Bootstrapping social media SaaS tools to $10M ARR with Michael Kamleitner, @Walls.io/Swat.io

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/ . I’m your host Anna Nadeina, Head of Growth for saas.group.

In episode #1, we are talking with Michael Kamleitner, CEO at Walls.io, an all-in-one social wall solution that allows you to collect, curate, and display content in an easy-to-customize feed. And the Founder at Swat.io, a social media management solution for agencies and enterprise customers.

From Web Developer to Social Media Entrepreneur

Michael’s journey began over 15 years ago as a web developer. In 2008, he became fascinated by the emergence of new social media platforms, like Facebook, and the opportunities they presented for building marketing apps. He founded a small software agency, focusing on developing these types of applications.

It was through this agency work that Michael and his co-founder, Andreas, identified a growing need among their clients for a tool to manage the increasing volume of social media conversations and interactions. This led to the creation of Swat.io, a social media inbox that allowed teams to efficiently respond to and engage with their customers and fans across multiple platforms.

Bootstrapping and Phasing Out the Agency Business

As Swat.io started to gain traction, Michael and his team recognized the potential to turn it into a scalable SaaS product. Michael admits that it took too long to phase out the agency business, as the short-term revenue was tempting. He emphasizes the importance of being disciplined and dedicating resources solely to product development, rather than splitting time between agency work and the SaaS product.

It took around two years for Michael and his team to transition fully from the agency model to a product-focused approach. During this time, they were careful to ensure a smooth handover of responsibilities and a clear separation between the two business lines.

Navigating the Challenges of Social Media Dependence

One of the significant challenges faced by Walls.io and Swat.io is their reliance on social media platforms, which can be unpredictable and subject to sudden changes. Michael openly acknowledges the risks associated with this dependency, citing examples such as the Cambridge Analytica scandal and Elon Musk’s surprise announcement of Twitter’s enterprise API fees.

To navigate these challenges, Michael and his team have developed a sense of resilience and a cautious approach to adopting new social media platforms. They rely heavily on customer feedback and their own industry experience to evaluate the potential impact of platform changes and new trends, rather than jumping on the latest hype train.

The Importance of Community and Mental Health

As a solo founder, Michael has experienced the loneliness that can come with the entrepreneurial journey. He emphasizes the value of building a strong team and surrounding himself with a supportive community of fellow founders and CEOs.

Michael is actively involved in the local SaaS community in Vienna, co-organizing the SaaS Club Vienna meetups. He also participates in the European SaaS conference, SaaStock, which he finds to be a valuable source of knowledge and camaraderie, particularly for bootstrapped founders who may not always relate to the stories of heavily funded startups.

In addition to community support, Michael stresses the importance of maintaining a healthy work-life balance and finding ways to manage stress and burnout, whether through sports, therapy, or a structured daily routine.

Lessons Learned and Advice for Aspiring Founders

• Embrace a cautious, disciplined approach: Michael’s journey has taught him the value of taking a measured, methodical approach to building a SaaS business, rather than chasing the latest trends or making hasty decisions.

• Prioritize team and community: Surrounding yourself with the right people, both within your company and in a broader founder community can be a game-changer in navigating the challenges of entrepreneurship.

• Delegate and focus on what you do best: Michael’s decision to hand over the management of Swat.io to a trusted team member allowed him to focus his energy on Walls.io, where he felt he could add the most value.

• Don’t be afraid to hire help: Michael regrets not bringing on an assistant or administrative support sooner, as it could have provided valuable leverage and freed up his time for more strategic work.