I Built a $1M/y SaaS with Claude Code, Here's How — Transcript
Full transcript
- 0:00Hey, so we just hit a million dollars in
- 0:01ARR with our SaaS product, which we use
- 0:03Cloud Code to build. And I know a lot of
- 0:04people here are probably interested in
- 0:05using Cloud Code either independently or
- 0:07within an organization to put together
- 0:09some sort of SaaS app and then take it
- 0:10to market. So, I figured in this video
- 0:12I'd run you through basically everything
- 0:13that we did in order to get to where we
- 0:14wanted to and uh also share all the
- 0:16learnings along the way. So, what is the
- 0:18SaaS? It's called Clarivo. It is
- 0:19essentially an AI-enabled power dialer.
- 0:23And just to unpack those words, what
- 0:24this does is it allows us to make more
- 0:26calls per unit time and then have more
- 0:28of those calls picked up on the back
- 0:30end. And that works really well and is
- 0:32very powerful if you're in an industry
- 0:33that is traditionally pretty call-based.
- 0:35So, either you have some sort of funnel
- 0:37where you have inbound leads and you
- 0:38need to call them very quickly and en
- 0:40masse or uh you know, you're doing like
- 0:42traditional cold calling or outbound
- 0:43calling to try and acquire clients whom
- 0:45you don't have preexisting relationships
- 0:47with. And so, anytime you're starting
- 0:48any business, whether it's a SaaS,
- 0:49e-com, you know, service company,
- 0:51whatever, you need to have a very
- 0:52clearly defined problem that you're
- 0:53trying to solve. And so, I'm going to
- 0:54run you guys through exactly how we
- 0:55picked this problem later, but
- 0:57essentially at a high level, we picked
- 0:58this because it has very high a lifetime
- 1:01meaning that a single client that we get
- 1:02on our service will pay us a lot of
- 1:04money over the course of the next few
- 1:05years. Uh it's very low churn because
- 1:07once we install it into a company, it's
- 1:09very unlikely that they're going to just
- 1:10bow out. Their whole infrastructure
- 1:12depends on us. And then, it's also very
- 1:14straightforward and easy to do in a
- 1:16market that didn't have a lot of uh
- 1:17other entrants. Cloud Code helped us
- 1:19come up with every single way and I'll
- 1:20run you through a quick step-by-step on
- 1:22how to do it in a second. But just so
- 1:23that we're all clear, essentially, you
- 1:25know, an industry competitor might make
- 1:27100 calls an hour. These might be
- 1:28outbound calls to try and close some
- 1:30deals to strangers they've never met
- 1:31before or could be inbound calls calling
- 1:33a list of people that opted into some
- 1:35offer. From those 100 calls, because of
- 1:37dial times, connect times, people aren't
- 1:38present, people aren't picking up the
- 1:40phone from numbers they don't recognize,
- 1:42maybe only 40% of those will actually
- 1:43pick up. So, if you think about it right
- 1:45off the bat, a salesperson's making 100
- 1:46calls, only 40 people are picking up,
- 1:48there's sort of a 2.5x drop-off right
- 1:50there. And so, if you just do the math,
- 1:51you have a salesperson working 8 hours a
- 1:52day, they're capable of getting 40
- 1:54pickups an hour, it's like how many
- 1:55actual conversations are you having?
- 1:57Let's say they do that every day for a
- 1:58month, maybe they make 10K a month. What
- 2:00Clara does is allows you to make more
- 2:01calls in the front end. So now we're
- 2:02capable of doing what say 200 calls an
- 2:04hour instead, and then it also increases
- 2:06the fraction of people that pick up
- 2:07because the calls are more recognizable.
- 2:09We use a couple of cool cloud code-based
- 2:11algorithms to like dial multiple numbers
- 2:13simultaneously and then also double and
- 2:15triple dial if needed. And then
- 2:17basically at the end result is you just
- 2:18make more money. So in our case we have
- 2:20more calls, we have a higher pick up
- 2:21rate and so there's significantly more
- 2:22people that are actually on the phone.
