Why isn't my SaaS paying the bills?
I began my journey exactly one year ago, and since then, I've built four SaaS businesses, or at least, I attempted to. I am of the opinion that a true 'business' should generate income. In reality, only one of my SaaS businesses actually made some money. Specifically, it earned $800 in three months, which isn't a lot, but it's something.
Recently, I've been thinking on why this is the case. As a competent full stack software engineer, I feel like I've gained so much business knowledge in the past year. I believe I deserve to be successful in this field, yet the reality is I'm still not.
A month ago, I thought of a new SaaS project. As an aspiring entrepreneur, I've had numerous ideas. Obviously, I couldn't bring all of them to life; I needed to validate them first. Product validation isn't straightforward; you basically need to ascertain if people are willing to pay for your product or not. The first step should be to create a landing page that communicates your idea and the problem you're solving, and then try to gather emails from potential customers. This always involved setting up a server, using a database, and coding, which seemed very time-consuming and overly complicated.
That's how the idea of Mailchest was born. It's the simplest existing method to begin collecting emails directly through your landing page. All you need to do is copy and paste two lines of HTML, and you're done. You can begin collecting emails and view them on a dashboard. It's fast, secure, customizable, and even offers some analytics; for example, you can see where your customers are coming from, their GEO location, a graph that shows your performance over the past month, and so on.
I genuinely believed that this project would be successful. I recognize that it's a problem we all encounter when attempting to validate our products. I've spoken to numerous solopreneurs who have experienced the same feeling.
However, in reality, there have been no sales yet. And you know what? Let's put aside the sales discussion for a moment; there aren't even any users who are testing the product to see how it functions. Yes, there have been some registrations for the freemium tier, but none have actually implemented it on their landing page to start collecting emails.
So, my question is this: why do you think Mailchest isn't succeeding? I would greatly appreciate honest feedback from you all. I sincerely want to improve at what I'm doing. Thanks.
Here's the link so you can check it out: https://mailchest.app
First off, congratulations on your journey!
I do see a few areas where your product might be falling short, so here's my two cents:
Target audience: In your landing page there's a "Create a simple button" step, complete with HTML code. For us developers, it's really that simple but it might seem intimidating for non-technical users. Making this seem less technical could be beneficial, maybe adding a step-by-step for integrating into platforms like Wix, WordPress and other website builders is the way to go.
After Data Collection: Collecting emails is a crucial first step, but what comes after is equally important. If exporting is the only option, it might feel inadequate. A possibility to explore could be integrating with popular CRMs, email marketing platforms, or automation tools like Zapier. This could add significant value to your offering and potentially improve conversions.
Now, If you're zeroing in on developers, consider what they would gain from your service. If they're gonna have to build integrations to funnel your data elsewhere, it kinda defeats the point of the time-saving element.
Hope this helps!
It surely did help. Thanks!
You hear the age-old mantra: "If you build it, they will come". It's wrong. Maybe we need a new one?
If you solve a pain worth a painkiller, they will come.
If you offer true value, they will come.
But even then, those two things are only true if "they" know you exist.
So, how are you marketing your product? How long have you given it? How are you reaching your audience, and how do you know it's a problem?
You mentioned there's been some sign ups but no implementation. Why? What have they told you? If you don't know, or haven't yet asked them, there's a great starting point for you.
I'm not your target audience, so I'll caveat what I'm about to say by making that clear.
Do you have competitors? Is this feature something already baked in to a marketing team's email management platform or CRM alongside all the other features? I don't know, as I don't use it.
The simple man in me - looking at your landing page at a glance - assumes this is something I can get from a MailChimp subscription already.
If that's wildly inaccurate, maybe the landing page needs more information?
Good luck with it all, I hope you get a breakthrough 💪
Thank you so much, Norrie! Really appreciate your comment 🙏🏻
My strong recommendation is that you ask this question to the registered users. Only they can tell why they did not implement Mailchest into their funnel and their answers will give you much more insight than we could.
Besides that, my opinion:
It seems like what Mailchest offers, I get with every fully fledged newsletter platform (like Mailchimp). So why would I go with Mailchest? This question would lead me to not using it but instead go for a newsletter software.
