A secret to making money online

61860389594a4d8079d83f77ad87e648?s=47 Alex
January 02, 2013

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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  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

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

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  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

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  21. Fortune 5,000,000

  22. The lifestyle business

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  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

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  34. Getting started

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  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)

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  41. Questions?