The Distribution Mirage: Why SaaS Startups Are Underinvesting in GTM Infrastructure

Read time: 3 minutes.

Welcome to the 132nd edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

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Most SaaS founders have figured out how to build.

Very few have figured out how to distribute.

And that’s why hundreds of high-potential products stall between $1M and $3M ARR, not because of product-market fit, but because of distribution market failure.

Everyone’s Doing Growth. Nobody’s Built GTM Infrastructure.

Startups today are quick to test ads, launch campaigns, and chase channels.
But here’s the problem:

No clear ICP.
No pricing architecture.
No reliable lead engine.
No monetisation motion.
No data loop to track CAC payback or LTV expansion.

What looks like growth is often just noise. And what feels like traction is often just surface level virality with no system to convert or monetise it.

Why This Is Happening

The entire early-stage ecosystem overindexed on “build fast, ship fast”
but distribution wasn’t given the same architectural priority as product.

We treated GTM like a collection of tactics, not infrastructure.
That worked when CAC was cheap and TAM was forgiving.
But in 2025, distribution has become the bottleneck.

The 3-Layer GTM Stack Every Startup Needs

Here’s how I break it down inside the SaaS companies I operate:

[1] Strategy Layer

• ICP clarity (not persona fluff)

• Segmented TAM with prioritisation logic

• Value prop → pricing → margin mapping

[2] Systems Layer

• Cold outbound engine (structured, enriched, iterated)

• Paid & organic loops (with CAC payback benchmarks)

• Self serve + sales assist + CS handoff clarity

• Packaging that matches monetisation goals

[3] Signal Layer

• CAC by channel, tier, persona

• Activation + TTV + retention cohorts

• Burn multiple and sales efficiency

• Conversion intent heatmaps

Case Insight: Salesflow

At Salesflow, we turned off 3 channels and still increased MRR.

Why?
Because we killed vanity traffic and rebuilt a GTM infra around:

• Bottom-of-funnel SEO with programmatic intent

• Paid retargeting only where CAC payback hit under 3 months

• Activation flow tied to campaign launch, not just signups

• Tiered pricing tied to account size and expansion intent

It wasn’t a hack. It was infrastructure.

What I’d Do Differently Today (If Starting at $0)

[1] Build ICP segmentation before running ads
[2] Validate one paid + one organic channel to CAC payback
[3] Define activation not by clicks, but by value moment
[4] Bake expansion into onboarding and pricing from day 1
[5] Track margin, not just MRR

Final Words

The startups winning in 2025 aren’t just building better products.
They’re building better distribution systems.

GTM isn’t a deck. It’s infrastructure.
And if you don’t invest in it, growth will stall, no matter how good your product is.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria