Ask HN: What are some examples of successful single-person businesses?

685 points by 1ba9115454 ↗ HN
I've heard success stories of people making millions from adsense or from creating software products. It's made me think who has been the most successful at building a company as a sole proprietor.

I guess we should discount companies that have single ownership but outsource all the work.

321 comments

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Well, they all have the same number of employees.
I suppose there is very little public information about such companies because they have no obligations of sharing it.
I don't think there are any that ever remain a one-person company in practice - even for my own projects I've always needed to outsource or farm-out tasks that aren't a valuable use of my time - e.g. website design or handling customer support. I'm sure there are plenty of de-jure sole-proprietor ships - but I doubt any of them of truly work alone.
I've worked solo for nine years. I think there's a bunch of us out there.

Also, customer support is a very valuable use of your time :-)

CDBaby?
+1 for CDBaby created by Derek Sivers. You can find his interviews discussing the creation of CDBaby at sivers.org His interviews with Tim Ferris are great.
I think I read that he sold in for something in the range of 20 million. His business model for CDBaby was interesting. I interacted with him via email for a bit when he was starting his recent or current venture, Wood Egg, which was a project to create a series of startup ecosystem guides (books) for many countries in South / East / South East Asia, written mainly by people familiar with or from those countries. Interesting idea.
There's pinboard, maciej still runs it solo, I think.
Yes I do. It makes about $200K a year.

My measure of success isn't the money (though I love money), but the independence and freedom it gives me.

Just want to say, keep up with the activism, but please post more on your blog! I miss the dry wit.
Pro tip: he has a Twitter account in the same vein.
If I recall correctly, IMDB used to be a one-man show for a long time, up to and even after getting acquired by Amazon.
Your problem will be definitional. The Rock earned ~ $65mm last year. Is he a 'one man company'? I guarantee he's billing through a services entity...

1: https://www.forbes.com/sites/natalierobehmed/2016/08/25/the-...

Celebrities will almost never work alone. They will have PAs, body guards, drivers, etc who all work full time for them. Even the minor celebrities will have agents who work for them - albeit not exclusively. But someone on the scale of the Rock definitely wouldn't be operating his business alone.
> work alone

He (alone?) does the actual "work" that brings in the bread. The other people could be considered contractors. I mean, a single SaaS app developer still doens't "work alone" when you consider that she might be buying services like hosting and/or payment processing.

It's hard to really find the line between alone and not.

I don't really agree with that logic because you could then argue that anyone working for a company who isn't a developer (eg the finance department, sales team, customer support team and even upper management) aren't part of the company either.

To further blur things, in my examples for a celebrity, agents still contribute to bringing in the actual work yet (as you defined) yet they literally are an external service one would pay for. And what about the script writing? Directors, studio editors, cameramen and sound technicians? They are all creating the product too - without which The Rock wouldn't be in business.

I think if there is one thing we can agree on, it's that even the most fiercely independent of people still depend on the work of others. Nobody can work entirely in isolation. Or at least without themselves living in isolation. But that's really more a philosophical tangent rather than an answer to the question originally posted to HN :)

the metric I'd use is whether one party is fungible. I argue that you can't replace the rock and still get the same product/show. but you can replace the agents and finance team etc.

I like philosophical arguments! ^_^

TV shows and movie franchises often replace cast. Sometimes with the new actor / actress playing an existing character.

* Sometimes it's done out of necessity so the changes are glossed over (Dumbledore changed characters due to Richard Harris sadly passing away, or when actors/actresses get fired from soap operas),

* sometimes it's made a feature (eg Doctor Who regenerations)

* and sometimes they'll just introduce a new leading character to replace the old one (eg the crime comedy "Death in Paradise" which has had 3 different leading inspectors as the previous actors have left the show).

Few people, if indeed anyone, are irreplaceable in their careers.

Yes, the problem is defining what constitutes a one person company.

To give another example, Cristiano Ronaldo is said to have been the highest paid sports star last year, with estimated earnings of $88 million.

https://www.forbes.com/profile/cristiano-ronaldo/?list=athle...

As laumars pointed out there's the question of whether you include assistants.

His primary job is an employment, not his own business. He reports to his coach etc. His side businesses like marketing the CR7 brand is most likely outsourced to a large degree with little to none daily activity by him.

A singer writing his own songs or an actor always looking for roles to play might be a business, while typically they are controlled by a record company or movie studio, which again isn't really like running a business on your own.

Furthermore he plays in a team. Golf or tennis players would be more appropriate examples.
I don't think we should consider celebrities in this context. I feel the author of the question wanted to know about freelancers.
Builtwith.com (one employee/founder and a part-time blogger) does an estimated $12M a year [1] assuming a 'few thousand' = 2000 paying customers.

"the Basic at $299 per month for customers that want lists of sites mainly for the purpose of lead generation; Pro at $495 per month, suited more for users that work in an industry using a lot of A/B testing and comparison-type data; and Enterprise at $995 per month, which covers all bases and allows sales teams with multiple people to all use the platform at once. Brewer says that in terms of paying users on the platform there is a ‘few thousand’ and the split is about 40 percent Basic, 40 percent Pro and 20 percent Enterprise."

Similar thread a while ago [2]

1: http://www.startupdaily.net/2015/09/builtwith-is-perhaps-one...

2: https://news.ycombinator.com/item?id=12065355

Edit: specificity and formatting

It's incredulous that a person can single-handedly run a product as complex as that. Builtwith isn't a low-maintenance CRUD app, it's a beast. It crawls >100M websites, searches for thousands of signals, monitors their usage, finds lead information, and serves them to thousands of customers. The signals need to be constantly updated; crawler needs to handle tons of edge cases; and not to forget, you need to deal with people's issues. I am in utter disbelief one person can do everything, even if I account for being an automation freak.
I've marvelled at builtwith since I found out it existed.

csallen, if you're reading this, get Gary Brewer to do an interview for IndieHackers.

Had no clue that was done by one person. Would definitely check that IH profile out if ever done.
I actually emailed Gary the week before I launched IH to try and get him on the site, but didn't get a response. I'll try reaching out again!
awesome, looking forward to it!
What if the actual development was outsourced?

My company does the same, it doesn't have a single employee, I outsource everything to different teams I have close relation. It just works, I do the business development and technical specifications, rest is handled by external teams.

Well if its outsourced is it really a single person company?
Is 100% of the equity owned by one person? Then I would say yes.

Just because I hire somebody to clean my office, doesn't mean it's not a one-person company.

I personally disagree with that analogy (I'd consider the hiring of any additional labor to deviate from a company's "one person" state, custodial personnel included). I also disagree that equity is the only consideration for similar reasons (if I own 100% of the equity, but run an office with a receptionist and service desk and programmers, that's very obviously not "single person").
100% ownership does not imply no employees.

Also, there's a difference between hiring software engineers, who will be engaging in activities related to your core business, and hiring someone to clean.

If the owner does not, or is not able to build and maintain their software, some will consider this to not be a single person business (regardless of how the extra help is contracted).

I work at a company that has 50 employees and 100% of the equity is still owned by 1 person. Is that a 1 person company?
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Where do/did you find these teams?
I used to work at a very small company (3 people, including myself) that brought in about $4 million per year. The entire software and infrastructure, including a custom web scraping stack and data analysis pipeline, was written and maintained by one developer. The other person was sort of a business development type - no technical input.

It probably wasn't quite as advanced as BuiltWith (scale-wise), but it was similarly impressive how much output was crunched by one developer. I learned a lot from him.

Could you elaborate on some of the things you learned from him? I'm interested in people that seem to be almost ruthlessly effective and competent.
FWIW, it appears that at least some of the ancillary functions get done by other people. According to [1], social media marketing and accounting are two that he doesn't handle personally.

> I am in utter disbelief one person can do everything, even if I account for being an automation freak. As someone who works in data acquisition, and someone who has evaluated BuiltWith along with other providers of tech install data, I can get a rough idea of how it stays as a one-man shop.

Whether deliberate or not, the more hairy type of signal analysis tends to be missing from BuiltWith's dataset. Unless it's exposed via DNS or direct webpage code, BuiltWith doesn't detect it. This isn't necessarily a bad thing, as it keeps it maintainable. Especially because you can use your historical data to identify changes in signals and be able to reactively update them as they change instead of use resources to proactively monitor all of them manually. But it limits it to a "public web facing" tech install base. You can greatly expand this by including secondary signals like parsing SEC files and job postings and whatnot, which will capture a lot of non web facing technologies. But those are a lot more complicated signals that require a lot of filtering/processing to reliably leverage, and would likely grow beyond a one-man shop like BuiltWith.

Salesforce is a classic example of this. It's generally an internally focused software, but if you use Partner Portals or Web2Lead forms, it'll be exposed publicly. Builtwith[2] identifies 12.1k live sites using it and 30k historical sites using it. HGData[3], which provides similar data but uses a wider range of signals, can identify 92k sites/companies currently using it.

> crawler needs to handle tons of edge cases Not particularly. If rendering the page, sure. But when doing pattern recognition within the source code itself, edge cases that'd bork rendering are mostly moot.

