Unfair SaaS Advantages

It's overwhelming seeing new products launched every day. Scrolling Product Hunt and Indie Hackers feels like drinking from a fire hose.

Starting something is easier than ever. But getting traction is more challenging than ever.

Every time I find an idea that looks promising, I see at least one or two competitors crushing it.

I need a way to think about what ideas are worth pursuing and what ideas I should pass on.

Thankfully, there's some wisdom out there on the topic.

I recently watched this video by Rob Walling about four unfair advantages for SaaS growth.

Rob said he wouldn't start another SaaS without having at least one of these advantages.

To summarize, here are the four unfair advantages that can't be easily bought or copied.

1. Being early in a growing market

Josh Pigford was early in a growing market with Baremetrics by offering one-click metrics to Stripe. He was able to ride the Stripe wave.

Once you find an open market, there will be competitors at your heels. Do you have the chops and resources to outpace your competitors?

Rate your advantage from 1-10.

2. Who you know (your network)

Noah Kagen was able to grow AppSumo quickly by leveraging his network. Noah is great at networking and sales. And, he was able to use his previous experience to get in front of the right people.

Who is in your network that would be able to help you grow?

To me, this is one the reasons to raise money or partner up. If you raise from a top VC, you instantly get a network. You'll get intros into top tech companies (some of which are in their portfolio).

Having top tech companies using your product influences other companies.

Rate your advantage from 1-10.

3. Who knows you (your audience)

Rob was able to leverage his audience and network to get some early customers for Drip.

Laura Roeder leveraged her experience selling social media info and coaching to build Edgar.

Again, this would be another reason to partner up. Who do you know who already has influence with the market you are trying to reach?

Who already trusts you about a particular topic? Do you have an audience you can reach?

Rate your advantage from 1-10.

4. Growth expertise / untapped growth channels

Is there a growth hack you can exploit around the product you're building?

Some products grew by building viral loops. For example, tools like Calendly and Intercom embed on other sites. These widgets can help with distribution.

Maybe you're really good at SEO, like Ruben Gomez. There might be a channel that you are able to use before your competitors.

Rate your advantage from 1-10.

Rob also lists some things that are not unfair advantages. These "strategies" can be bought or copied.

• Great design/UX (table stakes)
• Technical or design skills (can be bought)
• Raising Money (access to capital is everywhere)
• An uncopyable idea (no examples)
• Domain expertise (can be bought — still need network or audience)
• Passion/interest/focus (table stakes)
• Price (can be copied)

Running through this exercise helps me focus on what I can control.

It's unlikely I will be first to a market. Entire organizations are looking for emerging markets every day. That doesn't mean I won't keep my eye open to new markets, but that won't be my focus moving on.

Using unfair advantages is just one way to think through ideas. Just because you don't have any unfair advantages doesn't mean you shouldn't build a SaaS. But I think using this matrix helps you understand your risks.

Here's a Notion doc you can duplicate to help you evaluate ideas.