I lost 36 sticks of butter in 3 weeks

I don’t imagine too many people who read this blog would be terribly interested in this, but I have to crow about it anyway. Joe (cofounder and roomie) and I figured that the move to Silicon Valley was an ideal time to adjust our diet and shave off a few pounds.

Since arriving (Jan 4), I’ve lost just over 9 pounds or (as I like to think of it) 36 sticks of butter. This is all with only nominal excercise and eating just about as much as I want. Joe (always the showoff) has lost 15 pounds.

36sticks

If anyone cares, this was done with a “lazy” South Beach diet. Lots of veggies, plenty of lean meat/fish, and functionally zero sugar/simple carbs.

Startups: Launch Early, but Launch Small?

One of the recent YCombinator dinners that we attended featured Joe Kraus (who founded Excite and then later JotSpot, which sold to Google).

Like all YC guests, Joe had piles of startup wisdom… One of the things that stuck out to me (which I’d never heard much) was when he said, “when we launched JotSpot in beta, we launched it to too many people.” Huh? Too many users? That’s bad?

But as I look at my current workday, there are times when I wish that we had fewer users.

There’s some common wisdom about usability testing: Beyond 5-7 people, you really aren’t going to get much new/interesting data. There are diminishing returns.

Similarly, in a beta test where you are trying to understand your market, figure out your users, hone your funnel, hunt and slay bugs, and make your product better, there has got to me a point at which you have enough users to get the data that you need. For us, given that we have a web app as well as an installable app for both Mac and PC, our need for a diverse body of testers (in terms of the technologies they use) is probably higher than most. But I have no idea what the magic number is.

But we opened it up. To give you an idea of the consequences of this, here’s roughly the amount of communication that I do in a given day:

  • 3-8 emails from our contact form – I respond to every single one of these. Sometimes that results in a follow up email that requires a second response.
  • 20-30 feedback emails. We have a tiny form in our app asking for any thoughts a user might have. Even though we say below the form that we can’t respond to all of ‘em (and we point them towards the contact form / support forum if they want a response) I read them all and tend to respond to some.
  • 3-5 posts on GetSatisfaction, which weird forum-sorta-thing. We try to respond to all of these, and many times they require some ongoing discussion.

When you add all of this up, it’s a pretty tremendous amount of communication. Say it requires an average of 3 minutes to digest and/or respond to each entity (this is 7 days a week, mind you)… That’s about 2 hours and 10 minutes PER DAY. Every day. Not counting the times that some emails require that I involve the whole team in a solution/discussion. That’s a lot of time for a company where all of the founders really ought to be spending almost all of their time working on development. And, as an effectively bootstrapped company, we don’t really have the budget for support staff.

On the Brighter side…

Still, despite the “costs” mentioned above, there are some pretty huge advantages to launching early and openly.

First off, you get over the biggest early hurdle that can slow most startups to a crawl. I think all founders are terrified that when they finally launch their business, no one will want what they have. So they’ll find any reason to delay it. Maybe they should focus on patents? Trademark research? Clever and innovative stock plans? Business cards? Fancy spreadsheets? Business plans? Marketing plans? Anything at all that will allow them to delay the possibility that people don’t like your app. When you’re out there and getting buried in feedback, all of that other stuff falls away… It’s incredible how much it focuses you on your app.

Second, you get to test your inherent marketability. Do people like talking about you? Do they tell their friends? Do they blog about you? Does your app have any virality? A closed beta really doesn’t allow this.

Third (and most important), in the sea of people who reach out to you is (hopefully) people who LOVE you. We’ve gotten feedback emails that simply say, “I love you” (3 so far!). We get long essays from users talking about their time management strategies and how RescueTime has helped. Literally 1-3 emails a day make me walk on air. Reduce that number to 1 a week and I’m not sure I could manage to make the sacrifices I’m making now to push the business ahead.

Fourth, there’s SEO. No need to get into the nitty-gritty, but starting the campaign of building incoming links and pagerank is something you should start as early as possible.

And, of course, there are nebulous concepts like “tipping points” and marketing momentum… If you hear about RescueTime enough, maybe eventually you’ll try it?

On the balance, I don’t know the right answer… And I suppose it’s different for each startup. I’d love to get other folks’ thoughts in the comments.

Arrived in Silicon Valley

Joe, Brian and I have arrived in Silicon Valley unscathed, despite the monsterous storm blanketing the region. The trip was rainy, but thankfully the snow was fairly painless except for about a 10 mile stretch at the Oregon border.

We’ve settled into our furnished apartment and have shuffled it around to be dramatically more office-centric.

