Announcing SMS Hooks

I’m going to keep this one short, but I’ve got 2 important things to announce today.

1. Announcing SMSHooks

It’s up, SMSHooks has a landing page! I’ve got a basic pitch, a quick screenshot, and some features spelling out how the service can help businesses.

It’s purposely very basic, but just enough to see what kind of interest there is for businesses who use Chargify, Stripe, and Shopify and want to connect with their customers via SMS.

2. Start Small, Stay Small eBook – A Giveaway

As I mentioned in the previous post, I bought, and quickly read Start Small, Stay Small, the fantastic book by serial entreprenuer Rob Walling.

This book is so chock full of insight, and actionable advice, I want to be able to share it. As such, I will be giving away several extra copies that I bought.

How do I get my copy?!

I offer 2 ways to get yourself a copy of this fantastic resource:

  1. Throw down $19-25 and buy it. Seriously. More than worth the money.
  2. Email me, and give me honest, insightful feedback on my business idea, SMSHooks. I’ll enter everyone who emails me into a drawing and give out a few copies to the winners.
    Note: the feedback does not have to be positive; just honest.

What’s next?

That’s it for this week. I’m happy to have a landing page up, and I’ve already solicited some fantastic feedback. I’m going to continue working to drive traffic to the site, and see how I can help people with their eCommerce businesses.

I’m looking forward to hearing from you, and excited to continue working and sharing my progress.

A Mindset Shift

This undertaking has been much more than I imagined, even already. There’s an old saying that I refer to from time to time.

It’s not what you know you don’t know, it’s what you don’t know you don’t know that will get you.

Shifting My Mindset

Over the weekend, I read Start Small, Stay Small (I also bought a few extra copies that I’m going to be giving away), and so much of it really blew my mind.

Focusing On the Product

Here’s a common scenario ever since I learned even the most basic programming task. I’m sitting at work or at home using a piece of software, and I think to myself, “I could totally make this better.”

I know, completely arrogant, and a little ridiculous, but tell me you haven’t done the same! Tell me you haven’t sat using Quickbooks for some reason and thought to yourself that if you ever had the time, you could write a better solution for business owners to keep their books.

What’s the second thought?

“Intuit made $4.2 BILLION dollars in 2015. Imagine what I could make with a better product?!”

I start thinking of the features Quickbooks has but doesn’t need; what it needs but doesn’t have; how unintuitive (no pun intended) the interface can be. Give me an uninterrupted year, and I’ll meet you at the billionaires club.

Make a better product, and people will line up to pay for it.

I know it’s unfair to disparage a perfectly good and extremely profitable company, but my point is that I’ve always been focused on the product. I imagine what database tables are needed, how you would code little portions, what the menu headings should read, etc.

Never once do I think of marketing, or advertising, SEO, business partnerships, or sales teams. After this weekend, I realized that this is why Intuit is so successful. They put the lion’s share of their time and energy into getting people to buy their software.

Learning What You Don’t Know

It has slowly been sinking in, but it’s hard to argue that the product is the least important part of running a business. If people don’t buy your product, who cares how much better it is?

If I’m being honest, here’s how I really imagined this process going. Code up an app, email some people, throw them a free invite, get a mention or two from prominent bloggers, and watch the service grow. If the product is superior, people will talk about, tell their friends, and everyone will switch over.

Now I have a glimpse of why I saw a fat ZERO for sign-ups when I’ve launched products before.

I’ve only been vaguely aware that SEO, search keyword rankings, marketing, advertising, sales funnels, and partnerships exist, but have had no clue how important they are to your success.

This is worse than learning a new programming language, or database, because I don’t have the transferable skills or vocab to even understand the concepts right now. I have full confidence that I’ll learn it quickly, but I just feel like I keep putting more books into my Kindle queue.

At some point, I know I have to just say that I know enough and get to work, but I want to give myself a better chance of success from the jump.

