Before You Build, Validate
The simple approach that showed Gong had real buyers
Hey, it’s Elan. Welcome to my newsletter on what worked for SaaS startups that reached their first $1M in ARR. If this is your first time here, sign up and be the first to read future posts.
This week’s ‘How Founders Think’ insight comes from Amit Bendov, Co-founder and CEO of Gong.
Most companies do not succeed, not because they lack a great idea. But because there are not enough people willing to pay to build a viable business.
Amit understood this early while starting Gong. Instead of assuming the idea was great, he went out to test whether anyone would actually pay for it.
He reached out to 50 people he did not know. People with no reason to be polite or encouraging.
He shared the concept: A system that listens to customer conversations and shines a light on what is really happening across sales teams.
Then he asked three simple questions.
How much would you pay?
What concerns do you have?
What would stop you from buying?
Two things became clear.
People thought the idea sounded too good to be true, which meant they saw the value.
And most gave the same price, about $50/month, which showed there was a real market willing to pay.
The calls proved the problem mattered and that people were willing to pay for a solution. Only then did the team commit to building the product.
The lesson is simple: Your idea might sound great to you. What matters is whether enough people will pay for it.