Startups For the Rest of Us Episode 661 | Millions in Revenue As a One-Person Software Company
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May 16, 2023 Mike Perham, founder of Sidekiq, shares insights on building a multimillion-dollar software company solo. He discusses transforming Sidekiq from an open-source project into a profitable venture through a smart open-core model. Mike reveals the decade-long journey that led to his 'overnight success,' emphasizing the importance of customer feedback and community engagement. He also dives into the challenges of hiring skilled engineers and keeping pace with competitors while staying true to customer needs.
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Open-Core Sells Predictable Revenue
- Open-core lets you keep an open source core while selling packaged commercial features that many teams prefer to buy rather than build.
- Pricing must balance perceived value and accessibility to create many predictable, small customers instead of a few risky large ones.
Turn Support Burden Into A Job
- Mike turned a support burden into a sustainable job by deciding to charge for commercial support and features instead of burning out from free support.
- He intentionally built a business so maintaining the project became his full-time dream job rather than unpaid labor.
Package Features, Not Just Licenses
- If licensing sales fail, try packaging new features as paid add-ons and sell a commercial bundle instead.
- Use existing checkout/payment services to avoid building billing infrastructure and open for business quickly.