Nathan Barry’s $5k App Challenge: My Seasoned Bootstrappy Advice


I think Nathan Barry is the bee’s knees. He’s been killing it with his info products: The App Design Handbook and Designing Web Applications.

Nathan Barry and His Books

Even before he announced his Web App Challenge, to build an app from scratch that would reach $5,000/mo revenue in 6 mos, I was sure it would only be a matter of time til he turned his hand to a recurring revenue product.

Because once you get that first product dollar in your hot little hand, you’re hooked for life. It’s better than drugs. And subscription income is even better.

There were a few things in Nathan’s App Challenge that set my worrydar a-beeping. This ain’t my first rodeo, as you know. It wasn’t his first rodeo, either, having grossed nearly six figures off his ebook/video packages.

But… there’s just something special about The Next Big Product that makes a person go a lil crazy. (I know, because I’ve been there.)

So I got on the bullhorn (aka Skype) with Nathan and we had a conversation, which he very generously allowed me to reprint here.

We talk about…

  • why doctors, lawyers, indian chiefs sound like great niches but are actually horrible
  • what bootstrapping really means
  • the peril of the white whale project (Second Product Syndrome, to wit)
  • the issues with outsourcing
  • why customer development can be one big tail-chase

I edited our Skype transcript just a tiny bit for length and content, but neither one of us is big on the chitchat so I think you’ll find it very readable (and info-packed!).

Me & Nathan Talking About His App Experiment

NOTE: Nathan is in italics. I’m in regular type.

Amy: So this is the key thing I wanted to warn you against:

“What I do know is that it will be a targeted niche. That may be lawyers, real estate agents, landscapers, insurance agents, construction companies, or pretty much anyone else.” — Nathan’s post

I know Hacker News types think that’s a great list of niches, but it’s actually a really terrible one. You can’t sell to ANY of those people.

Nathan: Okay, do you mean sell online?

At all. Bootstrapping a business is about learning to punch above your weight. The only way to punch above your weight is to use every advantage you have.

Not only do those audiences not buy things, not only are they scattered and incoherent and unprofessional and in many cases incompetent and/or broke… you’re throwing away every advantage you have.

With my existing audience you mean?

Yep.

You’re right… I’m struggling with that. I want to find a painful problem to solve, but haven’t found one in the web design (ish) space.

You have $80k in the bank that says otherwise.

So I wanted to find something really targeted where there was a very painful problem that software could solve.

True.

Targeted is worthless if you can’t find the people or they don’t want to buy. Woo! laser targeted goose eggs!

That $80k in book sales is all one off revenue, short of starting a training membership site, I don’t see how to turn that into recurring revenue.

It took four of us 3 months to build Freckle. You’re not gonna get anywhere on $5k. You will not find customers to invest in the product… unless you do presales, which I doubt you’ll do unless you have confidence the product will be done in a reasonable time frame.

My plan was to do presales. Then do all the design and front-end dev myself.

I’ve never seen anyone do successful presales for a software product, for the record.

[NOTE: Here we are talking about presales as an alternative to substantial customer investment in the product, meaning more than just a few folks signing up for $30 or whatever. At least that's how I interpreted it! I'm not saying I've never seen anyone sign up a handful of customers for a small commitment before shipping.]

That’s good to know.

So I know what position you’re in, believe it or not. It’s easy to take your success for granted and think you have to do bigger and better. Recurring revenue is nice but you’re not in any danger of having to go back to work, it sounds like to me.

No, I’m really not.

If you start chasing down a white whale, you could potentially lose all the momentum you’ve gained.

Actually, recurring revenue is fucking great, but I can’t even begin to imagine being in this biz without being able to develop my own software. Being at the mercy of a flaky freelance developer? Fucking horrible. And make no mistake, they’re all flaky; it’s simple economics.

It’s true. I can even be a flaky freelancer on other projects. I’ve seen it in myself.

I’m working on learning Ruby (I already write my own iPhone apps in Obc-C), but that will take some time.

[a little bit redacted cuz it's insider-y about a third party]

Nathan: So here’s another thought: this gives me all kinds of food for my blog. Posts that will help sell my book. My last two posts have pulled in a lot of sales the last couple days. So this project will grow my brand even more.

IF you have a project. :)

… Not that that is a reason to do it if the main idea still sucks… Right.

Take it from me. I got bored with what I had and decided I had to do something bigger and better. It ended up with me spending 2 years and $200k on something I had to shut down.

Charm?

Yup.

You can still build an app… altho I’d recommend you start with something in between. But if you want to maximize your return, you need to go vertical.

What’s an example of in between?

A friend of mine makes $15k/mo selling an iOS component. Themes, webinars. What’s wrong with a monthly class? We did monthly workshops for a while there and it was great, until the other stuff started making so much money it didn’t make sense and I was tired.

Got it.

Yeah, I’d like to do some classes. Brennan‘s shown me how great they can be for revenue.

The more you teach live, the more you are exposed to people’s problems. People who are willing to pay, and who are already trained to give you money.

Good point. For me software is the ultimate goal, so it seems like a waste of time to delay it. Especially since I have plenty of time and money right now (though I’d rather not burn it up). Maybe I’ll look harder for a product that I could sell to my existing customers/readers.

You’ve shown with Freckle that you can enter a saturated market like time tracking and still do well.

“Saturation” is a load of bullshit :)

Really it just shows the market exists.

It’s more than that. So much more than that. If a million people use Harvest, there’s no way they’re all served well by the same tool. The presence of other products doesn’t just show opportunity, it CREATES opportunity. Because wherever there’s a big biz, there will be lots of dissatisfied customers.

Good point. I hadn’t thought about it like that.

That’s why they pay me the big bucks. ;)

You ought to develop your own software, if you’re determined to do a software biz. Otherwise you will always be at the mercy of somebody else. I don’t know ANYONE… ANYONE… who outsourced their product and made a success out of it. And considering I did freelance development for the past 12 years, that’s saying something special.

Okay. Yeah, that is.

It doesn’t mean you have to do it all.

You don’t think outsourcing could work as a temporary solution? Or is it just building on a house of cards?

You have a kid, right?

Yeah, I do.

In a perfect world, which is better — taking care of your own child, or hiring a full-time nanny?

Taking care of your own kid.

Why?

Because you can raise and care for them in the way you know best.

Yeah. And the nanny won’t love the child the way you do.

Damn. That’s a good analogy.

No freelancer is gonna love your project the way you will. And if you accidentally find one who will, look out, because that will create conflict in the end, because in the end it’s YOUR project, not theirs. But probably what will happen is you run out of money… (your budget, I mean). Then it will grind to a halt. Then, if you haven’t been doing your own dev work, you will be unable to pick it up. Or you’ll have a falling out and need a bug fixed. Or they’ll get busy with a new contract and won’t be available when you need them. Hiring & firing is exhausting, btw.

I’ve had that happen before.

Me too. Over & over. Luckily I wasn’t at their mercy.

You are absolutely right. I’ll buckle down learning Rails.

Good. It’ll be worth the wait.

For a more direct question, what do you think about Dane Maxwell’s approach to finding problems?

I’m not super familiar with it. What does he say?

Basically choose a market and talk to people until you can find a really painful problem they have. Then build a specific solution for that. So get them on the phone and try to find if there are problems (paperwork, or other specific tasks) that can be automated with software.

So, basic customer development.

Right.

I don’t like [pre-/potential] customer interviews.

Because they feed you BS?

Not intentionally. People put in that position, most want to be helpful. They also don’t really pay attention to what they’re doing most of the time.

So what you get is people being too nice, too helpful, too agreeable, too optimitsic about what they’d buy, and how their behaviors might change. Meanwhile they overlook all the really good stuff, most of the time.

IMO, the only way to get good data is to observe without them knowing you’re there… which is why I teach my students to analyze forum threads, blog posts, mailing lists, Twitter.

…[about customer interviews] The goal would be to get them to focus on the problem, and let you work on the solution.

Yeah, but look back over the convo we just had. How many of the problems I surfaced to you were ones you’d already thought of?

If I asked you, “where’s your pain with xyz?” how many would you have come up with?

Not very many. That’s my problem trying to come up with my own ideas for web apps.

I know them because I’m an expert. Not just cuz I went through them myself and am hyper-aware of it, but because I am surrounded by people doing these things all day, and I watch what they DO.

I don’t sit them down and question them.

This is another reason to not target an audience far from your own.

I guess I need to try it some more for myself and see if I can make something of it. Instinctively, I think it will work.

Which?

Interviewing to find a problem that is causing businesses pain. But that’s also where the presale request comes in. Because I need that to validate their opinion. To see if they really mean what they said, or if they were just trying to be helpful and make up things I might be interested in.

Plus I’ll look really hard at markets I can already influence.

Can’t hurt to try.

I suspect what you’ll find is that you won’t be able to get money based on them describing a problem. People don’t have very good imaginations.

[here we talk about a specific pain Nathan came up with that he didn't actually get from customer interviews, but rather observations of himself & others, which turns out to be the one he later picked to move forward with… one that his audience has… one that his mentors could use… and one that impressed me.]

So, I still plan to move forward scouting for problems, but I’ll look especially hard in areas that can serve my existing audience. Right now I don’t want to cancel my challenge, but I really appreciate the feedback. I wish I had talked to you before publishing that post.

I also plan to do some mockups and further research on the [redacted] concept. I think the market that understands how important they are would be willing to pay to get it right.

Note: I never thought it was unsalvageable. Your challenge, I mean.

The main key is to use what you’ve got and not get yourself in a position where you can’t work on your own product.

Good. But I see what you mean. I think I was making it too difficult (without reason).

I’m sure there was a reason somewhere :) I think we all tend to take our success for granted. So we want to move onto something harder.

True. And I do like a good challenge.

Me too… it’s a kind of a sickness sometimes ;)

The other thing I should say is that I have a crazy amount of respect for you and really appreciate your blog posts, training, and especially this conversation.

[Yep, I left this in because I HAVE A GIANT EGO MWAHAHA. J/k.]

My pleasure. It’s always a pleasure to help somebody who helps themselves.

Well, I should get back to my rails tutorials now. Thank you so much for the advice!

Closing notes from me

One thing I forgot to bring up is how long it takes subscription income to pick up. Even if all things go perfectly for Nathan, I highly doubt he’ll be able to get to $5,000/mo in subscription revenue by mid-summer.

But it sounds to me like that part of his experiment isn’t the important part to him, anyway.

If you shoot for $5,000/mo and get to only $3,000/mo… that’s still an extra $36,000 a year you didn’t have before, and subscription income can be grown.

Of course, there’s no such thing as passive income, not even subscription income.

Want more of this? You’ll want to follow me on Twitter or subscribe to this blog via email:

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More from Nathan…

Nathan’s blogging about his challenge, as promised.