My first step towards success is a realization that I have to focus less on the product. I have to become the sales guy, the SEO guy, the marketing guy.

I’m learning a lot and feeling a mix of being completely overwhelmed with how far I have to go, but at the same time being excited about a new challenge and learning experience.

Any Tips?

Got a favorite book or blog that will help? Know the best SEO girl in the biz? Share your thoughts below or shoot me an email.

As always, I appreciate you sharing your own valuable time to read and interact. If there is anything that I can help with, please reach out.

Realizing Your Value

I want to share a quick story, and how it really smacked me across the face with a realization of how often we leave money on the table as developers. I hope that by the end of this post, we’ll all feel less weird/guilty/embarassed about charging an appropriate amount of money for the value we provide.

When thinking about charging money for my skills, there are too many instances I completely disregard the value of what I’m able to do.

What I can do in an hour, may take someone years to accomplish.

How many hours have we all spent learning to code, reading books and blogs, watching screencasts, pouring over APIs?

Don’t forget these! We have invested the time, energy, and money in ourselves. And why do we make investments? For future payoff!

With that, on to my story.

A Call List

A guy I know helps run events, and like most events, people wait until the very last minute to confirm whether or not they’re coming. Despite countless emails, cough, cough, some people just don’t act.

So, a few days before, he ends up having make phone calls to everyone to ensure that they received the message that the deadline is very quickly approaching. He doesn’t like dropping people from an event without providing every opportunity for them to confirm. Nothing like having an angry participant yelling about how they didn’t receive any notices of a deadline because they don’t check that email address anymore.

So, anyway, he’s telling me how there’s a huge list and how he’s going to be paying a few people to sit and make phone calls all weekend, and into the next week.

He’s not exactly great with computers, and as I’m sitting there listening, he also asks me for some help formatting an Excel spreadsheet so that the callers can be more efficient with calling and marking whether or not the call was answered.

“Sure. Email it over, and I’ll clean it up before I leave today.”

A Wizard Appears

So, I’m sitting there looking at this list of just under 1,000 phone numbers and thinking about how long these people are going to have to be sitting there calling each person, and repeating a script.

As a fellow developer, I know what’s burning you up inside right now… This is the ideal case for automation.

I have a Twilio account and a few minutes. I pull out my iPhone, record a voice memo of the information each person on the call list needs, and within no more than 20 minutes total, I shoot off an automated call.

I also included my colleague’s number…

A few minutes later, he walks in with a confused look on his face. He received the phone call.

“How did you do that…?”

“Oh, well… Everyone on that list received the same message. All of the calls are done.”

I may as well have made a 737 jet disappear; the magic was the same in his eyes. I had achieved wizard status.

The Fail

The next question is, what should we charge this person? The total Twilio fees ended up at about $11.00 or so, so I figured $20.00 or $25.00 is good. It didn’t take me much time or effort, and that more than covered what I’m actually paying in fees.

Fair right?

WRONG

This person was ready, willing, and happy to spend hundreds of dollars to pay a few people to make all of these calls for him. I just saved him countless hours, and quite a bit of money. As quick as I said $25.00, I could have said $250.00 and he wouldn’t have flinched for a second.

If I spent some time and really broke down how much time and money I would save him, I could probably convince him to pay much more than even $250.00.

Understanding Our Value

So, what’s the true value of our work? The mistake I continually make is to sit and start thinking of an hourly rate, how long something will take, what’s the “fair” price to them, will they think I’m asking too much, etc. There’s a flood of questions I ask, when the answer is very plain and clear.

My work is worth whatever someone is willing to pay.

Most people I know aren’t willing to just give their money away. I know I’m not. We all calculate what something is worth to us, and if it’s worth it, we pay it. We make our decision based on the value a product or service provides us.

My guess is that I could charge $100.00 a month to automate these calls. I could write the script once, spend $11.00 in Twilio fees every now and then, and end up well ahead at the end of the year.