- 2:24And uh right now we're capable of
- 2:25generating, you know, somewhere between
- 2:2750 to 80% improvements to the companies
- 2:29that we work with. We took a pretty
- 2:30sizable business from Texas from
- 2:32somewhere between 3 to 5 million dollars
- 2:34per month, uh which is almost uh you
- 2:35know, double their their revenue. And so
- 2:37this is the sort of value proposition
- 2:39that Net Clever has. So how do you
- 2:40actually use Claude here? Well, I should
- 2:41note that we didn't actually know how to
- 2:42solve this problem when we started. Uh
- 2:44we actually had Claude walk us through
- 2:46every possible way that it knew of to
- 2:48improve pick up rates and increase the
- 2:50total number of calls we could make per
- 2:51unit time. And uh most of the ideas were
- 2:54absolute trash. But after mining Claude
- 2:56for 200, 300 ideas, a couple of them
- 2:59were actually pretty good. And so the
- 3:00process, if you're interested, is we
- 3:01literally said, "Hey, we're building
- 3:03insert product here. You know, it is in
- 3:06our case an AI-powered dialer for local
- 3:08service businesses like HVAC, plumbing,
- 3:10roofing, et cetera. Our core metric to
- 3:12optimize is call pick up rate, which is
- 3:15defined as the percentage of dialed
- 3:16numbers that result in a live human
- 3:18answering within say 10 seconds." So
- 3:20here we have the current baseline, we
- 3:22have the industry ceiling, and then we
- 3:23even had our target. So what I told it
- 3:25to do was spawn 10 parallel sub agents.
- 3:27Each one should propose 10 distinct
- 3:28mechanisms we can use to increase pick
- 3:30up rate. I also want you to diverge each
- 3:32of these wildly. So do algorithmic,
- 3:34behavioral, infrastructural, regulatory,
- 3:35psychological, time-based,
- 3:36identity-based mechanisms. Don't
- 3:38self-censor for any feasibility. I'm
- 3:40going to do all this later. And so after
- 3:42it comes up with all of these ideas, and
- 3:43it's going to come up with a lot of
- 3:44ideas as I mentioned, what we're going
- 3:45to do is we're just going to take them
- 3:47and then verify, "Okay, is this a like a
- 3:48total BS idea or is it like an okay
- 3:50idea?" And so here we go. We now have a
- 3:52variety of results. A lot of them are
- 3:54hard duplicates, as well. But, just
- 3:55going top to bottom, the first is a
- 3:57temporal propensity model, which is
- 3:59basically using AI to determine
- 4:02an optimal call window, aka when to call
- 4:04people. So, this is legitimately
- 4:05something that we do at Clara. We have
- 4:07optimal call windows based off of
- 4:09average pickup times per, you know, time
- 4:11of day, essentially. But, at the same
- 4:13time, some of these other ideas are
- 4:14total BS. So, weather times pickup
- 4:16regression, you know, can we run a
- 4:17regression, which is a statistical
- 4:19analysis, on historical pickup rates
- 4:21versus hyper-local weather. Uh you know,
- 4:23just off the top of my my head, that's
- 4:25probably not going to be anywhere near
- 4:26as valuable as doing some sort of like
- 4:27call-based on time, let's say. And so,
- 4:30you're going to get tons of ideas like
- 4:31these, and yeah, the majority of them
- 4:32are going to be junk. But, you're going
- 4:34to find a couple that work. And so, in
- 4:35our case, this is literally what we did.
- 4:37We ideated over all of the possible ways
- 4:39to improve something. After you're done
- 4:40with that, we shortlist one of these
- 4:42ideas. And so, in our case, predictive
- 4:44pacing was actually a pretty well-known
- 4:45idea. It's not something we invented.
- 4:47Clara could definitely didn't invent.
- 4:49But, you know, it's an idea that we
- 4:50wanted to explore and see, okay, what
- 4:51sort of alpha would there be if, you
- 4:53know, rather than just call one person,
- 4:54they actually call multiple people
- 4:55simultaneously. Essentially, because the
- 4:58amount of time it takes to dial somebody
- 4:59is very fixed. Like, if you think about
- 5:01it, you enter your phone number in, and
- 5:03then you stand on the line, it goes
- 5:04din-din-din, din-din-din.
- 5:06What that means is if the person doesn't
- 5:07pick up, you just wasted all that time
- 5:09as a salesperson. So, if your your goal
- 5:11is optimally to be more efficient, the
- 5:13actual optimal play is not just to call
- 5:15one person and have the din-din-din,
- 5:17din-din-din. It's actually to call two
- 5:19people and have the din-din-din,
- 5:21din-din-din. Because if one of those
- 5:22people doesn't pick up, well, no
- 5:24problem, you've taken the total amount
- 5:26of time it would have made to make that
- 5:27dial, and then you connected with this
- 5:28person anyway.
