Build Your SaaS

In this episode Jon and Justin discuss talk about how you should think about your software product's competition.Why you shouldn’t focus on the competitionIt’s a distraction. The main point by many folks is: “when you focus too much on the competition, it means you’re not focusing enough on your customers.”It causes anxiety.“Last summer, I stopped[reading industry news]. I had just reached the point at which I could feel an unhealthy level of toxicity piling up inside of me. I felt myself getting too involved, too absorbed, and a bit too anxious about what I was missing, and about what I knew or didn't know, but thought I should know. I was checking Twitter too often and reloading sites too often. If someone told me about something I hadn't heard of, I felt like I should have already known about it. Industry news was becoming an addiction.” - Jason FriedIt’s too tempting to copy features. “Copying skips understanding. Understanding is how you grow. You have to understand why something works or why something is how it is. When you copy it, you miss that. You just repurpose the last layer instead of understanding all the layers underneath.” – Jason FriedIt can lead to feature creep. company A is doing this, company B is doing that, so let’s do them all. also, paralyzing indecision and no real thought about why you’d be building a feature.“I wouldn’t advocate spending much time worrying about the competition — you really shouldn’t waste attention worrying about things you can’t control — but if it helps make the point relatable, the best way to beat the competition is to last longer than they do.” – Jason FriedWhy you should focus on the competitionIt’s a way of understanding your customers. You should be aware of why customers are choosing (or not choosing) the competition. It’s more competitive now. I wrote a post about this.  “It's getting more expensive to build SaaS companies and exits are weak.” Mattermark, 2016. “We're not building these basic CRUD apps like we used to be able to. The stuff's too competitive now.” – Rob Walling. "No one wants to admit it, but the old ‘your product must be 10x better than existing solutions’ trope is dead. I think this is one of the most hostile times for startups that we’ve had, really. Products are better, and competition is enormous." – Zach HolmanIt’s a way of revealing opportunities. “Everybody's drilling for oil in the same spot because some other guy found oil there already.” – Nick Quah. What’s everyone else missing? Where’s the untapped well?You’re stealing time, attention, and money from somebody, and it’s not always who you think!(Article) When Uber launched, they stole customers from the taxi industry. When the iPhone launched, Apple took customers from Kodak and the film industry.How to think about the competitionSWOT. What are their strengths? What are their weaknesses? What are their opportunities? What are their threats? Do SWOT on yourself too!User interviews. One of the best ways to do user research is to interview folks who are actively using the competition! What brought them to start using it? How’d they find it? What was going on in their life at that time? Why do they keep using it?When people switch. If people switch away from you to a competitor, that’s a great time to ask questions. "The only two people who can give you real feedback about your product are people who just purchased it and people who just canceled.” – Jason FriedThink about how you can outlast them. What are practices you can put in place that will help you outlast the competition? “Whenever a startup goes out of business, the first thing I get curious about are their costs, not their revenues.” – Jason FriedFigure out how you can make things easier.How can you make your app easier to use than the competition?Look for unmet desires. What are the unmet needs of users using competitors’ products? Search Twitter, support forums, etc for instances of people complaining. What are they complaining about?★ Thanks to our sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Want to podcast in 2019? Transistor is cooking up something special for the new year.Show notes:Val Sopi's new startup: ClaritaskPodnews on Anchor and "podfading"Worrying about the competition is pointlessHow much should a startup worry about the competition?Seriously don’t worry about the competitionHow to think about startup competitionWhy I don’t stress about the competition Does bootstrapping make you worry about the competition?Why reading about your competitors will hurt your business?Why you shouldn’t copy BasecampHow to outlast the competitionCompeting on easyWhen you’re building a product, whose opinion should you listen to?Why many products struggle, but only a few succeed.Who are you stealing from?Book: Creative Selection

