Build Your SaaS

How much does it cost to run a SaaS in 2018? We take a look at our bootstrap expenses.Every business accrues monthly expenses. The danger? Business owners can get in the habit of spending money, believing that "you gotta spend money to make money."Transistor's expensesStart up:Logo and branding: $2,500 Stripe Atlas: $500Legal: $366.45  Monthly expenses:Editing: $320 / monthAWS: $300 / monthMedia: $60 / monthYearly expenses:Domain: $100 / yearIncorporation: $200 / yearAccounting: $2k / yearWhat 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:Patio11's reply to Justin's tweet: "It is far, far, far easier to create something that will increase the revenue of your business by $200 a month than it is to squeeze $200 out of the expenses."Our branding designer is Dylan Wells.Thang PhamThanks to our Patreon supporters:Brad 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 ★

If you used computers in the 80s and 90s you're going to love this episode.Apple IIe in the school computer labThe original Macintosh"I wanted an Amiga so bad!"The BBS scene: Wildcat, Roboboard/FX, being a SySopCompuserve and AOLTandy 1000, 386, 486, building your own PentiumFave games: Commander Keen, King’s Quest, Wolfenstein, Doom, Duke Nukem, Raptor, Apogee GamesOur first websites: high school swim team website, snowboarding website (with a guestbook)Our first computer businessesIt's a fun one. ;)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:PC Magazine: the forgotten world of BBS door games Jon’s first computer: CompuaddJustin posted this on a usenet group in 1994: Absolute Future BBS!Justin’s first web company: Mediahead ProductionsJon’s first web company: Creatively AwareJon’s TV recommendation: Halt and Catch Fire (NY Times review)Thanks to our Patreon supporters: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 ★

Here we are at episode 30! Just found this old 2012 interview with the founder of MailChimp, before they became a $4.2 billion company. This quotes is awesome:Back in 2001, we had multiple customers who needed help sending their email newsletters. They were using really big, expensive, bloated software. We had some “scrap code” lying around, so we modified the code and turned it into an email newsletter app for them. We opened it up to the public, set up some Google Adwords, and basically forgot about it. Then, in 2005, we noticed it was a better business than our web-dev agency so we decided to take all of 2006 to wind down the agency business and beef up MailChimp’s features. We officially hit the “reset button” in 2007 and became a product company.More recently, MailChimp was in Forbes:Ben Chestnut and his cofounder, Dan Kurzius, have both profited richly from their patience. With $600 million in revenue, Mailchimp is in the black and has more than doubled its estimated valuation to $4.2 billion in the last two years, giving Chestnut, 44, and Kurzius, 46, its sole owners, stakes worth $2.1 billion each.Even more interesting for us:Mailchimp, launched in 2001 and remained a side project for several years, earning a few thousand dollars a month. Then in 2007, when it hit 10,000 users, the two decided to commit full-time. This was the part that surprised me: MailChimp was a side-project for 6 years (earning just a few thousand to start).Especially interesting in light of this DHH quote I shared in a previous episode:If it takes five years to get to the point where the business can pay two salaries, it's possible that the business isn't destined for that long-term.Bootstrappers need to be more patient! (And maybe keep their day job)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:MailChimp in Forbes MagazineBill Irwin’s tweetAn interview with Ben ChestnutWe can still do a lot to slow climate change. DHH: why is We Work promoting burnout?ProfitWell EngageGood News PodcastThanks to our Patreon supporters:Darby Frey – LeadHonestly.com Kevin 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 ★

After one failed attempt, we're back with a new episode. Sorry it's late!"We, as the customer, are paying people who make apps so that their good work continues."Responses from last week's episode: "What should our one main metric be for our SaaS?"Adam: “Don’t focus on MRR. That’s a cop out. Focus on increasing downloads.”Daniel: “Justin should get out and sell like crazy.”Colin and others said: “Re-examine your pricing.”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:Justin starts his own Patreon: "I want to keep writing and podcasting honestly no matter what."MxPx's KickstarterCaddyServer – “Caddy is the HTTP/2 web server with automatic HTTPS.”Please review us on iTunes – it helps other folks find the show!Thanks to our Patreon supporters:Kevin 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 ★

The podcast discusses the importance of tracking one metric that matters the most in a business, focusing on monthly recurring revenue (MRR) as the main metric for a SaaS business, and the process of preparing and training for a physical endurance event.

