3 ms·
Start with the customer, problem and value to the customer before you write code
by cheez 7y ago
Start with the customer, problem and value to the customer before you write code
- yanis_t 7y agoBut if I have users who are using the service for free doesn't it already mean that there is a customer, a problem and a value?
- cheez 7y agoI guess I wasn't clear. The calculation you need to do is: NumberOfCustomers * RevenuePerCustomerPerMonth >= MoneyINeedPerMonth Then you need to back out the product and marketing from this equation. For example, for your TODO app: NumberOfCustomers * $3/customer/month >= 2000 So at $3/customer/month, you will need ~670 customers. Next you figure out: where the hell am I going to get 670 customers? I've been running one business for over 10 years and I think I have only 1500 customers in total. Finding customers isn't easy. What I suggest is: NumberOfCustomers = 10 MoneyINeedPerMonth = 2000 Create a product that 10 people will pay you $200/month for. Now, no one is going to pay you $200/month for your TODO app as-is. But... What can you change to make it so useful that 10 people just throw money at you? This is how I develop my ideas that are profitable from day one. There is a new software product I've recently created that I designed to make me $15K/day. And it's working. Sometimes. But still, it's working, sometimes. Edit: the worst thing you can possibly do is slap a price on what you've done. The reason is that you're just slapping a price on it, not because you've investigated the value added. If you really wanted to add a price of $3/month to people who are already using it, then add something that's useful to them. Perhaps integrate with Google Calendar as a pro feature. But now, you need to find 670 people who want your Google Calendar integration and need your particular TODO app. Not easy by any stretch.