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Good afternoon, so today we're going to do something different. One of the things that we've learned at Y Combinator, is that one of the best ways to learn about startups is to watch other startups get advice. And so we're going to do live office hours which we've done a few times before,
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One of the things that we've learned at Y Combinator, is that one of the best ways
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to learn about startups is to watch other startups get advice.
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And so we're going to do live office hours which we've done a few times before,
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in this class, three of four times. We'll try to do three companies each time. This is Yuri, also works at Y Combinator and going to do this with me. And we're going to just give advice to three startups. You have to be very brave to do this.
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We'll try to do three companies each time.
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This is Yuri, also works at Y Combinator and going to do this with me.
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And we're going to just give advice to three startups.
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You have to be very brave to do this.
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So I'm very thankful for the startups that have agreed to do this. These are some of the people that are taking the course online. And we'll just get going.
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These are some of the people that are taking the course online.
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And we'll just get going.
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So do you want to tell us, well first do you want to introduce yourselves. Does this work? So I'm Sarah and this is my co-founder Andrew. We're building Canny. Canny helps teams collect and manage feedback from their users. Essentially, what it is is teams can integrate our product into their
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Does this work?
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So I'm Sarah and this is my co-founder Andrew.
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We're building Canny.
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Canny helps teams collect and manage feedback from their users.
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Essentially, what it is is teams can integrate our product into their
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website or mobile app and that allows their users to post feedback. Is it live? Yes. How many websites have integrated? We launched our a month ago on Product Hunt. That was pretty good traffic. We have 25 paying customers. So those are people, who have either integrated or are using us in a certain way.
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Is it live?
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Yes.
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How many websites have integrated?
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We launched our a month ago on Product Hunt.
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That was pretty good traffic.
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We have 25 paying customers.
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So those are people,
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who have either integrated or are using us in a certain way.
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But yeah, we got maybe around 500 companies from the project launch. That's great. Yeah. How much are you charging? It's a range. So on the low end we have a 2 plan which was our alternative to freemium. GPM LAUGH and it goes from 19.49, 129 from there.
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That's great. Yeah.
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How much are you charging?
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It's a range.
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So on the low end we have a 2 plan which was our alternative to freemium.
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GPM LAUGH and it goes from 19.49, 129 from there.
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It's really early and we're trying to iterate on this and figure out what our best price point is which is probably one of our main challenges right now I think. Go ahead. No, no. How did even arrive at the first set of numbers to test? Yeah, so I think the 2 one was kind of special.
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best price point is which is probably one of our main challenges right now I think.
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Go ahead.
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No, no.
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How did even arrive at the first set of numbers to test?
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Yeah, so I think the 2 one was kind of special.
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We were flip-flopping between Freemium and and Cheapium. And I think that was a good decision because it narrowed down our potential customers by a lot. And we figured that people who were not going to pay us anything were never going to pay us anything. How many of the 25 customers are on the 2 plan? Maybe, Seven. Yeah.
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And I think that was a good decision because
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it narrowed down our potential customers by a lot.
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And we figured that people who were not going to pay us anything
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were never going to pay us anything.
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How many of the 25 customers are on the 2 plan?
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Maybe, Seven.
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Yeah.
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Really, that's great. And what's the other most popular plan, is it 19? 19, we limited our 2 plan very heavily. So it's really people who are a solo founder, probably no revenue. What do you get with the pricing? I think I looked at your website, it's how many users do you have?
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And what's the other most popular plan, is it 19?
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19, we limited our 2 plan very heavily.
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So it's really people who are a solo founder, probably no revenue.
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What do you get with the pricing?
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I think I looked at your website, it's how many users do you have?
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Right, so right now we're charging by how many end users you have. That was kind of our proxy to how much value the company was going to get from our product. This is kind of a challenge, especially because we can't particularly tell how many users they have, so we're iterating on this as well.
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That was kind of our proxy to how much value the company was going to get from
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our product.
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This is kind of a challenge, especially because we can't particularly tell
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how many users they have, so we're iterating on this as well.
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What do people really love about this? Why do they use your product and not one of the many other services to accomplish the same goal? Yeah, I mean there's a lot of different values that you get out of posting and voting on features. One of them is you have there's a lot of transparencies so
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Why do they use your product and
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not one of the many other services to accomplish the same goal?
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Yeah, I mean there's a lot of different values that you get out of posting and
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voting on features.
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One of them is you have there's a lot of transparencies so
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you keep your users in the loop. A lot of current feedback solutions is email or live chat where the user sends an email, and then the company says, we'll pass it on to the team, is what inevitably happens. And then the user doesn't really know, like did my voice get heard?
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A lot of current feedback solutions is email or
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live chat where the user sends an email, and
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then the company says, we'll pass it on to the team, is what inevitably happens.
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And then the user doesn't really know, like did my voice get heard?
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And so we've heard both from teams and users that this is a great experience. Their users are happy, they know what feedback their users are giving. Versus email and live chat, which takes just a ton of time to process all these conversations. Of the people that are using it,
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Their users are happy, they know what feedback their users are giving.
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Versus email and live chat,
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which takes just a ton of time to process all these conversations.
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Of the people that are using it,
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what's the average number of questions that have been posted on it so far? Average number of questions, what do you mean by that? Yeah, so people put request or something else that they're voting on. Do you know of the 25 paying customers how many on average have had questions posted?
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Average number of questions, what do you mean by that?
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Yeah, so people put request or something else that they're voting on.
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Do you know of the 25 paying customers how many on average have had questions posted?
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Well it really depends on how many end users they have, and also how well they've implemented our tools. Like if it's less discoverable they're going to less feedback and so we've been trying to help that by giving them design advice. But like our top team probably has 300 posts.
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also how well they've implemented our tools.
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Like if it's less discoverable they're going to less feedback and so
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we've been trying to help that by giving them design advice.
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But like our top team probably has 300 posts.
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And the thing about this versus email is that you might get. If a post has 100 votes you might get 100 different emails. And so we help you save time by responding to all those 100 people at once, instead of sending individual emails back and forth.
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If a post has 100 votes you might get 100 different emails.
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And so we help you save time by responding to all those 100 people at once,
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instead of sending individual emails back and forth.
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Do you feel like you've gotten to the point where you have a product that some people really love? And at this point, if so, I guess, do you think you're at that point first? Yeah, I feel like we have a sliver of product market fit where some people are extremely happy with our product.
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some people really love?
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And at this point, if so, I guess, do you think you're at that point first?
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Yeah, I feel like we have a sliver of product market fit where some people
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are extremely happy with our product.
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And we kind of know the next steps we need to do to expand that by ten x to address a larger portion of the market. What are the steps? Integrations with other SaaS services like Intercom, Slack, Zapier, and then a better answer on mobile.
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a larger portion of the market.
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What are the steps?
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Integrations with other SaaS services like Intercom,
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Slack, Zapier, and then a better answer on mobile.
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Is the biggest challenge you face now just trying to figure out how to grow and scale this, do you think? Or is there still a lot of product work, other than sort of like integrations that are meant to drive growth? Is there still a lot of product work before you want to scale?
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scale this, do you think?
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Or is there still a lot of product work,
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other than sort of like integrations that are meant to drive growth?
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Is there still a lot of product work before you want to scale?
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There's some product work, for sure. I think the core product is pretty good, but it takes a while for our leads to get stuck on our product, because they have to integrate into their product. So it's a pretty big investment. How easy is it to integrate it? It's pretty easy. It's really easy.
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I think the core product is pretty good, but it takes a while for our leads to get
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stuck on our product, because they have to integrate into their product.
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So it's a pretty big investment.
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How easy is it to integrate it?
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It's pretty easy.
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It's really easy.
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It takes half an hour, to an hour, is what we see developers spending time on. But it's just I think we need better onboarding to convince them that this is worth doing. And so I think right now our funnel is pretty leaky, so that's what we're onboarding. What's the biggest value of that?
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But it's just I think we need better onboarding to convince them that this is
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worth doing.
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And so I think right now our funnel is pretty leaky,
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so that's what we're onboarding.
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What's the biggest value of that?
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So your biggest user has 300 questions or a couple hundred questions? Several hundred. INAUDIBLE Right, and so what's the biggest value that they see out of it? What do they tell you. Yeah, it's hard because our value add is very diverse. Like one thing is customer satisfaction. Another thing is product management, what you want to work on.
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Several hundred.
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INAUDIBLE Right, and so
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what's the biggest value that they see out of it?
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What do they tell you.
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Yeah, it's hard because our value add is very diverse.
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Like one thing is customer satisfaction.
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Another thing is product management, what you want to work on.
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Another thing is having a transparent road map, so keeping your users in the loop. And there's just all these different kind of values. There isn't one core value, which is also why it's kind of hard to. That sounds like a mistake, a mistake. Almost everyone who says, we have all these different values.
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And there's just all these different kind of values.
