After 4 years of self-funded coding marathons I feel "finished", care to talk?
379 points| exhaustedhacker | 15 years ago | reply
I'll spellcheck this, but it won't be smooth - English isn't my native tongue.
Here's my story:
4 years ago I quit my good paying programming job, teamed up with a friend and started working on our new venture. New languages, lots of fun, a few excited beta customers - nothing could be better. The idea was big, it definitely needed funding to succeed, so after about a year of coding we still managed to pull off a nice and usable MVP which we "launched", i.e. just stopped tweaking the server. We applied to YC (rejected by email), studied "how to pitch to TC" and spent a week crafting our email to them (no response), submitted our product to HN and got rave reviews - it sat at #1 for almost the entire day in 08 and then... Silence. We never, ever got any press. We spent a couple of months trying to get some coverage but never received a single reply. We studied the blogsphere, followed people's advice, but nobody cared, so customers didn't know about us. The only way to get customers was Adwords which was prohibitively expensive, so after wasting a year and $20K of my savings I moved on. Meanwhile a mediocre competitor launched in LA, raised $12M, got their mandatory TC announcement, and another one, and another... basically a TC article for every little feature they would add. That was absolutely devastating...
For about a year I was consulting. Moved to another city to make it easier to cope with failure, gradually increased my consulting earnings to maybe 80% of my "pre-startup" levels and learned how to spend weekends with my family again.
It didn't last though - on January 2010 I got an idea which wasn't quite as huge and expensive to implement, hence I wouldn't need to send cold emails to various angle groups and VCs, so I was quite excited to trying again. I also took a sizable chunk of my savings ($60K) and hired a developer to work with me on this venture. We've been coding like mad.. I've never been so productive. In just 8 months without any funding we went from zero to a beautiful system, signed up a couple of early customers by attending local meetups and events, and prepared for a Big Day.
...And now the same thing is happening: no response from our carefully crafted TC email (yeah, yeah, with "story" and something for TC readers, I've been reading PR-related blog posts religiously) and this time I can't even get on CrunchBase! Our company profile got stuck in "pending" mode while I'm seeing tens of new companies show up every day. Did YC again. My application is out there but I don't even entertain myself with the thought of being accepted: I'm a solo founder, didn't go to Stanford, in my mid 30s, etc. Haven't seen much of those in TC announcements. I can't even announce my product on HN and Reddit (my two only chances of any PR) because that would mean that TC loses exclusivity and won't cover me tomorrow or on Monday. What a great feeling!
So here is what I want to say to anyone who's considering jumping into the cold waters of launching your own company:
Have a fucking great idea
We all know what they say about execution. That's true. But that doesn't apply to you. You can't afford to be "average idea, but great execution" company, because you're alone. Or just too small. Average-idea-great-execution companies know people, have capital and the luxury of having every feature of their average idea covered on TechCrunch and other blogs. They can sponsor conferences, print t-shirts, host parties and announce contests - all those things ARE execution. That's the value a program like YCombinator provides, you just won't be able to do it - you're not in the Valley, you don't have 20 hours of week to network, blog, tweet, drink, etc. And coding won't get you there, therefore...
Have a fucking great idea
You'll also hear how cheap PR is these days, just start a blog. Nope, that's also not for you. Because blogging is a nearly full-time occupation, so don't expect to gain readership with that little precious time you have left from coding your product and working your day job. Successful blogs are written by well-funded competitors who don't have to code 18 hours a day and have capital to keep staff on payroll to blog/tweet/whatever and make as much attention-grabbing noise as possible. Writing pieces like "Why Scala?" twice a month won't do it for you, I've tried. So...
Have a fucking great idea
Your only chance, really, is to build something which can spread like a virus after being announced on a col-de-sac party. Something utterly addictive, unusual and truly amazing. A great self-selling, self-propagating viral-on-steroids idea (assuming you can code) is your only chance to succeed.
Ughh, I already feel a little better. My wife's expecting me home in half an hour, so I need to come up with a cheerful answer to her inevitable "how was your Big Launch Day?", that answer needs to be awesome and funny, to help take my mind off my empty inbox and server logs.
