4 ms·
The biggest advice I can give you is to forget the consumer market and create a B2B product. You only need 20 customers paying $50 a month to get $1000 a month
by il 16y ago
The biggest advice I can give you is to forget the consumer market and create a B2B product. You only need 20 customers paying $50 a month to get $1000 a month revenue and be able to easily get a 20-50k exit.
If you figure out a way to save a business $50 a month, or 1 developer man-hour a month, hitting that revenue target will be trivial.
I have done this numerous times with tools I had initially built for myself to automate a repetitive marketing task which I then spun out into subscription services and flipped for a 5 figure sum.
- endlessvoid94 16y agoThat's inspiring. What sites were they?
- il 16y agoThey were tools to make marketing and SEO easier. Think keyword research, ad submission, etc/
- blaines 16y agoI agree, I have a couple of my own services like this. How long did it take you to hit acquisition level, how did you find the acquirer?
- il 16y agoBasically the goal was to scale revenue rapidly and show solid growth month over month. Usually it takes about 6-9 months to demonstrate that degree of traction. Once I have it running for that long, I just post the site on Flippa- they love subscription sites with steady revenue there and will pay 12-24x monthly revenue for a site with steady and growing income, especially if it's unique and has custom code.
- rubeng 16y agoSounds interesting but creating a product takes a lot more time than just writing the code. I'd be interested in hearing how much time you put into creating a product that provided you with a 20k to 50k exit. (Code and marketing time) It seems as though working 15 hours a week for 6 months to develop a product that gives you a 20k exit would end up paying you $55/hour. Not a great return on your time in my opinion. But might still be worth doing at least once for the experience you'd gain in launching a successful product.
- il 16y agoI would consider $55 an hour a pretty good wage- that's beyond ramen profitable. You also forgot to add the $1000-$2000 a month in subscriptions you receive before selling. Also, development time is a sunk cost, because I had already built the tool for my own use. The only additional dev time is tacking on PayPal subscriptions and prettying up the interface, maybe 15-20 hours total. As for marketing, that's my area of expertise, so I don't mind. Usually just reaching out through my network of fellow marketers in enough to build a few initial users and start getting traction.