4 Years Into Our SaaS: Why Bootstrapping Was the Only Logical Choice


Hey, there. Four years ago this December, my husband & I launched our first software as a service, Freckle Time Tracking. Since then, it’s grossed nearly $700,000, and we’ve grown, shrunk, hired, fired, stagnated and worked our tails off. To celebrate, I’m writing a series of blog posts about what we’ve learned.

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When I was a young girl (8, 9, 10), I became obsessed with money. Mainly because we only intermittently had any, due to severe mismanagement. The words “Because we can’t afford it” ground deep grooves into my daily existence. It weighed over every opportunity, every decision.

So, get-rich-quick schemes were irresistable flames to my little moth of a heart, but… I knew better. I’d fallen for Sea Monkeys, once, and had never forgotten it. Some part of me knew that The Internet Treasure Chest and Stuff Envelopes From Home were just Sea Monkeys in sophisticated clothing.

But every time I saw the promise of riches, it hurt. I knew they were fantasies, I knew my cynicism was the only correct response, so I did nothing but grind my teeth and hurt like hell.

I grew up to be a consultant. A very expensive consultant. Because instead of buying into the fantasy, I read real biz books, and spent my time learning provably profitable skills, and hustled on the side. I wanted money, and I wanted it reliably, and I only trusted it if it was something that I actually worked for.

I worked; I got paid. Life wasn’t giving me a whole lot, so I made it give me more. When I started out, I was charging $10 an hour. By the time I quit consulting, I got paid a lot. (No joke: one of our last gigs worked out to about $500 per hour, per person.)

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I poured my heart into work for my clients and watched them destroy it. I watched my clients go into management death rolls, never shipping the things they spent thousands or tens of thousands or more on… the things I built died inside their stupid and ineffectual bureaucracies. I made my very best suggestions, I educated, I consulted, but in the end, I often ended up having to (metaphorically, though sometimes literally) make the logo bigger. I’d tried every kind of client: cheap, local, sophisticated, ignorant, startup, Fortune 100. Same shit, different day.

(I was even working on a really cool project at the Bear Stearns midtown offices the week before they suddenly ceased to exist. Naturally that project died, like almost every one before it.)

By the time we started to build Freckle, my husband and I had managed to attract clients who listened to us and who actually shipped what we built. (Thanks, Pepsi.) But it didn’t matter in the long run. I was sick of it all. I was 24 years old and burnt out.

So to say control was important to me? Understatement.

Having complete and utter control of the fate of my project was the most important thing to me.

I was so tired, deathly tired, of watching the wrong thing be done. Of projects never shipping. Of fatal compromises. Of fighting management, who were ignoring (or never even considering!) the needs of the user. Of having to use mockups in my portfolio instead of showing people the real app because the real app never lived.

Of having to appease and manage “stakeholders” who couldn’t tell their ass from a very well-spec’d hole in the ground, rather than focusing on what I was actually supposed to be achieving.

And I had enough friends in the startup game to have witnessed that “investor” is just a ritzier name for “stakeholder.”

Here was my mental list of things I’d never have to deal with, if we bootstrapped:

  • being forced to sell
  • being ousted
  • being forced to take on team members we didn’t want
  • being forced to pursue revenue sources at odds with serving our customers (e.g. ads)
  • being forced to work at an acquirer
  • being dilluted
  • having to worry about stifling shit like SEC regulations on what we tweet, blog, or tell our friends
  • managing investors who thought we weren’t growing fast enough, or who wanted to see wireframes and walkthroughs of the product and make changes, or any of that interfering bullshit

Because investors are only your allies in a few very narrow circumstances: if you want to grow big and fast, if you want to sell, if you don’t love your business & don’t care to keep it, if you don’t mind tough legal strictures and placing your business’s value in the hands of the public, if you don’t mind being forced to become an employee again.

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None of the above was an acceptable outcome to me. And, while visions of money bags danced in my eyes — wouldn’t it be nice to be handed a million dollar check! — growing up with money problems made me skeptical.

I’d long since learned that “free” money doesn’t exist, but power imbalances in financial transactions certainly do. And I was tired of being the sucker.

So, funding was never an option I’d even consider.

Bootstrapping was the only approach that would give me what I wanted:

  • independence
  • autonomy
  • disintermediation
  • ability to always do what I believed is right
  • total choice: who to work with, what to work on, when, and how
  • a long-term asset (a company I get to keep forever)

Ownership is the strategy. Bootstrapping is the tactic. Personal sovereignty is the reward.

Phew! OK, that came out more serious than I intended. Well, there are more posts where this one came from. Stick around, follow me on Twitter, for the next post about our marketing strategies over 4 years of stagnation and growth.

Second Installment: Why We Shut Down Charm on the Eve of Public Launch, at $48k/Year and Growing.



Steve.


This is an email I sent to my mailing list a year ago. We miss you, Steve.

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I’ve been following Steve closely for more than a decade. Most folks don’t know this, but I ran a Mac-oriented news & opinion site from 1999 to about 2003. Before that, I was “just” a rabid fan.

It’s not an exaggeration to say that if I hadn’t had a Mac, I wouldn’t be the person I am today. The Mac — thanks to Steve – taught me about how software should be. And how powerful it can be. And how few people are willing to do what it takes to make good on that potential.

During some of the rockiest times in my life, I got to make a (modest) living studying & writing about something that inspired me — the Mac OS.

I was paying attention when Steve came back to Apple, & I watched as everyone (including me) panned everything he did. I was in the crowd at MacWorld Boston in 1997, when Steve gave his first Stevenote. When the giant screen suddenly switched to Bill Gates’ face. When Steve announced the MS investment & patent sharing deal.

I booed.

I thought the iMac was cool — but that it would fail. I thought the iPod was going to fail, too. You’d have thought that by 2007, when the iPhone came out, that I would have learned my lesson. But I hadn’t — not yet. I “knew” that the a touch screen keyboard was less usable and that people wouldn’t want it.

But I was wrong, again.

Steve taught me to be wrong.

He showed me what it’s like to do whatever is necessary to survive AND thrive — when nobody believes in you, when even the “rational” market will not recognize the cash value much less potential value of your work, when even your best customers think you are going to fail.

When absolutely everyone in your industry is against what you’re doing.

Steve taught me that to succeed, you have to start small, think different, and do things that seem counter-intuitive… even distasteful.

Microsoft had always been the enemy. Mac fans like me viewed the struggle as a kind of holy war.

And Steve was smart enough to see exactly how limiting that was. How it locked Apple into reacting to MS, instead of being its own creature.

So he bartered with MS… he changed the game from competition to co-opetition… he secured the support of Apple’s worst enemy, secured vital pieces of software for the Mac… and freed Apple to fulfill its larger destiny, beyond the petty “Apple vs Microsoft” dispute.

Steve was brutal. He axed a lot of products that we all loved, like the Newton. He cut out just about everything: the printers, the scanners, the edu models, the vast panoply of Apple products, and cut Apple down to the barest metal.

And rebuilt it.

He played the long game.

He taught me that it’s not only possible, but incredibly powerful to break the rules. Steve killed serial ports. Steve killed the floppy. Steve killed the PowerPC (as far as Apple was concerned). Steve killed CDs.

Steve has already begun the process of killing optical drives, period.

Steve brought us wireless internet for our homes. Before the AirPort, wireless access points were thousands of dollars. Steve made them $300.

Steve democratized pocket computers, and made them something we’d actually want to buy, and use.

Steve made video chatting something anyone could do.

Steve led the creation of a market for software which led to billions of dollars in revenue for dev shops of all sizes.

And those are just the more well-known stories. He also built NeXT. And grew Pixar into one of the best — and only — studios for telling & selling stories. And without Steve, we wouldn’t have such a modern and gorgeous OS. Building a major operating system practically from scratch was an incredibly risky move.

Plus, what about Safari? Without Apple pushing the envelope, the web would look very different today.

And on and on and on.

Did he do all this single-handedly? Of course not. But that doesn’t matter, does it? Would his lieutenants have done it all without him? No. His fingerprints are all over everything.

I’ve never had a proper in-real-life mentor, so what I’ve learned I’ve learned from reading & watching & analyzing.

And there’s nobody I’ve disagreed with, studied, obsessed over, & benefited from — or learned from, and been inspired by — more than Steve Jobs.

I can’t believe he’s truly gone.

But I am damned if I’m going to let those lessons sit on the shelf, gathering dust.

You might also enjoy The iPad, and the Staggering Work of Obviousness.



Perspective.


Seems like most of my best writing goes to the 30×500 Alumni mailing list these days. Including this little bit below.

One of my brilliant (and particularly sesquipedalian) students was talking about the way that pedestrian thinking tends to exert inexorable drag on humanity:

Wordy Student: Just a zooming out sub specie aeternitatis observation: certain things feel like defying gravity. Ben Franklin’s homilies, Dale Carnegie, Kathy Sierra: If not for reminders and exhortations from the likes of them, people drift into a solipsistic shithole. I can’t imagine this to be the default setting — must be the times.

I used to think that way, too, but I don’t any more.

Is it the times? Nah.

It is the default setting… and it’s not really a bad thing. Think about it:

We are animals who think. We evolved to achieve certain biological goals. Most people don’t need to think big thoughts to survive and reproduce… more importantly, you don’t even need to have big goals / think big thoughts to be a good person, a loving friend and family member, a valuable member of the community.

While some of us love to think big thoughts and do big things, it is the exception and if we’re not careful, it can come at a cost to those other good, valuable, desirable things.

(Which, of course, is a huge reason why I’m a proponent of slow, bootstrapped, ownership- and value-based businesses: they don’t put your biz growth in conflict with your users or your family or your ethics.)

Sometimes I think we smartypantses walk around expecting to be given a delicious cookie by The Universe as reward for thinking deep thoughts and soaring above the teeming masses on fluffy intellectual wings.

There’s no point in deep thinking, though, if it isn’t its own reward, if it isn’t helping us & those we love to be happier.

Maybe it’s better to be Socrates, dissatisfied, than a happy pig in shit, but when it comes to being Smartypants, dissatisfied, as opposed to Perspective Girl, satisfied? I don’t buy it, Mr. Mill.



“Shut Up and Take My Money!” – Or, How to Pitch so People Will Listen


The phrase “Shut up and take my money!” may have come from a cartoon, but it’s not a myth. “Shut Up Money” (SU$ for short!) has happened to me and I’ve watched it happen to my students & my friends. It’s unbelievably life-affirming and awesome, when somebody wants to give you their money even more than you want to take it. It’s an act of faith.

I’d say it’s “magical,” but in fact it’s something that comes from having & applying the right process for pitching.

Yep, you heard me — process for pitching. Having a great product isn’t enough. You can have the best product in the world, but unless would-be customers start drooling when you talk, that best product is worthless.

