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How SaaS startup guys get first 100 customers first, make fkn $500k ARR fast?

11•nandakishor_ml•1h ago
I am running a small AI company that has been building an offline security audit app, simply a fine-tuned small language model powering an Electron app that can audit GitHub and local code repos for security stuff. I always see these LinkedIn or X guys making $500k ARR or $1m ARR within months; how the fkk do they get that many customers without spending on ads? I can't even get 5 customers; damn it, I do suck at sales

Comments

toomuchtodo•1h ago
How do you know they’re not lying? Words are free.
nandakishor_ml•1h ago
thats true, but many are genuine btw
nandakishor_ml•1h ago
Is it because I live in a remote place in India and don't have connections to SF companies, like they have companies in the backyard that raised 100 million and can easily make money? This stuff has been bothering me for years!! What am I missing?
bix6•41m ago
that’s certainly part of it. Your network access matters.
nandakishor_ml•32m ago
but some people dont have office make shit ton of money from ai slop saas? genuinely frustrated by all the effort I put and no outcome
alchemism•23m ago
The thing about gold rushes, and market manias, is that the outcomes are irrational.
bix6•6m ago
Did you build what you want or what your customers need?
tmpz22•51m ago
They cannibalize their social group. For example, they will make a lot of immediate small deals with other people in their cohort, incubator, or investor circle, and then use these deals to get to their next round of investment. Functionally those early sales are just there for signal.

That or they just lie on socials.

tmpz22•47m ago
Further, if you "cheat" your first tranche of sales you're potentially burying a valuable negative feedback loop for your product and sales development. The real hurdle, afaik, is mid-market and enterprise sales which is a big jump from getting your buddy to sign a small one year contract.
nandakishor_ml•25m ago
So going for an incubator is a good approach as I do have functioning product
moezd•51m ago
To my estimation, you are in B2B, competing with the likes of Wiz. Those with $500k ARR are usually "ad forwarding" or "networking" companies. Think about how you distribute your software, that's probably more important than your current features.
respectattentio•49m ago
How much you want? $1M? $10M?

I could easily give you that title. Or maybe you can even do that yourself.

Lots of new companies are either faked, or amplified.

Example: If I made a sale of $100 this hour, it can become $864K ARR, with amplification (100 x 24 x 30 x 12).

What to do? Focus on your job and forget everybody else. Don't ever judge progress by revenue alone. A low revenue company who invents something in energy could be worth all companies exist today. But you never hear about it, because it is the real stuff.

nandakishor_ml•29m ago
Its fking frustrating and exhausting when you spend 8 months to build something genuinely good and not another AI wrapper and can't get money out of it and teach ai to survive. It sucks man
namanyayg•47m ago
You need to set up a methodical go-to-market process.

You can automate some of it, but it's good to start manually and learn the ropes first.

You need to understand who your ideal customer is and what channels are they on.

Linkedin is a common one for b2b sales.

If you make 200 connections on linkedin every week and send them a message, some % of that will convert to meetings and sales (the exact % depends on your audience, message, and how urgent the pain you're solving is)

It is extremely hard at start, especially for engineer types (like myself)

Fortunately, it's a skill like any other that can be learned.

Read this article for more info https://x.com/namanyayg/status/2097783972302557668?s=46

bix6•44m ago
Please don’t send me messages on LinkedIn. The spam is unbearable.
prettyblocks•43m ago
As someone who gets a ton of these inbounds every day, I report every single one of them as spam.
nandakishor_ml•34m ago
I teach AI and have around 18k Instagram followers and about 9k on LinkedIn. Do I need to connect with Instagram influencers for a collab? Is it a good way?, just curious. Btw linkedin cold message gives conversion?
j45•14m ago
Appreciate the post.

Want to clarify that lazy and ai spamming on LinkedIn is lame, especially for non-tech sales people selling technology.

Also, b2b sales can be foreign to most people - when i've done b2b sales on linkedin it's mostly about just building a relationship. The 5% of the market that is ready to buy will always self identify if they are looking for help.

I'm saying this as someone who has ba background in technology and helping companies purchase software.

There are better ways to use LinkedIn to earn interest and attention of those small percentages that move forward.

Knowing your stuff and how to apply it and not confusing talking for doing is critical.

Influencers who sell courses on topcs they are new to themselves might think introducing people to topics is a cashflow stream, but most will move on and it will be a leaky bucket.

kaydub•46m ago
You get sales first. Then you build the thing.
nandakishor_ml•24m ago
But you do need a product for sales aint it
SpicyLemonZest•13m ago
Kinda? One of the biggest advantages of being small is that, when someone asks where they can find suchandsuch feature, you can build it and point them to it in the same time it would take a larger company to reply “yeah that’s on our roadmap”. You’ve gotta leverage that to compete.
nzlend•8m ago
Recommend the Mom Test as good place to start on how you can make sales before having a product (and figuring out if your product is something people actually want):

https://inkubator.si/wp-content/uploads/2020/05/The-Mom-Test...

Nevin1901•30m ago
They have an ICP, a no-brainer offer, and they reach out to hundreds of people per day. They also test multiple offers. That's literally it.

Most people can't get customers because they don't do enough targeted consistent volume over one channel.

For example, email requires minimum ~300 targeted sends per day to see any sort of replies. Anything less and you're guessing.

The people running ads spend thousands per month before they have a winning angle, and even then target relatively modest ROAS.

People who make content make it with little views for months or years before finding something that works.

All of this takes time, and more volume than you could imagine. Take however many outreaches you think you should be doing per day, and 10-100x it. That's the real number.

And anyone who tells you "all cold outreach is spam, don't send it!" doesn't understand the game. Most people who view your content/outreach won't buy or find it interesting. The whole point of outreach is to find the 1% who do.

So TLDR: Do more volume and test more offers. There is no shortcut. The people who are winning mostly do more volume than you do.

nandakishor_ml•27m ago
but sending 300 ish emails make all of my email outbound to spam right!!
j45•17m ago
Just because someone says somethign on the internet doesn't mean it's true. THere is no real get rich scheme. Someone might have 10-15 years of experience and know how something is priced in an inefficient market and know how to capitalize on it (they understand how people buy).

If you do not have funding, you probably need to set aside most startup advice.

The resources and time you have available are entirely different.

Spending on ads can be a waste of time if you don't know know to retain the customers you keep.

Google one phrase: Founder-led sales.

Founder-led sales is what must be done before having delusions of prodcut-led growth. I'm not saying it's not possible, it's just a question of whether you notice how many new things you're trying to learn to do at once.

Most people will make their life much harder by picking a startup in an industry that they don't know, trying to solve a problem they've never had nor know the depths of. It can be a subtle form of self-sabotage.

Being problem focused (problems of an identifiable company in the market that says yes to solving a probelm).

You must avoid the disease of building and selling an idea. Solving a problem that's verified is something else.

Back to founder led sales, this means, you, and you alone, must learn the needs from the market, and how to sell it, and get it going.

The first 100 customers is up to you. Do you know how to sell small, medium, or large customers?

Growth is about building an acquisition (marketing and sales system) that can distribute (product) something that can gain and retain customers from the market.

lelanthran•5m ago
> If you make 200 connections on linkedin every week and send them a message, some % of that will convert to meetings and sales (the exact % depends on your audience, message, and how urgent the pain you're solving is)

Doesn't work. Everyone is doing this, your target is getting dozens of messages per day, or 100s if their profile shows them to be a potential decision-maker for purchases.

Maybe, n some rare case, someone in some business hits a pain point that day, and decides there and then that they need a replacement product, and your message gets to them within the next few days, then sure.

But, unlikely.

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