The book is really good; however, I would not have bought it then if I had had to pay $180. Is it worth it? Yes, if you're 100% absolutely certain that you want to create a business around a book.
315 karma · joined August 3, 2010
I'm a co-founder and writer at https://www.simpfinity.com/ - one-in-all web app where digital agencies create proposals & invoices, manage tasks & projects and support their clients in one place.
In June 2014 I wrote a book called "Recurring Revenue For Web Agencies": https://www.simpfinity.com/hnp/rrwebook/ It teaches web designers and web developers how to turn their support, maintenance and business-growth-oriented client services into profitable and sustainable monthly revenue streams. I've personally invested countless hours deciding, planning, building, selling, and organizing my own agency's recurring revenue, but it was worth it. Today my agency gets 89% of its revenues from recurring sources. The book saves people time and helps them avoid the mistakes I made.
I co-founded a web development company http://www.logit.net/ in 2002. This helped me develop my expertise in business, sales, marketing, managing web development projects, and dealing with clients.
My personal website: http://www.luckyisgood.com/
The best way to get in touch with me is where I hang out daily:
-Google+ http://www.luckyisgood.com/plus/ -Twitter http://www.twitter.com/luckyisgood
http://www.hackernewsers.com/users/luckyisgood.html
The book is really good; however, I would not have bought it then if I had had to pay $180. Is it worth it? Yes, if you're 100% absolutely certain that you want to create a business around a book.
All I ever wanted to do on my desktop is this:
1) Select some text on the screen 2) Have the text AND the URL to the source copied to one place, without me having to manually copy and paste the URL.
I am a huge fan of collecting random clippings from the web. Your app saves me just enough clicks to make it worth while.
Thank you for implementing Markdown export.
I suggest you add one feature: the ability to not have to confirm the save - frictionless saving. Just save everything to one default place, don't have the app ask me anything.
The second half of being satisfied with your (freelancing or agency) career is having abundant recurring revenue. I recently analyzed revenues, market size and the number of employees per company for ten or so related industries: graphic design, web design, domain industry, hosting industry, digital advertising agencies, advertising agencies, website creation software industry... The numbers told me that graphic design and web design companies cannot even afford to hire a second employee - on average. All the other industries, who are known for relying heavily on recurring revenue, had much healthier business indicators. For example, the market in the U.S. for web design / web development is seven times bigger than i.e. the domain name business, but domain name companies are in much better shape, financially.
I've described my experience with implementing recurring revenue services in my webdev agency in the book I wrote: https://www.simpfinity.com/books/recurring-revenue-web-agenc... - I now firmly believe that charging more + having recurring revenue is the answer to most freelancers' troubles. As soon you upgrade your attitude to charge more for your work, you're ready to start thinking about earning money from existing clients, every month. We've managed to pay for up to 90% of our monthly expenses solely with recurring revenue.
And yes, networking helps. I have my own small "mastermind" group and the best thing I get out of it is inspiration, bursting my own bubble I have locked myself into, and decreasing fear of the future. I just wrote about it yesterday on my personal blog, so that part of your comment rang very near and very true to me.
In the end, you already know what to do :) I see from your comment that your direction is clear. Good luck with everything!
Let's say that your one current client is like having a day job. It's wise to keep them if they're your only source of income, until you find more exciting and equally / more profitable sources of income.
A couple of ideas:
- try to get a couple of new clients, but only a few, so that you can manage them. Put them on a retainer and service them yourself for starters. Repeat until you have enough money from that on retainer. Aim for fewer clients at higher retainers.
- hire a person (as an outsourcer, or paid by the hour, or similar) to help you service the existing client first and the new clients later. Keep training that person so that there's less and less manual work for you, and keep overseeing everything she/he does (be the quality control person). This brings you closer to a real business (other people do the work, you sell and negotiate deals)
- let's say that you now have one colleague that does the work, and a couple of clients who pay just enough consulting to make you feel relatively safe. Let's say that you've organized this in a way that leaves you 50-75% free time to work on The Thing You Really Want To Do. Now, do you want to build a professional service business, or a product business?
In any case, if your work is the only source of income and you can't raise any capital (not even from friends, fools, and family), building recurring revenue streams first is how you get out of any rut, because getting out of the rut requires freeing up your valuable time first.
Does this make sense? Would any of this work in your case?
In my experience, small agencies (up to 20 people) usually cannot afford or justify giving substantial resources to web hosting. My agency is now fairly small (five people), and web hosting is so complex and fast-growing, that we decided not to deal with it. We found a good partner a few years ago and we refer some of our clients to them. Some of our clients do pay hosting to us, but it's more of an application hosting type of service (they rent apps from us and pay annually). We have our own dedicated server on which we only allow websites we've developed ourselves. This is a legacy thing: we've been doing that before and we're still billing some of our past clients for app hosting, but stopped selling any new web hosting.
If I was starting an agency from scratch today, I would steer away from web hosting and let the specialized partner handle that for my clients. There are simply too many things that could go wrong if a small agency does not have the necessary expertise. One wrong step and you can lose a six-figure client over a $10 domain. And since there are too many things to keep up with in your core business (web development), your time is better spent learning about your core business, not about the web hosting business.
So you actually asked about selling services and apps hosted in the cloud? That is a good business, if you make it your core business. For example, we resold Google Apps to clients. Since clients were local and preferred to call our phones for support, we sold them our support services too. So, the client bought Google Apps for Business licenses through us and bought added-value services like support, installation, migration, consulting etc.
