The $34K SaaS Scammer Lesson: What No One Tells You About Running a White-Label Tech Company

So you want to run a white-label SaaS.
You’ve heard the pitch: “Just slap your logo on it, turn it on, and voilà—recurring revenue.”

But no one tells you what happens when the dream goes sideways.

Here’s what really happened to me.

The Setup Looked Perfect

I’d already built a successful company, so launching a white-label software business seemed like the next smart move.
Everything was in place. My branding, my onboarding, my packages. The platform was up and running, and I was excited to help small businesses with real solutions.

Then came the scammers.

I thought I was doing the right thing by making every feature immediately available on free trials.
Let them jump in. Let them win. Let them stay.

But what I didn’t realize was that the second I allowed access to high-consumption features—like uploading contacts and sending emails—I was putting my credit card on the line.

The $34K Scam I Didn’t See Coming

Fraudulent users started signing up using fake names and stolen credit cards.
They uploaded millions of stolen contacts and blasted out mass email campaigns.

And since I was the platform owner, I had to pay the cost of all those emails and SMS sends.

In just a few months, my brand-new SaaS business had racked up $34,000 in usage fees—none of which I could recover.
It was a brutal, painful lesson in what it really means to run a white-label software business.

What I Learned—and What I Do Now

Here’s what I wish someone had told me (and what I want to pass on to you):

• Don’t turn on all the features upfront.
  Only enable high-risk capabilities after a customer completes onboarding and shows up for a call.
• Make onboarding a non-negotiable.
  Live onboarding calls now serve a dual purpose: supporting our clients and acting as an identity verification step.
• Use Stripe Radar, credit card verification, and anti-fraud software.
  You’re responsible for the platform. You can be held liable—even if someone else breaks the law.
• Add flags, pauses, and manual approvals before usage-based billing begins.
  Don’t let a bot burn through your funds before you realize it’s fake.
• Require clear agreement to terms, pricing, and billing.
  Make your fee structure explicit. Ask customers to opt-in, show them where it’s stated, and include links in every single onboarding communication.

You Need a Defense Strategy

The hard truth is, as SaaS founders, we are at the mercy of our customers’ behavior.
Just a few bad players can trigger disputes, destroy your Stripe account, or worse—expose you to litigation.

So we’ve built layers of defense:

• Pre-onboarding feature limits
• Live onboarding verification
• Stripe Radar tools
• Auto-pause on suspicious usage
• Dispute-prevention flows
• Cyber liability insurance
• Legal-grade documentation trails

You don’t want to find yourself in court or locked out of your payment processor because someone else made a mistake on your platform.

SaaS Is Powerful—But It’s Not Plug-and-Play

Yes, SaaS is scalable.
Yes, the margins are great.
Yes, I now run a seven-figure platform business from my home by the river.

But I only got here because I learned the hard way—and didn’t let it break me.

If you’re stepping into the SaaS world, don’t do it in fluffy socks and fairy lights.
Get a grown-up’s perspective. Put protections in place. And build a business that’s not just profitable, but bulletproof.

Want to launch a recurring revenue tech platform the right way—without losing your shirt?
Inside The Legends Lab, I’ll show you exactly how to structure, protect, and scale your SaaS offers with strategy, systems, and soul.

👉 Start now at www.sarahcordiner.com/legends

Sarah x