# What's ACTUALLY Happening in SaaS Right Now ## Метаданные - **Канал:** TK Kader - **YouTube:** https://www.youtube.com/watch?v=471Jk0wTFes - **Источник:** https://ekstraktznaniy.ru/video/27876 ## Транскрипт ### Segment 1 (00:00 - 05:00) [] Public markets stocks completely crashing. The best AI companies. The most successful, fastest growing ones. Their vibe coding tools to create more SaaS companies. And finally, founders that started calling themselves AI founders all of a sudden are okay with calling themselves SaaS founders. And at the same time, the search volume and the trends for how to grow a SaaS company is absolutely skyrocketing in my metrics. What exactly is going on with SaaS today, and what do you do as a founder of a software company? Whether you are an AI company or a SaaS company or some hybrid of the two? In this episode, I'm going to walk you through the three big trends that's actually happening in SaaS and AI today. And then once I explain exactly these three trends, I'm going to explain why these are true, why have high conviction around them? I'll prove it to you. And then I'm going to show you how to win in this market. And when you follow all the principles and understand the trends, I'm going to show you by the end of this episode, you're going to be able to accelerate your path to the next stage of growth by taking advantage of the macro trends in the market. Interim. What's everybody? Welcome to unstoppable. I'm T. K. and on this channel, I hope I and SaaS founders like you grow your business faster with an unstoppable strategy. if you're new to this channel, welcome. I drop an episode every single Sunday with actionable strategies and tactics on how to grow your AI and SaaS business faster. So be sure to hit that subscribe button and that bell icon. You'll get notified every single time I drop an episode with the TC energy. Now, if you're already part of this community, this fast growing channel and my coaching program is my people, welcome back. Really awesome to see over here. Now here's what we're going to do on this episode. We'll walk you through the three big macro trends. And then we'll show you why they're true. Why have high conviction around them and how I developed them. And then I'm going to teach you how to win. Now for context, the reason I know about these trends that are happening is because, one, I've been in the SaaS industry for quite some time. My last company told App we were back by and recent Horowitz and Jackson Square Ventures, and we came in right around the time of the on premise to the cloud transformation trend. That was a big platform shift. That was happening, and we were a SaaS platform, we're able to grow the company. We pioneered the sales engagement space, and then we exited it to Marketo. After selling cloud app to Marketo, I joined the executive team as their VP of strategy, and I learned firsthand what it takes to truly scale a SaaS business at upwards of 450 million a year. And again, at that time, there's a big platform shift happening between on prem to cloud and then to mobile, which was the last platform shift that happened. We did a two year transformation on Marketo. We sold it to Adobe for $4. 75 billion. After that, I started unstoppable. Unstoppable was my coaching business where I work with founders like you to build and scale software companies. I've help founders at millions of dollars of IRR. Through the years that I've been coaching and helping founders actually scale companies. The key to winning, the key to winning through all these years has been to truly understand the big macro trends that are happening in the software industry and playing to them, whether it's on premise to cloud, cloud to mobile, and now cloud to AI. But here's the thing it's not exactly obvious and what's going on, which is why we're going to dig into the exact three trends that are happening to be excited, dig, and going to smash that like button for the YouTube algorithm. And let's dig right into it. Trend number one, as we dig into it of what's actually happening in SaaS right now. And SaaS and I combine is that proprietary data is winning proprietary data. Whether you look at the most successful AI companies or SaaS companies that have added AI features in either case, the companies that are taking the large language models and are actually adding proprietary data sets, they are actually yielding better results for customers. For the ones that are just doing a thin wrapper around the land, either they are gaining initial traction or flailing out, or they're just not succeeding because people are saying, hey, we could just use cloud directly or ChatGPT directly or Gemini directly. So the ones that are truly winning actually have access to proprietary data. Now let's dig into this a little bit more on why this macro trend is important. Historically, there's been three types of SaaS platforms. You have the system of record. This has been the most valuable. This is your CRM. I'm going to put $3 signs over here. So the system of record has been traditionally the most valuable. The CRM platforms, the platforms the finance platforms, the ERP platforms, this is what stores all of the data. And traditionally they have been the most valuable because when a company actually sets up their system of record, they're very unlikely to actually move off of it. So you have high retention. It's highly valuable. The second most valuable type of SaaS platforms that have existed are the systems of engagement. ### Segment 2 (05:00 - 10:00) [5:00] The system of engagement is $2 signs instead of the $3 signs. The system of engagement is where people actually do the work. Now, originally, the systems of records like the crowns weren't very good for actually doing the work. They were just data entry forms. So all these companies started building on top of the CRM platforms. My last company, tout app included, where we actually help people do their jobs, and we took all the data and plugged it back into the CRM and took the data from the CRM to make the workflow that much easier. And system of engagement became that much more valuable. When we first started out, no one really knew about sales engagement platforms. Fast forward to today. It's a $5. 