That’s the power of a good pitch.

Before you read another line, let me admit something up front:

I make pitching mistakes on a daily basis.

It’s sooooo easy to get off on the wrong foot with a pitch, even when you know exactly what you ought to be doing. Here’s a scenario that used to happen to me a lot:

Potential customer at cocktail party: So, what’s Charm?
Me: Charm is a new, end-to-end customer support tool. It solves the problem of passing around email as a specification of work…

Whisssssssstle THUNK poof. This kind of “pitch” is a B-O-M-B bomb.

What’s wrong with this pitch? It’s the kind of thing we all see, and say, day in and day out. But it’s a total flub. Not just stylistically; I’m saying this form of pitch has never gotten me any meaningful action, ever.

There are lots of reasons, but here are the top 3:

  1. Boring as fuck. Charm may legitimately be all these things, but wow, is that boring. Using sexier terms and punchier sentences, however, won’t solve the problem, because…
  2. Too abstract. All those abstract nouns — customer, support, tool, email, specification work. No imagery. But still, swapping out abstraction for concrete nouns won’t really help, because…
  3. Self-absorbed. I responded to the question that was actually asked, not what the customer is interested in.

In short: a total conversation-stopper. There’s nothing for my conversation partner to grab onto for a point of reference; there’s no room for them in what I’m saying.

The thing is, this totally ineffective pitch is what comes naturally. Somebody asks you “What is x?” and the most instinctive thing in the world is to respond “X is…” That’s even what they teach us in school: to answer in complete sentences.

It’s a trap!

This kind of pitch makes eyes glaze over and jaws go slack — it certainly doesn’t motivate anyone to reach for their wallets. And that’s the job of the pitch: to motivate action. Monetary action, or at least tell-me-more! action.

This is not “Shut up and take my money!” territory, folks. Not even close.

I’m telling you this because I’m a pitching expert. That’s how I make my living — off products, and therefore off the act of selling products.

Despite my limp-wristed Charm pitch above, I do know how sell Charm compellingly: Nearly 4,000 people to put down their precious email address for the Charm launch announcement, and famous & influential people (Ryan Singer of 37signals, for one) tweet about the the Charm teaser page because it resonated so strongly for them.

And still the urge to respond “Charm is…” is nearly irresistible.

The best way to conquer it is to remember to keep the focus on the customer. Don’t talk about “my product is,” talk about what the customer is interested in. Talk about a problem the customer has.

Charm Cure Customer Support Fatigue 3

I’ve finally trained myself to ignore the leading question of “What’s Charm” and override the natural response. Now I say…

Potential customer at cocktail party: So, what’s Charm?
Me: Do you get a lot of support email? Yeah, me too. Do you ever have to wait on somebody else to investigate something, or maybe even you, like, a bug or a potential new feature? What do you do with the email then? Wait to respond until you get the answer, leaving the customer dangling? Or maybe you write back and then click “Unarchive” so you can keep it in the inbox to ‘remind’ you?

This is a pitch without a pitch, isn’t it? It’s really a conversation… it’s an opener. And it gets results.

The right people are intrigued by this point. Most of the time, they suffer through this dance a hundred times a day, and they never even thought to question it. So to hear me diagnose it as a serious problem worthy of attention? Their ears perk up so hard you can almost see their neck muscles pop.

The wrong people are clearly disinterested by this opener. Maybe half the time, this strategy gets negative results (“Nope, I don’t know what you’re talking about”) — but that’s valuable, too. Saves us both time and effort, because they’re never going to want Charm.

This isn’t easy.

In fact, it’s really hard. Even I have to ritually sharpen my own saw. When I haven’t prepared and practiced enough, I’ll run my mouth in Complete Sentences, answering the question asked, talking about myself or my product. Take this episode of Patrick McKenzie’s podcast, for example, where I blather on about the history of 30×500 because I didn’t practice enough in advance.

Bad pitching is a terribly hard habit to break, even when you know what you’re supposed to be doing. The cost of success is constant vigilance!

That’s why, when you attend my 30×500 Product Launch Class, you’ll spend 2+ weeks on pitches alone. I have my students write pitch after pitch after pitch, and dissect even more. We do live pitch writing, live pitch critiques, and pile on the exercises & feedback.

And that’s before there’s any product to sell!

Because, once you realize that…

  1. The best product in the world won’t sell without a great pitch
  2. There’s no point in making a product if you can’t sell it
  3. The strength of a pitch must be backed up by the strength of the product

There’s only one conclusion to come to:

Pitch First Development will Save Your Bacon

Wrong: create a product, then figure out how to sell it.
Right: figure out what (& how!) to sell, then create it.

Which makes your mission: Learn how to craft a compelling pitch… then build a product to match it. Pitch First Development.

Work on the pitch — and on your pitching skills — instead of diving ahead and building a product you can’t even sell.

Bootstrapping Design eBook Become the designer your startup needs

So much angst and wasted time would be saved if only everybody followed this path! Take Jarrod Drysdale‘s story, for example — for over a year, he worked hard on a beautifully designed & produced app, Knack, and yet he made only a handful of 1-figure sales (yes, 1-figure — under $10!):

I bootstrapped a web app that no one wanted for a year.

I tried all the tactics from entrepreneurship books and blogs. None of them worked. I couldn’t get users. I had no traffic, no interest, and no sales.

In 30×500, I finally found sound advice. During the class, I learned to start by researching audiences and customers. I learned why most ideas suck and how to have the right kinds of ideas. Now I know how to avoid failure and how to build a product that people will want and buy.

The result is astounding. This time around, I have people asking for my product before it’s finished. I received 2,000 leads within 48 hours of launching a teaser page.

— Jarrod Drysdale, 30×500 alum and author of Bootstrapping Design

Jarrod’s booked over $40,000 in sales of Bootstrapping Design. That’s incredible. But it’s not surprising to me, because he tackled the pitch first, and he came up with one that was so compelling that even his fellow students were shouting,

Shut up and take my money already!

We were critiquing pitches on the alumni list, and Jarrod just wanted feedback from his fellow students. Instead, he got them all hot & bothered they were clamoring to buy. Surprise! Later, his teaser page hit such a nerve that total strangers sent it soaring on a wave of tweets and shares.

Remember, Jarrod didn’t start with pitch greatness. His first, beautiful product totally bombed. And he didn’t rise from the ashes with a smash hit on the very next day.

Here’s how his very first 30×500 pitch went:

Users evaluate a design in 50 milliseconds. After that, conscious opinions solidify and there’s no going back. You need people to take your software seriously. After all, this isn’t a game. This is business. If you launch without a professional design, will people even want to use it? If they do, they certainly won’t pay much. Finding a designer is difficult—and they’re so damn expensive. Cheap design shows. Your app deserves better. You deserve to know all those hours of writing code won’t be wasted when no one buys your product because it’s ugly. What if there was a better way? A way to get advice from a top-notch designer and get design assets that actually work for your unique app? (Not some shitty template.) That’s why I created Jarrod’s Super Duper Product™. Make those first few milliseconds count. Hedge against failure by looking legit. Charge more because your app is beautiful. Save thousands of dollars by not hiring a designer. Start up on the path to success.

Interesting, isn’t it? An intriguing start, a grab bag of tidbits, but nowhere near as powerful as the way he sells Bootstrapping Design — the product it evolved into — today:

You’re building a business, but great design feels out of reach. What if you could design it yourself?

In 30×500, with a lot of sweat, blood & tears and community support, Jarrod learned how to start from first principles: Find a customer. Figure out what they want. Figure out how to sell it. Then build it.

That’s what 30×500 is all about. Pitch First Development, man. It’s the only way to go.

You can learn PFD this winter

30×500 is opening again soon, to help you benefit from the same education, process, and alumni group as Jarrod.

The Winter 2012 class begins November 5th, with a bunch of improvements including an intense bootcamp the weekend of Nov 10th-11th.

Applications open this Friday, the 21st, at 2pm Eastern. The only way to attend is to apply; the only way to apply is if you’re on the announcement list. So if you’re interested, plop your name down, for free goodies and the chance to grab a seat in 30×500 of your very own:

Want to know more? Read all about 30×500 in nauseating detail.

PS — Here’s a student review from James, in the current class: Why bootstrapping is better than an accelerator program. Here’s a student review from Brennan, before he started making any money with what he learned. (Now, of course, he’s doing quite well indeed — that post’s about $2k of sales but he just told me he crossed the $10k mark today.) Noah wrote about his journey to earning his $1,000 in product revenue and 30×500 — Why?.



Why Bootstrapping Is Better than an Accelerator Program


NOTE FROM YOUR EDITOR: Sometimes you get an email that’s so right, that so captures what you’ve been trying to create for years that you just can’t help but dance and squeal with glee. That’s how I felt when I saw this very powerful story on the 30×500 mailing list. I feel honored to help James learn to bootstrap.

Guest Post james jeffers

THIS POST BY: 30×500 alum JAMES JEFFERS

It is almost 2 years to the day that I was accepted, along with a partner, into a technology accelerator program. I’ll make a long story very short — we burned through $20,000 and had nothing to show for it.

I spent a long time beating myself up over the experience. My wife, who was initially leery of my participation since our family would forgo 6 months of income while I worked in the program, kept telling me “Well, at least you learned something.”

Yes, I did learn how NOT to succeed with someone else’s money. But only very recently did I discover I learned something even better. I learned that creating a viable business is not just finding really talented people and adding money. From what I’ve seen, it seems like every venture capitalist believes that that is in fact the magic formula.

I’m sure that approach (great people + money) can produce results. But it’s not a recipe that always works. More often than not, you get what we got — nothing.

Now, of course, I am paying someone else to learn how to create repeatable, learnable methods for creating real, viable businesses. And I mean a business in the most real sense: creating something of value, and trading that value for value. That means, of course, charging money for eliminating pain or helping people with their business.

This approach NEVER occurs to the funded team. They are looking to solve a huge problem by randomly choosing solutions, and then trying like mad to find problems. Which problems are picked are almost always chosen by HiPPO (Highest Paid Person’s Opinion) or cult of personality. Then, of course, there are the slides (or the “deck”) from which you must pitch, pitch, pitch, always hunting for the next round of money to keep going. Working on solving a real problem for real business people? Forget it, you better practice your pitch!

The accelerator doesn’t look for audiences — to them, the whole world is the audience. Gestalt is the community communication. It’s shocking to look back and realize my intuition was true – no one knew what the hell they were doing. Success was as much luck – hitting just the right combination of magical idea and current trend. Showing viable, money making results was not considered important – showing “traction” was.

Did you gain 12000 more users this month? FANTASTIC! Did those users make you any money? “Well, no.” Oh, did they cost you a ton of money? “Well, yes… but look at our traction!” What utter rot!

