How We Built a $10K/mo SaaS

Starter Story • • 13min • #94
How We Built a $10K/mo SaaS
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Summary

  • Joseph & Teemo

    • Joseph quit freelancing as a software engineer to become an indie hacker.
    • Teemo lives in Bangkok; together they co‑founded Setter AI, now generating $10K /mo.
    • Met in a co‑working space, burned out by “builder’s disease,” then adopted a “get paid before building” strategy.
    • Validated the idea with a $500 refundable deposit before writing any code (February 2024).

  • Products and Offerings

    • Setter AI – AI‑powered appointment setter that follows up and qualifies leads instantly.
      • Targets high‑ticket B2B sectors (solar, coaching, financial services) to replace sales reps.
      • Subscription plans start at $50 /mo; some customers pay $500 /mo, and the largest pays up to $5,000 /mo.

  • Metrics and Financials

    • Consistently around $10K /mo revenue (August was a slower month).
    • 2,000 total business sign‑ups; 38 paying customers (focused on high‑value accounts).
    • High gross margins: >90 % without ads, ~80 % with occasional freelance work.
    • Monthly operating costs ≈ $150 for database hosting + $250 for OpenAI API + up to $500 for freelancers.

  • Strategy and Growth

    • Validation Playbook
      1. Leverage a current job to understand real business pain points.
      2. Build a simple SEO‑optimized landing page on an already indexed domain.
      3. Add a fake demo video (generated with 11 Labs) and a Calendly link for demo calls.
      4. Use the “deposit framework”: request a 100 % refundable $500 deposit before building.
      5. Charge high‑ticket amounts to ensure serious commitment.
      6. Allow time for SEO to bring organic traffic and qualified leads.
    • Growth Engine
      • Pure inbound focus: SEO, content, and free tools (e.g., sales script generator).
      • Publish comparison articles (e.g., “HubSpot alternatives”) to capture search intent.
      • Produce long‑form YouTube videos; most customers watch at least one before booking a call.
      • Achieved #1 ranking worldwide for primary keyword within a week of launch.

  • Tech Stack and Infrastructure

    • Front‑end / CMS: Webflow (hosting and CMS).
    • Backend: Serverless stack built with TypeScript and SWELGit; PostgreSQL on Render & Supabase (~$150/mo).
    • AI: OpenAI API for core functionality; brand fetch API for supplementary data.
    • Automation: Puppeteer for browser automation, Zapier for workflow automation, Beehive for email newsletters.
    • Analytics: Plausible ($29/mo) instead of Google Analytics.
    • Development & Deployment: Netlify hosting; Cursor for AI‑assisted coding.
    • Support Tools: Ahrefs (SEO research), AnswerThePublic (YouTube ideas), Calendly (scheduling), businessnumber.com (phone numbers).

  • Lessons and Advice

    • Charge early and go high‑ticket; it creates urgency, commitment, and higher margins.
    • Validate with real money before building—refundable deposits are a low‑risk way to prove demand.
    • Use existing domain authority to get landing pages indexed quickly (request indexing via Google Search Console).
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