Fabien Pinckaers, CEO @Odoo: The Billionaire Founder Who Doesn’t Care About Money and budget

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This is a very inspiring video featuring an unconventional entrepreneur—truly fascinating. I don’t often publish interviews with other CEOs on my personal blog, but I really enjoyed this one. The open-core business model is particularly interesting, and it's impressive to see how a Belgian entrepreneur is expanding globally. So, please welkom Fabien Pinckaers.



 

YouTube Video Link: https://youtu.be/vgvbRRVreHI

Introduction and Early Business Ventures

  • The guest discusses obsession as a key to success and his approach to business.
  • He started his first business at age 13, creating management software for friends.
  • Early ventures included:
    • T-shirt e-commerce (selling Linux-themed shirts).
    • An art marketplace that eventually outsold eBay in Belgium.
    • Other businesses such as antivirus software and games.

Founding of Odoo

  • Odoo was founded as a culmination of his passions for development and management software.
  • Initially focused on auction houses and e-commerce.
  • Unique Strategy: Instead of building a Minimum Viable Product (MVP), he built a full-featured software suite from the start, covering accounting, logistics, purchasing, etc.

Business Challenges and Growth

  • Bootstrapping Strategy:

    • Early funding came from professional services, not investors.
    • Grew to 100 employees but faced financial difficulties.
    • Pivoted from services to software licensing in 2010, raising €3M in funding.

  • Struggles with Monetization:

    • Initial open-source model failed because customers stopped paying after the first year.
    • Switched to Open Core Model (80% free, 20% paid features).
    • This change turned the business around and led to sustained growth.

Pricing and Scaling Challenges

  • Experimented with multiple pricing models, some of which hurt growth.
  • In 2022, a pricing adjustment (lowering costs for small customers, raising for large ones) led to a 2.8x increase in customer acquisition.

Key Takeaways

  • Big risk-taking: Built an entire software suite rather than an MVP.
  • Monetization pivot was critical: From open-source to a hybrid paid model.
  • Continuous growth: 50% YoY for 20 years.

Odoo’s Pricing Evolution and Key Changes

Initial Pricing Struggles

  • Early model: Odoo was fully open-source, relying on maintenance contracts for revenue.
  • Problem: Customers would pay for year 1 but then stop paying in year 2 since they didn’t need ongoing maintenance.
  • Revenue Impact: The business was not sustainable and nearly went bankrupt.

2010 - First Monetization Pivot

  • Odoo raised €3 million and switched to an Open Core Model:
    • 80% of features remained free (open-source).
    • 20% were premium (paid).

Pricing Mistake (Unknown Year)

  • At one point, Odoo tried a complex pricing formula:
    • Price = €10 × Number of Users × Number of Apps Used.
    • This resulted in excessively high prices, leading to pushback from partners.
    • Result: Lost nearly a year of growth before reverting back.

2022 - Major Price Adjustment (Successful)

  • Previous model:
    • €120 per user/month for all apps.
    • Too expensive for small businesses with only 1-2 users.
  • New model:
    • Lowered price for small customers to €20 per user/month.
    • Increased price for larger enterprises.
  • Impact:
    • Customer acquisition increased by 2.8x.
    • More small businesses started using Odoo.

Odoo offers a range of pricing plans tailored to different business needs. Here's an overview:

1. One App Free Plan

  • Cost: $0
  • Details: Access to a single Odoo application for an unlimited number of users, hosted on Odoo Online. This plan is ideal for businesses that require only one app, such as Accounting, Website, eCommerce, or Point of Sale. citeturn0search0

2. Standard Plan

  • Cost: $31.10 per user per month (billed annually)
  • Details: Includes access to all Odoo applications, hosting on Odoo Online, and unlimited support. This plan suits companies that do not require custom development or third-party app integrations. citeturn0search0

3. Custom Plan

  • Cost: $46.70 per user per month (billed annually)
  • Details: Provides all features of the Standard Plan plus additional capabilities like Odoo Studio for custom app development, multi-company support, external API access, and options for hosting on Odoo Online, Odoo.sh, or on-premise. This plan is designed for businesses needing customization and advanced features. citeturn0search0

Note: Prices are subject to regional variations and may differ based on your location. For the most accurate and up-to-date pricing, it's recommended to visit the official Odoo pricing page or contact their sales team directly.

