Pivoting from Consulting to $1M ARR (The AI Agent Strategy) | Cotera

Ibby Syed accidentally built a consulting agency while trying to build software. Then, he executed a SaaS Pivot to AI Agents and hit $1M ARR. In this episode, Ibby (Co-founder of Cotera) reveals how to escape the "Service Trap." Learn why hitting $150k ARR in consulting revenue was actually a "local maxima" that nearly killed the startup, how his co-founder replaced months of data science work with 100 lines of code, and the specific LinkedIn Outbound Strategy (sending free leads) that books meetings with high-value buyers. He also breaks down why teaching customers to build their own AI Agents is the secret to scaling a horizontal platform. 🔑 Key Lessons 📉 The Consulting Trap: Why early revenue can trick you into building a service business instead of a product. 🤖 The AI Pivot: How 100 lines of OpenAI API code outperformed a massive data science stack. 📧 LinkedIn Outbound: The "Value-First" message script that books 25+ meetings a week. 🛠️ Horizontal vs. Vertical: Why broad tools (like Zapier/Cotera) will outlast niche AI wrappers. 💰 Pricing Strategy: Moving from custom enterprise contracts to a $20/mo usage model to fuel PLG. 📖 Chapters: Introduction & The "White Collar" Quote The Y Combinator Journey & The First Idea (Customer Analytics) Old Outbound vs. New Outbound (LinkedIn Strategy) The "Consulting Trap": Revenue vs. Scalability The Wake-Up Call: 100 Lines of Code vs. Data Science The Pivot: Building an AI Agent Platform (Cotera) The "Teach, Don't Do" Service Model Prompt-Based Workflows vs. Drag-and-Drop Pricing Evolution: From Enterprise Sales to PLG Why Vertical AI Startups Might Die Founder Advice: Focus & The "Local Maxima" This episode is brought to you by: 💖 ⁠Gearheart⁠ → Book a call + get the first 20 hours of development free 🚨 ⁠⁠⁠⁠⁠NordStellar⁠⁠⁠ → ⁠⁠⁠⁠⁠Book a demo and get 20% off with code blackfriday20 📡 ⁠⁠⁠Signal House⁠ → ⁠⁠⁠Learn more and get a demo Resources: 🎧 Full Show Notes: saasclub.io/463 🎤 Subscribe to the Podcast: saasclub.io/subscribe 💌 Get weekly 5-minute SaaS insights: saasclub.io/email 💡 Join the SaaS Club founder community: saasclub.co/plus