The SaaS Podcast: Build, Launch & Scale Your SaaS

AI Agents: Pivoting from Consulting Services to $1M ARR | Cotera


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Ibby Syed accidentally built a consulting agency while trying to build software. In this episode, early-stage B2B SaaS founders will learn how Cotera escaped the "services trap" and pivoted to AI agents to hit $1M ARR.

Ibby breaks down why hitting $150k ARR in consulting revenue was actually a "local maxima" that nearly killed the startup. You will learn how his co-founder replaced months of data science work with a 100-line OpenAI API experiment, and the painful but necessary decision to fire legacy customers to focus on a scalable product.

In this episode, Ibby also reveals his "value-first" LinkedIn outbound strategy that books 25+ meetings a week, why horizontal AI platforms (like Cotera) will outlast narrow vertical tools, and how they transitioned from custom enterprise contracts to a product-led growth model.

This episode is brought to you by:

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🔑 Key Lessons

  • 📉 The Consulting Trap: Why early service revenue can trick you into building an unscalable agency instead of a software product.
  • 🤖 The AI Pivot: How 100 lines of OpenAI API code outperformed a massive data science stack and sparked the pivot.
  • 📧 LinkedIn Outbound: The "Value-First" playbook (sending free leads, not pitches) that books 25+ meetings a week.
  • 🛠️ Horizontal vs. Vertical: Why broad tools (like Zapier/Cotera) are more defensible than niche AI wrappers.
  • 💰 Pricing Strategy: Moving from custom enterprise contracts to a $20/mo usage model to fuel PLG.
  • Chapters

    • The consulting trap and false traction
    • Why $150K ARR nearly killed the company
    • The 100-line OpenAI experiment that changed everything
    • Firing customers and stopping services
    • Pivoting to AI agents and prompt-based workflows
    • Why deals became easier after the pivot
    • LinkedIn outbound by sending free value
    • Horizontal vs. vertical AI startups
    • Pricing from enterprise contracts to PLG
    • 💌 Get weekly 5-minute SaaS insights: https://saasclub.io/email

      SaaS Club Programs

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      • Build your $10K MRR SaaS: https://saasclub.io/launch
      • Scale from 6-figures to $1M ARR Faster: https://saasclub.io/mastermind
      • Resources

        • Full show notes: https://saasclub.io/463
        • Subscribe to the podcast: https://saasclub.io/subscribe
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          The SaaS Podcast: Build, Launch & Scale Your SaaSBy Omer Khan

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