Oh, about scalas, clojures and rubies - they really, really don't matter.
[+] [-] tptacek|15 years ago|reply
You are building a business. It does not spring from your forehead like Athena, or get pooped out of your pet Nibbler like Dark Matter on Futurama. Listen to what everyone else here has to say. Sure, pick something with favorable long-tail SEO dynamics. Sure, pick something with a viral loop. Sure, build yourself a tribe.
But then, for god's sake, pick something you can stick with, nurture, protect, and grow over the long run. That thing you don't have, that you keep calling "a fucking great idea"? Most of us call it "a winning lottery ticket". Stop thinking about playing the lottery. Get back to work.
[+] [-] patio11|15 years ago|reply
FogCreek was a wee little consultancy which got the market shot out from under it which launched a product that nobody cared about which happened to produce an industrial biproduct which, ten years later, employs a few dozen developers in an office next door to the New York Stock Exchange.
My software -- which is not nearly on the scale of either of the above businesses -- launched to all of 116 visitors. Four and a half years of very, very part-time work later, it pays my salary. (It will sell the hundred thousandth dollar worth of software some time before Halloween.) I'm happy as a clam and getting the next adventure ready as we speak.
[+] [-] hboon|15 years ago|reply
Totally agree with you point though.
[+] [-] wensing|15 years ago|reply
[+] [-] rwhitman|15 years ago|reply
I'd say one thing - Techcrunch is definitely NOT the only game in town for PR. They are very fickle and clique-y. There are huge startups that never made a dent in TC. PR is all about building buzz from the ground up, exclusives are a load of crap and mostly reserved for established players anyhow.
If you're not getting any coverage from anywhere, yes maybe there's something at the core that isn't compelling (and you need to talk to customers / users first to determine that), but chances are you aren't spending enough time sending fun personal emails to lower-level bloggers and journalists. If you aren't in the elite old-boys club, you shouldn't be focused on approaching the journalists who are.
But PR and "viral" launches are hard work. The idea of the massively hockey-stick organic viral launch is largely a myth propagated by a few outliers (aka survivor bias).
And good PR does not make a success, either. I've built 2 things that made big PR splashes (everything BUT TC haha) and neither landed me either fame or fortune. The one product was blogged about by the New York freakin Times, and it never achieved escape velocity. PR isn't a long-term marketing strategy. Its a one-time high and believe me the downslope doesn't feel good either
Honestly, there are 2 types of folks who make it: the lucky ones, and the persistent ones. Its hard as hell (and heck I haven't beaten it yet) but you have to ignore the burnout and be one of the persistent ones
[+] [-] jeromec|15 years ago|reply
Best entrepreneurial quote ever IMO.
[+] [-] auxbuss|15 years ago|reply
"Nothing in the world can take the place of persistence. Talent will not; nothing is more common that unsuccessful individuals with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."
[+] [-] petervandijck|15 years ago|reply
[+] [-] smarterchild|15 years ago|reply
If you sell pianos, find musicians.
If you sell coupons, find local restaurants.
What are you selling that's gonna go on TC?
[+] [-] robryan|15 years ago|reply
[+] [-] jdietrich|15 years ago|reply
Let me tell you about a fine English gentleman by the name of Joe Ades, now sadly no longer with us. Joe wore Savile Row suits and lived in a three-bedroomed apartment on Park Avenue. He spent most nights at the Café Pierre with his wife, sharing a bottle of his usual - Veuve Clicquot champagne. You might assume that Joe was a banker or an executive, but in fact Joe sold potato peelers on the street for $5 each, four for $20.
I urge you, I implore you, I beg you, stop what you're doing and watch Joe in action - http://www.youtube.com/watch?v=HCUct4NlxE0
That is what business looks like. Sometimes, once in a million, you luck upon a product so amazing the world beats a path to your door. For most of us, the best we can hope for is to be some chump with a thousand boxes of vegetable peelers. Anybody can sit out on the street with a box of peelers, but Joe sold them. Joe made his peelers sing, he made them seem like magic. He took a humble piece of stamped metal and created theatre. He did something so simple and strange and wonderful that people would buy a fistful of his peelers, just so they could tell their friends about this little Englishman they saw in Union Square.
