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

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

#52
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, which speaks to how much trust they really place in their "skills".

As a marketer myself, it's not that we don't trust our skills, it's that few things happen in short term. If I'm going to work with you with commisions it's because I have trust in your product in the long run (2+ years, at least).

Otherwise I could spend a year optimizing your site, your funnel, your strategy and you could easily fire me and keep all the strategy, SEO and branding done to your site.

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

#53
I started my current enterprise SAAS company 4 years ago. It took more than a year before we had our first customer (who left us!), 2.5 long years before we raised $350k on the promise of signing a big company. After 2.5 years "without a job" my whole family was pressuring me into just getting a job a tech company. "It was obviously not going to work if we hadn't succeeded by now."

But I knew we had something special in the tech.

That little bit of cash helped us hire a great head of sales with experience building companies like ours from the ground up. We couldn't afford to pay him even an order of magnitude less than what he would normally charge, but after seeing the product he turned down dozens (!) of offers from VC darling startups to work with us, for free, on the basis that we would pay him when the sales worked. For most of the next year and a half, we had steady linear growth, but it was enough to attract funding.

Now we've built a great team of 20 people and are on track to way exceed our numbers for this quarter. We still have a lot of work ahead of us.

If you know you have something special, then fight for it. It takes a lot longer than you expect.

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

#54
I've seen many founders slowly grind out their spirit in a bad market. So the first thing you need to clarify is:

- do your customers know that they have a problem

- is the problem painful enough that people are happy to pay for a solution

- do your customers have money?

I've been running a SaaS for professional freelance photographers for 10+ years now. Customers going bankrupt really drives up my churn rate. It's a frustrating market. I keep the company around because it's profitable, but I would never want to invest additional work in that product.

I also once built a sound plugin to add 3D audio support to existing movie production software. Pretty much no chargebacks and no returns at a much higher price. Here, marketing was easy because a good prospect would buy 20 licenses in bulk for the entire studio. We got featured on magazines, had interviews with famous actors, musicians, and directors. In short, everyone was feeling great about working on it.

I've also released some games that gained no traction even when I made them completely free with no ads. That was pretty frustrating.

What I'm saying is choosing the right market can make the difference between you feeling great and making easy progress, and wasting lots of effort only to feel frustrated later on. Make sure you choose a market that makes you happy.

There is a reason why nobody is making X optimized for broke cynics.

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

#56
post #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!

It depends on the market.

I built an app that helps people have a better gaming experience and my domain is basically just the best Google Trends keywords concatenated. I immediately had 500 monthly unique visitors just from Google organic search.

But launching a bikini brand, for example, took lots of advertisement and social media presence and sales dropped as soon as we stopped paying everyone for ads.

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

#57
Do you want to keep working on it?

Is there something else you want to do?

If you're still motivated and want to do it, keep at it. I don't think timelines for success (depending on how you measure that) are fixed.

If you're not motivated / want to move on, you probably should.

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

#58

The most solid SaaS I've been a part of was not a fast start. It was almost 20 years from the first customer until the acquisition/exit. It was bootstrapped, and added about one employee per year. It maxed out at 2 developers. But it grew to around $15M ARR in that time. That might not sound like a huge number compared to the best known startups, and VCs would have no interest in such a company, but it does prove tha…

> $15M ARR > That might not sound like a huge number

As a founder, I'd be more than happy to work on it for my entire life

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

#59
There are many things that might influence the result and therefore your decision.

I once worked for a product in the SaaS business and what helped us is understanding "where are our customers". So, where are _your_ customers? How do they come to your product, how do they discover your product? After having this answer we focused on improving that conversion rate (for us it was all about being first on google and having a high-converting landing page, but in your case forums might be a better place to look at. It all depends on the target customer)

Also, one issue I've often encountered is that knowing the customer and selling to the customer might be very different things. Did you only sell online? One great piece of advice is try to sell the product IRL and record the audio. After many failed and successfull attempts you'll have recordings of _what works_ and what doesn't work for the kind of customer. That information will be useful to convey the benefits into your landing page / homepage.

Back to your question: How much growth should you expect? It is a generic question. How many people are impacted by your product? How many have that specific itch to be scratched? How fast can you get to them? How good is your product at scratching the itch? The (partial) sum of these questions might lead to the answer. If you have many people impacted by your product, if the product scratch a big itch and you can reach all the people at the same time, chances are you're going to grow fast.

If you grow slow, is it bad? It might be bad if you're asking 5$/month for an extra. If it is 100$/month maybe a slow growth might make sense.

In the end, if I were in your shoes, I'll wait a year to decide if it's time to give up, but at the same time I'll set some monthly checks to see how growth is going, what are the feedbacks and how the community is reacting and test each month a different way to market the product. A good book on this is "Traction" by Gabriel Weinberg

PS I also run a side business creating cosmetic products (not saas) and my growth has been relatively slow. The product (in my case) fixes a big itche and had no competitors. Reason for that is that achieving a stable efficient result is quite hard, but we somehow made it (bootrapped obviously). In our case slow growth was a good thing because it allowed us to fix the issues in the product before being too much known in the public.

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

#60
post #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.

> * 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".

Your product is unproven. How do I know you can convert and retain a qualified audience?

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