best of luck, I feel that "We made $1,000 in recurring revenue" is so much more constructive than 'Show HN'.
best of luck, I feel that "We made $1,000 in recurring revenue" is so much more constructive than 'Show HN'.
"As Paul Buchheit, creator of Gmail and partner at Y Combinator, says, the correct order of operations is to “sell before you build.” When you launch, you want a whole list of people that you can tell to buy it. But more than that, you want to ensure that you’re investing all that time building something that people want to buy."
As far as I can tell, they built a product for 40,000 people over a certain period of time without generating a cent in profit or knowing in advance that any of those people would ever consider paying from the product. While some users did claim they wanted a team version they would pay for, this was only after the base product was built without knowing people would pay for it.
This bugs me a bit because I'm working on a project where I'd love to be able to sell before I build, as it's obviously a very sound principle, but in practice I just can't see how to go about it and I was hoping to learn something new from this post.
There are a few options for seeing if people will buy before you build. The often quoted one here (and it's also used in the Lean Startup as an example) is have a sales site, have a 'buy now button', but go through to a 'we're currently in beta, email me when it's ready'.
Then buy google ads or whatever your sales pipeline is and see if people click 'buy now'. If no-one does, you've got a problem.
If you've got a big ticket item, you can do something similar but be upfront that it's not built. Talk to clients, see if they want what you're thinking of making and suggest a price to see if they say yes. Again, if you can't find anyone to say yes, you've got a problem.
And for some projects, Kickstarter is another obvious method.
From there, we cold called / emailed like maniacs - 'here is what we are working on, here is the problem it will solve, here is why you need it, can we have 20-minutes of time to walk you through this?' We leveraged every possible network connection that we had.
When we got people on the phone, we actually showed them mocks of what their site would look like with our platform (lots of Photoshop). Explained that about how we wanted to get them in a beta program, and how much would they pay?
It was a ton of hustle, but we had 10-customers when we launched that were generating a little bit of revenue and willing to give us quotes in the press or get on stage at events.
It is more of a larger, enterprise sale, so it won't work for all companies, but we were essentially selling something that we were building in parallel and wouldn't accept free for an answer.
That said, Show HNs are one of the most exciting parts of why HN rocks, even if they don't yet make money.