I'm not at all disparaging BuiltWith - it's a solid product for what it is and a bargain for the price charged. But it's also a very limited product which, when destructured, hints at a lot of decisions made with the intention of being maintainable as a one-man shop. In the space it occupies, it also has a really solid pricing model if you can get by with using the limited dataset it provides. But if you need visibility into any internal software or tools or hardware, it has much more limited use.

[1] http://www.hostingadvice.com/blog/builtwith-more-than-how-we...

I don't know much about marketing but could someone ELI5 what BuiltWith.com does?
My understanding is that it scans websites to determine what kind of technologies are being used (which hosting service, email providers, javascript libraries, analytics, etc)

This can be useful for market research, to see what technologies are being used and by whom. It could also be used as a lead generation tool.

Example: If I am creating a new email list tool, I could find websites (via builtwith) that are using a competitor and send cold email with specific comparisons between my new service and their current one, or asking what they like/dislike about their current tool.

Plenty of Fish? Exited for billions while still a solo operator
He was not solo at the end but for a long time he was. I think right before he went PPC he started to hire people. Also where do you get the billions from?
When he sold he had plenty of employees but still owned everything.
I know some affiliate marketers who make $2M+ without any employees.

Apparently, ranking well for certain keywords (mostly web hosting and website builders) can be very, very lucrative.

Why you're not putting the list here (people you know)?
Mostly because some of them are (or have been) clients and friends, and they like to keep their income and tactics secret.

But they're easy enough to find. Just Google lucrative keywords like "best hosting" and you'll see them

Sidekiq by Mike Perham http://sidekiq.org/

Over 1MM annual revenue https://www.indiehackers.com/businesses/sidekiq

hmmm... It is OSS though. Not sure we can consider it as a single person company.
It's still a single person company (as in, the company with only one employee). The fact that more people contribute to the company's product doesn't change that.

As long as other open source contributors are not payed for their contributions, I would still qualify it as a single person company. It's just that the company's approach is a little bit different than the traditional one.

If you were to define it that narrowly any company that doesn't do its own accounting is not longer a "single person company". At that point I don't think you'd be left with many companies that make much revenue, so even though the code is open source that still counts as a single person company imo.
Not completely. However is commits or line changes mean anything, you can see at https://github.com/mperham/sidekiq/graphs/contributors that 1 person did approx 90%+ of the work on the code itself.
And why was I down voted? Really, I did not even express a strong opinion. I kind of expressed a doubt. This is really strange. I may not know something and I may have doubt. I believe a community like HN is a good place to express them and get corrected. I am shocked to see that this is not really welcomed here.
At some point scale will require you to hire, at least a few people, if you're really successful. But two examples that I can think of are Markus Frind (Plenty of Fish) and Markus Persson (Minecraft).

---

Markus Frind is probably the biggest. He spent 5 years (2003-2008) working on Plenty of Fish, and at that point it was bringing in about $5M/yr and had 3 employees.

When the site sold in 2015 for $575 million it was 70 employees, but he still owned 100% of the company.

---

Markus Persson would be another possible option, for the first $10-20M that Minecraft brought in he was the only person (aside from a contracted musician). And then for a while after that, it was him and his friend who was hired to manage the business side so he could focus on the programming work.

Hmm, so if I apply some deep learning training techniques it seems like the takeaway from this is: Change your first name to Markus.
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How did Plenty of Fish grow at first?

I have deep respect for Markus Frind being able to scale so well.

Still I feel there is some missing ingredient in the early growth of PoF.

What really happened before the big monthly 500k Adsense checks started coming in?

Cue eBay(it was not Pez dispensers, it was to large extent newsgroups spam), cue AirbnB, cue Facebook in Harvard years, cue every "growth hacking" story.

There is always some missing piece in the success story(ala Balzac).

Minecraft on the other hand seems the purest single person success story.

One of the ingredients to its success was a lot of free advertising from Microsoft. They loved talking about the dating site that ran ASP.NET
The Flappy Bird creator said he made $50k per day from in app ads. But he pulled the game after a short while. Said because he felt guilty for making people play all day. Would love to know the whole story behind this.
I remembered that he was threatened with a legal action by Nintendo for using Super Mario pipe sprites, but it may be only a rumor.
That's not unlikely considering how aggressive Nintendo can be when it comes to protecting their IP.
He was found to not have infringed on their IP.
$50K Per day hahha

There was some podcast or something I remember listening to guy said he was worth $15K/hr or something haha man, I am a grub

He put it back up once a lot of clones started appearing though, didn't he? The reason being that since people would play the exact same kind of game either way he might as well be the one to get the revenue?
Nomadlist.com from levels.io
Top affiliate marketers in the health, wealth, personal development and dating niche make $m per year, some in the 10's of $m.
Isn't Tarsnap[1], by Colin Percival a great example of this? I'm surprised it wasn't the first thing mentioned since he's reasonably active on HN.

