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🧠 Fastest way to $10k MRR

PLUS - How this solo founder grew his SaaS to $74k MRR in a crowded market...

Happy Thursday! 🎉

Welcome to IdeaHub where 1,800+ SaaS founders read about growth, marketing and product development every week.

This week in IdeaHub…

  • How a solo founder grew his SaaS to $74k MRR in a crowded market

  • The fastest way to $10K MRR with SaaS

  • When should you go full-time?

Let’s jump in… 👇

🔗 The Best Links

$74K MRR in a crowded market - How a locksmith taught himself to code and scaled a SaaS product to $74k MRR in a crowded market.

Distribution vs Product - Is distribution more important than product? This multi-exit founder shares why they think so.

When Should You Go Full-Time? - This Reddit thread discusses how much traction is required before going all in on a project.

IdeaHub
The Breakdown

The Fastest Way To $10K MRR With SaaS

$10,000 in monthly revenue (MRR) is often a golden number for founders.

It’s the number most need to go full-time or start hiring.

So what’s the fastest way to get there?

Let’s break down the most common SaaS models and see which wins:

1) B2C with a free trial

B2C SaaS products usually fall into the following categories:

  • Utilities (e.g. calculators, VPNs etc.)

  • Entertainment (e.g. news or music products)

  • Travel

  • Health

  • and many more…

Most of these operate the following model:

  • Free trial limited by time or features

  • Paid plan usually ~ $10/month

With 6,000 new customers each month, 30% converting to paid, and 60% sticking around after 30 days:

You’ll make $10,800 a month.

This is why B2C is hard.

It’s difficult to bring in 6,000 new customers every month.

Plus the 30% paid conversion rate here is optimistic, for many it can be a lot lower.

See how your free → paid conversion rate stacks up in this guide.

Luckily there’s one thing you can do to make this much easier…

2) B2C paid-only

Here I’ve simply removed the free trial from the equation.

With 1,700 new customers each month and the same 30-day retention of 60%:

You’ll make $10,200 a month.

That’s the same revenue as the previous example but with < 30% of the new customers each month.

Plus it means 30% less marketing effort and 30% less customer support.

It’s clear free trials are good at keeping you busy - but they don’t pay the bills!

3) Low-ticket B2B SaaS

Here we’re talking:

SaaS products in this category often solve a niche problem.

Ignoring a free plan like before, products generally follow a tiered model:

  • 60% of users on a ‘basic’ plan: ~ $19/month

  • 15% of users on a ‘middle of the road’ plan: ~ $49/month

  • 5% of users on a ‘pro’ plan: ~ $99/month

With 450 new customers a month and 70% sticking around after 30 days:

You’ll make $10,665 a month.

Now we start to see the power of B2B SaaS.

Generating 450 new customers every month is still difficult, but it’s much easier than 6,000.

4) High-ticket B2B SaaS

Here I’m not thinking of Salesforce or Workday.

I’m more thinking of products that solve a niche problem really well.

Here are a few examples:

Pricing models vary but often it’s 3 tiers:

  • 60% of users on a ‘basic’ plan: ~ $99/month

  • 15% of users on a ‘middle of the road’ plan: ~ $199/month

  • 5% of users on an ‘enterprise’ plan: c. ~ $1K/month

With only 60 new customers a month and 80% sticking around after 30 days:

You’ll make $10,027 a month.

High-ticket B2B SaaS is the fastest way to reach $10K MRR.

And honestly, the pricing here is very conservative.

It’s not uncommon for SaaS products that solve a unique problem extremely well to command anywhere from $500 → $5K/month.

And customer retention is usually much higher.

B2B software is ‘sticky’ by nature and those that optimise for this will see customers being loyal for years.

IdeaHub

You’ll want to see this…👇

How To Build ‘Sticky’ SaaS - How to measure and optimise ‘stickiness’ to keep customers around for longer.

5 SaaS Predictions For 2024 - My thoughts on the top growth and product development trends for the next 12 months.

See you next week :)

- Charlie

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