Build a profitable SaaS app

1. Build niche internet audience

First things first, you need an audience (they are your future customers). But, you don't need to be an influencer with perfect hair and teeth to make it happen. You've got two paths.

Become a faceless brand. Think MrBeast without the face. AI tools like Claude for captions/posts/scripts or RunwayML for video can help you pump out content faster than a caffeinated squirrel. But remember, authenticity still matters. Your audience isn't stupid.

Become a personal brand. Nothing beats the real deal. Share your journey, warts and all. People connect with humans, not corporations.

Pick your poison, but don’t try to be everywhere at once. That’s a recipe for burnout and mediocrity. People often say: “But I don’t know what platform to start with.” Choose one platform and dominate it. Twitter. TikTok. LinkedIn. They all have hundreds of millions of users. That’s plenty of potential customers. So, which platform you initially pick really doesn't matter all that much.

Then, pick your "content format". Maybe it's memes that make people snort coffee through their nose. Or war stories from the startup trenches that make founders nod in painful recognition. Experiment until you find what clicks.

Real talk. I tweeted for 2 years on Twitter before anyone paid attention. It took me years of consistently publishing before things took off. So, Patience is key.

Overnight, viral sensations aren't the best way to build a following. I'd rather linear growth over exponential. More sustainable.

2. Create lead magnets

Once you've hit that magical 10,000 follower mark, it's time to expand. You want die-hard fans, not casual observers.

Create irresistible lead magnets or as I sometimes call them "value bombs". Templates, e-books, exclusive content – whatever makes your audience's life easier or more interesting. Trade these golden nuggets for email addresses and first-party data. You want this for two reasons. 1) Build affinity 2) have people's emails in case algorithms change and you cant reach them

My personal favorite lead magnet is free communities. I call them "community magnets". I've seen Whatsapp groups and platforms like Skool turn into hotbeds of engagement and customer loyalty.

90% of communities are zombie communities, but if you can craft something where people can level-up, you'll build raving fans.

3. Unbundle existing apps with 1 killer feature

Here's where things get interesting. The SaaS landscape is shifting:

• Big players are trying to be everything to everyone (and failing).

• Users want personalized, niche solutions.

• AI is making it easier than ever to build targeted products.

Your mission... unbundle. Look at the giants and find that one killer feature they're missing or doing poorly. Make it your entire business.

Case in point: Calendly. Scheduling was a pain point buried in bigger CRMs and productivity suites. They pulled it out, perfected it, and boom – a billion-dollar company was born.

Don't reinvent the wheel. Find the squeaky part and replace it with a smoother, shinier one.

4. Change pricing from subscription to lifetime deal or pay-per-usage

Subscription fatigue is real. I can't tell you how many forgotten $9.99 charges I've found on my credit card statement. People are wary.

This is your window of opportunity. Lifetime deals and pay-per-usage models are incredibly attractive right now. They reduce friction and make your product feel like a no-brainer.

​AppSumo built an empire on lifetime deals. Companies like Snowflake are killing it with usage-based pricing. They've got 130% net dollar retention and billions in revenue from it. Be the refreshing alternative in a sea of subscriptions.

5. Build an army of affiliates

Here's a dirty little secret, many of the biggest SaaS companies are essentially glorified affiliate marketing machines. Adobe's affiliate program paid out over $100 million in commissions last year alone. No-one talks about that.

Build your army. Reach out to potential affiliates with personalized Loom videos. Or use AI to do it at scale. Show them exactly how much they could earn promoting your product. Make it a no-brainer for them to say yes.

6. Share revenue with creators (20%-50%)

In the early days, be generous. I'm talking 40-50% revenue share for your top affiliates. It might feel painful, but it's rocket fuel for growth.

As you gain traction, you can dial it back. Because your customer base now will refer other customers. You're no longer starting from scratch.

New affiliates might get 25-30%. Your OG promoters, keep them happy with those higher rates. They're your evangelists.

This will be best money you'll spend. Better give the money to evangelists than to Mark Zuckerberg.

7. Don't raise VC, sell for 5x+ ARR

I've been there. The pitch deck is polished, you're rehearsing your "hockey stick growth" spiel in the mirror. Then the email comes: "I'll give you $2M on a $15M pre."

It's intoxicating. But here's the sobering truth: a $2M ARR SaaS business can easily sell for $10M+ if you've built it right. That's life-changing money without giving away a piece of your company and putting yourself on the VC treadmill for 10 years.

VC money will always be there if you're growing. But do you really need it? Ask yourself the hard questions before you sign that term sheet.

8. Retire or repeat

You've done it. You've built a cash-flowing machine. Now you've got options.

Sell and retire, with a $2M ARR business, $10M+ exits will be there for you. A nice $10M+ exit can set you up for life if you're smart about it.

Or... do it all again. Use your knowledge (and capital) to buy another SaaS app or start from scratch. Your second time around will be even easier.

The beauty of this blueprint? It's repeatable. I've seen founders build entire portfolios of profitable SaaS businesses using this exact playbook.

Remember, the goal isn't to be the next unicorn. It's to build a business that gives you freedom, financial security, and the satisfaction of solving real problems for real people.

Now get out there and build something amazing.

The world is waiting.



Note: I write posts like this every week, packed with free startup ideas, insights on business building, and strategies for succeeding in the online world. It’s called Greg’s letter.

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