In 2020, I was laid off from my bartender job during the Covid lockdown.
Suddenly I had a lot of time on my hands, and so I decided to code up a SaaS.
My product was Zlappo, a Twitter growth tool offering a suite of tools for power users, including advanced analytics, viral tweet repository, thread previews, auto-retweets, auto-plugs, etc.
I didn’t have an email list or a Twitter following when I launched, so I had to get creative with how I got the initial word out and signed up my first 10 users.
It was a grind starting from absolute scratch.
What worked for me ($0-$1k/mo a.k.a. initial traction)
A. TWITTER GUERRILLA MARKETING
Since my product was a Twitter-specific tool, it was only natural that I started marketing on Twitter.
I employed 3 successful tactics that worked to get my first 10 paying customers:
- Sending DMs - I searched creator/marketing Lists and just directly sent DMs to users, telling them about how my product can help them to up their Twitter game. In order to make them feel special, I created a personalized link with a personalized promo code for them to get a discount upon signing up. This boosted my response rate. I did this for hours every day until I got rate-limited for spamming, then rinse and repeat for the next day.
- Using Twitter search - One of the defining features of my product was the ability to schedule threads, which back in 2020 was a feature gap in most leading competitors. So I bookmarked a Twitter search link for the keywords “schedule threads,” and every morning I responded to these tweets and plugged my product. This got visits to my site immediately, as I was helping them out directly with a problem that they had.
- Tweet source label - Every tweet posted by my app borne my app name (it said “Zlappo.com”) on the bottom-right of every tweet. If you’re a Twitter user, you’re probably familiar with the “Twitter for iPhone” source label that tweets used to have – until Elon ruined it (more on this guy later…).
And just like that, I’ve seeded my app with its initial users who are using my app, paying me monthly, and offering their feedback freely and enthusiastically.
Notice how I never did any content creation, wrote threads, did profile optimization, etc.
B. REALLY FINE-TUNING THE PRODUCT
Once I got my first few initial users, I think the most important thing that really accelerated my path to $1k MRR, as a solo founder, was to focus 80-90% of my time/effort on getting the product right, transforming a wonky MVP to a passable/good-enough product that can compete in the marketplace.
Here are some specific things I did:
- I filled in feature gaps so that my product is state-of-the-art for my product category, using customer feedback as my guide – I worked on the most-requested features first.
- I fixed every bug reported, even if I considered it edge-case (nothing is “edge-case” if a customer encountered it).
- I sped up the site as much as I could, rewriting/refactoring tons of my code to utilize more efficient database queries for instance, adding more RAM/processing power to my server, caching generously, enabling gzip, minification, etc. etc.
- I continually updated the UI/UX if I had a customer emailing me about something that was unintuitive or confusing.
In my opinion, having the product on point was my #1 way of user retention and also to encourage users to proudly share my app with their friends.
What worked for me ($1k-$30k/mo a.k.a. scaling)
C. AFFILIATE PROGRAM
Once I had a small base of die-hard users, I created a generous affiliate program:
- I paid a fat 50% recurring monthly commission to incentivize my users to share and promote my product.
- I also provided double-sided incentive, in that every referred user gets 60-day free trial right off the bat (instead of the usual 30 days).
Soon enough there were users who tweeted constantly, wrote blog reviews, created YouTube reviews, and even ran paid ads to drive traffic to my site.
I assisted them by providing graphics, screenshots, copy, and also creating a simple affiliate dashboard where they can view their affiliate stats and redeem their commissions at any time using a one-click interface.
D. APPSUMO LIFETIME DEALS
I also ran an AppSumo Marketplace deal which eventually accounted for 50%-80% of my monthly revenue, depending on the month.
I could obviously sell lifetime deals on my own (which I did), but selling on AppSumo had several advantages:
- It legitimized my nascent app.
- It helped me garner 5-star reviews/testimonials.
- It got affiliates to link back to my site and thus drive traffic.
- It also increased the visibility for my brand by running paid ads on my behalf.
- It jumpstarted word of mouth like crazy, as I later discovered “Zlappo” was mentioned so often within these lifetime deal groups on Facebook.
