Brian, known for 'One Month MVP' and his SaaS Clarityflow, joins Jordan, founder of Rosie, to discuss the challenges of building a SaaS business. They explore the journey to profitability and navigating the complexities of user engagement and conversion funnels. Brian shares insights from his pricing experiments, while both reflect on their first paying customers. They also touch on how AI is empowering non-developers to create software, reshaping the industry landscape and offering fresh solutions to longstanding business hurdles.
The discussion emphasizes the critical challenge of achieving product-market fit in SaaS compared to potentially more sustainable business models like training or educational businesses.
A significant insight on customer engagement reveals the journey from trial users to paying customers as essential for long-term retention and business growth.
Deep dives
The Excitement of Sporting Events
The discussion highlights the excitement surrounding attending major sporting events, such as a visit to the University of Michigan's football stadium. The speakers express enthusiasm about the experience, emphasizing how game day contributes to a sense of community and pride among fans. They also share personal anecdotes from a recent trip to the US Open tennis tournament, noting the unique experience of being able to sit close to top-ranked players and appreciate their skill firsthand. This intimate setting at sporting events enhances the enjoyment, showcasing how proximity to the action alters perspective and appreciation of the sport.
Transitioning Back to School and Work
The conversation shifts focus to the transition of children returning to school, which evokes mixed feelings of relief and nostalgia among parents. One speaker expresses joy about having quiet time at home to work without interruptions, highlighting the newfound productivity that comes with school starting. This season is viewed as a fresh start, akin to a 'business New Year,' offering a chance to refresh goals and energy. The return to routine is portrayed as an opportunity for personal and professional focus amidst the chaos of summer.
Evolving Business Metrics and Customer Engagement
A key insight is shared about the growth of a business called Rosie, revealing a notable increase in signups and the conversion of trial users to paying customers. The speakers reflect on the significance of this milestone, recognizing the importance of customer engagement and retention, which remain critical challenges ahead. They discuss the need to concentrate on understanding customer needs better as they transition further down the sales funnel. This emphasizes the ongoing nature of learning and adapting in business to effectively meet customer demands and ensure long-term retention.
Exploring Business Models Beyond SaaS
The discussion delves into the challenges of succeeding in the SaaS business landscape and the realization that alternative business models might offer more sustainable paths to success. The speakers reflect on their explorations throughout the year, weighing the difficulty of achieving product-market fit in SaaS against the potential rewards of focusing on training or educational businesses. They identify a wave of demand for skills in technology and AI, suggesting that many businesses will require technical builders among their teams as they adopt new tools. This awareness leads them to consider models that combine templates, training, and community, encouraging a shift towards a more attainable and fulfilling entrepreneurial pursuit.
Why makes SaaS more difficult than other business models? Rosie first customers! Brian's pricing experiment update. Training businesses. AI waves. Profitability at $1-2m. College Football. US Open Tennis.