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I Built a $1M/y SaaS with Claude Code, Here's How — Transcript

by Nick Saraev · 5,510 words · 787 segments · language en · Watch on YouTube

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  1. 0:00Hey, so we just hit a million dollars in
  2. 0:01ARR with our SaaS product, which we use
  3. 0:03Cloud Code to build. And I know a lot of
  4. 0:04people here are probably interested in
  5. 0:05using Cloud Code either independently or
  6. 0:07within an organization to put together
  7. 0:09some sort of SaaS app and then take it
  8. 0:10to market. So, I figured in this video
  9. 0:12I'd run you through basically everything
  10. 0:13that we did in order to get to where we
  11. 0:14wanted to and uh also share all the
  12. 0:16learnings along the way. So, what is the
  13. 0:18SaaS? It's called Clarivo. It is
  14. 0:19essentially an AI-enabled power dialer.
  15. 0:23And just to unpack those words, what
  16. 0:24this does is it allows us to make more
  17. 0:26calls per unit time and then have more
  18. 0:28of those calls picked up on the back
  19. 0:30end. And that works really well and is
  20. 0:32very powerful if you're in an industry
  21. 0:33that is traditionally pretty call-based.
  22. 0:35So, either you have some sort of funnel
  23. 0:37where you have inbound leads and you
  24. 0:38need to call them very quickly and en
  25. 0:40masse or uh you know, you're doing like
  26. 0:42traditional cold calling or outbound
  27. 0:43calling to try and acquire clients whom
  28. 0:45you don't have preexisting relationships
  29. 0:47with. And so, anytime you're starting
  30. 0:48any business, whether it's a SaaS,
  31. 0:49e-com, you know, service company,
  32. 0:51whatever, you need to have a very
  33. 0:52clearly defined problem that you're
  34. 0:53trying to solve. And so, I'm going to
  35. 0:54run you guys through exactly how we
  36. 0:55picked this problem later, but
  37. 0:57essentially at a high level, we picked
  38. 0:58this because it has very high a lifetime
  39. 1:01meaning that a single client that we get
  40. 1:02on our service will pay us a lot of
  41. 1:04money over the course of the next few
  42. 1:05years. Uh it's very low churn because
  43. 1:07once we install it into a company, it's
  44. 1:09very unlikely that they're going to just
  45. 1:10bow out. Their whole infrastructure
  46. 1:12depends on us. And then, it's also very
  47. 1:14straightforward and easy to do in a
  48. 1:16market that didn't have a lot of uh
  49. 1:17other entrants. Cloud Code helped us
  50. 1:19come up with every single way and I'll
  51. 1:20run you through a quick step-by-step on
  52. 1:22how to do it in a second. But just so
  53. 1:23that we're all clear, essentially, you
  54. 1:25know, an industry competitor might make
  55. 1:27100 calls an hour. These might be
  56. 1:28outbound calls to try and close some
  57. 1:30deals to strangers they've never met
  58. 1:31before or could be inbound calls calling
  59. 1:33a list of people that opted into some
  60. 1:35offer. From those 100 calls, because of
  61. 1:37dial times, connect times, people aren't
  62. 1:38present, people aren't picking up the
  63. 1:40phone from numbers they don't recognize,
  64. 1:42maybe only 40% of those will actually
  65. 1:43pick up. So, if you think about it right
  66. 1:45off the bat, a salesperson's making 100
  67. 1:46calls, only 40 people are picking up,
  68. 1:48there's sort of a 2.5x drop-off right
  69. 1:50there. And so, if you just do the math,
  70. 1:51you have a salesperson working 8 hours a
  71. 1:52day, they're capable of getting 40
  72. 1:54pickups an hour, it's like how many
  73. 1:55actual conversations are you having?
  74. 1:57Let's say they do that every day for a
  75. 1:58month, maybe they make 10K a month. What
  76. 2:00Clara does is allows you to make more
  77. 2:01calls in the front end. So now we're
  78. 2:02capable of doing what say 200 calls an
  79. 2:04hour instead, and then it also increases
  80. 2:06the fraction of people that pick up
  81. 2:07because the calls are more recognizable.
  82. 2:09We use a couple of cool cloud code-based
  83. 2:11algorithms to like dial multiple numbers
  84. 2:13simultaneously and then also double and
  85. 2:15triple dial if needed. And then
  86. 2:17basically at the end result is you just
  87. 2:18make more money. So in our case we have
  88. 2:20more calls, we have a higher pick up
  89. 2:21rate and so there's significantly more
  90. 2:22people that are actually on the phone.
