remaining compliant and protecting a person’s privacy. Our software reduces turnover by over 50%, helping companies save on recruitment costs, improve team morale and productivity, and build a more stable and sustainable workforce. In addition to helping companies hire better, we have recently expanded our use cases to pre-investment screening for investors. We help VCs, asset managers, and hedge funds ensure they are backing great founders and management teams with the leadership and value set to take the company forward. 

TCA: You made a big decision in 2021, what were the results?

BM: In 2021, we made a big decision to focus on the go-to-market strategies that were the most productive for our business. In just a year, we doubled the revenue run rate. In 2022, our company-wide revenue retention rate was 155%, and our LTV (lifetime value) to CAC (customer acquisition cost) ratio was 80x. 

TCA: How did Fama achieve these metrics?

BM: In order to do this, we sunset our previous go-to-market strategy and reduced our sales and marketing organization down to near zero. Stripping away what we thought were core components of the business helped us identify exactly what we needed to be successful. Although a difficult decision, it was necessary to allow us to build a hyper capital efficient business. 

TCA: How did you deal with potential resistance to such big changes?

BM: Transparency. I used to be very private, not wanting to spook employees about the status of the company, our runway, etc. As a founder you have a higher tolerance for risk, and are not sure if your employees feel the same. In other words it was a ‘let the CEO and the CTO worry about it.’ Put another way, ‘Let’s keep our big problems to ourselves.’ However, we got really transparent with not only our upper management, but with the whole company. We explained why we needed to make these decisions, showed them the source data, and shared our goals. This made managing the pivot to go-to-market strategies and reducing headcount in certain departments, not just easier, but a shared priority across the entire business. It also became clear that people who worked for us felt a greater sense of job security because they knew exactly what was happening outside of their department, feeling more connected to the mission at large.

TCA: How can other entrepreneurs increase transparency in their company culture?

BM: When talking about how to change company cultures, it is difficult to pinpoint just one solution. However, if I had to, I would say it is important to get your company values right and live them as best as you can. It starts with the CEO. I use Fama’s values to guide the way I talk and engage, which flows down to the rest of the organization. 

TCA: Can we help Fama?

BM: Yes! As mentioned, we are just starting to get into pre-investment. If you know anyone interested, please reach out. 

TCA: How can people get in touch?

Company Website: https://Fama.io/

LinkedIn: https://www.linkedin.com/in/ben-mones-45740a2a

Disclaimer:
The views, information, or opinions expressed during the interview series is solely those of the individuals involved and do not necessarily represent those of Tech Coast Angels and its employees, consultants and interns. Tech Coast Angels is not responsible and does not verify for accuracy any of the information contained in the podcast series available for listening on this site. The primary purpose of this interview series is to inform. This Interview series does not constitute medical or other professional advice or services.