javier soltero: the first million is the hardest
DESCRIPTION
ccording to Accompli CEO and former Redpoint Ventures EIR Javier Soltero, no phrase has motivated him more than an investor saying aloud, "Your product sucks." The entrepreneur took the core technology behind a company that had already deadpooled, and bootstrapped it as Hyperic to sell it to both Springsource and now, VMWare. In this Heavybit presentation, Soltero talks about what it's like to build a product "diamond" (modified funnel) for an audience that is perhaps the most "jaded, cynical and busy customer ever" -- namely, the developer. Video Available Here: http://www.heavybit.com/library/developer-go-to-market/video/2013-05-21-javier-solteroTRANSCRIPT
The first million is always the hardest.
May 21, 2013 - Heavybit Industries Javier A. Soltero
[email protected] | @jsoltero
Quick Background
From Puerto Rico to San Francisco via Carnegie Mellon
15 years in technology as a developer & entrepreneur
Rescued a product from VC scrap heap
Recently left “occupied entrepreneur’ role @ VMware
Now building something new
One sentence takeaway:
When all else fails you....Believe in your product and its ability to help
customers.
Stage 1: Get the machine turning
Who’s adopting/influencing/buying?
What are they looking for?
Where are they looking?
You have 20 minutes to show value
What’s worth paying for vs. free?
Ask for the order
Stage 2: Adding new gears (OEM)
Why?
Get your product into places you cant (yet)
Get paid for it
Why Not?
Product not suitable for this
Cant enable others to sell what you yourself cant sell
If you cant grok both sides of the deal, dont do it
Success == 15%-30% of revenue from this source
Stage 3: Guilt by association
“Lighthouse customer” strategy
Everyone wants to be Google, even small shops
Money isnt the only way to get paid
Land & expand
Stage 4: Tuning the machine
2 approaches to pricing
Scatterplot - get as many deals, see where they land
Discipline - 1 price, take it or leave it
Understand the machine you’ve built
Learn to affect change
An example: “The Diamond”OSS or Commercial?
OSS Downloads Commercial
Downloads
OSS InstallsSales Leads
Qualified OpportunitiesOSS Upgrade
MarketingProductSales
$$$
www.mycompany.com
Step 5: Scale
When do I hire a sales leader?
How do I make the case to VC’s about scale?
What’s next for me as the founder/CEO?
Thank you... Any questions?