We built $10K/mo saas. Watch this before starting yours

Two individuals met in a co-working space and partnered to build a SaaS business that reached $10K MRR. They experienced burnout from previous building efforts without traction, leading them to develop a strategy of getting paid before building. This involved creating a fake landing page with a demo and asking for a refundable deposit, generating $500 before writing any code. Their validation strategy focused on obtaining payment before development, emphasizing that buyer commitment is the ultimate validation.

Their approach to validation involved setting up a landing page on an existing domain with a keyword-optimized headline and a fake demo video. They then used Google Search Console to ensure the page was indexed quickly. The key to validation was securing a $500 refundable deposit, which they received from a large company, confirming the market demand. They advocate for high-ticket pricing and charging early to create urgency and commitment.

Their growth strategy for their AI appointment setter business, which targets industries like solar, coaches, and financial services, relies heavily on inbound marketing through SEO and content. This includes creating free tools, writing comparison articles, and producing long-form YouTube videos to build trust and capture high-intent leads. Financially, the business achieved approximately $10K in revenue last month, with a focus on higher-paying customers to reduce churn.

• Pre-Build Validation: Secure payment, ideally a refundable deposit, before writing any code.
• Fake Landing Page & Demo: Create a compelling landing page with a fake demo to gauge interest and willingness to pay.
• SEO and Content Strategy: Leverage SEO, comparison articles, and YouTube for inbound growth.
• High-Ticket Focus: Charge significant amounts to ensure customer commitment and streamline the sales process.
• Financials: Achieved $10K MRR with 38 high-value paying customers, focusing on a profitable, lean model.

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The "Deposit Framework" for Pre-Build Validation [00:30]

• The core idea is to get paid before building anything to avoid wasting time on products without market demand.
• This involves asking for a refundable deposit, which signals serious buyer intent.
• For instance, they secured a $500 refundable deposit before writing any code.
• This strategy aims to validate the business idea by having customers commit financially.

The deposit framework, which is how to ask for refundable deposit before you build anything.

Fake Landing Page and Demo Strategy [00:36]

• A fake landing page with a demo was created months before the actual product was developed.
• The landing page used a warm domain (one already indexed by Google) for faster indexing.
• A fake AI caller demo was generated using tools like Eleven Labs.
• The call to action was a calendar link to book a demo call, allowing for direct interaction and qualification.

I created a completely fake demo for this product because the product wasn't there yet, and put it on this landing page.

Landing Page Optimization and Indexing [02:43]

• The initial landing page was simple, featuring an H1 keyword, a demo, and a "book demo" button.
• The H1 keyword "cold call automation" was chosen based on low difficulty and search volume found on tools like Ahrefs.
• Generated text was added to the page to provide more content.
• To ensure rapid visibility, the page was indexed within 24 hours using Google Search Console.

The most low-effort way to validate the idea because I wanted to find out if people would actually pay for this.

Defining Validation Through Payment [04:14]

• True validation comes when buyers are willing to swipe their credit cards.
• Receiving the first Stripe payment of $500 before the product existed was a clear sign of validation.
• A call booked by a company with a billion-dollar revenue was a strong indicator of an underserved opportunity.

The only way to validate is when buyers swipe their credit card.

The Validation Playbook [05:00]

• Step 1: Have a Job: Experience in a business provides insights into processes and pain points that may not be apparent on platforms like Reddit.
• Step 2: Set Up a Landing Page & SEO Research: Identify keywords buyers would search for using SEO tools.
• Step 3: Set Up a Calendly Link: Schedule calls to build trust and attempt to close deals on the call.
• Step 4: The Deposit Framework: Offer a 100% refundable deposit (e.g., $500) to secure commitment and a spot in the initial launch. Go high-ticket.
• Step 5: Incubation Time: Allow time for SEO to work, as buyers searching for solutions are serious leads.

Collect cash before writing code is definitely the way to go.

Growth Strategy: Inbound Marketing [08:50]

• The business focused purely on inbound marketing, doubling down on what validated the idea initially.
• This strategy involved SEO and content marketing, leading to ranking on page one of Google for their main keyword within a week of launching.
• They achieved the number one worldwide ranking for their keyword.

We figured to just double down on what works already and what validated the idea.

SEO and Content Growth Strategies [09:09]

• Free Tools: Building tools like a free sales script generator attracts users.
• Comparison Articles: Creating content that compares their solution to big tools in the space (e.g., "HubSpot alternatives").
• YouTube Long-Form Content: This is an underrated strategy that builds high intent and trust, with most customers watching at least one video before a call.

YouTube and watching long format content by nature has this high intent from the watcher, but then also creates insane trust into your business already.

Financials and Business Performance [09:52]

• Achieved approximately $10K in revenue for the last month.
• Had around 2,000 total business signups, with a focus on higher-paying customers to ensure lower churn.
• Currently have 38 paying customers, who are high-value businesses.
• They have applied to YC five times and received one interview, but have not yet been selected.
• Their YouTube channel has 600 subscribers.

Pretty much exactly 10K last month.

Tech Stack and Tools [10:33]

• SEO & Research: Ahrefs, AnswerThePublic.
• Automation & Communication: Zapier, Beehive (email automation), Calendly.
• Web Development: Webflow (landing page and CMS), BusinessNumber.com (phone numbers).
• Backend: TypeScript, SWELGit, PostgreSQL (Render/Superbase), Puppeteer, OpenAI API.
• Frontend Hosting: Netlify.
• AI Coding Assistant: Cursor.
• Analytics: Plausible ($29/month).

For all of the AI stuff, we also use things like the brand fetch API.

Cost to Run and Margins [11:28]

• Margins are high, over 90% without ads, and around 80% with ads and freelance work.
• Highest monthly costs include OpenAI API (around $250) and Upwork freelancers (up to $500).

The margins are great. Without ads, it's 90 plus%.

Advice for Aspiring Founders [12:05]

• Charge Early: Don't be afraid to charge; it creates urgency and commitment for both the founder and the customer.
• Go High Ticket: Selling to customers who can afford higher prices makes business operations easier.

Charge early on. Don't be afraid to charge because charging creates urgency and commitment not only from you but also your customer.