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Why 80 % of SMBs Torch Their Ad Budget Before Finding Their First Real Customer
r/Entrepreneur
6/25/2025
SAAS TOOLS
| SaaS | URL | Category | Features/Notes |
|---|---|---|---|
| https://www.linkedin.com | Professional Networking | Used for building hand-picked prospect lists | |
| Facebook Ads | https://www.facebook.com/business | Advertising Platform | Paid ads that generated clicks but no sales |
| Stripe | https://stripe.com | Payment Processing | Mentioned as integration for commission tracking |
USER NEEDS
Pain Points:
- Burning through marketing budget without acquiring customers
- Paying for ads without understanding target audience
- Spending time on branding before validating product-market fit
- Difficulty tracking and rewarding referrals effectively
Problems to Solve:
- Identifying and reaching the right target audience
- Validating product demand before scaling marketing
- Converting ad clicks into actual sales
- Efficiently managing affiliate/referral programs
Potential Solutions:
- Building hand-picked prospect lists through networking
- Personal outreach via email to qualified leads
- Focusing on audience research before paid advertising
- Using commission-tracking platforms integrated with payment systems
GROWTH FACTORS
Effective Strategies:
- Prioritizing audience research over broad advertising
- Validating product-market fit through direct outreach
- Leveraging personal networks for initial customer acquisition
Marketing & Acquisition:
- Targeted email outreach to curated prospect lists
- Using LinkedIn and local business groups for lead generation
- Implementing affiliate programs with commission tracking
Monetization & Product:
- Ensuring product solves a clear need before scaling
- Integrating with payment systems like Stripe for seamless transactions
User Engagement:
- Building relationships through personalized communication
- Creating community through shared experiences (e.g., books like Crazy Startuper)