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There isn't one core value, which is also why it's kind of hard to.
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That sounds like a mistake, a mistake.
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Almost everyone who says, we have all these different values.
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There are all these different reasons people like it. It's really nice, if you can figure out how that all abstracts into one message. And then build all the companies sales and marketing PR around CROSSTALK One message. This is what it's about, rather than saying, there's six different reasons to use the product.
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It's really nice, if you can figure out how that all abstracts into one message.
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And then build all the companies sales and
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marketing PR around CROSSTALK One message.
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This is what it's about,
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rather than saying, there's six different reasons to use the product.
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I think one of the things that like, so when you say you have a problem with people integrating you. It's not that hard, it's just not high enough on their priority list. And there's a few ways to solve this. One way that works is to send people around and say like hey,
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when you say you have a problem with people integrating you.
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It's not that hard, it's just not high enough on their priority list.
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And there's a few ways to solve this.
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One way that works is to send people around and say like hey,
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we're going to send an engineer to come help integrate with you. And it's not that the company can't do it. It's just that you'd otherwise you'd always be at the bottom of their backlog. And that's one way. The other is if it's like their CEO tells them to go do it.
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And it's not that the company can't do it.
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It's just that you'd otherwise you'd always be at the bottom of their backlog.
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And that's one way.
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The other is if it's like their CEO tells them to go do it.
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Or they themselves decide, I gotta go do this. It's really important. And that almost never comes from a bunch of disparate messages that are a bunch of nice-to-haves. It's one thing which is, maybe in this case, I mean, it's some version of user feedback. And how if you don't have this,
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It's really important.
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And that almost never comes from a bunch of disparate
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messages that are a bunch of nice-to-haves.
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It's one thing which is, maybe in this case, I mean,
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it's some version of user feedback.
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And how if you don't have this,
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you will be iterating more slowly than your competitors. Or that your users will feel like you're more engaged with them, listening to the features that they want built. I have two big questions. One, I think back of the envelope math is always really important. And I think, I worry that this is the kind of
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Or that your users will feel like you're more engaged with them,
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listening to the features that they want built.
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I have two big questions.
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One, I think back of the envelope math is always really important.
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And I think, I worry that this is the kind of
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business where if you're mostly selling to start ups. And you're selling it a hundred bucks, is it a month or a year? A month. A month, like how big can this business actually get off of this model? Have you thought about that? We have thought about it. I mean I think, like just doing napkin math.
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And you're selling it a hundred bucks, is it a month or a year?
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A month.
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A month, like how big can this business actually get off of this model?
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Have you thought about that?
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We have thought about it.
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I mean I think, like just doing napkin math.
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I think with a startup you usually want to arrive somewhere around 100 million annual revenue. And so for us Like right now it's looking like we'd be going for 10,000 people paying us 100 a month. And does that feel doable? Maybe it was 100,000, yeah. Okay, there's a difference there. Yeah. LAUGH I mean I think the number-
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annual revenue.
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And so for us Like right now it's looking like we'd be going for
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10,000 people paying us 100 a month.
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And does that feel doable?
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Maybe it was 100,000, yeah.
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Okay, there's a difference there.
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Yeah. LAUGH
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I mean I think the number-
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I think it is 100,000 for a 100- Yeah, 100,000, sorry. Sorry, I think the number of companies that need feedback in the number of websites and mobile apps is increasing and- But do you feel there's a 100,000 steps? So, part of it, it's like, do you feel like you're going to have to own like 50
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Yeah, 100,000, sorry.
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Sorry, I think the number of companies that need feedback in
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the number of websites and
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mobile apps is increasing and- But
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do you feel there's a 100,000 steps?
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So, part of it, it's like, do you feel like you're going to have to own like 50
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of the startup market to get there? Or do you think that there's enough demand out there that you can actually get to the market without dominating the entire thing? Right. Right, I think as an aside to this, we've been getting a lot of feedback that we can actually charge a lot more.
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Or do you think that there's enough demand out there that you can actually get to
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the market without dominating the entire thing?
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Right.
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Right, I think as an aside to this,
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we've been getting a lot of feedback that we can actually charge a lot more.
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And so I think there's a few features that we can build out that will help a lot and- Do you use your own product? Do you have a- Yeah, LAUGH definitely. That's a good way to figure out if it's providing value. Again, maybe the answer is to charge a lot more, and
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Do you use your own product?
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Do you have a- Yeah, LAUGH definitely.
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That's a good way to figure out if it's providing value.
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Again, maybe the answer is to charge a lot more, and
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maybe the answer is that there are a 100,000 start ups. Maybe the answer is that you need to tweak the product in a way that you can appeal to a lot of people outside of start ups. But I think start ups almost never just do the swag on this early enough.
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Maybe the answer is that you need to tweak the product in a way that you can appeal
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to a lot of people outside of start ups.
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But I think start ups almost never just do the swag on this early enough.
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And it really informs product strategy which also gets to my next big question. This feels like the kind of service that is interchangeable, and that a lot of people can build a similar service. And if one company uses product A and another company uses product B, there's no reason for a third company to prefer A or B.
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This feels like the kind of service that is interchangeable, and
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that a lot of people can build a similar service.
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And if one company uses product A and another company uses product B,
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there's no reason for a third company to prefer A or B.
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There's no network effect, there's no monopoly. Now I can imagine ways that you could build one of those into the product, where there are sort of cross company incentives to use yours. But what is your plan to be a monopoly and not another SaaS business that just gets competed down to zero margins? That's a good question.
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Now I can imagine ways that you could build one of those into the product,
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where there are sort of cross company incentives to use yours.
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But what is your plan to be a monopoly and
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not another SaaS business that just gets competed down to zero margins?
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That's a good question.
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I think- And if you don't have an answer yet, it's also fine INAUDIBLE I mean I think, our strategy so far is to go after influencers, and these are including people who have users that would also use our product. So, for example, we go after open source projects and tools like Optimizer, for example.
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it's also fine INAUDIBLE I mean I think, our strategy so
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far is to go after influencers, and
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these are including people who have users that would also use our product.
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So, for example, we go after open source projects and
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tools like Optimizer, for example.
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Do you give it free to open source projects? Open source projects are free, yeah. As an alternative to GitHub and GitHub issues, and they're bringing in us a lot of people, I think that's a good move for us. But so far, I think our strategy is really to put our product in front of the public.
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Open source projects are free, yeah.
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As an alternative to GitHub and GitHub issues, and
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they're bringing in us a lot of people, I think that's a good move for us.
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But so far, I think our strategy is really to put our product in front of the public.
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It's powered by Canny and that's kind of where we're at with that. So, do you have any thoughts about this? One little thought. I think one thing that we've found so far is that, there are other products on the market that do this. And during our Product Hunt launch,
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So, do you have any thoughts about this?
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One little thought.
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I think one thing that we've found so far is that,
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there are other products on the market that do this.
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And during our Product Hunt launch,
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we got people coming from those products wanting to use us. And the thing that they mentioned liking about us more is design and simplicity. And I honestly feel like our product out of all the products in the market right now is the best designed and the simplest. CROSSTALK For exactly what we do.
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And the thing that they mentioned liking about us more is design and simplicity.
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And I honestly feel like our product out of all the products in
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the market right now is the best designed and the simplest.
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CROSSTALK For exactly what we do.
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I believe you that that's true, but here is the problem. I'd say like one out of three start ups I meet with says, we're like this other thing, except we're better designed, we're more beautiful, and we're simpler to use. And it may be true that you are, I believe that it is.
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I'd say like one out of three start ups I meet with says, we're like this other
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thing, except we're better designed, we're more beautiful, and we're simpler to use.
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And it may be true that you are, I believe that it is.
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But someone else can come do that same thing to you. More importantly, or not necessarily more importantly, but oftentimes you start off very simple and then you start having to build features, because you see that they're missing. And then somebody else comes in and says, we're now the simplest. But in any case, it's really good.
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More importantly, or not necessarily more importantly, but
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oftentimes you start off very simple and then you start having to build features,
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because you see that they're missing.
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And then somebody else comes in and says, we're now the simplest.
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But in any case, it's really good.
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You've built a product that people love, you've got them to pay for it. And you have a growth channel that you believe will work. That puts you in the top of few percent of all startups, so that's great. But this is the time where your biggest problem now, part of that and the one
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And you have a growth channel that you believe will work.
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That puts you in the top of few percent of all startups, so that's great.
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But this is the time where your biggest problem now, part of that and the one
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thing you should be thinking about is what can I do early to build a product that a, can eventually address of very large market. And b, how can I build some sort of monopoly? How can I build something where because this company uses my product,
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can eventually address of very large market.
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And b, how can I build some sort of monopoly?
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How can I build something where because this company uses my product,
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this other company is going to be more likely to use it, as well? And design in simplicity, although everyone says it and it's kind of true, is usually not a long term win at some point. And it may just be that once you're integrated into a company,
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And design in simplicity, although everyone says it and it's kind of true,
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is usually not a long term win at some point.
