Finally I made it

[DaRK9]

How could that possibly be profitable (and scalable)?

"5% Equity"

It's on the pricing segment.

 

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[Perry Rico]

"5% Equity"

It's on the pricing segment.

1. This is not profitable, but we will achieve profitability in the following:
- Brand recognition
- Maintenance work

 

[DaRK9]

1. This is not profitable, but we will achieve profitability in the following:
- Brand recognition
- Maintenance work

Sounds like you are hoping to build the next Instagram, Snapchat, Vine. Why else would you bother with Equity? You can charge a monthly fee for all that.

I would use your service for MVP, then hire a team with no equity stake after testing.

 

[Perry Rico]

Sounds like you are hoping to build the next Instagram, Snapchat, Vine. Why else would you bother with Equity? You can charge a monthly fee for all that.

thank you for the comment.

We are not building a next instagram or snao chat, we are building brand. maintenance revenue is boring!!! so being part of them big or small makes things life more exciting for us

 

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[Rachel Akito]

Congratulations! This is very nice. It is always good to hear good experiences like this. Keep it up and keep sharing the blessings to your team!

 

[Perry Rico]

Sounds like you are hoping to build the next Instagram, Snapchat, Vine. Why else would you bother with Equity? You can charge a monthly fee for all that.

I would use your service for MVP, then hire a team with no equity stake after testing.

Your input made me think, yes true... They can also opt to go for the plan 2500 for MVP 0 equity. more input is very welcome

 

[Jon L]

I write software for a living, so when I first saw the 'MVP for $700' thing, I thought, 'poor guy...he'll learn.' But, after I saw the 5% equity, I think this could go somewhere.

I've built one MVP for a client for a lot more than $700. It was a difficult process that I won't go into on a public forum. You will need to develop a lot of processes to make things go more smoothly. A few thoughts, in no particular order:

1) Set clear expectations at every step of the way - in WRITING
2) additional effort on your part should result in increased equity, or some significant payment - setting up a successful marketing campaign is worth quite a bit per hour of effort.
3) process to help advise clients when their idea is failing... (they will blame you)

 

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[Perry Rico]

I write software for a living, so when I first saw the 'MVP for $700' thing, I thought, 'poor guy...he'll learn.' But, after I saw the 5% equity, I think this could go somewhere.

I've built one MVP for a client for a lot more than $700. It was a difficult process that I won't go into on a public forum. You will need to develop a lot of processes to make things go more smoothly. A few thoughts, in no particular order:

1) Set clear expectations at every step of the way - in WRITING
2) additional effort on your part should result in increased equity, or some significant payment - setting up a successful marketing campaign is worth quite a bit per hour of effort.
3) process to help advise clients when their idea is failing... (they will blame you)

Hello,

this is a very helpful advice from a person who had been in the battle. Thank you. ill keep this in mind.

Just to add summary:
700 - 5% 2 key features
1500 - 5% 3 key features
2500 - 0% 5 key features (no equity)

 

[Jon L]

Hello,

this is a very helpful advice from a person who had been in the battle. Thank you. ill keep this in mind.

Just to add summary:
700 - 5% 2 key features
1500 - 5% 3 key features
2500 - 0% 5 key features (no equity)

I'd keep the 5% equity in the $2500 version. $2500 is CHEAP for a piece of software, even if it only takes you a day to put together. You're selling not just your time, but access to the process you've built that creates MVP's that are more likely to succeed than if the customer just went to a random programmer.

 

[Perry Rico]

Hello Everyone,

I just wanted to share our first PIVOT.
Our initial unique selling proposition was "We will build your app for 700 USD in 7 days". Yes, it did built traffic and got few customers. However; it was sending the wrong message.

We changed the message to "Convince us your app idea is worth our time and we will build it for 700 USD in 7 days". That is actually the message I want from the start which I fail to communicate .

I think this new message is more clear, the old one though our goal is our new message it sounded like a hard sell

 

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[mws87]

Convince us your app idea is worth our time and we will build it for 700 USD in 7 days

Hmm.. if that's your sales copy word-for-word, I would change it. I'm no sales/marketing wizard, but I feel something along these lines would be more inviting.

"Have a great app idea worth building?..." <-- of course everyone has an app idea they think is worth building. "...let us build it for you!" <--- link them to your sales page explaining why their time is too important to spend building an app and demonstrate how you are there to help. You might want to add in "Only $699 for a limited time!" or 700 if you prefer. Perhaps strikeout a "regular price" of $999 to better help instill urgency in your prospective clients.

Like I said, I'm no copy-master or anything, but something as simple as that can make a huge difference. "Convince us it's worth our time" may discourage people, it's going to cause them to second guess, "shit, maybe these guys won't be into it. they seem too busy!" etc.

EDIT - wanted to add, you can still follow your same approach, just perhaps word it a bit differently. Sometimes small adjustments in dialogue can make all the difference in the world.

 

[Perry Rico]

Hmm.. if that's your sales copy word-for-word, I would change it. I'm no sales/marketing wizard, but I feel something along these lines would be more inviting.

"Have a great app idea worth building?..." <-- of course everyone has an app idea they think is worth building. "...let us build it for you!" <--- link them to your sales page explaining why their time is too important to spend building an app and demonstrate how you are there to help. You might want to add in "Only $699 for a limited time!" or 700 if you prefer. Perhaps strikeout a "regular price" of $999 to better help instill urgency in your prospective clients.

