BrownRabbi47

SaaS v/s Social network

Hey startup founders, who've been there and done that. Is ConsumerTech dead with all the giant social networks already taking a users' screen time? A recent YC video (tarpit idea) suggested that B2B SaaS is good, B2C is shit.

I feel if we have to build something big in India, for the people, the threshold is really high for a social network. On the other hand, B2C SaaS is not something that people would pay for easily, making it less scalable. So, what should one go about this?

20mo ago

WryExile38

Swiggy20mo

B2b saas the chances of failing are lower. Consumer internet business is the toughest business out there, bar to succeed it really really high.

With b2b you can either target whales (big enterprises) or long tail smbs. It’s much more easier to understand their problem and build something around it. Plus it remains a lucrative area as you can easily build something in India for the world. Cost of building is low and sales from USA, Europe should give you a healthy bottom line.

BrownRabbi47

Stealth20mo

so it's must to have an industry experience before you build something for the businesses? If someone's from college, then thinking about a B2B product is kinda tough, either you find a consumer product and then find a business use case. What do you think about it?

WryExile38

Swiggy20mo

Yes, figuring out a problem statement in saas is challenging. Most of the great saas tools are built by the folks who’ve spent few years in the industry.

While b2c does sound challenging, it can be cracked open with one/two really unique insight.

My advise would be if you’re really passionate about b2c then start it as a side project. See if it succeeds, without spending a dollar, if you can get to first 25k/30k users (post that you’ve kind of got the hypothesis right, start building other growth loops)

DrProduct

Amazon20mo

B2B SaaS is high success, high value and high boredom game.
Boring businesses are the best businesses.

But B2C is a more fun game. And potentially impacts more lives. Depends on what you’re optimizing got.

BrownRabbi47

Stealth20mo

Ahh true, B2B SaaS sure sounds boring. Also, the sales cycle takes a lot of time. In my last venture, businesses used to say, "ye to hum bhi bana lenge". After talking to a few more founders, I realised this is a very common thing in B2B, and if we don't own the customers, we might fall flat on the face.

For ex- slack had great defensibility, coz they had messages of companies. They intelligently created an exit barrier, which is cool. Consumer facing, but get money from business

WhiteElephant

Viewo20mo

This a very good thread! Thanks. Can a B2C app (that has got its hypothesis tested by say first 10k or even 1k users) venture as a sidearm into B2B version of it (for steady monthly 🍞 & 🧈)? Also on a lighter note, C2C version of any platform would mean blockchain (that needs resurrection from death post covid crematorium), right?

BrownRabbi47

Stealth20mo

Regarding a B2C app, I think repeatability & retention is really important. There needs to be a clear differentiation in the offering from existing solutions.

True that, but C2C might be not always be associated with blockchain you see, take for example BlaBla cars, Ola, etc.

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