FIVE MINUTES WITH COMMTRACT CEO LUKE ACHTERSTRAAT

Commtract is a platform and marketplace connecting communications professionals with businesses and helping the gig economy thrive. Idealog has a chat with Commtract CEO Luke Achterstraat about where the idea sparked from for the business, the trends it’s

Idealog: Where did the idea for Commtract come from? Achterstraat:

We wanted to solve a problem every business faces: how do I find great people instantly to deliver critical short-term projects? And how do I engage them seamlessly and flexibly? We were seasoned communications professionals who saw the potential to build an online talent marketplace in our niche. Two years later, we have a thriving platform across Australia and New Zealand with more than 3000 vetted professionals who are connected online to short-term and gig work with exciting organisations.

What gap in the market does it serve, or trends does it tap into?

Commtract is riding the megatrend of the gig economy. There are more and more specialist freelancers, contractors and consultants out there wanting to be a ‘gun for hire’ in their discipline. At the same time, organisations are more agile, needing short-term, flexible solutions because they are head count constrained. Companies that use Commtract are typically fed up with traditional retainerbased agencies, think that recruiters are too slow, and feel that jobs board like Seek do not have an adequate focus on quality and vetting.

What was your background before this, and how did it lead you to founding this company?

I was a political adviser in Australian politics meaning I learnt a heap about adaptability and change! More so, I had observed how communications and PR activity is typically project-based. In politics, you move from one campaign to the next, often unexpectedly, and resource your team accordingly – much like the 21st century gig economy.

How does the Commtract product work?

We are an online marketplace where clients post a project they need done – from one day to 12 months in duration, both onsite or offsite, across any form of communication discipline. Prevetted professionals are then invited through our platform to submit their proposal and pitch their credentials. Once you find the right person, our platform helps you take care of the ‘boring but essential bits’ such as engagement letters, invoicing and payments.

How many iterations did it take to get this right?

Is it ever right?! Continuous improvement is the mantra of any technology company! We have been comfortable that our MVP (minimum viable product) has served our customers and users well since our launch in early 2017. That said, we work very closely with our clients, from large enterprise to small business, to ensure the platform fulfils their ever-growing needs. Ultimately, we want organisations to find great talent quickly and ensure the process is a pleasant, not painful, one!

What kind of feedback have you had from users?

The feedback has been overwhelmingly positive. I am amazed by how many people say, “This is what we had been waiting for!” or, “Why didn’t I think of that?” This is especially true from users who see value in technology and are embracing a new way of thinking, rather than relying on a bricks-and-mortar model. Some of our clients now use Commtract exclusively for all their comms resourcing needs, which is a fantastic outcome.

What's your point of difference that makes you better from your competitors? Who are your competitors?

Our competitors are typically recruiters, agencies and jobs boards. Our point of differentiation is that we have pre-vetted the talent and they are available immediately, at competitive rates, as required. We have phenomenal speed to market and are known for being able to deploy vetted experts to clients within literally five minutes of receiving an online brief.

What stage is Commtract at now?

We have ridden the rollercoaster of intense growth typically associated with an early-stage, high-potential start-up. We could not have asked for a better start and our focus is now ensuring we continuously mature our processes to sustain our future growth.

How have you gone about raising capital?

We were fortunate to have upfront investment in 2016 from highly regarded communications leaders in both Sydney and Melbourne – Ross Thornton, Rebecca Tabakoff and Anna Whitlam. These angel investors are very strategic to our approach to sales and business development approach. About a year ago, we conducted another round of funding from thought leaders in our field to set ourselves up for the next stage of growth.

What are some of the biggest challenges you've faced along the way?

It’s all about encouraging cultural change and making organisations feel comfortable to embrace the gig economy. It is becoming increasingly professionalised as by 2020 almost half the ASX workforce will be non-permanent. So we need to have that discussion sensibly and articulate the mutual benefits of a more specialised, contingent and remote workforce.

How many clients are using your product now?

We now have approximately 750 clients across Australia and New Zealand, including large listed companies, government departments, industry groups, PR firms, peak bodies, small business and startups. There is no client too big or too small!

What's next? Where do you hope to take this?

We see huge potential to roll out the Commtract model across a range of sector-focused verticals and associated disciplines. We want to be the ‘centre of excellence’ when it comes to people embracing the professionalised gig economy, no matter their specialty. To find out more, visit www.commtract.com