  91. 2:24And uh right now we're capable of
  92. 2:25generating, you know, somewhere between
  93. 2:2750 to 80% improvements to the companies
  94. 2:29that we work with. We took a pretty
  95. 2:30sizable business from Texas from
  96. 2:32somewhere between 3 to 5 million dollars
  97. 2:34per month, uh which is almost uh you
  98. 2:35know, double their their revenue. And so
  99. 2:37this is the sort of value proposition
  100. 2:39that Net Clever has. So how do you
  101. 2:40actually use Claude here? Well, I should
  102. 2:41note that we didn't actually know how to
  103. 2:42solve this problem when we started. Uh
  104. 2:44we actually had Claude walk us through
  105. 2:46every possible way that it knew of to
  106. 2:48improve pick up rates and increase the
  107. 2:50total number of calls we could make per
  108. 2:51unit time. And uh most of the ideas were
  109. 2:54absolute trash. But after mining Claude
  110. 2:56for 200, 300 ideas, a couple of them
  111. 2:59were actually pretty good. And so the
  112. 3:00process, if you're interested, is we
  113. 3:01literally said, "Hey, we're building
  114. 3:03insert product here. You know, it is in
  115. 3:06our case an AI-powered dialer for local
  116. 3:08service businesses like HVAC, plumbing,
  117. 3:10roofing, et cetera. Our core metric to
  118. 3:12optimize is call pick up rate, which is
  119. 3:15defined as the percentage of dialed
  120. 3:16numbers that result in a live human
  121. 3:18answering within say 10 seconds." So
  122. 3:20here we have the current baseline, we
  123. 3:22have the industry ceiling, and then we
  124. 3:23even had our target. So what I told it
  125. 3:25to do was spawn 10 parallel sub agents.
  126. 3:27Each one should propose 10 distinct
  127. 3:28mechanisms we can use to increase pick
  128. 3:30up rate. I also want you to diverge each
  129. 3:32of these wildly. So do algorithmic,
  130. 3:34behavioral, infrastructural, regulatory,
  131. 3:35psychological, time-based,
  132. 3:36identity-based mechanisms. Don't
  133. 3:38self-censor for any feasibility. I'm
  134. 3:40going to do all this later. And so after
  135. 3:42it comes up with all of these ideas, and
  136. 3:43it's going to come up with a lot of
  137. 3:44ideas as I mentioned, what we're going
  138. 3:45to do is we're just going to take them
  139. 3:47and then verify, "Okay, is this a like a
  140. 3:48total BS idea or is it like an okay
  141. 3:50idea?" And so here we go. We now have a
  142. 3:52variety of results. A lot of them are
  143. 3:54hard duplicates, as well. But, just
  144. 3:55going top to bottom, the first is a
  145. 3:57temporal propensity model, which is
  146. 3:59basically using AI to determine
  147. 4:02an optimal call window, aka when to call
  148. 4:04people. So, this is legitimately
  149. 4:05something that we do at Clara. We have
  150. 4:07optimal call windows based off of
  151. 4:09average pickup times per, you know, time
  152. 4:11of day, essentially. But, at the same
  153. 4:13time, some of these other ideas are
  154. 4:14total BS. So, weather times pickup
  155. 4:16regression, you know, can we run a
  156. 4:17regression, which is a statistical
  157. 4:19analysis, on historical pickup rates
  158. 4:21versus hyper-local weather. Uh you know,
  159. 4:23just off the top of my my head, that's
  160. 4:25probably not going to be anywhere near
  161. 4:26as valuable as doing some sort of like
  162. 4:27call-based on time, let's say. And so,
  163. 4:30you're going to get tons of ideas like
  164. 4:31these, and yeah, the majority of them
  165. 4:32are going to be junk. But, you're going
  166. 4:34to find a couple that work. And so, in
  167. 4:35our case, this is literally what we did.
  168. 4:37We ideated over all of the possible ways
  169. 4:39to improve something. After you're done
  170. 4:40with that, we shortlist one of these
  171. 4:42ideas. And so, in our case, predictive
  172. 4:44pacing was actually a pretty well-known
  173. 4:45idea. It's not something we invented.
  174. 4:47Clara could definitely didn't invent.
  175. 4:49But, you know, it's an idea that we
  176. 4:50wanted to explore and see, okay, what
  177. 4:51sort of alpha would there be if, you
  178. 4:53know, rather than just call one person,
  179. 4:54they actually call multiple people
  180. 4:55simultaneously. Essentially, because the
  181. 4:58amount of time it takes to dial somebody
  182. 4:59is very fixed. Like, if you think about
  183. 5:01it, you enter your phone number in, and
  184. 5:03then you stand on the line, it goes
  185. 5:04din-din-din, din-din-din.