2 billion category, but the CRM category is still way bigger than that. So it just goes to show that system of record is still the most valuable. It stores all the data, and system of engagement is where you do all of the workflows. The third type of SaaS platform that exists is the system of decision, and this is the third most valuable. So that's $1 sign. This is the business analytics tool. This is the analytics and insights tools. This is the somewhat predictive tools. Before I actually came out before LMS truly came out, they sat on top of the system of record, engagement, on top of that, they looked at all the data, workflows and just helped humans make decisions. This is traditionally been the stack both in the on premise world and in the cloud world. And traditionally these three systems were used by humans. Now, because of large language models, you can say, hey, actually, we can probably take over some of the system of engagement, meaning your humans don't really need to do anything. We can just do it for you. We can also go in and say, hey, our large language model can actually analyze all of your data, look at all the work that your humans are doing and help you make better decisions. So over here has been a huge amount of AI wrappers. And, you know, traditionally the chat GPT wrappers that have been added on top of existing systems, the little chat bot that got added has been systems of decisions, which is why traditional SaaS companies just check the box and saying, hey, we have I just added a system of decision and they didn't get very far. They didn't really get that much alpha. But what's really happening right now in today's world is this segment. AI companies, and also some of the SaaS companies that are getting smarter, a lot faster are coming in and saying, hey, you have humans using the system of engagement and logging data into the system of record. We're just going to sell you an agent that does the work for you, middle of the middle or end to end. I'll explain what that is in a second. And this is where a lot of the SaaS companies are starting to get disrupted. Or at least that's the thesis. This is what's happening. These agent companies are coming in and saying, hey, you are right now paying $125 per seat per salesperson to actually use outreach or sales loft or even Salesforce. We're going to put in our agent, and you don't have to hire any people, and they'll just do the prospecting for you or close the deals for you. There are some agent companies that are promising that we'll see what happens and what ends up happening is people are wondering, like, hey, if these agent companies are really successful, then the system of record in the system of engagement is going to die. They're not going to add more seats, hire as many humans, these agent companies are going to take over. But this is where the bot comes in. And this is where this macro trend comes in. These agents can't really do their jobs without proprietary data. These agents. Let's just take a simple example of a BDR agent. This is a BTR agent where you're actually taking inbound leads and you're nurturing them to get turn them into actual meetings and pipeline. That's a BTR agent. Well, this BDR agent could just go off of the land data and say, hey, I'm just going to email these people, but these BDR agents only work well if you can actually analyze all the data in the CRM and that, what the humans are doing to achieve success for this specific company, then these agent companies are able to take that data, combine it with the lab and actually deliver results. But in the absence of that, these agent companies aren't able to yield success, which is why so many of the AI pilots tend to fail. So this goes to show that while these agents are powerful, they are nothing compared to the system of record, and maybe even the system of engagement. And these are the two most valuable, pieces of the stack. So what that means is that the companies that have the proprietary data are the ones who are going to have the most successful. I use cases and agent use cases. Without the data, none of it will matter. Now, in some of these cases, you could argue that a startup will be able to just integrate in the Salesforce and sales loft and whatever platform you have your data, HR platform, ERP platform and these agents would be wildly successful. But at the same time, you might think, hey, Salesforce is just not going to sit around and do nothing. They'll likely acquire one of these agent companies and offer their own and own the data and wall off the data so that other companies can't benefit from it, so at the same time. What's really happening is, while AI companies are valuable, the idea of an agent is valuable. ### Segment 3 (10:00 - 15:00) [10:00] I explain in number two and number three, these two trends will explain what's