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The SaaS Growth lever than took me from $10k to $60k MRR with no employees
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Recap: Customers 1-50

Previously, we talked about how to easily get our first five customers.

Then we moved on to how to get our first 50 customers.

Up to this point, we’ve focused on things that don’t scale.

What we’ve learned thus far

Along the way, we’ve gotten some customers, our first revenue, and we’ve gathered a ton of information.

Through these conversations, we should know our customer profile pretty well and the words they use, which has driven our messaging.

Our product market fit is coming along, and if we did things right, we’ve spotted the friction along the way, and optimized, with little micro-pivots along the way, as we learn who are customers are and what is and isn’t important to them. We’ve learned the difference between what they think is “cool”, versus what motivates them to put their money where their mouth is.

Your unique marketing approach

While we’re going to continue having a lot of conversations, we’re ready to start thinking about scaling.

The reality is that every app and market is different, as are the strengths of the founder. There’s no predefined path to execute here, rather, if we’ve paid attention along the way, it should be pretty clear what marketing paths make sense to experiment with.

I’m going to leave that conversation for another time.

The most powerful SaaS growth levers

For now, I want to point out the most powerful growth levers at your disposal: affiliates and resellers.

The reason these are so powerful is you can have an army of people selling on your behalf with little to no cost out of your pocket.

You can think of it as having a sales team that gets paid purely on commission, because that’s essentially how it works. For every customer they bring in, they get a cut.

Instead of working for individual customers, we’re looking for individual people to go and get them for us.

We’re transitioning from one-to-one, to one-to-many.

This is scaling at its finest, and by far has the most potential of any marketing effort to be the most cost-effective customer acquisition channel.

In my case, I never actively recruited any affiliates or resellers, but I had more than a dozen people ask to be a reseller and more than that to be an affiliate.

Don’t try to grow up too fast

While outsourcing customer acquisition for your SaaS can be highly effective, and can drive exponential growth for your SaaS, don’t think you can skip the critical step of finding product/market fit.

In the early stages, the most important job of the founder is to be there to navigate those early conversations and find that fit. This can’t be outsourced, so be careful not to get ahead of yourself.

In my case, I grew to ~$8k+ MRR on my own before bringing on resellers.

By the time I sold, my $61k MRR was made up of:

  • 24% direct customers
  • 76% sales via resellers

Summary

With a little upfront work, your business has the potential to scale exponentially with just a few good resellers and/or affiliates.

You can then choose to continue to do sales and marketing yourself or rely on the resellers so you can focus on product and other parts of the business, which is a beautiful thing, for any lean startup, especially a solo founder.


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  1. 1

    Thanks for sharing! How would you recommend to find micro influencers? I am also thinking about reaching out to big companies with the same TA as ours. Their clients would benefit greatly from our product, and we don't mind sharing revenue. What do you think about it, have you done it?

    1. 1

      I am currently working on a tool right now that helps with this exact problem. It helps businesses like yours connect with Micro-Influencers. Currently it's pre-launch so there isn't much functionality but if you are curious you can check it out at: https://micro-influencer.io/

  2. 1

    How would you share commission to people who decide to help reshare and bring leads?

    For example if your Saas has payments setup with Stripe, would you somehow send them X% commission via Stripe when they bring a new customer??

    Or what is the process exactly... am thinking of implementing this in my little business.

    1. 1

      The easiest way is to use a tool like Tapfiliate which is pretty easy to set up and track the referrals for you and you can then pay them out through Paypal or similar.

  3. 1

    We have a partner program on our site and even as a small business we still can end up will all our best leads coming from partners in any given month. There are some downsides though e.g. timewasters who want demos and promise to bring loads of business and then never bring anyone, or bring like 1 person a year. We offer partners free access to our product as part of the partnership and we've even had a few people become partners and it become clear that that was the only real reason and we had to kick them out after 6 months!

    1. 1

      Yes, there can always be tire kickers. In my experience, it was overall a net gain. However, I did consider charging a one time set up fee of a few hundred bucks for resellers I had hesitations about.

      1. 1

        Yeah I wasn't knocking the idea of using resellers, just sharing an issue I experienced in case it would help anyone else setting up something similar. Did you use a dedicated reseller platform?

        1. 1

          Nope, custom scripts that pulled their stripe data into a sheet, performed calculations, and told me how much we each earned. Fancy :)

          1. 1

            I meant more for finding resellers than for tracking and processing sales :)

            1. 1

              Ah, no, they all came to me asking if they could be resellers.

  4. 1

    I have an affiliate program at https://codekidz.ai/partnership that offers a 15% commission (which I think is already quite high). But I don't know where to find influential people and partners. Once you reach out to the Twitter influencers with thousands of followers, be prepared to invest a lot of money.

    1. 1

      15% isn't actually that high. It's reasonable but not high. Many are 30 to 40% these days.

      I've had better luck with micro influencers as opposed to the massive influencers that are getting tons of requests. The best ones are those that are happy to post without an upfront fee, but using affiliate links, so they have more incentive to create a good post.

      1. 1

        Thanks, you gave me some new insights, but I think 30-40% of the affiliate program is too high. These costs will ultimately be passed on to the users, which is not something a good product should do. Also, where can I find these small influencers you mentioned on which platforms?

  5. 1

    It seems like you've provided a detailed overview of your journey in acquiring customers for your SaaS (Software as a Service) business, emphasizing the transition from one-to-one interactions to leveraging affiliates and resellers for scalable growth

  6. 1

    You're crushing it MM 🔥

  7. 1

    It'd be smart to concentrate on getting more leads from people who visit your website and then turning them into customers who actually pay.

    1. 1

      That's always a good thing to do too, but not nearly as powerful as having an army of other people selling for you.

  8. 1

    The most powerful SaaS growth levers: affiliates and resellers. Very insightful point~!

  9. 1

    Would certainly look into resellers more after reading this. Also trying out Aware, been looking for a good tool for linkedin usage for a while now.

  10. 1

    How did you structure your affiliate and reseller programs to incentivize sales without incurring too much cost?

    1. 1

      The resellers and affiliates got a percentage of sales.

      What costs are you referring to?

  11. 1

    Great Post. I just launched a Partner Program for CheckAnyVIN.com but was curious if you had tips on where to find Affiliates quickly.

  12. 1

    thank you,is a good idea to find affiliates and resellers

  13. 1

    It has been instructive to follow your path from the first 50 customers to a better grasp of your market and growth levers.

  14. 1

    Thank you for sharing. Great read

  15. 1

    Thanks for sharing your story. I enjoyed reading all about your journey.

  16. 1

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