- 5:29And so, this isn't just limited to two
- 5:30people. We actually use an algorithmic
- 5:32model that specifically imbues like
- 5:35offsets into our multiple call thing
- 5:38that is proven, and we've seen it in our
- 5:40data, to call and get picked up by the
- 5:43optimal amount of people per unit time.
- 5:45Do some people pick up at the same time,
- 5:47And then that results in kind of an up
- 5:48weird awkward situation? Yeah, but we
- 5:50also have a built-in call routing so
- 5:52that if, you know, we make multiple
- 5:53dials here, one of them doesn't get
- 5:55picked up. It actually goes to an agent
- 5:56that might actually be available. So,
- 5:58it's a queuing system which, you know,
- 5:59Claude code obviously helped us build.
- 6:00But it all started like right here. This
- 6:02is the exact same approach that we use
- 6:03in order to figure all that out. And so,
- 6:06once you have this simulation harness,
- 6:07you know, you feed it in a bunch of data
- 6:08on historical call times, which we
- 6:10accumulated through our own businesses
- 6:11and then businesses of other people. Now
- 6:13we have something we can run stats on.
- 6:15And we can figure out, okay, what's the
- 6:16optimal offset for this, you know, batch
- 6:18of 50,000 calls, let's say, in order to
- 6:20determine, you know, what our what our
- 6:22offset needs to be. Once you're done
- 6:23with that, you feed it in another prompt
- 6:25that says, "Hey, I want you to now
- 6:26implement this predictive pacing
- 6:28simulation from the spec above. Here is
- 6:30some historical data. I want you to
- 6:31optimize for these things using, in this
- 6:33case, Bayesian optimization." Obviously,
- 6:35this is going to depend on the specific
- 6:36problem you're trying to solve. But what
- 6:37I'm trying to say is, we just had Claude
- 6:39code, you know, figure out
- 6:41the ways to improve what we wanted to
- 6:43improve, and then actually implement
- 6:44that the simulated environment. Finally,
- 6:46you build the thing, which in our case
- 6:47was this predictive pacer, and then you
- 6:49roll it out in real businesses. And, you
- 6:51know, I think this is probably the thing
- 6:52that's going to trip up a lot of people
- 6:54because they don't have real
- 6:55pre-existing businesses that are
- 6:56currently live right now that they can
- 6:58test things out on. And that's why data
- 7:00is ultimately the quite the moat. If you
- 7:01have the data and then you also have the
- 7:02means to deploy something and do, you
- 7:04know, parallel testing, you can you can
- 7:06usually get through this sort of thing
- 7:07way faster. Okay, and that takes me to
- 7:08this general sort of loop. In order to
- 7:11do this sort of thing effectively, what
- 7:12you always start with is you start by
- 7:13defining a problem. Of course, you're
- 7:15going to have Claude code help you do
- 7:16the idea mining and the problem
- 7:18definitions. That's okay. Um but in our
- 7:20case, we just knew this was a problem
- 7:22that a lot of people were willing to pay
- 7:23a fair amount of money for. Then you
- 7:24say, "Hey, Claude, how can we solve this
- 7:26problem? I want you to enumerate, aka
- 7:28list, all possible solutions to, you
- 7:31know, the problem of let's say call
- 7:32pickup rates."
- 7:34Then what you do after that is you apply
- 7:35your little human brain, your little
- 7:37sponge, and you say, "Okay, which one of
- 7:39these are total and which one
- 7:40of these are actually somewhat
- 7:41feasible?" And so, in our case we had a
- 7:43short list of maybe five or six out of
- 7:44several hundred that were actually
- 7:46feasible. And you know, over time we're
- 7:48going through the the the the rest of
- 7:49them as well just to verify if this is
- 7:51something that can actually add some
- 7:52alpha, some delta to, you know, call
- 7:54pickup rates. But the vast majority of
- 7:56the time it's one of those things that
- 7:56you'll just read and you'll be like,
- 7:57"Okay, yeah, this is obviously the one."
