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9 contributions to The No B.S. SaaS
Looking for the Lesson Or Advice that SaaS should be able to be Explained In ONE sentence
...or something similar? I thought you said that in a lesson and was trying to rewatch or reread that post. MIght you know which post thats in @Aaron Krall ? I'm looking to see examples (as dumb as that sounds). Thanks
1 like • 3d
@Aaron Krall great refersher on the topic. Also a change away from the mindset of selling the new birdhouse built for little Lisa or the new backyard deck or the smile on little Billy's clubhouse when he sees it built. vs selling the hammer - it drives nails into wood. Appreciate the simplicity here. thanks!
What a $500/day SaaS looks like (actual numbers)
Here is a screenshot of what a couple days of running an LTD looks like (share with permission). This is a simple SaaS btw. You'd be amazed at how simple of a job this product is doing - and AI is doing all the heavy lifting. Looking at yesterday (Nov 16) here are the high level details: 1. 10 customers 2. Average Order Value $63 (our goal is to get this as high as possible) 3. Total Ad Spend: $420.04 4. Total in LTD/Order Bump Sales: $638.00 5. Total Upsells: $293.94 6. Total Revenue: $931.97 7. Total Profit: $596.64 8. TOTAL ROAS: 2.22 Couple of things to note: - Our ROAS for the LTD/Order Bump was 1.5, which we don't really count on, yesterday was just a good day. Usually we try for at last 1 ROAS on the front end. - Some revenue came from subscriptions, which we count towards daily ROAS because one of our upsells is a subscription. - The Order Bump crushed it - almost $500 in just order bumps (the order bump is $99 - so that's 5 buyers - a 50% uptake on order bumps! This is a good day. Not every day is $500 profit. Two days ago daily profit was $374, so weekly average is about $300/day. If we put more into adpsend, we could easily get to $1,000 a day. We haven't increased ad spend yet because we're still testing a few things to get AOV as high as possible. Once we do, we'll add another few hundred a day to our budget.
What a $500/day SaaS looks like (actual numbers)
0 likes • 15d
@Witold Litwin are you trying to subtract the adspend from the profit at the end? The ad spend is already taken out of the revenue to reach the profit. At least that's what I'm seeing you are tryinig to do. as I see above, your final profit is still $426 idk how VAT works, but looking at your concept.... at worst its $757 VAt rev -420 ads = $340 ish total profit. This number is ALWAYS your profit. Unfortunately gov doesn't see it the way you do. You are looking at your companies take home amount by looking at the number minus your income taxes: Your Company Take Home is 12% off the company profit which is like max $40 so you are at $300 company take home for the day. Return on Ad spend remains 2.22 as that is Revenue divided by adspend no matter what VAT and taxes are. But the important number is still having PROFIT. Unfortunately gove is going to their share no matter what (then again from your salary the effing thieves and again when you buy something). Hope this helps clear it all up for you.
1 like • 13d
@Witold Litwin glad to help where I can. God knows I can’t be an IT tech guy 😂
Why is it SO hard to grow an "innovative, new" SaaS idea?
Before you build something TOTALLY new... In 1850, the Haughtwout Dept store installed the first commercial passenger elevator, but customers refused to get in it. The store literally had to post attendants at each floor to re-assure shoppers, sometimes physically escorting them to the elevator because people thought it would fall and kill them. It took 50 years for people to feel safe enough in an elevator to ride it without attendants. And another 30 years before elevators were commonplace. We look at elevators now and don’t even question getting in em. (Unless you’ve seen “Devil” from M. Night. Shyamalan, lol). It took Slack 5-6 years to become a commonplace app - it was a totally new idea for most people. When you create something totally innovative and new, you’re not competing against other products… You’re competing against basic human psychology and survival instincts. When you launch a totally new SaaS idea, you have to overcome the following internal dialogues: 1. “If this fails, I’ll look stupid or lose something” People hate looking stupid. They’ll expend a lot of energy to NOT look stupid. They also risk losing time, data, getting no results, the product not working. 1. “This is too new - new is dangerous”. People sometimes stick with something they don’t like because the risk of trying something totally new causes even more anxiety. 2. “I’m not going to the be the first one to use this” - No social proof means they’re the guinea pigs and pioneers. Most people don’t want to be the first person to try something brand new, even if it’s better, because they don’t want to waste time, energy and effort on something that “might” work. Just to be clear, I’m VERY grateful for the visionaries who had the time, energy and grit to bring us this great technology… The thing is, I don’t want to be BE that person. When we launch SaaS, we pick a market that is already saturated. We choose a job that people are already paying to get done for them. We pick a mature market that is growing.