actually valuable about them. The data is more valuable than anything else. So the first big trend that's really happening is in SaaS. The data is turning out to be the greatest asset. So if you're a system of record SaaS, engagement, SaaS offering, then chances are as long as you are looking at adding a gigantic capabilities, not this simple chat bot stuff, which is in the decision layer, which is like lowest value. You're truly adding capabilities to actually do things based on the data and actually track the record and make the data even better. you're going to be successful. Now there are going to be upstarts that try to tap into your data and add value for your customers, and that's going to be where the competitive battleground is going to be fought. That's what we're going to be fighting over. But proprietary data is the key part. Now, what that means is if you've got a SaaS offering that's just a thin wrapper around, ChatGPT or OpenAI's model or Claude, whichever model you're using, if it's just a thin, wrapper around it, then you need to work fast at tapping into proprietary data so that the output of your application is better than what would happen if the user just went into directly into the large language model and just asked for it. So that's going to be your bar. So the stand rappers are going to die unless you're prompting capabilities of that much better. But really your proprietary data is going to be that much better, and therefore your results are going to be that much better than just typing it into the chat bot itself. And that's going to be your competitive advantage, because you can actually say, hey, look, you can go try typing it into ChatGPT and see how it does. Or you can use our product. Our product is going to deliver results, and you can do a seven day free trial or a 30 day, pilot so you can structure it in any way. But that's going to be your alpha proprietary data is the big macro trend that's really happening, whether you're SaaS or any AI company. And this is one of the sub points where I saw for a good 12 month period where every founder that's a SaaS founder and a millionaire or millionaire almost felt ashamed of calling themselves SaaS founders and felt compelled to add an AI chat chatbot, and check the box and say that they're AI founders now. But now I'm actually seeing there's a little bit more reality in the market, and some of them are saying, look, I'm a software founder and others are saying I'm a SaaS founder because it's all converging. There's no SaaS company that's not going to have AI. And in fact, the SaaS company. And I'll explain this a number to on what that also means from a business model perspective. there's no asking me that's not going to have AI. But also every SaaS company has proprietary data and therefore we born more valuable. So it's definitely shifting because of this macro trend. That's number one. Let's go to number two. We're going to go back to the red macro trend. Number two is recurring revenues. And what I mean by that I'll explain is seed based. credits. Here's the thing. That was eye opening. To me, over 75% of OpenAI's revenues comes from their ChatGPT subscription product. The $20 you pay are the $200 you pay. Depending on the tier you in. More than 75% of their revenues is their SaaS pricing software. As a service pricing. So what's really happening here is that the business model of SaaS, separate from the product type, these are the product types of SaaS, your system of record engagement decision. But the business model of SaaS, where you swipe a credit card and you commit to paying a certain amount every month, recurring revenue, or you sign up for a one year deal and you pay for the year upfront. Again, recurring revenue, stronger than ever, more valuable than ever. It's the best business model that's ever been created. And this is why so many private equity firms are getting into SaaS and have gotten into SaaS. And this is why every VC still loves that recurring revenue. Because when you have revenue that is guaranteed to be recurring, it is valued higher than revenue that you sold once. And this is why also so many people were freaking out about calling AI revenue true. And your recurring revenue, because what it really was, was a bunch of pilots that people were just trying and then canceling, whether it was at the enterprise level, mid-market or in the SMB level. So what is coming out? What is the pattern, the macro trend is the business model of SaaS, the recurring revenue business model, stronger than ever. How it's being implemented is there is seed based pricing where you can use it to a certain amount, and then you add credits. And how it's ending up on the enterprise is also kind of like reserved instances of EC2, meaning when you sell EC2, Amazon, service Web services to an enterprise company, they don't want to pay $9 a month per instance. They want to say, look, we have a certain cloud budget. We want to actually estimate what our workload is going to be. We want to commit to reserved instances, and we want to get a discount. That way we know what our spend is going to be. So every enterprise is like We want some predictability in what our spend is going to be. So they'll prepay for credits, though estimate well how much they'll need. They don't want to get skyrocketed credits. Same with any business owner. Like think about it. You put something on Vercel and you see all these things on ### Segment 4 (15:00 - 20:00) [15:00] AKS about, oh, our traffic blew up and now we have a $50,000 bill. It's