While Mailchimp may offer similar features, its integration process is considerably more complex. Additionally, it charges substantially more than I do. Furthermore, its software isn't specifically designed for collecting emails, but is primarily used for sending them.
On the other hand, Mailchest allows you to integrate an email collector form in less than three minutes. Mailchest not only collects emails, but also validates them by sending a confirmation email to the registered user, and lets you see who confirmed their email and who didn't. It provides insights about the sources of your registrations and offers additional features.
I get that your product is different from Mailchimp, just wanted to say it's not clear with USP Mailchest provides in comparison to Mailchimp (and other providers). Still, I stick to that impression.
Just to clarify:
Still, I don't see why I should use Mailchest given the fact that Mailchimp or others provide many many many more features (in addition to all the features mentionend above).
Bottom line: Maybe ask the users the question "what features do you need in order to start using Mailchest in production?".
I believe you made some kind of success already with having a few users who initially signed up for the product (this shows general interest). You now need to make the product and messaging fit to what they really need (not a simple step, but definitely necessary).
Hi man!
First of all, the product looks neat. I don't see any issue with the product itself.
I need something similar to a new project I'm working on, and my honest opinion why I wouldn't use yours is:
I would try to add more features that give a more holistic solution to the problem:
And will also consider a pay-once option and not a subscription.
Best of luck!
Hey Itay! Thanks for the honest feedback.
Just wanted to let you know that we do have these 2 features that you mentioned, and you can even use them on the freemium tier.
Give it a go!
That's great!
I couldn't find these features in the LP or the pricing breakdown.
Will consider using on the next product :)
Idan, you have a very successfull business on your hands. The only issue is the fact that you are undercharging your customer and underselling them. If your average revenue per customer is 19.99$ (as i assume from your pricing) and those 800$ were generated in 3 months that gives us roughly 13 clients that are paying you.
Here is a question:
have you quantified how much value (captured emails for example) you've generated for them? Try to quantify that. Are you charging at least 10% of that? If not it's time to fix your pricing because you are not capturing enough of the value created.
Which brings me to underselling. When you'll figure out how much value you bring to the table and fix your pricing start creating case studies of clients that were made successfull by your solution. Here is a framework on how to do it: google "Casbeg How to write a good case study"
(it's first blogpost we've published for a reason).
Then publish those case studies on your social media and provide your clients with a free month if they post a case study about themselves on social media. It's going to be a loop:
More case studies -> more leads -> more clients -> more successfull clients -> more case studies
Make it spin faster and faster.
You are onto something.
Good Luck
Bartosz Majewski
If you focus on idea validation, these users won't pay for a sub for a long time. Imo, idea validation is an one-off task.
Also, inputting an email doesn't mean the idea is validated. When a user pays for your service, the idea is validated. An email doesn't validate that the idea can generate revenue
I disagree. If someone has decided to leave their email, it likely means they're interested in what you offer and want to be reminded when your product is available for purchase.
As a consumer, I leave my email because I'm interested, but usually balk at purchasing if what I learn later doesn't align with what I want. (too expensive, doesn't work, or I just plain don't like it) Lots of stuff can happen between email signup and actually paying.
I think you can confirm idea validation from email signups (interest in what you gave first), but going back to the title of the post, validation of an idea doesn't pay the bills
Yep, I guess you're right. Thanks for the comment.
Building and launching SaaS businesses can be a challenging endeavor, and it's commendable that you've been actively pursuing this path and learning along the way. Here are a few potential reasons why Mailchest might not be succeeding as expected:
Market Need and Competition: It's crucial to assess the market need and competition for your product. While the idea of simplifying email collection is valuable, it's possible that the market already has existing solutions that address the same problem. Researching competitors and understanding their offerings can help you identify your unique value proposition and differentiate Mailchest from the alternatives.
Target Audience and Marketing: Understanding your target audience and effectively reaching them is key. Are you targeting the right audience who truly needs and values a simple email collection solution? It's important to define your ideal customer profile and tailor your marketing efforts to reach them through relevant channels and messaging. Consider conducting customer research or surveys to gain insights into their pain points, preferences, and expectations.