Like I said, I'm no copy-master or anything, but something as simple as that can make a huge difference. "Convince us it's worth our time" may discourage people, it's going to cause them to second guess, "shit, maybe these guys won't be into it. they seem too busy!" etc.

EDIT - wanted to add, you can still follow your same approach, just perhaps word it a bit differently. Sometimes small adjustments in dialogue can make all the difference in the world.

@msw87 his inout makes sense to me. hopefuly others can help me develop the tagline. The business model is there, the tagline is what is missing.

 

[Perry Rico]

Basically I need a tagline that communicate to people that "we will back and help you build your app for 700 usd if we find it worth pursuing". I dont want people getting an impression we are freelancing company as we are not.

Vision:

• To be a company famous in startup community who help entrepreneurs bring into reality their life changing idea.
  

Mission:

• To find a promising app worth pursuing that will help change the life of human in the planet
  

Unique Selling Proposition

• We help people launch and build their awesome app idea for 700 dollars in 7 days hassle free so that they become the CEO of their own startup business

 

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[mws87]

Basically I need a tagline that communicate to people that "we will back and help you build your app for 700 usd if we find it worth pursuing". I dont want people getting an impression we are freelancing company as we are not.

Vision:

• To be a company famous in startup community who help entrepreneurs bring into reality their life changing idea.

Mission:

• To find a promising app worth pursuing that will help change the life of human in the planet

Unique Selling Proposition

• We help people launch and build their awesome app idea for 700 dollars in 7 days hassle free so that they become the CEO of their own startup business

See, you've got the right idea man. "Show us why your app is worth developing" could be in there somewhere. Like I said, I'm no marketer or anything, was just trying to offer feedback. On the other hand, I checked out your facebook page and I really like the cover image + the posts you guys have. Have you tried an ad campaign on FB yet?

Wish I could help with a tagline, unfortunately I'm probably one of the worst when it comes to taglines haha. Just test some different things out for monitored periods of time and you'll begin the see which way to go.

 

[Bigguns50]

I like it. I feel the "Convince us" part and the price point will draw people in. And..the 7 days.
To me, "Convince us" sends the message that you won't take just anyone (whether you will or not).
Wonder if you could advertise a list of people, ideas, etc., or just a number of people you turned down.

Anyway...I'll be watching.

 

[Perry Rico]

Hi,

Sharing some update. We had a recent partnership with this startup company.

 

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[Deleted35442]

How could that possibly be profitable (and scalable)?


I think you misunderstood the whole concept of TMF .

Guy asks for 5% equity in addition on his site. One exit in OP's portfolio could be millions. Another group I know called http://www.coventure.vc/ offers a similar proposition. They will fund you a couple thousand, do your dev work, and ask for equity in return.

@Perry Rico It's not bad. I might be in touch on something, but you'd need to be open to negotiation on equity. Not even accelerators like YC ask for much more than what you're asking and fund you 120K, give you 3 months, and a demo day for Y Combinator to shop their companies at their latest batch. I'd advise you early on to be flexible with what equity you are demanding upfront with this.

 

[TonyStark]

This is a great idea! I was trying to develop an app recently using Craigslist but the the thing that bothered me the most was how different one engineers estimate was from another. Anyways, so what bothered me most was that they wouldn't tell me from the start how much it would cost to develop said app. I could've used something like this. Rep +

 

[TonyStark]

Searched for you. Can't find you. PM me the site / link and I'll pass it on to a client.....

He has a facebook page.

 

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[Perry Rico]

This is a great idea! I was trying to develop an app recently using Craigslist but the the thing that bothered me the most was how different one engineers estimate was from another. Anyways, so what bothered me most was that they wouldn't tell me from the start how much it would cost to develop said app. I could've used something like this. Rep +

Hi,

Please visit our facebook page and website. I am avoiding to promote here but we have 5 paying clients.
3 successfully delivered.
2 in progress
1 gave us 5% equity.

You can see their video of the app in our FB

 

[Perry Rico]

Guy asks for 5% equity in addition on his site. One exit in OP's portfolio could be millions. Another group I know called http://www.coventure.vc/ offers a similar proposition. They will fund you a couple thousand, do your dev work, and ask for equity in return.

@Perry Rico It's not bad. I might be in touch on something, but you'd need to be open to negotiation on equity. Not even accelerators like YC ask for much more than what you're asking and fund you 120K, give you 3 months, and a demo day for Y Combinator to shop their companies at their latest batch. I'd advise you early on to be flexible with what equity you are demanding upfront with this.

Hi,

Thank you for your reply.
The 5% applies to newly / non existing product. So basically we are asking 0 value in exchange for future gain. For existing entity, things can always be discussed.
Please send me private message. I am avoiding to promote here but you can see testimonial videos in our facebook and website

 

[Perry Rico]

Hello,

Sharing an update of my venture. We had successfully implemented a platform that helps American Soldier transition from military to civilian as they near retirement. It is a platform that leads them the things that they must accomplish prior to retirement.

Again, we were true to our promise--develop prototype in 7 days.

Here is the video:

 

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