- 7:59Once we're done, we design some
- 8:00simulations with Claude code, usually
- 8:03based off some form of historical data,
- 8:04and then we run a statistical model, in
- 8:06our case the predicted pacing algorithm,
- 8:08in order to actually have that perform
- 8:09better. Then we iterate a simulator,
- 8:12okay, we have Claude code just like
- 8:13change the the the parameters of our
- 8:15models so that it gets better and better
- 8:16and better. And then finally we have
- 8:18like a real life stress test where we
- 8:19actually roll it out. And I mean, it can
- 8:21fail at any step along these lines here.
- 8:23We've had a variety of, you know, pretty
- 8:25cracked out approaches that we thought
- 8:26were going to work really well in the
- 8:28sim because we saw better improvements
- 8:29in our stats, but then when we rolled
- 8:31them out to real life we're like, "Oh my
- 8:32god, wait a second, there's actually
- 8:33this third variable here that confounds
- 8:36and kind of ruins everything." So, you
- 8:38know, it's not easy. If it was easy,
- 8:39you'd have everybody doing it, and if
- 8:40everybody was doing it, nobody would be
- 8:41making any money, but this is how we
- 8:44ideated on the set of core features of
- 8:47Clarvo that ultimately ended up making
- 8:48us a fair amount of money. But the
- 8:49pricing is 250 bucks a month, which is
- 8:51not like a scientifically determined
- 8:53price. We started by pricing close to
- 8:55like 100 bucks a month, and we figured
- 8:56out that people were willing to pay for
- 8:57it, so then we increased the price,
- 8:59figured out people were still willing to
- 9:00pay for it, increased the price. Uh you
- 9:02know, I think people that are trying to
- 9:03use these big statistical pricing models
- 9:05or have AI like determine what the best
- 9:07price is are usually just wrong. The
- 9:08much easier and simpler way is just like
- 9:10pick a price and then sell it to a bunch
- 9:12of people, and if it's easy and they say
- 9:14yes, then just keep increasing the price
- 9:15until eventually it gets hard. In
- 9:16general with SaaS companies there's a
- 9:18big spectrum of possible prices. Um if
- 9:20this is our spectrum here, at the very
- 9:22left is basically what is called um low
- 9:25touch. Low touch SaaS businesses,
- 9:27generally speaking, are like self-serve.
- 9:29What that means is it's like a
- 9:31self-guided onboarding. There's like
- 9:32maybe a video from the founder. You pay
- 9:33like 5, 10, 15, 20 bucks a month, and
- 9:36then everything's is kind of done for
- 9:37you. And, you know, these can be really
- 9:39good, but my head cannon, my my personal
- 9:41belief is in an era where Claude code
- 9:44and other AI agents are capable of
- 9:45whipping up basically any SaaS,
- 9:47you know, like you got to ask yourself
- 9:48at a certain point any business owner
- 9:50will be willing or able to make the
- 9:52trade-off of just paying money for
- 9:53tokens to actually just rebuild the
- 9:54whole thing. So, rather than us sort of
- 9:57going really cheap and really small and
- 9:59solving a tiny problem, we decided to go
- 10:01the exact opposite direction, um and we
- 10:02ended up solving a pretty big problem
- 10:04kind of close to the enterprise
- 10:06uh with what's called a high-touch SaaS.
- 10:08So, Clervo sits sort of right around
- 10:09here, and typically we don't just sell
- 10:11individual licenses. It's not like uh
- 10:13you know, a single user can't sign up if
- 10:14they want to. But, in general, we work
- 10:16with companies and then roll this out to
- 10:17a pre-created team of people that are
- 10:19doing calling. So, for instance, you
- 10:21know, we sign a 100-seat deal at $250 a
- 10:24month, well, if you think about it kind
- 10:26of mathematically, that's $25,000 MRR,
- 10:28which is 300k ARR. So, that's more or
- 10:30less what we've done. We've closed a
- 10:30handful of deals with sort of like
- 10:32mid-market uh uh to maybe larger uh
- 10:34businesses that operate in a variety of
- 10:36very call-heavy industries. Only takes a
- 10:38couple of those people to say yes to
- 10:40roll it out to their team and then make
- 10:41a fair amount of money. On the pricing
- 10:42point, my big take on a lot of this is
- 10:44nowadays anybody can build virtually
- 10:46anything. If you look at the total
- 10:48number of commits over time, okay, they
- 10:51are skyrocketing, and that's because AI
- 10:52is doing the vast majority of the
- 10:53intellectual heavy lifting now. So, it's
- 10:56no longer can you build insert software
- 10:58product here, cuz we can all build it.
