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Syften sells everywhere without worrying about sales tax

By leveraging Paddle as its Merchant of Record, Syften offloads the burden of global sales tax whilst increasing revenue.

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Sales tax jurisdictions unlocked

Syften is an advanced social media monitoring tool specially designed to help startups track and respond to online mentions about their companies.

Using Syften, startups can better understand their customers’ or prospective customers’ needs and engage with communities most relevant to their business. 

The brainchild of solopreneur Michal Mazurek, Syften began life as a script he wrote to notify him whenever someone mentioned a particular phrase on Reddit. 

I shared this script on Indie Hackers, where it received a very warm reception. It turned out that the script was much more popular than the tool it was originally created for, so I switched to working on it full-time.”

Michal Mazurek, Founder, Syften

Today, companies all over the world use Syften. 

When someone mentions a user’s company online, they get a notification. Maybe a potential customer wants to sign up for their product, or maybe they have had an issue that they haven’t been able to resolve. Syften allows them to jump in and reply very quickly. It’s a fantastic opportunity to provide great service or recover from potentially damaging customer feedback.” 

Michal Mazurek, Founder, Syften

The challenge

Single handedly running a globally-used product like Syften is no easy feat. It requires Michal to manage everything from product development to customer care. Adding the complexity of global payments and international sales tax into the mix was too much for him to handle by himself. 

I needed to sell globally, but international tax laws are incredibly complex. Taxes in Europe are a nightmare, and the idea of setting up local entities to sell in regions like India was just too much for one person.”

Michal Mazurek, Founder, Syften

On top of this, the administrative burden that came with managing invoices and refunds manually in Poland’s complex tax system was overwhelming.

Handling hundreds of invoices here would take the joy out of running my business.” 

Michal Mazurek, Founder, Syften

Michal realized he needed a solution that would take the complexity of payments, billing, tax, and refunds off his hands so that he could focus on what matters most to his business: Improving his product while increasing efficiency and profitability. 

The Solution

Michal began searching the market for a solution, but quickly found there to be an overwhelming number of tools and services. 

A lot of payment solutions only focus on one thing, so you have to create a billing stack comprising multiple solutions. I didn’t want to do that.”

Michal Mazurek, Founder, Syften

After doing additional research, Michal came across a Paddle article explaining the Merchant of Record (MoR) model and why businesses should use this for international payments and sales tax. 

Paddle does a fantastic job of explaining what the MoR model is. I realized that, with a MoR, I could instantly sell across the whole world. It made my decision easy.”

Michal Mazurek, Founder, Syften

Michal shortlisted two companies, one of which was Paddle. 

I did have a call with the alternative provider, but they were incredibly corporate and far too salesy. I had to set up a meeting before they would even reveal their prices. That was quite off-putting.”

Michal Mazurek, Founder, Syften

Paddle, however, was very transparent about its pricing structure. Even compared to a PSP like Stripe, Paddle’s all-in pricing was more effective when factoring in all the services included.

If you compare the prices, Paddle is 2 percentage points more expensive than Stripe. But if you do a quick calculation, you realize that if only one in every 50 of your customers is from, say, India, it's worth going with Paddle.”

Michal Mazurek, Founder, Syften

Michal was also impressed with the support he received from the Paddle team.

I got real, human answers from Paddle’s team, not canned responses. This was fantastic and differentiated Paddle from its competitors.”

Michal Mazurek, Founder, Syften

The results

Syften has now been using Paddle for six years – with great results.

Time back to focus on evolving Syften

Paddle has automated all aspects of Syften’s payments management, including billing, tax compliance, and refunds. This has given Michal the time he needs to focus on growing his business. 

I like the fact that Paddle does everything for me. It saves me a huge amount of time and effort. If a customer needs a refund, they just click a button and they get it. Invoices get amended automatically. Most importantly, thanks to Paddle, I can sell across the world without worrying about supporting new currencies, languages, or complying with local tax regimes.”

Michal Mazurek, Founder, Syften

Boost in revenue with add-ons and new pricing

Using Paddle, Michal has experimented with new pricing and easily introduced paid add-ons to the product that help the company better serve its customers and bring in additional revenue.

I’ve been able to experiment with upping what I charge, and I have created a tiered pricing structure. I’ve also been able to charge extra for add-ons, which is great since they cost money to develop. Paddle makes everything so simple – I just click a button to add a new feature.

Michal Mazurek, Founder, Syften

Data-driven decisions with ProfitWell Metrics

Using ProfitWell Metrics, Michal has a greater understanding of KPIs including customer churn and lifetime value which has helped the company decide how much to spend on customer acquisition. 

I can question whether it is worth me sponsoring a podcast, for example. ProfitWell Metrics really does inform my spending decisions.”

Michal Mazurek, Founder, Syften

The future

In the months and years to come, Michal anticipates further leveraging Paddle’s advanced capabilities, including multi-line subscriptions, enhanced add-on pricing, and involuntary churn recovery through Retain.

Paddle is a long-term partner and I feel strongly that the company is committed to my success. I’m excited to see where our partnership takes us in the future as I use even more Paddle features.”

Michal Mazurek, Founder, Syften

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.