Lat's assume SaaS or similar subscription service. If I sell a subscription product with a few price tiers, say free, 10$/mo, 50$/mo, and 500$/mo (and maybe a hidden tier for corporate customers that amounts to 1000$/mo on average). Let's assume most of my customers are in the free tier, 95%. The remaining 5% are stratified across 10, 50, 500, and 1000 (maybe following an inverse logarithmic curve because people are allergic to spending money -- -ln(x/1000) + 1). The following scale factors apply to each price tier:
- 1 x 1000/mo
- 2 x 500/mo
- 4 x 50/mo
- 6 x 10/mo
13 customers gets me to 2260/mo, so I'd need about 4 times that many customers to hit ~8000/mo. This comes to about 50 paying customers to hit 100k arr.
And now I need to sort out what I have that 50 people would be willing to pay those various amounts for protracted periods of time.
But what do I have that people want to buy? I can sell my time as a developer working on someone else's product and make about 100k arr. I can build a product -- and I assume most folks on this board are here in this camp, that they want to build something and own it. I could sell information products (ugh) or other kinds of information. What else can I do?
I'm curious how people with multiple launched products that make money managed to discover their original product. Was it an accident? Copious amounts of market research? Cross-industry experience that allowed them to build for non-engineers?
Looking at a lot of stories that people publish who “build in the open” I think yes people try different things until something sticks but they also often do some talking to prospective customers or some other way to understand the need.
- 8334 per month
- 1923 per week
- 385 per business day
Lat's assume SaaS or similar subscription service. If I sell a subscription product with a few price tiers, say free, 10$/mo, 50$/mo, and 500$/mo (and maybe a hidden tier for corporate customers that amounts to 1000$/mo on average). Let's assume most of my customers are in the free tier, 95%. The remaining 5% are stratified across 10, 50, 500, and 1000 (maybe following an inverse logarithmic curve because people are allergic to spending money -- -ln(x/1000) + 1). The following scale factors apply to each price tier:
- 1 x 1000/mo - 2 x 500/mo - 4 x 50/mo - 6 x 10/mo
13 customers gets me to 2260/mo, so I'd need about 4 times that many customers to hit ~8000/mo. This comes to about 50 paying customers to hit 100k arr.
And now I need to sort out what I have that 50 people would be willing to pay those various amounts for protracted periods of time.
But what do I have that people want to buy? I can sell my time as a developer working on someone else's product and make about 100k arr. I can build a product -- and I assume most folks on this board are here in this camp, that they want to build something and own it. I could sell information products (ugh) or other kinds of information. What else can I do?
I'm curious how people with multiple launched products that make money managed to discover their original product. Was it an accident? Copious amounts of market research? Cross-industry experience that allowed them to build for non-engineers?