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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 RangeMotionTeam Shape
Under $5KProduct-ledMarketing + Product
$5K-$25KSales-assisted PLGSDRs + AEs
$25K-$100KInside salesAEs + Solutions
$100K+Field salesField AEs + SEs + CS

The Sales Process

Discovery Questions

  1. Workflow: "Walk me through how you handle [process] today"
  2. Pain: "What breaks? What takes too long?"
  3. Cost: "What does this cost you in time/money/risk?"
  4. Decision: "Who else needs to be involved in changing this?"

The 90-Day Pilot

CRE and most B2B verticals want fast proof:

WeekActivityDeliverable
1-2Setup + trainingUsers onboarded
3-6Core workflow adoptionUsage metrics
7-10Expand use casesROI data
11-12Business caseExpansion proposal

Success criteria: Define ONE metric upfront that proves ROI.


The Five Smartest Questions

Before building any vertical product, answer:

  1. "What workflow am I collapsing from days to minutes, for whom, and how often?"

    • Frequency × time saved = willingness to pay
  2. "Who pays 5-6 figures/year to remove this pain, and what's the economic lever?"

    • More deals, faster leasing, lower OpEx, better compliance
  3. "Why am I uniquely qualified (founder-market fit)?"

    • Domain scars are competitive advantage
  4. "What data exhaust makes this sticky and compounding?"

    • System of record > point tool
  5. "Can I prove ROI in 90 days with one specific metric?"

    • Buyers want fast pilots, not experiments

Build Priorities

PriorityWhatTimeWhy
1Nail one workflow1-3 monthsHigh perceived value
2Anchor to hard ROI2-4 weeksEasier procurement
3Founder-led sales3-12 monthsQuality customers
4Design integrations as product+20-40% engReal moat
590-day ROI pilots3-9 monthsRepeatable playbook

Context