The Founder Flash

My bank account and I are in a toxic relationship.
I keep depositing money, and it keeps disappearing. 😭💸

[The Founder Flash @TheFounderFlash]

What is the one SaaS tool you open every workday and would miss right away if it disappeared? I want to see which tools actually earn that daily spot.

[The Founder Flash @TheFounderFlash]

This is the most encouraging math for a small SaaS founder. Do not fear the incumbent's size, fear the wrong target. Pick the product they profit from most, and their strength becomes the reason they cannot follow you down.

[Jason Cohen @asmartbear]

The big incumbent makes far more profit than you. That's exactly why they can't match your price.

Say they run at a 20% profit margin, which is very healthy. For every $100 they take in, they spend $80 and keep $20.

You launch at a lower price. They think about cutting their price 10% to fight back.

Now they take in $90. But their costs don't go down, of course. The global sales team, the white-glove onboarding team, the expensive infrastructure, the vendors: they still cost $80. Profit drops from $20 to $10.

They cut their price by a mere 10%, and they lost half their profit.

And for what? You're still far cheaper, so the customer's choice hasn't changed.

"They'll just eat the loss. They have the money." They won't. Wall Street values them on future earnings. Watch how fast the stock drops when those earnings look at risk. Giving up earnings for growth is a young company's game.

There's one exception. If you attack a product they use as a loss-leader, they'll happily undercut you. Microsoft destroyed Netscape by investing billions of dollars in a free product (IE), and then Google destroyed IE (but not Microsoft as a whole) with Chrome, also by investing billions.

So aim at the profit center. It's why they have 100000x the money you have, but it's also a prison.

https://t.co/nhQK8u0djb

[The Founder Flash @TheFounderFlash]

@RyaneSaaS The dinner offer is the clever part, it turns users into the demo. Five LinkedIn videos of real searches will do more for GetLeads than another feature list.

[The Founder Flash @TheFounderFlash]

@asmartbear That 20 percent margin math flips the usual fear. Their profit is the prison, not their weapon. Aim at the profit center, and a 10 percent cut costs them half their earnings while you are still cheaper.

[The Founder Flash @TheFounderFlash]

@mahmutaoata Good distinction. A signup is just registration, activation is the first real job done, like sending that proposal. If you count both the same way, your onboarding numbers will flatter you while users quietly stall.

[The Founder Flash @TheFounderFlash]

@wolfitway The goat step is where most people quit. If someone only wants to change a button color, let them do that first and ask for the integrations after they see value. Onboarding should follow the job, not precede it.

[The Founder Flash @TheFounderFlash]

@MatthewKobilan The regular who stops coming is the perfect churn image. In a restaurant you notice the empty seat right away, in SaaS it just shows up as a number weeks later. That face to face feedback is hard to beat.

[The Founder Flash @TheFounderFlash]

@malpani The leaky bucket test is the honest one. New logos feel like growth, but if monthly churn is high you are just refilling the same bucket. Retention has to be the first growth metric, not the afterthought.

[The Founder Flash @TheFounderFlash]

@Cherebobo Spot on. Low prices pull in the customers who ask for the most and leave first, so you end up working harder for less. Price for the outcome, and the right customers will tell you by staying.

[The Founder Flash @TheFounderFlash]

@budisa_rados This is the churn most founders never separate out. A failed card is not a lost customer, it is a billing fix, and a clear update link in that first email recovers more than another retry ever will.

[The Founder Flash @TheFounderFlash]

@andrewontech Right, and that daily check-in is the hardest part to earn. Once a tool is in that loop, switching feels like breaking a routine, not just changing software.

[The Founder Flash @TheFounderFlash]

Most SaaS founders do not have a product problem. They have a distribution problem. The product works. Nobody knows it exists.

[The Founder Flash @TheFounderFlash]

Thousands of views and zero users is the lesson most builders skip. Attention only counts when it turns into a signup.

[Bassy J @BassyJBuilds]

Day 34 / ∞ building a SaaS 🧸

$0 MRR → $1K goal.

Videos are finally getting thousands of views, but still no users.

Now I need to work on my CTAs and turn attention into conversions. 🚀

[The Founder Flash @TheFounderFlash]

@wleatherman9 Empty space, not better writing, is a great way to put it. Most SaaS SEO fights over the same crowded keywords instead of answering questions nobody has claimed yet.

[The Founder Flash @TheFounderFlash]

@RajTilak1111 The first email is the real landing page. Most founders polish the signup flow, then send a generic welcome that says nothing.

[The Founder Flash @TheFounderFlash]

@niazgabdulla One small win in the first minute beats a ten-step tour every time. Confidence is what turns a signup into a paying user.

[The Founder Flash @TheFounderFlash]

@buildwithpb Docs matter more than people admit. If a founder can integrate in an afternoon, the pricing debate barely gets started.

[The Founder Flash @TheFounderFlash]

@kamcryp Outcome pricing makes total sense here. When your product cuts headcount, per-seat pricing punishes you for doing your job well.

[The Founder Flash @TheFounderFlash]

@summer_ikiki_ That $16 vs $240 gap is the whole story. If a pricing page can be read two ways, buyers will always find the cheaper one.

[The Founder Flash @TheFounderFlash]

@nxfnxr Start from the value, not the cost. Work out what the problem costs them per month today, then price below that and test upward from there.