Don’t ever feel that you are missing something by not being 22, up to your eyeballs in the latest technologies, working 20 hours a day at some hot little startup, mentored by former one-hit-wonder CEOs or slickster VC types.

You know what you should feel like you are missing? Total control over your life, including how and what you work on.

Don’t be in the race to grow big and fast, so you can become like the next human dumping ground. The world doesn’t need another tragedy built on HR orgs and technological fiefdoms. It needs a million more real businesses, creating joy and making money.

“We were taught nothing about how to build a real business.”

AMY: Wow. What was the backstory to this email? What triggered it?

JAMES: Backstory? Not much to say other than my wife was in Slovakia and I was alone late at night, contemplating the fate of the free world. I suppose I was also thinking about my history, where I had been, where I wanted to go. I might have also nipped some brandy.

It just struck me that as wanna-be-entrepreneurs , we put of a lot of time trying to get into that accelerator. And when we were accepted our focus switched from customer discovery to an elaborate game of “find the investor.”

In the meantime, we were taught nothing about how to build a real business [in the accelerator]. The default assumption was that you would just figure it out. No one had a clear method. Every mentor who had done it before had no system for showing how to do it. The people who ran the program (and I remain friends with the director) also had no agenda for showing us how do it.

So, for my purposes, 30×500 was the first place I’d found where not only mindset but specific tactics were taught. And each step was broken down, too.

Should you attend 30×500 this winter?

AMY: If you could give 1 sentence of advice to somebody on the fence about taking 30×500, what would it be?

JAMES: If you want to learn how to create products and sell them, then 30×500 is an excellent place to start. Also, if you are good at bullshitting yourself, 30×500 is a great place to unlearn it.

30×500 reopens this Friday.

This story by James was beautifully timed, but I didn’t ask him to write it; I wasn’t even sniffing around the alumni list trying to get some launch content. Nope. This email, like so many others, was totally unsolicited. To my mind, that makes it even better. There was no external incentive for James to write it. I didn’t promise special favors or even that I’d be grateful.

He wrote it because he felt it.

That’s why I love my job.

A while ago, 30×500 alumni Brennan said that I was the midwife to his business. I helped bring it into the world.

That’s a slightly awkward, messy thing to say. It’s raw. I like it, because you know what else is slightly awkward, messy, and raw? Creating a real business with real income.

And if you’re ready for that — for the slightly awkward, messy, raw reality of stacking the bricks and building your own financial independence from the sweat & blood upwards — and you’re a designer or developer with the skills to create, then you should seriously consider taking 30×500.

If you’re serious about making it happen, I’m serious about helping you.

The only way to enroll in 30×500 this winter is by entering your name & email address right here:

The Details:

Class starts in early November. Admission is $2,450 if you apply early and pay when you’re accepted. Nauseating amounts of detail here.

Doors open this Friday, the 21st. Well, I say “doors open” but I mean “the doors to the application process open.” You have to apply (so I can help you decide if it’s right for you.)

The application process is first-come, first-serve — last time, most of the seats were taken by folks who applied in the first two hours.

So get on the list. I’ll see you in class!



9 Years Ago, 37signals Had No Products…


How the hell did 37signals go from an unknown little consulting company to a bootstrapped product juggernaut?

Below is a video lesson from my 30×500 Product Launch Class which explains how.

It’s called Stacking the Bricks, and it’s a no-nonsense look at how 5 businesses got started, and how they grew and are growing — including a couple famous businesses, a couple nascent ones, and mine.

This video lesson is part reality check, part battlecry, part kick in the pants. It is ruthlessly practical, and it’s an investigation of patterns and systems.

Based on feedback from folks who’ve watched it, I can tell you: It’s worth your time. Make it happen. (And let it load, because it doesn’t stream.)

Watch it now, here, or download it. Rip the audio and listen to it on your commute. Just don’t fave it for later, because we both know that means never.

Click here to download the MOV file

It’s 43 minutes long, and there’s a blip in the audio part way through. (Sorry about that, but it’s too important to get out there, rather than waiting forever to re-record.) Obviously this lesson is about a year old so the relative dates are a little off, but c’est la vie.

MOARRR! Liked this video? You’ll also looove Be Your Own Angel – How to make money happen, a blog post with two more real-life stories of stacking the bricks.

And if you really, really liked that message, then you should ask yourself:

Are You Ready to Make Your First Brick?

If you’re a designer or a developer who dreams of having an independent income made by selling products directly to the people who use them…

…if you’re not sure where to start, or how to get over the problems that have plagued you every time you have started…

… if you’d sleep easier if you knew how to drum up customers before you ever put pencil to paper or code to git…

Then my 30×500 Launch Class may be just the kick in the pants you need.

A huge kick in the pants followed up by sensible, actionable advice and a process (with workbooks! so many workbooks!) you can implement yourself. And, when you join, you get access to a community of nearly 400 alumni as well as your fellow students. Some folks have told me that the alumni group alone is worth the price of admission.

This video is just one of many useful, butt-kicking, inspiring lessons in my 30×500 Product Launch Class… and I’m adding more all the time. This lesson, specifically, is an accompaniment to the heavily action-oriented, workbook-based lessons. 30×500 helps you understand the why as well as implement the how.

The next 30×500 will begin in November; you’ll have to apply, and applications open on Friday, Sept 21st.

The only way to attend 30×500 is to apply — and the only way to apply is to join my mailing list today:

Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

There are only 75 seats available. I’ll be making them available first come, first serve, for those who apply. There are over 1200 people on this mailing list. Not everyone on there is really ready to make that commitment and shell out that cash, but… you do the math :)

Transcript for the Impatient.

I really recommend you watch the video and read the transcript, though. There’s something powerful about listening to a narrative spoken by a real person (aka me!) while looking at pictures which ground the narrative for your eyeballs.

Hello. This is Amy Hoy and you are watching Stacking the Bricks, all about what you should do with your product business. Do you recognize this logo? I bet you do, but I also bet you can’t name the company. Yes, that’s right. It’s 37signals, perhaps the poster child for creating paying products. As their website says, millions of entrepreneurs, freelancers, small businesses and departments inside big organizations rely on their web apps.

Check out all those logos. Check out that really authoritative looking stamp and the customer pictures. Kellogg’s, the WB, National Geographic, the Obama Campaign, Patagonia, USA Today, FOX, Adidas…whoa. Really impressive, right?

They have a bunch of products. They have four main products, four web apps and they have ridiculous numbers of customers. They make so much money that some of their founders are just getting into racing cars, or getting in the news because David bought some expensive car that he can only have in Italy because of the import laws, because it’s just too fast.

They have a lot of money, they have a lot of products. Oh, and they have a couple best selling books, just to add insult to injury. If you look at them and you think, “OK. I want that. I want to be that. I want to go to there,” as Liz Lemon would say. But how do you get there?

Well, we can find out by looking at the past. I like to consider myself a little bit of an Internet historian. I like to go and peruse really old web pages. Well, in this case, this screenshot came from the 37signals website from a long time ago, circa 2003.

That’s right, in 2003 they were like us, they were doing usability reviews and interface design and training and research. They were not just getting started as a consultancy, but they had no products.

Think about that, it’s 2011 right now. Eight years ago, 37signals had no products. It’s been eight years. So how did they get there? Or rather, how did they get here from where they were?

Well, they started off as a consultancy and I’m sure their consultancy grew along the same ways that most of our consultancies grow, growing and changing and doing maybe one high profile project by accident. Then other people go, “Oh, I like your high profile project. Let me hire you so I can tell you what to do, because I don’t know what I’m doing, but you do and I’m going to tell you what to do because that’s what I do, because I’m a client.”

Right. That’s my experience. Anyway, that’s how we got big, inadvertently, almost by accident. Well, let’s see, what did they say?

This is a blog post from December 26th, 2003. Jason Fried is typing out little blog posts the day after Christmas for some reason. He wrote that 2003 was a good year for 37signals. We got back on track after a challenging 2001, 2002, post-bubble season.

That means that they got screwed by the Internet bubble. Right. They weren’t multimillionaires every month because their products were bringing in so much money. They weren’t posting sexy-ass videos of their brand new office and sports cars and stuff for people to consume, because they didn’t have those things.

They launched their first paper book. They launched an express, à la carte design service where you could pay only a few thousand dollars and they would redesign one page of your app or your site. They designed and developed Basecamp over a year, which doesn’t even launch for another month at this point.

They actually thought that it was worth adding to their blog post, they switched from Sprint to Verizon and back to Sprint. This is not the 37Signals we know. They list that they’re doing the Gawker Media CSS XHTML template. What? Yeah. Yeah.

Oh, they designed bulk bagel ordering for Panera, or rather, they restructured it. A bunch of companies you’ve never heard of on this list here.

So, how did they get there? How did they get there? They were about to launch Basecamp. How did they get there?

Well, in 2003, eight years ago almost exactly, so close, Jason Fried would write one line blog posts that would get one comment or two comments and then a bunch of spam comments because these posts have been up there for 11 years. “There are few things more satisfying than being motivated.” Is that the 37Signals blog that we know? No, it is not.

Or, how about this one? 22 January, 2004. They said they were going to launch Basecamp in January 2004, and here they are posting three line, unpunctuated, uncapitalized blog posts about their launch ideas. “Simple project management. It’s not about number stats or charts. It’s about communication for the little guys — freelancers, small shops and remote teams.”

Does that really remind you of their current list of clients? Millions of entrepreneurs, freelancers, small business and departments inside big organizations, all those logos? No. They got there organically.

Here they are struggling. They’re like, “How do we launch this thing? I don’t know, so I’m going to write three lines in a blog post and share it.” You’ll notice they have one comment, and then the REST are spam. Seven comments total. One comment. When they posted this about launching their product, they had one comment. One comment. Hold that in your mind.

How did 37Signals get to where they were as consultancy? Well, among other things, they did the 37Better Project. Now, look at this page. This page is so 2001 it hurts, doesn’t it? Granted, it’s designer-y 2001, but it’s still 2001. Hey look, yellow highlighters.

What 37Signals did was redesign a single page of a whole bunch of different really famous things, like a bank. Not a specific bank, just general online banking, or FedEx, or PayPal, or motor services for car dealerships and stuff.

They didn’t do a whole whitepaper. They didn’t design an entire app. They didn’t write up a report like, “These are our justifications for XYZ.” No, they just did this thing where they redesigned one screen and they got a lot of traffic.

Ever heard of Dustin Curtis? You might know him as the American Airlines redesign guy. Well, Dustin just took a leaf out of the 37Signals playbook. Dustin wasn’t famous before that. Now he is. 37Signals wasn’t famous before they started doing stuff like this, but now they are.

