From Traction to Transaction: What to Do When Your SaaS Is Popular but Your Wallet Isn’t
So, you’ve launched your MVP and popped the champagne—congrats! But now your users are loving it, engagement is solid, and yet... your bank account still looks like it's on a starvation diet. Welcome to the SaaS founder's nightmare: when your product gets attention but your revenue doesn’t. It’s time for a wake-up call that goes beyond celebrating traction. This is about reassessing what your product is really worth, having some no-nonsense chats with your users, and making smart, calculated moves to turn that engagement into actual dollars.
At Strike Labs, we know how frustrating it can be when your SaaS product has traction but your revenue isn’t following suit. The following is a clear path we use to help our clients bridge that financial gap. Our approach turns user interest into paying customers by reassessing product value, engaging users in meaningful dialogue, and making strategic financial decisions that drive growth without unnecessary sacrifices.
Step 1: Establish a Revenue Baseline
Of course, offering your product for free for a few months can be a great way to gather feedback and iterate quickly. But let’s be real—it can also mask the true value your clients perceive in your offering. The first step toward monetization is understanding what your MVP is really worth to your users. Having targeted discussions with your beta users can reveal valuable insights that go beyond basic engagement metrics. Start by asking questions that dig deeper than surface-level interest:
“What do you think someone with your expertise and in your position at a similar company would be willing to pay for this service as it stands?”
This question subtly shifts the focus from the individual to the broader industry context, easing any discomfort and fostering more candid feedback. Directly asking, “What would you pay?” may provoke guarded responses or low estimates. This reframing taps into collective industry thinking, leading to more authentic feedback.
“What features or improvements would justify paying our target price of $#?”
This question helps identify critical product enhancements that could unlock payment willingness and revenue growth.
“If these features were live today, what would prevent your company from becoming a paying client tomorrow?”
This helps you separate serious prospects from those whose interest may never translate into actual payment. It also pinpoints any roadblocks that stand between user engagement and revenue conversion.
“If we commit to delivering these features in X months, would you be willing to sign up now?”
This gauges the trust your beta users place in your product roadmap and their openness to early commitment, providing insight into potential pre-launch contracts.
Step 2 - Prioritizing and Categorizing Feedback
Organizing user feedback is crucial to shaping your product roadmap and revenue strategy. Group user input into four categories:
Must-Have for Immediate Purchase - These features are non-negotiable; without them, users will not convert to paying clients. Prioritize these to drive immediate monetization.
Near-Term Must-Have - These are necessary features that users can wait for, provided there is a commitment to delivery within a defined timeframe. Securing early contracts contingent on these features can unlock early-stage revenue.
Nice-to-Have - These features add value but aren't essential for conversion. Only prioritize these once Categories 1 and 2 are satisfied.
Potential Value for Others - Users may suggest features they believe could be beneficial to others, even if not to them directly. While well-meaning, these should not dictate your immediate development plan. Log them for future consideration to avoid misallocating resources.
This structured approach ensures that your development priorities are aligned with generating revenue and maintaining a focused strategy.
Step 3 - Assign Monetary Value to Feedback
To fully leverage the insights gathered, it’s essential to quantify the potential revenue each feature could bring. Ask beta clients:
“How much more would you be willing to pay if this feature were included?”
This clarifies the financial weight each feature holds and informs your financial strategy. By quantifying user preferences, you can clearly differentiate between features that drive real value and those that may not justify development costs.
Step 4 - Calculate Predictive Cash Flow and Operating Costs
Once you've gathered insights and assigned monetary value to each feature, it's time to forecast your financials. Calculating predictive cash flow and operating costs is crucial for understanding how much capital you need to bring your monetization strategy to life. This step involves a few key elements:
Estimate Revenue Projections - Use the data from your beta user feedback and feature value assessment to project future revenue. Incorporate the expected income from committed users and potential early-stage contracts. Ensure these projections are realistic and grounded in the responses from your users to avoid overestimating your financial runway. When in doubt, cut in half.
