Paddle Billing
ProfitWell MetricsThe company
Over the past seven years, Romania-based company FirstPromoter has helped thousands of businesses (including Paddle customers) launch and scale highly profitable affiliate programs.
It’s the brainchild of Virgil Cioaca, a former affiliate marketer, who saw a gap in the market for a tool that could automate many of the time-consuming processes he was having to handle himself.
All the automation solutions available to me were clunky and hard to use. They didn't have a proper integration with their billing providers, so there was a lot of manual work involved in managing affiliates and commissions, and so on. I wanted to create a deeper integration. And so that’s how FirstPromoter was born.”
Virgil Cioaca, Founder, FirstPromoter
The solution automates the complex parts of affiliate and referral tracking – including commission payouts, customer tracking, and reporting – and integrates seamlessly with major billing providers, including Paddle.
With a great product, it was only a matter of time before the complexities of global growth caught up with Virgil and the FirstPromoter team. Here's how Paddle helped them navigate it all.
The challenge
In the years following its inception, FirstPromoter experienced steady organic growth. But this quickly presented problems when it came to serving customers across borders.
Handling VAT, invoicing, and tax regulations across multiple countries was complex and time-consuming. To manage this manually would have required significant resources and expertise.”
Virgil Cioaca, Founder, FirstPromoter
Virgil recognized that, to offload the administrative burden, he needed a Merchant of Record (MoR) – a legal entity responsible for selling goods or services to an end customer. The MoR manages all global payments and takes on the associated liabilities, such as collecting and remitting sales tax, ensuring Payment Card Industry (PCI) compliance, and honoring refunds and chargebacks.
The solution
FirstPromoter tested several MoR platforms, including FastSpring, but found them difficult to use and integrate. “The setup process was lengthy, and the interfaces were not user-friendly,” Virgil says.
But then he found Paddle.
Paddle was not only cheaper than FastSpring, but it was much easier to use than competitor solutions. I really liked the interface, which was very intuitive for a startup like us.”
Virgil Cioaca, Founder, FirstPromoter
As well as being a MoR, Paddle also offered the specific payments and billing functionality that FirstPromoter required.
I checked the solution could manage coupon codes and subscription features, and everything was there. In the end, choosing Paddle was a simple decision to make.”
Virgil Cioaca, Founder, FirstPromoter
Next, it was time for implementation – and this couldn’t have been easier.
The developer documentation was clear, and the implementation flow was logical and intuitive...it only took a few hours to implement Paddle completely, while other solutions would have taken a few days.”
Virgil Cioaca, Founder, FirstPromoter
The results
Since adopting Paddle, FirstPromoter has realized multiple benefits.
Simplified tax and compliance
By outsourcing its tax and compliance responsibility to Paddle, FirstPromoter has saved a significant amount of time and resources and has no need to invest in additional accountancy support.
I’ve seen many of my clients try to take on the administrative burden of tax and compliance themselves, and it has brought so many headaches. We have none of that.”
Virgil Cioaca, Founder, FirstPromoter
Paved the way for global expansion
Safe in the knowledge that it is fully compliant in every country it operates in, FirstPromoter can scale without limits.
We face harsh fines if we don’t comply, particularly in Europe. To be able to completely offload the responsibility is a weight off our shoulders.”
Virgil Cioaca, Founder, FirstPromoter
Improved data insights
ProfitWell Metrics provides FirstPromoter with valuable data that takes the guesswork out of growth.
ProfitWell Metrics is one of the best features of the platform. We get a lot of useful insights that help us to identify high-value customer segments and shape our business strategy accordingly.”
Virgil Cioaca, Founder, FirstPromoter
Reduced involuntary churn
By leveraging Retain, FirstPromoter has made it easier for its customers to stay than to leave.
We’ve reduced involuntary churn by approximately 20% since we started using Retain”
Virgil Cioaca, Founder, FirstPromoter
The future
In the future, FirstPromoter is considering migrating from Paddle Classic to Paddle Billing – a move that will deliver enhanced flexibility and an improved user experience.
A number of my customers already use Paddle Billing, so I’ve seen how great the user experience is. By upgrading we will be able to create complex pricing structures and manage different product tiers with ease. This will allow us to scale more effectively and continue to strengthen our position in the market.”
Virgil Cioaca, Founder, FirstPromoter
Want to know more about how Paddle can help your SaaS or digital product sell globally with ease? Create your free account now or speak to our team. Get Started.
