After 4 years of self-funded coding marathons I feel "finished", care to talk?

379 points by exhaustedhacker ↗ HN
I created a throwaway account to vent a little and, to be honest, to seek support of sorts from fellow entrepreneurial hackers who lurk here. I'm facing the lowest low of my journey at this point and there is no better venue to express my frustration.

I'll spellcheck this, but it won't be smooth - English isn't my native tongue.

Here's my story:

4 years ago I quit my good paying programming job, teamed up with a friend and started working on our new venture. New languages, lots of fun, a few excited beta customers - nothing could be better. The idea was big, it definitely needed funding to succeed, so after about a year of coding we still managed to pull off a nice and usable MVP which we "launched", i.e. just stopped tweaking the server. We applied to YC (rejected by email), studied "how to pitch to TC" and spent a week crafting our email to them (no response), submitted our product to HN and got rave reviews - it sat at #1 for almost the entire day in 08 and then... Silence. We never, ever got any press. We spent a couple of months trying to get some coverage but never received a single reply. We studied the blogsphere, followed people's advice, but nobody cared, so customers didn't know about us. The only way to get customers was Adwords which was prohibitively expensive, so after wasting a year and $20K of my savings I moved on. Meanwhile a mediocre competitor launched in LA, raised $12M, got their mandatory TC announcement, and another one, and another... basically a TC article for every little feature they would add. That was absolutely devastating...

For about a year I was consulting. Moved to another city to make it easier to cope with failure, gradually increased my consulting earnings to maybe 80% of my "pre-startup" levels and learned how to spend weekends with my family again.

It didn't last though - on January 2010 I got an idea which wasn't quite as huge and expensive to implement, hence I wouldn't need to send cold emails to various angle groups and VCs, so I was quite excited to trying again. I also took a sizable chunk of my savings ($60K) and hired a developer to work with me on this venture. We've been coding like mad.. I've never been so productive. In just 8 months without any funding we went from zero to a beautiful system, signed up a couple of early customers by attending local meetups and events, and prepared for a Big Day.

...And now the same thing is happening: no response from our carefully crafted TC email (yeah, yeah, with "story" and something for TC readers, I've been reading PR-related blog posts religiously) and this time I can't even get on CrunchBase! Our company profile got stuck in "pending" mode while I'm seeing tens of new companies show up every day. Did YC again. My application is out there but I don't even entertain myself with the thought of being accepted: I'm a solo founder, didn't go to Stanford, in my mid 30s, etc. Haven't seen much of those in TC announcements. I can't even announce my product on HN and Reddit (my two only chances of any PR) because that would mean that TC loses exclusivity and won't cover me tomorrow or on Monday. What a great feeling!

So here is what I want to say to anyone who's considering jumping into the cold waters of launching your own company:

Have a fucking great idea

We all know what they say about execution. That's true. But that doesn't apply to you. You can't afford to be "average idea, but great execution" company, because you're alone. Or just too small. Average-idea-great-execution companies know people, have capital and the luxury of having every feature of their average idea covered on TechCrunch and other blogs. They can sponsor conferences, print t-shirts, host parties and announce contests - all those things ARE execution. That's the value a program like YCombinator provides, you just won't be able to do it - you're not in the Valley, you don't have 20 hours of week to network, blog, tweet, drink, etc. And coding won't get you there, therefore...

Have a fucking great idea

190 comments

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I don't have any advice for you, but don't forget you did manage to launch a product, twice! To me that's amazing.
Sometimes (usually) it's all about marketing and getting your name out. Posting a link to your site here, there, everywhere (especially on a post about a product launch.) Talk to people about it, get feedback and build a community that gets emotionally attached to the product. You're done with the "hard" part, now it's all about increasing your luck by mingling and networking. Good luck!
I think the big thing that you're missing is that "great execution" doesn't end at building a great product. And PR is not a marketing strategy.

If you want to avoid this experience again, choose an idea that:

1) Has a broad-content SEO strategy (think StackOverflow and Yelp). New/valuable content gets created every day.

2) Has a channel for "buying" customers with economics that work. Plenty of people make adwords work. Plenty of others can afford salespeople. Find a market where people are succeeding at buying customers and compete in it.

3) Has a viral loop. Think Farmville or Groupon. Why is it in your customers best interest to evangelize your product? They can be motivated by psychology or $.

4) Create a "tribe". Read up on Seth Godin. Look at Joel Spolsky, 37Signals, etc. They sell good (NOT great) products because they've accumulated followers and evangelists.

It's not about a "great idea". Well, it can be. But look at all of the shitty products that are minting money! You can aim for a "addictive/amazing" product (and should), but it better be backed by sound customer acquisition economics for the (likely) case that your product is merely good.