  186. 5:06What that means is if the person doesn't
  187. 5:07pick up, you just wasted all that time
  188. 5:09as a salesperson. So, if your your goal
  189. 5:11is optimally to be more efficient, the
  190. 5:13actual optimal play is not just to call
  191. 5:15one person and have the din-din-din,
  192. 5:17din-din-din. It's actually to call two
  193. 5:19people and have the din-din-din,
  194. 5:21din-din-din. Because if one of those
  195. 5:22people doesn't pick up, well, no
  196. 5:24problem, you've taken the total amount
  197. 5:26of time it would have made to make that
  198. 5:27dial, and then you connected with this
  199. 5:28person anyway.
  200. 5:29And so, this isn't just limited to two
  201. 5:30people. We actually use an algorithmic
  202. 5:32model that specifically imbues like
  203. 5:35offsets into our multiple call thing
  204. 5:38that is proven, and we've seen it in our
  205. 5:40data, to call and get picked up by the
  206. 5:43optimal amount of people per unit time.
  207. 5:45Do some people pick up at the same time,
  208. 5:47And then that results in kind of an up
  209. 5:48weird awkward situation? Yeah, but we
  210. 5:50also have a built-in call routing so
  211. 5:52that if, you know, we make multiple
  212. 5:53dials here, one of them doesn't get
  213. 5:55picked up. It actually goes to an agent
  214. 5:56that might actually be available. So,
  215. 5:58it's a queuing system which, you know,
  216. 5:59Claude code obviously helped us build.
  217. 6:00But it all started like right here. This
  218. 6:02is the exact same approach that we use
  219. 6:03in order to figure all that out. And so,
  220. 6:06once you have this simulation harness,
  221. 6:07you know, you feed it in a bunch of data
  222. 6:08on historical call times, which we
  223. 6:10accumulated through our own businesses
  224. 6:11and then businesses of other people. Now
  225. 6:13we have something we can run stats on.
  226. 6:15And we can figure out, okay, what's the
  227. 6:16optimal offset for this, you know, batch
  228. 6:18of 50,000 calls, let's say, in order to
  229. 6:20determine, you know, what our what our
  230. 6:22offset needs to be. Once you're done
  231. 6:23with that, you feed it in another prompt
  232. 6:25that says, "Hey, I want you to now
  233. 6:26implement this predictive pacing
  234. 6:28simulation from the spec above. Here is
  235. 6:30some historical data. I want you to
  236. 6:31optimize for these things using, in this
  237. 6:33case, Bayesian optimization." Obviously,
  238. 6:35this is going to depend on the specific
  239. 6:36problem you're trying to solve. But what
  240. 6:37I'm trying to say is, we just had Claude
  241. 6:39code, you know, figure out
  242. 6:41the ways to improve what we wanted to
  243. 6:43improve, and then actually implement
  244. 6:44that the simulated environment. Finally,
  245. 6:46you build the thing, which in our case
  246. 6:47was this predictive pacer, and then you
  247. 6:49roll it out in real businesses. And, you
  248. 6:51know, I think this is probably the thing
  249. 6:52that's going to trip up a lot of people
  250. 6:54because they don't have real
  251. 6:55pre-existing businesses that are
  252. 6:56currently live right now that they can
  253. 6:58test things out on. And that's why data
  254. 7:00is ultimately the quite the moat. If you
  255. 7:01have the data and then you also have the
  256. 7:02means to deploy something and do, you
  257. 7:04know, parallel testing, you can you can
  258. 7:06usually get through this sort of thing
  259. 7:07way faster. Okay, and that takes me to
  260. 7:08this general sort of loop. In order to
  261. 7:11do this sort of thing effectively, what
  262. 7:12you always start with is you start by
  263. 7:13defining a problem. Of course, you're
  264. 7:15going to have Claude code help you do
  265. 7:16the idea mining and the problem
  266. 7:18definitions. That's okay. Um but in our
  267. 7:20case, we just knew this was a problem
  268. 7:22that a lot of people were willing to pay
  269. 7:23a fair amount of money for. Then you
  270. 7:24say, "Hey, Claude, how can we solve this
  271. 7:26problem? I want you to enumerate, aka
  272. 7:28list, all possible solutions to, you
  273. 7:31know, the problem of let's say call
  274. 7:32pickup rates."
  275. 7:34Then what you do after that is you apply
  276. 7:35your little human brain, your little
  277. 7:37sponge, and you say, "Okay, which one of
  278. 7:39these are total and which one
  279. 7:40of these are actually somewhat
  280. 7:41feasible?" And so, in our case we had a
  281. 7:43short list of maybe five or six out of
  282. 7:44several hundred that were actually
  283. 7:46feasible. And you know, over time we're
  284. 7:48going through the the the the rest of
  285. 7:49them as well just to verify if this is
  286. 7:51something that can actually add some
  287. 7:52alpha, some delta to, you know, call
  288. 7:54pickup rates. But the vast majority of
  289. 7:56the time it's one of those things that
  290. 7:56you'll just read and you'll be like,
  291. 7:57"Okay, yeah, this is obviously the one."