- 11:00The the the bottleneck, the mode, like
- 11:02the value that you have is what should
- 11:04you build, and you know, essentially how
- 11:06should you price. So, what you quickly
- 11:07realize is that the vast majority of
- 11:09frameworks are total fluff. Now, we
- 11:11tried a lot of agent frameworks for
- 11:13Clervo. We tried Hermes, we tried Open
- 11:16Claw, we tried a bunch of these context
- 11:18libraries, uh basically made like vector
- 11:20DBs of your memory. We probably tried
- 11:22like 50 different approaches. And I can
- 11:24definitively say for the purposes of
- 11:27creating a software product that later
- 11:29generates revenue, basically every
- 11:31additional framework you use is
- 11:33inversely correlated with the amount of
- 11:34money you make. Cuz every time you jump
- 11:36on a different framework, you are not
- 11:38only distracting yourself and pulling
- 11:40away from like the thing that you're
- 11:41trying to build. Uh typically, you have
- 11:44like regression within whatever the code
- 11:45base is because now the prompt is being
- 11:48understood or mediated a little bit
- 11:49differently than it was before. For
- 11:51those of you guys that don't know,
- 11:51regression is just where, you know, you
- 11:53had an approach previously that worked
- 11:54really well. Let's say some vanilla
- 11:56thing with like a small little cloud and
- 11:57MD. Uh but because now you're you're
- 11:58doing it through a different framework,
- 12:00like a lot of the assumptions and
- 12:01memories and and and things that the
- 12:02model used to know about your code base
- 12:03no longer works. Uh which is quite
- 12:05unfortunate. So, you know, rather than
- 12:07jump around a lot and try and like
- 12:09uh aim for that 100% quality uh or like
- 12:12a 100% score uh IQ test of the model, I
- 12:16would rather have the model work 90% as
- 12:19well of like its total potential, let's
- 12:21say, but I'd have it work consistently
- 12:23and be the same every single time. The
- 12:24real value that I think not a lot of
- 12:26people understand is that, you know,
- 12:29the intelligence comes from the model
- 12:30itself these days. It does not come from
- 12:33the shiny framework that wraps around
- 12:34it.
- 12:35You slapping on some new framework to,
- 12:38you know, the way that your your team is
- 12:39building on cloud code is kind of like
- 12:41uh people that put a fuzzy cover on
- 12:42their steering wheel and then they
- 12:44pretend that that's the reason why their
- 12:45car works so good. Like obviously,
- 12:46that's not the reason why your car works
- 12:48so good. Your car works good because it
- 12:49has wheels, it has an engine, it has a
- 12:51chassis, and so on and so forth. It's
- 12:52the craftsmanship of the person that
- 12:54built all of that. Uh but, you know, you
- 12:57cuz you want to be all special and and
- 12:58new and stuff like that, uh put put your
- 13:01little fuzzy steering wheel on and then
- 13:02go like, "Oh yeah, this is way better."
- 13:04It does not a genuine improvement.
- 13:05That's just your subjective improvement.
- 13:07And so, I think human beings, we want to
- 13:08take credit for everything even if it's
- 13:09not necessarily ours. And so, we do the
- 13:11uh virtual equivalent of slapping on a
- 13:13bunch of like fancy fuzzy covers, aka
- 13:15all these Hermes agents and and and open
- 13:17claw tools and stuff like that. Uh when
- 13:20in reality, the thing that's making the
- 13:21car go is is the is the base model. And
- 13:23so, that's why if you guys look deep
- 13:25into the people that actually like
- 13:26created a lot of these technologies.
- 13:28Like Boris Cherny for instance, who's
- 13:30one of the creators of Claude code.
- 13:31These people typically have like nothing
- 13:33of substance in their Claude.md files.
