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Scaling to a billion dollar company in that market was certainly attainable. Patreon started two years after Gumroad and now look where they are. Gumroad had a

Scaling to a billion dollar company in that market was certainly attainable. Patreon started two years after Gumroad and now look where they are. Gumroad had a movers first advantage - so I really disagree with the quote. Had they continued to push feature development and tweak PMF they could have been a billion dollar company. Don't take that as a slight to Gumroad either. Building a profitable business from almost going under and now generating close to $1m in annual profits is an incredible feat. But I do disagree with the point that the market wasn't ready (as clearly demonstrated by the success of others).

TheKarateKid 8y ago
I agree. Some of the most successful companies became that way because they told us we "needed" their products, usually by clever marketing.
Kye 8y ago
Patreon and Gumroad were different businesses for most of their histories. Gumroad was always a place to sell stuff and launch subscription services. Patreon is trying to pivot that way now with all their talk of membership businesses, but no one who uses it seems to see it that way. That's why everyone was up in arms about the fee change in 2017. People tossing $1 here and there to people they liked were the foundation of everything. Membership businesses generally start at $5 a month. And Patreon isn't going to have much luck with it. There are so many better options if someone just wants to set up a membership business. Memberful, which they bought, wasn't even one of the better options. It doesn't even handle anything other than plans, payments, and integrations with services that do the heavy lifting.
- Daegalus 8y ago
  Any examples of other business that do what you mention at the end? Just curious what the "better" options are. I like to keep abreast of the underdogs.
  - Kye 8y ago
    Gumroad is the only one I've used. Others popped up over the years, but I didn't think to keep notes.
treis 8y ago
>. Patreon started two years after Gumroad and now look where they are. Two years away from buying back shares for $1 from their VCs? There's this whole swath of the internet that can support thousands of small businesses that's being slashed and burned by VCs in search of a unicorn. Gumroad and Patreon are both perfect examples. They are both good ideas that are well executed. They are not, however, companies that can extract tens of millions to hundreds of millions in profit a year. They really should be 20-30 employee type companies making a steady couple of million in profit.

TheKarateKid 8y ago

I agree. Some of the most successful companies became that way because they told us we "needed" their products, usually by clever marketing.

Kye 8y ago

Patreon and Gumroad were different businesses for most of their histories. Gumroad was always a place to sell stuff and launch subscription services. Patreon is trying to pivot that way now with all their talk of membership businesses, but no one who uses it seems to see it that way. That's why everyone was up in arms about the fee change in 2017. People tossing $1 here and there to people they liked were the foundation of everything. Membership businesses generally start at $5 a month. And Patreon isn't going to have much luck with it. There are so many better options if someone just wants to set up a membership business. Memberful, which they bought, wasn't even one of the better options. It doesn't even handle anything other than plans, payments, and integrations with services that do the heavy lifting.

Daegalus 8y ago
Any examples of other business that do what you mention at the end? Just curious what the "better" options are. I like to keep abreast of the underdogs.
- Kye 8y ago
  Gumroad is the only one I've used. Others popped up over the years, but I didn't think to keep notes.

treis 8y ago

>. Patreon started two years after Gumroad and now look where they are. Two years away from buying back shares for $1 from their VCs? There's this whole swath of the internet that can support thousands of small businesses that's being slashed and burned by VCs in search of a unicorn. Gumroad and Patreon are both perfect examples. They are both good ideas that are well executed. They are not, however, companies that can extract tens of millions to hundreds of millions in profit a year. They really should be 20-30 employee type companies making a steady couple of million in profit.