#6 is the biggest challenge for me. Talking to people, much less sales, is not something I am looking forward to. This is a great topic for future videos.
I’ve talked about this on my podcast a few times. Check out this episode where I dig in with an introvert developer who has learned how to do sales: www.startupsfortherestofus.com/episodes/episode-696-the-truth-about-product-market-fit-doing-sales-as-an-introvert-with-ruben-gamez
Interesting how two-sided marketplaces are so compelling. Many of the ideas I come up with and get excited about are two-sided. I think it is the perception that the business is easy to run since you don't have to be an expert in any domain, you are just matching domain experts with end users. What has stopped me from fully executing any of these is exactly what Rob mentioned. Starting out you have a "what came first, chicken or egg" problem. It's hard to sign up one side of the market without having signed up the other. Even with a huge marketing budget, aligning both sides so that both get equal value without any churn is a real challenge.
It's interesting that there's always screenshots with code in the thumbnail and the videos tell you (and sadly it's true) that marketing and sales are way more important than the code.
1. Building a Solution in search of a Problem 2. Priced Incorrectly. 3. Relying on Luck (going viral) 4. Selling to Consumers (B2C) 5. Misunderstanding Freemium 6. Avoiding talking to Prospects The Biz model that doesn’t work: A Two Sided Marketplace
Hmmm....I'm working on a B2C software idea that could be used by individuals looking for a side hustle which they could provide for multiple clients at the same time. Allowing those frustrated that there is not enough hours in a day to increase their income. My software would allow them to work smarter not harder supporting multiple clients using my automation which could send an sms text when it has completed from a client site. I'm still in the build out phase but dreading the marketing part but I'm working on some ideas.
I have an idea for a problem in the accounting space, I've validated it and seen good signs (prospects say: "I've used software X for 15+ years but now I'm looking alternatives because I don't want to move to their monthly subscription model"). I'm a developer so I'm not sure I'm the right person to be building for this customer base, talking to these customers doesnt necessarily excite me, should I get a cofounder or just abandon the idea altogether?
At some point, you’ll need to talk to customers. I’d suggest building that skill set. To get started you might read the book Deploy Empathy- deployempathy.com/
Thank you! I just recently thought about B2B vs B2C SaaS businesses and came to the same conclusion. I have a small B2C SaaS app and the churn is terrible there. But it seems that it's harder to start a B2B SaaS.
Rob, regarding your rejection of B2C: I'd be curious to hear you address the B2Prosumer type of SaaS. This category targets a combination of professionals but mostly highly motivated hobbyists, many of whom already spend substantial amounts on their hobby.
Thanks for this! I struggle that I don't have access to networks that my SaaS is in, makes it hard to have those validation conversations and I have to rely on cold emails/DM's. Maybe I should start focusing on ideas that my immediate group/community can relate too.
Secret Way To Make An Extra $10k+ in MRR (SaaS Cheat Code): th-cam.com/video/cW-R9ZHDI60/w-d-xo.html
#6 is the biggest challenge for me. Talking to people, much less sales, is not something I am looking forward to. This is a great topic for future videos.
I’ve talked about this on my podcast a few times. Check out this episode where I dig in with an introvert developer who has learned how to do sales: www.startupsfortherestofus.com/episodes/episode-696-the-truth-about-product-market-fit-doing-sales-as-an-introvert-with-ruben-gamez
Thanks, I will check it out.@@MicroConf
Interesting how two-sided marketplaces are so compelling. Many of the ideas I come up with and get excited about are two-sided. I think it is the perception that the business is easy to run since you don't have to be an expert in any domain, you are just matching domain experts with end users. What has stopped me from fully executing any of these is exactly what Rob mentioned. Starting out you have a "what came first, chicken or egg" problem. It's hard to sign up one side of the market without having signed up the other. Even with a huge marketing budget, aligning both sides so that both get equal value without any churn is a real challenge.
It's interesting that there's always screenshots with code in the thumbnail and the videos tell you (and sadly it's true) that marketing and sales are way more important than the code.
I'm pretty sure people are drawn to two-sided markets, because it connects people and opportunities. It's exciting to us social creatures.
1. Building a Solution in search of a Problem
2. Priced Incorrectly.
3. Relying on Luck (going viral)
4. Selling to Consumers (B2C)
5. Misunderstanding Freemium
6. Avoiding talking to Prospects
The Biz model that doesn’t work:
A Two Sided Marketplace
This video is like a treasure trove of knowledge and entertainment. Well-balanced!
Thank you!
Hmmm....I'm working on a B2C software idea that could be used by individuals looking for a side hustle which they could provide for multiple clients at the same time. Allowing those frustrated that there is not enough hours in a day to increase their income. My software would allow them to work smarter not harder supporting multiple clients using my automation which could send an sms text when it has completed from a client site. I'm still in the build out phase but dreading the marketing part but I'm working on some ideas.
This doesn't seem pure B2C because the value proposition is business related and income generating.
5:00 talk to people, prospects, leads and customers.
7:00 best if 1 user, 100 or 1000 users can all individually get value from your product
Really nice video! i was wondering if i could help you edit your videos and make them more engaging as well as it will save your time.
I have an idea for a problem in the accounting space, I've validated it and seen good signs (prospects say: "I've used software X for 15+ years but now I'm looking alternatives because I don't want to move to their monthly subscription model").
I'm a developer so I'm not sure I'm the right person to be building for this customer base, talking to these customers doesnt necessarily excite me, should I get a cofounder or just abandon the idea altogether?
At some point, you’ll need to talk to customers. I’d suggest building that skill set. To get started you might read the book Deploy Empathy- deployempathy.com/
What were your B2C SaaS that failed? I tihnk turning people away from B2C SaaS is a mistake, maybe deep dive into this.
I give the full story in this video of why B2C is inferior to B2B SaaS: th-cam.com/video/CW5N1KjwJlc/w-d-xo.htmlsi=hu48IYkpP-9Xdv5W
Thank you! I just recently thought about B2B vs B2C SaaS businesses and came to the same conclusion. I have a small B2C SaaS app and the churn is terrible there. But it seems that it's harder to start a B2B SaaS.
Rob, regarding your rejection of B2C: I'd be curious to hear you address the B2Prosumer type of SaaS. This category targets a combination of professionals but mostly highly motivated hobbyists, many of whom already spend substantial amounts on their hobby.
For example selling to fitness coaches?
Thanks for this! I struggle that I don't have access to networks that my SaaS is in, makes it hard to have those validation conversations and I have to rely on cold emails/DM's. Maybe I should start focusing on ideas that my immediate group/community can relate too.
Tried attending tradeshows / conferences in that industry?
That's a great idea I never considered, thanks!@@same.7939