Why You Should Offer Your Product as a Service First: Aspiring SaaS Founder's Guide

The Common Startup Mistake Everyone Makes

Most founders fall into the same trap: they rush to build and scale their product as fast as possible. Whether it's a course, software, or any digital product, they skip the most crucial step - market validation through service.

Here's the truth: Before building any product, you need real-world insights that only come from paying customers.

Everyone of course can give you feedback, but not every feedback is valuable.

Why Start With Services?

Starting with services isn't about making quick money or raising investment . It's your fastest path to understanding what customers actually need and will pay for. Think of it as paid market research.

Key Benefits of the Service-First Approach:

1. Real Customer Feedback: You get unfiltered insights about what works and what doesn't
2. Revenue While Learning: You can generate income while validating your product idea
3. Lower Risk: You avoid building features nobody wants
4. Stronger Market Position: You develop deep customer understanding before scaling

The Critical Questions You Need to Answer

Through offering services, you'll find answers to these essential questions:

In other words, you won't waste time or money building nobody will use.

Customer Value Questions:

• Which parts of your service do customers actually use?
• What improvements do they consistently request?
• What specifically made them willing to pay?
• Which features turned out to be just "nice to have"?
• Would they actively recommend your service? Why or why not?
  
  

Trust me - finding answers to those questions are the most valuable thing for your product building process and they're super critical.

The Golden Question

The most revealing insight comes from understanding: What objections did customers have before purchasing, and how did their perspective change after experiencing the service?

Why Direct Questions Don't Work

Here's the tricky part: you can't just ask these questions directly. There are several psychological barriers at play:

1. The Politeness Problem

People naturally want to be nice and avoid conflict. This often leads to sugar-coated feedback that doesn't help you improve.

2. The Want vs. Need Confusion

Customers frequently mix up their actual needs with perceived wants. Classic example: They might say they need a roof when an umbrella would solve their problem perfectly.

3. The Confirmation Bias Trap

As founders, we can unconsciously:

• Manipulate conversations to hear what we want
• Ask leading questions that confirm our assumptions
• Ignore feedback that challenges our vision

How to Get Real Answers

To gather genuine insights, ask specific but open-ended questions. For example, instead of asking, "Did you like the service?" ask, "What was the most frustrating part of using the service?" Focus on behavior rather than opinions by reframing questions like, "Would you use this feature?" to "How many times did you use this feature last week?" Finally, observe what users actually do—track usage patterns, monitor which features they engage with most, and note where they encounter difficulties. This approach reveals actionable insights grounded in real behavior rather than subjective feedback.

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When to Pivot or Persist

Red Flags That Signal It's Time to Change:

If customers aren't willing to pay what you need to charge, it’s a red flag. Similarly, if certain features consistently go unused or you're hearing more "that's interesting" than "shut up and take my money," it’s time to reassess your value proposition and product-market fit.

Good Signs to Continue:

When customers are actively asking for more features, willing to pre-pay for improvements, and sending unsolicited referrals, it’s a strong sign that your product is delivering value and meeting a real need in the market.

The Hard Truth About Building Products

In today's world:

• Building something is easy
• Building something that solves a real problem is harder
• Finding people who will pay for it is the hardest part

Key Takeaways for Founders

1. Start by offering services related to your product idea
2. Gather real-world feedback through actual customer interactions
3. Focus on behaviors over opinions
4. Be ready to pivot based on market feedback
5. Only build what people will pay for

Questions to Ask Yourself

Are your prospects telling you what you want to hear or what you need to hear? How are you identifying pain points worth paying to solve? What evidence do you have that your solution is truly needed? Focus on understanding your market through services first—it’s far better than building a product no one wants.