I'm not an enterpreneur, I'm a dirty hack
maxklein.posterous.com
maxklein.posterous.com
Is it really any surprise that you can make lots of money if you use cheap labour, if you're okay with releasing - and perhaps even selling, though I hope not - garbage software ("Release a really crappy version", "I don't spend money on design"), and if you're content without innovating or trying to break new ground?
The world is full of people who do that, and yes, many of them get by just fine, and some make lots of money. But there's far more to life, and work, than that.
For me, that's what's so great about HN: it is full of inspirations for a web developer like myself. Inspirational companies and inspirational people who don't rest until they get it right. Who push the envelope. Who care deeply about the experience of using their software.
This post contains nothing inspirational like that. I've worked for people like this before. Never again.
This story is a reflection of those of us without timing or luck, who grind it out day in day out. It is a nice counter balance to the inspirational, but largely unobtainable heights discussed in the stories normally posted here.
Maybe in the beginning you can take the high road, and find "more to life" than this guy does. But for those of us who left the high road long ago, and are raising families, and paying mortgages, and grinding out a living online, this guys approach is sage advice.
The truth gets up voted.
And the following part "No response, abandon. Complaints, improve" is just the concept of the minimal prototype; also used in "Discovery-driven planning". http://en.wikipedia.org/wiki/Discovery_driven_planning
You seem to be speaking from a professional mind-set, which is perfectionistic. An entrepreneurial mind-set is a little different: why perfect something if no one wants it? Or, as pg says "build something people want". Find out what they want first, then perfect it.
He nails his experience about getting designers from Romania. They have really great taste! And Russians for math-related complicated programming. And India for cheap average quality programming work(btw, Indian designers are in general pathetic). These have been my experiences too over 8 years of being on both sides of the outsourcing market(as a freelancer and as someone who has hired folks offshore). It is an art working with people offshore and if you can manage it, it can give you a real edge especially in starting phases.
Curious, are you deep into affiliate marketing?
Of course, at some point if a project takes off you would want someone longterm. That's a whole different game(hiring a full-time developer offshore).
I'm kind of surprised we don't have an HN ebook marketplace going yet, to be honest.
Here are some helpful links to get you started. I'm looking forward to reading your ebook.
http://sethgodin.typepad.com/seths_blog/2007/03/you_should_w...
http://www.squidoo.com/howtomakeanEbook
http://www.problogger.net/archives/2009/09/16/thirteen-steps...
I have done freelance work through oDesk (at one point full-time for a couple months). I see postings looking for programmers where they are willing to pay max $4/hr. I try to move on and not get frustrated but it's difficult.
I would be really interested in hearing just what kind of programmers you hire. From the little you mention, it sounds like you need to treat them like kids/code-monkeys - spelling everything out, not wanting their creativity, etc.
I have thought sometimes to just spend a couple hundred bucks and hire a couple cheap programmers to work on a made-up project just to see what it's like. It would make for an interesting blog post at least.
Few days ago I made a full-time offer to a php programmer in India after extensive interviewing. Finally, I sent the contract. He went missing since getting the contract. Not a huge surprise - he probably used it to get a better offer at another company. I just went down the list to the next candidates.
I was a top coder there in high school(early 2000). These days I use it exclusively to hire coders and designers for very specific projects.
That's the kind of stuff we have to spend hours and hours banning. sigh
This is not the kind of stuff you spend one second banning since none of it is posted to your sites. It is strictly created by and for and posted on the sites owned by the clients.
When you step out of the box and think, you can find plenty of legitimate ways to leverage low cost content providers, for profit.
You can stop wincing now...
Are we talking about them writing quality copy for your website that hit on specific keywords? That would be SEO territory but I know people using Mechanical Turk and other services to get decent-quality copy written for cheap.
Think about it. Someone who clicks through to your page from Twitter/Facebook/Linked In is a known quantity. What do you know about someone that clicks on a paid link in google. Nothing. What does it cost for that click? Only your monthly publishing cost per account divided by total clicks per month.
And when someone walks through the door from SMO, you got a @name, you can look up their bio, you got their thoughts in their tweets, and you know where they are from.
And it cost a fraction of the price you pay Google for an unqualified, anonymous click. And with Twitter you have zero click fraud.
I have cracked the code on CPA using Twitter and it begins with killer content. And I use staffing in the Philippines which cost 1/15th American dollars for same person, no taxation, no flooring cost, no legal issues.
If I were Google, I would definitely figure out how to buy Twitter before it eats their PPC lunch. There are a whole lot of us X-PPC guys who no longer pay ridiculous fees to the search engines.