They also shipped another product in January 2003, which they didn’t seem to mention in their year in review post. This was 37Signals’ first paying product as far as I can tell. This was a report on ecommerce usability, specifically search and shopping cart stuff.

You can see that they did reviews of 1-800-FLOWERS, Amazon, The Apple Store, Best Buy, CDW — I don’t even know what that is — Crate & Barrel, Crutchfield, Drugstore, eBay, Finish Line, KB Toys, Lands’ End, L.L. Bean, Macy’s, Mother Nature, PC Mall, Petco, blah, blah, blah, blah.

Now, I remember when this came out and I think that it actually cost about $400, but the page that I found for it that’s still up from 2003, or 2004 lists it as $75. This was quite a few pages, this report. How many pages? Maybe about 100.

Their first product, their first dipping their toe in was a paid whitepaper. A research, review report. It was pretty nice, but this is not like, “Oh, we launched Basecamp and now we’re famous.” No, this is a small product that many agencies could have done, but that they didn’t do.

Before I move on, actually, I’m going to back up for a second. I watched 37Signals launch Basecamp. One of the more useful habits I have is that I consume everything. Looking back on the history of the past 10 years or so, I can name so many major product launches or people who became famous that I was there.

This is not to say it had anything to do with me, or that I’m special because of this. No. But what it has given me is an interesting insight into how people go from nobody to somebody, or how people go from a little consulting agency to the biggest bootstrapped product company that we know of with legions of fan boys and talks at startup school and so on.

In 2003, there was a private beta of Basecamp and they collected people from a designer forum that I was in called YayHooray, which used to be invite only and used to be higher quality than it is now. Jason Fried himself was the one posting about the design of Basecamp. He was in there interacting with people who would be using it, freelancers, designers who worked with project management tools to handle their clients and their review cycles and stuff.

We thought it was cool, but I don’t think any of us ever thought that it would become big like this. It’s different if you know somebody when they’re little, when they’re a kid or when they’re in college, and then a decade later they’re famous and rich. You know what they’re really like. You know where they came from. It removes some of the mystique for you.

Well, that removed the mystique from Basecamp for me. If there’s any company that I’ve copied, it’s 37Signals. If there’s any company that you should consider copying when you want to create products and create a large income or create an independent income, a freedom income, whatever it is that you want, you could do much worse than to copy from 37Signals. They’re pretty much the playbook that we should copy from. And I am so excited to talk about other people who are doing the same thing.

These are people who you will recognize in a few years, and you will say ah, I watched that happen. So I don’t know how to say Marc-Andre’s last name. So I’m not going to try. But Marc-Andre is someone who is rising in the ranks. As he says, he created Thin, Tiny.rb. He wrote a book and sold a few sites. And now I’m making a living online teaching rails and making things.

That’s very simple. He started with this. Create Your Own Programming Language. Do you remember when this launched? I remember some people thinking that it was a scam on Hacker News. People were like uh, is it a scam? What do you mean, is it a scam? It’s an ebook with screencasts and code samples. How could this be a scam?

People were skeptical. People were like I don’t know. It’s on the Internet. It’s by a programmer, and it costs money. How could it possibly be real? And yet, of course, it was. And the secret is that Marc-Andre made a lot of money doing this. Maybe not enough money by itself to quit his job, but enough to significantly push him that way.

And then he did. And now he’s doing training. He’s got an Owning Rails workshop. The ultimate online class. Total ownage of the Ruby on Rails framework. And he’s launching a new ebook. This is a mini ebook that he’s giving away for free. But you can…I can guarantee you that it’s going to turn into some other product.

Another product that he’s working on, Rails themes, ready to use and deploy. Now where is Marc-Andre come from? You know based on this screenshot here, of his bio, that he started off making open source, and then he wrote a book and did a screencast. And now he’s doing a workshop, and now he’s writing another book, and now he’s doing this other product.

Very cool. Well, I’ve emailed back and forth with Marc-Andre a little bit, and I hope he doesn’t mind me sharing this email. First of all, he’s saying nice things about me, which is always a good way to get somebody to help you. And the second part is he was wondering if I would be interested in being an affiliate and helping him launch his first workshop.

Well, this was when I was feeling very sick, and leading up to surgery, so I really didn’t respond in any kind of timely fashion. Then when I did write back, a week later, he said, I can’t even believe this yet, but I already sold half the tickets in 24 hours. Yes. He was worried. He was reaching out to people. He wanted to have help, and then he turned around and sold half out anyway.

He said that it’s largely due to one of his affiliates, Peter Cooper, who of course runs a bunch of newsletters and Ruby and JavaScript website, but nevertheless, I bet Marc-Andre could have done it himself. He’s developed a reputation. People love to Create Your Own Programming Language. People love his open source work. He could have done it himself.

And now he’s going on to bigger and bigger things, and he’s doing it full time on his own, and that’s so cool. He said I recently decided to quit my job to focus full-time on my products. And he says also that he’s been selling his ebook and a few other small stuffs for a couple years. He didn’t come out of nowhere. Not really.

He started somewhere, and he kept building, and he kept building. Now how about this guy? Do you know Peepcode? Have you ever bought Peepcode? Well, a Peepcode screencast or a Peepcode book. Peepcode is pretty much everywhere. And I think everyone considers it the absolute best source of JavaScript and Ruby, especially, Rails screencasts.

Whether it’s about RSpec or rests or backbone or get, Peepcode’s got it covered. Well, Peepcode is mostly one dude named Geoff. Now where did Geoff start? Well, perhaps we say when did Geoff start? Geoff got into Rails pretty early. You can see his first blog posts giving away a library, a graphing library for Ruby, was July 2005. And this was his first Ruby-related blog post. He created a website called Newbie on Ruby, Newbie spelled funny.

And then later on he started the Rails podcasts, and I was one of the first guests, because I was releasing stuff at this time. And then he kept doing tutorials for free. You could see he had spark lines tutorials, spark line speech, podcasts, a typo theming tutorial posted about the Rails pluralizer, so on, and so forth.

They started in 2005. Six years ago. And then in February 10, 2006, six or eight months later, he did a Carson workshop. He did his own workshop somewhere before this. I couldn’t find the exact date. And then he got invited to do a Carson workshop. The Carson workshop invitation didn’t come out of nowhere. He’d been writing tutorials and posting open source libraries and writing about stuff and teaching for some time at this point.

So you can see in October and September, he’s been doing more and more stuff. And then a workshop, and then another workshop. And then where did he go? Well, check this out. Here’s another screenshot of his archives. I love that he has it all in one page, so I can just screenshot it and move up the timeline. In August 2006, over a year after his first blog post about Ruby, Geoff launched Peepcode.

Now, the thing about Peepcode was that it was supposed to be one screenshot…one screencast a month. He was doing it on…by himself. And that was his first paying product. In October 2006, he released this awesome cheat sheet, and I think he got the idea from my cheat sheets, which is probably part of the reason we’ve been friends.

To promote his REST screencasts, you could October 2006, this cool cheat sheet has all the REST stuff. REST was super hot, yet confusing at this time. And then there in the top right, there’s the big badge logo, the bright pink. The REST screencast, nine dollars at peepcode.com, 85 minutes of restful goodness. And this really launched…this really launched Geoff.

And he grew, and he got other people to make screencasts, and he hired his wife, and he grew some more, and he…more and more screencasts. And then he started doing ebooks. And then I convinced him to raise his rates last year, raise his prices, and on and on. Geoff did not start from nowhere. Geoff did not start a screencast…a successful screencast company from nowhere.

For the longest time, he did one screencast a month. Everybody could do one screencast a month. This dude did, and he started blogging in July, 2005. And now, in 2011, he has an extremely lucrative business. He’s kept it small on purpose, but if you’ve seen Geoff at one conference and then another conference and then another conference, you’ll notice that Geoff obviously has the money to continue flying and traveling to these conferences to promote his business, and that’s because his business makes pretty good money.

But these people, they’re both pretty far along, aren’t they? They’re people you know about, so you think, OK, well they’re famous. Well, what about this company? Have you ever heard of it? No? You will soon. Little Stream Software is a consulting business that’s focused around Redmine, and now the new Redmine offshoot which I believe is called Chili Project.

Little Stream Software is basically this guy. This is Eric Davis who is a 30×500 alumni. Actually, he attended my very first year of Hustle workshop call, which was three and a half hours of just talking about business stuff that I learned. He then joined the entire year of Hustle class which followed, and has basically taken the course over and over again and been an extreme help on the mailing list this time around. Great guy.

I’d love to see him applying what I’ve been teaching because if you know Eric at all, you know that this is his first ebook, $39, and he’s reported recently that he’s made a solid, what was it, six or seven thousand dollars off it. And now that he’s marketing it some more, it’s selling some more.

And this book, this ebook, is just a compilation of his blog posts. He had a regular blog post series about refactoring Redmine since he’s one of the core contributors, and apparently the code was pretty bad to start with. He had his regular blog post series, and he edited them all together and made them flow and he sold quite a lot of copies with, I’ll be honest, sort of so-so marketing effort.

And I think he would tell you the same thing, because the other day he wrote me. He said, “Hey, so it turns out when I market more, I sell more.” I’m like, yep! Because when you learn that lesson the first time, it doesn’t matter how many times people have told you. When you learn it for yourself, it’s amazing.

So, now he’s marketing it more. He recently did an interview, with Marc-Andre actually, and Marc-Andre asked him, “What have you learned?” And Eric was talking about how he realized later that people think that this book is a Redmine book because the title “Refactoring Redmine.” It’s actually a Ruby refactoring book, and he said that he learned a lot by producing this book and noticing the mistakes.

He’s actually turning what he’s learned from launching this book, the failure perhaps. People expected a Redmine book and it’s not, and so he’s turning that actually into another product. Oh, and check this out. Speaking of his marketing efforts, he’s one of them right now. A free nine days Rails Control and Refactoring email course. Pretty cool.

Because he realized people were really excited to buy a Redmine book and not so excited when it turned out it was a refactoring book, he’s making a Redmine book. So, his shipping of his first product actually led directly to his creation of a second product. And he’s actually putting this up for preorder. It’s not done yet and he’s selling copies. How cool is that?

And Eric also has purchased the rights to this ebook, which is really originally written by Jeremy McConnolly who wrote…I don’t even remember what his original book was on, but he made $40,000 off his technical ebook. And Jeremy McConnolly was not particularly famous either. Moderately well known, perhaps.

So, Jeremy didn’t want to run this project anymore, so he sold it to Eric, and Eric is continuing to expand his information publishing empire. And this guy, Eric, didn’t have any products a year ago. He didn’t have any products a year ago. When he attended my Hustle call, that was, gee, what year was that? My sense of chronology is not so good. Let’s see. So, in December 2009…No, that can’t be right. [laughs] Pardon me.