We received some product marketing questions from Nirav Mehta: How to get the word out about your SaaS?Should you pursue partnerships?How can you get distribution for your software product?What marketing channels work best?Build anticipation before you launchOne big opportunity many folks miss is building up anticipation before they launch. Examples:Adam Wathan and Steve Schoger shared design tips on Twitter and on their blog for 6 months before they released their book, Refactoring UI.Derick Reimer allowed people to “Claim their username” for Level.App before he launched. So far 5,787 people have registered.Ben Orenstein talked about Tuple.app, his new product, on podcasts for months before they launched. Build a reputation for being helpfulAdam, Steve, Derrick, and Ben also have something else in common: they were consistently helpful to their respective audiences for years before they launched anything.Being helpful now, in forums, on Twitter, in podcasts, on your blog, in your mailing list, at conferences, at meetups, in email, is an investment in your future.It’s an advantage that can’t be easily copied or replicated.Bake SEO into everything you doThe most underrated, and often under-pursued, grow strategy is investing in Search Engine Optimization.“SEO is the biggest growth lever that you have and it's something that you should prioritize." - Ryan Hoover, Product Hunt”Think about it, when people have a desire to solve a problem, what do they do? They Google it! If your product is the answer to people’s question, you want to make sure they can find it on Google. Quick SEO tips: Explore what questions are asking on: Answerthepublic.com.Use a tools like Ahrefs.com on your competitors’ sites! See what keywords people are using to find their site, and what their most popular pages are.Make sure you have Google Search Console set up for your website. They have a new “Performance Report” that will show you what keywords people are using to find your site, and where you could rank better.Focus on what matters on each page:Main title - should feature the focus keywords, preferably at the beginning of the title.Subheader or first paragraph – expanded description, should also feature the focus keywords.Alt text in images – alt text was designed to show text when an image is not loading properly, or if someone has to use a screen reader. This text is read by Google as any other content.Meta description – a short, concise (usually 300 characters or less) description of a webpage, shown in search results.Keep a document on “blog post title ideas.” For example, I can see, through all my research, that “podcast distribution” is a good keyword combination to pursue. So I could write a blog post with the title: “Podcast distribution made easy - 5 steps.”Write these authoritative guide on a topic. Ben Orenstein noticed that there weren’t any good pair programming guides, so he wrote one! http://learntopair.com. These guides typically get shared a lot, which means you’ll get high quality backlinks to your site (which is important for SEO).People will also search for “[competitor name] alternatives.” Those are great keywords to target.The big list of marketing channels:Ads: Facebook Ads, Adwords, LinkedIn ads, etc. Partnerships: finding influencers that have a similar audience to you, and cross-promotingSEO: getting backlinks to your landing page from other sites, and ranking for certain keywordsContent marketing: blogging, infographics, viral videosPlatform marketing: engaging in Facebook Groups, on forums, in comments threadsDirect mail: sending your prospects stickers, postcards, or letters by postEvents: attending tradeshows, conferences, and meetups and handing out business cards (or other swag) with your website addressThings to remember:Marketing doesn't work like a jackpot. You're not going to hit that "one thing" that works and creates an avalanche of sales. Instead of "putting it all on black," it'd be better for you to diversify your marketing investments: you'll get customers from a variety of channels and tacticsMarketing is a lot like physical fitness. Small gains every week give you biggest gains in the long term. It's like hitting the gym once on January 1st and expecting to look like Arnold Schwartnegger. You've got to do something every week to get good results overall.Last: for many of you, marketing is a big, hairy, ugly problem. And what's the best way to deal with a big overwhelming problem? Break it into smaller pieces.★ Thanks to our sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Want to podcast in 2019? Transistor is cooking up something special for the new year.Show notes:SEO for Hackers – my course on search engine optimization. join.megamaker.co/seoSEO for the Rest of Us – a new course by Brendan HuffordMastering SEO – a course by Matt G.Free Keyword Content Planner – Google SheetsYoast – if you’re doing SEO on WordPress, you need this plugin.What do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:

