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How many SaaS companies on here currently operate an "agency" on the frontend as well to cover costs of bootstrapping?

How many SaaS companies on here currently operate an "agency" on the frontend as well to cover costs of bootstrapping?

on March 26, 2019
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    I've been doing this since last fall. My "agency" designs and builds apps with React and Ruby on Rails.

    It's an easy/fun way to learn new things, and I don't need to eat through my savings while I iterate on SaaS products. It also gives me a lot of freedom over my schedule! Within a year or two, I'd like to move entirely into products.

    If anyone has questions, feel free to ask!

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      I have a lead generation tool targeted at lead generation agencies, but I guess some clients are asking for the service from me.

      I am thinking of adding a plan that comes with an "account manager": basically a VA that I will have to train to use our product for those specific clients.

      The other idea is to partner with specific agencies and pass business to them but It seems like a lost opportunity...

      Setting up VAs for each client sounds easy but I know it's hard and a big overhead...

      What do you think @Zeph ?

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        I can't see myself using a lead generation tool because my clients come through word of mouth. (See my reply to @PotentialAthlete1.)

        But I can still give some help from the business side of things.

        If you want a lifestyle business, then I'd stay away from managing a team of virtual assistants. You're already building and marketing a product, so adding another piece to that could make the business much more complex. Off the top of my head, you'd need to consider:

        • How many clients can one VA handle at a time and still do good work? (This would vary from VA to VA.)
        • What happens when a client cancels? Can you get a new client in time, or are you now losing money on the VA?
        • How stable is your employment for VAs? Instability could make it hard to attract high-quality VAs. It could also contribute to higher turnover, which will cost you more money in training.
        • Generally, a higher-tiered plan should create more profit for your business. How much do you need to charge on this plan to cover your time managing the VA program, and a VA's training, their employment, etc. costs? Could your customers afford it?
        • What are the client's expectations, and can your VAs deliver on them?
        • Will you have enough time to continue marketing and developing your product while training and managing VAs?
        • What happens if the VA leaves, gets sick, goes on vacation, goes on maternity leave, etc.? Can you keep a buffer of VAs to cover for them? How much would this cost?

        All of that being said, you could overcome most of this by limiting the number of available seats on your "Account Manager" tier. Allow a single company to sign up, refine your systems, and then move up to 3 companies, then 5 companies, and so on. If it turns out to be profitable, move forward with it; if not, cancel the tier.

        Let me know if you have any more questions!

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          This is gold, thanks a ton!

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            Happy to help. Good luck with whatever you choose to do! :)

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      Hey, can you please tell me about what your agency does to get leads? What are your favorite and most effective channels for business networking? Thanks :)

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        Hey Utkarsh, that's a great question!

        I'm not a fan of traditional networking (mixers and conferences stress me out). When I started my agency, I contacted one of my old employers and told them what I was doing. I met with them a few times for free, discussed what their problems were, and came up with some really creative solutions. Everything since has happened through word of mouth. I do good work and then ask for referrals.

        Some other ideas:

        1. Tell everyone you know that you build websites/design apps/etc. Your family, your friends, your old teachers, your previous employers, your barber, your eye doctor... While they might not know anyone who needs your services right away, they'll could meet someone in a few weeks or months.
        2. Build a cool free project, put it on Product Hunt/IH/Hacker News, and just add a floating "hire me" link to the bottom corner.
        3. You could find high-revenue startups on IH and reach out to them directly with a problem + solution. Example: "I noticed your landing page breaks on mobile. Here's some CSS that fixes it (attached)." Then ask them if they need help with anything else, as you have a reasonably-priced boutique agency.

        I'd be happy to help if you have any other questions!

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          That was very helpful. That's mostly what I have been focusing on as well. There really isn't much scope for networking events and conferences near my specific location, so word of mouth really is the most potent option available.
          Thanks for responding, Mark. Cheers!

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    We do it in a way. What we have found is that our clients require more than our product can offer. Offering the whole thing and using humans to be the product is a great way to gather feedback and keep our bottom line in black.

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    Our product revolves around lead generation and so with that comes customers who don't just want to learn about how to do it themselves, they would rather just pay for "done-for-you". So we have that as part of our offering.

    Basically we cover:

    • Software tools for lead generation
    • Done-for-you lead generation
    • Coaching for lead generation

    This is less to cover costs, and more to do with what's needed to help our customers solve that core problem.

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    Yup! Money from web development clients goes into https://helpjoy.io/

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    I work as an interim / consulting CTO for other companies while working on Trolley on the side.

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    We do.

    Honestly it isn’t the way we prefer to do it and we’ve been trying to migrate from services to products. Competition in the SAAS space is super competitive and the economics require a long ramp up for sufficient number of customers to bail on the services side completely.