That's a good business. Specialization and focus helps here, so that you don't spread yourself too thin.
In my experience, it made no sense to argue with the client about maintenance when the website was "sick". All the client wanted was for us to fix it. I knew that, so I made sure I sold them a maintenance package in advance, when they "didn't need" it. A website is just like a bridge: if you build it, you're responsible for it, but it's not for free. Everything I put in the world, I am responsible for, but the client needs to pay for it.
Here's how we sold support: - 30 days guarantee period (after launch) - we were selling only annual contracts. A lot happens every month. Frameworks and libraries need updating, 404 links happen, browsers update, CMS systems get new security updates... There's a ton of things to keep an eye on as a developer, and you could create an annual plan which your client pays for monthly (give her a discount when she signs a contract).
Here's what worked for us:
- after selling a website, we sold the mandatory support and maintenance contract. We considered this service the foundation, or level one of our recurring revenue stream. This is fairly easy to sell and renew. The recurring revenue we got from this was enough to keep us afloat.
- after selling support and maintenance, we upsold the client to "levele two": services which grow our client's online business. The types of services we offered in this plan: everything that needs to be done to reach client's business goals, and that we could deliver well. This was harder to sell (because the type of client needs to be just right for this kind of service), but the amount of money coming in every month is substantial. This is what makes the agency grow in long term.
Here's what didn't work for us:
- web hosting. We've been offering this for more than a decade and in the end, all things considered, it is just not worth it. A combination of support + maintenance + growth-oriented services is a much better bang for the buck. We sold most of our servers and hosting accounts to a specialized hosting company and focused on what we did best.
For the exact details about building, pricing and selling support and maintenance services, check out my book: https://www.simpfinity.com/books/recurring-revenue-web-agenc... (the part about growth-oriented services is coming soon, matter of weeks)
I love talking about the subject of recurring revenue, it's a passion of mine. I'll gladly answer any questions you might have.
Edited: typo.
I've chosen Leanpub as the publishing platform for my first book. They only ask for 10% + 50c royalties and there iz zero lock-in with them.
I'm looking at the pricing table here: https://microco.sm/compare/ . The plan that is highlighted by default to me has a price in British pounds while all other s have prices in US dollars. Consider changing that.
Actual data and field experiments on basic income prove that people work more hours, that their income increases, that they visit hospitals on fewer occasions and that they spend money responsibly.
Sources: 1) http://www.dominionpaper.ca/articles/4100 -> Dauphin Canada, 1974-1978 experiment -> only mothers with newborns and teenagers worked less.
2) http://www.usbig.net/bigblog/2013/08/important-study-finds-t... -> BI receivers worked 17% more hours and their annual income after two and a half years was 50% higher (they invested mental resources into building their own businesses or looking for better paying jobs).
Also, allow me to argue that the system would work even if most people did not actually contribute anything. How many Linux users are there, vs. how many developers contributed source to the Linux project? Only a tiny, tiniest fragment of the world developer population actually got off their butts and did something for Linux, and the rest of the world sat by and "leeched" off their work. And yet, Linux thrives. My argument is that we still don't have real data about how many people in % need to be productive for the society to be sustainable and progressive. I believe we grossly overestimate the % of people who need to be productive.
"What would be appealing to Google would be the ability to produce city wide legislature that allowed them to use the entire city of Detroit as real life testing ground for all of their technologies without having to comply to city laws and regulations. This would allow them to test cutting edge technologies in everyday scenarios. It would also present the authority needed to re-imagine how a city operates on an information level, and not only to test their driver-less cars, but test products such as mobile commerce, free public internet and free public transportation as well."
The closest thing to this is Flipboard. No web app yet, but I use their Android app to read my RSS, Linkedin, Google+, Facebook, Twitter (one account only at the moment). It lets you connect other networks too.
Your blog post will also do me a lot of good, since I'm writing a book aimed at tech geeks as well. Thank you for writing it.
I agree completely. What's more, AuthorRank could be Google's best defense and the best cure for faults in their existing search algos.
Google works great - mostly. AuthorRank is an improvement to their algos that will be much harder to scam, break and abuse.
AuthorRank is an elegant, desireable, long-awaited bug fix. I can't wait to see it happen.
Also, watch out for this phenomenon: after not eating meat for some time (a month should suffice), other food (especially vegetables) start to taste differently - start to taste better. It's quite possible you might never go back to eating meat again.
Just look at the winners of this year's Microsoft Imagine Cup: http://www.imaginecup.com/blogs/imagine_cup_finals/default.a... - Apptenders, team from Croatia, built a physical therapy app for Kinect that helps children with cerebral palsy, quote: "KiDnect is a Kinect-based solution for on-premise and remote physical therapy for children, especially those born with Cerebral Palsy. This software has the ability to monitor a child’s exercises to ensure they are being completed correctly, and then provides statistical analysis to the therapist."
I would argue that the problems of the world are solved by solving small important problems, one at a time. And there's a world of opportunity for every startup to do just that!
In the last few months, I have noticed many HN posts linking to Google+ posts. G+ is becoming a strong blogging platform and because Google is pushing rel=author so hard, soon it won't matter WHERE you wrote it (domain), it will matter WHO wrote it (author). That's why I see A+ bloggers adopting G+ soon.