$200k in sales from a $6k advertisement
wifidabba.com
wifidabba.com
Copywriters working for HN-adjacent companies: please, copy the structure of this article!
I'm not a marketer and I don't typically take an interest in this subject, but the blog post breaks down the problem in a way engineers can appreciate.
They describe how they characterized their unique market, the funnel to attract new buyers for their cell installations, and how Gruber's audience fits the necessary parameters. There's a lot more, and I'm not doing it justice, but it was a fantastic read.
Article's structure:
- The results, shorter than a paper abstract
- A small paragraph introducing the company and the goal the results apply into (long term readers will get the context of the results here).
- Some larger text explaining the product, in a section long term readers can jump.
- The main contents
- A well disguised large selling hook
- A link to more explanation on the product
1. SnapShooter ($1k+/mo), a tool to create daily backups of DigitalOcean droplets:
" I tried sponsoring blog articles with a little bit of success." [2]
2. BugFender ($35k/mo), a log storage service for app devs:
"Here's what didn't work: sponsoring developer newsletters and podcasts" [3]
The reason for this (IMO) is that most products that advertise themselves (especially on dev blogs) are not unique/compelling enough. Why should you buy a sponsored app logger when you know 10 other look-alikes with 5 other friends using them? The fact that these guys managed to invest $6k and get $200k in return from sponsoring a blog just shows how unique/compelling/valuable their value prop. is. Good luck!
[1] https://firstpayingusers.com
[2] https://www.indiehackers.com/interview/how-starting-small-he...
[3] https://www.indiehackers.com/interview/turning-an-internal-c...
The main differential factor here is the price of what they're selling. In this case it's a high-value, pretty unique item sold to a highly targeted audience, that 1-2 items sold already make up for the investment. Good for them!
Also beware of confirmation bias: we know this particular campaign worked and was extremely successful, but we don't know the other things this company tried and didn't work, nor if this team had experience in a very similar market that saved them some experimentation.
Don't get me wrong, I think this is a very cool project. I just find the marketing confusing.
It is either a scam or an incredible investment opportunity. We will know in 3 months. If it is a scam, they will keep selling them individually. If it is an incredible investment opportunity, they will stop selling them and be funded by someone who is reading the article today. In the US, their investment proposal likely violates the law by guaranteeing a return.
I hope its an incredible investment opportunity and I hope they deliver what they say they will.
But why it's on HN then? The answer - you are the product and HN is a marketplace. This makes HN kind of spoiled place to be at, as it amplifies the illusion of "good things" you "must have" or "participate in".
I really miss the golden era of BYTE magazine in the 80s. That was a classy act. But what we have now is a noisy reactor, where nearly everything is worthless but fuels illusion and false hopes. We give in without even considering an evident fact that we are being manipulated for cheap.
Yes, I may sound too dark, but then let's not call HN "a community". This a commercial enterprise with its own interests under the hood. Not the neutral place for intellectual discussions as it tries to appear.
I kid you not, the last time I accidentally visited Product Hunt there was literally an app on the front page intended for the sole purpose of "mapping where you've cried". This type of Indie Hackers (as much as it saddens me to say) hype noise is nothing but counter-productive to "helping" side project hackers or aspiring founders.
Specifically, HN is owned and funded by YCombinator.
See also: https://news.ycombinator.com/newsfaq.html, in section "What's the relationship between YC and HN?"
Contrast this to Reddit. It is a big company with rather similar product, which is its only product and which makes them a lot of money I believe. How can YCombinator offer a similar product for free?
1) Dealflow. People start with HN then learn about PG/YC. HN is also free and ad-less and so there is a lot of goodwill.
2) Promotion. It's a great value-add for YC companies to be able to use HN to find talent, promote their products etc.
Fostering a community of tech-savy people interested in the latest technologies increases their brand size. HN is also a place where YC-related companies can advertise to and hire like-minded people. This in turn would increase the chances for those companies to succeed.
Regarding costs: I believe this site is hosted on one somewhat beefy machine, maybe two for redundancy. Compared to reddit, this site is (I believe) comparable to one active subreddit (Reddit has 100s of those), without image or video support. It has a rather simple domain model, only marginal styling, and has generally only a low overhead per page loaded, making it a rather lightweight application for the amount of traffic it receives.
