Video Summary

☀️ Quick Takes

Is Clickbait?

1-Sentence-Summary

Favorite Quote from the Author

users don't care about the invisible users only care about one thing they want a solution to their problems and the shape or the color of the buttons you're using don't matter at all to them

💨 tl;dr

Shift from developer to entrepreneur: focus on profitability, not just building. Avoid free plans; use free credits or short trials with credit cards. Stick to one tech stack. Users want solutions, not tech details. Consider one-time payments or pay-per-use over subscriptions. Headlines matter. Launch fast with a minimal viable product for quick feedback.

💡 Key Ideas

• Shift from developer to entrepreneur: focus on profitability, not just building
• Free plans are a mistake: only 3% upgrade; better alternatives include free credits, short trials with credit cards, or standalone free tools
• Shiny Tech syndrome: stop chasing new tools; pick one tech stack and stick to it for productivity
• Users care about solutions, not tech details
• Subscriptions can deter users; consider one-time payments or pay-per-use pricing
• Headlines matter: they form the first impression and influence purchases
• Avoid over-engineering: start with a minimal viable product to get user feedback quickly
• Launch fast: prioritize features visible to customers and those that provide direct value

🎓 Lessons Learnt

• Avoid free plans for your product: Free plans attract users who rarely upgrade, making business sustainability difficult without large-scale user acquisition.
• Offer free credits instead of free plans: This allows users to try the product with limited usage, giving them a taste without providing full benefits.
• Implement short free trials with credit card upfront: A trial period (max 7 days) with credit card info ensures commitment and filters out non-serious users.
• Create standalone free tools: Develop a free tool that showcases part of your product to attract users and serve as effective marketing.
• Focus on solving user problems, not aesthetics: Users care more about solutions than design details like button shapes or colors.
• Stick to one tech stack: Increases productivity and reduces bugs due to familiarity with tools.
• Avoid constantly chasing new tools: Stick to your chosen tech stack for better productivity.
• Be cautious with subscription pricing: Switching to a subscription model can reduce sales due to user resistance.
• Consider user churn with subscriptions: Users may not stay subscribed long-term unless the service is exceptional.
• Opt for one-time payments initially: Simpler for users and helps gain initial sales without managing subscriptions.
• Evaluate pay-per-use models: Fairer for users and requires less mental effort, making it a good alternative to subscriptions.
• Prioritize a strong headline: The headline is crucial as it forms the first impression and influences purchase decisions.
• Avoid over-engineering: Start with a minimal viable product to prevent burnout and avoid unnecessary features.
• Use the 24-hour startup framework: Focus only on essential features to quickly get a product to market.
• Remove invisible elements to customers: Don't spend time on things invisible to the customer like testing code, git branches, or typescript.
• Eliminate non-direct value items: Skip features like dark mode, professional logos, or password reset forms initially.
• Focus on the primary feature: Solve the main problem with one feature and launch quickly.
• Launch fast for feedback: Early release helps get real user feedback and build the right features.

🌚 Conclusion

To make your side project profitable, think like an entrepreneur. Avoid free plans, focus on user solutions, and keep it simple. Launch quickly with essential features to get real user feedback and iterate.

In-Depth

All Key Ideas

Entrepreneurial Insights

• I built 24 projects in the past 2.5 years
• In the last year, 100% of my side projects made money
• The shift from being a developer to an entrepreneur
• Mistake number one: adding a free plan to your product
• Only 3% of free users will upgrade to the Premium plan
• VC-backed startups can afford free plans due to large marketing budgets
• Free plans are slowing down solo entrepreneurs in becoming profitable
• Three alternatives to free plans: free credits, short free trial with a credit card, and standalone free tools
• The shiny Tech syndrome distracts developers from focusing on their users

User Preferences and Pricing Models

• Users only care about getting a solution to their problems, not the invisible details like the tools or libraries used
• Continuously chasing new tools and libraries is an endless treadmill and a distraction
• Picking one tech stack and sticking to it increases productivity
• Subscriptions can be a turn-off for users due to future uncertainty and mental effort required
• One-time payments can be more appealing to users and easier for initial sales
• Users tend to churn frequently with subscription models unless the service is exceptional
• Pay-per-use pricing is simpler for users and could replace subscriptions in the future
• The headline (H1 tag) on a website is critical as it forms the first impression and influences purchase decisions

Key Insights for Product Development

• 100% of the people who visit your website will see your headline
• Over-engineering is a common mistake in side projects
• Starting with a very tiny version of your product, such as a 24-hour startup framework, is beneficial
• Removing anything invisible to the customer and features that don't have direct value is crucial for the first version of a product
• The goal is to launch fast to get real user feedback early

All Lessons Learnt

Product Strategy Tips

• Avoid free plans for your product: Free plans attract many users but only a tiny fraction will upgrade, making it hard to sustain a business without massive user acquisition.
• Offer free credits instead of free plans: This allows users to try your product with limited usage, giving them a taste without providing full benefits.
• Implement short free trials with credit card upfront: A short trial period (maximum 7 days) with a credit card requirement ensures user commitment and filters out non-serious users.
• Create standalone free tools: Developing a free tool that showcases a part of your product can attract users and serve as effective marketing, helping to build an audience without giving away the core product for free.
• Avoid shiny tech syndrome: Focus more on engaging with users and improving your product instead of constantly chasing the latest technologies and tools.

Key Business and Development Strategies

• Stick to one tech stack - Choosing and sticking to a single tech stack increases productivity and reduces bugs because you become more familiar with your tools.
• Focus on solving user problems, not aesthetics - Users prioritize solutions to their problems over the design details like button shapes or colors.
• Avoid constantly chasing new tools - New tools and libraries appear frequently, but sticking to your chosen tech stack is more productive.
• Be cautious with subscription pricing - Switching from a one-time payment to a subscription model can drastically reduce sales due to user resistance and mental barriers associated with subscriptions.
• Consider user churn with subscriptions - Users may not stay subscribed long-term, affecting predictable revenue unless the service is exceptional.
• Opt for one-time payments initially - One-time payments are simpler for users and can help you gain initial sales without the complexities of managing subscriptions.
• Evaluate pay-per-use models - Pay-per-use pricing is fairer for users and requires less mental effort, making it a potential alternative to subscriptions.
• Prioritize a strong headline - The headline on your website is crucial as it forms the first impression and heavily influences potential customers' decisions to buy.

Tips for Efficient Product Development

• Craft an excellent headline: Spend enough time creating a headline that is short, triggers an emotional reaction, and answers why a random stranger should give their time.
• Avoid over-engineering: Start with a minimal viable product to prevent burnout and ensure you are not wasting time on unnecessary features.
• Use the 24-hour startup framework: Imagine creating a startup in 24 hours to focus only on essential features.
• Remove invisible elements to customers: Do not spend time on things like testing code, using git branches, or typescript if they are invisible to the customer.
• Eliminate non-direct value items: Skip adding features like dark mode, professional logos, or reset password forms initially.
• Focus on the primary feature: Concentrate on solving the main problem with one feature and remove secondary features to launch quickly.
• Launch fast for feedback: Releasing your product early helps you get real user feedback and build the right features.