As for the Turk, the cost is a little more than the PI and with your own staffing, you get the added bonus of continuity. You also get the benefits of knowing your staff, weekly quality review meetings, standardization of process, and a consistent quality that I found missing with Mechanical Turk.
I would still recommend MT though for anyone running a few sites who needs less than full time commitment for projects.
Do you have bunch of niche twitter accounts with a lot of followers that you built up which directs people to your content sites that bring in the dough? I'm trying to understand the general twitter flow.
I have friends that make a killing from SEO and they have blogs on Tumblr and cough Posterous that they tactically use for SEO. They also spend hours writing the content.
For our blog review sites they are the source of the reviews we create. For our product news sites they do product write ups. For our e-book sites they write the e-books. For clients who need whitepapers, they write them.
We do not post on any sites other than our own or on client SMO accounts. We never post anonymously, we never post on a site that is not registered to a paying client.
We do not spam. Spam is for folks who can't originate good content. Over half our content gets re-tweeted, or link backs, so we are doing this the right way.
There is a lot more but the basic principle is that if we are being paid by a client to post on their properties, its legitimate. If they don't own the property, we don't work with them.
The HTML and CSS they wrote were generated using Dreamweaver, and their PHP was a mess with tons of copying and pasting. It was impossible to get the company's higher level management team to understand why continuing to use these guys was bad idea, because they saw the front end 'just working', yet it was so hard for us to modify and understand any of their code.
If you intended to have a site that one day has skilled programmers working on it and is actually maintainable, be careful about things 'just working' with outsourced code.
I also am not a huge fan of working with offshore companies. There is enough friction already in talking remotely. I don't like another layer of management in between developers. Though for bigger projects, you need a project manager of some sort.
I call this "ransom note programming." http://images.google.com/images?q=ransom+note Nasty stuff, not even enough pride in their work to run an autoindent program on it.
> relatively big web company in Romania
Little quiz ... what should set your alarm on? The "big" size of that "web company" or its location?
For me it's a no-brainer ... simply because for a consulting company to scale to that "big" factor ... you need to hire a lot of third-rate, cheap code-monkeys ... that's business 101 ;)
Second of all ... your company should've asked for a portfolio of the actual developers that ended up working for you, simply because the quality of the employees varies greatly even in well-respected organizations.
Or was there some kind of manager acting as a proxy between you and those doing the actual work?
And out of curiosity, in your country there aren't any "big software companies" that are doing consulting work of dubious quality?
This seems to me that it was more a problem with your management. Blaming it on "outsourcing" is not really accurate.
BTW ... in my small company that does consulting work, we aren't taking outsourced projects very often. We don't do it simply because those kind of clients that would outsource to us are of very poor quality, leading to poor communications, unmet deadlines, unmet payments and generally disastrous results.
Towards the end of me being there, they added a more senior developer/manager to the Romanian team -- his code was much better (i.e. not dreamweaver generated HTML/CSS) and was easier to communicate with, but still the code quality from the others on the team was very unmaintainable.
I apologize if it seemed as if I was generalizing the entire country of Romania's programming abilities -- definitely not what I intended. If all the developers were as good as the senior developer added on later, I'm sure it would have went much better.
My main point remains the same though, and I think is one that we can both agree on - that hiring inexpensive labor with only focusing on the front end user experience, without any respect or idea of how well the back end is being constructed is a bad idea. I'm sure outsourcing can work, but only with careful attention to the behind the scenes backend code quality, to ensure the project is not being held together by duct tape.
Not true at all. It never gets old watching the average daily profit rise.
I find I have to make myself care about those numbers. I tend to fall into a comfort zone, where my brain has decided, "Yes, we have enough money coming in to keep us in food and houses, so we're OK. Think about more important things, now." I've made myself stop dealing directly with our technology lately, and begun to focus more on the money side of things. I've only recently started doing regular bookkeeping and monthly revenue reports and such. And, it is satisfying to watch the numbers increase, but it's not as satisfying as building something new, to me.
This is great advice!
>I stay 2-3 years behind the trend. After the early adopters have left, there is this gap that can be filled by people who are willing to learn from the failures of the early adopters
That sounds great in theory, but can anyone expand on that? What are some specific examples?
pets.com, etoys, et al. -> zappos,
altavista, goto, yhoo, et al. -> goog,
broadcast.com, real media, "quicktime TV" -> youtube
These examples were all established a few years after the original players came in fully loaded with cash, hype, etc yet failed to solve or even identify underlying problems.
His description of entrepreneurs is, I think, not very good.
Im sure there are lots of people like he describes who would call themselves entrepreneurs.
