He demoted his SaaS to sell a service and 4x'd revenue in 12 months
Show notes
Six years of grinding, and SaaS churn kept capping his growth: win a customer, lose a customer, repeat. Then one pricing call flipped everything. Farzad Rashidi pivoted Respona to a done-for-you service-as-software model and 4x'd in twelve months the revenue it took six years to build. Farzad shares why adding features never fixed his SaaS churn, the agency CEO haggle that sparked the pivot, how he demoted his own SaaS on the homepage to lead with the service, and how he rebuilt a software layer on top so the business could scale. Respona helps brands get cited in AI answers across ChatGPT, Perplexity, and Google AI Overviews. Farzad first appeared in episode 323 as a self-serve outreach tool doing a few hundred thousand in ARR, before SaaS churn stalled it; today the first done-for-you customer alone spends around $65K to $70K a month. This episode is brought to you by: 🍎 Product Fruits → Book a demo tailored to your product 🔑 Key Lessons 🔄 Service-as-software beats pure SaaS when usage drives SaaS churn: Respona's customers canceled because they had no time to use the tool, not because it lacked features, so doing the work for them removed the real reason for churn. 💰 Price on outcomes, not subscriptions: When Farzad shifted from an $800 monthly license to paying per result, the same customer who haggled over $300 immediately committed to $7K to $8K a month, then scaled to $65K. 📉 A plateau is a signal to change the model, not add features: For years Respona feature-slapped the product to fight SaaS churn and stayed stuck; growth only came after they changed the business model, not the feature set. 🛠️ Build the software layer back on top of a service-as-software model: After delivering manually off a Google Sheet, Respona rebuilt a client portal, publisher network, and a back-end brain so the service could scale like software. 🎯 Productize the service so it moves on an assembly line: Respona set five fixed tiers, volume-based discounts, and paid add-ons, avoiding the custom-call trap that makes traditional agencies impossible to scale. 🚀 Off-page SEO is making a comeback for AI visibility: To get cited in AI answers, Respona finds lookalike publishers, publishes fresher skyscraper content, and builds a surround-sound presence so the models repeatedly encounter the brand. Chapters 00:00 The call that changed everything 00:30 Introduction 01:18 What Respona does today 02:48 Respona's origins and the first interview 04:13 Early traction, then the SaaS churn plateau 06:20 Stuck feature-slapping the product 08:07 The pivotal customer call in early 2025 10:52 Why going into services felt like the cardinal sin 11:50 How AI changed the services math 14:20 Delivering the first service off a Google Sheet 14:54 Testing demand and finding product-market fit 19:18 Rebuilding a software layer on top 22:13 Service-as-software and the YC and Sequoia thesis 27:59 Productizing the service with fixed tiers 31:27 How AI answers get generated (the Notion example) 37:14 Finding lookalike publishers and fresher content 43:12 Surround sound and the Opus Clip case study 45:06 Is SEO dead and the truth about Reddit 50:54 Lightning round Resources Full show notes: https://saasclub.io/487 Join 5,000+ SaaS founders: https://saasclub.io/email
Guests
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