Also, if you're interested, (parts of) the sources of HN are available here[0], it's a rather lightweight server in a dialect of Lisp.
[0] https://github.com/arclanguage/anarki/tree/master/apps/news
As to your cynical meta-analysis, these people are doing something really difficult. I'm very happy to celebrate with them in any of their little victories, good on them! I hope to see more from them in the future
From an investor's perspective there is limited upside with full default risk, yet the risk is hardly addressed. If the risk really was low, then why not self-fund the first X PoPs and convince with data on customers, ROI etc.?
Is it that investors need to provide the roof top too, so it’s a way to reach out to property owners?
I do understand your capital requirements in X years down the line.
I also respect your goal of decentralisation and community ownership. (As an aside, what does ownership mean? If illegal things were to happen on my PoP are you saying I am liable?)
Yet, my question stands: Why do you want USD 2M in cash from retail investors today? Why not self-fund the first X PoPs, show it works, then scale?
It sounds like this $2M raise is an experiment more than the end goal.
I think I understand, and it's similar to how railways in the US were built. Savvy investors won't cover the tsunami of small region losses you'll need to scale quickly. They'll only want to fund dense, urban markets with the lowest risk.
But isn't the centralization happening here too? Since the investment capital has term-limited returns, eventually the equity and equipment belong to wifi-dabba.
Why should one expect a different outcome?
Traditionally the franchise model allows for small entrepreneurs to tackle local problems while benefiting from economies of scale. In this case, small entrepreneurs can tackle connecting at the neighborhood level while wifi dabba can negotiate bulk equipment rates and tackle things like support. It's hard to scale out something like laying wire in a neighborhood because ultimately you have to hire people that don't really care about the business. They're less effecient and effective than a franchise owner who has a profit motive.
> Fully managed service Be an absentee landlord
...
> Senior engineers from Google, Apple and a host of other technology companies purchased the PoPs.
Surely if you buy a 20 K pop that doesn’t include upstream bandwidth for life (ie for your pops customers to use).
I spent about 25 minutes reading every page of the website but didn’t see this part mentioned, apologies if I in fact missed it.
Thanks, interesting project!
DF sponsorship: https://daringfireball.net/feeds/sponsors/
A bit different than $200k in hard sales. Actually for $10k you may as well buy your own reservations just for the marketing value of "$200k in sales"
I have few technical questions if you do not mind:
How strong are those lasers how many watts?
What is wave length and what is optical spread over distance?
Lastly, how does system handle flock of birds or any other optical barrier?
For instance this is 500mW laser: https://www.youtube.com/watch?v=HuceDT2R4f4
Some questions regarding the underlying technology:
You mention a "self-healing" grid. If one of these laser lines gets disrupted, say by a bird, or someone knocks over the laser receiver - how quickly does the PoP reroute traffic over a different path in the grid? Does it wait for a timeout, or is there some meta-data from the laser link to know when the interface is down?
One of the reasons you use the laser PoPs is that underground fibre is expensive. However - given that you have to pull overground fibre to every customer within the PoP - the total "length" of fibre in play will be roughly equal to the length of fibre required in a traditional underground installation. What's the advantage then? Why can't you pull all the fibre overground and bypass having laser PoPs completely?
Finally - given the massive investment in 4G and price wars in India, I would assume you are competing with mobile broadband routers. How is performance of such solutions in dense cities like Bengaluru? Is it unreliable or congested enough for people to want to pay for a dedicated fibre/laser internet connection?
I’m curious about the “users that are OK with ads” part of the equation. (From the article - these are DF readers who don’t have ad blockers and are willing to click on ads). I can’t wrap my head around how this is a signal. Are seasoned tech investors (the target audience for the product) more likely to browse the internet without ad blockers and more likely to click on an advertisement? Is it the other way around - people browsing the internet without ad blockers signal some amount of naivety that somehow makes them better customers?
I don’t understand this. Can someone please explain?
It seems there has been an overhaul of the company since I last checked them out in January.
