8/ Investors are great for company optimization & scaling, less so for product advice. Don’t assume investors have answers for everything. They’ve got a specific skill set around growing companies but are generally less useful when it comes to actual product decisions.
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9/ You’ll burn through all of your funding in a year. No matter how much you raise, you’ll burn through all the funding in 12–18 months.
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10/ Ignore data early on. If you’ve just launched your product, the phrase “A/B testing” should not be in your vocabulary. You simply will not have enough traffic or conversions for statistical significance.
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11/ Ignore your competition. It’s so easy to fall in to the habit of checking up on what your competition is doing. But here’s the problem: doing this puts you perpetually one step behind. It makes you reactive instead of proactive.
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12/ Don’t build internal tools. The danger in building internal tools is not that it saves an insignificant amount of cash, but that it stifles future growth.
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13/ Don’t wait to charge. You’re not running a charity. Charge from day one.
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14/ User action is much more relevant than user feedback. Feedback from users is great for understanding their line of thinking, but not great for understanding what they’ll actually do. Many times their actions don’t line up to their words. You need both to get the full picture.
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15/ A $9/mo customer is an entirely different customer than a $99/mo customer. All price points are not create equal. Low-ARPU customers are not only the most price-conscious, they’re almost universally the neediest. Support costs alone can run you in to the ground.
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Replying to @Shpigford @patio11
sometimes I see people charging a tiny $5/mo for their SaaS service. I don’t get it. While contextual, it’s crazy hard to make any real money at those price points unless pricing can scale up with its customers.
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On the other hand, charging $40/mo for a service intended to be used by a working class family who may not be too familiar with the web ecosystem would just be a huge barrier for gaining new users, and it's not fair to group them up into "the neediest" based on how much they pay
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AppAmaGooFaceSoft have dictated that the price point for software for working class families is "zero; subsidized by the rest of our ecosystem" and if you have less than a billion dollars to change user expectations I suggest not trying to change that user expectation.
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That's very true! But unless you're targeting the entire working class you don't have to give it away for free - Netflix was $9.99, Dribbble is $3/mo, etc
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