- 13:36They have nothing in their system
- 13:38prompts. They're literally just using
- 13:40the vanilla intellect of the model. And
- 13:42the vanilla intellect of the model is
- 13:43usually, for all intents and purposes,
- 13:45pretty damn good. You'll only get
- 13:46marginal improvements applying one of
- 13:48these frameworks. And what you find is,
- 13:49you know, Claude code's getting so good
- 13:51so quickly nowadays that if there is a
- 13:53marginal improvement that gives you like
- 13:54a 5% a plus ROI, the next generation of
- 13:57the tool, maybe like three or four days
- 13:58later, will actually already include
- 14:00that. Either hardcoded into its system
- 14:02prompt or maybe actually just part of
- 14:03like the training of the model. The
- 14:05second thing is to pick problems that
- 14:06actually pay. And so, the idea is, okay,
- 14:09you can build more or less anything. And
- 14:12so, this left-hand side of the Venn
- 14:13diagram are all of the things that you
- 14:15could build, and every green dot is a
- 14:16thing that you've decided to build.
- 14:18You're not going to make any money.
- 14:20What you want to do, okay, is find that
- 14:22small little slice of the Venn diagram
- 14:25on the right-hand side that people will
- 14:26actually pay for. So, these are things
- 14:28like red-hot problems. They're
- 14:30industries and niches that have big
- 14:31budgets. It's people with a pre-existing
- 14:33pain. And then what you want to do is
- 14:34you just want to focus all your time
- 14:35over here.
- 14:36And so, with Clarabridge, that's what we
- 14:37did. We saw just how inefficient a lot
- 14:39of sales people were and how literally
- 14:41just getting on a power dialer, cuz this
- 14:44isn't a new idea to power dialer,
- 14:46but we saw like the difference between
- 14:47not having a power dialer and then
- 14:48having a power dialer was like 3x
- 14:51effectiveness. Then we're like, "Okay,
- 14:52what if we could just make actual
- 14:53pre-existing power dialers even better?"
- 14:55And we're like, "Okay, if we can
- 14:56generate even like a 2x effectiveness,
- 14:57we'll be able to to take a large portion
- 14:59of the value that we provide for
- 15:00companies."
- 15:01And so, that's that's the most That's
- 15:03sort of where you need to sit if you
- 15:04really want to crush it in SaaS
- 15:05nowadays. And so, everything exists on
- 15:06this problem-value spectrum. You know,
- 15:09on the left-hand side, you have a bunch
- 15:10of lukewarm problems. These are things
- 15:11that are nice to have, but they're not
- 15:13necessary to have.
- 15:15And this is unfortunately where probably
- 15:17like 90% of people spend their time.
- 15:19And I'd built, you know, a a of demos
- 15:21showing you how you could put together
- 15:22to-do apps and simple browser extensions
- 15:25and simple productivity tools and so on
- 15:26and so forth. But, the harsh reality is,
- 15:29you know, if the problem isn't big
- 15:30enough to justify somebody
- 15:32uh you know, choosing your SaaS over
- 15:34like building it all themselves because
- 15:36as mentioned, software's now quite easy
- 15:37to build. Anybody can just
- 15:39uh convert tokens into product just at
- 15:42some sort of exchange rate. You know, if
- 15:44it's not a big enough problem, people
- 15:45are just going to do that and the
- 15:47longevity of your SaaS is going to be
- 15:48significantly smaller than if picked up
- 15:50a red-hot burning problem.
- 15:51So, in our case, we picked uh something
- 15:53that is currently costing organizations
- 15:54millions of dollars a year. They'll pay
- 15:56anything to fix their to fix their
- 15:57pick-up rates or improve it if they know
- 15:59that it's an option. And uh so, this is
- 16:01more or less what what we've done.
- 16:03So, instead of solving a, you know,
- 16:06I don't know, uh marketing for dog
- 16:07walkers where it's like the average dog
- 16:09walker probably makes like a thousand
- 16:10bucks a month or something like that.
- 16:12You know, solve a core need for a large,
- 16:16usually mid-market and up style company.
- 16:18Uh people that actually have budgets and
- 16:20typically also have many seats that
- 16:21would need to subscribe to these budgets
- 16:23in order to solve said problem. So, as
- 16:24mentioned, uh we implemented this on one
- 16:26of our eight-figure clients and it says
- 16:27uh a year here, but it's it's literally
- 16:28a month. I think the AI just didn't
- 16:30believe me when I said it was
- 16:31legitimately a month. Uh and we took
- 16:33them basically uh we increased their
- 16:35their monthly revenue by 66%.
