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2M users but no money in the bank

exercism.org

141–150 of 367 posts

Re: 2M users but no money in the bank

#141
post #81

Earlier quoted context omitted.

We're paying ~$1k/month for all our webservers (which is a dozen ECS instances). They're handling about 3,000 requests per second (but that does sometimes massively spike to tens of thousands if not more). We're paying ~$1k/month for all our tooling servers (so the 150 different test runners, representers, analyzers that are used to check peoples code. There's >=1 of those running every second). Bare in mind, we're r…

I've mentioned this before on HN, but we had a single postgres machine primary read/write server that did 4k QPS 24/7. It had DDR ram as storage on a PCIe card, of course, but this was before "SSD" was a thing. It was for a site that hosted portfolios of images, for both people in the images and people who took the images, and such. The front end data (the images and text) was, iirc, 3TB. Sometimes we'd need a server…

RAM as storage for DB? So data loss on reboot? Sounds like very specific use case.

Re: 2M users but no money in the bank

#142

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

There will still be plenty of students (mainly from outside of the West) who will immediately lose access if anything gets paywalled by even a cent because of various reasons.

Re: 2M users but no money in the bank

#143

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

There will still be plenty of students (mainly from outside of the West) who will immediately lose access if anything gets paywalled by even a cent because of various reasons.

Yes, for sure. You could make it free for users in X countries, based on IP. Yes, people elsewhere could use a VPN to get around it and use it for free but you're charging so little that anyone who can afford or has a mechanism to pay won't go through the trouble.

Re: 2M users but no money in the bank

#144

The only way out for something like this to stay afloat is to be subsidized by a big tech company. $7,500 monthly is nothing to a large tech company. It sort of does makes sense for big companies to subsidize this so that the quality and amount of software engineers that join their company increases. This value prop is intangible, but I feel like at least one big company would go for it.

The $7500 jumped out at me, but for a different reason. This seems awfully high for a site with 2 million registered users. I feel like some backend optimization could get than number way down ($1000/mo?). What is all this computing power going towards?

I imagine they need to run code for their exercises on a server. There are probably lots of ways to optimize that, and perhaps even ways to get the code running in the browser via webassembly or something, but all of these things require technical expertise and time.

Re: 2M users but no money in the bank

#145

Earlier quoted context omitted.

I don't want to armchair ops your decisions, but maybe do consider moving to some dedicated Hetzner servers, at least for the runners. You can probably reduce that cost tenfold relatively simply.

AWS will charge for network traffic, both in and out. Would need to calculate what is cheaper.

The runners take some code and return text, right? That shouldn't be too much traffic, hopefully.

Re: 2M users but no money in the bank

#146

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

Would $1/month even be worth it? It seems payment processors would take a big chunk out of that $1, which is why I very rarely see monthly subs of that amount.

You'd probably want to charge $10/year (once) rather than $1/month. It's still an easy choice for many people (of course still inaccessible for students in some countries).

Re: 2M users but no money in the bank

#147

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

Would $1/month even be worth it? It seems payment processors would take a big chunk out of that $1, which is why I very rarely see monthly subs of that amount.

Some payment processors have "micropayment" fee structures, where they take a higher % (5% in PayPal's case) for a lower fixed fee per transaction.

PayPal's traditional fee (for USD)[1] = 3.49% + $.3, for $1 = $0.3349

PayPal's micropayment fee (for USD)[2] = 4.99% + $.09, for $1 = $0.1349

Using that model would make sense in OP's case.

[1]: https://www.paypal.com/us/webapps/mpp/merchant-fees#statemen...

[2]: https://www.paypal.com/us/webapps/mpp/merchant-fees#micropay...

Re: 2M users but no money in the bank

#148

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

> Congratulations on a very successful platform! (Success should be measured in usage/reach, not $).

Most organizations aim to survive as long as possible, so financial sustainability ($) is crucial.

Re: 2M users but no money in the bank

#149

Congratulations on a very successful platform! (Success should be measured in usage/reach, not $). You've probably thought of this, but it might be easier to charge a very small amount -- say $1/month, which most people even students, could afford, rather than rely on donations. If you get 1% of users paying that, it's still $20K month which is more than you're getting now. (Of course managing the payments themselves…

Would $1/month even be worth it? It seems payment processors would take a big chunk out of that $1, which is why I very rarely see monthly subs of that amount.

Well, it's $12 a year. I always pay a sub for a year or two if it's that low.

Re: 2M users but no money in the bank

#150

> We've tried a lot of things to change that. We've spoken to hundreds of funders and companies, The goal isn’t to get investors! It is to get money from customers. A lot of startups seem to get this wrong.

This is apparently a nonprofit, not a startup. They weren't looking for investors, they were looking for donors.
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