like, yeah, that sucks. You don't want that. what's really happening is people are saying, look, I want seed based revenue, and then I'll buy a certain amount of credits. And then when I go for one year, I'll actually buy more credits and reserve credits. So we can actually estimate how much our total cost of ownership is going to be and compare it to our ROI, so that this is a real deal. I mean, plug it in. So the business model of SaaS stronger than ever. now number one AI company, over 75% of their revenue comes from seed based pricing. So seed based pricing is still very, very powerful. problem ends up being where, hey, with SaaS and the AI, I call it AI SaaS. Now, the problem ends up being you have, token costs. But what's also happening is token costs are going down faster than ever, which is awesome. the other thing that's happening is you're not going to add more seats because companies are getting leaner. what you're really doing is you're doing the seed based and maybe turning that into a platform fee. then you're saying, hey, this is how many credits you get, which is you're getting rewarded for per unit of work that you're doing. And this is one of the things that is probably the only delineation that really matters between AI companies and SaaS companies today, which is SaaS companies are selling to humans to use it. So it's going after the software market. AI companies are market, but really they're going after the labor market, which is a bigger market, saying you don't need to hire those next five people. You just need to buy our software and you'll pay us accordingly. It'll be a fraction of paying the humans. So these credits thing is going to grow, but it's going to be on top of the actual seed base and platform fees. And that's what's happening but recurring revenue stronger than ever. Major trend. And even the AI companies are going for this kind of pricing one, because people just want predictability on their spend and their own. And that way they can compare the ROI. But also you want net expansion, which is true for SaaS also. But because you're not going to be hiring as many employees, you're going to get more robots. You going to do more work. Credits are how are you going to get net expansion? And that's what's becoming more true than ever before. As the second macro trend. Now, the third macro trend is where this all starts to come together. This is huge in terms of what you do in terms of your AI product and your SaaS product. And then I'm going to get into why and then how to win in this market. but before I do that, let me pause here for a second. Are you starting to see the power on this? This is a very exciting time for SaaS. And I just for building a software company, it is become easier than ever to build software. Which is amazing. know, I have like, five cloud code sessions. I can't remember the last time I wrote a line of code. And I have a computer science degree. But at the same time, it's harder than ever to stand out. So there's opportunities and risks, but these macro trends really give us clarity on how to win. So if you've seen the power of this, can I just get a yes in the comments below and also smash the like button for the YouTube algorithm? It just loves it when you do that. And honestly, so do we. We put a lot of love into these videos. Also, if you're in this stage where you're a founder of a SaaS company or an AI company or the convergence of the two, I mean, ultimately becoming easier to build. It's becoming easier to build more features. What's becoming harder is to stand out. harder is to get distribution. What's becoming harder is to actually sell and market your product and actually, show that they can trust you because there's been so many people that overpromised on even AI. So if you're in that stage where you're really looking to figure out how to get distribution, then you should grab a copy of my five point I and SaaS growth strategy guide. It's completely free. It's composed of my best resources all in one place. You don't have to go anywhere right now. I'll tell you more about it at the end of this episode. Also link to it in the description below. Smash that like button and let's go to macro trend number three. Macro trend number three is fewer clicks too. of the things that I strive for is I like to find the true principles. This is something I learned at Bridgewater, the largest hedge fund in the world. I used to work over there. Ray Dalio, Bridgewater, that whole, and, one of the things I learned was to just find the truest principles, because that helps you make the best decisions. Think in terms of a first principles basis. I was learning this stuff while I was there back in, like, 2008, and, you know, no one knew about Bridgewater or Ray Dalio. But now he's like, really made it popular. But it's really true. And one of the things that's been true in SaaS, that's even more true in AI and just true in software is you have the user problem. And they want to actually do a series of things to get the result. And they use your software to do that. That's the whole reason people buy software, not because they want more software. They have a problem. They want to use this thing to get this result. And in the SaaS era, it would probably take 10 to 100 clicks to even get to an moment and then a thousand clicks to get to a result. Because the humans are using the software to do the work, you got to set it up, you got to connect the data, you got to import stuff, you got to create the workflows, and you got to do the workflow. You actually