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Ask HN: Publish Startup Revenue Numbers?
I've seen a number of startup and private companies lately participate in the process of posting their revenue and profit numbers for their businesses. I sense that reason these organizations publish their revenue and profit numbers to emphasize their success - and I enjoy reading these postings and outlines.
In my case, I run a rather large online community that generates revenue from the "Fremium" model in addition to license revenue, advertising, and other sources.
So, my question to the HN community is: What advantages and disadvantages do you see in publishing this information to your community and the world? Are you concerned that some folks may view this information in a negative light? Would you expect an uptick in conversions to paid models when revenue numbers show that "others are doing it?"
In my case, I've always held my revenue and profit numbers close, but I'm curious as to other's experiences and concerns.
Thanks,
- patio11 17y agoWhat advantages and disadvantages do you see in publishing this information to your community and the world? It makes for good linkbait, gives you a quick cut-through-the-noise hook (utility of that declines sharply with exposure), and especially for solo entrepreneurs I think it sort of helps with the crushing social isolation we're otherwise prone to. People I respect (and respectfully disagree with) have said that it promotes small-time thinking, encourages competitors to come eat your lunch, and complicates your professional dealings with parties who may be concerned that you cannot stuff the genie back in the bottle. (For example, potential acquirers). I would not expect any substantial increase in conversions from publishing numbers, since the people who are most interested in them are your professional peers rather than your customers.
- blantonl 17y agoSo that begs an important question.. where would/should you best publish your private corporation's revenue and profit numbers if you chose to? To your userbase? The media? Hacker News? :) The user base will ultimately see the information at some point, and I'm trying to understand their reaction to the information.
- patio11 17y agoThe user base will ultimately see the information at some point, and I'm trying to understand their reaction to the information. I think you probably overestimate how much your userbase cares about you, unless you have cultivated an unusually close, personal relationship with them. I mean, many of the companies that you do business with publish all their financial information four times a year. Have you ever gone through, e.g., a Google earnings report because its just so important to you? (Substitute with another company if you are not actually a Google customer.)
- blantonl 17y agoI think you probably overestimate how much your userbase cares about you, unless you have cultivated an unusually close, personal relationship with them. There in-lies the issue.. this project started many years ago as a platform for a small hobby related concept to a major business operation today. Our revenue model started from donations and ultimately moved to the fremium model. All along the way I have been intimately involved with the user base, and still to this day I am directly involved with the userbase. There are many long time members of the site that to this day believe that their subscriptions "support" the site's operations vs. puts food on the table for my family and pays my salary (many don't know I've moved on to run this business full time).
- tptacek 17y agoYou obviously don't want to publish your financials. So don't. Patrick doesn't get to read Matasano's financials either. Most people don't publish their numbers, and many of them have very good reasons not to. He's still probably right: your customers don't care about your numbers.
- blantonl 17y agoIf you wonder what brought this on, see the following HN post: http://news.ycombinator.com/item?id=1028418 http://news.ycombinator.com/item?id=1028418 Thanks,