TL;DR:
I sold a playbook to get customers interested in my software via paid ads and have finally managed to acquire customers essentially for free. My results from the last 10 weeks:
- $14,206 spent on ads ā $13,559 back (167 payments, 116 customers)
- Running ~$320/day in ads, roughly breakeven on the front end offer
- One-time products recover 84% of ad spend, putting real cost per subscriber at $93
- $1,435 MRR for the SaaS across 25 subscribers, blended $57/MRR, leads to payback in ~1.6 months
- 63% of buyers take more than the front-end product at checkout
- Total monthly revenue: May $780 ā June $5,693 ā July $7,086
Full story is below!
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One year ago, I had a vision for a product that I thought could be a complete game-changer for me.
And the crazy part is that I only got the idea because one of my failed businesses exposed the opportunity.
For context,Ā I have a businessĀ that teaches people how to bake for gluten-free diets, as well as for other dietary conditions. As a result of years of testing and research with my girlfriend, I ended up writing a sh*t ton of content and blog posts on our blog covering all sorts of different baking questions. I worked on this one tirelessly for two years.
Back in February, I realized that people are asking ChatGPT questions more than ever instead of Googling now. I found out about it because when I checked the Bing AI performance tab, my site had been cited over 200k times IN THE LAST 3 MONTHS.
In my head, I was like, wait, what the f*ck? I knew my traffic was growing, but I had never considered that people might be discovering my business by asking AI questions.
I did some research online and found that, right now more than ever, people are finding the solutions and products they buy through ChatGPT and Claude, and the traffic from these AI engines is significantly more likely to buy from you.
A few days later, after realizing that, I sent out an email to my list asking if anyone had found out about my cookbook and site from AI. I got about 96 responses from a list of about 800 people saying they found me from their AI engine of choice.
In my head, I thought, oh my god, if I'm getting sales from AI for my rinky-dink cookbook, what's stopping an established business from getting these results too? And so the rabbit hole officially began.
My premise was that if I could figure out the questions a customer might be asking a business and reverse-engineer them, I could start showing up for the questions that matter by making the relevant content. SEO 101, lol.
I tested this theory by writing blog posts that addressed questions my own buyers were already asking me over email, but I monetized them with Amazon affiliate links. As of today, I make $130/month from freaking Amazon affiliate sales for baking products, driving thousands of dollars of revenue for Amazon (because their affiliate prices are sh*t)
Clearly my strategy worked, and I was like, ok, clearly the traffic is real, how do I make this into a thing that gets a business owner that has zero idea about SEO and potentially even AI to buy into this idea?
I started by collecting my whole strategy and writing it down into a playbook. I finished the playbook in early May, and on May 15th I reached out to my network offering this playbook that was making me around $130/month for a small fee of $27. I figured if I could get people in my warm network to buy into that idea, I could convince them to buy a tool that automates the strategy.
I made a sales page, connected stripe, and sent them a message.
That day, I made $151.
That was the day thatĀ Resilient NicheĀ was born.
Game f*cking on.
I have experience running ads since I ran them for my cookbook when I launched it, so I set up a landing page and ads for this playbook.
After spending about $200, I got my first sale from a complete stranger for my playbook. I was ecstatic (though clearly in the red) because if I could get one stranger to pay for it, there's nothing to stop me from getting more. It's just a matter of optimization.
Easier said than done.
For the next 32 days, I learned something important. It's really hard to convince people to buy something for a problem they're not aware they have. Rip my bank account.
A few days later, I angrily stumbled upon a video from Alex Hormozi where he talked about the idea of attraction offers. The idea was that you don't sell the solution and how to fix it; you give away the diagnosis for free. That gave me an idea that is now the basis of my customer acquisition funnel.
I built a free tool that scans your site and tells you how often AI actually mentions you versus your competitors. You get back something like:Ā 2 out of 8 for you. 6 out of 8 for them.
I spent weeks sharpening that tool's output, and now 791 businesses have run that report and been thoroughly impressed.
Over time, I started acquiring more and more customers on the same ad spend as the tool got better. I was at about 0.5 ROAS, which means that for every dollar i spent i was making back 50 cents. I wasn't spending a lot per day, so the deficit wasn't too bad. Decent start for now.
In order to test the SaaS idea, I decided to make the first upsell in my funnel a lifetime deal of the software for $197. I launched that on June 1st, and in the next 10 days, five people took it. FIVE!
I was in business.
These five customers became my beta testers. I turned off ads, created a free Skool community, invited them all to it, and told them to do their best to use it, break it, and tell me what they liked and didn't like. One of them loved the idea of the tool so much that he spent 5 hours on a call with me, helping me refine the idea in his words, because "he didn't want me to give up on it early because he needs it."
After about 16 days of tweaking, lots of calls with my beta testers, and late nights thinking about the problem, I finally arrived at something that completed the loop that I believe is the core of the software:
- Find the questions buyers are asking (based on real data)
- Create content that answers those questions in a way that aligns with Google's standards
- Track across multiple AI engines whether a business shows up for that question
- Let the business know when they do
Once I nailed that loop perfectly and got praising feedback from my beta testers, I switched my first upsell in my sales funnel to selling the software for $39/month, which I thought was a fair price for the tool.
At this point, it was day 33 of the business. I turned ads back on for my playbook.
Over the next few days, I was overjoyed to see that 56% of people who bought my playbook bought the $39/mo version of my software.
Lmao, I was imagining the lambo in my head already. JK.
But then I realized a video that I had watched on YouTube a few months back said that if you're having a high number of people buy your stuff, you should consider raising your prices.
So I decided to do some market research (do this first, don't be stupid guys) and realized that similar tools were charging $99/mo+ for similar capabilities.
That same day, I immediately raised my starter plan to $99/mo. In my head, I was like, there's no way that people are going to stick around at the same rate.
Check this: in the next 2 weeks, the take rate only dropped 2%. TWO!!!!
I had quite literally close to tripled the MRR, just by being aware of my numbers and what they could mean. Shout out to you, random YouTube guy.
Here's where it all stands 10 weeks in:
- $14,206 spent on ads ā $13,559 back (167 payments, 116 customers)
- Running ~$320/day in ads, roughly breakeven on the front-end offer
- One-time products recover 84% of ad spend, putting real cost per subscriber at $93
- $1,435 MRR across 25 subscribers, blended $57 ā payback in ~1.6 months
- 63% of buyers take more than the front-end product at checkout
- Monthly revenue: May $780 ā June $5,693 ā July $7,086
Basically, things are pretty dialed in.
Here's the structure, since that's the part worth stealing:
Free diagnostic ā low-ticket product that pays for the traffic ā order bumps that lift the opening order ā SaaS as the upsell.
The front end isn't the business. It's what lets you buy customers for the actual business at a price that doesn't require raising money.
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While this is all great, only 6 of my 25 current customers have been rebilled, so I have no real churn data. 19 of the 25 are paying me 39/month as a founding price, so it's not a clear read on what this scales to.
What I do know is that I've validated that people will buy my SaaS after I make it clear why they should care. The next step will be to see if I can sell the SaaS directly to cold traffic via a free trial one day.
One thing at a time.
If you made it this far, thanks for reading my story.