Making your purchase profitable within 6 months of buying

TL;DR — Before buying any business, always think “How can I 10x this purchase?” and have a clear action plan to achieve that. This would require a deep understanding of the market, your potential customers, and the SaaS technology landscape.
Here are a few things you can do to make your purchase profitable:
  1. Do comprehensive research and identify customer pain points. Go through all the user feedback, reviews, testimonials, etc. across different channels, like the App Store, Twitter, Product Hunt, etc.
    1. Ask the most obsessed users why they have been using the product so far and why they never switched to a competitor. These users probably bring 70% of the revenue, and do everything you can to never disappoint them.
    2. Reach out to the ones who left a negative note / posted negative feedback on their feedback. Do the same with churned customers. Personally assist and educate them about the features of your product.
  1. Act on the gaps and opportunities right away. Consider innovative features or enhancements to set the product apart.
  1. Tailor your communications to make them relate to your users. From your website to your sign-up email, from purchase confirmation to support, all of it should speak to their pain points.
  1. Raise your Pricing: Once you have turned the product shockproof and covered the marketing angle, raise your pricing. Most indie makers are good at building but not at positioning their products or pricing them.
  1. Focus on the SEO and organic reach: Regular developers don’t take care of the other fronts of growth like SEO, social media marketing, etc. Find keywords your customers are obsessed with and build a strong recall for your product. Loyal users stick around even if there are minor inconveniences.
  1. Leverage your personal brand: Use tools like Tweet Hunter, Taplio, etc. to draft and schedule content. Stay consistent and personalize your audience engagement.
  1. Get more paying customers from platforms like Reddit, HackerNews, email campaigns, affiliate marketing, etc.
Some more resources here: 41+ SaaS Marketing Strategies
From Cj Z on “What’s next?”: ”Never marry any product! You acquire, you refine, you relaunch, and you take it to sustainable monthly revenue. At some stage, you'll get a great offer from big players. Take that offer and repeat the process.”
Tips from Cj Z

A Few Pieces Of Advice

  • Don’t buy companies, buy assets (products): Buying a company is an unnecessary hassle.
  • Buy only 1 product at a time: Each product, no matter how simple or complex, requires your full attention.
  • To buy 1 product, reach out to 10 people. It’s likely most deals are not good for you.
  • Actively talk to customers
    • Start reiterating from Day 1. Don’t wait for the customers to reach out to you with their issues. Do it yourself.
    • Personally reach out to the users and try to actively respond to their feedback/suggestions on Twitter, Instagram, etc.
  • Don’t treat SaaS as a regular asset class: A product’s worth can go as low as $0, so make sure you have done enough due diligence before parking money in it.
  • Build a great team in parallel: Finding A-grade talent that can help you skyrocket your business is difficult and time-consuming. Get a headstart on it by kicking off the process while your experts do all the due diligence, which usually takes 30 to 60 days.


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