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And it may just be that once you're integrated into a company,
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you're impossible to rip out, and then you're going to win the mind share war. Right. That could be it. That's what we're seeing, actually. Yeah. A better answer, though, would be if there's some way that you can use aggregated data, or learnings, across all companies, or aggregate or share.
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Right. That could be it.
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That's what we're seeing, actually.
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Yeah.
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A better answer, though,
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would be if there's some way that you can use aggregated data,
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or learnings, across all companies, or aggregate or share.
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The kind of users that leave feedback on products tend to do it across all the products they build, they use. So there's probably like a very small percentage of users that give feedback, and they do it across all the products. So my sense is that somewhere in there, there is the strategy to build a monopoly.
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the products they build, they use.
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So there's probably like a very small percentage of users that give feedback,
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and they do it across all the products.
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So my sense is that somewhere in there, there is the strategy to build a monopoly.
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But you want to figure out what that core is and build that into the core of the product. So that you have a long-term, the principle strategy. Yeah, this is actually very interesting because we probably started at more of an aggregate level, where everyone could post feedback about anything.
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build that into the core of the product.
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So that you have a long-term, the principle strategy.
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Yeah, this is actually very interesting because we probably started at more of
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an aggregate level, where everyone could post feedback about anything.
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And that was hard, because companies weren't on board first and so. Yeah, that doesn't feel right either. Yeah, so right now we've decided to go this other way for now. But there is a possibility that there one day we're connecting all the users if they post on multiple products that use Canny. We can connect all those people,
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Yeah, that doesn't feel right either.
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Yeah, so right now we've decided to go this other way for now.
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But there is a possibility that there one day we're connecting
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all the users if they post on multiple products that use Canny.
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We can connect all those people,
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so maybe they're some potential there eventually, yeah. And why is it named Canny? LAUGH Canny was really hard to find. We went through many different names, but a core part of our product is the subdomain. And we didn't want to use something that was like get this or try this, use this. Short and sweet.
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And why is it named Canny?
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LAUGH Canny was really hard to find.
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We went through many different names, but
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a core part of our product is the subdomain.
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And we didn't want to use something that was like get this or try this, use this.
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Short and sweet.
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Yeah so something short and sweet. We got canny.io so it's not the worst, but it's not the best. You can still change, it's not too late. We can still change CROSSTALK I thought it was a play on uncanny Yeah, LAUGH actually they're kind of different but yeah.
828.6s
We got canny.io so it's not the worst, but it's not the best.
832.8s
You can still change, it's not too late.
834.0s
We can still change CROSSTALK I thought it was a play on uncanny
835.9s
Yeah, LAUGH actually they're kind of
837.9s
different but yeah.
839.0s
It means to make good judgment, and so I think that kind of plays in as well, but yeah. Okay, if it's working, if people remember it, if they spell it right, that's all good. Anything else you'd like to talk about? Yeah, I mean in general I think to your point about broad use cases.
843.7s
but yeah.
844.4s
Okay, if it's working, if people remember it, if they spell it right,
846.6s
that's all good.
847.2s
Anything else you'd like to talk about?
849.9s
Yeah, I mean in general I think to your point about broad use cases.
856.5s
After our Product Hunt launch it came out with a lot of people using Canny for different reasons. And so I think- Is there one reason that's surfacing? Like focusing on, yeah so I mean the top one is feature requests, which is what we expected. But also I think pricing is one of the big ones,
860.1s
different reasons.
861.2s
And so I think- Is there one reason that's surfacing?
863.6s
Like focusing on, yeah so I mean the top one is feature requests,
868.8s
which is what we expected.
871.0s
But also I think pricing is one of the big ones,
873.1s
like figuring out what our main value is. And that's what we're trying to do, we're trying to isolate that one thing. To especially market it on our homepage, how do we pull people in with that one value, yeah. Feature requests don't sound quite as good as like, User I don't know.
875.0s
And that's what we're trying to do, we're trying to isolate that one thing.
878.0s
To especially market it on our homepage,
880.9s
how do we pull people in with that one value, yeah.
884.4s
Feature requests don't sound quite as good as like,
889.6s
User I don't know.
892.4s
I would be willing to, this is the place where I believe in A B testing. I don't believe in it for everything, but in terms of messaging and communication, and what are those four words you put big on your website when people come there for the first time. This is the place I believe in A B testing.
895.5s
I don't believe in it for everything, but in terms of messaging and communication,
898.9s
and what are those four words you put big on your website when people come there for
902.1s
the first time.
902.8s
This is the place I believe in A B testing.
904.8s
And if feature requests are really what people want, then great. CROSSTALK put it right up front. If that's the thing that's working you should at least, that's at least the candidate for the right answer. All right, we should move on to the next group. Thank you so much. Thank you. APPLAUSE How's it going. Chris. Hey.
908.0s
CROSSTALK put it right up front.
909.8s
If that's the thing that's working you should at least,
911.9s
that's at least the candidate for the right answer.
913.7s
All right, we should move on to the next group.
915.2s
Thank you so much. Thank you.
916.5s
APPLAUSE How's it going.
925.2s
Chris. Hey.
926.7s
Chris. How's it going?
930.9s
By the way, I don't know what any of these companies do ahead of time. LAUGH Get a live reaction from me, so. Do you want to introduce yourself? Hi everybody, my name is Chris Beltran. I'm the CEO and Founder of. What we do is connect home owners, private property owners, and
933.0s
LAUGH Get a live reaction from me, so.
935.2s
Do you want to introduce yourself?
936.5s
Hi everybody, my name is Chris Beltran.
938.0s
I'm the CEO and Founder of.
941.0s
What we do is connect home owners, private property owners, and
945.3s
all sorts of parking lot owners to our app. And which our app does is it aggregates, essentially, their parking spaces. Let's them lease it out. The owners are able to make some passive income and the parkers are able to just go to that parking spot whenever they want to, easily and quickly.
948.1s
And which our app does is it aggregates, essentially, their parking spaces.
951.9s
Let's them lease it out.
953.9s
The owners are able to make some passive income and the parkers are able to
958.1s
just go to that parking spot whenever they want to, easily and quickly.
961.2s
So this tool was meant for specifically San Francisco, highly industrialized cities in which people need to park easier and faster rather than circling around- It's like Airbnb for parking. Essentially, yes it is. Yeah, I've wanted to see something like this happen for a long time, because it feels like in urban cities, like San Francisco,
965.3s
highly industrialized cities in which people need to park easier and
969.6s
faster rather than circling around- It's like Airbnb for parking.
972.7s
Essentially, yes it is.
973.6s
Yeah, I've wanted to see something like this happen for
975.4s
a long time, because it feels like in urban cities, like San Francisco,
978.5s
there's just not enough street parking. That is, but right now more of the issue is this is a perceptive problem or is this an actual problem? So are you live in the city right now? We are not live in the city. We are currently building out the MVP right now. Got it. Unfortunately my co-founder is not here.
980.5s
That is, but right now more
984.8s
of the issue is this is a perceptive problem or is this an actual problem?
989.4s
So are you live in the city right now?
991.5s
We are not live in the city.
992.3s
We are currently building out the MVP right now.
994.2s
Got it.
995.1s
Unfortunately my co-founder is not here.
996.2s
She's actually taking a vacation through Mexico. LAUGH I think she's doing some traveling. So, mind you, I'm not a solo founder, I do have a co-founder. That's all right. Have you been talking to homeowners in the meantime? Are they willing to rent out their parking spots?
998.3s
LAUGH I think she's doing some traveling.
999.7s
So, mind you, I'm not a solo founder, I do have a co-founder.
1003.6s
That's all right.
1007.1s
Have you been talking to homeowners in the meantime?
1009.7s
Are they willing to rent out their parking spots?
1012.2s
You know what, the funny thing is I'm actually hitting the ground running. And I'm physically going out to these homes and or private parking lots, and pitching to them my idea and say hey why don't you use our platform? This is what it's going to look like and I'm representing our mock ups
1015.3s
And I'm physically going out to these homes and or private parking lots, and
1019.6s
pitching to them my idea and say hey why don't you use our platform?
1023.4s
This is what it's going to look like and I'm representing our mock ups
1026.0s
to essentially say this is the platform that you would essentially be using. And what do they tell you? More often than not, they say this is awesome, why haven't anybody else created this? Are they willing to say hey, I'm ready to pay? Or would they pay you?
1030.0s
And what do they tell you?
1031.6s
More often than not, they say this is awesome,
1033.5s
why haven't anybody else created this?
1035.3s
Are they willing to say hey, I'm ready to pay?
1038.2s
Or would they pay you?
1039.5s
No, you would pay them, you would do a rough share with them, right? Correct. Yeah. So essentially a percentage of sales that occur when the commuter parks in their parking space, we'll collect 15, they collect 85. So can you sign them up. I mean part of the thing for you is that when you launch in a city,
1042.6s
Correct. Yeah.