  292. 7:59Once we're done, we design some
  293. 8:00simulations with Claude code, usually
  294. 8:03based off some form of historical data,
  295. 8:04and then we run a statistical model, in
  296. 8:06our case the predicted pacing algorithm,
  297. 8:08in order to actually have that perform
  298. 8:09better. Then we iterate a simulator,
  299. 8:12okay, we have Claude code just like
  300. 8:13change the the the parameters of our
  301. 8:15models so that it gets better and better
  302. 8:16and better. And then finally we have
  303. 8:18like a real life stress test where we
  304. 8:19actually roll it out. And I mean, it can
  305. 8:21fail at any step along these lines here.
  306. 8:23We've had a variety of, you know, pretty
  307. 8:25cracked out approaches that we thought
  308. 8:26were going to work really well in the
  309. 8:28sim because we saw better improvements
  310. 8:29in our stats, but then when we rolled
  311. 8:31them out to real life we're like, "Oh my
  312. 8:32god, wait a second, there's actually
  313. 8:33this third variable here that confounds
  314. 8:36and kind of ruins everything." So, you
  315. 8:38know, it's not easy. If it was easy,
  316. 8:39you'd have everybody doing it, and if
  317. 8:40everybody was doing it, nobody would be
  318. 8:41making any money, but this is how we
  319. 8:44ideated on the set of core features of
  320. 8:47Clarvo that ultimately ended up making
  321. 8:48us a fair amount of money. But the
  322. 8:49pricing is 250 bucks a month, which is
  323. 8:51not like a scientifically determined
  324. 8:53price. We started by pricing close to
  325. 8:55like 100 bucks a month, and we figured
  326. 8:56out that people were willing to pay for
  327. 8:57it, so then we increased the price,
  328. 8:59figured out people were still willing to
  329. 9:00pay for it, increased the price. Uh you
  330. 9:02know, I think people that are trying to
  331. 9:03use these big statistical pricing models
  332. 9:05or have AI like determine what the best
  333. 9:07price is are usually just wrong. The
  334. 9:08much easier and simpler way is just like
  335. 9:10pick a price and then sell it to a bunch
  336. 9:12of people, and if it's easy and they say
  337. 9:14yes, then just keep increasing the price
  338. 9:15until eventually it gets hard. In
  339. 9:16general with SaaS companies there's a
  340. 9:18big spectrum of possible prices. Um if
  341. 9:20this is our spectrum here, at the very
  342. 9:22left is basically what is called um low
  343. 9:25touch. Low touch SaaS businesses,
  344. 9:27generally speaking, are like self-serve.
  345. 9:29What that means is it's like a
  346. 9:31self-guided onboarding. There's like
  347. 9:32maybe a video from the founder. You pay
  348. 9:33like 5, 10, 15, 20 bucks a month, and
  349. 9:36then everything's is kind of done for
  350. 9:37you. And, you know, these can be really
  351. 9:39good, but my head cannon, my my personal
  352. 9:41belief is in an era where Claude code
  353. 9:44and other AI agents are capable of
  354. 9:45whipping up basically any SaaS,
  355. 9:47you know, like you got to ask yourself
  356. 9:48at a certain point any business owner
  357. 9:50will be willing or able to make the
  358. 9:52trade-off of just paying money for
  359. 9:53tokens to actually just rebuild the
  360. 9:54whole thing. So, rather than us sort of
  361. 9:57going really cheap and really small and
  362. 9:59solving a tiny problem, we decided to go
  363. 10:01the exact opposite direction, um and we
  364. 10:02ended up solving a pretty big problem
  365. 10:04kind of close to the enterprise
  366. 10:06uh with what's called a high-touch SaaS.
  367. 10:08So, Clervo sits sort of right around
  368. 10:09here, and typically we don't just sell
  369. 10:11individual licenses. It's not like uh
  370. 10:13you know, a single user can't sign up if
  371. 10:14they want to. But, in general, we work
  372. 10:16with companies and then roll this out to
  373. 10:17a pre-created team of people that are
  374. 10:19doing calling. So, for instance, you
  375. 10:21know, we sign a 100-seat deal at $250 a
  376. 10:24month, well, if you think about it kind
  377. 10:26of mathematically, that's $25,000 MRR,
  378. 10:28which is 300k ARR. So, that's more or
  379. 10:30less what we've done. We've closed a
  380. 10:30handful of deals with sort of like
  381. 10:32mid-market uh uh to maybe larger uh
  382. 10:34businesses that operate in a variety of
  383. 10:36very call-heavy industries. Only takes a
  384. 10:38couple of those people to say yes to
  385. 10:40roll it out to their team and then make
  386. 10:41a fair amount of money. On the pricing
  387. 10:42point, my big take on a lot of this is
  388. 10:44nowadays anybody can build virtually
  389. 10:46anything. If you look at the total
  390. 10:48number of commits over time, okay, they
  391. 10:51are skyrocketing, and that's because AI
  392. 10:52is doing the vast majority of the
  393. 10:53intellectual heavy lifting now. So, it's
  394. 10:56no longer can you build insert software
  395. 10:58product here, cuz we can all build it.
