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That is true. But note that they are based in Bangalore, 25K USD MRR is a ton of money (it is a lot of money even in the US). If they maintain this for just a y
by akudha 6y ago
That is true. But note that they are based in Bangalore, 25K USD MRR is a ton of money (it is a lot of money even in the US). If they maintain this for just a year or two, they're likely set for life.
Sometimes it works out to just ride the wave :)
- blackrock 6y ago$25k USD monthly, is $300k a year. Not bad, if it keeps running on autopilot for a few years. Say, you can keep it running for 3 years. This is close to $1 million USD gross. This could easily pay your cost of living, while you work on the next product. But you must also factor in taxes. But this is HN, so of course all this is obvious. To quote the adjacent comment: “No sh*t Sherlock”
- cambalache 6y ago> $25k USD monthly, is $300k a year. Gross Income, for 2 partners. As I wrote, best case you get 100k per partner net after 2 years, ceteris paribus. But they are living from this business so less money for the company. > Say, you can keep it running for 3 years. This is close to $1 million USD. This could easily pay your cost of living, while you work on the next product. Yes but that is a truism. If your business does well for several years, you will have a cushion for your next venture. I wrote because I wanted to write against the naive view many people in HN has about "developing countries", yes COL is lower but there is no magic place where 100k USD will set you for life. You still have to pay taxes, many goods cost the same or more than in the US, good healthare insurance is not low, etc, etc. My rule of thumb is that you need at least a mimimum 1MM to retire, no matter in which part of the world,of course if you pick London or Zurich the amount will need to be higher. This assume a family of 3, no further income, no house owned and to live a modest middle class lifestyle.
- bluedino 6y agoThere are also costs for the business. For example, 2.2 million WhatsApp chat messages initiated in June 2,200,000 * $0.005 per session message (Twilio cost for WhatsApp messages to India) = $11,000 I probably have that wrong, but I'm sure that's a big expense.
- cambalache 6y ago25 K/month x 2 years x(1/2 partners) = 150k 150k * 0.66 (extremely optimistic gross to net-income factor) = 100K You and me have different notions of "set for life" EDIT: I fudged a factor of 2 in the math, the final number is 200k, my point still stands.
- Drdrdrq 6y ago200k actually, I think you made a mistake? Anyway, in some parts of the world, yes, that is "set for life".
- cambalache 6y ago200k for 2 partners, 100k each. Tell me this magical place where I am set for life with 100k, i will fly as soon as travel is available. 100k assuming a 4% annual retirement rate, gives you 333 USD/month. Assuming a family of 2 and you need to pay rent, insurance,food,car or transportation, etc I dont see this feasible at all, at the very very least you need 5X times that.
- deleted 6y ago[deleted]
- badideaprojects 6y agoLots of parts of the world where people with families live for less than 1.5k USD a month.
- cambalache 6y agoYes! But even for 1500 USD/month you need 500k on your portfolio. And another thing , just because you live in a developing nation does not mean you dont aspire to nice things. You still need a laptop, a modern car, a cell phone, etc etc.
- kvetching 6y agoWow you're head is so far in the sand it's insane. You literally have no idea how far USD can go in third world countries.
- ramraj07 6y agoNot subtracting anything but wanted to mention that taxes in India are quite high. Also you can actually get paid quite well for a job in Bangalore, so it's not quite that much. It is, if after two years of work it goes into autopilot but as a full time job it might not be with it for two smart engineers in India.