About your launch day: You expect to blow it out on launch day? That's not a reasonable expectation. It's a marathon not a 100 yard dash.

edit: TechCrunch should not be a goal. At YC there's a word for the period after TechCrunch coverage... "The trough of despair". It's the period of time after TC where your traffic flatlines and you realize that TC isn't a springboard to anything-- it's just the first step (if you're lucky) on a really long slog to building a business.

I thought PR was in fact a marketing strategy. eBay did great with their (very smart) PR program.
I thought the "by itself" was kinda implied, but what I meant was "PR is not, by itself, a marketing strategy". I can think of lots of examples of companies with great PR.
I don't know, I've had this discussion a few times, about the differences between PR and marketing. Ppl at my company say they do 'PR' and 'because it's good PR' but I'm not interested in PR, I'm interested in sales. Marketing leads to sales, it leads people to learn about your product and to want to buy that product; PR just leads to people liking your company, which is only a small factor in the buying decision, and only after they've already decided they want to buy. But, and here's the rub, being in 'marketing' is not cool, it's full of negative connotations, it's hard and full of elbow grease; PR is about writing lofty prose from your well-lit corner office before going on a 2-hour lunch with some journalist. So 'doing PR' is something people want to do, 'doing marketing' not. (which makes that those who want to do marketing, and are not afraid of it, can make huge hits).
Three of your four points are ways that his idea wasn't good enough, yet you conclude that it's not about a great idea.
How many acquisition channels has he investigated? Adwords is a pretty expensive one that only works for certain types of products. He tried that. What else? Hard to comment on his actual idea. Assuming he has competition, that means someone has figured out how to find customers in a scalable way.

Maybe his idea, with a 10 degree pivot, could be a viral/SEO sensation. I've no idea.

But certainly some ideas lend themselves better to cheap/free customer acquisition.

GREAT snippet from Patio11's blog (paraphrasing Seth Godin):

"Specifically, he says that the software business is undergoing radical changes because technical competence is no longer a scarce commodity: with open source tools, an increasing supply of trained programmers, and the explosion of cost-lowering innovations for creating and marketing software on the Internet, things which were previously the purview of a technical elite are now within what talented teenagers can cook up from their kitchen table."

A good web app is really only the "entrance fee" to the more challenging (and longer term) game of building a business.

Having just seen this it at work for a startup we helped launch, I strongly recommend (without giving too much away):

5) Makes sense for other companies to promote to their customers. Ideally ones with lots of customers.

Bonus points: your product fits in to their customer acquisition process (i.e. helps generate more revenue for them).

Triple bonus points: you have access to a large number of these companies through a small number of entry points. For instance a trade association or a friend that will introduce you.

You wouldn't believe how easy it is to get your product out there in the above situation. PR is the last thing you worry about.

Hmmm.... my business has always been in the same boat in terms of press, although we are a niche product and so grow essentially through word of mouth. That said... improving the product usually trumps getting an article written in the long run. And never spend more than 40 minutes writing an email.

My suggestions for AdSense would be to spend $500 at once rather than trickling the money out. This gives Google enough knowledge of your conversion rates that you can switch to pay-per-conversion. Bear in mind that you also have to be ruthless about excluding websites where you aren't going to get any conversions during your pay-per-click period. So track your spend daily and exclude-exclude-exclude sites that don't convert. I don't know if you've done this, but it basically halved our advertising costs and turned us from advertising at a loss into advertising more or less at cost (perhaps profitably assuming word of mouth, etc.).

Good luck!

This is off-topic, but here is a shout out from one of your customers! PopupChinese is great. I found out about it because AdsoTrans was the most handy pinyin conversion site that I've used for years. And I don't remember how I found about that one.
This is gread AdWords advice. I've only just started playing around with SEM (as opposed to SEO which I already have a pretty good handle on) and Google AdWords can be wayyyy to expensive for very few conversions if ur doin it rong.

Thanks for the tip!

I totally hear your frustration. I've become incredibly burned out on launching startups / small products that flop.

I'd say one thing - Techcrunch is definitely NOT the only game in town for PR. They are very fickle and clique-y. There are huge startups that never made a dent in TC. PR is all about building buzz from the ground up, exclusives are a load of crap and mostly reserved for established players anyhow.

If you're not getting any coverage from anywhere, yes maybe there's something at the core that isn't compelling (and you need to talk to customers / users first to determine that), but chances are you aren't spending enough time sending fun personal emails to lower-level bloggers and journalists. If you aren't in the elite old-boys club, you shouldn't be focused on approaching the journalists who are.