  396. 11:00The the the bottleneck, the mode, like
  397. 11:02the value that you have is what should
  398. 11:04you build, and you know, essentially how
  399. 11:06should you price. So, what you quickly
  400. 11:07realize is that the vast majority of
  401. 11:09frameworks are total fluff. Now, we
  402. 11:11tried a lot of agent frameworks for
  403. 11:13Clervo. We tried Hermes, we tried Open
  404. 11:16Claw, we tried a bunch of these context
  405. 11:18libraries, uh basically made like vector
  406. 11:20DBs of your memory. We probably tried
  407. 11:22like 50 different approaches. And I can
  408. 11:24definitively say for the purposes of
  409. 11:27creating a software product that later
  410. 11:29generates revenue, basically every
  411. 11:31additional framework you use is
  412. 11:33inversely correlated with the amount of
  413. 11:34money you make. Cuz every time you jump
  414. 11:36on a different framework, you are not
  415. 11:38only distracting yourself and pulling
  416. 11:40away from like the thing that you're
  417. 11:41trying to build. Uh typically, you have
  418. 11:44like regression within whatever the code
  419. 11:45base is because now the prompt is being
  420. 11:48understood or mediated a little bit
  421. 11:49differently than it was before. For
  422. 11:51those of you guys that don't know,
  423. 11:51regression is just where, you know, you
  424. 11:53had an approach previously that worked
  425. 11:54really well. Let's say some vanilla
  426. 11:56thing with like a small little cloud and
  427. 11:57MD. Uh but because now you're you're
  428. 11:58doing it through a different framework,
  429. 12:00like a lot of the assumptions and
  430. 12:01memories and and and things that the
  431. 12:02model used to know about your code base
  432. 12:03no longer works. Uh which is quite
  433. 12:05unfortunate. So, you know, rather than
  434. 12:07jump around a lot and try and like
  435. 12:09uh aim for that 100% quality uh or like
  436. 12:12a 100% score uh IQ test of the model, I
  437. 12:16would rather have the model work 90% as
  438. 12:19well of like its total potential, let's
  439. 12:21say, but I'd have it work consistently
  440. 12:23and be the same every single time. The
  441. 12:24real value that I think not a lot of
  442. 12:26people understand is that, you know,
  443. 12:29the intelligence comes from the model
  444. 12:30itself these days. It does not come from
  445. 12:33the shiny framework that wraps around
  446. 12:34it.
  447. 12:35You slapping on some new framework to,
  448. 12:38you know, the way that your your team is
  449. 12:39building on cloud code is kind of like
  450. 12:41uh people that put a fuzzy cover on
  451. 12:42their steering wheel and then they
  452. 12:44pretend that that's the reason why their
  453. 12:45car works so good. Like obviously,
  454. 12:46that's not the reason why your car works
  455. 12:48so good. Your car works good because it
  456. 12:49has wheels, it has an engine, it has a
  457. 12:51chassis, and so on and so forth. It's
  458. 12:52the craftsmanship of the person that
  459. 12:54built all of that. Uh but, you know, you
  460. 12:57cuz you want to be all special and and
  461. 12:58new and stuff like that, uh put put your
  462. 13:01little fuzzy steering wheel on and then
  463. 13:02go like, "Oh yeah, this is way better."
  464. 13:04It does not a genuine improvement.
  465. 13:05That's just your subjective improvement.
  466. 13:07And so, I think human beings, we want to
  467. 13:08take credit for everything even if it's
  468. 13:09not necessarily ours. And so, we do the
  469. 13:11uh virtual equivalent of slapping on a
  470. 13:13bunch of like fancy fuzzy covers, aka
  471. 13:15all these Hermes agents and and and open
  472. 13:17claw tools and stuff like that. Uh when
  473. 13:20in reality, the thing that's making the
  474. 13:21car go is is the is the base model. And
  475. 13:23so, that's why if you guys look deep
  476. 13:25into the people that actually like
  477. 13:26created a lot of these technologies.
  478. 13:28Like Boris Cherny for instance, who's
  479. 13:30one of the creators of Claude code.
  480. 13:31These people typically have like nothing
  481. 13:33of substance in their Claude.md files.
