• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Trading Life for a Weekend?
    Build a Business, Build a Life.
    Unleash the Dream.

    Become an UNSCRIPTED™Entrepreneur.

    UNSCRIPTED™ Entrepreneurship is an entrepreneurial business strategy that unleashes dreams, frees time, and explodes your incomes—but more importantly, it changes your life forever. Make no mistake; this isn’t something you “try”— this is something you live.

    FREE Download (Unscripted) FREE Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

FORUM SEARCH


Need answers about entrepreneurship? Search FIRST! More than likely your entrepreneurial topic has already been discussed.
Powered by Google Site Search.

Progress Thread SaaSify

Discussion in 'Progress/Execution Threads' started by LeoistheSun, Oct 18, 2017.

  1. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Havent posted in awhile:

    Hit a brick wall. Low on funds, could really use a nice cash injection right about now!

    Anyway, the brick wall is getting in contact with people who have the issue I am trying to fix. I'd like to get more information on the problem and if what I am creating is in the right direction.

    I found a dev to make part of the software for free... just enough to hopefully test the concept.

    I've also got a list of everyone who could potentially have the issue, I'm just stuck figuring out how to go about finding people who I could get feedback from.

    Anyway, since most peeps are off this week (I cant seem to reach anyone), I am going to read as many GOLD posts as possible until X-mas.
     
    Elbert Dockery likes this.
  2. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Been awhile since I posted but, spoke with 2 vets today about their issues. Basically, I might pivot/change my idea to something else. Thankfully something like this has been developed so what I might do is have a Dev build a rough draft or working prototype that uses this API and then have the Vets test it to see if it solves the issue or reduces it.

    I've also been thinking about ways to diversify my offering vs competitors. One is to offer some freebies, since not having "said item" is a common objection. Surprisingly theres some pretty nice ones on Amazon for $30. So if I were to charge $50-100/mo for the SaaS I'd still make a profit.

    We

    Shall

    See


    -Leo
     
    Last edited: Jan 11, 2018
    ocricci likes this.
  3. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Quick update:

    Talked with the owners of the API, unsure on the prices. They want me to sign a NDA. They also offer a software client of the solution. There's also a couple re-sellers that use the same product.

    Interestingly the competition I was thinking of earlier (that makes a similar product)- uses their product (software client). They are just a reseller.

    Main thing that comes to mind if I go down this route- is that I loose the Commandment of Control regardless if I make my own software solution.
     
    Last edited: Jan 10, 2018
    ocricci likes this.
  4. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Quick update.

    Signed the NDA waiting for tomorrow for the meeting on the pricing.

    I may have originally posted that the commandment of CONTROL was violated. Well only slightly. If I was to continue through this pivot or change in idea, I would need to use this API. Its pretty much the cornerstone of the product. Did I mention that this company also offers a product that does the same thing but you can be a "reseller"?

    (I would not be competing with them- since I would be using their product anyway)

    I'm not interested in doing that. Simply put, CONTROL would be fully violated. The company (since I'd be a reseller) would know who my customers are and then could hypothetically kick me off their service- while keeping my customers.

    However if I build my own program that uses the API, then they do not know who my customers are and stand to lose a lot more ($$$) should anything happen, I can also use this to my advantage. So CONTROL is only partially violated in this case- since they own the API but wouldn't know who my customer base is.

    At this moment thinking about that is a bit of "cart before the horse" in which case, I don't even know if the prices are reasonable or not. For instance, IBM's API would cost me ~$20 per month per client. So that could be anywhere from 20-40% of my total revenue!! However, I wonder if I could just deduct that cost from taxes...? Either way I'm thinking way ahead.

    Since I am waiting on hearing back, I'm going to fart around with what the UI could look like. I have some ideas.

    -Leo
     
  5. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Update:

    Got off the phone with the rep.- and MAN were they cheaper! -In a good way of-course!