Why is it SO hard to grow an "innovative, new" SaaS idea?
1 like • 15d
Wise
DBA? LLC ? or just sell under current company name?
@Aaron Krall In the beginning...what's best policy? I don't have a SaaS company. Should I just set up under current company stripe or do a DBA or form a new LLC just for it? What's best practice? I actually don't mind setting up new LLC as I can go get probably a $100k 0% business funding for it. Or at least $50k. I'm doing that for my consulting company past year and acquired $200k so far for it and will top out at probably $350k in the next 2-3 months from a brand new LLC with no revenue history. I can't duplicate that for a 2nd company since PG plays a part, but definitely can acquire more if I go thru the headache of launching a seperate LLC.
0 likes • 16d
@Aaron Krall ok. any idea how to transfer it if I started selling under my current company and then wanted to move the sales/cost to a dba? I know you are not an accountant for "expert" advice, but maybe you've done that in the past?
What SaaS do I build???
Inside the No B.S. SaaS we do this very differently from what you'll see on forums and discussion boards and books. Not because we’re trying to be contrarian. It’s just easier, faster and gets you to revenue without burning months on something no one asked for. Most people go looking for the “cool, innovative, never-been-done” idea. Something unique. Something clever. Something their friends will say, “Wow, that’s so original.” The problem is once you build something nobody has ever heard of, you now have two full-time jobs. You have to build it and you have to educate everyone on why they should want it. That's too hard! Life is hard enough. I want easy. So in No BS SaaS we skip all of that and do the opposite. We start in a red ocean. Something people already know they need. Something they’re already paying for. Something that requires zero education. If the market already understands it, you eliminate the whole “validate the idea” phase instantly. Next piece: Make sure the idea has a natural upsell path. A lot of micro tools don’t. I use one called Due App. It reminds me when my meetings start across my devices. Great little app. Works perfectly. But there’s no upsell path. There’s no way I’m ever paying more money to “upgrade” a reminder. It’s too small of a problem. Compare that with something like a customer feedback tool. Everyone already knows they need feedback. There are tons of these in the market already. And the upsell path is obvious. More submissions. Branding. Custom domain. API access. Team seats. It’s built for expansion. That’s what we want. A product with room to grow. The third thing. If you can find an idea where people are unhappy with the existing options, that’s gold. Maybe the price is too high. Maybe the UI is confusing. Maybe they hate the support. Those complaints tell you exactly where you can come in with an offer to fill that gap. When you can say, “Instead of paying $100 a month for Zendesk just to collect feedback, here’s a one-time $67 alternative that also includes X, Y or Z feature they don’t give you,” it’s a very easy sell.
What SaaS do I build???
0 likes • 22d
Do you always price your LTD at under $100? I see that in all the ad copy you shared. And do you ever sell an info product first...with the upsell being the SaaS which makes easier or automates or amplifies what was learned in the info product? Or in what you are teaching we always sell the hammer / drill cheaper only and never the kids playhouse can build / or the hole the drill creates? I love the simplicity of this all though. How many sales do you usually need to profit $500 a day after ad cost? I know it's not as simple as $67 x X as you also offer order bumps and add ons/upsells in your funnel.
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Arthur Koster
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