ScalingProven Pattern

Scaled through two distinct use cases: direct users and embedded API integrations

Insight from Ruben Gamez

When to use

When your product has natural appeal both as a standalone tool for end users and as infrastructure that other products can embed via API, allowing you to capture two distinct market segments simultaneously.

Don't do this

Focusing exclusively on direct users while ignoring that your core functionality could serve as embedded infrastructure for other businesses, missing a significant revenue stream with lower acquisition costs.

3 Founders Who Did This

1
Gustoby Josh Reeves

Launched embedded payroll API enabling vertical SaaS platforms to integrate Gusto payroll. 27 embedded partners by mid-2023 with ~1/3 revenue share model

Result:186,000+ additional SMBs accessed through embedded partners, creating second growth vector alongside direct customers
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2
SignWellby Ruben Gamez

Built two distinct growth channels: direct self-serve SaaS users and embedded API integrations for developers building e-signature into their own products

Result:API provides second revenue stream at higher price points ($275/month) while self-serve captures high-volume smaller customers
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3
Fiscal.aiby Braden Dennis

Scaled through two distinct use cases: direct terminal users (350K+ registered) and embedded API integrations serving fintech platforms and institutions.

Result:API business attracted strategic investment from VanEck ($1.5M) and justified $10M Series A from Portage Ventures
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