Avoiding validation mistakes and going all-in on LTDs for SaaS with Patrick Kelly @Frontly

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #40, Anna Nadeina talks with Patrick, founder of Frontly, an AI-powered, no-code app builder and Curator, the simplest way to build human confirmation steps into your AI workflows.

Patrick’s path to entrepreneurship wasn’t traditional. At first, he aspired to be a professional musician. However, the harsh realities of the music industry led him to pivot. By the age of 22, he launched his first company—a late-night on-demand junk food delivery service. This venture was a stepping stone, allowing him to scratch the entrepreneurial itch and learn valuable lessons about running a business.

After roughly 18 months, he transitioned to tech, working for two rapidly growing startups, which helped him understand the ins and outs of the tech world. His experience there was pivotal, fueling his desire to create more innovative solutions. Patrick learned to code through YouTube, showcasing his determination to forge his own path in the tech landscape.

Building Frontly: the early days

Frontly, Patrick’s current venture, is an AI-powered no-code app builder. The idea sprouted from his experience with his second company, a Shopify app focused on drop shipping. Through this journey, he recognized the need for a user-friendly interface that could simplify the complex task of building software. His vision was to create something akin to “Stripe for user interfaces,” enabling startups to build their front ends without the need for extensive coding knowledge.

Initially, Patrick didn’t realize the no-code movement had taken off. He discovered numerous platforms while developing Frontly, but his goal remained clear: to create a builder that would empower users to develop their applications easily and quickly. The evolution of Frontly was shaped by his desire to democratize app development, making it accessible to all.

Navigating lifetime deals and revenue models

One of the significant lessons Patrick learned during his journey was about validation. In the early stages of Frontly, he focused primarily on product development, neglecting customer engagement. After raising funds without a solid user base, he realized the importance of validating his product through customer feedback.

Patrick’s introduction to AppSumo, a marketplace for lifetime deals, proved to be a game-changer. By offering his product for free initially, he garnered 5,000 sign-ups in just two months. This influx of users provided the much-needed validation and feedback to refine his offering. However, the challenge was that many users were primarily interested in lifetime deals, which posed a dilemma for Patrick as he initially preferred subscription models.

Eventually, he embraced the idea of lifetime deals, recognizing their potential for early-stage revenue generation. This approach allowed him to secure significant upfront funding, which is often a challenge for startups. While this strategy diverged from traditional recurring revenue models, it provided the financial runway necessary to develop Frontly further.

The role of a co-founder in startups

Pivotal to Patrick’s journey was the realization of the value of collaboration. After initially operating as a solo founder, he welcomed a co-founder, Scott, to the team. Patrick’s previous experiences had taught him the importance of building a strong team to tackle the multifaceted challenges of running a startup.

Having a co-founder who specializes in sales allowed Patrick to focus on product development. The synergy between their strengths created a more robust foundation for Frontly. Patrick learned that a startup is not just about the product; it’s also about the people behind it. With Scott’s expertise, they could navigate the sales landscape more effectively, which was crucial for their growth and outreach.

AI’s impact on no-code development

AI is reshaping the landscape of no-code development, and Patrick is at the forefront of this change. He believes that traditional static interfaces will become less relevant as AI systems evolve. Instead, the future lies in dynamic interfaces that adapt to user needs in real time.

Frontly is already incorporating AI capabilities, allowing users to generate applications through guided flows. Patrick envisions a future where AI automates much of the backend work, enabling users to focus on the creative aspects of app development. This shift will not only streamline processes but also enhance the overall user experience.

Leveraging AI in workflow and development

Curator, Patrick’s latest venture, is a direct response to the unpredictability of AI in workflows. The platform aims to integrate human confirmation steps into AI-generated processes, addressing concerns about AI’s reliability. By allowing users to approve or modify AI-generated content, Curator bridges the gap between automation and human oversight.

This approach is particularly valuable for industries where accuracy is paramount, such as marketing and content creation. By providing an approval layer, Curator empowers users to maintain control over their outputs, ensuring quality and relevance. Patrick sees this as a crucial step in fostering trust in AI technologies, especially for businesses hesitant to adopt them due to fears of unpredictability.

Pricing strategies for AI tools

Patrick’s experiences have shaped his understanding of pricing strategies for SaaS products. Initially, Curator adopted a usage-based pricing model, offering flexibility for users. However, feedback from early customers indicated that a flat-rate subscription might be more sustainable for the business in the long run.

By setting a base price with additional charges for approval workflows, Patrick aims to balance accessibility and revenue generation. This iterative approach to pricing reflects his commitment to aligning with customer needs while ensuring the viability of the business.

Sales strategies and targeting customers

As Patrick navigates the sales landscape with Curator, he emphasizes the importance of targeting the right audience. By focusing on AI and automation agencies, he can connect with potential customers who are already inclined to adopt innovative tools. This strategic targeting simplifies the sales process, allowing for more meaningful conversations with prospects.

Patrick’s approach to sales is grounded in genuine engagement rather than automated outreach. By fostering relationships and understanding customer pain points, he believes Curator can position itself as a valuable solution in the market. As he continues to learn and adapt, Patrick recognizes that the key to successful sales lies in understanding the unique needs of his audience.

Reflections on wins and failures

Throughout his entrepreneurial journey, Patrick has experienced both significant wins and challenges. He reflects on the confidence he has gained over the years, which is perhaps his most valuable asset. While he has yet to achieve a major exit, the skills and experiences he has accumulated provide a strong foundation for future endeavors.

Conversely, Patrick acknowledges the difficulties he faced with his previous startup, where reliance on the Shopify Marketplace led to unexpected challenges. These experiences have taught him the importance of adaptability and resilience, essential traits for any entrepreneur navigating the unpredictable startup landscape.

The founder’s mindset and journey

As Patrick continues to build Curator and refine Frontly, he emphasizes the need for a balanced perspective in entrepreneurship. He advocates for enjoying the journey, recognizing that challenges are part of the process. By maintaining a focus on personal well-being and collaboration, Patrick aims to create a sustainable and fulfilling entrepreneurial journey.

With a small, dedicated team, he believes that leveraging AI and no-code tools will allow them to scale efficiently without compromising their vision. Patrick’s story is a testament to the power of perseverance, adaptability, and the willingness to embrace new technologies in the ever-evolving world of SaaS.