have to do the work. That's the number of mouse clicks or mouse tap clicks or whatever you want to call it, to actually get the result. ### Segment 5 (20:00 - 25:00) [20:00] People don't want to buy more software, they just want the result. Well, what's happening with AI? And this is why everyone's scared of SaaS getting disrupted, is what used to take a hundred clicks. Could take one click. Now, what used to take a thousand clicks could just be two clicks. Now I meaning you just go into the AI product that may sit, by the way, in order for it to actually deliver on this result and even deliver an moment. Guess what? It's going to need the proprietary data. Otherwise it won't really know what to do for you might look like, oh, that's kind of true, but not really true. My business is different and I guess it doesn't get it But still, it takes one tenth of the number of clicks for the user to actually get the result. That's always been true. That's how you actually made a better SaaS product. You think about things like user experience and design and what makes one competitor better than the other. Fewer clicks. That's what it comes as like, hey, our product will get you. This result in fewer clicks. What makes where new competitors completely demolish though entrenched players when they go in and say, hey, look, you start to do this, this and this, we do it in this many clicks and boom, people switch over. And that's more true than I, because the LM just can do so much more. And you have things like open claw, which is going huge right now. It's doing even more because that's full access to the computer with the LM. It can do incredible things with next to no clicks. You just do a few taps and tell you what to do. And it does it. That's what's happening. And that has always been true as a macro trend in software and SaaS. But it's more true today. And so the macro trend of fewer clicks is more true today. And therefore in order for you to win, you just have to figure out how to get your result to your ideal customer in fewer clicks. How can you reduce the number of clicks it takes to get a result for a customer? And by the way, how do you make it actually a result and not just hallucination or slop? Well, you actually do proprietary data and you tap into proprietary data, which means your result That moment is going to be better. And then you want to actually do it over and over and over, which means that you're going to charge them a platform fee and get credits for every single time you do the work for them, in as few clicks as possible. The human does less the business does less. You do all the work, you get paid for it. And that's how these two macro trends feed into this third one. those are the three macro trends that are happening. This is why I'm pumped for just being in software right now. And I call it I SaaS to be an AI SaaS. Because truthfully, no AI company is going to succeed unless they have a system of record underneath it. Either they're integrating into it or they're starting to own it. No way our company is going to succeed unless they have a system of engagement built into they integrate into it, or they own it. And what's probably going to happen for the big ones that really succeed, you know, the new sales forces in the world, the new work days in the world is that they'll start with integrating and then they'll take it over time, and they're going to get really big unless they get bought out. So that's what's going to happen. So this is a huge opportunity. But let me explain why this whole opportunity, why I believe in these and why these come together. And then I'm gonna teach you how to actually win. What do you need to do to win? I'm going to explain why least on platform shifts. So there's been three big platform shifts that have happened in my lifetime. In my experience as a SaaS founder now, as I founder and as a coach to founders to help them scale their software companies, number one has been on prem. That's on premise software to SaaS, and cloud. Let's just call it cloud. Right? We used to ship you the software. You paid a one time license, and we made money on the support fees. Then we changed that, to cloud, where you just subscribe to the software. That was a big shift, The next big shift was cloud to mobile. This, believe it or not, was a tough shift for a lot of companies because they knew how to create web based software. They didn't know how to do mobile. mobile applications for B2B software. And SaaS platforms were terrible. And you could argue they're so a little terrible. So they had to really adapt to that platform shift. What did they do? They bought a bunch of companies and got better. And then brand new mobile first companies did well. Mobile first was a big thing. Now no one thinks about it. It's like, well, of course you have a desktop solution and a mobile solution. Back then during that platform shift, a competitive differentiator was where mobile first, therefore were better. And the same thing happened. Now we're doing the eye shift. This is the AI platform shift. And truth be told, you probably have seen this 18 months ago. If you said, hey, we're an AI platform. It was like, oh my God, I got to check this out. But now they're like, okay, cool, who is it? And that was what happened when mobile first and then eventually got to were like, well, of course your mobile. Like, why is that special? Like, of course normal. And now it's gotten to a point where like, well, of course you have. Yeah. Like what you want me to do, like use the