Product Launch

Reading Time: 2 minutes

E158: How To Solve The Moat Problem For Your B2B SaaS

AI has made it easier to build more capable B2B SaaS products.  However, this has made it harder to build defensibility into your product.  Let’s talk about how to solve the ‘Moat Problem’ for your B2B SaaS.

Sign up for my free email course on launching a profitable B2B SaaS product for less than $750 –

Episode Transcript
 Hey folks, Sean here, and in this episode I want to talk to you more about how to solve what I call the AI mote problem. Now, if you’re considering adding AI to your B2B SaaS or your B2B SaaS already incorporates artificial intelligence, and I’m sure you’re very familiar with this problem now, one of the products I’m working on now leverages AI tools to strengthen its value proposition, and that’s my podcasting tool.

And one of the challenges with that is, The bar, the barrier to entry is relatively low. For those that know how to leverage artificial intelligence tools these days, meaning that it’s very easy to potentially build a basic competitor to what I’ve been building in this instance and what others may be building as well.

As such many that have experience in this realm are considering it to be a growing problem for those that want to create a defensible B2B SaaS product. And we’re referring to that as the moat problem, as in is very difficult to create any form of a moat to protect your business or your idea or your investment into any particular B2B SaaS if it incorporates or heavily leverages artificial intelligence.

Now, there is. The strategy that I think works best in terms of making your product more defensible is all related to continuing to go deeper as opposed to wider in your target market. So that’s the first thing. The second is the moat ultimately will materialize over time as you are continuing to add functionality that’s addressing the top problem worth solving for your target market.

I’ll give you a little bit more context here. Now, you might begin by building a product that solves a very specific problem, hopefully the top problem we’re solving, which I talk about a lot, and that should give you great early traction. Now if you’ve made it to this point with your product, You’re going to need to go further in order to potentially continue growth success and to go from a product to ultimately a business, because just starting with a single feature may not turn your product into a business.

You might need significantly more contribution than that. So if you leverage this strategy successfully enough, then it will become a business and the deeper you go into your target market, solving the top problem over and over again until you have created. A complete experience that offers your target market a ton of value to the point where your product essentially is invaluable to them, as in it’s a key part of what they do now all day, every day for your business customers, and they really couldn’t live without it.

Now you’ve got something that amounts to real potential of a significant moat, and that’s gonna be something that’s gonna be very difficult to replicate. Whether or not they’re leveraging artificial intelligence doesn’t matter all the time, effort, and energy that you’ve put into creating that product experience and providing all of that value for your target market.

That’s the defensible element for your B2B SaaS.