- 16:38And so, if you think about it, like what
- 16:39did we do? The delta there is two
- 16:41million a year in revenue.
- 16:42And typically the way that it works is
- 16:43if you solve a problem, okay, you are uh
- 16:47I don't want to say entitled to, but you
- 16:48can typically negotiate or ask for
- 16:50somewhere between to 15% of the total
- 16:53amount that you are providing. And so,
- 16:55we provide two million dollars a month
- 16:57to this company, 24 million a year. It
- 16:59is not unreasonable for us to ask for or
- 17:02at least be in a position where we can
- 17:03negotiate a tenth of that or 2.4 million
- 17:06dollars a year. And so, this is the sort
- 17:07of problem that ultimately you want to
- 17:08solve. You know, you want to find people
- 17:10that have the means to pay for uh this
- 17:13red-hot burning thing. But, you also
- 17:14need the problem itself to be quite
- 17:15valuable. If it's not, probability of
- 17:17you, you know, getting anywhere with
- 17:18that is quite low. Another hack is to
- 17:20pick an industry or a SaaS type that
- 17:23requires some form of human
- 17:25implementation or like human onboarding.
- 17:28What I mean by this is, you know, if
- 17:30everything that you do is entirely
- 17:32digital, then it is pretty reasonable to
- 17:36expect that in the next couple of years
- 17:38AI will be able to do it better than
- 17:39your team.
- 17:40And so, you know, your onboarding your
- 17:42tool into the company is nowhere near as
- 17:44valuable just like, "Hey Claude, can you
- 17:45do it all for me?" Claude will be able
- 17:47to do that for most things fairly
- 17:48shortly.
- 17:49But the one thing that AI can't
- 17:50currently do is it can't upend like
- 17:52regulation. You know, if you need, in
- 17:55our case, a bunch of numbers applied
- 17:57for, you you need A2P registration. And
- 18:00that's just like a fixed thing, that's
- 18:01like a law, that's like a regulation.
- 18:03You can't just say, "Claude, screw screw
- 18:05the A2P registration, get me 5 million
- 18:07phone numbers." Because both for moral,
- 18:09ethical, and programmed-in reasons,
- 18:10Claude will will say no. But also,
- 18:13there's just no way to get the number
- 18:14unless you actually go through this like
- 18:15pretty bureaucratic process.
- 18:17And so, what I mean by that is like in a
- 18:19future where there's no moat to to
- 18:21doing, you need to look for natural
- 18:23moats that are created by regulatory
- 18:24environments. In our case, things like
- 18:26numbers, for instance. Another great
- 18:28example of that is like in healthcare.
- 18:31Everybody complains about HIPAA all the
- 18:32time, myself included, because, you
- 18:34know, it's it's quite the blocker to US
- 18:35healthcare implementing any sort of or
- 18:37building any sort of like cool
- 18:38transcription service. It will require
- 18:40you to like fastidiously adhere to HIPAA
- 18:42principles, and that can slow you down a
- 18:43lot. You need to anonymize your data,
- 18:44and so on and so forth. But viewed
- 18:46another way, that's actually a major
- 18:47opportunity in like an AGI world because
- 18:50that's the only thing that is currently
- 18:51stopping us from being able to, you
- 18:52know, do things.
- 18:54Legitimately having some sort of like
- 18:55certification, let's say, or some sort
- 18:57of board approval of rolling something
- 18:59out. And so, as a as a company, as a
- 19:01SaaS, if you could build some form of
- 19:03human implementation, human onboarding,
- 19:06you know, a human responsible for
- 19:08maintaining the relationship between you
- 19:09and the advisory board that needs to to
- 19:11rubber stamp the thing, then you'll go
- 19:12way further.
- 19:14And so in our case, you know, we have a
- 19:15bunch of relationships and connections
- 19:16with people that know how to do these
- 19:18things and facilitate them a lot faster.
- 19:19And that that's one of the moats that I
- 19:21think will actually carry us forward in
- 19:22the next couple of years as opposed to,
- 19:24you know, big AI just pulverizing the
- 19:26vast majority of these low-touch,
- 19:27low-ticket SaaS's. Finally, one last tip
- 19:29is to make whatever your code base is
- 19:31model agnostic. So I know the whole
- 19:33point of this video is that we built it
- 19:34with Claude code. Um, I would say that's
- 19:36like 90% true. In addition to Claude
- 19:38code, we obviously tried a variety of
- 19:39other models. We tried a deep seek to
- 19:41arbitrage token costs on like constant
- 19:43long-running 24/7 uh uh like
- 19:45restructuring and refactoring and stuff
- 19:47like that. Constant like bug fixes and
- 19:49and and so on. And uh that worked okay.
