Game Changers – Rob Walling – MicroConf Europe 2016

The MicroConf Europe 2016 Talk Recaps can be found on the central hub page.

Website: SoftwareByRob.com
Twitter: @RobWalling
Slides:

Part 1: The Early Years (2005 – 2009)

• DotNetInvoice, WeddingToolbox, LinemanJobs, JustBeachTowels, DIYDuckBoat.com, CMS Themer
• no SaaS, most products were acquired
• Why I got into products
  • Freedom
  • Purpose
    • Personal & subjective
    • For me: learning & teaching
    • I produced/started all my content (book, blog, podcasts) in just 18 months
  • Relationships
    • Having time and headspace for friends & family
  • Stability
    • Ability to not have to worry about next month’s revenue
• Solution: Recurring Revenue

HitTail

• Took all the money I had in the bank and bought HitTail (recurring revenue)
• Full Story here
• grew it to $300,000 Run Rate
• BUT…
  • low price point
  • churn was high
  • $100 LTV
  • Google would change things every other month
• I still didn’t have Stability, because Google threatened HitTail

Part 2: Drip (2013 – 2014)

• looking for another SaaS idea
  • higher price point
  • “core business” application
  • not reliant on a single external data source
• Finding Product/Market Fit for Drip
• Started to scale well after that (recap of the talk from MicroConf Europe 2015)
• Did NOT turn a profit until March 2015
• Lots of unexpected bills made 2014 the most stressful year ever

Part 3: Drip 2015 – 2016

• Drip is making profit starting in March 2015
• Growing companies are rarely profitable
• Big question: how long am I willing to forego profit for growth?
• “$25k in a checking account, no car and a rented apartment in walking distance to my office” – Rand Fishkin @ $12.5M ARR
• My state of affairs mid-2015
  • Freedom
  • Purpose
  • Relationships
  • Stability

Part 4: Drip Acquisition

• Lesson #1: Never leave your phone unlocked with kids in the house
• We had many offers for acquisition/funding
  • 2-3 emails per month offering funding
  • several potential acquirers in 2 years
• What about funding?
  • It would cut down on monetary stress within the business
  • BUT would delay profitability for years
• All my income hinges on Drip – no fallbacks if things go down south
• “Startups are bought, not sold”
  • You get maximum $$$ when they need you
• Objections to selling
  • “My startup is my baby” – don’t get too attached
  • “Selling is selling out”
  • “What else would I do?” – teaching, writing books, angel investment
• My Deal-Breakers
  • “Sunset” Money
  • Can’t screw our employees
  • Can’t screw our customers
  • Keep doing podcasts, MicroConf, etc.

-Christoph