    I also got some ins on what my competition might be charging. So I was reading UNSCRIPTED and re-read the VALUE SKEW part. I gotta look up my competition and see where I can skew value.

    Also a shout-out to @CareCPA for helping me out on a question! Basically I can deduct API expenses from my overall profits!
     
  6. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Update:

    Looked a bit closer at the pricing from the rep and realized I got understood it wrong. So realistically they are only a little bit cheaper.

    I've continued to look at ways to value skew. I thought I'd take a page out of TMF where MJ changes his pricing model for his website to something unique and crazy. You see... instead of doing $$ per month charge, I've decided to try charging based on usage.

    Other Value-Skews that I can take advantage of that my competition do not:
    • Compelling Story
    • Ease of Ordering
    • Associations & Affiliations
    • Guarantee
    • Refund Policy
    • Trial
    • Reviews
    • Security
    • Payment Options
    • Employee Photos
    • Added Value (Blog, etc.)
    • Bonuses (free stuff)
    • Social Media
    • Sales Copy
    (Yes! Apparently my competition lacks in all these areas...)

    Some of the pain points of customers (that I've seen from similar products on Amazon [software]) is that it's too expensive. So I want to try a "pay as you use" model. Something similar to DigitalOcean.

    Since half of the SaaS resolves around a 3rd party API (one that I pay for- based on usage), I decided to try forwarding that cost (and the pricing model) to the customer + 50% (profit).

    I've got some cool ideas that I want to try out too. But for now im focused on:

    - Creating a mockup
    - Customer Feedback
    - MVP built
    - MVP tested
    - More feedback
    - Presale
    - Build
    - Launch
     
    ocricci and daru like this.
  7. EasternCrane
    Offline

    EasternCrane Sit in the gap not the choice Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    75
    Likes Received:
    74
    Joined:
    Sep 10, 2017
    Gender:
    Male
    Location:
    United States
    Rep Bank:
    $161
    Amazing progress man!

    Did they say why they wanted you to sign an NDA? Seems fishy. The NDA seems left field from the direction you were headed.

    I just started my next project now after I left the partnership I was in.

    You'll need to sell after the MVP.

    I recommend the book "SPIN Selling" for selling the $600 packages you need for the MVP. SPIN Selling is the book closest to the approach I told you about that uses Cherry Picking and patterning.

    It's my method and Dan Maxwell's info on steroids and condensed down.

    It's also scientifically proven.

    Happy New Year!

    Last, I would suggest Keynotopia for your packet.

    I've heard good things about the NO B.S. series for marketing when you make it to that point.

    LeadGenius might also be worth it after a few pre-sells to get opt-ins on a cold email campaign for scaling.

    These are the tools and paths I'm taking after 7 or 8 failures and having now read close to 20 books on this stuff.
     
    LeoistheSun and ocricci like this.
  8. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Thanks @EasternCrane! Yes, it did seem fishy. Maybe because they didn't want other competitors to know? They were only a little bit cheaper compared to the "market leader." TBH I think it would be too expensive (the cost after I factor in my own profit) to the customer so I'm looking into other avenues.

    I hate how long it takes though... :(

    Will look into the other stuff.

    I've heard of Keynotetopia.
     
  9. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Slight Detour...

    Super large obstacle in my way. However I'm going to keep trying to jump over!

    My quest has lead me to...

    Microsoft Azure & Machine Learning!

    -Leo
     
    EasternCrane likes this.
  10. EasternCrane
    Offline

    EasternCrane Sit in the gap not the choice Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    75
    Likes Received:
    74
    Joined:
    Sep 10, 2017
    Gender:
    Male
    Location:
    United States
    Rep Bank:
    $161
    Stop and focus for a second. Or better don't forget your focus.

    You need a customer not a tool.

    You're trying to get this off of your word. This stuff is probably coming from interviews with people. Right?

    You want to build a machine learning, cloud application, with computational abilities, and decked out on APIs you either need or want but don't fully control.

    That's not an insult.