Jon and Justin are back from Portland and the XOXO festival.In the last few weeks we've had a chance to interact with many of our customers in-person:Nate Smoyer – "I’ve been using the podcast as a prospecting tool. Signed one dreams client two weeks ago. Interviewed with one yesterday. Got invited to lead a panel and live podcast for an industry event."Kyle Marshall – Kyle's creating multiple shows for MediaLab in Calgary.Matt Cassinelli and Alex Cox have a new podcast called Supercomputer.Jaime Macías has a great show called Open Tabs.How big is the podcast market?How many podcasts are there? Over 550,000 shows on iTunes and over 18.5 million episodes.64% of the US population is familiar with the term “podcasting” – up from 60% in 2017 (Infinite Dial 18)44% (124 million) of the US population has listened to a podcast – up from 40% in 2017 (Infinite Dial 18)26% (73 million) listen to podcasts at least every month – up from 24% in 2017 (Infinite Dial 18)17% (48 million) listen to podcasts weekly – up from 15% in 2017We recorded this episode liveWatch on TwitchWatch on YouTubeWatch on PeriscopeWhat 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:Thanks to Kevin Markham for being our first Patreon supporter! Also thanks to Adam Duvander and Dan Weaver.Back from XOXO 2018Justin's bootstrapping articlesTwitter poll: What are most podcasts doing wrong?Seth Godin's podcast Akimbo"Branded podcasts are ads people actually want to listen to" - Fast CompanyPlease review us in iTunes – it helps other folks find the show! 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 ★

What does "bootstrapping" mean really?For most folks, bootstrapping means self-funding your business from revenues. It means not taking Venture Capital, not taking Angel funding. It's a little bit of a religion and like so many religions different people have different definitions of what it takes to "fit in." Some people say you can't even take money from friends and family. If you take any outside money, you're no longer a part of the bootstrappers club.We recorded this episode liveWatch on TwitchWatch on YouTubeWatch on PeriscopeWhat 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:Thanks Tyler Tringas!Article: Bootstrapper's Paradox (on Indie Hackers)Getting Real by 37signalsTool: Forecast your MRR revenueNatalie Nagele's tweetJoel Gascoigne's tweetWatch our live Twitch recording (or watch on YouTube)Please review us in iTunes – it helps other folks find the show! 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 ★

Nick Quah shared this in his recent newsletter, commenting about podcasts:[I have] this feeling that everybody’s drilling for oil in the same spot because some other guy found oil there already.Nick thinks podcasters have two options:Build something that does the same thing for the same audience, but do it better. If this is the case, he says, “you better bring it.”Or, “identify and pursue a pocket of pent-up demand that has yet to be unleashed.”Note: apologies about Justin's audio in this episode! We'll fix that for next time.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.fm Show notes:Why many products struggle, and only a few succeedClubhouse.io – Jon's new project management software for Cards Against Humanity.Perennial Seller by Ryan HolidayAlitu – edit your podcast in the browserPodcast Royale – Adam Clark's podcast production companyAuphonic – automated audio post-productionProfitWell – SaaS metricsStripe's built-in SaaS metricsWatch our live Twitch recording (or watch on YouTube)Please review us in iTunes – it helps other folks find the show! 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 ★

SaaS conversation rate cheatsheet:Credit card upfront:Visitor to trial: 0.75% - 1%Trial to paid: 40% - 60%No credit card upfront:Visitor to trial: 5%+Trial to paid: 8% - 20%Transistor's conversion rates since launch:Total traffic since launch: 40,162 unique pageviews, 11,614 visitorsTotal new trials since launch: 32 (out of 49 active trials total)Conversion %(visitor to trial): 0.3% (should be 0.75% - 1%)Conversion %(trial to paid): 8.9% - 16.7% (should be 40% - 60%)July was 17.9%June was 29.6%May was 48.7%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.fm Show notes:BaremetricsChartmogulProfitWellStripe Billing - “go to Stripe, and then billing menu”Marco's tweet - donation support for podcasts in OvercastPlease review us in iTunes – it helps other folks find the show! 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 ★

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.fm Show notes:Cards Against HumanityLaracon Chicago (photos here)Photos from Transistor's launch weekThe new Transistor websiteJon's new signup pageWe were #1 on Product Hunt!★ Please review us in iTunes – it helps other folks find the show! 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 ★