Anyway, let’s see. [reading] Year of Hustle was spring…I’m just confused. Not last year, but the year before. So, a year and a half ago, he had no products. Sorry about that. I should prepare better. And now he has three products. He has one product that’s out and that’s sold pretty well for a very first product. Several thousand dollars in sales. Not bad, especially considering he admitted himself that his marketing efforts were only so-so until now.

A new product that’s coming out that he’s pre-selling, and a third product that he acquired and he’s updating. Pretty great, right?

Well, let me tell you another story. This, of course, is a screenshot of my company home page, Slash7. How did I get involved in this business? If you follow me on Twitter or you’re on my mailing list, you probably think, oh God, Amy has, like, 80 million products all the time. But that wasn’t the way that it was.

My entry into this world started in December 2004, when I started to learn Rails. This is all related to me finding Basecamp, and then ignoring Basecamp for a while because I didn’t have a use for it, and then hearing about this new programming technology that was used to build Basecamp because, I don’t know if you remember this, but 37signals released their Building of Basecamp for free on the Internet and posted a lot about Ruby on Rails the very beginning.

I was like, oh. I saw the controller code and I fell in love. So, I started to write about it and I wrote my very first tutorial on January 24th, 2005. And this sort of rocketed me to moderate fame [laughs] in this tiny niche of Ruby on Rails, because there were so little out there and because I did a ping back on one of the popular tutorials.

So, 2005. Six years ago. And then I did some cheat sheets. This is my first one. You can tell it’s not very good and I didn’t finish it, because I didn’t understand what was going on in the test directory at that time. It’s not very good, right? It doesn’t look like an Amy Hoy production, does it?

Well, my next one got fancier. Then I got invited to do a workshop for free for charity by a guy named Jeff Casimir, and now Jeff and I are friends, and actually Jeff would be great for this presentation because he also launched his own business, and this was the beginning of it. Jeff was a teacher at the time, and now we runs a training business.

This was in…Let’s see. June 16th, 2006. So, five years ago almost exactly. I did this free sort of hamfisted workshop with Ezra Zygmuntowicz and Jeff. So, that’s five years ago. Then three years ago almost we launched our very first product, Freckle. So, from my very first Rails tutorial, January 2005, to my very first product, 2008, was three years. Sorry. Four years at this point, because it’s December, from January to December. Four years.

But even then the course was not nearly as smooth as it looks like. I started off with a couple Rails tutorials, and it led to cheat sheets which led to the Workshop for Good, which indirectly, years later, led to the JavaScript workshop in D.C. because my friend Jeff and his wife Meg came and visited us in Vienna right before their baby was born. Their last trip together before having a family, and we were complaining about something or other. The price someone offered to pay us to do a JavaScript workshop, and Jeff was like, well why don’t you do it with me?

So, that led to our workshop in D.C., which was run by Jeff. Our very first workshop together, me and Thomas, and honestly looking back on it now it was kind of embarrassing, and that led to the workshop in Berlin which we put on by ourselves. And that led to a workshop paid for by Nokia in Tampere [Finland, a corporate workshop, our first one, which led to several other corporate workshops. Then we did our own workshop in Vienna.

Then we did one in Philly, and then we got sick of arranging locations and renting and trying to get people to buy tickets soon enough that they could buy flights to come and blah-blah-blah, and so we did an Internet version. And that changed a lot of things, and that led to our [internet] workshop, but during this time also my tutorials and cheat sheets had led to several failed book contracts. Three, actually. One for Pragmatic Programmers, one for O’Reilly, and actually the third one was unrelated

And those failed books and the work we were doing in consulting led to the JavaScript Performance ebook, which again, connected to the JavaScript workshop because the Performance ebook came first. Then the workshop came second because we found out people actually needed to learn JavaScript.

Meanwhile, doing my Workshop for Good actually led, in a lot of ways, to me to have the confidence to submit for an OSCON workshop on JavaScript, which was related to my failed JavaScript book for O’Reilly. And in there, doing the consulting work led to absolute hatred of all the tools that we had to use, which led me to design Freckle, and using Freckle and doing customer support made me all those tools, which led to me designing Charm.

As you can see, it’s all connected. And this isn’t all. All of this led to the creation of Year of Hustle call, the three hour teleconference, and that led to the Year of Hustle workshop/class, which lasted several months, and that led to the 30×500, and that led to the class software that I’m having developed, that I designed to run my online classes.

More and more and more leads to each other. I couldn’t have jumped from tutorials to having a JavaScript workshop, or tutorials to 30×500, or even from tutorials to writing the ebook on JavaScript performance. And that’s what I mean by stacking the bricks.

When we get started, we thinking that somehow there’s a clear, straight path from where we start to millions of entrepreneurs, free lancers, small businesses, and departments inside big organizations relying on our web apps. We think we can go from a lowly peons to rich and famous, and if we can’t, do that in a straight line, that either there’s something wrong with us that we can’t do it, or that there’s something that we should hate in the people that do do it. People who go from zero to hero, we’re like, whoa, fame is bad because blah-blah-blah-blah-blah.

They went from straight blah-blah-blah, marketing is evil blah-blah. Well, that’s really unproductive thinking, because if you’ve ever known somebody before they got famous, then you know that it’s never just overnight. There’s always so much more. It’s an iceberg, or a duck. You see the tip of the iceberg and you know that there’s 90 percent more iceberg under the water. Or you look at a duck. Calm on the surface, paddling like hell underneath, and occasionally diving down for some seaweed and sticking its butt in the air.

I’ve been lucky, I guess, fortunate to meet people when they were “lowly peons,” before they became rich and famous or successful. I’ve watched the process. Take the GitHub guys. They asked me to design their first product, which even at the time I knew wasn’t going to succeed, and I was too nice to say it, so I quoted them a large price so they wouldn’t end up wasting their money on me.

Or Shopify. I was approached to design Shopify for a percentage. I said, “I really need the cash right now, and I can’t do it,” because of course, people were approaching me with start-up ideas for equity all of the time. Boy, do I kick myself over that one!

Or Kickstarter. I was invited to design Kickstarter, and I really didn’t think it was going to go anywhere.

Or let’s see, what else? The Gilt Group. I fumbled that one.

Gary Vaynerchuk. Somebody who I consider a friend. I did a lot of work for him before you ever heard of him. Watched his rise from a guy who put out this crazy wine show once a day to you know, hundreds of viewers, to someone who can hit the best-seller list with basically anything that he would care to write.

Now he’s a social media marketing guy, and like, real social media marketing, and customer service expert, and all of this stuff. I knew him when he still worked at Wine Library, the actual business. We worked there, and we came there, and we sat in offices stacked high with boxes and paperwork under nasty fluorescent lights, and we worked on software for Gary.

I’ve been able to see that this graph here from lowly peon to rich and famous is a lie. There are 80 million twists and turns in this story, from one to the other, and a lot, a lot of work, and a lot of side trips, which you don’t know about.

Yet, we think that we can just sit down and start building, and at the end of our building efforts, we will have something amazing and perfect and finished, like I don’t know, St. Basil’s Cathedral, which is awesome looking.

We never consider, “Well, how do we get started? How do we get there?” Well, a journey of a thousand miles begins with a single step, allegedly Confucius has said. Something like St. Basil’s Cathedrals requires that you start with single bricks. You have to start with a single brick.

You have your one brick, and you’re like, “Wow, I have a brick. What can I do with this? It’s a fucking brick. Nothing. I can use it as a paperweight, or a door stop, or maybe I can hit somebody in the head with it.”

Then if you keep working, you get a second brick. Then another brick. You keep working, and you keep hustling, and you keep working, and suddenly you have a big pile of bricks. You have a lot of building material. Then you’re like, “Ah! Now I have enough bricks! I can do something with these bricks!”

You grab your trowel, you grab your grout, and you start the work of laying those bricks together into a cohesive thing.

You take all of the different things you worked on and you start putting them together and gluing them together in cohesive framework. Then you have a wall and people will walk by your wall and say, “That dude has a wall.”

They won’t say, “Gee, I wonder how he collected all those bricks to build that wall.” They will just look at that and they will think, “Huh, millions of customers. I want that,” or “Millions of customers, they don’t deserve that,” or “Gee, I should be able to do that tomorrow. If I just get the formula right, I can create a product and suddenly that will happen to me.” But that’s not the way it works.

But there is good news. When you start with a single brick, then you want to make it two bricks, you’re not starting over. Each brick leads to more bricks. Because every time you create or acquire a brick in some way, you’re gathering up courage. You realized, “Hey, I built this brick for brick and nothing happened to me that was bad. It was OK, I’m not longer afraid.”

You have experience that you can draw on. Now you know how to make a brick, acquire a brick. You have knowledge that you can draw on.

For example, think about when Eric realized that he gave his first ebook or a poor title. He could have said, “Oh, woe is me. I failed.” Instead he said, “Oh, well this gives me some interesting insights I can use to sell my next ebook. People really thought it was a Redmine book, but it wasn’t. So gee, I’ll make a Redmine book.”

It gives you connections. Don’t you think that Marc-Andre had an advantage because of all of the work he put into Open Source when he started selling his ebook. It wasn’t an enormous advantage, people still thought it was a scam. But he had an advantage.

Then, once he sold one ebook to people, don’t you think they’re more likely to take one of his workshops or recommend his workshop or buy his next book. Hell yeah.

What about Geoff? Geoff started blogging in 2005 and he started releasing little bits of Open Source here and there. People trusted him and he used that to begin selling products. It doesn’t meant that he had an easy time, that it was all swinging by the hand in a field of daisies.

It took a long time for him to build up his company, but he had help. With every screen cast he released, his reputation grew, people’s trust grew.

You build a customer base too, when you release any kind of product or tutorial or goodie. People buy from you once, assuming you don’t terribly disappoint them the chances are very good that they’ll buy from you again.

The people who came to my “Year of Hustle” workshop call, almost all of them attended the “Year of Hustle” class, even though it was four times the cost.

Many times, people attend one of our JavaScript workshops, and then end up attending the other JavaScript workshop, and quite a few of you have even attended my 30×500 Launch Class, even though they’re not really related.

When we emailed the list of customers who bought our JavaScript performance ebook about our new workshop product, the HTML5 Mobile Pro downloadable version, they went nuts over it. We sold like, $4,000 worth right away. People who had bought from us, and then they wanted to buy from us again. We gave them that opportunity, and they were excited.

Finally, one of the top six things you get from having one brick and then another is raw material. From the consulting, Thomas came up with the concept for the performance ebook, and he even had a lot of data that we then repurposed into an ebook. Then from that, we actually made a performance workshop for the guys in the Finland, they paid us extra.

Then from that, we expanded our JavaScript Master class, and from the JavaScript Master class and Thomas’ other consulting work and stuff we were doing on ourselves, we realized HTML5 is big for mobile devices. It’s big, it’s exciting, people don’t know how to use it, we’ll teach them. Then we made this workshop.

