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Feb 16, 2019 18:30:15

The slow product ramp

by @swizecteller | 457 words | 🐣 | 116πŸ’Œ

Swizec Teller

Current day streak: 0🐣
Total posts: 116πŸ’Œ
Total words: 32303 (129 pages πŸ“„)

Some fun stats from product sidehustle land πŸ‘‡

Since March 2015

2695 hours

1.8 hrs/day average

3-ish products

~2800 sales

$139,208 revenue post fees

$81,767 expenses

$21/hour πŸ€”

This must be why most people share only the revenue numbers #open

Now the obvious question: Why would anyone do this?

Well for starters it's still better than a coding job back home. My first job building websites was for $7/hour.

That was in high school.

I eventually got better jobs, yes. Mostly thanks to moving into freelancing, being picky about clients, and choosing to work for foreign clients (primarily US startup land) whenever possible.

That got me to about $70,000/year. It was great. Lived like a king.

Median wage in Slovenia is around $25,000/year by the way. That was my environment.

So at about $70k I was making bank.

But I soon realized that selling your time doesn't scale. There's only so much time you can sell.

Even with productized consulting, you're still doing the work. You have to sit down and do the things. Your only way to scale is charging more.

Charging more has limits too. At some point clients are gonna be like "Yeah no we'd rather hire a team of people we don't care how good you are or how much competition there is for your time"

And even then. If you can't do the work, you don't get paid. This creates all sorts of weird incentives.

Imagine taking a vacation when a day of your time is worth $5000. Or $10,000.

Pretty hard right?

Products don't suffer from this problem. It doesn't matter what your product is, a SaaS, a book, a course, or something else. They all follow the same laws.

Products provide value when you aren't working.

That means you can make money when you're not working.

And that's when everything changes.

If you buy my book or course (or read a blog), I don't have to be there. You're getting value from me while I'm working on the next thing, or sweating at the gym, or anything really.

My value to society is no longer bound to time I spend working.

Now this whole value-detached-from-time concept, it follows the laws of compound returns.

First you operate at a loss. You're putting in the work and nothing happens.

Also known as the SaaS ramp of death.

But every blog you post you write, every course you launch, every book you publish, every customer you get. They build on one another. They lead to more sales, more ideas, more things you can make.

Everything compounds.

And if all goes well, eventually, with some luck, you make more money from products than you ever could from selling your time.

That's the beauty of it. That's what makes the initial pain worth it.

Originally published at twitter.com

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