Hey - Marc here.

Happy Saturday morning, motivated B2B SaaS Founders!

Here's at least one tip to keep in mind as you grow your B2B SaaS company:

Today's issue takes about 5 minutes to read.

_______________________________________________

In today's issue, I share some key takeaways from a recent interview between Nathan Latka, the host of Daily Interviews with SaaS Founders, and Austin Ambrozi, the COO and co-founder of Doxci. They discussed how their document automation AI SaaS hits $50k in MRR in 12 months.

Austin is an Official Member of Forbes Business Council. With his co-founder Issac Hicks, Doxci was launched 18 months ago, initially focused on the reinsurance industry, but recently expanded to handle documents in any industry. Their mission is to automate paperwork processes—eliminating the need for human involvement.

About Doxci

Doxci is a SaaS product that uses Artificial Intelligence (A.I.), Natural Language Processing (NLP), and Robotic Process Automation (RPA) to automatically read, process, and complete tasks associated with enterprise documents.

While a human might require 5 minutes to handle one enterprise document, Doxci processes over 100k in that same timeframe. From compliance documentation to insurance claims and data structuring, Doxci puts paperwork on autopilot, empowering business owners to prioritize their core activities.

For instance, Ambrozi highlights an insurance industry client utilizing their software to streamline their workflow. Doxci monitors the email inbox, efficiently reads application emails and associated documents, calculates rates, and even sends automated emails to request additional information.

PS Some customers pay around $3k per month, while the smallest clients process around 10k to 12k pages per month. They currently have 8 customers and have served fewer than 10 customers in total.

Challenges

Finding the sweet spot between a fee that covers your costs but doesn't scare potential customers away.

Doxci.ai charges an upfront implementation fee ranging from $15k to $100k, depending on the integration complexity. There are no licensing fees, and the pricing is based on throughput, measured as a cost per page. They are transitioning to set tiers for pricing, similar to purchasing minutes for a cell phone plan.

Advice to Other Founders

Aim to keep your team satisfied with their salaries and future prospects.

Profitability is expected in the near future, especially with the addition of a new client. Ambrozi emphasizes the importance of team morale and maintaining a balance between investments and employee satisfaction.

Strike a balance between affordability and profitability.

They strategically set implementation fees based on the complexity of integration, and they charge based on throughput. Consider the value your product delivers, the competitive landscape, and customer willingness to pay when determining your pricing model.

Don't fear the mid-market.

While enterprises might seem like the holy grail, don't overlook the mid-market opportunities. As public awareness around AI grows, there's a whole world of potential customers waiting to be tapped. Go after them with your innovative solutions and watch your MRR soar.

Bonus

Ambrozi mentions that his favorite book is "The Monk Who Sold His Ferrari" by Robin Sharma.
His favorite online tool for building Doxci.ai is Slack.
He is currently 27 years old.
When asked about what he wishes he knew seven years ago, Ambrozi reflects on the impact of AI revolutionizing various industries.

TL;DR

Doxci.ai launched back in 2021 and won the Nashville startup competition, earning $120k. They were generating around $5k per month a year ago, but now they are generating $50k per month across eight customers. Doxci.ai specializes in automating tasks related to paper, similar to an AI bot. They are currently focused on the insurance industry, which involves a lot of paperwork that traditionally couldn't be automated. They charge a sign-up fee ranging from $15k to $100k. In 2022, they raised a pre-seed round of $75k out of a $10 million cap.

PS Here is a link to the full interview if you are interested in listening to the full episode: Document Automation AI SaaS Hits $50k MRR in 12 months

_________

See you again next week.

Whenever you're ready, there are 2 ways I can help you:

1. 1:1 SOPs Call (Consultation Call for Guidance)

2. Work 1:1 with me to create customized Sales SOPs to remove yourself from the sales process and virtually guarantee that your investment in your next salesperson ensures they will hit their number? (Done for your Service). Click here to see if you qualify.