- 19:52We tried Codex a number of times. Um,
- 19:54our team is increasingly using Codex
- 19:55just as we've run into like some um
- 19:58token issues. And the the tokenomics
- 19:59essentially are the main thing that that
- 20:00are holding us back from going all in on
- 20:02Claude code 24/7.
- 20:04But also, I think uh over the course of
- 20:05the next few months, you'll probably see
- 20:06fluctuations in the quality of each of
- 20:08these models and the availability of
- 20:10each of these models because uh you
- 20:11know, like the major AI companies are
- 20:13starting to get very compute restrained
- 20:15because everybody on planet Earth wants
- 20:16one of these models now. They're
- 20:17realizing how economically effective
- 20:19they are. And so you need to be able to
- 20:20just like hot swap your code base at
- 20:22will from let's say like a Claude code
- 20:24base project to like a Codex project.
- 20:26And this isn't really that hard at all.
- 20:27It's just like a a little bit of
- 20:28friction that I think slows people down.
- 20:30But uh Clarifai, we just made our our
- 20:31code base totally model agnostic. And
- 20:33what that means is like, you know how
- 20:34Claude code has like a skills spec and
- 20:36it expects a Claude.md and so on and so
- 20:38forth. Uh we just have like, you know,
- 20:40an agents.md. We have the agents skills
- 20:42spec. We have uh you know, the thing
- 20:44things for Gemini, Gemini.md. Just in
- 20:47case at any point in time we want to hop
- 20:48over or maybe employ a different model
- 20:51to see if maybe that model can solve a
- 20:52problem that we're struggling with. Um
- 20:54you know, it's just like that. And
- 20:55anybody in our team has the ability to
- 20:57to do so. And so the real actionable tip
- 20:58here is just duplicate everything and
- 21:00then probably have Claude go through the
- 21:02specs of each of these models and just
- 21:03like make sure to prepare the workspace
- 21:05so that at any point in time you have
- 21:07the ability to, you know, instant
- 21:08preload all of your system prompts and
- 21:09so on. And um MCP specs and then skill
- 21:13specs are actually currently understood
- 21:15differently from like Claude versus
- 21:17other uh platforms. Like not all
- 21:18platforms do the YAML front matter
- 21:20tuning for instance where they'll only
- 21:22preload uh like the name and the
- 21:23description of the skill. Um some of
- 21:25them will actually load the entire
- 21:26thing. These are just slight little
- 21:27model differences that you can optimize
- 21:29around that will uh you know, allow you
- 21:31and other people within your company to
- 21:32operate much faster. Okay, I hope you
- 21:34guys like the video. Had a lot of fun
- 21:36putting it together for you. Um as
- 21:37mentioned, obligatory pitch for the SaaS
- 21:39company. That was sort of a case study
- 21:41for this whole video, Clearvo. If you
- 21:42guys want to improve your pickup rates,
- 21:43definitely check that out um because,
- 21:45you know, we're experimenting with with
- 21:46pricing and a variety of different
- 21:47things. Um you know, I'll I'll add a
- 21:49link to the top of the description so
- 21:50you guys can give it a quick click and
- 21:52go through if you like. More generally,
- 21:53if you guys want to learn how to
- 21:54monetize AI automation and SaaS apps in
- 21:57this way, definitely check out Maker
- 21:58School. It's my 90-day accountability
- 22:00program where we'll guarantee you that
- 22:02you get your first customer for an AI or
- 22:04automation-related service within that
- 22:05time period or I give you your money
- 22:07back. And if you guys have any ideas for
- 22:08future videos or if you guys want me to
- 22:10record something on specific topic that
- 22:12is trending, interesting, or just sort
- 22:14of stream of consciousness, uh feel free
- 22:15to let me know. I take most of my video
- 22:17ideas at this point from people in the
- 22:18comments, okay? Thank you again for
- 22:20watching and I'll catch all y'all in the
- 22:21next video.
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