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Building a Developer Tools Business

manifold.co

31–40 of 73 posts

Re: Building a Developer Tools Business

#31

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

This simplified view misses some critical points:

- The product won't do things exactly the way you want. If you build it yourself, you get it the way that you wish it had been built.

- You're investing in someone else's product. Everything you invest in training and customization is wasted if you have to move to something else. You no longer have to worry about tech support either.

- You're locking yourself into someone else's product, and you're stuck if suddenly there's a big increase in price, the product shuts down (very common), or changes in some way (even more common).

- The "developer cost" is tricky. Salespeople like to pretend that you can calculate that using someone's salary. If you have an $80/hour developer spending five hours on something like this, you don't literally write a check for $400. Instead, that developer might have been doing something useful, but might also have been in a meeting or responding to email or just sitting around. One argument for 20% time is that the 20% spent on that work wouldn't have been used productively anyway.

Re: Building a Developer Tools Business

#32

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

Your argument works at small scales. My company is working with a vendor who quoted us $10mil for an e-commerce solution. Our execs are now toying with the idea of upgrading our existing solution with a few in-house additions, which might total $2-3mil over a few years. When you scale up, sometimes in house is the only option.

Re: Building a Developer Tools Business

#34

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

Your argument works at small scales. My company is working with a vendor who quoted us $10mil for an e-commerce solution. Our execs are now toying with the idea of upgrading our existing solution with a few in-house additions, which might total $2-3mil over a few years. When you scale up, sometimes in house is the only option.

Wow I’d love to know what the e-commerce solution is for. And happy to build it for $1m.

Re: Building a Developer Tools Business

#35

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

How it then comes that there is such a high MacBooks-usage rate especially among developers?

IMO developers want fun when they build something and many of them have fun only for very specific tasks i.e. where they think they are good at. So, yes, it is not easy, but points 2. and 3. are partly wrong.

Re: Building a Developer Tools Business

#36
post #3

I've noticed that a lot of paid dev tools are just priced too high or that I run the risk of blowing my budget depending on scale. I wish more paid dev tools were aware that I don't actually know my usage up-front, and that I'm scared of potentially ending up with a ridiculous bill if I overlook something. I totally get that it's on me, but things [like this]( https://hackernoon.com/how-we-spent-30k-usd-in-firebase-i…

This is something I'm hitting up against a lot at work currently. Our application is high volume, with a significant proportion of users who don't bring in any recurring revenue, which makes us very cautious about picking up new SaaS services which are billed on a per-user basis. We went through the same process around Auth0, and eventually built our own solution for handling authentication because even with our curr…

Auth0 quoted us 25 - 50k a year for 7K MAU, we found this insanely high as we don't handle any sensitive data.

It seems we might use Amazon Cognito, which seems a bit rough / neglected when it comes to aws products but the difference is basically free up to 50K MAU.

Couldn't find a nice middle ground, Okta and the others were all prohibitively expensive as well.

Re: Building a Developer Tools Business

#37

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

I think another important point is maybe a lot of developers have issues with trust.

Often times it's not about the money on its own. It's just that I don't trust a critical part of my business to a $10 / month service that I'm not 100% convinced will be around for the long run or has an impeccable track record.

For example, I trust Stripe a lot and have no problem basing my business on them but not so much that company I never heard of who is offering a useful service. It might be good, but without concrete proof or dozens or hundreds of success stories then I feel a lot more confident just rolling my own solution because I know it will work in the way I designed it (with or without bugs but if it's buggy, I know where to go to fix it).

Re: Building a Developer Tools Business

#38

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

> 3.) Developers undervalue their time.

I must admit that this made me pause and contemplate my relationship with time at work.

Re: Building a Developer Tools Business

#39

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

This simplified view misses some critical points: - The product won't do things exactly the way you want. If you build it yourself, you get it the way that you wish it had been built. - You're investing in someone else's product. Everything you invest in training and customization is wasted if you have to move to something else. You no longer have to worry about tech support either. - You're locking yourself into som…

These are valid if you're the only one using your custom dev tool, but they don't hold up if other devs in your company are using your dev tool. It'll be the same relationship as buying from the external business.

Re: Building a Developer Tools Business

#40

I find that the key thing to overcome when selling to developers is the extreme reluctance to spend money buying something that they can build themselves. You see, 1.) Developers love to build things. 2.) Developers hate spending money. 3.) Developers undervalue their time. If your product looks like it would have been fun to build, you'll lose the entire "insufficiently supervised developer" demographic. Those guys…

This. A thousand times.

We are developers ourself. 4 years ago we built a great tool (a remote logger for mobile apps)[1] internally for ourselves. We had such a huge benefit from it when developing mobile apps, we thought this tool must be very useful to other developers as well. It was a no brainer to turn it into a SaaS product. But we had no clue about how to market it to people.

So we started reading every book on marketing out there (e.g. "Traction") and listened to a tons of product marketing related podcasts (e.g. "Smart Passive Income", "The Art of Product"). We tried many things over a period of 2 years. Nothing worked. After investing 100k€ in development and marketing money plus a lot of our own hours we were almost about to kill it. When suddenly, after the summer break, sales slowly started to ramp up. Without doing anything, but gaining traction on some of our blog posts about technology and development.

Now almost 5 years since inception we have a nice and stable business with 20k€ MRR and constantly growing. We stopped doing any marketing as you'd learn it from the books and focused entirely on creating value for developers through generating content that is also interesting for ourselves. And to be honest, it also makes you feel a lot better, not having to trick people into buying something.

There's probably still a lot we can learn and do better in order to "sell more", but we're quite happy with the current situation (financially) and really appreciate the feedback and praise we get from the developer community valuing our product.

Without wanting to self-promote our product too much, if you're interested in getting more details about our "failed marketing story" we've just published a blog post[2] on Indie Hackers about exactly this.

- 1: https://bugfender.com

- 2: https://bugfender.com/blog/bugfender-growth-from-side-projec...

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