Odoo’s Staffing and Recruitment Strategy

1. Hiring Philosophy

  • No external VPs, managers, or team leaders:

    • Odoo only promotes from within, ensuring cultural alignment.
    • External hires often bring their own management styles, which may not fit Odoo’s structure.

  • Focus on young talent:

    • The average employee age is 26.
    • Instead of hiring senior executives, Odoo prefers to hire young professionals and train them.

2. Recruitment Process

  • Fast and Efficient Hiring:

    • The entire hiring process takes 5 days.
    • Candidates book interviews online, reducing delays.
    • One interview + practical test = decision.

  • No traditional resume screening:

    • Instead of relying on CVs, Odoo tests candidates directly in their role.
    • Developers code, sales candidates pitch, etc.

  • IQ Test Requirement:

    • Odoo uses an IQ test as a key hiring metric.
    • It is the second most predictive factor of success at Odoo (after technical ability).

3. Employee Development

  • One-month onboarding program:

    • Includes e-learning, tests, certifications, and practical exercises.
    • After this, employees join their teams and receive on-the-job coaching.

  • Team Structure:

    • Small teams of ~10 people.
    • Each team has a "team leader" (not a manager) who is the most skilled person in the group.
    • No budgeting, forecasting, or recurring meetings—team leaders focus only on improving their team’s skills.

4. No Traditional Management Structure

  • No performance KPIs:
    • Odoo does not track sales quotas, developer deadlines, or arbitrary targets.
    • Instead, success is measured organically through observation.
  • No recurring meetings:
    • Employees collaborate daily but avoid unnecessary meetings.
  • No fixed budgets for teams:
    • The CFO manages overall finances, but teams request resources as needed.

Key Takeaways

✔ Fast hiring (5-day process, no resumes)
✔ Young, high-potential workforce (average age 26)
✔ No traditional managers—team leaders must be the best in their skill
✔ No KPIs, no recurring meetings, no budgeting constraints

1. Odoo Partner Program (Official Integration Partner)

✔ Who it’s for: Companies that want to offer Odoo solutions, customization, and support to their clients.
✔ Benefits:

  • Direct access to Odoo Enterprise features.
  • Revenue-sharing model (earn commission from Odoo subscriptions).
  • Training and certification to build expertise.
  • Marketing and sales support from Odoo.
    ✔ Cost: Odoo charges a partnership fee based on your level (e.g., Learning, Ready, Silver, Gold).

📌 More Info & Application:
Odoo Partner Program

2. API Integration (Use Odoo Without Being a Partner)

✔ Who it’s for: If you don’t want to be a partner but need to integrate Odoo with your marketing platform.
✔ How:

  • Odoo provides a REST API & XML-RPC API to connect external applications.
  • You can sync data (e.g., clients, orders, campaigns) between Odoo and your platform.
  • You don’t need to be an Odoo developer—any Python/JS developer can integrate via API.

📌 Odoo API Docs:
https://www.odoo.com/documentation/16.0/developer.html

3. Hiring Odoo Developers

✔ Who it’s for: If you prefer to outsource Odoo development instead of learning it yourself.
✔ How:

  • You can hire Odoo freelancers from platforms like Upwork, Fiverr, or Odoo’s job board.
  • You can work with an existing Odoo Partner who can customize it for your clients.

📌 Find Odoo Developers:
https://www.odoo.com/jobs

Which Option is Best for You?

  • If you want to offer Odoo development services → Become an Odoo Partner.
  • If you only need to integrate Odoo with your platform → Use the API.
  • If you don’t want to develop yourself → Hire an Odoo developer.


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