But PR and "viral" launches are hard work. The idea of the massively hockey-stick organic viral launch is largely a myth propagated by a few outliers (aka survivor bias).

And good PR does not make a success, either. I've built 2 things that made big PR splashes (everything BUT TC haha) and neither landed me either fame or fortune. The one product was blogged about by the New York freakin Times, and it never achieved escape velocity. PR isn't a long-term marketing strategy. Its a one-time high and believe me the downslope doesn't feel good either

Honestly, there are 2 types of folks who make it: the lucky ones, and the persistent ones. Its hard as hell (and heck I haven't beaten it yet) but you have to ignore the burnout and be one of the persistent ones

I had mefeedia on Techcrunch, and mentioned in the NYT, WSJ, Rolling Stone back in the day. The press didn't drive that much usage/traffic, really. It was mostly about being in a hot space though, I don't have any tricks to get press to share.
Arington "covered" my project with a one-liner post that basically asked if anyone's heard of it. This generated some traffic, but it also generated calls from about a dozen VCs that led to a handful of in-person meetings. The odd part is that being in Canada I didn't know what TC was, and didn't realize the importance of mention for another few months... though the net effect of the mention was close to zero.
Honestly, there are 2 types of folks who make it: the lucky ones, and the persistent ones.

Best entrepreneurial quote ever IMO.

I couldn't agree more. A thought I've had in my head for years but never articulated it quite this well.
Be persistent until you get lucky!
Lucky people have worked hard to put themselves in a position to be lucky. Its also called opportunity, and it comes to those who are ready.
Especially if you aren't doing something in a hot space or aren't creating a consumer facing app. I don't blame them though, if your product is say focused at niche businesses and has little general appear it's not going to resonate well with readers.
You reminded me of a quote by Ray Kroc, the guy responsible for McDonald's growth:

"Nothing in the world can take the place of persistence. Talent will not; nothing is more common that unsuccessful individuals with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."

Great quote but it was Calvin Coolidge.
Fascinating, because I have a newspaper cutting with this quote attributed to him that must be more than 20 years old. I'm not doubting you. It's just I've always had this quote in my head and attributed it to Kroc.

It doesn't matter, of course, in this context, so thanks for the heads up.

Godlike genius.. Godlike nothing! Sticking to it is the genius! I've failed my way to success. --Thomas Edison
Agreed. I don't understand why so many people want TC coverage.

If you sell pianos, find musicians.

If you sell coupons, find local restaurants.

What are you selling that's gonna go on TC?

YES. Exactly.

Though I think the draw to TC is probably more about building buzz for investors than anything else

No advice here either. Let me know if you want an outside product review though, email in sig. If you're product is awesome, you should be able to have it do well.
The first thing that comes to mind is, did you do any customer development? http://www.startuplessonslearned.com/2008/11/what-is-custome...

In your story, I didn't see anything about sales efforts beyond "signed up a couple of early customers." Perhaps that was the missing link. It seems you relied on PR tactics, rather than finding, choosing, and closing customer deals one by one.

Cheer up, guy. Techcrunch front page doesn't guarantee success at all....remember that 90% of startups fail. So there's no possible way that all those startups Techcrunch reported on succeeded. From your story, it doesn't sound like you persisted with your first startup, which may be why it failed.
My reaction is twofold.

First, and foremost, I feel with you. I (never stepped out of a "normal" job so far) admire all you guys that have the balls to try that, to risk your savings for something you consider a chance to move something big. There are quite some stories about failures here, but usually they are presented as "lessons". Your post, emotionally, seems to be more like a resignation.[1] That's why I want to wish you all the best.

The second reaction is kind of twisted/evil: I wonder if "I'm a solo founder, didn't go to Stanford, in my mid 30s" is enough to basically identify you to the right people - i.e. YC. I'm not even sure if that would be something you want (Trying to advertise for your idea once more) or not (Missing that fact while venting)..

1: English isn't my native tongue either, and text sucks for emotional conversations anyway. I might be wrong.

"Great execution" means business execution, not programming execution.

You don't need TechCrunch's permission to launch a successful company, which is basically just as difficult if you get it.

Now you've got me intrigued; is your first product still up and running? I'd love to see it if possible

As for TechCrunch, that seems brutal that they can hold you hostage like that

Hey, great job on your second product launch. I will put money on your turning a profit within 18 more product launches. Check out Gabriel Weinburg's: My history of (mostly failed) side projects and startups http://bit.ly/arW8lE
I would suggest that you take more of a look at yourself rather than at your business per se to try to figure out why this isn't clicking. You have to be the seed out of which the business grows. All that stuff "out there" needs to be the air and water and so forth where it can take root and grow, but it grows out of you. So maybe you are what you need to understand better.