1: https://www.tarsnap.com/about.html

are there any public numbers on tarsnap?
Yes, but they are all in unreadable picounits.
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I'd be surprised if he made millions from this service.
You shouldn't. Tarsnap is a decade old; a million dollars over ten years is not a lot of money by the standards of tech salaries.
I assumed that OP's "making millions" referred to a yearly-ish timeframe, not the entire existence of a business.
Ah, got it. Right, Tarsnap is under a million dollars per year.
Never mind that, your company is still awesome, and with Tarsnap now running on Windows (10) thanks to the 'Windows Subsystem for Linux' I'm sure it will do a lot better in the coming years.
Oh, I'm not worried about that... I don't think $1M/year is a sharp line dividing "success" from "failure". I decided a decade ago that my criteria for success were:

1. Staying in Canada,

2. Doing work which I found interesting and meaningful, and

3. Earning more money than Google offered me,

and I'm hitting all three.

Sentences like this really make me want to move to America
Is that really required to be considered successful?
OP:

> people making millions

> It's made me think who has been the most successful at building a company as a sole proprietor.

Is that the same guy who did that famous burn on HN? If so it's nice to see he's made it.
Yeah, assuming you mean this: https://news.ycombinator.com/item?id=35076 (ctrl + f: putnam)
I've always loved this.

A little known fact about it is one of his replies is this:

we're in a similar space -- http://www.getdropbox.com (and part of the yc summer 07 program) basically, sync and backup done right (but for windows and os x). i had the same frustrations as you with existing solutions.

let me know if it's something you're interested in, or if you want to chat about it sometime.

drew (at getdropbox.com)

https://news.ycombinator.com/item?id=35103

http://NomadList.com

Bootstrapped social networking site doing multiple 5-figures/month.

Like your blog, i remember some posts about travelling and that your from the Netherlands. So greetings from Belgium :)
While Pieter does most of the work himself, he does have a few people helping out here and there.
How do you define successful single-person? I've been running a one person consultancy for 12 years now, had to retrain quite a bit over the years, sometimes it was so busy that I outsourced pieces of work. It's been good enough that I have a house and no mortgage attached to it, all while spending almost enough time with my family - much more recently. This is what I wanted and I consider that a success in maintaining a work/life balance, working from home and having a good life in general. It's not quite 'fu' money yet, as I still ahve to work for a living, but I working towards that goal. I know a few good people that agree with this point of view - Basecamp/37 signals folks etc.
Consultancy is a special case, I doubt it's what OP had in mind.
That's a very relevant question. I guess inherent in the question is 'FU money' as the only criterion?

I started Airwindows about ten years ago specifically because friends of mine were getting jerked around by a large-ish audio DSP plugin company, and intentionally targeted a then absurdly cheap pricepoint. Ran it for ten years, and transitioned to a Patreon model when my payment processor went out of business, always DRM-free, always scorning concerns of 'piracy', the purpose always being democratization of tools. It's still working, I've got a decent amount of influence in my industry sector, and I'm seeing hardware-based startups taking a similar approach.

My current plans are to extend outwards into an additional website/identity dedicated to being interdisciplinary, and be the primary resource for this new model: the idea is that as we move beyond money as a primary metric, interconnectivity and significance become central to what 'wealth' is in the future. So long as subsistence is assured and the flow of money/gifting is enough to keep developing creatively, the important thing becomes 'how authoritative' you can be, and though this has traditionally expressed itself through money directly it could also be expressed in terms of 'FU relevance' or the ability to steer the zeitgeist.

If I manage that (not saying I'm fully there, but I'm probably at least halfway), does that count as successful if my choices intentionally ignore the accumulating of money? I'm convinced money is increasingly irrelevant to real significance, especially as we move towards general AI. If we haven't better optimized purposefulness by the time we reach AI escape velocity, we'll have a serious problem.

Money can be relevant if, say, having some reserves at the right time makes the difference between gaining access to the technology or being left out. It's all utterly hypothetical of course.
Money is only abstracted influence. What if you managed to get enough direct influence that you could get access to the technology without ever having to work through a money stage?

Happens every day on YouTube, in a sense. Think 'unboxing videos' or perhaps 'endorsement deals' is a better analogy. If you can get enough social influence, you can work with technology/capabilities far outside your normal 'money' conditions, because your importance is being weighted directly. You pay taxes on such gifts because the government rightly sees this as compensation, but it didn't go through a money/abstraction stage. If you were collaborating on some creative work using but not owning tools of extraordinary value, you probably wouldn't even be taxed on it, but both sides still benefit: you don't retain the tools but you produce work on them in which you have an ownership stake.