Vertical SaaS: $0 to $10M ARR With Flat Pricing for Everyone
The SaaS Podcast - AI, Growth & Product-Market Fit for SaaS Founders Podcast Recap
Published:
Guests: Hewitt Tomlin
What Happened
Hewitt Tomlin, co-founder of Team Builder, shared the journey of growing their SaaS company to over $10 million in ARR with a team of 45 people. Team Builder uniquely charges the same price to NFL teams as it does to local high school teams, focusing on enhancing the capabilities of strength and conditioning coaches rather than replacing them with AI.
Team Builder started as a social app for athletes but pivoted to a B2B SaaS for coaches after valuable feedback from a university strength coach. The company is 100% bootstrapped, and it took five years to reach the first million in ARR, with consistent revenue growth year after year.
Hewitt Tomlin and his co-founder, James, have collaborated without ego, maintaining the same operating agreement since 2012. They initially worked full-time jobs while moonlighting Team Builder until it reached $100k ARR. Product-market fit was achieved when inbound interest increased without outbound efforts, driven by a transition to inbound marketing.
Team Builder's pricing strategy was influenced by Huddle, a giant in the sports SaaS field, and they maintain a flat pricing model for all customers. About half of their customers are high schools, which have increasing budgets for software and are now paying more strength coaches than a decade ago.
Hewitt Tomlin emphasized the importance of understanding customers' desired outcomes over their expressed needs. He believes many young entrepreneurs struggle to grow beyond $200k to $500k ARR due to a lack of product-market fit.
Hewitt Tomlin is cautious about implementing AI features, preferring to enhance human coaches' capabilities and improve employee productivity internally. He remains inspired by the Industrial Revolution's impact on jobs, aiming for AI to enhance the strength and conditioning profession rather than replace it.
Key Insights
- Team Builder reached over $10 million in ARR with a flat pricing model, charging the same for NFL and high school teams. This strategy, influenced by Huddle, focuses on enhancing coaches' capabilities rather than replacing them with AI.
- The company was initially a social app for athletes but pivoted to a B2B SaaS for coaches, achieving product-market fit when inbound interest increased. This was driven by a switch from outbound to inbound marketing as the customer base grew.
- Hewitt Tomlin and James maintained their operating agreement since 2012 and bootstrapped Team Builder, achieving the first million in ARR after five years. They worked full-time jobs while moonlighting the company until it reached $100k ARR.
- Team Builder's growth strategy emphasizes understanding customers' desired outcomes. Hewitt Tomlin believes many young entrepreneurs struggle with product-market fit, impeding growth beyond $200k to $500k ARR.
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