[Video] 3 Steps I'd Take to $1M+ Revenue - Rob Walling

In this video, Rob Walling explains his "stair step method" to SaaS entrepreneurship.

The method involves taking three steps to reach $1 million or more in annual recurring revenue: building a simple product, rinsing and repeating, and then going full force into a full-blown SaaS app.

Step One: Building a simple product.

This could be a single feature of a larger product or an add-on for an existing ecosystem, such as a WordPress plugin, Shopify add-on, or Heroku add-on. The idea is to start generating revenue and learn the ropes without having to build a full-blown SaaS app, which can be complicated and time-consuming. Building an add-on to an existing ecosystem simplifies a lot of the process and allows for a steady flow of visitors and customers.

Step Two: Rinsing and repeating.

This involves doubling down on the model that worked in step one and repeating it until you own your time. You're using skills you have already developed, getting good at this essentially free or low-cost traffic channel, and learning the ropes of how to support software and interact with customers. This step provides income diversification and helps increase revenue and confidence.

Step Three: Going full force into a full-blown SaaS app.

This is the holy grail for bootstrappers, but it is popular and competitive. Rob suggests taking the stair step method because it allows for predictability and repeatability, and it takes longer to reach goals. By climbing the stairs and gaining experience, skills, and confidence, you're more likely to succeed than jumping straight into a full-blown SaaS app.

The biggest advantage of the stair step method is predictability and repeatability, which allows for a lot of confidence that you're going to make it to your end goal.

The biggest disadvantage is that it can take longer to get where you want to go, and you might face platform risk and a natural plateau in step one businesses.

There are so many ways to approach SaaS entrepreneurship - and this is just one of them. The whole video is worth a watch, and Rob Walling has a lot of great tips in his channel for aspiring SaaS founders.

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