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If you think getting past the first million users is tough, try reaching the first $1M in revenue and growing to $10M... many of these consumer-facing apps hav
by rexreed 14y ago
If you think getting past the first million users is tough, try reaching the first $1M in revenue and growing to $10M... many of these consumer-facing apps have no idea how to get to that first million, let alone the tenth. When I work with other startups, that's usually my first question: "How are you going to get to your first million dollars in revenue?" Even for those that have an answer as to WHAT they'll do, they haven't thought through HOW they'll do it. In many cases, for these consumer-facing apps, it will cost $2M in customer acquisition to get to $1M in revenue... if they can get there at all. Many are building to flip - hoping that the music doesn't run out before the money does.
- hayksaakian 14y agoI don't think that getting 1 million users is something to scoff at. It demonstrates that 1M people think that the service is valuable. Deciding how to extract money from them is a first world problem.
- rexreed 14y agoI agree with you -- who's scoffing? What I'm saying is that without the revenue model, the million users gets you something that's impressive, but not quite yet a business. And without it being a business, it's hard to see how to sustain that million user base. Isn't that the whole idea of the Underpants Gnomes? Yes, you can get the users, and yes you can get profit... but exactly how? Many times you can make it work if you can figure out Step 2, but if you don't have enough capital, you can't.
- lifeisstillgood 14y agoUnderpants Gnomes ?!
- lanstein 14y agohttp://en.wikipedia.org/wiki/Gnomes_(South_Park) http://en.wikipedia.org/wiki/Gnomes_(South_Park)
- lifeisstillgood 14y agoThank you, I think this is one of those times you need to see the episode to understand. I'll live :-)
- rexreed 14y agocheck out the video on this page: http://onstartups.com/tabid/3339/bid/8608/Startup-Lessons-From-The-Underpants-Gnomes-PROFIT.aspx http://onstartups.com/tabid/3339/bid/8608/Startup-Lessons-Fr...
- pifflesnort 14y agoI could give our free hamburgers and get 1M users tomorrow. Deciding how to extract money from them is not a "first world problem". It's the entire problem.