Jon Buda and Justin Jackson make predictions for the tech industry, the podcasting space, and the startup ecosystem.Predictions for 2019There will be a global economic downturn. Companies will be looking for more affordable marketing spend. Brands that don't have a strong relationship with their audience will lose.This could be increase the number of companies who invest in podcasting. Audio is still a "good deal" compared to other communication channels.Related: will we see the big “5” (Squarespace, etc) advertising less?2019 will be the year of non-gaming livestreaming. More programmers, business people, podcasters will be livestreaming. Plus: more audio-livestreaming.Related: Podcasting without editing will become more popular. No intro music. Just recorded live with an outline, and published immediately.Podcasting will grow to 800,000 shows. (Currently ~619,000 in Apple Podcasts)In 2018 Spotify went from 10-25% marketshare of the podcast player market. I think it will grow again to 35%. (Justin admits he was wrong about this tweet).Continued focus on "mindful technology." Very possible that iPhone will have a "dumb phone" mode: only texting, phone calls, and GPS. All other apps will disappear from your homescreen when enabled. Smart speakers will not have a big effect on podcast consumption. I think they will become more popular, but I don’t see people using them to listen to podcasts. (These folks think it will be big, I disagree. Currently 1% of listenership) Apple is going to make a big media move to challenge Netflix and Amazon Prime Video. It will finally break iTunes apart on desktop. Maybe we'll see a standalone desktop Apple Podcasts app?More branded podcasts and production companies. (example)Dynamic content (outside of advertising) will be bigger.More traditional media brands will buy podcast related IP. Podcasts turning into → TV shows. For example: Homecoming on Amazon Video.★ Thanks to our sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Want to podcast in 2019? Transistor is cooking up something special for the new year.Show notes:CleanIn2019.comAtomic Habits - IdentityBen Orenstein interview on Product PeopleFast Company: Dumb phoneSSL for all Transistor users!We used Caddy Server for our SSL implementationWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Alitu.comDarby FreySamori AugustoDave Young (new)Brad from CanadaKevin MarkhamSammy SchuckertBrand ShouterMike WalkerAdam DuVanderDave Giunta (JOOnta)Podcastinsights.com Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

In this episode, we talk about the different types of customers for a SaaS:B to C: selling to consumers. Here, we'd think of products and services like Verizon, iPhone apps, etc...B to Prosumer: selling to prosumers. Prosumers are power users; serious hobbyists. Sometimes, they earn a bit of money from their hobby. Examples: a photographer who shoots a few weddings a year, a painter who sells a few paintings on the side, or a podcaster who has a few supporters on Patreon.B to Aspirational: selling to aspirational business owners. Rob Walling uses Pat Flynn's "Smart Passive Income" audience as an example. Sometimes called "wantrepreneurs," these are folks who are willing to invest money in their business startup. B to very small business: selling to solopreneurs, or teams of 2-3.B to small business: this is selling to regular small businesses. Loosely defined as teams of 10-100.B to enterprise: depending on the industry, "enterprise" might mean any company with more than 250 people. However, "large enterprise" is probably 5,000+.★ Thanks to our sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Want to podcast in 2019? Transistor is cooking up something special for the new year.Show notes:Startups for the Rest of Us: 421Jason Cohen interview on Product People: 98Transistor's revenue numbers are publicMike Vardy's podcastTaylor Jackson's photography podcastJason Resnick's podcastMatt's Bet on the Web show for IonicCards Against Humanity's podcastDrift's podcastProfitWell's podcastPodcast2019.comWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Alitu.comSamori AugustoMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDan EricsonSammy SchuckertDave Giunta (JOOnta)Podcastinsights.com Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

Justin gets interviewed by Harry Duran on the Podcast Junkies show, and answers questions about:Is podcasting really having it's moment now?Is now a good time to invest in the podcasting industry?How is Transistor going to be different than other competitors?Who should be starting podcasts right now?Can anyone be a podcaster?Is podcasting a "mindful technology?"★ Thanks to our two sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Show notes:Podcast JunkiesProduct People (Justin's first show)Ira Glass and Alex Blumberg on Without FailMatt's Bet on the Web show for IonicWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Alitu.comSamori AugustoMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDave Giunta (JOOnta)Podcastinsights.com Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

In this episode Jon talks about why he decided to partner with Justin (even though he'd already built the product).★ Thanks to our two sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.Show notes:New Yorker: The friendship that made Google hugeArticle: Why you need a cofounderCards Against Humanity's 99% percent off saleDuchess Bakeshop Hogwarts CastleHogwarts Castle on RedditWe are on Baremetrics Open StartupsTool: Chartable lets you see podcast chartsConan Needs a FriendWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Alitu.comSamori AugustoMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDave Giunta (JOOnta)Podcastinsights.com Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

