First SaaS Customers From a Wizard-of-Oz MVP to $2.5M

First SaaS Customers From a Wizard-of-Oz MVP to $2.5M

Author: Omer Khan May 29, 2025 Duration: 52:27
"This is not a product," one of his first SaaS customers told him. They were right. Cello had no dashboard, no login portal, and no analytics - just shared Notion pages and Python scripts. But those first paying users still paid because the referral program actually worked. Stefan Bader reveals how he landed his first SaaS customers by turning pre-seed investors into design partners, why success-based pricing removed all early adopter friction, and how a "powered by Cello" casual contact loop now drives nearly 1 million widget opens per month for compounding initial traction. Cello is an all-in-one referral platform powering programs for companies like Miro and Typeform. Stefan bootstrapped from a Wizard-of-Oz MVP to $2.5M ARR and 7 million monthly users. 🔑 Key Lessons 🤝 Turn investors into first SaaS customers: Stefan offered pre-seed round tickets to potential buyers, creating shared financial incentives that converted investors into committed design partners willing to tolerate an unfinished MVP. 🛠️ Ship the Wizard-of-Oz MVP and iterate on what matters: Cello delivered analytics via Notion pages and ran Python scripts behind the scenes. First paying users said "this is not a product" but stayed because results were real. 💰 Use success-based pricing to remove all friction: Cello charges nothing until referrals generate revenue. This eliminated risk for early adopters and created natural alignment. 🚀 Build a casual contact loop for compounding growth: The "powered by Cello" link reaches nearly 1 million opens per month. Each new customer adds users to the loop, making inbound grow exponentially. 📝 Lead with proprietary data to land top content partners: Stefan partnered with Kyle Poyar by providing unique referral benchmarks, getting Cello in front of tens of thousands of subscribers without paid sponsorship. Chapters Introduction What Cello does and the problem it solves Revenue, team size, and 7 million monthly users Origin story as CRO at a payment company Building the MVP with compliance and scalability first The Wizard-of-Oz MVP with Notion and Python scripts Freemium success-based pricing for first SaaS customers Building a compounding growth system with growth loops The casual contact loop and "powered by Cello" Content collaborations with Kyle Poyar Network sales and leveraging investors as first SaaS customers Lightning round and book recommendations Resources Full show notes: https://saasclub.io/445 Join 5,000+ SaaS founders: https://saasclub.io/email

For anyone building a software company, the journey from an idea to a sustainable business is filled with specific, often daunting, questions. The SaaS Podcast-AI, Growth & Product-Market Fit for SaaS Founders exists to answer those with concrete stories, not abstract advice. Each week, host Omer Khan sits down with founders who have actually done it-they discuss the messy reality of securing those first few customers, the difficult adjustments needed to find true product-market fit, and the tactical decisions behind scaling to and beyond a million dollars in annual revenue. Conversations delve into the nitty-gritty of pricing models, sales processes, reducing churn, and the practical application of AI in a SaaS context. Omer’s perspective is shaped by having personally coached over a hundred and fifty founders past critical revenue milestones and conducting interviews with more than five hundred others. This depth of experience means every episode cuts straight to actionable insights, whether you’re painstakingly bootstrapping toward ten thousand in monthly recurring revenue or managing the complexities of rapid growth. The focus is relentlessly on proven strategies that have worked in the real world. Tuning into this podcast feels like gaining access to a private mastermind, a resource where thousands of other founders gather weekly to learn from the honest successes and setbacks of their peers.
Author: Language: English Episodes: 100

The SaaS Podcast - AI, Growth & Product-Market Fit for SaaS Founders
Podcast Episodes
Building AI Products: The Positioning Shift to 7 Figures [not-audio_url] [/not-audio_url]

Duration: 44:55
He raised over $50M for TeamFlow, then fired two-thirds of his team when COVID ended. Flo Crivello pivoted to building AI products with Lindy, an agent platform that lets anyone automate workflows without code. The first…
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Duration: 56:48
100,000 signups in the first month. A SaaS churn rate of 99.9%. Richard White had only 100 people actually using Fathom daily after Zoom featured them in their marketplace. Instead of panicking, he used those low-quality…
SaaS Product Validation: 7 Years Before the Fit Clicked [not-audio_url] [/not-audio_url]

Duration: 52:30
Seven years. Near-zero revenue. Multiple failed prototypes. Rob Woollen's SaaS product validation journey at Sigma Computing is one of the longest in SaaS history. He raised $8M, built prototype after prototype, and rece…
First SaaS Customers: 100% Conversion From Free to Paid [not-audio_url] [/not-audio_url]

Duration: 57:36
He got his first SaaS customers without spending a dollar on sales or marketing - and converted every single one to paid. Jared Siegal built a consulting business with 30 clients at $2M revenue, then deployed a strategy…
AI Startup to $1M ARR in 90 Days With TikTok Affiliates [not-audio_url] [/not-audio_url]

Duration: 55:08
Zero followers. Zero ad budget. $1M ARR in 90 days. David Zitoun built an AI startup from nothing by recruiting 50+ TikTok affiliates who posted daily videos for 30% lifetime commissions. Two years later, Submagic hit $8…
SaaS Go-to-Market: From 3-Month Cycles to 5-Day Closes [not-audio_url] [/not-audio_url]

Duration: 45:06
Two years building an enterprise product nobody wanted to buy. Jonathan Festejo spent years on a SaaS go-to-market strategy that targeted the wrong buyers. Sales cycles dragged to three months, and enterprise teams kept…
SaaS Content Strategy: Free Demos That Built $1M ARR [not-audio_url] [/not-audio_url]

Duration: 58:56
Cold outreach failed. Product-led growth stalled. Joseph Lee turned to a SaaS content strategy that was anything but conventional - creating free demos for strangers on Reddit, responding to product update emails with pe…
SaaS Product-Market Fit in a Category Nobody Asked For [not-audio_url] [/not-audio_url]

Duration: 42:01
Everyone assumed Prodoscore was just another surveillance tool. Sam Naficy had to find SaaS product-market fit for a product category nobody asked for - while employees and buyers assumed his company was spying on them.…
Sales Pipeline: 18 Months of Zero Deals Then 35 Meetings [not-audio_url] [/not-audio_url]

Duration: 58:26
Egidijus Pilypas spent 18 months burning cash on outreach and didn't close a single deal. Every cold call, cold email, and RFP response failed because by the time Exacaster entered the buying process, competitors had alr…
Enterprise SaaS: Why Excited Customers Still Said No [not-audio_url] [/not-audio_url]

Duration: 53:50
A prospective customer wanted to hug Rami Tamir after his pitch. Six months later, she rejected the product. That early lesson in misleading enterprise SaaS validation shaped how Salto grew from a self-funded idea to 8-f…