Not a lot of people know this, but RescueTime was built in a part-time way– generally evenings and some weekends from time to time, on top of day jobs and/or consulting gigs. It’s a testement to technologies like Ruby on Rails and MySQL that we could pull this off. I am incredibly excited to see what we can pull off now that we’re working full-time on this thing with zero distractions. The good news is that we’ve literally had thousands of feedback emails from our users– so we’ve got a pretty good sense of where to go.

Stay Tuned!

Stealing Photos, Fair Use, and Business Models

I have a hard time getting high-and-mighty about the paparazzi crap that I see in grocery store lines, given that I can’t seem to tear my eyes away from the train-wreck controversies of online celebrities. I just…. can’t…. look…. away!

Over the past two weeks, one of the big memes in the echo chamber is related to stealing photos… It seems a small a capella band created a fun/goofy song about the Web 2.0 Bubble, set to the tune of Billy Joel’s “We Didn’t Start the Fire”. The video is a montage of photos of assorted Web 2.0 personalities, logos, etc. It’s cute. I’ll embed it below (note: this is the first time I’ve EVER embedded a YouTube video!).

IANAL, so I can’t really speak to whether this use falls under “fair use” and parody laws. I think the band in question truly believed that it does and did their best to make it right once they realized that they might be in a bit of a “gray area” (read their blog post here).

Regardless, what struck me was the strident and downright venomous response from some photographers and other “artists”. It sounds exactly like the venom spewed by real estate agents towards RedFin. It sounds a lot like some movie studios and musicians when they talk about what’s happening in their industry. These people aren’t angry at just this little a capella band. They are angry at the entire world for evolving past their business model. They’re angry about becoming obsolete. How obsolete they become depends on how well they adapt to the world– not how loudly they demand that the world adapt to THEM. Off the top of my head, here are a few things that are changing the business of professional photography:

  • Cheap startup costs. Used to be that a professional photographer had to invest thousands in cameras, lenses, and development equipment. It still isn’t cheap to have good equipment, but it’s cheaper.
  • Time and expenses of developing photos is greatly reduced (thanks to digital photography and Photoshop).
  • There is a growing pile of semi-pro photographers who are happy to give away their photos or sell them royalty-free for a few bucks.ne?
  • There are great marketplaces out there for cheap/good stock photography. iStockPhoto, anyone?
  • Print media is dying. Slowly, but it’s dying.
  • The global marketplace. For many photos, you just don’t need an onshore photographer. If I want a cool close-up shot of a keyboard and mouse, there are plenty of great photographers in Eastern Europe that have probably already have taken just such a photo and are delighted to sell it for a few bucks, royalty free.
  • Is the photography/stock photo business dead? Not by a long shot, and not for a long time… But clearly there’s a shakeup in the works.

    Here’s that embedded video. If you haven’t already seen it, enjoy:

Evaluating New Product Ideas (focus on Tractability)

Evan Williams (founder of Twitter, fellow corn-fed midwesterner-turned-dotcommer, and someone I get to meet via YCombinator!) has a fabulous post on how to evaluate new product ideas. To sum up his excellent post, here is the matrix he came up with:

Tractability
Question: How difficult will it be to launch a worthwhile version 1.0?

Obviousness
Question: Is it clear why people should use it?

Deepness
Question: How much value can you ultimately deliver?

Wideness
Question: How many people may ultimately use it?

Discoverability
Question: How will people learn about your product?

Monetizability
Question: How hard will it be to extract the money?

Personally Compelling
Question: Do you really want it to exist in the world?

He follows the list by running through a few of his startups through the matrix to see how they fare.

I don’t know if Evan put it first on purpose, but I tend to think that tractability is the most important factor by an order of magnitude. Why? Because there is a pretty good chance that what you think you’re going to build and what you go to market with are radically different. Take a few minutes and ponder this outstanding quote from Fred Wilson’s “Why Early Stage Investments Fail” post:

“…Of the 26 companies that I consider realized or effectively realized in my personal track record, 17 of them made complete transformations or partial transformations of their businesses between the time we invested and the time we sold. That means there a 2/3 chance you’ll have to significantly reinvent your business between the time you take a venture capital investment and when you exit your business.”

Another great quote:

“My friend Dick Costolo, co-founder of FeedBurner, describes a startup as the process of going down lots of dark alleys only to find that they are dead ends. Dick describes the art of a successful deal as figuring out they are dead ends quickly and trying another and another until you find the one paved with gold.”

Given that you have a 2/3 chance of having to reinvent your business (or, as Costolo would put it– you have a 2/3 chance of your first dark alley being a dead end), what could possibly be more important that tractability?

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