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Ask HN: When is it time to give up on a side project SaaS?

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21–30 of 87 posts

Re: Ask HN: When is it time to give up on a side project SaaS?

#21

I've been running various online businesses, including SaaS, for eight years. There is no general answer to your question. Are those 8 customers paying you hundreds of dollars each per month, or tens of dollars? What's the reason you haven't gotten more? Have you lost motivation to work in this space / on that project? I was in a similar situation to you a few years ago. I had started a clone of patio11's appointment…

What do you think went wrong with fman.io? E.g. Total Commander is a one guy shop and he is doing fine for 20+ years now - so seems like people pay money for a good file manager. Does fman.io miss some features or is it wrong marketing?

Re: Ask HN: When is it time to give up on a side project SaaS?

#22
I think it takes a very long time to grow a SaaS. Think multiple years. I started 4.5 years ago and it took nearly 4 years until I felt fully comfortable. Slow growth is to be expected. My growth curve, in fact, isn't a curve at all: it's pretty much a straight line if you plot paying customers. It looks better for MRR (monthly recurring revenue, your main metric), because I've been working on raising ARPU (average revenue per user).

The "long slow saas ramp of death" is real. Google it.

You can supposedly grow faster if you do marketing well. But from what you wrote I'd guess that you do not do marketing well. My adventures with marketing came down to the following conclusions:

* Spending money on ads is basically burning money and does not work for me. (tried Google Ads, LinkedIn, Facebook ultra-targeted ads, Quora). This became painfully obvious after I implemented my own conversion tracking, because I did not trust their metrics/analytics.

* You will find plenty of marketing experts all around you, but none of them will work for a commission, which speaks to how much trust they really place in their "skills".

* Since I am a solo founder, I eventually decided that I'm OK with my organic growth and I'd rather concentrate on making the product better. This helps in building bigger product value, improves customer retention, allows me to raise the ARPU, and in general works great. I just don't get the marketing-pumped stream of new customers. But I'm OK with that, especially at this point.

That said, I think I would expect more than 8 paying customers after a year. My ramp-up in the first year was slow (the product didn't have a lot of value back then), but it was quicker. I just checked, and I had 25 paying customers after one year from the first one.

Re: Ask HN: When is it time to give up on a side project SaaS?

#23
post #22

I think it takes a very long time to grow a SaaS. Think multiple years. I started 4.5 years ago and it took nearly 4 years until I felt fully comfortable. Slow growth is to be expected. My growth curve, in fact, isn't a curve at all: it's pretty much a straight line if you plot paying customers. It looks better for MRR (monthly recurring revenue, your main metric), because I've been working on raising ARPU (average r…

> You will find plenty of marketing experts all around you, but none of them will work for a commission

You won't find many developers who work on a commission either.

Re: Ask HN: When is it time to give up on a side project SaaS?

#24
With my Angel Investor hat on (doing it 6 years, multiple deals, few exits):

- Very difficult to be successful if this is your side project, if you cant take the leap because of funding then try to raise money, your in a better position than most because you have a product and traction (although without knowing the domain hard to say if someone will be interested).

- If your thinking about giving up, perhaps your not convinced enough to go full time on it (fair enough) then look to potential sell it - OR - merge it with a complimentary offering. There are SO many SaaS products now (just look at ProductHunt) but very few of them I would say are viable businesses on their own right but put together that could be a different story.

Re: Ask HN: When is it time to give up on a side project SaaS?

#27

I'm not sure where the urge comes from to have your own business. I dream of that sometimes as well. But to be honest, i still focus more on my carrier and it looks good. I don't think i would make more money as a business owner. It still sounds great to have your own business. But what is your motivation? Did you create that specific SaaS because you wanted to have a SaaS Product or because you like your SaaS Produc…

A bit off topic but as a follow up response, personally I don't think most people go in expecting to be the next Zuckerberg, although it might defintely be something they hope for. If anything most people go in knowing that the expected outcome is failure but they do it anyways for whatever reason. It takes a certain type to really go for it I think, nothing wrong with sticking with a good career but some people aren't happy being a career man for the rest of their life and would rather face expected failure and take that shot

Re: Ask HN: When is it time to give up on a side project SaaS?

#28
The biggest myth of SaaS (and startups in general) is "if you build it, they will come".

You win your first one hundred customers one at a time, through massively high touch sales.

Once you've hit a hundred, you might start seeing some organic growth via word-of-mouth - maybe. But you gotta put in the sales effort to get there.

If you're an engineer with no sales experience this can be a painful lesson to learn!

Re: Ask HN: When is it time to give up on a side project SaaS?

#29

I'm not sure where the urge comes from to have your own business. I dream of that sometimes as well. But to be honest, i still focus more on my carrier and it looks good. I don't think i would make more money as a business owner. It still sounds great to have your own business. But what is your motivation? Did you create that specific SaaS because you wanted to have a SaaS Product or because you like your SaaS Produc…

If you only ever work for other people there is a natural cap on your overall earning potential. This cap is lifted if you start your own businesses.

Starting businesses is no guarantee that you'll see that benefit of course. Chances are you'll earn less running your own business than you would if you worked for other people instead. But there's a small chance that you'll do a LOT better.

Re: Ask HN: When is it time to give up on a side project SaaS?

#30

I hate to break it to you, but most startups take 7 - 10 years to reach their stride. Your choice is to either slog this one, or use the experience and pivot. BaseCamp - used Ruby on Rails consulting to promote and finance it Digital Ocean - rode pre-AWS hosting craze MailChimp - founders worked full-time until enough revenue, rode moderately-early email marketing craze Are you riding a craze, and/or funded from side…

DigitalOcean was founded 5 years after AWS launched. Were you thinking of someone else?
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