SaaStr · 2014-10-09 · 4256d

The 20 Interview Rule: Essential Customer Discovery Before Building Your SaaS Product

Jason Lemkin argues that SaaS founders should conduct 20 interviews with real, potential customers before writing code to understand their target market and avoid building products that miss the mark. The article contrasts two $1M ARR startups, showing how early customer knowledge creates better positioning for scaling to $5M-$10M ARR. Lemkin breaks down the 20-interview framework into three phases: understanding the white space (interviews 1-5), confirming patterns (6-10), and refining pitch and strategy (11-20).

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Metrics in this report

Annual Recurring Revenue at Case Study Point

1m$

both startups

SaaS startups analyzed in article

Customer Interviews Conducted by Second-Time CEO

78interviews

in Q4 only

resulted in $0 to seven figures in months

Minimum Customer Interviews Recommended

20interviews

minimum before code

enterprise/business SaaS startups

Monthly Recurring Revenue at Case Study Point

100k$

both startups

SaaS startups in growth stage before divergence

Optimal Customer Interviews Recommended

30interviews

optimal

enterprise/business SaaS startups if resources allow

Target Annual Recurring Revenue for Better Positioning Startup

5-10m$

growth target

scaling from $1M ARR with early customer knowledge