1043.1s
So essentially a percentage of
1045.0s
sales that occur when the commuter parks in their parking space,
1049.2s
we'll collect 15, they collect 85. So can you sign them up.
1053.4s
I mean part of the thing for
1054.4s
you is that when you launch in a city,
1055.5s
you're going to want as much critical mass as you want for parking spots. So are they willing to sign up and say hey, my parking spot is yours the moment you're ready? Currently what we're doing is we're creating lists and we're pitching the idea to them.
1058.4s
So are they willing to sign up and say hey,
1060.0s
my parking spot is yours the moment you're ready?
1062.4s
Currently what we're doing is we're creating lists and
1064.9s
we're pitching the idea to them.
1066.2s
So essentially what we're trying to do is we're trying to curate all these homeowners and private property owners throughout San Francisco that play with San Francisco standards, because you cannot park or impede over onto the sidewalk. So obviously, there's some things that we have to do to double-check to make sure that they're completely legal. Sure.
1070.3s
homeowners and private property owners throughout San Francisco that play with
1074.7s
San Francisco standards, because you cannot park or
1077.7s
impede over onto the sidewalk.
1079.7s
So obviously, there's some things that we have to do
1082.3s
to double-check to make sure that they're completely legal.
1085.0s
Sure.
1085.8s
But otherwise, what we're doing is we're collecting data from them. And yes, they are more than willing to sign up with us. When do you think you'll launch? I pretty much project it to launch within six months, and- Why so long? Why so long? How about six days?
1088.9s
And yes, they are more than willing to sign up with us.
1091.3s
When do you think you'll launch?
1093.3s
I pretty much project it to launch within six months,
1096.4s
and- Why so long?
1098.0s
Why so long?
1099.5s
How about six days?
1100.7s
I would love to build this out in six days, but currently I'm not a technical founder, so that was, or a technical- Is your co-founder? My co-founder is technical, so she has the tools and resources and clout to build this essentially. But she's on vacation, I wish she was here. When is she back?
1104.7s
founder, so that was, or a technical- Is your co-founder?
1107.5s
My co-founder is technical, so she has the tools and
1111.7s
resources and clout to build this essentially.
1114.4s
But she's on vacation, I wish she was here.
1117.0s
When is she back?
1118.5s
She should be back within the week. A full six days after that. I know, I would love to push this. One of the things that's really hard is,
1120.7s
A full six days after that.
1121.8s
I know, I would love to push this.
1123.8s
One of the things that's really hard is,
1129.8s
Like your putting this product of yourself out there when you launch a startup and no one wants to do it until they feel like it's really good. But in six months, the world will look entirely different. And every good idea you have, someone else has.
1132.9s
no one wants to do it until they feel like it's really good.
1136.4s
But in six months, the world will look entirely different.
1138.9s
And every good idea you have, someone else has.
1140.9s
And now a lot of people are going to hear about this because we're talking about it. LAUGH Don't steal my idea. All of you, don't steal it. I mean stealing the idea is not, so it's like- MBA's for all of you. Speed and execution really matter and actually you could 10 million people the idea.
1143.1s
LAUGH Don't steal my idea.
1145.2s
All of you, don't steal it.
1147.7s
I mean stealing the idea is not, so it's like-
1151.9s
MBA's for all of you.
1153.4s
Speed and execution really matter and
1155.6s
actually you could 10 million people the idea.
1158.6s
And probably all of them would be busy with their own things. But a few of them will be interested at least and there's this issue of speed and how quickly you can build and iterate. And especially in the marketplace, there is a big first mover advantage.
1160.8s
But a few of them will be interested at least and
1164.4s
there's this issue of speed and how quickly you can build and iterate.
1167.9s
And especially in the marketplace, there is a big first mover advantage.
1171.7s
So even if it's not the version you want, my most important piece of advice to you would be to get this launched really quickly in an ugly first version. And then you'll learn so much about how to build a better version that you can go from there. It's great that you're talking to customers,
1176.5s
would be to get this launched really quickly in an ugly first version.
1182.0s
And then you'll learn so
1183.6s
much about how to build a better version that you can go from there.
1186.4s
It's great that you're talking to customers,
1187.8s
that is clearly the number one thing to go do. And getting people signed up so that you have inventory. But I would think about how you bring the launch in, even if it's a soft launch that you're embarrassed about by a lot. Yeah, especially if the problem is acute enough,
1190.0s
And getting people signed up so that you have inventory.
1192.4s
But I would think about how you bring the launch in,
1196.3s
even if it's a soft launch that you're embarrassed about by a lot.
1201.5s
Yeah, especially if the problem is acute enough,
1203.6s
if it's something that people really struggle with, finding parking spots. They won't care how pretty the app is or how ugly the app is as long as they can find the parking spots. So having something live, even if it's just a website wrapped in a little icon. That's literally what we're doing is we're targeting certain neighborhoods.
1207.0s
They won't care how pretty the app is or
1208.9s
how ugly the app is as long as they can find the parking spots.
1211.6s
So having something live, even if it's just a website wrapped in a little icon.
1217.3s
That's literally what we're doing is we're targeting certain neighborhoods.
1219.7s
So for instance, there's neighborhoods that, I'm sure you've been to San Francisco multiple times. I live there. You live there, obviously. Haight District is one of them which is severely impacted nine times out of ten, even during the week. How do you know? I've been there physically and had a check board out.
1222.3s
I'm sure you've been to San Francisco multiple times.
1223.8s
I live there.
1224.5s
You live there, obviously.
1225.4s
Haight District is one of them which is severely impacted nine times out of ten,
1230.5s
even during the week.
1231.3s
How do you know?
1232.5s
I've been there physically and had a check board out.
1234.8s
And checking the times and stand there for eight hours a day. But there are times where it does free up a little bit, but for the most part. So I understand how you're going to get the parking places on board which is I think the harder half of the marketplace.
1238.4s
But there are times where it does free up a little bit, but for the most part.
1242.5s
So I understand how you're going to get the parking places on board
1245.3s
which is I think the harder half of the marketplace.
1247.1s
But you still need people that want to park, how are you going to get those people? So what we're going to do is we're going to reach out to people during festivals. There's tons of festivals, there's outside lands. There's some that go on on Treasure Island even though as everyone knows that's out of our reach.
1249.3s
how are you going to get those people?
1251.5s
So what we're going to do
1252.2s
is we're going to reach out to people during festivals.
1255.1s
There's tons of festivals, there's outside lands.
1257.0s
There's some that go on on Treasure Island even though as everyone knows that's out
1260.6s
of our reach.
1261.7s
But there's many that happen around Golden Gate park. There's Bay to Breakers, there's tons of festivals we're going to be pitching this around. Or some type of theme, or some type of festival, some type of ball game. I worry that those A, don't happen frequently enough. And B, those are people who are not looking for
1263.8s
There's Bay to Breakers,
1265.2s
there's tons of festivals we're going to be pitching this around.
1268.6s
Or some type of theme, or some type of festival, some type of ball game.
1272.8s
I worry that those A, don't happen frequently enough.
1275.9s
And B, those are people who are not looking for
1277.9s
parking super-regularly in the city. It would be interesting if you could figure out a way to find people for who this is truly a hair on fire problem. That drive to the city every day and have to park, or live in the city and don't have a parking place.
1280.3s
It would be interesting if you could figure out a way to find people for
1283.5s
who this is truly a hair on fire problem.
1286.8s
That drive to the city every day and have to park, or live in the city and
1289.6s
don't have a parking place.
1290.8s
That does not strike me as the most urgent need, or the best way to find people who are really feeling this problem every day. Which there are a lot of, this is a great problem to be solving. I would think about how you find, I would think about other strategies to find a lot of people.
1295.1s
the best way to find people who are really feeling this problem every day.
1301.6s
Which there are a lot of, this is a great problem to be solving.
1305.0s
I would think about how you find,
1307.5s
I would think about other strategies to find a lot of people.
1310.4s
The festival thing, I just worry there aren't enough festivals and there aren't enough people at those that have this as a regular ongoing problem. You want the people who are going to be daily, or at least weekly users of this, and I bet you can come up with better ways.
1314.8s
there aren't enough people at those that have this as a regular ongoing problem.
1318.1s
You want the people who are going to be daily, or
1321.5s
at least weekly users of this, and I bet you can come up with better ways.
1325.2s
Well I think if you have feet on the ground and actually surveying the place, I would actually ask the people who are parking, why are you here? That's exactly what I'm doing. And see, so what's the feedback? Are they working there? So nine times out of ten, people are either coming into the city, so
1327.8s
I would actually ask the people who are parking, why are you here?
1329.7s
That's exactly what I'm doing.
1330.8s
And see, so what's the feedback?
1332.7s
Are they working there?
