VSaaS Protocols
How do you build and sell vertical software?
The Development Playbook
10 steps from idea to scale:
1. Pick Your Vertical
Focus on industry, not idea. Look for:
- Large market size ($1B+)
- Fragmented (many SMBs)
- Mix of small, mid-market, enterprise
2. Understand the Industry Inside-Out
- Map end-to-end operations
- Get hands on P&Ls
- Follow the money—where are they spending?
- Identify areas still using pen & paper
3. Analyze Existing Solutions
- Look for legacy providers
- Identify where they're using horizontal solutions
- Find gaps where AI/Fintech could add value
4. Build the Wedge Product
Your "get in the door" offering:
- Easy to implement
- Solves a critical problem
- Ideally free or low-cost
Example: Roofr's proposal tool
5. Nail Go-to-Market
- Many industries require relationship-based sales
- Product-led growth is ideal (but rare)
- Get creative: Industry newsletters, memes, community
6. Own Payments
- Build before/after transaction, then capture it
- Owning the transaction can 10x your market size
- Example: Toast in restaurants
7. Price on ROI
- Understand current spend on problem you're solving
- Price based on ROI you deliver
- Aim for 20-50% of value created
8. Only Build Products That:
- Increase revenue
- Decrease costs
- Prevent churn
- Maintain compliance
If it doesn't do one of these, don't build it.
9. Validate With Operators
- Don't just Google search
- Talk to actual businesses
- Offer to buy lunch and shadow operations
10. Measure and Compound
- Every feature creates data exhaust
- Data feeds AI, AI improves product
- Product improvements increase switching costs
GTM Motion Types
Match your motion to your ACV:
| ACV Range | Motion | Team Shape |
|---|---|---|
| Under $5K | Product-led | Marketing + Product |
| $5K-$25K | Sales-assisted PLG | SDRs + AEs |
| $25K-$100K | Inside sales | AEs + Solutions |
| $100K+ | Field sales | Field AEs + SEs + CS |
The Sales Process
Discovery Questions
- Workflow: "Walk me through how you handle [process] today"
- Pain: "What breaks? What takes too long?"
- Cost: "What does this cost you in time/money/risk?"
- Decision: "Who else needs to be involved in changing this?"
The 90-Day Pilot
CRE and most B2B verticals want fast proof:
| Week | Activity | Deliverable |
|---|---|---|
| 1-2 | Setup + training | Users onboarded |
| 3-6 | Core workflow adoption | Usage metrics |
| 7-10 | Expand use cases | ROI data |
| 11-12 | Business case | Expansion proposal |
Success criteria: Define ONE metric upfront that proves ROI.
The Five Smartest Questions
Before building any vertical product, answer:
-
"What workflow am I collapsing from days to minutes, for whom, and how often?"
- Frequency × time saved = willingness to pay
-
"Who pays 5-6 figures/year to remove this pain, and what's the economic lever?"
- More deals, faster leasing, lower OpEx, better compliance
-
"Why am I uniquely qualified (founder-market fit)?"
- Domain scars are competitive advantage
-
"What data exhaust makes this sticky and compounding?"
- System of record > point tool
-
"Can I prove ROI in 90 days with one specific metric?"
- Buyers want fast pilots, not experiments
Build Priorities
| Priority | What | Time | Why |
|---|---|---|---|
| 1 | Nail one workflow | 1-3 months | High perceived value |
| 2 | Anchor to hard ROI | 2-4 weeks | Easier procurement |
| 3 | Founder-led sales | 3-12 months | Quality customers |
| 4 | Design integrations as product | +20-40% eng | Real moat |
| 5 | 90-day ROI pilots | 3-9 months | Repeatable playbook |
Context
- VSaaS Principles — Strategic truths
- VSaaS Performance — Metrics that matter
- VSaaS Players — Team composition
- Protocols — Standardized methods