Ask HN: What sort of startups make money the fastest? | Hacker News Reader

Ask HN: What sort of startups make money the fastest?

7 pointsseannaM8 comments

I'm a software developer that wants to try out running a project on the side to make some extra income and test out the whole entrepreneurship thing. I'm really interested in trying out something that generates money (if a small amount) pretty quickly up front, because I think it would help me be focused and motivated.

I've made a lot of small programs/games, but nothing that I felt I could charge people for much. I once made about $100 through ads in a blog after 6 months, but I don't think I'd want to repeat that route.

I have a couple of website business ideas, but they seem like they'd need a year to generate much income.

My best guess for things that seem to pay off the in the short term (The first month-ish) are: Affiliate marketing, solving buisness needs for people you know, and niche mobile apps (The kind that have few customers and charge $15+). If someone is more informed on this subject, I'd love to hear your suggestions.

The sort of startup that makes money the fastest is not a startup, it's a clone. Unless you have a brilliant idea and solve a hard technical problem, your best bet is to copy a business that you know is successful and has few competitors. Startups are for dreamers who aim at a billion dollars, clones are for realists who aim at a million. Every day this becomes more true because the number of startup ideas with big potential decreases over time. Distribution is getting harder because noise is getting louder, and the low-lying fruit is already being harvested. Not that you were really aiming for a startup anyway, affiliate marketing and solving business needs for people you know are in clone not startup space. Every warm blooded mammal at a keyboard wants to make passive income, be the one who does market research.

You can clone an idea just add your own twist to it. Don't just copy someone else's idea blindly. I believe in niches. Find a niche that you can stick with and start working at it.

"I have this great idea its like Facebook for...."

Usually startups that make money the fastest are ones with a revenue model, an understanding of who their customers are and a way to get in front of those customers.

This is a very broad statement, but I think if you can apply this checklist to your ideas you will be on your way.

Example:

Product: Website uptime monitoring with SMS alerts.

Revenue model: Free up to 1 site, $5/mo for 5 sites, $10 for 15 sites.

Target customers: Freelancers, Small web shops, owner operators.

Where they visit: Web Design Blogs, Freelance Blogs, Web Dev Podcasts, Tutorial Sites, Web Design Galleries

How to get in front of them: Banner and sidebar ad's, Reviews from related blogs, Press Release, Free Trials, Guest Blogging, Social media, cold calling, email blasts, podcast sponsorshop.

This is just a random idea I pulled out the air, but it could be executed immediately because it hits all three criteria on the checklist.

I haven't done it myself (only been doing research) but WordPress plugins might fit the bill. Mostly due to the fact that the WordPress plugin directory does some of the marketing for you. Also many WordPress owners are willing to pay money to improve their websites.

The problem with the wordpress plugin directory is similar to the Android/Apple appstores - getting discovered is hard.

There is very definitely a lot of fake reviews, and gaming, involved in most of the popular plugins. The fact that you mostly have to have a SVN repository hosted on the wordpress servers also means your source cannot be kept private - admirable, but quickly leads to cloning of novel and unique plugins.

The easiest way to make fast money is consulting/contracting. You can usually get a contract, start working for someone, potentially be paid up front, invoice frequently, and be good, with minimal risk. It also scales the least, and rarely produces good passive income streams.

you could look into elance or one of those sites. affiliate marketing is tricky because you need to get a site placed in search for free organic advertising. you could design a site and sell it on flippa for about $100-$150 bucks.

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