My question is, without having been venture funded for a period of time, would Gumroad still be able to $350k/mo now?
During the time Gumroad had a team of engineers, designers, etc., they shipped a lot of features, made improvements and presumably had a decent advertising / marketing budget. Gumroad likely wouldn't have reached the point where it is today product and awareness wise if it had just been one 'indie hacker' grinding away.
> So I built Gumroad. Fast-forward over seven years and we're doing about $350,000 in revenue monthly, helping creators earn over $5,000,000 a month.
The $5m they process is not gross revenue to Gum Road since they're not the beneficial or legal owners of the $5m in payments received. Their X% share of that $5m is their gross revenue.
I understand that more cash isn't always the best way to build software, but if the CEO is good (and in this instance, he is) then more cash mostly helped building the current product.
'I started Apple as a weekend project and now it's making 1B/mo'
'I started Google as a weekend project and now it's making 1B/mo'
How the company was started is completely irrelevant to the outcome and it's clearly an 'entreporn' clickbait title.
Gumroad raised millions to get started and it took 7 years to get to the point where they are now. And 350k/mo in revenue doesn't even mean that they are profitable.
If you are an (aspiring) entrepreneur, don't compare yourself to the typical story posted on IH.
Perfect plan is minimizing work while maximizing income over a long career. Those that figure out how to do that will never share their secrets.
Cleary they didn't know that they should have learned serverless, functional programming, and then iterated through 4 different front end frameworks before they actually built the app.
Low expectations for this one.
Gross profit: $135K
Still not regular profit / earnings / bottom line, which is what people tend to mean by 'made'. To get that from gross profit you have to deduct overhead which is probably quite a lot here.
Almost all projects start small. I am a solo founder and my "venture" also started as a Python script I wrote over the weekend to help with my own investing. But it's taken a lot more work since then to actually make it accessible and useful for people who are not me.
The real question is did he finish and make significant revenue from that weekend version? It looks like a heavily VC funded startup that did not produce the growth at par with the funding. For a solo company, this would be terrific. For a VC one, probably mediocre. Not too bad, but it can be deceptive to other entrepreneurs reading this as "inspiration".
I know a lot of people selling gfx stuff (mostly 3d stuff like shaders and models) through it but no one selling musical assets, and I'd like to know if it is a good platform for this kind of content.
Or if you know somewhere else that might be a better fit for this kind of content, please share.
(Just for the sake of it: I make techno/house/psytrance with lots of inspiration from chiptunes/vgm music)
Anyone here can share an experience?
just for the sake of curiosity, this is the kind of sound i produce: http://www.soundcloud.com/flipbit03
So he just created that thing with 22h effort and 7 years later it makes 350000$/month?
Thats really grim advice. Spamming people sucks but do it until you gain momentum.
People might have been jaded by spam already at that point, but they are probably way more jaded now. Spam filters have also gotten alot more aggressive. Just because that worked in the past does not mean it will again.
Likewise, SMB SaaS competition is alot more intense these days. Even if you get somebody's attention, they will likely have alot of options to compare you to.
Distribution is tough.
What is risk in this context and how is it quantified as a dollar amount? Is that an amount allocated for returns/chargebacks/fraud?