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

Key Concepts

• Validation before building: Testing the market demand for a product before investing significant time and resources into development.
• Deposit framework: Securing a refundable deposit from potential customers to gauge interest and commitment.
• Fake landing page: A simple website with a demo (often faked) to test market interest and gather leads.
• SEO for validation: Using search engine optimization to attract potential customers searching for solutions.
• High-ticket sales: Focusing on selling a product or service at a premium price point.
• Inbound marketing: Attracting customers through content creation and SEO.
• AI-assisted development: Using AI tools to speed up the coding process.

Validation Strategy: Getting Paid Before Building

Joseph and Teimo, the founders of Setter AI, were burned out from previous experiences of building products without validation. They developed a strategy to get paid before building anything. They made $500 before writing a single line of code.

Step-by-Step Validation Playbook

1. Have a Job: Joseph and Teimo suggest that having a job provides valuable insights into business processes and pain points, which can lead to better B2B product ideas.
2. Set up a Landing Page: Create a simple landing page with a clear value proposition and a fake demo.
   • Use a warm domain (an existing domain with some SEO authority).
   • Focus on a specific keyword with search volume and low difficulty (identified using tools like Ahrefs).
   • Include a call to action, such as booking a demo.
   • Ensure the landing page is indexed quickly using Google Search Console.
3. Set up a Calendly Link: Allow potential customers to book a call to speak with you directly. This builds trust and allows you to understand their needs.
4. The Deposit Framework: Offer a 100% refundable deposit to secure commitment without requiring immediate payment for a finished product.
   • Example: A $500 deposit grants early access to the product upon launch.
   • Create urgency by mentioning limited spots in the initial launch.
   • Go high ticket to ensure serious buyers.
5. Give it Time to Incubate: Allow time for the landing page to rank in search results and attract potential customers.

Example: Setter AI's Initial Landing Page

• H1 Keyword: "Cold call automation" (chosen based on search volume and low difficulty in Ahrefs).
• Demo: A fake AI caller demo generated using 11 Labs.
• Call to Action: A Calendly link to book a demo call.

Validation Metric

• The key validation metric is when buyers swipe their credit card. Setter AI considered their idea validated when they received their first $500 payment before the product was built.

Growth Strategy: Inbound Marketing

Setter AI focused on inbound marketing to scale their business.

Key Strategies

1. Free Tools: Creating free tools that people can search for, such as a free sales script generator.
2. Comparison Articles: Writing blog articles that compare their product to other popular tools in the market (e.g., "HubSpot alternatives").
3. YouTube Long Format: Creating long-form YouTube videos to build trust and attract high-intent customers.
   • YouTube is the second largest search engine after Google.

Business Metrics and Tech Stack

Financials

• Revenue: $10,000 MRR (as of the recording).
• Total Signups: 2,000 businesses.
• Paying Customers: 38 (focused on high-value businesses with lower churn).
• Margins: 90%+ without ads, 80%+ with ads and freelancers.

Tech Stack

• SEO: Ahrefs
• YouTube Ideas: AnswerThePublic
• Automation: Zapier
• Email Automation: Beehive
• Scheduling: Calendly
• Landing Page/CMS: Webflow
• Phone Numbers: YourBusinessNumber.com
• Backend: TypeScript, SvelteKit
• Database: PostgreSQL (Render and Supabase, $150/month)
• Browser Automation: Puppeteer
• AI: OpenAI
• API: Brand Fetch API
• Analytics: Plausible ($29/month)
• Hosting: Netlify
• AI-Assisted Coding: Cursor

Costs

• OpenAI API: $250/month
• Upwork Freelancers: Up to $500/month

Advice for Aspiring Founders

• Charge Early On: Charging creates urgency and commitment from both the founder and the customer.
• Go High Ticket: Selling to rich people makes your life easier.

Conclusion

Joseph and Teimo's story highlights the importance of validating a business idea before investing significant resources into building it. Their deposit framework and focus on inbound marketing provide a practical roadmap for aspiring founders. By prioritizing validation and focusing on high-value customers, they were able to build a successful B2B SaaS business with impressive margins.