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Am I Righting a Wrong or Chasing My Tail

I’ve had about a dozen or so products I’ve launched since I learned to code. However, only two of them I’d consider “hits”. My first project, the one that forced me to finally learn to code, was one of those hits. Graphite Docs was a privacy focused alternative to Google Docs. It was built for me and only though the sheer peer pressuring of friends did I launch it for the public.

Thank goodness I did.

Graphite managed to get tens of thousands of users despite being a pretty niche tool. I learned so much and became a better founder because of Graphite. But I also made what I think is one of my biggest mistakes in running a company. I went after the wrong market.

I had a built-in consumer market that I didn’t even try to nurture. I, instead, chased the b2b market, building features for businesses that my existing user base didn’t really care about.

I had tons of b2b sales demos, some of which were with big name companies. But I made exactly one sale for $19.99 a month. I received one payment at that price before the customer churned.

What I realized is that I was solving a real problem for my niche consumer-market user base and should have focused my efforts there. I likely (can’t prove this now) could have charged for what I had provided them rather than building separate tools for the b2b market that I never captured.

With my current project, Perligo, I am trying to take some of the lessons from Graphite and apply them to the revenue model for this product. Perligo is largely a consumer focused product. It’s for writers looking to find and build better critique groups. However, there is a sort of b2b play available as well. I know from experience and from talking to people, that creative writing departments at colleges and independent creative writing workshops have poor tools for managing group feedback digitally.

Rather than build separate tools and have separate plans, I’m thinking about introducing pricing that applies across the board regardless of whether you are an organization or an individual. To me, this solves the problem I faced with Graphite where I ignored most of my user base. It allows me to build and market solutions to problems without having to figure out if it is exclusively a b2b problem or a consumer problem.

Would love to hear feedback on this whole thought process.

on January 27, 2021
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    I think you should concentrate on b2c play first. If there is a b2b play, your b2c users or your potential b2b users will most likely ask for them. I have an B2C ecard membership site, www.ojolie.com. B2C users asked us if we could convert some B2C ecards for corporate use and we converted some when requested. After a few requests, we created a B2B section and fufilled all inquires through a lot of back and forth emails and we sent invoices after delivery. So we create a design interface so the B2B users can upload their logo and personalize the messages themselves. They pay first and then we deliver. It is much streamlined and saves a lot of time. Hitachi has used our corporate ecards for 8 years and LinkedIn 3 years.

    The marketing for B2C and B2B users are quite different. So I think it is better to concentrate on B2C to gain traction first. Then you can decide how you should proceed with B2B.

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      Great answer! I’m glad to see other folks working in the b2c space. I think VCs have made many founders think b2c is not a viable business path.

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    I think there should a individual level for people on limited disposable income and then on the other end, an enterprie level where a school (or teacher) could buy licenses for their whole site (class). Could JK Rowling have afforded your lowest tier when she was living out of a car, trying to get her writing career started?

    ALl the best!

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      Thanks, @ksp! This is super helpful, and it aligns with what I mean when I say:

      I’m thinking about introducing pricing that applies across the board regardless of whether you are an organization or an individual.

      What I mean by that statement is that you as an individual can use the product for free, but depending on the size of the group you create or other factors, pricing automatically kicks in. That ways an organization (or a school like you mentioned) would automatically be paying more than an individual. And individuals would always have free options.

      One thing I want to do is make it so that people can join groups for free, always. Pricing is only going to be tied to group creation. At least that's my current thought process.

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        Thanks for the clarification. I think what you described is a great plan.

        ALl the best!