

Ask HN: Publish Startup Revenue Numbers? - blantonl

I've seen a number of startup and private companies lately participate in the process of posting their revenue and profit numbers for their businesses.  I sense that reason these organizations publish their revenue and profit numbers to emphasize their success - and I enjoy reading these postings and outlines.<p>In my case, I run a rather large online community that generates revenue from the "Fremium" model in addition to license revenue, advertising, and other sources.<p>So, my question to the HN community is: What advantages and disadvantages do you see in publishing this information to your community and the world?  Are you concerned that some folks may view this information in a negative light?  Would you expect an uptick in conversions to paid models when revenue numbers show that "others are doing it?"<p>In my case, I've always held my revenue and profit numbers close, but I'm curious as to other's experiences and concerns.<p>Thanks,
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patio11
_What advantages and disadvantages do you see in publishing this information
to your community and the world?_

It makes for good linkbait, gives you a quick cut-through-the-noise hook
(utility of that declines sharply with exposure), and especially for solo
entrepreneurs I think it sort of helps with the crushing social isolation
we're otherwise prone to.

People I respect (and respectfully disagree with) have said that it promotes
small-time thinking, encourages competitors to come eat your lunch, and
complicates your professional dealings with parties who may be concerned that
you cannot stuff the genie back in the bottle. (For example, potential
acquirers).

I would not expect any substantial increase in conversions from publishing
numbers, since the people who are most interested in them are your
professional peers rather than your customers.

~~~
blantonl
So that begs an important question.. where would/should you best publish your
private corporation's revenue and profit numbers if you chose to? To your
userbase? The media? Hacker News? :) The user base will ultimately see the
information at some point, and I'm trying to understand _their_ reaction to
the information.

~~~
patio11
_The user base will ultimately see the information at some point, and I'm
trying to understand their reaction to the information._

I think you probably overestimate how much your userbase cares about you,
unless you have cultivated an unusually close, personal relationship with
them.

I mean, many of the companies that _you_ do business with publish all their
financial information four times a year. Have you ever gone through, e.g., a
Google earnings report because its _just so important_ to you? (Substitute
with another company if you are not actually a Google customer.)

~~~
blantonl
_I think you probably overestimate how much your userbase cares about you,
unless you have cultivated an unusually close, personal relationship with
them._

There in-lies the issue.. this project started many years ago as a platform
for a small hobby related concept to a major business operation today. Our
revenue model started from donations and ultimately moved to the fremium
model. All along the way I have been intimately involved with the user base,
and still to this day I am directly involved with the userbase.

There are many long time members of the site that to this day believe that
their subscriptions "support" the site's operations vs. puts food on the table
for my family and pays my salary (many don't know I've moved on to run this
business full time).

~~~
tptacek
You obviously don't want to publish your financials. So don't. Patrick doesn't
get to read Matasano's financials either. Most people don't publish their
numbers, and many of them have very good reasons not to.

He's still probably right: your customers don't care about your numbers.

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blantonl
If you wonder what brought this on, see the following HN post:

<http://news.ycombinator.com/item?id=1028418>

Thanks,

