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The founder of logojoy once said in an interview that he could have stayed as a single founder company. I think logojoy was pulling in > $350,000 per month at
by kresten 7y ago
The founder of logojoy once said in an interview that he could have stayed as a single founder company.
I think logojoy was pulling in > $350,000 per month at the time.
If he’d sat on that as a single founder he’d be rolling in cash.
Imagine sitting on $350,000 a month for 3 years.... you’d never need to work again.
Instead, venture capital, offices, 40 staff, rebranding failure staff cuts, logojoy gone.
- conanbatt 7y ago350k of profit or revenue? It's not the same thing. In profits, that's typically a 50 million company.
- kresten 7y agoRevenue. As a single founder company, I’d think that would be mostly profit, say 90%? That leaves about $400,000 per annum to pay for an ec2 instance and salary if working from the kitch table. Imagine having a company 90% profitable and burning it up on the dream of venture capital backed growth.
- fhbdukfrh 7y agoNo way. They paid for all the actual work and took a cut. He wasn't a single founder doing all the actual Service work
- austhrow743 7y agoWhat service work?
- onlyrealcuzzo 7y agoEh, if he had to pay for a lot of the traffic that generated sales, I wouldn't be surprised if it was closer to 50%. But still, this was almost certainly $100k+ profit per month.
- alaskamiller 7y agoDepends on if logojoy would stay as lead gen for actual software play, a la canva, or if they were selling human-in-the-loop as pure AI. The former then margins might be fat but the latter his margins will be slim. Additionally to continually stay ahead of the pack most of his revenue might have to get dumped right back into advertising. Say it's a $5MM/annum business, after costs, paying out salaries it might be half a million in profits.
- purpleAvocado 7y ago> Depends on if logojoy would stay as lead gen for actual software play, a la canva, or if they were selling human-in-the-loop as pure AI. The former then margins might be fat but the latter his margins will be slim. They were selling monthly packages (which made little sense for just a logo), I guess that’s why they added all the new features. Also, no humans are involved — it’s "AI" in the sense that the logos are machine generated, but they’re also pretty bad. It‘s basically icons from the noun project combined with text in set in free fonts.
- mv4 7y agoThis was one of those elusive passive income models - so perfect for automation.
- stanislavb 7y agoYeah, I'm sure he regrets it now. A lesson well learned. Moreover, I still can't get it how one would think that "Looka" is a better brand than "Logojoy" ️
- microcolonel 7y agoOnly education can make people that sure of something that foolish.
- purpleAvocado 7y agoI seriously doubt the 350K/month number
- ProAm 7y agoSome lessons in life you only need to learn once.