Totally agreed. I’ve had similar experiences.
I might be wrong, but this seems like you received bad advice in so many ways! I see problems at every step.
What a person claims they’re willing to pay and what they actually do when asked to enter their credit card info are not the same.
Let’s assume optimizing is about maximizing profit. Let’s simplify, as many startups do, by looking to maximize revenue and assuming that costs won’t dramatically change, though people point out that cheap customers have higher costs (support requests, complaints, etc).
Okay, so let’s maximize revenue. Revenue is price multiplied by number of customers.
Let’s replace the two survey questions with a more pointed question: “what is the maximum price you’d be willing to pay?”
Once you conduct your survey, the graph won’t have straight lines but a distribution that might look like one of these curves, where X is price and Y is number of answers. Given that at any price point all customers below that price will buy too, you’ll want to calculate the cumulative distribution curve, which looks like one of these S curves (but flipped around because it’s going to be a decreasing function). You’ll end up drawing rectangles similar to the way they are on this graph and picking the one with the maximum area (price times total customers).
Spot on! Your list at the bottom resonates fully with how I’m approaching building my company, HostedMetrics.com.
Wow! Just wow! What an insightful, detailed, and informative piece of content. Thank you a million times!
This is something need of the time. Great article with great encouragement.
Product retention is what most of the organizations are trying to improving some changes expected by the customers and the main source for it are the feedback they received. Mapping your customers journey is the best way to know your customers and for the retention as well as new acquisitions.
I find it strange that you get that amount with your amount of email subscribers.
Getting a 404 on this page and root domain
Valuble talk. Thanks for posting!
The use of “complex” in this article roughly means “causing the user to work harder to do things in your product” (search, fill out forms, etc.).
Not what I expected from reading only the title.
This article is about making things easy for the user—specifically making forms valid by default rather than invalid by default, and tolerating a possible increase in incorrect data.
Interesting read, although I think it’s easy to convince readers that “valid by default” generally leads to a smoother user experience, and consequently, I would have preferred a discussion on when or why tolerating incorrect data makes sense and a focus on techniques to reduce incorrect data.
I recently discovered https://www.heavybit.com/library/. So far I’ve watched Dearing on Pricing and Civilized Discourse… But How? (previous thread). I enjoyed both. This seems like it may be a good resource overall. If you’re aware of any other videos on here that are worth watching, please say which.
One piece of advice given to potential founders of startups is looking for pain points people have. Then, solve them. The high cost and inflexibility of electronic hardware plus non-hands-on education were obstacles to hobbyists. The author went from solving their own problem into bootstrapping a business solving others' problems on the cheap. Only got better from there.
The irony..An article advising against building an entire business which relies 100% on a third party.. and sponsored by pull reminders, which appears to be 100% relying on the slack API.
Thanks for the feedback @alynpost. Can you please let me know which of the checklist items did you feel are not on-topic. It will help us make the checklist better.
BTW, We are a team of 4 folks.
It’s not quite on-topic, but I noticed you use ‘we’ when talking about MailSwift. How many people are you? Are you interested in talking about your team at all?
How would you define a business insight?
This would be a stronger submission if you posted a blog entry rather the whole blog. It’s too much to take in all at once.
Were any chapters or themes from this book personally helpful to you? One pain point in this area we’ve seen a lot of effort in solving, from the introduction:
My mentees and I repeatedly solve the same core issues together.
That idea is now firmly entrenched in the technical / operational stack of businesses. Particularly VC funded businesses. I’ve quipped that you can tell the age of a business by what backoffice software it uses.
While it is a different customer acquisition channel, reading this reminded me of Joshua at afraid.org, a DNS hosting provider.
I had lunch with Joshua last year and remarked that having a free tier meant that your potential customers signed themselves up for your service. That is a well-trodden path, but a topic I find interesting is how that does and doesn’t work if you are trying to create a community out of your free tier.
From these slides, the stages (phases) of a startup’s lifecycle:
Years ago now I was speaking with a colleague who asked “What problems do you have that money can solve?” He was referring to the second stage here, which I have often thought about as having identified the place where if you put money in one end more money comes out the other end. Such that your business is now capital constrained because it can demonstrate that adding capital grows revenue.