Good luck.

I am curious as to why this got downvoted. Can anyone explain to me how this is a "bad comment" worthy of being downvoted? Why is understanding yourself better "bad advice"? (We have a member here who successfully started a bakery after figuring out why trying to be an entrepreneurial hacker wasn't working for him.)

Sign me: Baffled.

Often people go through the comments clicking up/down here and there. Yours had just 1 point so was easy to get to zero. I upvoted.
I think it was at negative 1 when I asked why it had been downvoted. Now it is at positive 2. Upvotes are nice but doesn't really answer my question.

Thanks.

If you aren't getting downvoted once in a while then you aren't contributing much ;) Feel good about it, someone thought your opinion was worth a downvote! Upvoted!
So does getting thrown off lists (or leaving in a huff as a preemptive strike) count for making me worthwhile? :-P

(Yeah, I'm having one of THOSE days.)

I think all you really need to do is solve an identified problem that the customer will pay for. The rest is just a matter of how big your business will get and how fast and that depends on market size, competition and execution.

To get early customers I like the domino theory that Clayton Christensen first described in his book Crossing the Chasm (assuming you have built a product that solves an actual, difficult to solve customer problem that is worth paying for):

1. Start with one (paying customer), that customer then; 2. Gives a testimonial that you can use to sell other similar customers and; 3. Actually provides you names (and sometimes even actual referrals) of other customers you can sell to.

As you build reference customers it gets easier to sell to other customers because now you start to get a rep as a must have in that particular industry.

Nowhere in your posting do I see anything about "we have X number of customers" or "we worked with X number of customers when developing our product". If you spent $60k plus your own time developing a product before showing it to any customers it's possible that there is no need for the product, and that more than anything may be why you are not getting the response you want from either investors, "journalists" or customers.

I know how this can happen, I've been there myself! (It seemed like a good idea when we started building it, how come nobody wants to buy?)

Read up on how TC traffic is not all it's cracked up to be. Stop caring about TechCrunch.

You are doing it backwards. Start with the market first. Your idea is only as good as it applies to the market it serves. You should not have spent 60k on a developer, you should have spent it leveraging a way to talk to your proposed customers.

Yes I agree, shit products get sold all day every day and rake in billions. But you see the product may be shit BECAUSE everything else is so much more important. The system, the sales force, the production line, the logistics, the tracking. I love Mcdonald's. Nah not their food, their system.

I know you are just venting and now may not be the best time to say "you are doing it wrong", but well, it actually is the best time.

You are doing it wrong. I know because I've done it wrong for a long time too! I actually am more of a programmer than a business guy but its kind of funny... "I want to run a business" kind of entails that we think more like business men and less like programmers.

Best of luck to you. STOP doing shit that doesn't work and doesn't matter.

Launch day smaunch day, its not a launch until you get the publicity you want. When TC ignores you, have another launch day. Unless your startup is aimed at startups the TC crowd is mostly people who want to spectate your success, not use your product. There will be a bunch of sites that do cater to people who would be interested in what you do (ie lifehacker for productivity etc) focus on those. Have another launch day with those sites, with HN and reddit.

If that doesn't work iterate and launch again.

I'm no marketing expert, but you don't need to get on TC for your company to get traction.

I've tried in the past like you to get on TC and I was unsuccessful. The truth is I tried sending emails to all the "big name" blogs and nada.

I learned a different approach very quickly. I found that if you approach the "small" blogs, they're much more open to covering you. Then using that small amount of coverage as leverage, you approach more well known blogs.

Doing that, I managed to go from not hearing from TC in one week, to having the top story on Yahoo UK's homepage for an entire day the next.

It wasn't easy, it was a shit ton of emails that I wrote, all carefully crafted and targeted to each individual blogger I approached.

In a month the site went from idea, to launch, to 440k uniques (racking up 2.6 million pageviews) to being sold off for quite a tidy profit given it had a very short shelf life.

http://dl.dropbox.com/u/1918270/traffic-08.png

Anyway, my advice would be to not to give up, just change tactics and approach the smaller guys first, build a solid foundation and work your way from there.

Also, take my advice with a grain of salt as I mentioned I'm no marketing genius.

Hang in there! Don't stop now! So many startups fail because the founder(s) get burned out and quit early. Of the many success stories I have read, you always hear that they pushed through at the very end when they were feeling like it was a failure, and it became a success.

Sometimes success is just on the other side of the fail mountain.