    Why are you only trying to get $50 per month for this though?

    A machine learning consult for applications as a one off usage runs at least $3k to $25k, depending on complexity and the problem it solves as a standalone solution.

    That is with probably undercharging too as a consultant.

    This means your application should be solving a really important problem and be costing like $300+ per month, at least like $150 or more a month.

    If you are solving a $5k per month problem you should be charging like $650 a month or even possibly more. You aren't trying to capture 99% of the market like a startup are you?

    I know I couldn't imagine trying to run a webinar on how my $50 solution solves a $30k+ yearly problem. I couldn't imagine that people would stick around for anything but price either. The level of customer service would have to be low as well.

    I would suggest trying to sell before going deeper in the solution.

    Remember, a business is a solved problem and a customer.

    The customer comes first.

    Your MVP may not need an ML component right away. The point isn't to map out the whole solution. Your point/goal is to do enough to create a viable solution.

    Also, Fwiw, I haven't seen any ML solutions on the market going for like $50 a month. They may exist though. I would think the market would have to be super large and they would be raising money also.

    If you haven't listened to "The Automatic Customer" then you should because your solution needs to cost low enough to make sure it doesn't take 1 or 2 years for you to start making money.

    The overhead can get expensive so I would suggest trying to sell a customer on a fair price with the packet.

    Best of luck man.
     
  11. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    Deleted. Wrote something too soon possibly lol
     
    Last edited: Jan 21, 2018 at 10:04 PM
  12. EasternCrane
    Offline

    EasternCrane Sit in the gap not the choice Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    75
    Likes Received:
    74
    Joined:
    Sep 10, 2017
    Gender:
    Male
    Location:
    United States
    Rep Bank:
    $161
    If it's serious then upgrade and move your progress thread to the inside.

    You did give away some damning information for the curious.

    Long story short. You're said exactly why you should pre-sell right now. There are current buyers. They're aware of the solutions.

    You don't even need a packet. You just need unhappy customers.

    Raise prices. Pre-sell.

    Fwiw, I saw the early post.

    You can definitely create that better product. If there are white label resellers then the problem is big and deep.

    I.e. your $650 to $1300 per month is probably bare minimum.

    $7200 to $13000 yearly doesn't sound like ML.

    There is a thing known as Baumol's Cost Disease in Health Care, which predicts that due to reporting, administrative costs will rise forever like a black hole and cause general healthcare costs to rise forever.

    The ACA is an example of how this occurs. Also, Canada, Britain, and maybe France as well (for various types of demonstrations of the effect).

    So your problem is probably more expensive as the size of the organization increases.

    You have found an admin problem with a real exit potential.

    Healthcare companies get the most exits if I'm not mistaken.

    If you're making a quality solution that can be A) scalable
    B) compelling

    You need to charge more. This also means you can make cash faster as there will be affiliates and stuff. They'll like a higher priced custom quality offer.

    If your competition is super advanced then your solution will be cheap to build because it has been done a million times.

    Your incremental improvement will get somewhere faster and better if you just pre-sell.

    Selling now will help you create a godfather offer since the market is mature.

    Knowing why you aren't good enough shows how to create the irresistible offer. Selling actually helps nail down what's missing.

    If you do it the SPIN selling way.

    However, it does sound like you need to map out the solution better if you're adding a never done before component.

    Just my 0.02c.
     
    LeoistheSun likes this.
  13. LeoistheSun
    Offline

    LeoistheSun Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    255
    Likes Received:
    306
    Joined:
    Oct 3, 2017
    Gender:
    Male
    Location:
    Southern Cali
    Rep Bank:
    $1,280
    I would charge tons (a spin off idea possibly) but my current competition charges a one-time $1500 or $75 monthly.

    So I feel like I can't go much higher.

    I deleted my post since I was talking about how MS made it easy to do some things AI related... But one of their pricing points is totally bone-headed and makes no sense.

    Anyway I am trying to figure this out.