1334.6s
So nine times out of ten, people are either coming into the city, so
1337.0s
there are people that are not living in the city, obviously. because a lot of people who live in the city don't necessarily own a car, so- But they're commuting for what, are they commuting for work? They're commuting for work and sometimes they're just commuting to do some contract work. They've gotta come into the city every so often,
1339.2s
because a lot of people who live in the city don't necessarily own a car,
1342.9s
so- But they're commuting for
1343.6s
what, are they commuting for work?
1344.2s
They're commuting for work and
1345.2s
sometimes they're just commuting to do some contract work.
1347.5s
They've gotta come into the city every so often,
1349.0s
there's people that come in for meetings. A whole host of reasons that they come in. I mean these people are driving today and parking today, maybe they'll do it more if it's easier. But can you put signs in the parking lot, in the parking spaces, that say to park here, download this? Yeah, essentially, just- LAUGH That'll work.
1351.6s
A whole host of reasons that they come in.
1353.4s
I mean these people are driving today and parking today,
1355.5s
maybe they'll do it more if it's easier.
1357.1s
But can you put signs in the parking lot, in the parking spaces,
1359.8s
that say to park here, download this?
1362.0s
Yeah, essentially, just- LAUGH That'll work.
1363.6s
So when that time comes, and which we do have a product launch. I'm going to create maybe little signs at first, something cheap just to get started. Maybe laminated or whatnot, to put it on those places where it needs to be CROSSTALK You need something, in a lot of cases it is an impulse buy, right.
1366.5s
I'm going to create maybe little signs at first,
1369.1s
something cheap just to get started.
1371.7s
Maybe laminated or whatnot, to put it on those places where it needs
1374.9s
to be CROSSTALK You need something,
1376.7s
in a lot of cases it is an impulse buy, right.
1378.9s
They are going to be looking for parking, they didn't find the street parking and now they're ready to buy whatever it is you're giving them. I have a general thought for you about this kind of marketplace. Airbnb is a really good business because if you own a space and
1381.9s
now they're ready to buy whatever it is you're giving them.
1384.8s
I have a general thought for you about this kind of marketplace.
1389.3s
Airbnb is a really good business because if you own a space and
1393.2s
you're renting it out you can only put it on basically one platform, if you're going to use the instant book feature. And if you're a guest, you really care if you get this particular house or this particular house. They're not interchangeable. Ride sharing, if you're a driver you can drive from any service.
1395.9s
if you're going to use the instant book feature.
1397.8s
And if you're a guest, you really care if you get this particular house or
1402.8s
this particular house.
1403.7s
They're not interchangeable.
1405.8s
Ride sharing, if you're a driver you can drive from any service.
1408.7s
You turn the apps on and off. But if you're a passenger you don't care much which car you get in. And it's really nice if you can somehow have the former kind of marketplace, where there's not just perfect substitution and everyone is switching between each service depending on price.
1409.7s
But if you're a passenger you don't care much which car you get in.
1413.5s
And it's really nice if you can somehow have the former kind of marketplace,
1418.2s
where there's not just perfect substitution and
1420.8s
everyone is switching between each service depending on price.
1424.3s
And so if you can do something with, I think this is like actually a very big and important insight about marketplaces that most people miss. And if you can do something where people can only list their space on your marketplace because you're going to have around the clock Instant booking or
1428.7s
important insight about marketplaces that most people miss.
1431.7s
And if you can do something where people can only list their space on your
1435.0s
marketplace because you're going to have around the clock Instant booking or
1438.1s
something, that would be really important to figure out early. And a very valuable tweak that doesn't sound that big but it's actually a huge difference to the long-term liability of the business. I think that's a good take on it. So right now as far as the 24-hour booking and what not, I want to give the property
1442.1s
And a very valuable tweak that doesn't sound that big but
1446.2s
it's actually a huge difference to the long-term liability of the business.
1450.4s
I think that's a good take on it.
1454.7s
So right now as far as the 24-hour booking and what not, I want to give the property
1458.4s
owners or homeowners the ability to set their own times. Sure. So sometimes maybe some owners, or property owners, say we'll just say Wells Fargo. They probably set theirs a little bit later after business hours are closed. But do you think that you'll be able to get businesses to give up their parking spots as well?
1461.0s
Sure. So sometimes maybe some owners, or
1463.4s
property owners, say we'll just say Wells Fargo.
1467.0s
They probably set theirs a little bit later after business hours are closed.
1470.0s
But do you think that you'll be able to get businesses to give up their
1471.9s
parking spots as well?
1472.6s
I would love to reach out to businesses to give out their parking spots as well. Interesting, because I was thinking that this is more around homeowners or people who have extra spaces on their own. But businesses could be really interesting. It's a very different sale now because now you really have to go and
1475.2s
Interesting, because I was thinking that this is more around homeowners or
1479.0s
people who have extra spaces on their own.
1481.3s
But businesses could be really interesting.
1482.9s
It's a very different sale now because now you really have to go and
1485.7s
convince whoever the property manager is or somebody else to actually do it. Correct, correct. Go ahead. Sorry, just one thought here, which is I would pick one of them in the beginning, because you won't be able to sell to both. Yeah, so I especially wanted focus on possibly residential and
1489.0s
Correct, correct.
1491.1s
Go ahead.
1491.9s
Sorry, just one thought here, which is I would pick one of them in the beginning,
1496.1s
because you won't be able to sell to both.
1498.0s
Yeah, so I especially wanted focus on possibly residential and
1501.4s
private lots first, and then start slowly building out. Do you have any sense yet for pricing? Yes, so LAUGH I pretty much wanted to model this after the meters in San Francisco. And right now the meters are all timed. SFpark actually did a survey in which they increased meter pricing. So similar to variable-based pricing, so
1504.4s
Do you have any sense yet for pricing?
1506.1s
Yes, so
1506.7s
LAUGH I pretty much wanted to model this after the meters in San Francisco.
1512.3s
And right now the meters are all timed.
1514.6s
SFpark actually did a survey in which they increased meter pricing.
1518.8s
So similar to variable-based pricing, so
1521.1s
that's what we're going to pretty much mimic. Essentially we want to be competing with the meters themselves for residential. For private lots obviously we're going to be competing with private lot prices. So we're just going to base our model off of the model that San Francisco has already done. And people would be able to park,
1523.6s
Essentially we want to be competing with the meters themselves for residential.
1528.1s
For private lots obviously we're going to be competing with private lot prices.
1531.3s
So we're just going to base our model off of the model that San Francisco has
1535.2s
already done.
1536.8s
And people would be able to park,
1538.4s
I assume, as long as they want and the property owner is INAUDIBLE. As long as the property owners set their times to say, eight to five, they can park eight to five and it'll be on an hourly rate. What's the legal situation of this? I assume it's okay if it's private property.
1542.6s
As long as the property owners set their times to say, eight to five,
1544.7s
they can park eight to five and it'll be on an hourly rate.
1547.6s
What's the legal situation of this?
1549.0s
I assume it's okay if it's private property.
1551.1s
It is legal, it is completely legal. Okay. I looked into it, I talked to an SF law attorney, specifically for San Francisco themselves, and I've asked them, can I? It's kind of a funny question. LAUGH Yeah. The story goes is I called them up, I said, hey my my dad is bedridden but
1552.8s
Okay. I looked into it, I talked to an SF law
1555.8s
attorney, specifically for San Francisco themselves, and I've asked them, can I?
1561.5s
It's kind of a funny question.
1562.5s
LAUGH Yeah.
1563.2s
The story goes is I called them up, I said, hey my my dad is bedridden but
1567.6s
he's not able to work, he doesn't get enough from social security, and essentially he needs to make some passive income. Is it okay if we could rent this space out to our neighbor? And they said, as long as it's his house we don't see any issue with it. Chris. That's great.
1572.1s
essentially he needs to make some passive income.
1575.3s
Is it okay if we could rent this space out to our neighbor?
1577.4s
And they said, as long as it's his house we don't see any issue with it.
1582.0s
Chris. That's great.
1584.1s
Again this is a really good idea, if you don't move fast, it won't work. So I think it's always important as a startup to know what the number one biggest problem in front of you is, for you it's not shipping quickly. And so just get this working in one neighborhood as quickly as you possibly can.
1588.1s
So I think it's always important as a startup to know what the number one
1592.0s
biggest problem in front of you is, for you it's not shipping quickly.
1596.1s
And so just get this working in one neighborhood as quickly as you
1599.4s
possibly can.
1600.2s
Even if it's hacked up and doesn't look that great. Okay. Any other questions you want to discuss? I think that's it. Great. I'm pretty good. I'm excited to try it out. Awesome, thank you. Thank you. Email us when you want. APPLAUSE
1604.0s
Okay. Any other questions you
1605.4s
want to discuss?
1606.1s
I think that's it.
1607.6s
Great. I'm pretty good.
1608.7s
I'm excited to try it out.