  482. 13:36They have nothing in their system
  483. 13:38prompts. They're literally just using
  484. 13:40the vanilla intellect of the model. And
  485. 13:42the vanilla intellect of the model is
  486. 13:43usually, for all intents and purposes,
  487. 13:45pretty damn good. You'll only get
  488. 13:46marginal improvements applying one of
  489. 13:48these frameworks. And what you find is,
  490. 13:49you know, Claude code's getting so good
  491. 13:51so quickly nowadays that if there is a
  492. 13:53marginal improvement that gives you like
  493. 13:54a 5% a plus ROI, the next generation of
  494. 13:57the tool, maybe like three or four days
  495. 13:58later, will actually already include
  496. 14:00that. Either hardcoded into its system
  497. 14:02prompt or maybe actually just part of
  498. 14:03like the training of the model. The
  499. 14:05second thing is to pick problems that
  500. 14:06actually pay. And so, the idea is, okay,
  501. 14:09you can build more or less anything. And
  502. 14:12so, this left-hand side of the Venn
  503. 14:13diagram are all of the things that you
  504. 14:15could build, and every green dot is a
  505. 14:16thing that you've decided to build.
  506. 14:18You're not going to make any money.
  507. 14:20What you want to do, okay, is find that
  508. 14:22small little slice of the Venn diagram
  509. 14:25on the right-hand side that people will
  510. 14:26actually pay for. So, these are things
  511. 14:28like red-hot problems. They're
  512. 14:30industries and niches that have big
  513. 14:31budgets. It's people with a pre-existing
  514. 14:33pain. And then what you want to do is
  515. 14:34you just want to focus all your time
  516. 14:35over here.
  517. 14:36And so, with Clarabridge, that's what we
  518. 14:37did. We saw just how inefficient a lot
  519. 14:39of sales people were and how literally
  520. 14:41just getting on a power dialer, cuz this
  521. 14:44isn't a new idea to power dialer,
  522. 14:46but we saw like the difference between
  523. 14:47not having a power dialer and then
  524. 14:48having a power dialer was like 3x
  525. 14:51effectiveness. Then we're like, "Okay,
  526. 14:52what if we could just make actual
  527. 14:53pre-existing power dialers even better?"
  528. 14:55And we're like, "Okay, if we can
  529. 14:56generate even like a 2x effectiveness,
  530. 14:57we'll be able to to take a large portion
  531. 14:59of the value that we provide for
  532. 15:00companies."
  533. 15:01And so, that's that's the most That's
  534. 15:03sort of where you need to sit if you
  535. 15:04really want to crush it in SaaS
  536. 15:05nowadays. And so, everything exists on
  537. 15:06this problem-value spectrum. You know,
  538. 15:09on the left-hand side, you have a bunch
  539. 15:10of lukewarm problems. These are things
  540. 15:11that are nice to have, but they're not
  541. 15:13necessary to have.
  542. 15:15And this is unfortunately where probably
  543. 15:17like 90% of people spend their time.
  544. 15:19And I'd built, you know, a a of demos
  545. 15:21showing you how you could put together
  546. 15:22to-do apps and simple browser extensions
  547. 15:25and simple productivity tools and so on
  548. 15:26and so forth. But, the harsh reality is,
  549. 15:29you know, if the problem isn't big
  550. 15:30enough to justify somebody
  551. 15:32uh you know, choosing your SaaS over
  552. 15:34like building it all themselves because
  553. 15:36as mentioned, software's now quite easy
  554. 15:37to build. Anybody can just
  555. 15:39uh convert tokens into product just at
  556. 15:42some sort of exchange rate. You know, if
  557. 15:44it's not a big enough problem, people
  558. 15:45are just going to do that and the
  559. 15:47longevity of your SaaS is going to be
  560. 15:48significantly smaller than if picked up
  561. 15:50a red-hot burning problem.
  562. 15:51So, in our case, we picked uh something
  563. 15:53that is currently costing organizations
  564. 15:54millions of dollars a year. They'll pay
  565. 15:56anything to fix their to fix their
  566. 15:57pick-up rates or improve it if they know
  567. 15:59that it's an option. And uh so, this is
  568. 16:01more or less what what we've done.
  569. 16:03So, instead of solving a, you know,
  570. 16:06I don't know, uh marketing for dog
  571. 16:07walkers where it's like the average dog
  572. 16:09walker probably makes like a thousand
  573. 16:10bucks a month or something like that.
  574. 16:12You know, solve a core need for a large,
  575. 16:16usually mid-market and up style company.
  576. 16:18Uh people that actually have budgets and
  577. 16:20typically also have many seats that
  578. 16:21would need to subscribe to these budgets
  579. 16:23in order to solve said problem. So, as
  580. 16:24mentioned, uh we implemented this on one
  581. 16:26of our eight-figure clients and it says
  582. 16:27uh a year here, but it's it's literally
  583. 16:28a month. I think the AI just didn't
  584. 16:30believe me when I said it was
  585. 16:31legitimately a month. Uh and we took
  586. 16:33them basically uh we increased their
  587. 16:35their monthly revenue by 66%.