Key changes I could immediately see from their current website-
• Inexpensive WiFi Mesh service targeted at mobile users, small shops (1GB/1 INR) -> Broadband service aimed at homes and offices (Although the backend still seems to be their FSOC).
• WiFi Dabba India Pvt. Ltd. -> Delaware C Corp.
• Raising funds by selling PoP.
I (we?) would love to hear what led to these overhaul? @mildlyclassic.
I've been an advocate for Non-Cellular mobile Internet[1] in India and was eager to see WiFi Dabba venturing into this space, now that broadband seems to be their focus I'm bit sad although I understand if fighting the oligopoly's cheap cellular Internet(coupled with free voice calls) is an unwinnable battle for small startup building the ecosystem(innovative computer networking) from scratch.
Then again I'm excited to see the sale of PoPs, as I've been advocating for monetary incentives in sharing Internet[2] as well. Although WiFi Dabba's PoP isn't directly related to that, distributing the ownership of network is very exciting. I hope it ends profitable to both the company and its investors.
Recent reports said Internet penetration in India is limited to ~40% in Cities and ~15% in rural areas; So obviously there's a huge need gap in the country and attempts improve that through existing Internet players has repeatedly yielded disappointing results.
My previous startup was involved in VSAT services for in-flight entertainment system through a major U.S. Telecom, I've worked with several talented Network Engineers in the country, I hope some of them get motivated by WiFi Dabba to start their own network startups and bridge the need gap.
[1]https://needgap.com/problems/51-non-cellular-network-mobile-...
[2]https://needgap.com/problems/52-sharing-wifi-network-with-st...
I just booked a call.
I was curious about a couple of things:
- You list some sophisticated machinery -- did you run into permit/regulatory challenges around running all this?
- Did you get challenged by incumbents, even if they weren't providing service in your specific locale?
It reminds me of the food delivery company that targeted porn sites to better utilize ad spend. Or another article a couple days/weeks ago discussing why an advertiser might want to include/exclude certain groups from ad targets.
In the end, it's ALL about value. I think general brands might be better served with more generic reach than we typically see though. I'd like to see ad networks that only try to bid 2-3 levels and fallback to generic quickly (even if less profitable) rather than go a dozen layers of IFrames in the browser. I think browser vendors could help with this by disabling scripts after 2 layers of IFrames and I've said this for a while.
edit: of course the fact the biggest advertising company is also the biggest browser vendor prevent this from being realistic.
I'm imagining in the US they will be met with a bunch of hurdles and legal stuff due to "lasers bad"
The reason it will be hard in the US overall is that Comcast lobbied their monopoly into local law across the entire country, and the fight to revert it is fought one city at a time it seems. I don’t think Comcast will reign like this forever, but things are going to be shit for many more years.
This is rather worrying.
I used to get good results from FB ads (AdWords never worked for me after 2012) but now FB ads are also a loss.
So wondering what other people are using for advertising?
Anyways, I've heard of people having success with LinkedIn for B2B SaaSes - but my impressions is that this is mostly lead generation for sales rather than automated marketing.
More broadly, I've seen a lot of people have good experiences with email newsletter advertising/sponsorship generally if they use the right publications and audiences (for instance I saw https://twitter.com/DenehyXXL/status/1326172165616570368 earlier today).
Podcast advertising is worth looking at too, but it mostly succeeds in a somewhat different way (podcasts seem to work better as a branding and door opening play than for trackable conversions despite what coupon codes imply). Reddit may also be worth investigating but you really need to play it right there, it's not a hugely forgiving place for sponsored items.
I live in India and in Feb I was in Sikkim, a mountainous state near the border. I had 4G/LTE. You can get 50GB of mobile data for like 3 bucks.
This problem has been solved.
I worry about not having connectivity when I travel in the US/Europe. It's far less developed there.
On the contrary, in cities the network is less reliable with 4G as you said.
I had 4G/LTE no problem.
I worry more about this when I'm traveling in Europe and America.
I wonder how lasers work when obstructed.
What are their overhead costs on the hardware unit?
A lot of the language on their website seems very reminiscent of the one used by many cryptocurrency projects.