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Yaw, using the word profitable isn't really reasonable even with a disclaimer. Software startups have very few significant expenses other than manpower. Our 3
by webwright 18y ago
Yaw, using the word profitable isn't really reasonable even with a disclaimer. Software startups have very few significant expenses other than manpower. Our 3-person startup (when we start paying ourselves) will literally be paying out 10x more per month in salaries (that's with fairly stunted salaries) than all other expenses COMBINED. It's a long road.
Nonetheless, killer accomplishment and I think it's a kickass tool. I am leery of the non-recurring revenue (I read the authors post on why he made that decision, but I still think he's wrong)... Every customer adds a touch to the support overhead and doesn't add to the revenue line but once. Customer acquisition is hard, and fixed price software has to do it constantly or die.
SaaS is golden. Low risk for the customer, beautifully aligned interests, and you cease to be a slave to the launching new versions just to get your current customers to give you more money.
- balsamiq 18y agoHey there, thanks for the comment. Regarding your last point: I totally agree SaaS is golden, I just don't want to host it myself now, and thus be a slave to having to keep the service up all the time. :)
- webwright 18y agoHeh-- you're just choosing a different master. You're going to be a slave to sales/distribution instead. I'm only half-kidding-- it's no coincidence that most shrink-wrapped software guys are trying to get into SaaS offerings.