My company is post-revenue.
It’s almost sad that I’m proud of this, but my internet company Indinero.com is finally post-revenue. In other words, people are using the product, people are paying to use it, and this marks the beginning of a long and beautiful relationship between me and the company I helped start. I’ve been rather discreet about my entrepreneurial progress, but I’ll bring you up to date with my progress:
For a little background, I founded Indinero back in March with co-founder Andy Su. In a nutshell, it’s software that helps entrepreneurs manage their finances easily. (Indinero is the Mint.com for Businesses) Our original mission was to make it easy for entrepreneurs to not only keep tabs on their expenses, but also to help them intuitively understand their finances. We got our first big break in April, when Lightspeed Venture Partners wrote us our first check. Getting the money wasn’t as “lucky” as I enjoy making it seem… it was a planned process, and we spent many hours trying to convince Lightspeed Venture Partners that we were worth funding for the summer. This included building a product, sending them our first screenshots, and having my connections reach out to lightspeed partners to give recommendations. I’ll repeat the most important thing again – they gave us money because we had built a functional prototype.
Fast forward a few months. In July, Indinero was chugging along with many alpha testers and promising feedback. Building a product for small businesses isn’t easy, and we knew that raising more money would help us grow. With the goal of more funding in mind, we decided that the smartest thing we could do to convince people of our worth was to sign up of our first paying users, with the goal of relaunching a paid product on August 1st. We missed the deadline by a few days (programming’s a bitch), but today we finally signed up several paying customers.
Having paid customers does way more than just prove investors that you’re onto something: It forces you to think about building a product that people will actually pay for. As a programmer, you’re forced to leave the confines of your comfy office to talk to prospective customers. You figure out what they want, what their pain points are, and you make it work. Something else changed, too: When we told people that we were planning on charging for our service (and that “free” wasn’t on the menu), we were taken more seriously. People treated us like a legitimate business, and it further pushed us to make something useful.
Working towards building an internet service with revenue is like an endless spiral of goodness: it makes you build a good product, which makes you money, which makes people treat you more seriously, which makes you want to work harder, which makes you build a better product. I highly recommend that more people try it.
In my selfish ploy to get your feedback on Indinero, I’m giving out 50% discounts to the first 100 entrepreneurs who are willing to be guinea pigs for new ideas and features. More info here.
August 7th, 2009 at 6:33 am
Congratulations. It’s great that you found away to monetize this early on. It is so hard to develop a web app that people want to pay for since there are so many free things out there. Seems like you did a good job of catering to a client base that has a need, but is also willing to pay for that need. I wish you nothing but luck.
I just have one question, I remember you Freemium post a while back? What made you guys decide not to go that route, starting out with an initial free product and then having levels (or pay bands) for various customers? I only ask because there are different levels of entrepreneurs, as far as capital goes and I see the freemium model working for this, but then again, if you start on that path..people may just try to use the free product and not upgrade.
Anyway, congratulations again, hopefully in the near future I will be needing a product like this.
August 7th, 2009 at 2:21 pm
Wow! This is so awesome babe!
Need any marketing help?
-Andrea
August 7th, 2009 at 2:23 pm
Awesome good to see you blog this process I’m sure it will help others go through a similar process. Congrats on the first stages of success!
August 7th, 2009 at 3:10 pm
You rock so hardcore. Congratulations! I love coming back here and seeing what you’re doing and how you’re crushing it. It’s inspiring.
August 7th, 2009 at 6:26 pm
Free makes for great lead generation, good luck figuring the optimum path to paid premium growth.
August 8th, 2009 at 12:36 am
Did you get a regular early stage round from Lightspeed or did you do their summer program where they just give you money without taking an equity share? Congrats on the revenue.
August 8th, 2009 at 9:42 am
Congratulations! We also do B2B and a lot of our customers are small businesses too. It’s hard to get a desirable product out the door, but if you once you cross that bridge you’re off to the races.
August 10th, 2009 at 1:54 pm
If I work hard, maybe one day I can grow up and be like Jessica Mah!