I canceled the project: A success story of talking to your potential customers
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I could go to any teaching forum right now and find you thirty people who won't pay for Bingo Card Creator, and/or think it is a sin to charge poor little teachers $30 when they only make $60,000 a year and have to buy their own paper. This isn't maximally relevant to the business, because I can constructively prove that there exists an addressable channel to sufficient teachers who will pay that make it viable (on BCC's scale, at any rate).
This is one reason why I really like MVPs, by the way. You can often get a close approximation of an actual customer acquisition strategy running on them. Then, see if they'd take at least some action which suggests willingness to pay. ("I can't find the buy button. Where is the buy button!?" has worked for me, at least once.)
By concentrating on the hard part you don't waste time doing the usually easier straight forward part you're already skilled at doing, only to find the part (marketing) you know nothing about doesn't work at all.
I don't mean to sound preachy; it's just that I've made this mistake and I don't want anyone else to if they can avoid it.
It is harder to get a couple hundred thousand teachers on your site than to write an application. It isn't terribly difficult to get a couple of hundred on the site, or a couple dozen to use the application, or a couple to use the application with you staring over their shoulder.
I particularly like organic SEO / AdWords as early channels, because if you can prove they work in microscale, they typically won't totally break down right after microscale. (Obviously, BCC isn't going to Facebook scales.) i.e. if you can reliably turn $1 into $2 you can probably turn $1,000 into > $1,000.
However, as the man with the 30k of code and no customers said in his post, its easy to find people who say they will pay for something. So when I started asking my target market if they would buy my app, I expected at least a few "yes's". I was surprised by the strength of the negative reaction. It seems that while there a small unmet need in my area, my features and proposed MVP are way off. Instead I would have to create something that doesn't quite suit me, and would be a much more difficult product to create - all to capture a market that suddenly looks a lot smaller that I thought it was.
BTW, I really like the idea of a MVP. My next step, if I had received a positive response, would have been to create mockups and then re-confirm with my target market that it's what they are after. After that I would take a week or two to create a MVP and then iterate fast from there.
As it is, I have a few other ideas apart from my photo app. Next I'm going to try looking for people who want to integrate google analytics with paypal "buy now" buttons and seeing if any of them would consider paying for an easy solution.
Also: Patio11. Wow, now I am all star struck :-) Your feedback does mean a lot to me!
If you're not that passionate about the idea, I suppose it's a good excuse to not do it. But if it would be really amazing, most people wouldn't even understand the idea until they had it in their hands.
However, I'm not so sure that peoples natural reaction is to say "I don't need that" ... personally if I'm in a forum and I see something that is of no interest to me, I'm far more likely just to move onto something more interesting, than to leave a comment. Before starting my little experiment, I was actually expecting things to be biased the other way: eg, people would say "sure, that sounds great, I would buy it" and then when push came to shove not actually buy.
This said, a few points should be made:
1. A picture is worth a thousand words. It shouldn't be assumed that individuals you poll about ideas and abstract product features understand them the way you intend them to. You might simply be describing features in a way that doesn't make sense to them, for instance. This is why wireframes and simple prototypes are so valuable.
2. You need a quality sample to make intelligent guesses about the viability of a new product. You should not immediately assume that if you query 10 people about your idea and all 10 shoot it down you are not on to something. Most businesses that are very profitable aren't convincing nine out of 10 (or even five out of 10) potential customers to buy their products. Keep this in mind.
3. Just because your initial product concept (or implementation for that matter) isn't viable doesn't mean that the problem that led you to develop the idea doesn't exist. Instead of simply asking folks whether or not they like your product concept, you should also seek to validate that you're trying to solve a real problem. If you can confirm that there's a problem, you may only be a few iterations away from a product concept that has a shot at success.
Bottom line: you don't want to give up on an idea too late, but you shouldn't give up on an idea too soon either.
And frankly, I'm not sure that I have all the knowledge or experience to be making the right decision. May people in this thread raised some very good counter points and undoubtedly have more experience and knowledge than I.