Value Proposition and Messaging: Clearly communicating the value of your product is crucial for generating interest and attracting users. Evaluate your messaging on your website and landing page. Does it effectively convey the benefits and simplicity of Mailchest? Are you addressing the pain points of your potential customers and demonstrating how Mailchest can solve their problems? Refining your value proposition and messaging can help attract users and encourage them to take action.
User Experience and Trust: Users often hesitate to adopt new products if they don't feel confident about the user experience or trust the brand. Ensure that the Mailchest platform is user-friendly, intuitive, and visually appealing. Highlight any security measures in place to protect user data. Testimonials, case studies, or social proof can also help build trust and credibility for your product.
Pricing and Freemium Model: Evaluate your pricing strategy and the freemium tier offering. Consider whether the pricing aligns with the perceived value of the product and whether the freemium plan encourages users to upgrade to paid tiers. It may be helpful to gather feedback from potential users about their willingness to pay for such a service and adjust your pricing accordingly.
Marketing and Promotion Efforts: Building a great product is only one aspect of the equation; promoting it effectively is equally important. Evaluate your marketing and promotion efforts. Are you leveraging different channels (e.g., social media, content marketing, partnerships) to reach your target audience? Are you actively engaging with potential customers and building a community around your product? Exploring different marketing strategies and iterating based on the results can help improve your product's visibility and attract users.
Remember, building a successful SaaS business often requires persistence, iteration, and continuous improvement. Analyze the feedback and data you receive, and adapt your strategy accordingly. Don't hesitate to seek advice from experienced entrepreneurs or consider consulting with professionals who specialize in SaaS marketing or product development.
I wouldn't use it because:
Hi Gigor,
Thank you for your honest feedback.
Regarding your first concern, I am currently working on this feature. Once it's ready, you will have the choice between a modal and an embedded form.
The "Powered by Mailchest" label can be disabled if you have a subscription. I believe it's reasonable to display it for those who choose the Freemium plan.
A demo is available at the bottom of the page. No documentation is required, which is what makes it so powerful. It's just two lines of HTML and you're set. Everything just works.
It's not clear if the label will disappear in paid integration.
I meant the demo of the app that displays subscribers and, I assume, sends the emails.
We need more context about the nature of your solution. B2B or B2C?
I think you have learnt the basics and are misstepping in the execution. Have you made any marketing? Have you established your sales cycle? Have you established an email sequence?
Ultimately, where is the bottleneck?
I would personally say there are betters tools on the market that will allow me to do it and grant me lots of other possibilities. Good luck on your journey :)
Thank you for your honest feedback.
Could you please specify what you believe they do better? From my perspective, my integration is currently the easiest on the market, and my pricing is very competitive.
I would greatly appreciate your suggestions on how to improve it further. What changes would convince you to use it?
Ok so here are my thoughts.
First of all, you said it is a month old right?
Didnt you just post some days ago about this? Anyways, wether its been some days or a month, i think you need to give it some more time. While it might be true that it is possible to find product market fit in this short time, doesnt mean every product and every man can do so.
One should know what to expect, set realistic goals that take your situation and your possibilities into account.
Next, you said that there are free users. Is your target group the right one? People that try to validate often try not to spend any money until they see they can make some money with the Idea.
Maybe the use case is wrong, maybe there might be enough other solutions on the market that users already know and love to use.
Have you clearly defined your assumptions and validated them?
Here are some assumptions i think you should have:
There are more for sure, but i think you can already see, how many points need to be right so that your solution is a perfect match.
I hope these are some hints for you to bring you further, i wish you all the best.
PS: do you know cakemail? I think they are offering something similar,maybe check them out.
As a startup founder (maybe I'm not your target audience) I try to understand if Mailchest is for me. So Mailchest collects emails then I can analyze them, then what ? Can I send emails as well or I need to export the data and import it somewhere else?
What data is collected? IP address, device information, etc.. I think most of the email management platforms already collect these.
I think this could be a great service if there would be more data about the user, for example, if user with a company email address would sign up, the data would show the user is working in a big company, it's sales person, etc..
Hope my feedback was somewhat helpful to you :-)