If I came across a website offering call services at $100.00 a month, I’m passing without even considering it. The value isn’t there for me. I could do it myself for much less, with very little time invested.

But, I know of at least one person already who would be entering his credit card this second at $100.00 a month for this. The value of automating these calls is well worth $100.00 a month to him. By paying for this service, he ends up ahead in money and time, a great value.

Wizards Don’t Pay for Magic!

The next time you’re ready to undercharge, or do something for free because it’s “easy,” remember this. Just because this magic flows through your hands typing on a keyboard, not everyone has been trained in these spells. What you would be utterly unwilling to pay, may be a great deal for someone else.

Anytime you can alleviate a pain point, save time, and save money for someone, the value you provide is whatever they’re willing to pay. If you can gain someone one more customer who provides a lifetime value of $1,000, then charging $500 is a great proposition no matter how much time or effort it takes you to accomplish the task.

No need to feel weird charging a fair amount when both parties benefit.

What About You?

Have you ever left money on the table because you failed to charge based on the value you provide?

Please share your story in the comments, or shoot me an email.

Week 1 Review

Week 1 is in the books, and I really can’t believe it’s already Friday! I’m consistently amazed at how fast time can go, and how poorly I still estimate how long something will take.

Without further ado, here are the answers to the questions I’m committed to answering weekly.

1. What did you do this week to make your business better for your customers?

This is a difficult question to answer at this stage because the “business” doesn’t really exist. I’m still in the validation phase, and trying to flesh out that I’m going to have a product to sell.

In the short term, that’s a non-answer, but I think it will make things better for the business long-term because I’ll have a better idea of what customers want and need.

2. What have you done to acquire more customers than last week?

As mentioned in my last post, I’m actually talking publicly about the business. I’ve emailed a few people in the space, gotten good feedback, and even got a nice tweet from Alex Turnbull of Groove. This was really exciting for me as the Groove blog was really one of the biggest inspirations for me to start this project.

I also had an interesting bit of feedback on the level of my goal from Peter Cooper — a prolific educator and curator for anyone unfamiliar. His take was that the goal of $1,000 in MRR is too low. He felt that by shooting for a more ambitious target, I may fall short but still land beyond my initial conservative hopes.

This is really something I’m still thinking over. On the one hand, I want to be conservative and have a realistically achievable goal. On the other, I’m still a dreamer and believe that this could turn into more. I’m definitely willing to move on this, but want to hear your opinion as well.

3. What did you do well that you should repeat?

I’m getting more comfortable cold-emailing people, and just putting myself out there. It can be intimidating to offer something up that you’re unsure about, but I’m starting to realize that there really isn’t any downside. Any potential embarrassment I thought I might have felt hasn’t been felt at all.

4. What did you do poorly that you should reduce?

I need to make it easy for people to offer feedback without taking too much of their time. I started to get discouraged when I would email someone and not get an instant response, or when I would publish a post and ask for “feedback” and not receive any.

First – Unless you’re on the mailing list, it wasn’t simple or obvious that I would love to have an email from you. I have since added my email address to the blog layout, and will start asking for emails.

Second – I added Disqus comments to each post to allow readers to post anything they’ve got there.

Finally – I need to start asking specific questions, and offering a way for people to respond quickly and easily. “What do you think?” or “What’s your feedback?” aren’t great questions.

5. What do you hope to do by next week?

I want to find someone who says whether they would pay for this product. I want to reach out to a few firms who develop with Shopify and Stripe to solicit their feedback. I need multiple people to tell me, “yes,” “no,” or “maybe.”

Everything in my bones wants to hop into a console and type: rails new but I’m going to resist until I know that a market exists.

Bonus: What can I do for you?

I’ve spent a lot of time asking things of my reader, but I want to make sure that I’m answering the questions you have. Want to know how I come up with business ideas? Want to know where I’ve fallen on my face before? Want me to help validate your ideas?

Email me! I’m committed to reading and responding to each email I receive (for now).

That’s all I’ve got this week, but plenty more to come.