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A secret to making money online

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January 02, 2013
Business
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A secret to making money online

David Heinemeier Hansson (DHH) of 37 signals on Startup School 2008

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Alex

January 02, 2013
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Transcript

  1. secret to making money online David Heinemeier Hansson The A

  2. 1. Great application 2. 3. Profit! Price ???

  3. Lots of ways to have a price

  4. None
  5. None
  6. None
  7. None

  8. Not rocket surgery (but still hard, most new businesses fail)

  9. None

  10. Get a billion or die tryin’

  11. Odds are not created equal

  12. 1:5 1:10 1:100 1:10,000

  13. 1:10 for making a million vs 1:10,000 for making a

    billion

  14. How about just a million?

  15. ~2,000 customers x $40 x 12 months = $1,000,000/year

  16. 5% conversion rate 40,000 signups to keep 2K (110 signups/day)

  17. 400 customers @ $40/month $200,000/year

  18. Finding customers

  19. None
  20. None

  21. Fortune 5,000,000

  22. The lifestyle business

  23. None
  24. None
  25. None

  26. Calling your own shots Running at your own pace

  27. “We both know some people who own more than a

    billion (dollars) and they’re not any the happier” Craig Newmark

  28. “Finding a good cause is incredibly hard and time- consuming

    ” Craig Newmark

  29. This is not the movie industry

  30. No need to dominate the box office, lots of winners

    possible

  31. But where’s the network effect? How are you going to

    be viral?

  32. Forget viral

  33. None

  34. Getting started

  35. None

  36. 1. Developed by 3 people with other commitments 2. Grew

    for a year before we gave up the extras 3. Ran on a single server for the first year

  37. Can I haz scaling probs plz?

  38. 500 customers/server 500 x $40 = $125,000

  39. Take it easy! (there’s never going to be less work)

  40. None

  41. Questions?