1609.4s
Awesome, thank you.
1610.7s
Thank you. Email us when you want.
1612.1s
APPLAUSE
1622.8s
How's it going? I'm Yuri. Phillip. Nice to meet you. I'm Sam. Hi, I'm Emma. Yuri, nice to meet you. Hi. Nice to meet you. What do you guys do? So, I'm Phillip. I'm Emma and we're MoonlightWork. So we're building a marketplace for software engineers and
1623.9s
I'm Yuri. Phillip.
1624.9s
Nice to meet you. I'm Sam.
1625.6s
Hi, I'm Emma. Yuri, nice to meet you.
1626.5s
Hi. Nice to meet you.
1627.3s
What do you guys do?
1630.8s
So, I'm Phillip.
1633.4s
I'm Emma and we're MoonlightWork.
1635.3s
So we're building a marketplace for software engineers and
1638.8s
designers to match up with companies who need them ten hours at a time. So specifically ten hours at the time? Yeah, I think we'll start with ten hours at a time but some companies want more than that and some people want more work. So if they want more time, they can have more time.
1643.3s
So specifically ten hours at the time?
1645.3s
Yeah, I think we'll start with ten hours at a time but
1647.6s
some companies want more than that and some people want more work.
1650.4s
So if they want more time, they can have more time.
1654.0s
Is this launched, up and running? We have a prototype up and running, we haven't had anybody else use it. But both of us have both- Built projects for other people? That's a great way to start, that's good. Yes, so we started it because we have this need ourselves. How do companies find you?
1655.9s
We have a prototype up and running, we haven't had anybody else use it.
1659.9s
But both of us have both- Built projects for other people?
1662.3s
That's a great way to start, that's good.
1664.0s
Yes, so we started it because we have this need ourselves.
1666.6s
How do companies find you?
1669.3s
There's been a variety of them, some of them have been like friends of friends that heard that we were doing contract work, and would come in and assign jobs through there. Another thing is when we shut down our last company, we open-sourced all the code and so we had people coming in and
1672.4s
of friends that heard that we were doing contract work, and
1675.1s
would come in and assign jobs through there.
1677.2s
Another thing is when we shut down our last company,
1679.8s
we open-sourced all the code and so we had people coming in and
1682.9s
paying us to deploy that code for them on their own servers. They found us through GitHub basically. What kind of projects are people having you build so far? So far it's a lot of people who have a very specific need. So they're like I need an expert in this language, or
1685.9s
They found us through GitHub basically.
1687.4s
What kind of projects are people having you build so far?
1691.6s
So far it's a lot of people who have a very specific need.
1694.4s
So they're like I need an expert in this language, or
1697.2s
an expert that knows how to build this thing really well. And so they're looking for someone who there's not going to be much on boarding. They'll just going to be able to jump in and do a project. Why did they choose you instead of something like Upwork or Top Pal or
1699.3s
And so they're looking for someone who there's not going to be much on boarding.
1702.2s
They'll just going to be able to jump in and do a project.
1704.5s
Why did they choose you instead of something like Upwork or Top Pal or
1708.1s
one of the other kind of outsourcing houses? Yeah, I think the biggest reason is because we're promoting it as something that experts are working on. So these aren't just anyone in the world who wants to make 15 an hour. This is someone who maybe works at a Google or an Uber and they want to make
1710.5s
Yeah, I think the biggest reason is because we're
1714.0s
promoting it as something that experts are working on.
1716.7s
So these aren't just anyone in the world who wants to make 15 an hour.
1721.0s
This is someone who maybe works at a Google or an Uber and they want to make
1724.5s
a bunch of extra money on the side, but they're really good at what they do. So you're going to have to actually curate these people then. Is that something you're already doing? Yeah, that's what we're starting to do and I think that's going to be the biggest barrier for us,
1728.3s
So you're going to have to actually curate these people then.
1731.2s
Is that something you're already doing?
1732.9s
Yeah, that's what we're starting to do and
1735.1s
I think that's going to be the biggest barrier for us,
1737.6s
is being able to make sure that these people are really quality workers. How much are you charging for a ten hour project? So the contractors set their own rates and then we're handling the invoicing and charging 15 on top of that. So but true marketplace. Correct, yeah. Yeah.
1741.8s
How much are you charging for a ten hour project?
1744.3s
So the contractors set their own rates and then we're handling the invoicing and
1748.4s
charging 15 on top of that.
1750.5s
So but true marketplace.
1752.6s
Correct, yeah.
1753.2s
Yeah.
1755.2s
Other than quality, given that this is clearly a good business so a lot of people want in it and a lot of people are already in it. How will you become the marketplace where everyone goes for contracted engineering help? I think we can speak from our own experience and say, like,
1759.9s
a lot of people want in it and a lot of people are already in it.
1764.2s
How will you become the marketplace where everyone goes for
1767.9s
contracted engineering help?
1770.0s
I think we can speak from our own experience and say, like,
1772.0s
there have been times in the past when we have, like, student loans and would have worked extra time every week to pay them off. And there's not really marketplaces out there where people who want over 50 or 70 per hour can find short-term projects that they can do on the side.
1774.4s
would have worked extra time every week to pay them off.
1776.9s
And there's not really marketplaces out there where people who want over 50 or
1780.9s
70 per hour can find short-term projects that they can do on the side.
1785.4s
So that's true on the developer side, but how do you get the companies to come to you and say, when we need an expert, we go to you guys? We're working on a couple different ways of matching. But I think the short of it is that there are very specialized needs that some companies have.
1789.2s
to you and say, when we need an expert, we go to you guys?
1792.0s
We're working on a couple different ways of matching.
1794.5s
But I think the short of it is that there are very specialized needs that some
1797.4s
companies have.
1798.1s
And it doesn't even have to be core to the product. Sometimes it's like, I need to set up a development environment, or I want a landing page and our design team is focused on an app, or something like that. I wonder if you want to become known as the place to go to for
1800.9s
Sometimes it's like, I need to set up a development environment, or I want
1804.8s
a landing page and our design team is focused on an app, or something like that.
1808.2s
I wonder if you want to become known as the place to go to for
1812.0s
a particular set of skills. Not for every expertise, but in the beginning just a particular set where they just go to you and then you open up additional verticals as you go. And for that, we're looking at open-sourced projects. So an open source project is something where it takes a lot of knowledge,
1814.1s
Not for every expertise, but in the beginning just a particular set where they
1817.8s
just go to you and then you open up additional verticals as you go.
1820.8s
And for that, we're looking at open-sourced projects.
1823.8s
So an open source project is something where it takes a lot of knowledge,
1826.7s
a lot of experience to kind of understand the ins and the outs. And so we tested that with our own open source projects and got projects coming through there and people signing up. And I think that matching people based on very specific, open source projects.
1829.1s
And so we tested that with our own open source projects and
1831.8s
got projects coming through there and people signing up.
1835.0s
And I think that matching people based on very specific, open source projects.
1837.8s
Not saying a Ruby programming language but something like the Mongo DB bindings for Chef, for something very specific like that. I think the insight of going after high-end work and also for people who are just looking for smaller pieces is really good. I wonder if you could pick projects that particularly need that.
1843.4s
Chef, for something very specific like that.
1848.9s
I think the insight of going after high-end work and also for
1853.3s
people who are just looking for smaller pieces is really good.
1857.8s
I wonder if you could pick projects that particularly need that.
1863.2s
Like projects that are harder to build and take less time, sort of need specialized skills and are not the normal, like, I just need people to grind through this. That would strike me as a good initial focus. Mm-hm. What's the biggest problem in front of the company right now? I think it's making sure that matching,
1867.6s
skills and are not the normal, like, I just need people to grind through this.
1871.9s
That would strike me as a good initial focus.
1876.5s
Mm-hm.
1877.3s
What's the biggest problem in front of the company right now?
1879.9s
I think it's making sure that matching,
1882.0s
I mean obviously every marketplace has that issue. But making sure that the people we have are worth what they're trying to get charged for. because we want to set a limit on how much people can charge per hour so we don't have a higher. Well not people that are, yeah, minimum, sorry.
1885.0s
But making sure that the people we have are worth what they're trying to get
1889.2s
charged for.
1890.0s
because we want to set a limit on how much people can charge per hour so
1893.9s
we don't have a higher.
1895.5s
Well not people that are, yeah, minimum, sorry.
1897.6s
So we want people who are making more money per hour because that's going to bump up the quality of the work. Right, how much do you two charge per hour? We're both trying to charge about 150 an hour, and we're finding, so
1900.5s
bump up the quality of the work.
1901.8s
Right, how much do you two charge per hour?
1904.3s
We're both trying to charge about 150 an hour, and we're finding, so
1908.9s
we've had about 300 people sign up so far, and we asked them what their hourly rate is, and it's Usually from about 70 to 200 per hour. The interesting thing is that it's not so much how much the people are charging, it's more of the perceived value on the other companies, right?
