Live data from Hacker News

MailChimp’s founders built the company slowly by anticipating customers’ needs

nytimes.com

31–40 of 267 posts

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#31
post #22

>In fact, it’s possible to create a huge tech company without taking venture capital, and without spending far beyond your means. It’s possible, in other words, to start a tech company that runs more like a normal business than a debt-fueled rocket ship careening out of control. The author, Farhad Manjoo, is romanticizing a bootstrapped business as "good" and (via his prosaic examples of restaurants and dog walking)…

another way you could look at it is "here's what's good about doing it this way" w/out necessarily dismissing VC's as "bad".

as a founder you do have a choice of the kind of business you start. I think he just points out that debt-driven is not the only way to grow a successful company.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#32

You know what word doesn't appear in that story? Spam. Mailchimp is a company that provides lots of unsolicited commercial emails. In other words, spam. You can dress it up and call it "marketing software for small businesses" but that doesn't change the essential fact: Mailchamp is a spammer. Is it any surprise that spamming is profitable? I've received hundreds of Mailchimp emails. Not once did I sign up for any of…

Anectdotal, but a non-profit volunteer org that I work with (http://cramba.org) had someone scrape all the contact emails from the site and sign them up for some mailings from a cycling tour company (http://kickassroadtrips.com/), sent via Mailchimp.

I directly reported this to Mailchimp itself, and based on both the response I got from Mailchimp and the angry response from the company owner I got a great feeling that Mailchimp took the abuse report quite seriously.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#34
post #22

>In fact, it’s possible to create a huge tech company without taking venture capital, and without spending far beyond your means. It’s possible, in other words, to start a tech company that runs more like a normal business than a debt-fueled rocket ship careening out of control. The author, Farhad Manjoo, is romanticizing a bootstrapped business as "good" and (via his prosaic examples of restaurants and dog walking)…

> It should be obvious that a bootstrapped business can also be dysfunctional

But it cannot continue to be so for half a decade.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#35

You know what word doesn't appear in that story? Spam. Mailchimp is a company that provides lots of unsolicited commercial emails. In other words, spam. You can dress it up and call it "marketing software for small businesses" but that doesn't change the essential fact: Mailchamp is a spammer. Is it any surprise that spamming is profitable? I've received hundreds of Mailchimp emails. Not once did I sign up for any of…

I've got to disagree with you. I'd say MailChimp has elevated the perception of email marketing. MailChimp has pretty strict standards when it comes to sending emails. If you send emails to a list that has a 20 percent or more bounce or unsubscribe rate, they'll freeze your account. Other providers let you upload a CSV with emails and blast out campaign after campaign to purchased lists without repercussions.

I agree that MailChimp offers a legitimate service (sending subscriber newsletters and such) but also agree with GP that 90% of the email that I get via MailChimp I would call spam.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#36
Depends on what you mean by 'making it' as a startup - is it the revenue growth? burn rate? profit growth? Number of users? Number of employees? A SF office? How well funded you are?

It's hard to grow a business without going the conventional SV route and getting VC funding. Unless you have a revolutionary product, the bigger competition will likely stomp over you unless you have resources to grow your team and product and marketing. Or if you are comfortable with a small market share but a profitable one.

Not saying it is impossible, but just hard. I know a few SaaS out there like Roninapp and Reamaze that like Mailchimp are not VC funded and are growing well and are run by a small but effective team, but the question is would startups like these benefit from funding and be in a better position with regards to growth and user base than without vc funding?

More often than not when startups receive funding they move away from satisfying the customers to making investors happy. As the company starts to hire, get a nice office, increase spend on things like office perks, ads, marketing etc while it might contribute to growth it doesnt necessarily work well for the end user. You go from lean to bloat more often than not. I guess that depends on how you manage resources but it isnt exactly easy with investors breathing down your neck

I have a company that is bootstrapped and while there are well funded competitors out there, i'm perfectly fine with my startup running lean and being profitable, albeit slowly. At least I am my own boss and I answer to myself, and that in my world is 'making it'.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#37
The Atlanta tech scene is blossoming, just like our film industry. We have a couple of incubators, including a few that are funded/supported by Georgia Tech. The cost of living here is super cheap, and there are brilliant and talented people everywhere.

We have satellite offices for tons of major tech companies, so there are traditional tech jobs too. Earning $200k here while the cost of living is so low is phenominal.

You can comfortably live in the city with a roommate and pay only $500-600 rent. Just outside the city, you can get a 1200 sqft apartment for $700.

Our music scene is amazing, and the local food is fantastic.

I try to convince my friends in SF to come out here and give Atlanta a look, but nobody bites. I think this city is an incredible opportunity, especially for an early stage startup that wants to focus on growth prior to investment. The talent is here, the city is amazing, and the rent isn't absurd.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#38

And then somehow they managed to totally disregard their customers' needs and screw everyone with the Mandrill changeover. Seriously, has everyone forgotten that fiasco? https://news.ycombinator.com/item?id=11170713 I'll never trust them or use them again, after that. No way no how.

My understanding of that is that the term customer shouldn't apply to free tier heroku spammers. It is a very secretive company about most things related to way of business, so I can only speculate and from what I heard around town, but most of the customers there were not good sustainable fits.

I've had extremely negative experiences in their customer support, but also extremely positive experiences through their community engagement as I'm local to them.

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#39

Depends on what you mean by 'making it' as a startup - is it the revenue growth? burn rate? profit growth? Number of users? Number of employees? A SF office? How well funded you are? It's hard to grow a business without going the conventional SV route and getting VC funding. Unless you have a revolutionary product, the bigger competition will likely stomp over you unless you have resources to grow your team and produ…

"Depends on what you mean by 'making it' as a startup "

Making it = profitable and no debt.

As odd as that may seem, a great many companies don't do that. E.g. Uber (for now).

Re: MailChimp’s founders built the company slowly by anticipating customers’ needs

#40
post #22

>In fact, it’s possible to create a huge tech company without taking venture capital, and without spending far beyond your means. It’s possible, in other words, to start a tech company that runs more like a normal business than a debt-fueled rocket ship careening out of control. The author, Farhad Manjoo, is romanticizing a bootstrapped business as "good" and (via his prosaic examples of restaurants and dog walking)…

But it then bears the question that if the so called "network effect" companies has any real value (that is to generate profit in the future) or are manifestations of a bubble?
Post reply on HN