Look at the Fortune 500, tell me what you see. I see grocery stores, drugstores, oil companies, banks, a funny little concern that sells sugar water. I see a whole lot of hard work and very few great ideas.
Forget about striking it big with a great idea, it's just as childish and naïve as imagining that the tape you're recording in your garage is going to make you a rockstar. Get out there and talk to customers. Find out what they need, what annoys them, what excites them. Build the roughest, ugliest piece of crap that you can possibly call a product. If you're not ashamed of it, you've spent too long on it. Try and sell it. Some people will say "I'm not buying that piece of crap, it doesn't even do X". If X isn't stupid, implement X. Some people, bizarrely, will say "yes, I will buy your piece of crap". It is then and only then that you are actually developing a product. Until you've got a customer, it's just an expensive hobby. Paying customer number one is what makes it a product.
[+] [-] fookyong|15 years ago|reply
To wit, regarding the OP's main point:
- selling potato peelers is not a "fucking great idea" by any means.
- selling potato peelers in a $1000 suit, in manhattan, as a chirpy english gentlemen IS a fucking great idea.
it's an idea that sells itself, you basically touched on the same point as the OP. He did something so simple and strange and wonderful that people would buy a fistful of his peelers, just so they could tell their friends about this little Englishman they saw in Union Square. You have to be a little crazy, be a little disruptive, and that's going to get you your audience.
[+] [-] dstorrs|15 years ago|reply
Thank you so much for reminding me of him.
[+] [-] Vivtek|15 years ago|reply
That guy's a better salesman dead than most people on Earth.
[+] [-] david927|15 years ago|reply
I think you could put it better: Your idea has to be something people feel they want and will use. People don't want a drill; they want a hole in the wood. Joe Ades didn't sell a potato peeler; he sold a way to get your kids to eat their veggies, a way to make great french fries.
Have a fucking great idea
Nonsense. How the fuck do you know it's a great idea? Your ego. I'm sorry but you won't know (can't know) if it is what people want or need. No one does. Trust me, the music industry and film industry would love to know when they will have a hit.
But unlike film and music we can iterate. Take your ego out and let people tell you what they want. Try to understand their core desire and work with that. Ignore funding. You're begging for TechCrunch coverage? Unless your market is "people who read TC", you're wasting you're time. Apply any way you can to those people directly in your market. And if you don't know who they are or how to do that, stop and go back to your day job. Because the software business is not about the software; it's about the business.
[+] [-] jiveassturkey|15 years ago|reply
Hard work is important, knowing the right people helps.
[+] [-] nowarninglabel|15 years ago|reply
[+] [-] ezrider4428|15 years ago|reply
That is why customer development is so important. You need to understand what your customer does and show them that you can make that part of their life easier. For enterprise software its the same, prove to a company that you can actually reduce or eliminate a pain point and BOOYA you have a sale and once you have sales, you get press when you get press you get more sales and the cycle continues until you exit gracefully.
[+] [-] richcollins|15 years ago|reply
You should work hard to make a great product. If you don't know how to make a great product and don't have to patience to learn, go work for someone that does.
[+] [-] ramanujan|15 years ago|reply
Perhaps this is a bit of an oversimplification? The reason those particular concerns are still on top is that they had plenty of great ideas in addition to execution. You don't stay a top oil company without kickass geophysicists, for example.
[+] [-] xelipe|15 years ago|reply
exhaustedhacker, I feel for you, but since when is TechCrunch to bouncer or doorman to your success? No ones fortunes should be dependent on Michael Arrington. Instead of taking time to craft emails for him and his staff him, spend sometime crafting emails to targeted users. You said that you have had some success from meetups, do more of that, fight for every user. Give out a few free trial accounts to influencers, such as to folks here on YC. Reach out to other disrupters, Mashable, This Week in Startups, etc. If you don't have time to blog about your, you can contract folks for $10-20 a post.