That's the Silicon Valley bias. You hear about the successes but rarely the failures (which comprise the majority). The problem is that you can "keep trying" to the grave.

My best advice to everyone is start as early as you can to buy time :)

But that doesn't mean you should quit either.
I think you covered all my personal fears about starting my own app.

[edit] Wait. You missed having yourself or your family getting sick. Or maybe you live someplace with socialized health care.

You mean without socialized health care? (although this really isn't a discussion worth having here :)
Oh yeah, let's leave it to the experts that are politicians and talking heads, right ? They're doing a GREAT job of discussing it rationally and improving the state-of-the-art knowledge about it.
As someone who does live in a place with what you call socialized health care, I find it utterly bewildering that anyone would ever found a start-up starting from zero.

The cognitive dissonance of working on a silly web app while worrying about something as fundamental as my family's well-being in case of illness or accident: that would really, really tear me apart.

"Have a fucking great idea"

Everybody thinks their idea is great. Even you thought your idea was great, right? You might be better off trying to growing your personal brand in addition to launching a company. If you have a name for yourself, it should be easier to get YC's and TC's attention.I'm sure if one of the famous HNers launched something, people would notice (and they have)

Hey man, that sucks. But you picked a great place to rant -- most of us have been in this boat before :-)

FWIW, word-of-mouth marketing usually feels like a total crapshoot. Topical, often trivial ideas seem to do the best. And honestly Techcrunch doesn't help as much as you may think. They're good for a spike of 5-10k users, but much more important is your willingness to support an unpopular product for another 6-12 months. Because it will be unpopular. :-p

You might not feel comfortable linking to your company here but I'd love to see what you're working on. I put my email address in my profile, maybe I can offer some feedback.

"Oh, about scalas, clojures and rubies - they really, really don't matter."

This is the only thing here I agree with.

TC is rather useless in the grand scheme of things. If not being able to get on TC is your marketing strategy then you need to rethink it.

Much of PR is about having the right connections. This doesn't mean you must have grabbed a beer with Arrington before but just having met and chatted briefly with a writer irl is helpful in getting PR

I agree with it, but I have to say:

If they don't matter and you like Scala or Clojure or Ruby and you enjoy writing code in that language and you get stuff done, over anything else, then at least there's no real reason not to.

No wonder nobody noticed you...if your native language is not English, if your name sounds strange and if you are not living in US (read Silicon Valley) then good luck! Because you need a ton to get PR, investors and all that stuff.

Unfortunately, that's how it works and if somebody says it's not true they are not belonging in your category.

Off-topic but if you are not living in US get PR in your country ... Is it really that important for 'success' to be living in the US? I don't think so.
[..] just start a blog. Nope, that's also not for you. Because blogging is a nearly full-time occupation, so don't expect to gain readership with that little precious time you have left from coding your product and working your day job. Successful blogs are written by well-funded competitors who don't have to code 18 hours a day and have capital to keep staff on payroll to blog/tweet/whatever and make as much attention-grabbing noise as possible.

True for you and many others but not a universal truth by a long shot. Blogging is far from a time consuming activity if you're both a reasonable writer and neck deep in the subject matter. Let's just take an example that sat on the front page of HN for most of today:

http://blog.scoutapp.com/articles/2010/10/21/why-we-dont-sch...

232 words. And as my own blog was on the front page a similar length of time today, I'm confident they got at least 2000 pageviews from that (I got 5000) and I know I've seen several posts of theirs do well here. Yet if you check their blog, they have several posts per month at most, none are very long or technical.

Other startups like SeatGeek and MailChimp nail the blogging in a similar way. There's no way they're not getting some serious exposure with them, yet it seems in most cases it's regular techs updating the blog and not some team of "noise" generating PR flacks.

It's a myth that you need to post all the time to a blog in order for the blog to be useful. I post to mine maybe once a month, maybe twice. I have virtually no subscribers, but I get a lot of visitors, to the site from it.

Small Blogs are about personal brand, long tail keywords and SEO benefits. I sometimes talk about products, sometimes post big ideas, sometimes post about failure.

My guess as to your problems would be lack of customer contact the whole way through. Without knowing the problem domain, if you're concentrating on getting 'industry' PR like TechCrunch, you're probably concentrating on the wrong people. Assuming there is some type of vertical you're targeting (travel, photography, vehicles, whatever) thenyou should be making moves in that part.

My final thoughts on the matter : it would never even occur to me to try and get TechCrunch coverage or anything like that. I would just be trying how to work out how to find customers that pay. If you've spent a fortune on google ads, then you should at least know what works as a click through and what hooks to start working around. It's either bad conversions or a bad product. PR coverage won't fix either of those.