Started with a two-person tech support firm then transitioned to software development, creating JIRA as a breakthrough product.
Utilized creative marketing strategies like Google AdWords and in-person events to attract customers and generate revenue.
Focused on building user-friendly software solutions based on their needs, adopted flexible pricing, and emphasized team empowerment for growth.
Deep dives
The Transition to Building Software
Mike and Scott transitioned from their two-person tax support company to a software development company, focusing on development tools like JIRA. Initially, the pricing strategy for their software was not optimized, with JIRA selling for $800 for unlimited usage for one year. Despite challenges, they needed to sell at least one copy a week to sustain the business.
Marketing Strategies and Growth Tactics
In the early stages, Mike and Scott utilized various marketing tactics to promote their software, including online advertising through Google AdWords, and guerrilla marketing techniques such as distributing flyers at tech conferences. They even provided beer at a live podcast event to attract attendees. Despite limited resources, they managed to generate revenue and slowly grow their customer base.
Evolution of Product Development and Success Milestones
Mike and Scott focused on building software solutions that they needed themselves, later realizing the wider market demand for similar tools. Their commitment to consistent updates and user-friendly features set them apart in the industry. The flexibility of their pricing model and dedication to customer service helped them secure pivotal sales, marking the transition from a small-scale business to a scalable enterprise.
Building Complexity over Time
The early days of the application development involved continuously adding functionality over many years, leading to complexity. Those who understood and embraced this complexity became dedicated fans who could efficiently solve various company problems at a low cost. The initial focus was on enhancing features rapidly, resulting in intricate systems. Despite efforts to simplify later, the emphasis remained on maintaining power alongside simplicity.
Network Effect and Team Dynamics
The concept of the network effect, where a product can self-propagate its usage, was vital to the company's growth. Emphasizing team dynamics over individual contributions, the company aimed to empower teams to excel collectively. Offering applications free for teams allowed for seamless collaboration and value realization, leading to widespread adoption within large companies. The focus on empowering teams to solve problems efficiently underscored the company's growth and success.
In 2001, Mike Cannon-Brookes sent an email to his college classmates in Sydney, asking if anyone was interested in helping him launch a tech startup after graduation. Back then, entrepreneurship wasn't a popular career path in Australia; and Mike's only taker was Scott Farquhar, a fellow student who shared Mike's passion for computers and his frustration for the corporate grind. Together they launched Atlassian, a two-man tech support service that they managed from their bedrooms at all hours of the night. Unable to make money, Scott and Mike decided to pivot and sell some of the software they'd developed for themselves. Out of that grew Jira, a project-management tool that's used in all sorts of endeavors, from pizza delivery to the exploration of Mars. Today, Atlassian is valued at over $50 billion and Scott and Mike are Australia's first startup-to-IPO tech billionaires.