The author built a SAAS tool to manage IPTV playlists and after a year, it gained 5000 organic users, generating enough revenue to pay their rent. The tool was initially built for personal use, but the author decided to refine it and introduce paid plans after seeing organic growth. The author attributes their success to building something that scratches their own itch. The tool is now a viable source of income, with the author considering pricing strategies and user growth.