Your SaaS will probably fail. And that's actually okay.

Nicolaas Spivey -

I'm going to tell you something nobody else will:

Your SaaS will probably fail.

Not because you're not smart enough. Not because your idea is bad. Not because you're not working hard enough.

It'll fail because the math doesn't work.

And once you accept this, you can actually succeed.

Let's look at the numbers:

  • 90% of SaaS startups fail within 3 years
  • Of the 10% that survive, most are zombies ($3-10k MRR)
  • Of those, 1% hit the "ramen profitable" milestone
  • 0.1% become actual businesses

If you're building a SaaS right now, you have a 1 in 1,000 chance of succeeding.

Those are lottery odds.

But here's the thing nobody tells you:

You're playing the wrong game.

There are two types of SaaS builders:

Type 1: The VC Path

  • Build for scale
  • Raise funding
  • Burn money on growth
  • Exit or die
  • 0.01% succeed

Type 2: The Indie Path

  • Build for profit
  • Bootstrap from day 1
  • Grow slowly
  • Keep what you make
  • 15% succeed

Most people aim for Type 1.

Most people should be Type 2.

The difference?

Type 1 wants to build a unicorn. Type 2 wants to build a life.

[THE JOURNEY - Failure Cascade]

I've built 4 failed SaaS products.

Let me show you the carnage:

SaaS #1: "The Smart CRM"

  • Idea: Notion-based CRM for solopreneurs
  • Built: 3 months
  • Launched: October 2023
  • Revenue: $387 total
  • Shut down: January 2024
  • Lost: $4,800 in time + $1,200 in tools

Why it failed: Solved a problem nobody actually had

SaaS #2: "The Email Assistant"

  • Idea: AI that writes cold emails
  • Built: 2 months
  • Launched: March 2024
  • Revenue: $1,240 total
  • Shut down: May 2024
  • Lost: $3,200 in time + $890 in API costs

Why it failed: Too many free alternatives

SaaS #3: "The Content Scheduler"

  • Idea: Auto-post to multiple platforms
  • Built: 4 months
  • Launched: July 2024
  • Revenue: $2,100 total
  • Still "running" but dead
  • Lost: $6,400 in time + $2,300 in tools

Why it failed: Buffer and Hootsuite exist

SaaS #4: "The Meeting Recorder"

  • Idea: Record + transcribe + summarize meetings
  • Built: 6 months
  • Never launched
  • Lost: $9,600 in time + $3,400 in development

Why it failed: Otter. ai crushed me before I shipped

Total damage:

  • Money: $27,990
  • Time: 15 months
  • Emotional toll: Immeasurable

[THE REALIZATION - The Pivot]

After $28k and 15 months of failure, I had a breakdown.

Called my dad. Cried. Asked if I should just get a job.

He said something that changed everything:

"You're not failing at building a SaaS. You're failing at selling."

What he meant:

Every product I built was FINE.

The tech worked. The UI was decent.

But I never validated that people would PAY for it.

I was building and HOPING someone would buy.

Instead of selling and THEN building.

[COGNITIVE DISSONANCE - The Truth]

Here's the uncomfortable truth about SaaS:

The product is 10% of success. Distribution is 90%.

If you can't:

  • Get traffic
  • Convert visitors
  • Retain customers
  • Charge enough to survive

...then it doesn't matter how good your product is.

Most failed SaaS products are good products with no distribution.

So I tried something different.

Instead of building a SaaS, I built a digital product.

Specifically: Automation templates.

The Difference:

SaaS Model:

  • Monthly recurring revenue
  • Ongoing support required
  • Infrastructure costs
  • Churn is constant anxiety
  • Need scale to survive

Digital Product Model:

  • One-time purchase
  • Minimal support
  • No infrastructure
  • No churn
  • Profitable at small scale

What I Built:

Notion dashboards + n8n automation workflows.

The Bundle:

  • Command center (Notion template)
  • 3 AI agents (n8n JSONs)
  • Setup guides (videos)
  • Prompt library (500+ prompts)

Price: $297 one-time.

Results (3 months):

  • 143 sales
  • $42,471 revenue
  • ~4 hours/week support time
  • Zero infrastructure costs

Profit margin: ~92%

Here's what I actually think:

Most people shouldn't build SaaS.

They should build digital products that LOOK like SaaS but don't have the downsides.

What I mean:

Instead of building a platform, build a template. Instead of charging monthly, charge once. Instead of scaling infrastructure, sell files.

The Benefits:

  • Build once, sell forever
  • No support tickets at 3 AM
  • No server costs
  • No churn anxiety
  • Immediate profit

If you want to build something profitable (not scalable):

Step 1: Solve Your Own Problem

Build automation/systems/templates that save you 10+ hours/week.

Use it yourself for 30 days.

Step 2: Package It

Turn it into:

  • Notion templates
  • n8n workflows
  • Figma kits
  • Spreadsheet systems
  • Code snippets

Whatever format makes sense.

Step 3: Document It

Write the setup guide. Record the video walkthrough. Make it plug-and-play.

Step 4: Sell Before You Scale

Get 10 sales manually.

Don't build infrastructure. Don't raise money. Don't hire a team.

Just sell it.

Step 5: If It Works, Then Scale

Only AFTER you've proven people will pay should you consider:

  • Turning it into a SaaS
  • Building a team
  • Scaling infrastructure

To make $10k/month:

SaaS Path:

  • Need 1,000 customers at $10/month
  • Or 100 customers at $100/month
  • Churn rate: 5-10%/month
  • Need constant new customer acquisition

Digital Product Path:

  • Need 34 sales at $297
  • No churn (one-time purchase)
  • Each sale is PURE profit after costs

Which sounds easier?

I'm still not "successful."

$42k in 3 months sounds great until you realize:

  • I worked on this for 15 months (if you count the failures)
  • My "hourly rate" is still probably $25-30
  • I have no idea if this will work next month

Build a life, not an empire.