However at this stage, I think I'll go away and test out the target market for a few other ideas I have and see what kind of response I get. I think I could do with a few more data points on what kind of response to expect from the "talk to your target market" approach.
I think his concept to test before coding is right, but if he'd shown people a video of his idea (even if it was totally mocked up) he might have gotten a totally different reaction.
Programmers because we have plenty of practice are pretty good at taking ideas and envisioning them as completed software. In other words we're good at connecting the dots. But that's something the general public cannot do - they've got to see it.
However on the flip side if people can't understand what I am proposing or why they would want it, it means I am going to have a much harder time selling it to them. Suddenly my task is not about coding and marketing but more about first building the market, so I can then sell to it. Its probably a good opportunity for somebody, but I'm not sure that person is me :-)
the best approach is to build a mockup that has the signup and intro pages, and a non-functional signup page(i.e. don't store credit cards)...then run $500 worth of adwords through the site and see if anyone bites.
if $500 is too much, stop thinking that. Building out the feature set to make the site functional would take you quite a bit of time...even if you only "charge' yourself the minimum wage, you'll still end up wasting more "money".
Has anyone done this before? If so, did you find that people were generally supportive, or ticked off?
I think the ad-words are a good idea though. I'll have to keep this idea in mind for future projects. How 'obvious' do you think I should be on my landing page, that there is actually no product though? Do I just land to a big 'coming soon' sign, with a field for people to enter their e-mails? Or should I try and create a fully functional site and just say on the purchase page that the product is coming soon and allow people to leave their e-mail.
If you have a vision for something, it is impossible to translate to a customer in any meaningful way short of actually building a version of it and trying to sell it to them.
Seriously though, probably just buy their app and congratulate them on a job well done. There are way more good ideas under the sun, than there is time to develop them. If somebody else can make a good go of this one, then good luck to them.
In the past 7 months alone this happened to me 3 times with code I actually wrote and that is sitting on my machine, granted the code is only 5% of building a company.
I'm going to bookmark this and send people to it often.
I get lots of emails from people wanting to know what I think of their business idea. 99% of the time it's a business that I would never use. (I don't have an iPhone or iPad. I'm not looking to share things online with friends. Etc.)
I tell them to just ask their potential customers, not me. But your post describes it much better. Thanks for writing it.
If I have an idea I believe will work well, I build it, if it fails it fails, asking people isn't something I'd base the choice to make or not make something on just because the people I know is limited, there is always someone out there who will use your product (even if it's just you) it's a big gamble to assume those you asked is representative of that group.
If your new to this kind of thing, you'll mostly hear what you want to hear. An example would be the focus group study that was done for the aeron chair - no one wanted it.
To learn from people doing customer development in the field and for clarifying your own experience I would recommend http://groups.google.com/group/lean-startup-circle/topics?pl... .
Also follow SK Murphy's blog. He seems to have this down to a science when building B2B applications.
I wish I had a nickel for every time someone has pitched an idea on a website and the people shot it down, but he wrote it anyhow and it turned out to be a huge success.
Instead, listen to the ones who DO want it. They are the paying customers. It is their interest that will make the project a success.
I didn't see that he got any 'great idea!' replies, but he might have just left them out because they didn't improve the story. We don't know.
On the other side, though, what would have happened if JD went around and asked about Twitter or Zuck did customer development before writing FB?
However, that's probably ok as Twitter and FB are outliers. I'm not sure setting out to build the next FB or Twitter is a a prudent "strategy" either - more of a prayer.
"Would you be intersted in a seaarch engine that is much better at finding the content your actually looking for?" is a yes every time.
Facebook: When Zuck wrote Facebook, there had already been multiple letters-to-the-editor in the Harvard magazine asking to put the facebook (lowercase - the orignal paper based version) online. His FaceMash project had shown him the demand for social web applications was real.
Nilesh http://www.mockuptiger.com