1912.8s
is, and it's Usually from about 70 to 200 per hour.
1917.3s
The interesting thing is that it's not so much how much the people are charging,
1920.1s
it's more of the perceived value on the other companies, right?
1922.5s
So if the company's saying these developers are worth 150 or 200 an hour, they are happy to pay that, but you need to convince them that they're worth that money, regardless of what the developers think they're worth. And how do you do that? How do you a convince a company that your developers are worth 200 an hour
1925.8s
200 an hour, they are happy to pay that, but you need to convince them that
1930.4s
they're worth that money, regardless of what the developers think they're worth.
1933.6s
And how do you do that?
1934.8s
How do you a convince a company that your developers are worth 200 an hour
1937.9s
if they can go somewhere for 25 an hour? Yeah, and I think right now for the MVP what we're trying to say is we are personally experts in these fields and we are making sure that the quality of talent we have is up to that par.
1940.6s
Yeah, and I think right now for
1942.3s
the MVP what we're trying to say is we are personally experts in these fields and
1946.8s
we are making sure that the quality of talent we have is up to that par.
1950.6s
I think that we need to figure out how we're going to scale that. I also think, in addition to figuring out how to scale it, you need to figure out how you're going to communicate it, like the website really has to give across the impression with testimonials from well known customers or
1952.5s
I also think, in addition to figuring out how to scale it,
1956.0s
you need to figure out how you're going to communicate it, like the website really
1958.7s
has to give across the impression with testimonials from well known customers or
1962.0s
whatever that like, these are the best people. In terms of setting the prices, one thing we have consistently seen is when you ask a user to set their price limit in the marketplace. If you give them guidance, if you say like based on what you've said here's what we
1964.8s
In terms of setting the prices, one thing we have consistently seen is
1969.5s
when you ask a user to set their price limit in the marketplace.
1973.6s
If you give them guidance, if you say like based on what you've said here's what we
1977.6s
recommend or here's the range we recommend, 85, 90 of users will do that. And so if you want to set, if you want to sort of move people towards a specific range because you want people that are at that quality level, you can probably do that.
1981.7s
And so if you want to set,
1983.4s
if you want to sort of move people towards a specific range because you
1988.2s
want people that are at that quality level, you can probably do that.
1993.0s
So we did that, our sign up form says the average hourly rate is 70 per hour and it also says, if you have your annual salary, that's about what your hourly rate is. So 100,000 per year is about 50 per hour. When do you think you'll have the first external developer live, right?
1998.1s
70 per hour and it also says, if you have your annual salary,
2003.4s
that's about what your hourly rate is.
2006.8s
So 100,000 per year is about 50 per hour.
2008.8s
When do you think you'll have the first external developer live, right?
2014.3s
So that's not the two of you. So we're working basically on building out invoicing right now. And so that'll be the next week or two probably. Do you need, like can you do it more manually in the beginning? Just so that you can see someone who's not you, because you obviously don't have invoicing, right?
2016.4s
So we're working basically on building out invoicing right now.
2020.1s
And so that'll be the next week or two probably.
2023.1s
Do you need, like can you do it more manually in the beginning?
2025.4s
Just so that you can see someone who's not you,
2027.6s
because you obviously don't have invoicing, right?
2030.5s
So we've been doing this ourselves and there's just a lot of moving parts. There's sending contracts back and forth. There's like setting up bank accounts, there's getting companies to pay. And when we talk to the potential contractors who want to be on the platform, some of their biggest concerns are if
2033.5s
There's sending contracts back and forth.
2035.6s
There's like setting up bank accounts, there's getting companies to pay.
2038.8s
And when we talk to the potential contractors who want to be on
2042.0s
the platform, some of their biggest concerns are if
2044.5s
I'm only working 10 hours per week how much time does it take to ramp up? Do I need to talk with the customer and how long does it take until I get paid? Yeah. I would try and hack all of that in a way and
2047.8s
Do I need to talk with the customer and how long does it take until I get paid?
2050.9s
Yeah. I would try and
2052.1s
hack all of that in a way and
2053.5s
do it behind the scenes manually right now just to get the developers developing. Take all the pressure away from them, so that they can just start interacting with the customer and if you need to manually process it do that. But like it's so important that someone who's not you starts doing this on your platform.
2058.4s
Take all the pressure away from them, so that they can just start interacting with
2061.2s
the customer and if you need to manually process it do that.
2064.2s
But like it's so
2065.0s
important that someone who's not you starts doing this on your platform.
2070.1s
And then when they do, for the first ones especially, I would be super involved just to learn what the issues are. It may be that people aren't sure they're allowed to do this and they need help looking at their current employment contracts. It may be that people need training to know how to engage with a customer.
2073.3s
I would be super involved just to learn what the issues are.
2077.9s
It may be that people aren't sure they're allowed to do this and
2081.2s
they need help looking at their current employment contracts.
2083.6s
It may be that people need training to know how to engage with a customer.
2087.8s
And like how much they should communicate. There are all of these things, many of which will surprise you and your guesses on many will be wrong. And the way you find this out is to just, like for the first lets say like 20 users
2089.6s
There are all of these things, many of which will surprise you and
2093.7s
your guesses on many will be wrong.
2095.9s
And the way you find this out is to just, like for the first lets say like 20 users
2101.0s
like go sit with them or at least go talk to them all the time. I would almost think about it like become their agent, right? Like if they were a talent and you are an agent for them and you take care of everything for them, and answer all their questions.
2103.7s
I would almost think about it like become their agent, right?
2106.1s
Like if they were a talent and you are an agent for them and
2108.6s
you take care of everything for them, and answer all their questions.
2111.7s
And then you're going to just start building that into the product. But in our experience almost every time when the people think they know, like where the break points are going to be, or what they need to teach their users, they're almost always wrong. But you find it out really quickly.
2114.4s
But in our experience almost every time when the people think they know,
2118.6s
like where the break points are going to be, or
2121.2s
what they need to teach their users, they're almost always wrong.
2125.2s
But you find it out really quickly.
2126.4s
It's like, you don't need a giant sample set to start hearing the common concerns people have at every stage in the process. And then you just knock those off one at a time. And that is a way I think you can differentiate from other coding talent marketplaces that don't do this.
2131.1s
concerns people have at every stage in the process.
2135.1s
And then you just knock those off one at a time.
2137.6s
And that is a way I think you can differentiate from other
2141.9s
coding talent marketplaces that don't do this.
2145.1s
And if you can figure out, like if you can be the person that makes it so that people who want a little extra income, but don't know how to go be a freelancer learn, and if that becomes your reputation, that'll be a great way to get the top talent in the field.
2148.8s
that people who want a little extra income, but
2151.4s
don't know how to go be a freelancer learn, and if that becomes your
2155.0s
reputation, that'll be a great way to get the top talent in the field.
2161.0s
One of the other, just an idea, which you may or may not want to pursue. But if you want to be known as the experts in the field, see if you can get any experts to actually use your platform, right? Through your network or somewhere else or get someone who's well known on
2163.9s
But if you want to be known as the experts in the field,
2166.5s
see if you can get any experts to actually use your platform, right?
2169.8s
Through your network or somewhere else or get someone who's well known on
2173.5s
a particular Niche area, and have them sign up on your platform and do projects on your platform, if they're willing to. Yeah. So what's your biggest problem right now? Us personally? The company. LAUGH In this stage it's often one and the same. Yeah. I think it's more like just getting the machinery up.
2176.9s
do projects on your platform, if they're willing to.
2179.8s
Yeah.
2180.7s
So what's your biggest problem right now?
2182.8s
Us personally?
2185.8s
The company.
2186.6s
LAUGH In this stage it's often one and
2191.2s
the same.
2192.2s
Yeah.
2193.0s
I think it's more like just getting the machinery up.
2197.6s
Like if we were to manually take payments, my biggest concern would be that 10 months down the line, I'm going to have to manually calculate 1099s. But you're not going to be 10 months down the line. You need to get to the next two months. Yeah. Right? Yeah. Yeah.
2202.3s
10 months down the line, I'm going to have to manually calculate 1099s.
2207.2s
But you're not going to be 10 months down the line.
2209.4s
You need to get to the next two months.
2211.1s
Yeah.
2211.7s
Right?
2212.2s
Yeah. Yeah.
2213.4s
I would say to go along with that, the reason we feel like we have to have some sort of payment thing set up is because there's so many laws around how you can pay people, and like kind of the logistics of all that and paperwork that needs to be gone through.
2216.3s
have some sort of payment thing set up is because there's so
2219.0s
many laws around how you can pay people, and
2220.9s
like kind of the logistics of all that and paperwork that needs to be gone through.
2224.6s
So I think you are right we need to do those first couple ones to know what those are. But I think we're both like- Is there not just some other startup that you can use that handles invoicing really well? Well when you- It is complicated, your- We're using- Or just like an accountant that can help you.