- Don’t forget… the revenue! I would have never hit $30k/mo without the boost that AppSumo gave my deal during times like AppSumo week and Black Friday sales.
Absolutely worth it, 10/10.
E. EMAIL MARKETING
As my user base grew into the thousands, email marketing turned out to be massively valuable.
I now had thousands of email addresses to leverage on, to whom I could blast offers or update emails.
I wrote a custom script to send emails to my user base who have trialed but not upgraded, or churned, and I periodically send out offers, discounts, product updates, etc. to get them to re-engage with my product.
And I regained many customers this way.
My downfall ($30k/mo to $0)
My business had been humming along fine for ~3 years… until late-March this year, when Elon Musk announced that Twitter API access would no longer be free but will cost $42,000/mo.
Well shit, my entire business was built on top of Twitter, and there was no way I could pay $42k/mo.
That’s a brand-new Tesla every single month!
So with a heavy heart, and after many sleepless nights, I decided that I had to shut down Zlappo, or at least deprecate like 80% of my features, which angered a lot of users and led to massive churn (the churn is still going on as we speak).
My 3-year entrepreneurship journey had ended in failure, and to say I was sad was a massive understatement.
But god damn what a ride it was.
Lessons learned
The most important lesson I learned was to never hitch my star on another company’s wagon.
Never have all your eggs in one basket, never have a single point of failure.
If I had diversified early (and integrated Facebook, Instagram, Google My Business, LinkedIn, TikTok, etc. into my product), I might have been able to attract a broad-enough customer base who wouldn’t care too much if Twitter was deprecated.
Platform risk is very real, and, although it was a risk I undertook, it was quite unexpected that Elon Musk would buy Twitter, let alone cut off API access.
But it happened, and it can’t unhappen, so I saw only 3 ways forward for me:
- Build my next business
- Give up and get a job for life
- Just pack it in, call it a good life, and take a long walk off a short pier
I’m very far from 3, I’d rather die than to settle for 2, so realistically 1 is my only option.
If you want to follow my journey as a 3rd-time founder, I’m currently building Zylvie.
If you’re a creator of any sort who sells stuff online, I invite you to please come along for the ride. 😎
Otherwise, I’m open for questions if anyone wants to know anything in particular!
Why not pivot to focus on LinkedIn?
No, dumb questions…? If I wanted to learn SaaS where do I start? From someone who knows it. I’m a teacher so I could probably come up with something useful. Thanks, and best of luck on the next one.
As OP said in his comment one thing is to learn to code. Another main skill is marketing, operations and design. Rule No 1 one will buy your app if it doesn’t have good UX/UI. If you don’t know all of these you can find someone to do it for you - be it someone you hire or a cofounder.
Impressive story, smartest bartender I’ve probably met.
What would be your top 3 pieces of advice for someone willing to start a saas business? (beyond never building on top of another platform)
smartest bartender I’ve probably met.
Lol, I’m not sure about that, my co-workers back then went on to do great things too.
One started a wildly-profitable drone business, another got into real estate.
Anyway top 3 pieces of advice:
- Figure out your repeatable marketing strategy early on, preferably before even building your app. In most cases, it will be content/social, built-in virality, affiliate program, or paid ads. It has to be something you can do over and over again to predictable results, and it has to have: founder-marketing fit, market-marketing fit, and product-marketing fit. Meaning the marketing strategy you use has to fit your personality, your market niche’s personality, and your product type.
- Don’t build any feature unless dozens of paying customers are breathing down your neck for it. It’s easy for any random user to see “ackhtually, it would be cool if you had feature.” It takes them 3 seconds to say it, it will take you 3 months to build it. So be very sure to build your product roadmap only based on the pressing, repeated feedback of a lot of users who are already paying you money.
