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Sorry, your “cool” webapp is probably not going to make money

paraschopra.com

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Re: Sorry, your “cool” webapp is probably not going to make money

#11

Post by jacquesm »

This is absolutely true.

The problem with a market driven approach is that it's hard to convince people to get in to 'glorified bookkeeping' or other stuff like that. Industry applications typically are not sexy but they're a fantastic way to make money because businesses don't have a problem to pay for things that will save them money, time or both.

If you're in it for the money go for b2b any time over b2c, b2c is sexy, everybody will write about you if you score but the fact is you most likely won't.

Re: Sorry, your “cool” webapp is probably not going to make money

#12

Post by swombat »

alexro wrote: post #7

Yes, but ... we are on YC site and at least twice a year we hear about cool companies appearing out of the blue with crazy idea and some of them get acquired or start bringing profits. So, the 'cool' factor will continue to have its benefits and is a good method to actually get going initially.

I believe DHH coined the name for those: Lottery tickets.

http://www.justin.tv/hackertv/b/259414909

Re: Sorry, your “cool” webapp is probably not going to make money

#13

Post by danielh »

arnorhs wrote: post #5

I think the web app-building crowd here is divided into two groups of hackers: Those who are in it to build businesses and those who just want to create apps that people use. Everybody likes money, but there's a big group of people out there that only want people to use their apps and are not in it for the money.

Just because it's free doesn't mean people will use it. If you just want to create apps that people use you might still get disappointed, unless you enjoy the process of building or scratch your own itch.

Re: Sorry, your “cool” webapp is probably not going to make money

#14

Post by paraschopra »

swombat wrote: post #10
paraschopra wrote: post #4

Earlier quoted context omitted.

Interesting. Can you elaborate what you mean by delivery channel?

Delivery channel = A way to reach the market. For example, maybe you have ideas for products in half a dozen industries, but in one of those industries you happen to have a good friend who works in it (and thus has contacts there) and know the editor of one of the industry trade magazines. Those are both delivery channels into that industry. Compared to another niche where you have no contacts, it is much better to b…

Yes, I think if you are considering multiple industries that make money you will automatically gravitate towards the most "practical" one where you have more familiarity. That said, in my opinion in any industry creating a delivery channel is not incredibly difficult but it does give you an unfair advantage while starting out.

Re: Sorry, your “cool” webapp is probably not going to make money

#15

Post by mechanical_fish »

paraschopra wrote: post #8
arnorhs wrote: post #5

I think the web app-building crowd here is divided into two groups of hackers: Those who are in it to build businesses and those who just want to create apps that people use. Everybody likes money, but there's a big group of people out there that only want people to use their apps and are not in it for the money.

Exactly. My post is meant for people who actually want to make money. Making apps for skill enhancement, fun and enjoyment is perfectly good. But expecting to make money from such apps and calling them startups is not OK.

If only there were already a good word for a technical project that one does for fun.

Maybe a four-letter word? Rhyming with "sack"? ;)

Re: Sorry, your “cool” webapp is probably not going to make money

#16

Post by paraschopra »

jacquesm wrote: post #11

This is absolutely true. The problem with a market driven approach is that it's hard to convince people to get in to 'glorified bookkeeping' or other stuff like that. Industry applications typically are not sexy but they're a fantastic way to make money because businesses don't have a problem to pay for things that will save them money, time or both. If you're in it for the money go for b2b any time over b2c, b2c is…

Yep, agree with your recommendation of B2B. Going B2B instantly simplifies a lot of issues that startups face because (as you say) businesses are usually inclined to pay money for services even if it is in $100-$1000/mo range. Consumers, on the other hand, will cringe at the sight of paying $5.

99 cents apps, thanks so much for setting expectations of consumers that everything on the web should be free or sub $1 range.

Re: Sorry, your “cool” webapp is probably not going to make money

#17

Post by ojbyrne »

Ideally, you want a "cool" webapp that can provide an entry into a viable market. The "cool" part gets you noticed among early adopters, who talk you up until you get noticed in the marketplace. Because there is some cost in getting into those marketplaces - you have to set up booths at trade shows, or get PR in industry specific publications. "Coolness" can reduce those expenses or help you get partnerships or funding.

Re: Sorry, your “cool” webapp is probably not going to make money

#18

Post by revorad »

arnorhs wrote: post #5

I think the web app-building crowd here is divided into two groups of hackers: Those who are in it to build businesses and those who just want to create apps that people use. Everybody likes money, but there's a big group of people out there that only want people to use their apps and are not in it for the money.

I think the vast majority is in a third group in the middle: those who say they just want to create apps that people use, but harbour secret hopes of turning it into a huge business some day.

Re: Sorry, your “cool” webapp is probably not going to make money

#19

Post by jpcx01 »

paraschopra wrote: post #8
arnorhs wrote: post #5

I think the web app-building crowd here is divided into two groups of hackers: Those who are in it to build businesses and those who just want to create apps that people use. Everybody likes money, but there's a big group of people out there that only want people to use their apps and are not in it for the money.

Exactly. My post is meant for people who actually want to make money. Making apps for skill enhancement, fun and enjoyment is perfectly good. But expecting to make money from such apps and calling them startups is not OK.

What do you mean it's "not OK"? Trying to building something new that people use and love is a perfectly acceptable path to building a startup. pg had a great post on this topic: http://paulgraham.com/organic.html

So you have an approach to building products that works for you. Great. But scoffing at people who actually want to build the new amazing things that have a real impact on the world is what I call "not OK".

After someone trailblazes the idea and builds something that gets traction, then we can expect legions of "you guys" who just want to monkey their idea and take a piece of the pie.

Re: Sorry, your “cool” webapp is probably not going to make money

#20

Post by swombat »

paraschopra wrote: post #14
swombat wrote: post #10

Earlier quoted context omitted.

Delivery channel = A way to reach the market. For example, maybe you have ideas for products in half a dozen industries, but in one of those industries you happen to have a good friend who works in it (and thus has contacts there) and know the editor of one of the industry trade magazines. Those are both delivery channels into that industry. Compared to another niche where you have no contacts, it is much better to b…

Yes, I think if you are considering multiple industries that make money you will automatically gravitate towards the most "practical" one where you have more familiarity. That said, in my opinion in any industry creating a delivery channel is not incredibly difficult but it does give you an unfair advantage while starting out.

This actually brings up a third alternative... start with the industries, as you suggest, but then, as part of your hypothesis-resolution (see http://swombat.com/2011/1/7/how-to-evaluate-and-implement-st...), try to create delivery channels into those industries that you like.

Then follow the one where you best succeed into building delivery channels.

Best of both worlds?

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