  588. 16:38And so, if you think about it, like what
  589. 16:39did we do? The delta there is two
  590. 16:41million a year in revenue.
  591. 16:42And typically the way that it works is
  592. 16:43if you solve a problem, okay, you are uh
  593. 16:47I don't want to say entitled to, but you
  594. 16:48can typically negotiate or ask for
  595. 16:50somewhere between to 15% of the total
  596. 16:53amount that you are providing. And so,
  597. 16:55we provide two million dollars a month
  598. 16:57to this company, 24 million a year. It
  599. 16:59is not unreasonable for us to ask for or
  600. 17:02at least be in a position where we can
  601. 17:03negotiate a tenth of that or 2.4 million
  602. 17:06dollars a year. And so, this is the sort
  603. 17:07of problem that ultimately you want to
  604. 17:08solve. You know, you want to find people
  605. 17:10that have the means to pay for uh this
  606. 17:13red-hot burning thing. But, you also
  607. 17:14need the problem itself to be quite
  608. 17:15valuable. If it's not, probability of
  609. 17:17you, you know, getting anywhere with
  610. 17:18that is quite low. Another hack is to
  611. 17:20pick an industry or a SaaS type that
  612. 17:23requires some form of human
  613. 17:25implementation or like human onboarding.
  614. 17:28What I mean by this is, you know, if
  615. 17:30everything that you do is entirely
  616. 17:32digital, then it is pretty reasonable to
  617. 17:36expect that in the next couple of years
  618. 17:38AI will be able to do it better than
  619. 17:39your team.
  620. 17:40And so, you know, your onboarding your
  621. 17:42tool into the company is nowhere near as
  622. 17:44valuable just like, "Hey Claude, can you
  623. 17:45do it all for me?" Claude will be able
  624. 17:47to do that for most things fairly
  625. 17:48shortly.
  626. 17:49But the one thing that AI can't
  627. 17:50currently do is it can't upend like
  628. 17:52regulation. You know, if you need, in
  629. 17:55our case, a bunch of numbers applied
  630. 17:57for, you you need A2P registration. And
  631. 18:00that's just like a fixed thing, that's
  632. 18:01like a law, that's like a regulation.
  633. 18:03You can't just say, "Claude, screw screw
  634. 18:05the A2P registration, get me 5 million
  635. 18:07phone numbers." Because both for moral,
  636. 18:09ethical, and programmed-in reasons,
  637. 18:10Claude will will say no. But also,
  638. 18:13there's just no way to get the number
  639. 18:14unless you actually go through this like
  640. 18:15pretty bureaucratic process.
  641. 18:17And so, what I mean by that is like in a
  642. 18:19future where there's no moat to to
  643. 18:21doing, you need to look for natural
  644. 18:23moats that are created by regulatory
  645. 18:24environments. In our case, things like
  646. 18:26numbers, for instance. Another great
  647. 18:28example of that is like in healthcare.
  648. 18:31Everybody complains about HIPAA all the
  649. 18:32time, myself included, because, you
  650. 18:34know, it's it's quite the blocker to US
  651. 18:35healthcare implementing any sort of or
  652. 18:37building any sort of like cool
  653. 18:38transcription service. It will require
  654. 18:40you to like fastidiously adhere to HIPAA
  655. 18:42principles, and that can slow you down a
  656. 18:43lot. You need to anonymize your data,
  657. 18:44and so on and so forth. But viewed
  658. 18:46another way, that's actually a major
  659. 18:47opportunity in like an AGI world because
  660. 18:50that's the only thing that is currently
  661. 18:51stopping us from being able to, you
  662. 18:52know, do things.
  663. 18:54Legitimately having some sort of like
  664. 18:55certification, let's say, or some sort
  665. 18:57of board approval of rolling something
  666. 18:59out. And so, as a as a company, as a
  667. 19:01SaaS, if you could build some form of
  668. 19:03human implementation, human onboarding,
  669. 19:06you know, a human responsible for
  670. 19:08maintaining the relationship between you
  671. 19:09and the advisory board that needs to to
  672. 19:11rubber stamp the thing, then you'll go
  673. 19:12way further.
  674. 19:14And so in our case, you know, we have a
  675. 19:15bunch of relationships and connections
  676. 19:16with people that know how to do these
  677. 19:18things and facilitate them a lot faster.
  678. 19:19And that that's one of the moats that I
  679. 19:21think will actually carry us forward in
  680. 19:22the next couple of years as opposed to,
  681. 19:24you know, big AI just pulverizing the
  682. 19:26vast majority of these low-touch,
  683. 19:27low-ticket SaaS's. Finally, one last tip
  684. 19:29is to make whatever your code base is
  685. 19:31model agnostic. So I know the whole
  686. 19:33point of this video is that we built it
  687. 19:34with Claude code. Um, I would say that's
  688. 19:36like 90% true. In addition to Claude
  689. 19:38code, we obviously tried a variety of
  690. 19:39other models. We tried a deep seek to
  691. 19:41arbitrage token costs on like constant
  692. 19:43long-running 24/7 uh uh like
  693. 19:45restructuring and refactoring and stuff
  694. 19:47like that. Constant like bug fixes and
  695. 19:49and and so on. And uh that worked okay.