How did you split equity in Transistor? How do I start a podcast? How do you say Adam's name?★ Thanks to our sponsor: podcastinsights.comIf you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast.Show notes:Episode 2: How to find a cofounderPlace to buy a startup: Flippa and Empire FlippersJustin’s article: How to make a podcastVideo: Creating a podcast from nothingPodcastinsights.comTool: Chartable lets you see podcast chartsMicrophone: Audio-Technica ATR2100-USBPop filter: Find one that will work with your mic. This one is a good start.Headphones: Sennheiser HD 202 IIEditing software: Garage Band or Screenflow (for Mac) and Audacity (for PC)Cover art: Canva or SnappaWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Leave a comment on Tung.fmOtherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Colin GraySamori AugustoMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDave Giunta (JOOnta)Podcastinsights.com Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

Why do you want to start a podcast?Grow your business: Get more clients – Nate TechNest Real EstateBrand / PR – Drift Seeking WisdomGrow your audience: Matt and Alex with SupercomputerGet ad sponsorships: you'll need a really big audience for this (30,000+ downloads per episode)Patreon: you'll need a fairly large audience (Taylor Jackson has 160,000 YouTube subscribers)Sell your own products / services: in addition to ads, Adam Wathan promotes his course on his podcastConnect with your audience: Taylor Jackson PhotographyIncrease social proof.Identify yourself as an expert.Contribute to a community, or industry, or culture: Ashley Baxter’s Bootstrapping DigestPut your POV out in the world: Rework, Good News PodcastIdeas on how you can use your podcast to reach your goals:Private feed just for your team / employeesQ&A: get users, customers, audience to leave you a voicemail. Answer 1 question per week.Interview your customers: interview 1 customer per week. Ask them about their business, how they’re using your product.Expert tips: if you’re a professional (lawyer, accountant, coach), give your listeners an actionable piece of advice every week. Give them one thing to improve every week.Read your blog posts: already writing a blog post ever week? Just read it “audible” style for your audience.Recycle your best talks / videos.Conferences: give attendees a private feed of all the talks!Share your journey.Show notes:The 8 types of podcast formatsLeave us a question at transistor.fm/voicemail. We will answer those next week during American Thanksgiving show.Create a podcast for your employeesWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Leave a comment on Tung.fmOtherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Colin Gray – Alitu.comSamori AugustoMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDave Giunta (JOOnta) Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

Jon and Justin respond to the new funding options available for bootstrappers, mainly Earnest Capital.The GP, Tyler Tringas, told us what types of companies he's looking to invest in:Organic customer acquisition channelsLow levels of structural churn (ready to stay customers for a long period of time)Founder is a good fitProduct launched and has revenueIn a space that Tyler feels comfortable withThey're looking for a 3x-5x return from their investment; which they'll take from founder earnings. (Read more about that here)Show notes:Underground gangsters cave in Austin, TXArticle: New forms of funding for bootstrappersBuffer buying out investorsDHH on Earnest CapitalIndie VC: companies we invest in grow way fasterDHH tweet on paying meager salariesEarnest CapitalTyler Tringas' introductory blog postYouTube LivestreamIndie.vcTiny Seed FundWhat do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Leave a comment on Tung.fmOtherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmThanks to our Patreon supporters:Samori Augusto - thebicrowd.comMike WalkerBrad (from Canada)Darby FreyKevin MarkhamAdam DuvanderDave Giunta Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

Tyler Tringas recently announced Earnest Capital; a new way for bootstrappers to raise money for their startups. Should Jon and Justin consider this type of funding for Transistor?What do you think?Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Leave a comment on Tung.fmOtherwise, get us on Twitter: @transistorfm or email us: mail@transistor.fmCreate your own podcast at transistor.fmShow notes:Earnest CapitalTyler Tringas' introductory blog postYouTube LivestreamIndie.vcTiny Seed FundThanks to our Patreon supporters:Mike WalkerBrad from CanadaDarby FreyKevin MarkhamAdam DuvanderDave Giunta Thanks to our monthly supporters Rewardful.com Greg Park Mitchell Davis from sixsides.co Marcel Fahle, wearebold.af Bill Condo (@mavrck) Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★