SaaS Entrepreneurship

This App Makes $25,000/Month

Starter Story 14 min #74
This App Makes $25,000/Month

This is how Lukas Hermann built a simple app to $25,000/month.


Summary

  • Lucas Herman

    • Background and Origin Story
      • Started his first development job in 2007 while still in high school, riding his bicycle to work and building HTML pages.
      • Began studying in 2017 because his father wanted him to have a degree.
      • Freelanced while studying because he wanted to understand what it felt like to run his own developer business.
      • Joined a startup after finishing his degree in 2020.
      • Made the first commit for Stage Timer in November 2020, shortly after COVID hit.
      • Quit his job in 2022 after his wife encouraged him and Stage Timer reached about $3,000 per month.
    • Pivotal Moments and Turning Points
      • Found the idea by watching a friend use an old Flash app on an old laptop to run timers in a studio.
      • Realized the workflow was awkward because his friend had to walk into another room to start a timer.
      • Shipped the MVP in three days by using technologies he already knew.
      • Took 224 days to earn the first dollar because Stage Timer was still a side project.
      • Reached $10,000 in monthly revenue by September 2023.
  • Products and Offerings

    • Stage Timer
      • Built Stage Timer as a simple timer for live events, presentations, and video productions.
      • Let one person control a timer while multiple people view it on other screens.
      • Helped event teams communicate with people on stage more easily than holding up paper signs.
      • Supported use cases such as TED-style talks, TV broadcasts, election coverage, and horse races.
      • Included messaging so operators could show notes such as asking a speaker to hold a microphone closer.
    • MVP
      • Started with one core feature: clicking a button in one place to start a timer somewhere else.
      • Launched as a free tool before monetization.
  • Metrics and Financials

    • Revenue and Users
      • Reached $25,000 in revenue per month.
      • Served 20,000 total users.
      • Had 4,400 users who were paying or had paid at some point.
      • Received 86,000 unique visitors per month.
    • Costs and Profitability
      • Spent about $280 per month on servers and infrastructure.
      • Spent about $250 per month on tools and services.
      • Spent about $1,400 per month on paid ads.
      • Ran the business at an 80% to 90% profit margin.
  • Strategy and Growth

    • Reddit Validation
      • Found niche subreddits where video production people gathered.
      • Posted once per subreddit with a link and asked people to try the tool and give feedback.
      • Kept the early website free so users treated the post as a feedback request rather than a sales pitch.
      • Received detailed feedback from people who wanted the app and suggested improvements.
    • Search and Niche Content
      • Generated about 50% of traffic from Google.
      • Created documentation pages and videos for specific niche workflows and integrations.
      • Targeted high-intent keywords from people looking for concrete answers.
      • Found useful keyword opportunities by publishing documentation and articles, then doubling down on what people clicked.
    • Word of Mouth and Product-Led Growth
      • Generated about one-third of traffic from people recommending Stage Timer to others.
      • Put the Stage Timer logo and name on every shared link.
      • Used a memorable domain in the logo so people could recall it after seeing it at events.
      • Kept a free tier so freelancers could bring Stage Timer to events and expose new customers to the product.
    • Family Business
      • Invited his wife to join after the first customers arrived and marketing and support needs grew.
      • Had his wife handle Google ads, sales emails, and customer support.
      • Focused himself on product, finances, development, and overall direction.
  • Tech Stack and Infrastructure

    • Development
      • Built the MVP with JavaScript, Vue.js, and NodeJS.
      • Avoided unfamiliar technologies so he could ship quickly and keep working in one-hour evening sessions.
      • Used Sublime Text and Sublime Merge as his development tools.
    • Business Operations
      • Used Airtable as a CRM with automations on top of customer data.
      • Used Postmark to send emails.
  • Lessons and Advice

    • Simple Ideas
      • Learned that many businesses still use awkward, outdated tools that developers could improve.
      • Recommended observing people outside the developer bubble to find simple workflows worth automating.
      • Believed there are many small niches that can support million-dollar app businesses.
    • Founder Advice
      • Encouraged builders to get started even if regulations, taxes, or bureaucracy feel intimidating.
      • Said people can build and scale simple businesses even in Germany.
      • Treated the key challenge as finding the right small opportunity rather than building something technically complex.
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