Good luck, and thanks for sharing!
[+] [-] motters|15 years ago|reply
[+] [-] apsurd|15 years ago|reply
You are doing it backwards. Start with the market first. Your idea is only as good as it applies to the market it serves. You should not have spent 60k on a developer, you should have spent it leveraging a way to talk to your proposed customers.
Yes I agree, shit products get sold all day every day and rake in billions. But you see the product may be shit BECAUSE everything else is so much more important. The system, the sales force, the production line, the logistics, the tracking. I love Mcdonald's. Nah not their food, their system.
I know you are just venting and now may not be the best time to say "you are doing it wrong", but well, it actually is the best time.
You are doing it wrong. I know because I've done it wrong for a long time too! I actually am more of a programmer than a business guy but its kind of funny... "I want to run a business" kind of entails that we think more like business men and less like programmers.
Best of luck to you. STOP doing shit that doesn't work and doesn't matter.
[+] [-] webwright|15 years ago|reply
If you want to avoid this experience again, choose an idea that:
1) Has a broad-content SEO strategy (think StackOverflow and Yelp). New/valuable content gets created every day.
2) Has a channel for "buying" customers with economics that work. Plenty of people make adwords work. Plenty of others can afford salespeople. Find a market where people are succeeding at buying customers and compete in it.
3) Has a viral loop. Think Farmville or Groupon. Why is it in your customers best interest to evangelize your product? They can be motivated by psychology or $.
4) Create a "tribe". Read up on Seth Godin. Look at Joel Spolsky, 37Signals, etc. They sell good (NOT great) products because they've accumulated followers and evangelists.
It's not about a "great idea". Well, it can be. But look at all of the shitty products that are minting money! You can aim for a "addictive/amazing" product (and should), but it better be backed by sound customer acquisition economics for the (likely) case that your product is merely good.
About your launch day: You expect to blow it out on launch day? That's not a reasonable expectation. It's a marathon not a 100 yard dash.
edit: TechCrunch should not be a goal. At YC there's a word for the period after TechCrunch coverage... "The trough of despair". It's the period of time after TC where your traffic flatlines and you realize that TC isn't a springboard to anything-- it's just the first step (if you're lucky) on a really long slog to building a business.
[+] [-] ajscherer|15 years ago|reply
[+] [-] revelate|15 years ago|reply
5) Makes sense for other companies to promote to their customers. Ideally ones with lots of customers.
Bonus points: your product fits in to their customer acquisition process (i.e. helps generate more revenue for them).
Triple bonus points: you have access to a large number of these companies through a small number of entry points. For instance a trade association or a friend that will introduce you.
You wouldn't believe how easy it is to get your product out there in the above situation. PR is the last thing you worry about.
[+] [-] petervandijck|15 years ago|reply
[+] [-] froo|15 years ago|reply
I've tried in the past like you to get on TC and I was unsuccessful. The truth is I tried sending emails to all the "big name" blogs and nada.
I learned a different approach very quickly. I found that if you approach the "small" blogs, they're much more open to covering you. Then using that small amount of coverage as leverage, you approach more well known blogs.
Doing that, I managed to go from not hearing from TC in one week, to having the top story on Yahoo UK's homepage for an entire day the next.
It wasn't easy, it was a shit ton of emails that I wrote, all carefully crafted and targeted to each individual blogger I approached.
In a month the site went from idea, to launch, to 440k uniques (racking up 2.6 million pageviews) to being sold off for quite a tidy profit given it had a very short shelf life.
http://dl.dropbox.com/u/1918270/traffic-08.png
Anyway, my advice would be to not to give up, just change tactics and approach the smaller guys first, build a solid foundation and work your way from there.
Also, take my advice with a grain of salt as I mentioned I'm no marketing genius.