software. You're not going to do it for me. that's the new expectation. So this has happened before. I pulled some stats for you. Let me give you some numbers on why you don't want to freak out or overindex on this if you take the entire spend on it. Information technology ### Segment 6 (25:00 - 30:00) [25:00] like software platforms, all that 49 to 85% of the spend is still on premise software, which I know is mind boggling, because when's the last time you got a floppy disk or a CD-Rom to install your software? That's crazy right? Well, the truth is, if you look at the global spend, 49 and 85% is still on premise. And that's after, what, 20 years of SaaS as a platform shift and another shift on mobile 49 and 85%. That's crazy, right? Which means that we're still out there trying to convince companies to move over to the cloud, which is insane. But it's also still true. What's also true is that these systems of record, that's engagement companies, these systems of decision, these well-entrenched companies, all their stocks that are crashing, they're not going to sit still. They're going to add a gigantic features. They're not dumb and they have resources. So three things are going to happen because this has happened before. One, they're going to build it themselves. They're probably going to fail. It's probably going to be crappy. Then they're going to buy one of the start startups. There's going to be 50 startups. Three of them are going to be great. One of them is going to be bought and the other one's going to IPO. Some mix of that. And then separate from that, there's going to be new winners. And honestly, all three are going to happen and there is going to be a lot of losers. And that's okay. So what you want to understand is this shift is happening, but SaaS is not going to die tomorrow. Rome wasn't built in a day and Rome didn't fall in a day. And I do think about the Roman Empire and how it fell quite a bit. Believe it or not. Especially lately, it's very strange. I've been obsessed about the compounding effect and also how the Roman Empire fell. But it wasn't like a just like that. So it takes time. And the on premise empire still hasn't fallen 49 to 85%, depending on how you look at the numbers and so on prem to SaaS and cloud plow to mobile. And now AI. But even within this there's going to be winners and losers, and the SaaS companies are just going to sit still and die. They have cash, the resources that's why I believe these three macro trends are the most important macro trends to understand. And also why SaaS is not dead. And you want to double down on one of these platforms system of record system engagement system decision. And you want to add a generic features. And you want to understand the chessboard of how to win in software. And ultimately you really want to figure out how do we get fewer clicks to an because that product always wins that's going to be the best product. here's the big question. How do you actually win in this market, whether you're a SaaS company or any AI company? The first thing I would say is don't think about whether you're a SaaS company or AI company, because at the end of the day, it's software, and the customer is really what you want to solve for. the big thing that you really want to figure out to win is one, how do we get proprietary data? And you can first borrow it, but then you have to move towards owning it because players are going to take it away from you. At some point. They're going to find a way. The second is how do we actually, price this so it's easy to buy. And then how do we make it where we get expansion revenue. And the third one is how do we actually deliver this with fewer clicks. That's your Northstar metric. And how do we actually deliver the result? The more successful you're going to be in doing these three things, the more success we're going to be as an AI company or a SaaS company, you could be $100 million SaaS company. Right now it's the same three things. How do we get proprietary data and how do we prices so that we get paid for the work that we're going to do with agents? And how do we make the agents do the work that actually delivers a result in fewer clicks? Those are the three big things. That's what happens from a business structural and a from a product roadmap point of view. And guess what? Everyone's going to be doing this. All the best founders are CEOs So that leaves you with one of the things that I've come to realize in the age of AI, these three things are becoming table stakes. This is how you win. You understand these macro trends and you play to them. And I mentioned I worked at Bridgewater. What I didn't mention what I kind of mentioned was that I worked at Bridgewater during the great financial crisis. I worked there from 2007 all the way to 2010. Like the most incredible like time to be there in Bridgewater, made a ton of money during that time. And this is public knowledge. And, well, one of the things that I learned there that they used to teach us as a first principle was like, look, there's actually no such thing as good markets or bad markets because it's a hedge fund. There's only good bets and bad bets. And I've carried that in my life, where if you're a SaaS company, if you're a well-established SaaS company, there's no such thing as a bad market. Look at on prem just crushing it. Still, there's only good bets and bad bets if you're an AI company. Well, there's also 50 other companies and everybody's vibe coding and adding more features and probably copying your features or trying to copy