Ibby Syed built his AI SaaS to $150K ARR—then realized he'd accidentally built a consulting business. Customers weren't logging in. They'd call with questions, get answers, and disappear. In this episode, early-stage B2B SaaS founders will learn how Cotera escaped the services trap and pivoted to an AI SaaS agent platform to hit $1M ARR.
Ibby breaks down exactly how to recognize you're stuck in a consulting trap and escape it. You will learn why his co-founder's 100-line OpenAI experiment outperformed months of data science work, and the painful decision to fire legacy customers to focus on building a real AI SaaS product.
In this episode, Ibby also reveals his "value-first" LinkedIn outbound strategy that books 25+ meetings a week, why AI SaaS products need ongoing utility (not one-time insights), and how teaching customers to build their own AI agents made the business scale.
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🔑 Key Lessons
🚨 Early AI SaaS Revenue Can Be a Trap: Ibby hit $150K ARR but customers weren't logging in. The business looked like software but operated like an agency—a dangerous signal he almost ignored.
🔄 The Consulting Trap Kills AI SaaS Scalability: When every customer needs custom work, you're not building a product. If customers call for answers instead of logging in, you've built a services business.
💡 Let API Breakthroughs Trigger Your Pivot: Ibby's co-founder solved a customer problem with 100 lines of OpenAI code that outperformed a complex data science solution. That contrast made the AI SaaS opportunity obvious.
🎯 Deliver Value Upfront in Outbound: Instead of pitching, Ibby sends actual leads from a Reddit monitoring agent. "If you actually show value, people go crazy for it."
📉 Analytics Products Lack Stickiness: Dashboards answer questions, but once answered, there's no reason to return. AI SaaS products need ongoing utility, not one-time insights.
🛠️ Teach Customers to Build, Don't Build for Them: After the pivot, Cotera stopped doing custom implementations. They showed customers how to build their own AI agents—that's what made the AI SaaS business scale.
Chapters
Introduction
Favorite Quote & Mindset
What is Cotera?
Ideal Customer & Revenue Snapshot
Founding Story & YC Entry
Early Product & Customer Interviews
Outbound Strategies on LinkedIn
Effective Outbound Today
Common Mistakes with AI Outreach
Realizing the Need to Pivot
OpenAI API "Wake Up" Moment
Transitioning to AI SaaS Agent Builder
Product Differentiation & Competition
Prompt-Based Workflow Approach
Traction Before & After Pivot
Evolving Pricing Model
How to Contact Ibby
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Resources
Full show notes: https://saasclub.io/463
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