  696. 19:52We tried Codex a number of times. Um,
  697. 19:54our team is increasingly using Codex
  698. 19:55just as we've run into like some um
  699. 19:58token issues. And the the tokenomics
  700. 19:59essentially are the main thing that that
  701. 20:00are holding us back from going all in on
  702. 20:02Claude code 24/7.
  703. 20:04But also, I think uh over the course of
  704. 20:05the next few months, you'll probably see
  705. 20:06fluctuations in the quality of each of
  706. 20:08these models and the availability of
  707. 20:10each of these models because uh you
  708. 20:11know, like the major AI companies are
  709. 20:13starting to get very compute restrained
  710. 20:15because everybody on planet Earth wants
  711. 20:16one of these models now. They're
  712. 20:17realizing how economically effective
  713. 20:19they are. And so you need to be able to
  714. 20:20just like hot swap your code base at
  715. 20:22will from let's say like a Claude code
  716. 20:24base project to like a Codex project.
  717. 20:26And this isn't really that hard at all.
  718. 20:27It's just like a a little bit of
  719. 20:28friction that I think slows people down.
  720. 20:30But uh Clarifai, we just made our our
  721. 20:31code base totally model agnostic. And
  722. 20:33what that means is like, you know how
  723. 20:34Claude code has like a skills spec and
  724. 20:36it expects a Claude.md and so on and so
  725. 20:38forth. Uh we just have like, you know,
  726. 20:40an agents.md. We have the agents skills
  727. 20:42spec. We have uh you know, the thing
  728. 20:44things for Gemini, Gemini.md. Just in
  729. 20:47case at any point in time we want to hop
  730. 20:48over or maybe employ a different model
  731. 20:51to see if maybe that model can solve a
  732. 20:52problem that we're struggling with. Um
  733. 20:54you know, it's just like that. And
  734. 20:55anybody in our team has the ability to
  735. 20:57to do so. And so the real actionable tip
  736. 20:58here is just duplicate everything and
  737. 21:00then probably have Claude go through the
  738. 21:02specs of each of these models and just
  739. 21:03like make sure to prepare the workspace
  740. 21:05so that at any point in time you have
  741. 21:07the ability to, you know, instant
  742. 21:08preload all of your system prompts and
  743. 21:09so on. And um MCP specs and then skill
  744. 21:13specs are actually currently understood
  745. 21:15differently from like Claude versus
  746. 21:17other uh platforms. Like not all
  747. 21:18platforms do the YAML front matter
  748. 21:20tuning for instance where they'll only
  749. 21:22preload uh like the name and the
  750. 21:23description of the skill. Um some of
  751. 21:25them will actually load the entire
  752. 21:26thing. These are just slight little
  753. 21:27model differences that you can optimize
  754. 21:29around that will uh you know, allow you
  755. 21:31and other people within your company to
  756. 21:32operate much faster. Okay, I hope you
  757. 21:34guys like the video. Had a lot of fun
  758. 21:36putting it together for you. Um as
  759. 21:37mentioned, obligatory pitch for the SaaS
  760. 21:39company. That was sort of a case study
  761. 21:41for this whole video, Clearvo. If you
  762. 21:42guys want to improve your pickup rates,
  763. 21:43definitely check that out um because,
  764. 21:45you know, we're experimenting with with
  765. 21:46pricing and a variety of different
  766. 21:47things. Um you know, I'll I'll add a
  767. 21:49link to the top of the description so
  768. 21:50you guys can give it a quick click and
  769. 21:52go through if you like. More generally,
  770. 21:53if you guys want to learn how to
  771. 21:54monetize AI automation and SaaS apps in
  772. 21:57this way, definitely check out Maker
  773. 21:58School. It's my 90-day accountability
  774. 22:00program where we'll guarantee you that
  775. 22:02you get your first customer for an AI or
  776. 22:04automation-related service within that
  777. 22:05time period or I give you your money
  778. 22:07back. And if you guys have any ideas for
  779. 22:08future videos or if you guys want me to
  780. 22:10record something on specific topic that
  781. 22:12is trending, interesting, or just sort
  782. 22:14of stream of consciousness, uh feel free
  783. 22:15to let me know. I take most of my video
  784. 22:17ideas at this point from people in the
  785. 22:18comments, okay? Thank you again for
  786. 22:20watching and I'll catch all y'all in the
  787. 22:21next video.

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