your features. But there's no such thing as a bad market. It's only good bets and bad bets. And that gets me thinking about, like, what's the bet to make? Like, this is table stakes. Everyone understands this. Most smart founders will understand it. ### Segment 7 (30:00 - 34:00) [30:00] What is the thing that you really bet on? Like what's the good bet to me? And the thing that I've learned is in a world where it's easier than ever to build software, to build features, to build roadmap, to get to fewer clicks, to do the work distribution. And go to market is the ultimate moat. That's it. In a world where it's easier than ever to create more software, create more features, and get access to data, distribution is the ultimate moat because you can have the best product, but if they don't know about you it won't matter. No one will even get to the aha moment of your product. To realize your results are better. They have to know about you. They have to trust you. I've always been obsessed about go to market. That's why I've been working here at unstoppable for so long. With founders on Go to Market are differentiated go to market strategy. But it turns out it's more important than ever. the other thing is, there was a moment where I'm like, oh my God, like, do I have a job anymore? I will just do it. But then it turns out enough time has passed. I was like, if you could truly plug in what you do and have ChatGPT or Opus generate your go to market strategy and execute on it and get success, especially for the 0 to 10 millionaire stage where it's so crazy. Then every server owner would be successful right now. And that's not true. So turns out this is the hard thing. This is the thing that I still can't figure out. And it requires human taste to really get it right. So in this era with what's actually happening in SaaS right now, in AI right now, these are all problems that have solutions. Distribution and go to market is the ultimate moat. You nail that everything else sauce itself out. And speaking of first principles, I don't know if that's actually true and unique to AI today or that's always been true where distribution is still and always has been the ultimate moat. So now you know the three macro trends that I believe is happening in the SaaS industry. Let's recap. Number one, proprietary data. Those companies that have an access to proprietary data are going to win. So this includes the SaaS companies that own IT and the AI companies that get access to it and know how to use it. Number two, recurring revenue, seed based pricing stronger than ever. but you're adding credits on top. And number three fewer clicks to The quicker you get the actual result and the better the result is. If fewer clicks that takes those products are going to win. The reason I know these three are the three most important macro trends is because all of this has happened before. when you look at the revenues of how on premise is still 49%, that's two platform shifts ago, you've seen the winners and losers, losers that have happened along the way. There's plenty of winners that's going to happen from on prem to SaaS to cloud to AI. Tons of winners, because these well-entrenched players are going to build on their own. They're going to buy once their own stuff fails, and there's going to be independent companies that are going to be winners. There's going to be so many winners. What's important is that you actually get in there and you participate, and embrace the one advantage that you can get in all of this, which is a differentiated go to market strategy. So now you know the three macro trends, why I believe in them and how you can win. If you got value from this video, make sure you smash that like button. And also if you're in this stage, the biggest thing for you is to build a differentiated go to market strategy. So to help you with that, you may not know what that means and what goes into a scalable go to market strategy. That's working today in the AI era. Be sure to grab a copy of my five point AI and SaaS Growth Strategy guide. It's completely free. It's got my five key pillars of how to actually drive growth for your SaaS and the AI business. So to grab a copy of it, just go to get Unstoppable Coms strategy, get unstoppable. com/strategy, or just follow the link in the description below. Also, if you got value from this video, be sure to smash that like button for the YouTube algorithm. I drop an episode every single Sunday with actionable strategies and tactics from the trenches on how to grow your AI SaaS business faster. So be sure to hit the subscribe button. And that bell icon. That way you'll get notified every single time I drop an episode with the TC energy. If you have a fellow founder, if you were part of a WhatsApp group or slack group, we have a team member that we get value from. This video. Please share this video with them. We want to help as many founders and SaaS leaders as possible on how to grow their businesses in this incredible time. And also, if you're in this stage where you're really looking at, how do I get distribution? Be sure to grab a copy of my five point guide and then watch this video on how to create a go to market strategy today, so that you can actually scale growth and differentiate yourself from the competition. And lastly, remember everyone needs a strategy for their life and their business. When you are with us, yours, it's going to be unstoppable. I'm T. K. and I'll see you inside the five point SaaS Growth Strategy Guide or in this next video. Take care everybody.