Break Down Operating Costs - List your current and upcoming operating expenses, including salaries, marketing, customer support, and infrastructure costs. Factor in any additional costs associated with developing and launching the prioritized features. Be thorough—hidden costs can disrupt even the most well-crafted plans.
Cash Flow Analysis - Combine your revenue projections with your operating expenses to map out your cash flow. Identify any cash shortfalls that could arise during feature development and launch phases. A detailed cash flow analysis will give you a clear picture of when you’ll need external funding or when you’ll start generating enough revenue to cover your operating costs.
Determine Funding Needs - Based on your cash flow projections, pinpoint the amount of capital required to bridge any financial gaps. This figure should be as precise as possible to support discussions with lenders or investors. By knowing exactly how much you need, you’ll be better positioned to explore funding options without over-committing or diluting ownership unnecessarily.
A Case Study: Strategic Feature Prioritization in a FinTech SaaS Platform
Consider a FinTech Signal Intelligence (SigInt) SaaS platform evaluating feedback from its beta clients—Citibank, Bridgewater, and Goldman Sachs—to prioritize development efforts and maximize revenue.
Current Annual Revenue Breakdown:
Citibank: $120
Bridgewater: $60,000
Goldman Sachs: $600
Analyzing Expected Revenue from New Features
Client Commitments by Feature:
Revenue Analysis and Development Costs
Development Costs:
Real-Time Data Analysis: $20,000
Predictive Insights Module: $25,000
Enhanced Security Layer: $10,000
Profit/Loss Calculation:
Real-Time Data Analysis: Expected profit of $70,000 ($90,000 revenue - $20,000 cost)
Predictive Insights Module: Loss of $14,000 ($11,000 revenue - $25,000 cost)
Enhanced Security Layer: Net profit of $10,100 ($20,100 revenue - $10,000 cost)
The chart below visualizes the financial impact of developing each feature, highlighting which options offer the greatest return on investment.
Strategic Revenue & Cost Analyst for Feature Prioritization
Securing Funding to Bridge Development Costs
With clear priorities established, the next step is securing the capital needed to fund feature development:
1 - Raise Capital
Raising funds through investors can accelerate development, but it comes with trade-offs, including ownership dilution and increased pressure for rapid scaling. If your product aligns with market trends like AI or blockchain, this could attract significant investor interest.
2 - Borrow Capital
Borrowing allows you to secure funds without giving up equity. Options include:
Bank Loans or Lines of Credit: Access capital at standard interest rates with collateral.
Development Partner Financing: Trusted partners may offer funding under structured terms. At Strike Labs, for instance, we extend:
Payment-in-Kind Loans: Up to $200,000, secured by a lien or software equity.
Terms: A 25% increase on principal and an interest rate linked to the U.S. Prime Rate, with 75% of future revenue allocated to repayment until made whole.
3 - Preloaded Revenue
Securing preloaded revenue from beta clients involves offering contracts with incentives for early payment. This is particularly effective for users in Category 2, who need features but are willing to commit financially based on a set timeline.
Pro Tip: Ask Beta Clients for Non-Binding Letters
Founders can enhance their funding appeal by collecting non-binding letters from beta clients that outline their feature requirements and projected willingness to pay. These letters, presented on company letterhead with clear contact information, serve as proof of demand to potential lenders. Demonstrating client interest helps secure financing at better rates, reducing operational costs and supporting scalable growth.
Moving Forward with Confidence
Turning an MVP into a revenue machine isn't exactly a walk in the park, but it's far from impossible if you play it smart. Engage your beta users, zero in on the features that actually matter, and get creative with your funding options. You might be surprised—once you crunch the numbers, you could find that you don’t need nearly as much cash as you thought. Even better, you can keep your company afloat without making a deal that feels like selling your soul to the devil.
