GTM Sauce

Shipper · B2C · AI app builder

Skip the free plan and spend that money on paying users

~690 paying users, zero free users

Workedpricing

What they did

Offers no free tier because the AI product is expensive to run in time and money; invests the money instead into the product for paying users. Cheapest plan is $25/month.

What happened

~690 paid users, no free users, $25.6K MRR

In their words

I Built A Micro-Version Of A $1B SaaS. Now I Make $50K/Month

Play from 2:05
1:39

DavidSo, we're currently at 25.6k MRR, as you can see here, net volume 65k, that's last month plus what we did this month, ARR is 307k. So, the majority of our MRR is here, but we've migrated Stripe accounts just maybe a month ago. So, as you can see, this is our old account, and it shows from August pretty linear growth, all the way up to late February to March. So, 90% of our revenue comes from subscriptions,

2:05

Davidand the other 10% comes from one-off top-ups. They have separate credits called cloud credits, which allow people to build back ends, whereas builder credits let them do everything else. So, even though MRR says 25k, gross volume is 71k, that's because of all the top-ups. We currently have around 690 paid users and zero free users. We don't offer free plans. As much as we'd love to, we've decided it's better to invest the money we're making in building a better product for our paying users. And this is an expensive service to maintain, both in terms of time and money.

2:35

Pat WallsOkay, cool. I like that. I like to see that you have hundreds of paying customers and zero free customers. If you're doing anything bootstrapped or indie, focusing on paid plans only, I think that's super smart. I want to switch topics a little bit and talk about your background. You built an AI coding tool, you must be like a coding genius. How do you get here and build this app that's doing over $50,000 in gross volume a month?

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Tags: no-free-plan, paid-only, high-compute-costs