2227.5s
those are.
2228.1s
But I think we're both like- Is there not just some other startup
2231.1s
that you can use that handles invoicing really well?
2233.7s
Well when you- It is complicated, your-
2235.1s
We're using-
2235.7s
Or just like
2236.2s
an accountant that can help you.
2237.9s
Yeah, do you want to answer it? Yeah, so we're using Stripe Connect which handles everything including like the 1099s. But there's no turn key invoicing system built on top of that right now. Yeah, I get that. I really do get that but I still feel like it's so, I get that feeling as a developer
2239.7s
Yeah, so we're using Stripe Connect which handles everything including
2243.5s
like the 1099s.
2244.6s
But there's no turn key invoicing system built on top of that right now.
2249.3s
Yeah, I get that.
2250.6s
I really do get that but I still feel like it's so, I get that feeling as a developer
2255.3s
all the time where it's like, if only I have this built, I would be ready to go. But it's so much more important to actually find out if you can, like even if you have the platform built, there is a chance that people won't start using it. And you'll only know that when you do the nonscalable things.
2258.2s
But it's so much more important to actually find out if you can, like even if
2261.2s
you have the platform built, there is a chance that people won't start using it.
2264.1s
And you'll only know that when you do the nonscalable things.
2267.2s
That's one of the things we drive home almost every single office hour session, which is just do the nonscalable things, do it manually. Don't worry about 10 months down the road. The 10 months down the road it's a new company. It will look very different than it is today.
2270.7s
which is just do the nonscalable things, do it manually.
2273.4s
Don't worry about 10 months down the road.
2275.0s
The 10 months down the road it's a new company.
2277.6s
It will look very different than it is today.
2280.0s
But today it's so important to do the nonscalable things. And we're just talking about a small handful of users. Like you don't have to bring on, everyone's like well my problem is if I do this nonscalable thing, 2000 users will sign up tomorrow. You should be so lucky.
2283.6s
And we're just talking about a small handful of users.
2286.0s
Like you don't have to bring on, everyone's like well
2289.0s
my problem is if I do this nonscalable thing, 2000 users will sign up tomorrow.
2292.7s
You should be so lucky.
2293.4s
And I'll have to deal with them and that is not what's going to happen. The, It's a slightly worn instinct to say that my biggest problem is that I haven't built this one piece of the software yet. Not that my biggest problem is how I'm going to get those 2000 users.
2297.7s
The, It's a slightly worn instinct to say
2302.9s
that my biggest problem is that I haven't built this one piece of the software yet.
2307.4s
Not that my biggest problem is how I'm going to get those 2000 users.
2311.7s
So what we're focusing on basically is the invoicing right now. It's not people logging in or anything like that. It's just like being able to take a credit card or contact details right now. Well again, if that's the one thing you want to do, I would get that. CROSSTALK My
2315.6s
It's not people logging in or anything like that.
2317.7s
It's just like being able to take a credit card or contact details right now.
2321.7s
Well again, if that's the one thing you want to do, I would get that.
2325.6s
CROSSTALK My
2330.9s
answer to that question about your biggest problem, I'm not worried about the fact that you'll be able to get people that need developers to build something. There's a lot of people that have an idea for an app. The thing that I worry about is every once, so often witnessing the idea of
2335.9s
that you'll be able to get people that need developers to build something.
2340.9s
There's a lot of people that have an idea for an app.
2345.5s
The thing that I worry about is every once, so often witnessing the idea of
2350.4s
I'm going to get these great developer to sort of build stuff for other people. And it has been so hard to actually do that because the reasons the people have thought they're going to get the developers, or the sort of assumptions and developers know how to do this well have just been so wrong.
2354.7s
And it has been so hard to actually do that because the reasons the people
2360.9s
have thought they're going to get the developers, or the sort of assumptions and
2365.5s
developers know how to do this well have just been so wrong.
2368.9s
And so you still like, you won't notice your own problems because you've thought about this a lot. And I think like, you may find out that invoicing doesn't even need to be built the way you think it needs to be built, because there's something fundamental about the model that's going to change.
2370.7s
you won't notice your own problems because you've thought about this a lot.
2375.8s
And I think like, you may find out that invoicing doesn't even need to be built
2380.7s
the way you think it needs to be built,
2383.2s
because there's something fundamental about the model that's going to change.
2386.5s
But getting people you don't know or you don't know well, to sort of build projects on a platform, I think that's a really important step. I agree with that, I would just add in that the idea came from a prior company where we didn't have- That's great.
2390.8s
to sort of build projects on a platform, I think that's a really important step.
2398.2s
I agree with that, I would just add in that the idea came from
2402.2s
a prior company where we didn't have- That's great.
2404.7s
The time to go hire people and we started hiring part time people, people who were like friends of friends, things like that. And so we started to do a lot of firsthand research like that. No, I think that's great. That's actually super important. Because it means you have the pain and you understand the pain.
2407.2s
people who were like friends of friends, things like that.
2409.5s
And so we started to do a lot of firsthand research like that.
2413.6s
No, I think that's great.
2414.4s
That's actually super important.
2416.0s
Because it means you have the pain and you understand the pain.
2419.3s
But it's still like, Sam and I are just kind of driving to the same thing. Which is just it's so critical to get someone who has nothing to do with your previous business or your current kind of core business that wants to start using it. That makes sense. Any other issues you'd like to talk about?
2422.6s
Which is just it's so
2423.8s
critical to get someone who has nothing to do with your previous business or
2427.4s
your current kind of core business that wants to start using it.
2431.0s
That makes sense.
2432.0s
Any other issues you'd like to talk about?
2434.0s
Any other questions? I don't think so. I think that's our main thing that we know we need to do right now. Great, that's super exciting. And how did you decide about 15 is the amount to charge? I think that's another thing we need to test out but we feel like that's a number
2436.8s
I don't think so.
2437.7s
I think that's our main thing that we know we need to do right now.
2440.3s
Great, that's super exciting.
2441.7s
And how did you decide about 15 is the amount to charge?
2446.3s
I think that's another thing we need to test out but we feel like that's a number
2450.1s
that's not crazy for businesses to pay on top of something. Like my roommate's a recruiter and she gets 30 off the top of all of their salaries, but it's also enough for us to not have too many people to start with and be able to start testing things out.
2453.3s
Like my roommate's a recruiter and she gets 30 off the top of all of their
2458.6s
salaries, but it's also enough for us to not have too many people to start with and
2463.8s
be able to start testing things out.
2465.3s
Is that a price that you're going to charge on top of the hourly rate, or is that just going to be blended in to the hourly rate? Yeah, so if somebody's 70 an hour, we'll add 15 to that. Sorry, 100 an hour we'll add 15 to that. Right.
2468.2s
is that just going to be blended in to the hourly rate?
2470.3s
Yeah, so if somebody's 70 an hour, we'll add 15 to that.
2473.8s
Sorry, 100 an hour we'll add 15 to that.
2475.5s
Right.
2476.3s
And this is a good problem to have in the future. What will prevent people from, once they work with someone they like, just hiring them off the platform and not paying you? I think that's another thing that a lot of developers and designers have pointed out to us.
2478.7s
What will prevent people from, once they work with someone they like,
2482.5s
just hiring them off the platform and not paying you?
2485.3s
I think that's another thing that a lot of developers and
2488.5s
designers have pointed out to us.
2490.4s
And I think we want to make sure that the tools inside of the platform are keeping people there, so it's so easy for them to get working, keep work and they can do this on the side. So building internal tools that allow people to work remotely and us, contract workers? Yeah. Will be another thing.
2494.4s
people there, so
2495.3s
it's so easy for them to get working, keep work and they can do this on the side.
2499.4s
So building internal tools that allow people to work remotely and
2502.7s
us, contract workers?
2503.8s
Yeah. Will be another thing.
2504.7s
That's another thing that works well about the short term projects. Yeah. All right. Great, thank you very much. Thank you. Thank you. APPLAUSE Nice to meet you. Thank you. You too. Yeah. So format wise, that was an experiment. Is that something you'd like us to more of in the class? Was that useful? More regular lectures, yes, yes?
2507.5s
Yeah.
2508.1s
All right.
2508.9s
Great, thank you very much.
2509.8s
Thank you.
2510.3s
Thank you. APPLAUSE
2514.8s
Nice to meet you.
2515.4s
Thank you. You too.
2515.9s
Yeah.
2516.7s
So format wise, that was an experiment.
2520.4s
Is that something you'd like us to more of in the class?
2522.7s
Was that useful?
2523.6s
More regular lectures, yes, yes?
2526.5s
Some middle, okay. We'll do some more about them. Great, thank you very much. Thank you, Eric. Yeah. APPLAUSE
2527.2s
We'll do some more about them.
2528.9s
Great, thank you very much.
2529.8s
Thank you, Eric.
2531.3s
Yeah.
2532.1s
APPLAUSE