[+] [-] dasil003|15 years ago|reply
The first thing you need to do is make your product compelling. There is a reason for all the talk about rapid iteration, minimum viable product, and the lean startup; creating a compelling product is hard. There is no formula for it, and customers are infuriatingly fickle. It's hard enough with established markets for things people really need (eg. food, toiletries, houses, cell phones), but when you're creating something brand new there's this huge hurdle to get people to understand how it fits into their life. There's no telling what will make something compelling, so you need to just put something out and iterate on it. Get 5 customers, get 10 customers. If these people find your product compelling and can give you real world feedback and evangelize the product, that is worth more than 50,000 visits from bored TCers who spend 5 minutes then jump to the next story.
[+] [-] mrkurt|15 years ago|reply
I recently benefited from just that - I was debating applying to YC, decided not to due to our family situation (just bought a house, adopting one kid, fostering 2 others, own an annoying poodle) and my wife said "hey, you know what, give it a shot. We'll make it work".
[+] [-] jamesjyu|15 years ago|reply
"In just 8 months without any funding we went from zero to a beautiful system, signed up a couple of early customers by attending local meetups and events, and prepared for a Big Day."
That is your first and foremost problem. You cannot go into a cave and develop your product with no significant marketing or at least a soft launch. You're going to end up building the wrong thing (or even worse, find out the idea was crap all along).
You need to launch an MVP ASAP. And a lot of times, that MVP is only just a landing page (with no other functionality)! If you don't get any signups or excitement, that is reason to pause.
[+] [-] michael_dorfman|15 years ago|reply
That's not an MVP, that's a Dry Test. There's a difference.
[+] [-] michaelchisari|15 years ago|reply
Open source your software, generalize it, and push it so that anyone can set it up. Make it easy to install, and make it do what it says it can do really well.
Sure, it's not the best way to get rich. I've been working on the open source social networking software, Appleseed, for about 6 years now, and it's been a massive effort with very little financial gain. But your measure of success can change, you can subvert the typical questions of press and fame and fortune that have come to define success, and see success in other ways.
And it's not perfect. I had been working on Appleseed for half a decade when Diaspora managed to raise $200k on the same idea by having the connections and press I couldn't get. But in the world of open source, there is still a level of meritocracy that you don't see in the start-up world: Either your software works, or it doesn't, and they may have had $200k, but I had 13 years of professional experience, and a 6 year head start, and when you're measured in code, hype can only get you so far.
You may even see your open source software put the fear of God into that mediocre LA competitor with all the press and venture capital, which just personally would make me feel better.
The one thing my father always said that I had to relearn with life experience is "it's not about what you know, it's about who you know". It's a very frustrating truism, but there are ways to sidestep it. It just requires some creativity and willingness to play outside of the rules.
And of course, you never know, if your open source software gains traction, you might find it easier to start a company from there, since you'll have gained respect, notoriety, and social connections from that work.
[+] [-] samt|15 years ago|reply
If you want press, think about your story and make it a good one.
[+] [-] chegra|15 years ago|reply
[+] [-] olalonde|15 years ago|reply
My impression is that a lot of comments are just restatements of the usual clichés: "get the first paying customer", "luck vs perseverance", "minimum viable product", "execution vs great ideas", etc.
As someone who has already asked this kind of question on HN, that type of cookie-cutter advice really isn't helpful at all (assuming you have been following HN for a while).
We need more specific, actionable advice. Here is mine:
</rant>
Grab a copy of "The Four Steps to the Epiphany"[1] by Steven Blank and apply his methodology. It's broadly a "How-to" guide on discovering who your customers are, what they really want and how to make them buy. According to your story, it seems you are focusing too much on getting PR when you really should go out your office and talk with your customers directly (instead of via TC).
[1] http://www.amazon.com/Four-Steps-Epiphany-Steven-Blank/dp/09...
[+] [-] trevelyan|15 years ago|reply
My suggestions for AdSense would be to spend $500 at once rather than trickling the money out. This gives Google enough knowledge of your conversion rates that you can switch to pay-per-conversion. Bear in mind that you also have to be ruthless about excluding websites where you aren't going to get any conversions during your pay-per-click period. So track your spend daily and exclude-exclude-exclude sites that don't convert. I don't know if you've done this, but it basically halved our advertising costs and turned us from advertising at a loss into advertising more or less at cost (perhaps profitably assuming word of mouth, etc.).