Now that we don’t have time to teach live workshops four days a month, we’ve turned one of those workshops into a downloadable product.

We get raw material, everything we create, everything we do, feeds into the other things that we do. This isn’t true when you’re employed, but it is true when you run your own business. You don’t need to be brilliant to architect it this way, you just need to have a little bit of savvy, and to work with what you’ve already got.

That is the bottom line. That is what it means to stack the bricks. As far as the grout goes, what you need is discipline, and the willingness to put it all together, and the willingness to email the people who bought your other ebook and say, “Hey! We have a new product you might like. Here’s a big discount because you’re a loyal customer.”

You need to be continually working on stuff. Keep moving forward. Not buying into the idea that if only you come up with a great idea, suddenly you’ll be a millionaire. Someone will buy your company, you’ll have millions of users. It doesn’t work that way. What works is stacking the bricks. Brick by brick. Then all of the bricks and the wall and the thing you build are yours.

Additionally, when you build your business this way, you get money. The money cannot be underestimated for keeping things going forward. Thomas and I use our workshops to fund the development of Charm. Charm is going to launch at the end of August 2011, so very soon now. We’ve paid people to help us grow based on the things we were already doing.

[NOTE: Charm did soft-launch in Aug 2011, but we decided it needed more work and our staffing situation required a total overhaul. Charm is ACTUALLY about to launch now. Yeah, I learned my lesson. Another story I'll tell you about in 30x500.]

Every brick that you get, that you make, that you stack, that you let feed into each other in this ever growing cycle of virtuousness also expands your freedom as well as your power. Then you can hire help, or buy more bricks.

Then if you keep at it for a long time, you can build your cathedral. So, the question becomes, “What’s your first brick?”

Are You Ready to Stack Your First Brick?

I mentioned 30×500 above, but just in case you missed it:

The next 30×500 will begin in November; you’ll have to apply, and applications open on Friday, Sept 21st.

The only way to attend 30×500 is to apply — and the only way to apply is to join my mailing list today:

Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

There are only 75 seats available. I’ll be making them available first come, first serve, for those who apply. There are over 1200 people on this mailing list. Not everyone on there is really ready to make that commitment and shell out that cash, but… you do the math :)

See you in class!



Why You Gotta Apply for 30×500 & Why You Should LOVE it



SoooOoooo.

I put together a little video for ya, all about the 30×500 application process. If you’re planning to apply, you should definitely watch it. For starters, it gives you a lil taste of the Amy Universe. And who doesn’t want that?

Also… inside, I spell out exactly why you have to apply (hint: I’m terribly selfish), and why my character flaw is awesome for you.

Finally, if you wanted the nitty gritty inside details of how the application process works (do you have to dance? sing? do me favors? buy me pineapple jalapeño margaritas?), this video is for you.

Lastly, you’ll hear a very compelling reason for you to prep in advance and apply at your very first chance.

Applications open on:

Friday the 21st, 2pm Eastern

View this time in other time zones.

The only way to apply to 30×500 is if you put your name on my announcement list! Do that right here:


Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

You wanna prep in advance? I like your style! Here are the questions you’ll face.

See ya in class!



Be Your Own Angel – How to Make Money Happen


Let’s talk about money, baby! And where money comes from.

Whether it’s funding or acquihires, angels or convertible notes, debt or income, money is the topic we all looooove to talk about (and pretend not to care about).

Lemme be straight with you: I love me some money. And I don’t mind admitting it.

NewImage

Growing up, I lived in what should have been a firmly middle-class household, but somebody (not me) was terrible at managing money. Sure, we had a computer and internet access (yay!) but new clothes were an incredible and rare treat, car problems were financial disasters, and our power and telephone service got turned off on a semi-regular basis.

“We can’t afford” was a phrase that was ground into my brain. There were grooves. It took me a long time to get over it, and it gave me all kinds of complexes.

Today, thanks to my products, I get to enjoy the luxury of having a financial cushion big enough to buy a new car… in cash. (A fancyish new car — or 2 to 3 Toyota Yarises!) I love the sheer relief it brings to be able to wave away financial problems such as sudden repairs, unexpected bills, even the cost of same-day hotel dry-cleaning and airline upgrades… or falling in love with a one-of-a-kind piece of art on a trip. Whatever, it’s only money. No worries.

(The extra buying power is fantastic, but not worrying is the greatest luxury of all.)

The size of my cushion isn’t what gives me that relaxed attitude, though. No, I’ve known many who had greater annual incomes (personal income), with more money in the bank, who were nevertheless fearful and anxious. Always hawk-eyed, watching for the tiniest bit of excess. Nope, that cheerful, relaxed attitude isn’t about sheer volume of cash.

The root of my financial chillaxing is this simple fact:

Whatever happens to my finances, I know I can make more money whenever I want.

No shit, this is an actual fact, one I’ve proven to myself over & over through the past 4 years of product empire building. (And before that, it came in a flavor of I can get another job whenever I want, which was also a source of relief, although not nearly so empowering.)

Probably this makes me sound like a glib douchebag, but that’s a risk I’m willing to take, because sharing this shift is important to me:

Nothing makes me happier than helping other people learn this way of looking at the world. And watching them make it happen.

My hope is that you’ll read this little essay today and be inspired to figure out how you can get a little of that attitude for yourself.

A Real-Life Illustration: Hello, Last Minute Ireland!

Last year, we missed out on Funconf in Dublin. This year — the last Funconf ever! — I told myself there was no way in hell I’d miss it. But, having dropped over $130,000 for a mortgage down payment just a month before, our financial cushion wasn’t as robust and hearty as I like it. And at 999€ (times two!) for the conf tickets alone, it wasn’t a tiny expense.

Funconf III  2012

My husband, Thomas, is the cautious one. “We don’t have the money,” he said. I answered him: “What are you talking about? We can make the money.”

And so we did.

We took a two-fold approach:

We made the trip happen… without dipping into our cushion.

We’re talking over $5,000 in a matter of days, dear reader. My email to the mailing list alone brought in over $2,500 of new sales.

That is the true power of assets, conceived and properly deployed. That’s the power of what I like to call True Wealth. Like a relaxed attitude about money, True Wealth isn’t about the cash: it’s a combination of knowledge, skills, process, assets… and gumption.

meaning-of-wealth-lamborghini.png

Um, but Amy, you and Thomas are… special

It’s easy for me because I’m famous. Right?

First off, I really wouldn’t say I’m famous. Slightly internet famous in a few narrow circles, maybe. Thomas, my husband, is pretty damn hot in JavaScript land but without careful tending of his public image, even his star power is slightly tarnished.

Even so, I hear this a lot: “Well, you’re famous.” “If I had 10,000 Twitter followers like you do, I could do it, too.”

Bzzzt. Untrue, my friends. Lots of famous people can’t sell a damn thing. And lots of totally un-famous people sell lots. (Psst: I wrote a blog post about this very topic.)

Which brings us to my next story, about my student, Brennan Dunn.

Another Story: Brennan’s Last Minute Ireland!

Now, Brennan isn’t famous at all, by any stretch of the imagination. Under a thousand Twitter followers (and most of those are recent), triple digit RSS subscriber count, and no name recognition. What little fame he has, in fact, is brand new.

And that’s not stopping him one bit. To the contrary!

Brennan took my 30×500 Product Launch Class last summer, and he really put his blood, sweat & tears into it. His first product ever, Planscope, is making $3,200 a month now — and growing nearly 10% month over month.

If he can keep that rate of growth up (and he’s a marketing machine, so I know he can), Planscope will be bringing in over $120,000 a year in revenue for him when it’ll be 20 months old. That’s the power of compound growth: it seems slow, but boy does it really add up. (Planscope is even growing faster than our first app, Freckle, did!)

Obviously, as Brennan’s teacher, this makes me super proud. And it’s especially awesome when you consider that he’s only part-time on Planscope right now.

Because right now, $3,200 a month isn’t enough for him to quit consulting. So when it came to Funconf, Brennan was thinking like my husband, Thomas.

Brennan wanted to go to Funconf, too — but, after a lengthy vacation and unexpected medical bills, he found himself thinking, “We don’t have the money.”

To me, that sounded like a challenge. And call it a personality flaw, but I find it harrrrrd to resist a challenge.

So I sneak attacked him.

While we were chatting about something completely different, I dropped a subtle bomb into the conversation, talking about our plan to pay for Funconf:

Amy Hoy: the upside of having a mixture of products is we can do a sale on the infoproducts to raise some cash
Amy Hoy: which is sthg I wanted to talk to you about
Amy Hoy: you’re obviously going balls to the wall on Planscope, but have you thought about doing an infoproduct for a cash infusion?

The thing about Brennan is he never needs telling twice. He took the idea and ran with it.

Brennan realized that he had:

  1. experiences he could share & teach
  2. a process for coming up with profitable product ideas
  3. an audience (Planscope customers) to learn from & reach out to
  4. the skills to write a persuasive sales pitch
  5. the confidence to choose a value-based price
  6. the tools & techniques for launching

And so he made a bet with his wife. As he told me,

Brennan Dunn: but my bet with her was, “If I can make enough to cover the flight and ticket between now and then on something new, can I go?”
Brennan Dunn: I think she probably didn’t believe me, and ended up accepting the bet 
Brennan Dunn: because $4-5k in 2 weeks on something brand new didn’t seem very plausible to her (i.e. I’m not even close to that with planscope and it’s been like 9 months)

Mrs Dunn was right to doubt, don’t you think? It doesn’t sound very plausible, does it? Oh yeah, did I forget to mention that this was just a couple weeks before the conference itself? No way, man.

And yet.

Brennan took his assets & process & skills — items 1 through 6 — and he whipped up a pitch that’d appeal to the audience he already had (Planscope customers), based on what he’d learned from interacting with them (they have lots of problems; pricing is a big one).

He turned that pitch into a simple page to pre-sell the product: a short little ebook workbook. He called it Double Your Freelancing Rate:

Double Your Freelancing Rate in 14 Days

He gave it an ambitious, value-based price. (After all of us in the 30×500 alumni group nudged him to charge more.) He promoted it to his existing audience. He tweeted. He got retweeted. He wrote one blog post about the book — then another, meta post. He contacted leaders, got interviews and links…

And that little ebook brought in $6,000 in pre-sales alone. Before he wrote it.

Ladies and gentlemen, Brennan went to Funconf. We all had a great time. And last Monday, he shipped the finished version, to rave reviews.

This Isn’t a Story about Conference Tickets

This story is about more than a trip to Dublin and a crazy conference. That’s just the way it begins.

Once you realize you can “make money happen,” once you’ve proven to yourself that it works… what else changes?

