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.

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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 Kerim Al-Lami, the co-founder and CEO of Revolution Design. They discussed how they acquired four customers paying five grand a month.

Kerim Al-Lami helps tech startups avoid complicated in-house hiring, overpriced design agencies, and unreliable freelancers with his company, Revolution Design. They can hire the top one percent of senior design talent in one day on a monthly subscription.

About Revolution Design

Revolution Design was launched in January of 2023. Despite being relatively new to the scene, they are already serving four paying customers. These clients found their services appealing enough to commit to a monthly payment of $5k each, with the flexibility to pause or cancel at any time added to the appeal.

Within those eight months since their launch, they had achieved an impressive milestone, generating a monthly revenue of $20k. This rise in revenue underscored their effectiveness in bridging the gap between design agency services and SaaS subscription models.

They were already profitable within its first year of operation. In the month of June, they boasted profits of approximately €15k. They are eyeing substantial expansion, with a goal of reaching 20 clients and achieving a monthly revenue of $100k by year-end.

Challenges

Customer churn in the design industry.

Many clients tend to hop between agencies, freelancers, and in-house designers due to project delays or dissatisfaction. They address this by prioritizing client satisfaction through quick turnaround times and high-quality work, emphasizing the importance of delivering on promises to retain customers.

Advice to Other Founders

Bypass the hourly dilemma.

Revolution smartly avoids the hourly pricing trap by offering fixed monthly rates. Kerim highlights how hourly rates incentivize delays – slow and steady, you earn more. Simplicity and reliability are the real MVPs in retaining customers.

Profits over paychecks.

Revolution prioritizes reinvesting profits back into the company rather than paying themselves salaries. In the early stages, growth matters more than your own paycheck. Be ready to reinvest for future success.

Tripwire your way in.

For Revolution, offering a website audit for $4.95 at the top of their funnel is like opening a mini-gate to their sales kingdom. Even if it doesn't bring huge immediate profits, it's a foot in the door, giving you a chance to win their trust and, eventually, their wallets.

Inbound over cold outreach.

Kerim's first four clients all came inbound, showing that a well-crafted LinkedIn post and leveraging past connections can be more potent than a cold outreach strategy. Remember, your network is your net worth – sometimes, you don't need to shout; they'll find you.

Bonus

1. Kerim's top business book is "The Great CEO Within" by Matt Mockery.

2. Kerim swears by the dynamic duo of Figma and Webflow as his favorite online tools for crafting Revolution Design.

3. The piece of wisdom he'd give his younger self two years back was to urge himself to crank up his ambition and embrace more calculated risks.

TL;DR

Revolution Design is on a mission to revolutionize the design world. They're making design projects faster, cost-effective, and dependable. With just eight months under their belt, they've already secured four clients, each paying a hefty $5k every month. This unique blend of design agency and subscription model is keeping their clients happily stuck with them. Despite industry norms of high customer churn rate, Revolution Design has managed to retain all four of its customers. The future looks promising for this innovative venture.

PS Here is a link to the full interview if you are interested in listening to the full episode: I smell a $10m ARR SaaS Company. Why this 22 year old is smart to start with an Agency?

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See you again next week.

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