Good luck!
[+] [-] d_r|15 years ago|reply
[+] [-] dools|15 years ago|reply
Thanks for the tip!
[+] [-] petercooper|15 years ago|reply
True for you and many others but not a universal truth by a long shot. Blogging is far from a time consuming activity if you're both a reasonable writer and neck deep in the subject matter. Let's just take an example that sat on the front page of HN for most of today:
http://blog.scoutapp.com/articles/2010/10/21/why-we-dont-sch...
232 words. And as my own blog was on the front page a similar length of time today, I'm confident they got at least 2000 pageviews from that (I got 5000) and I know I've seen several posts of theirs do well here. Yet if you check their blog, they have several posts per month at most, none are very long or technical.
Other startups like SeatGeek and MailChimp nail the blogging in a similar way. There's no way they're not getting some serious exposure with them, yet it seems in most cases it's regular techs updating the blog and not some team of "noise" generating PR flacks.
[+] [-] brc|15 years ago|reply
Small Blogs are about personal brand, long tail keywords and SEO benefits. I sometimes talk about products, sometimes post big ideas, sometimes post about failure.
My guess as to your problems would be lack of customer contact the whole way through. Without knowing the problem domain, if you're concentrating on getting 'industry' PR like TechCrunch, you're probably concentrating on the wrong people. Assuming there is some type of vertical you're targeting (travel, photography, vehicles, whatever) thenyou should be making moves in that part.
My final thoughts on the matter : it would never even occur to me to try and get TechCrunch coverage or anything like that. I would just be trying how to work out how to find customers that pay. If you've spent a fortune on google ads, then you should at least know what works as a click through and what hooks to start working around. It's either bad conversions or a bad product. PR coverage won't fix either of those.
[+] [-] imasr|15 years ago|reply
[+] [-] zatara|15 years ago|reply
[+] [-] greendestiny|15 years ago|reply
If that doesn't work iterate and launch again.
[+] [-] gallerytungsten|15 years ago|reply
In your story, I didn't see anything about sales efforts beyond "signed up a couple of early customers." Perhaps that was the missing link. It seems you relied on PR tactics, rather than finding, choosing, and closing customer deals one by one.
[+] [-] ed|15 years ago|reply
FWIW, word-of-mouth marketing usually feels like a total crapshoot. Topical, often trivial ideas seem to do the best. And honestly Techcrunch doesn't help as much as you may think. They're good for a spike of 5-10k users, but much more important is your willingness to support an unpopular product for another 6-12 months. Because it will be unpopular. :-p
You might not feel comfortable linking to your company here but I'd love to see what you're working on. I put my email address in my profile, maybe I can offer some feedback.
[+] [-] joeag|15 years ago|reply
To get early customers I like the domino theory that Clayton Christensen first described in his book Crossing the Chasm (assuming you have built a product that solves an actual, difficult to solve customer problem that is worth paying for):
1. Start with one (paying customer), that customer then; 2. Gives a testimonial that you can use to sell other similar customers and; 3. Actually provides you names (and sometimes even actual referrals) of other customers you can sell to.
As you build reference customers it gets easier to sell to other customers because now you start to get a rep as a must have in that particular industry.
Nowhere in your posting do I see anything about "we have X number of customers" or "we worked with X number of customers when developing our product". If you spent $60k plus your own time developing a product before showing it to any customers it's possible that there is no need for the product, and that more than anything may be why you are not getting the response you want from either investors, "journalists" or customers.
I know how this can happen, I've been there myself! (It seemed like a good idea when we started building it, how come nobody wants to buy?)
[+] [-] Sukotto|15 years ago|reply
[edit] Wait. You missed having yourself or your family getting sick. Or maybe you live someplace with socialized health care.
[+] [-] apl|15 years ago|reply
The cognitive dissonance of working on a silly web app while worrying about something as fundamental as my family's well-being in case of illness or accident: that would really, really tear me apart.
[+] [-] dools|15 years ago|reply