- Diversify your revenue streams by tailoring your revenue streams to different market segments. Yes, SaaS is 1 product, but that doesn’t mean your customers are a monolithic entity, and that you have to charge your customers only 1 way. For instance, for Zlappo, I introduced lifetime plans for customers who want to do away with monthly fees. I was always careful to price them at above lifetime value, and that gave me a ton of cash upfront for product development (and vacations and a new car lol). For Zylvie, I’m planning to earn money 3 ways: (i) I take a commission for each successful sale, (ii) I’m rolling out monthly plans for revenue predictability, and (iii) I’m also offering lifetime plans for customers who despise monthly plans. These are 3 different market segments that should be treated and monetized differently. Plus, diversifying my revenue streams provides me with safety, in case 1 or even 2 of them falter (e.g. Stripe/Paddle banning me, AppSumo delisting me, etc.). If you only rely on monthly plans processed by 1 MoR, you’re very vulnerable to platform risk. Plus you’re most likely leaving money on the table. Lifetime plans eventually accounted for anywhere between 50-80% of my monthly revenue. That’s no small amount!
Very insightful, thanks for sharing I appreciate it!
You are a genius.
Great story. Thanks.
After how many months you started earning 30K per month?
Didn’t you consider selling to a party who believed it could scale aggressively?
Yes, but I would hate selling it when I had zero leverage.
So I decided to just keep it.
Keep it. You said you closed it down?
Surely it would have been better for sell for something than keep nothing.
It’s not nothing.
There are still thousands of dollars in residual income each month.
u/SweatyToothedMadman8
- You were living what many dream of
- You fell and you got back up (as this thread shows)
- You can and eventually will do it again
- You rose to success during Covid. That alone in incredible
Thank you for sharing these great insights!!
I appreciate your kind words of support!
Thank you for sharing all this, especially the details on getting your very first customers! That feels like the hardest bit to crack but it’s really motivating to see how you grew your business 🙌 good luck for whatever comes next!
Did you inform your users about the reasons you were shutting down? If they had an explanation I see no reason for the anger, but if you just shut down one day then it is more understandable.
Well done though, you’ve done what most of us will never do and you’re still looking forward, good luck with the future.
Of course I informed my users why.
The monthly-paying users were understanding.
The ones who paid for a lifetime plan, however…
Well I’m glad to see you’ve kept on with it. Hopefully if there is ever another rug pull you’ll be even better equipped to keep going.
Great story! I’ve got a couple of questions for you.
Firstly, when you were sending those DMs, did you use personal branding or company branding?
And secondly, if it was company branding, did you face any risk of your company account getting banned for spamming? Or did you maintain a separate Twitter account solely for promotional purposes?
By the way, congratulations on your new venture! I wish you the utmost success. Cheers!
Thank you for sharing your journey. Your resilience and unwavering determination are truly inspiring. It takes tremendous guts to rebuild. Keep pushing forward, for greater success awaits.
It takes tremendous guts to rebuild.
I just don’t see any other alternative.
I’m terrified of having to go back to get a job.
Reading r/antiwork for 10 minutes each day is enough to send buckets of ice down my spine.
I just don’t see any other alternative.
I’m terrified of having to go back to get a job.
Reading r/antiwork for 10 minutes each day is enough to send buckets of ice down my spine.
I hear you. I’m going through a similiar situation. Anyway, hang in there and keep us posted.
Will do.
Great job
This is whole reason for a data commons. Web3 aims to solve the platform-risk problem that plagues not only developers of innovative apps but consumers as well.
We rely upon the monolithic services and have now become sheep lorded over by our owners.
Personally I hope to play a role in the next generation of data commons … once this next 2025 cycle crests … I hope to build something decentralized automaton agents that will be federated and build on freedom
I’m sorry to hear about this. It sucks when it’s so out of your control but I’m sure you learned an incredible amount regardless.
I actually was a Zlappo customer and used it for 3-4 months until the whole API stuff happened. I remember logging in one day and seeing the message about how features had been deprecated and I remember being pretty bummed out because Zlappo was an awesome product and I really did enjoy it but unfortunately no longer made sense.
I hope you know that you built a phenomenal product and kudos to you. Hope you take everything you learned and build something even more incredible in the future! When you do, I’d love to be a paying customer.
Thanks for being a user of Zlappo! ♥️