What happens when you stop thinking of money as something that happens to you, and start thinking of how you could happen to money?

Could you use this technique to quit your job, or quit consulting, months sooner? To take a sabbatical? To fund the development of a bootstrapped product, to give you runway without investment?

I’ve done all of the above.

It’s like being your own angel investor. Only there’s nobody riding your ass… and you get to maintain full control and 100% ownership.

I’ve used the Be Your Own Angel approach over & over to do the seemingly impossible. Without BYOA, we couldn’t have funded the development of Charm, or taken months off to handle Thomas’ immigration and our international move. I couldn’t have quit consulting when I did.

That’s power.

And it’s not power that’s unique to me. Brennan isn’t famous… not even among freelancer circles. He is well-equipped, dedicated, and savvy.

If you’re dedicated and savvy, you could BYOA too.

How’d Brennan get this way?

I certainly can’t claim credit for Brennan being a savvy go-getter. I also have nothing to do with his ability to teach people how to raise their freelance rates (he created a booming consultancy before I ever entered the picture).

But of this list of the experience, skills, process, & tools he used to create that windfall:

  1. experiences he could share & teach
  2. a process for coming up with profitable product ideas
  3. an audience (Planscope customers) to learn from & reach out to
  4. the skills to write a persuasive sales pitch
  5. the confidence to choose a value-based price
  6. the tools & techniques for launching

Items 2 through 6 were things he learned, built, & honed in my class, 30×500, the product launch class. Plus, as he said to me last night, “You definitely kicked my ass in the right direction.” (A thing I love to do!)

Amy Hoy: so how does it feel now to know that you have the ability to “make money happen” when you want?
Brennan Dunn: it’s liberating, and addicting
Brennan Dunn: liberating because, unlike with a “job” or even putting all my eggs into a single SaaS basket, I’m in complete control of growth.
Brennan Dunn: like, I could survey enough of the new audience to figure out what I have to offer them next (i.e. the freelance -> consultancy course)
Brennan Dunn: and deliver more value for more money, filling my pockets and filling their heads

Isn’t this the best virtuous cycle ever? If this sounds like the kind of addictive habit you’d like to craft for yourself, then 30×500 can help you, too.

30×500: Product Launch Class

30×500 is a class I’ve been teaching for over 2 years. The goal is simple:

Help you learn how to think & act like Brennan in the story above. To recognize the value you bring to the table; to spot opportunities, and pounce on them; to look at the world in a different (more actionable!) way; to learn how to sell things before they’re made, to preserve your precious time; to market, to sell, to ship.

It’s true, I love the financial freedom & security that my product business gives me. I love hearing from happy Freckle and Charm customers. I love having an impact; getting to do a million different things; knowing that nobody could ever fire me, or change my work against my will.

But what I really, really love is this:

Watching my students kick ass in the 30×500 Product Launch Class. Watching them learn what I’ve learned, and experience the joy of working directly with the people whose lives they touch. Disintermediating away clients, committees, and bosses, and getting straight to the quick. Watching them feel, for the first time, the joy of realizing they can choose how much they want to earn.

And watching them get letters from their customers as they help them kick ass.

Then seeing them give the same great advice and encouragement — sometimes even better! — to their fellow alumni.

There’s nothing better.

I know that, every year, I’m helping my students launch businesses which, in toto, will multiply our own yearly revenue by ten over the long run.

I get to be a human lever for awesome. And train new human levers for awesome!

Some day, if there are enough of us, we will move the world. Even if we only move the world a little bit, for a hundred people here, a thousand people there, we’re still moving the world. Which amazes me anew every single day.

This is why I designed 30×500 the way I did:

30×500 is a very nice money maker for me, but it’s not as profitable as if I’d pour that time and effort into growing Freckle and Charm. On the other hand, it has a much more powerful impact on a smaller group of people (my awesome, awesome students). And that’s what I love about it.

Which is why I don’t try to maximize my personal 30×500 ROI, but rather my student’s ROI:

When you join 30×500, you join for life. Shit happens. Sometimes you can’t finish the class you’re in “on time.” I know it. As an alumnus, you can retake the class any time you want or need.

You also get a lifetime subscription to all the updated, improved and expanded lessons. (And I don’t rest on my laurels; I’m always trying to make 30×500 better, more effective, for you. I’m not perfect, but I’m always trying.)

You’re also invited to the weekly Office Hours chats, as long as I hold them. (Which over 2 years have grown from sporadic now and then, to twice a month, to once weekly. And I foresee doing this for a long time.)

Perhaps best of all, you have access to the alumni mailing list — an awesome, involved group of motivated people, like yourself, who are there for you, to answer your questions, poke holes in your mistakes, point out things you’ve overlooked, and generally help you kick your own ass. Who are there, sharing their successes and trials, to inspire you and show you that you’re so very far from alone.

The quality of this alumni group cannot be overstated:

Right now, some 30×500 alumni are organizing a study group for those who are “behind” the official class schedule. This is amazing to me. And brilliant.

And every week (or more!) we get emails like this one from Brennan:

I just pushed a few updates based on the awesome feedback I’ve received. (Once again, this class has paid for itself and then some!)

[Later] … I pushed [changes based on your feedback] last night, and am already now getting 8% conversion rates (instead of < 2%).

I have pages and pages of quotes and comments like this.

Together, we’re building a bootstrap army, inspiration delivery network, and support group all in one. And it kicks ass.

Would you like to join us?

30×500 Winter 2012 is Opening Soon

If you want to be a part of the next 30×500 class — if you’re really ready to make this enormous change and you’re willing to put your time & effort where your mouth is…

Enter your name and email address in the boxes below:

NOTE: Putting your email in the box above is the only way to attend 30×500.

Last class, I took a new approach to launching 30×500, in the hopes of continuing this awesome trend of ever-increasing quality, and ever-increasing student results. I set up an application process.

I intended to give the people on my list first dibs… but as it turns out, the people on the list took every single seat. So I never even launched the application process on my blog, because there were no seats left.

So:

  • You’ll need to apply, so I can help ensure the class is right for you right now.
  • I’m supplying self-guided learners with 100% of the materials before the class starts (after applied/accepted/paid, of course).
  • You’ll have 30 days to review the material and decide if the class lives up to your expectations — if not, no problem, you’ll get a full refund.
  • You’ll have access to the alumni community and weekly Office Hours chats for life
  • And you’ll get all the updates to the class materials for life — for free!
  • New feature in this class: intense weekend bootcamp, so you get the whole picture up front, and see how the whole 3 months of work hangs together
  • And I’m making huge improvements to eliminate the stumbling blocks, and adding tons more “live feedback” and group exercises to help you make great progress on executing

It’s almost time to open up the application process. Doors open on Friday, Sept 21st. This will be first come, first served for the 75 seats available. Here are the questions, if you want to prepare. (NB: they may change slightly, based on my “beta testers.”)

What’s it cost? $2,750 — just $2,450 (Early Bird) for the 3+ month long class, all the awesome new lessons, structure, weekly chats, and alumni group for life.

This may seem like a lot, until you compare what you get to the cost of a single class at a business school: This is not lecture-and-test-and-forget-it. This class is not taught by a TA, it’s taught by a veteran (me!), with over 2 years of experience teaching this stuff, plus assistance from the awesome & savvy Alex Hillman and the alumni who are making it happen. You won’t be alone, you’ll be surrounded by people who are striving to succeed, who have a common vocabulary, and who care.

And you get to be a part of this forever.

What else can you get for $2,450? A 5-day vacation somewhere moderately luxurious and tropical? That’s nice, but it doesn’t last, and it won’t ever pay you back.

On the other hand, Jim Gay’s revenue from his very first beta product launch has paid him back more than 7-fold. You know how much Brennan’s Planscope app is making. (This is after starting at just under $100 for his first billing cycle, a few months ago. That’s the maddening beauty of subscription income.)

And Jarrod informed me that he made 242 sales of Bootstrapping Design$8,753 — in his first 48 hours. (Current total: north of $40,000.) Like Brennan, Jarrod wasn’t even remotely famous! He exploited the 30×500 recipe, and his own internal resources, plus his own sweat & tears, to make something that people want so bad that he could get those kinds of results without fame.

Several alumni have used 30×500 to improve their consulting practice, or launch live training workshops (like RailsTutors), which have more than paid for their tuition. One alum wrote the mailing list to explain how she’s using 30×500 to slowly revolutionize the company who bought her employers — from the inside out, by spoon-feeding them the lessons she learned in my class.

30×500 is built for products, but it’s really a way of thinking which can change the way you look at everything you touch that has anything to do with money.

In short: if you’ve got the grit and the gumption, I believe this is the absolute best investment you can make right now for your future success.

Unless… you just wanna maybe learn something and explore the idea of making a product because it sounds like a fine thing. In this case, I hope I’ve priced 30×500 out of your comfort zone. I don’t want you to waste your money, and I want the class to be full of people who are really motivated to be there.

On the other hand, if you’re seriously ready to learn, to change, to implement, and to ship, there’s no reason why your investment couldn’t pay you back with your very first product.

And if you are, now’s a great time to join my mailing list so you get first dibs on the application process, and the seats:

Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

There are only 75 seats available. I’ll be making them available first come, first serve, for those who apply. There are 1200 people on this mailing list. Not everyone on there is really ready to make that commitment and shell out that cash, but… you do the math :)

See you in class.



Parenting Yourself: You Suck At It?


Context for the quote below: the “both situations” are a parent who tells a child “You must do your homework,” and a parent who sits down and takes on an equal role as the child.

In both situations parents are using control, in the first case behavioral (sit down, do your math) and in the second psychological (“we’re applying.”) It is psychological control that carries with it a textbook’s worth of damage to a child’s developing identity. If pushing, direction, motivation and reward always come from the outside, the child never has the opportunity to craft an inside.

Raising Successful Children, NYT

Wordsworth wrote, more or less, that the child fathers the man.

My own experience is more that we have to parent ourselves, since nobody else seems to be doing the job. Certainly we are our own gatekeepers, since we are always the first to rubber-stamp our own excuses.

I think pretty much my entire blacksmithing essay is about the staggeringly awful results of pushing, direction, motivation and reward always coming from the outside, and the internal emptiness & spoiled brat stompy-ness that results.

And when all that drama results in not achieving what we (claim to) want? What then?

A loving parent is warm, willing to set limits and unwilling to breach a child’s psychological boundaries by invoking shame or guilt. Parents must acknowledge their own anxiety.

Raising Successful Children, NYT

So.

Which type of control — behavior, or psychological — do you apply to yourself?

Do you invoke shame and guilt?

Do you parent yourself badly?

We tend to do to ourselves what others once did to us. Which obviously didn’t work all that great, or we wouldn’t be here discussing it.

Time for a program change, perhaps.