But every good one that I've met or "seen" doesn't even half fit such a stereotype. In fact I suspect most really good entrepreneurs are hacks just the same :)
Dont mix pretenders with the real thing!
I understand your greater point but I think its misdirected in this case and not entirely fair to Max. What Max is doing in his post... how is that any different from making generalized statements about companies and the quality of products they churn out?
Though I agree that because we are dealing with actual people perhaps more tact should be used. That said, we do live in a global economy. Chances are that the clothes you're wearing now were made by some "slave" in a poor developing country.
That's not slavery. As far as classifying quality of work effort by country, try it yourself and in a short time you will learn that different cultures deliver different types of workers, and thinking, and creativity. I know that sounds strange, but it is true.
And here is the funny part of the entire deal. If you suddenly found yourself transported to Russia, Romania, India, the Philippines, or China, good luck getting work as Americans are mostly viewed as fat, lazy, complaining do nothings, who barely understand the concept of a hard days work for a fair wage.
Ask every foreign employee that works for me and not one of them would agree with your comment. They are grateful to have the work, to work at home, to raise their families well, and to do so by using their brains.
I don't feel the least bit bad for outsourcing either. Americans are the hardest employees to manage, and rarely deserve their high cost. There is a huge downside to working with the ME generation. Most think that a job is an entitlement. Ugh...
I lived in Russia in the 90s, and I saw exactly the opposite effect from the one you describe first-hand. There were people coming from English-speaking countries who could get management-level jobs mostly by virtue of coming from an English-speaking country. I knew some personally, and I don't hold it against them at all. They were seen as having an understanding of how the capitalist world works, and this was valued (whether or not this was true).
After a decade, the people were not seeing the quick returns from the switch to capitalism that they were hoping for. As a result, the general attitude towards the West in Russia has changed. You can read all about it in the news.
I also have friends back in Russia, who work for an outsourcing company. The majority of programming jobs there that pay a livable salary are outsource. There are few Russian companies that work on original products of their own (Parallels comes to mind).
I hold no illusions. As long as the US market remains the largest, that's where the money will be, and outsourcing will remain a viable strategy. Does the idealist in me wish that the people working outsourced positions could access this market directly, without effectively paying a middleman? Or better yet, have a thriving local market? Yes, but I realize this just won't happen.
I'm REALLY suprised that there are not cheaper alternatives to DabbleDB - if there had been anything a bit cheaper or a bit more ajaxified, I'd have gone for it.
Also, the main reason I don't pay for dropbox is that you need to pay for EACH user! So at just 5 users I'm paying $50 a month. That's crazy wasted money!
I'm doing this with a friend right now, I have the paid account and am using 30+GB, he has a free account, and we share just the folders we need to.
I have a few friends making a killing doing this. It isn't as easy as it sounds. And it isn't as scammy as it sounds. When done right, it can make good money.
i would be willing to bet that the majority of people here that consider themselves "entrepreneurs" or are working in startups would identify with almost every single one of those points.
are we all hacks? or is there one point on there that makes you a NON-entrepreneur compared to everyone else who thinks they are?
There is the other way - just making money on the internet, and there is no grand plan behind it. It's more of a thing that just develops itself without some type of enterpreneurial drive or theory behind it.
Edit: Nevermind. It's late and I skimmed your post too quickly.
basically, he gets things done and makes money, even though he is using old tech. he isn't buzz worthly, but he is successful in his own way.
for what it is worth, i really like working with people with this attitude. (except the next step is often looking for bigger markets)
He is obviously very entrepreneurial and all the actions he describes are central to bootstrapping.
I'm sorry, what?
But, the point of starting a company is usually to do better than contracting, eventually. You trade current comfort for a steadily rising income that, hopefully, some day far surpasses what you could make doing contract work, or working for a major corporation, and most importantly does not scale based on the number of hours you can work, but instead scales on how effectively you build your organization.
With taxes, health insurance, retirement savings, having a place big enough to work out of, etc. $12k/month is comfortable, but not particularly wealthy. It's a modest goal by most startup founders ("entrepreneurs") standards, I would think. I think most tech startup founders are at least looking for "fuck you" money, which is somewhere in the millions for most people. It'd take ~10 years at $12k/month to reach multiple millions.
So, yes, $12k/month isn't very much for the audience he's speaking to, though it's certainly respectable.
So, yeah, I reckon $12k/month for part-time effort is awesome.
According to http://www.globalrichlist.com/ - an income of $144k per year on an international basis would put you in the top 0.37% earners in the world.. more people than that alone live in North Korea.