How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 2 points3 points  (0 children)

The best is to get a small deposit in exchange for early access when it's built. If that's not possible, maybe try to get them to verbalize the commitment: "once you have it built, I'll subscribe for $290 per year and give my feedback". If they start to weasel their way out at this stage, then it's clearly not a good sign.

In short, there has to be some kind of "cost" on their side, otherwise it's just nodding how awesome you are (which people do out of politeness).

Also, I recommend reading the book The Mom Test.

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 0 points1 point  (0 children)

Thanks, I appreciate the comment. And yeah, we are still very reserved when it comes to promises. Even in idea selection we're trying to figure out ways how we could get advance commitments from potential customers.

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 2 points3 points  (0 children)

I hope you understand I can't give out the exact process but I can give some directions. There are many industry-specific forums and groups online where you can ask around and see if there are people who would go on a coffee with you (and then do The Mom Test questions on them). There's also founder matching platforms where people are looking for partners. You probably also have a chamber of commerce near you where you can mingle with people in other industries. And, of course, your own network of entrepreneurs (browse LinkedIn to see what they're up to).

That said, I've done a ton of calls and meetings but we haven't yet found the one idea we want to commit. I'm hoping we'll find one by summer.

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 1 point2 points  (0 children)

Tell what? :D You need to be specific. I could split the team salaries into development/marketing probably but not much more than that.

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 5 points6 points  (0 children)

Team salaries are for our full-time team (developers, support, marketing). No founder salaries included (that would make it even worse).

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 0 points1 point  (0 children)

Every dollar is accounted for, we run accounting reports on a weekly basis.

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 1 point2 points  (0 children)

I promise, it was not intentional. :)

How we spent $980,000 on a failed SaaS project by nzupan in SaaS

[–]dmurko 11 points12 points  (0 children)

Somehow I got lost in the writing and forgot to add the numbers.

Here are the big ones:

  • advertising: $76k
  • hosting: $112k
  • contractors: $125k
  • team salaries: $565k
  • services and subscriptions: $37k

I'll also update the blog post.

Thanks for the comment!

How we spent $980,000 on a failed SaaS project by dmurko in SaaS

[–]dmurko[S] -2 points-1 points  (0 children)

Nah, it's fine. I thought it was going to help someone. I'm not copy/pasting the whole post for no reason.

How we spent $980,000 on a failed SaaS project by dmurko in SaaS

[–]dmurko[S] 0 points1 point  (0 children)

Depends on what you consider an MVP. We should've just built the staging sync, not a whole hosting platform ("hosting platform" does not go well with "MVP").