We've taken a similar approach to building Vidpresso, and it's worked out really well. We literally found one customer who'd pay up front for a year of our serv

We've taken a similar approach to building Vidpresso, and it's worked out really well. We literally found one customer who'd pay up front for a year of our service, then they suffered through the woes of an early product. Then, we found our second customer who'd pay for our basic product, and then we started to scale out and launch more features. I think for any product that results in a sale, ie not a social net or the like (not disparaging!), this is the right approach.