To scale revenue quickly, avoid low-price/high-volume 'rabbits' and high-price/low-volume 'elephants'. A mid-market 'deer' strategy, centered on a ~$10,000 transaction, provides the optimal balance of deal size, sales cycle length, and customer volume for rapid growth.
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When selling high-ticket services, don't raise prices incrementally. Instead, make a significant jump (e.g., from $3,800 to $8,000). If it doesn't sell, you've gained valuable market data and can simply re-price the next cohort. The upside of finding a new price ceiling far outweighs the risk of a single failed launch.
SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.
Founders often mistakenly start with low-margin, mass-market products (the "save the whales" syndrome), which makes the business look damaged. A better strategy is to start at the high end with less price-sensitive customers. This builds a premium brand and generates the capital required to address the broader market later.
Instead of building a daily-use "toothbrush" product and searching for monetization, a more powerful model is to start with a high-value, profitable transaction (like a mortgage) and work backward to build daily engagement. This inverts the typical Silicon Valley startup playbook.
Stop targeting the ambiguous "mid-market." Your strategy, hiring, and ACV must align with either a marketing-led SMB motion or a sales-led enterprise motion. Blending them leads to failure as they are distinctly different games.
To achieve rapid, bootstrapped growth, don't choose between a service or a product. Start with a hybrid: a product with a service aspect. This allows you to generate immediate cash flow and validate the market with the service, while using that revenue to build the more scalable product asset.
Chasing ten $10k deals over one $100k deal is a mistake. Smaller deals attract clients who nickel-and-dime you, don't fully buy into the vision, and provide distracting feedback. A single large deal provides a committed partner who will help guide your product roadmap.
Selling a small, cheap "land" deal to an enterprise customer is dangerous. When you try to expand, they will question the 10x price jump, making it nearly indefensible. Start with a price ($75k-$150k) that reflects enterprise value to avoid being trapped by a low initial anchor.
Jumping to enterprise sales too early is a common founder mistake. Start in the mid-market where accounts have fewer demands. This allows you to perfect the product, build referenceable customers, and learn what's truly needed to win larger, more complex deals later on.
When Fal was debating its pivot, their investor Todd Jackson asked which idea would get to $1M ARR faster versus $10M ARR faster. This framework forced them to evaluate not just immediate traction but long-term market size and velocity. It provided the clarity needed to abandon a working product for one with a much higher ceiling.
