Usertesting.com is getting acquired for about a $1 Billion by some private equity firm. This got me curious. I looked in detail what this business does and how they do it. Turns out, at its core, it’s quite simple.
For someone who doesn’t know, services like usertesting.com or userzoom etc help companies get feedback on their product. They match businesses with their potential beta users and then users get paid to take the surveys or test out the product. They get inventised to share this feedback. Businesses pick which kind of testers that they want. So business pays usertesting.com and then usertesting keeps a small cut and pays out the testers. So everyone makes money. Classic marketplace model. Typically large businesses pay for it. These contracts run in hundreds of thousands of dollars.
Idea 💡
I have seen lot of folks here roast landing pages or give feedback. Has anyone tried to build a productized service out of this for indie or small to medium businesses? If yes, would love to know about your experience and journey.
This is one of those ideas which seem pretty simple but incredibly difficult to scale. What do you think?
I've used User Testing a lot for testing business ideas -- it's not great for b2b products a that require some kind of experience to understand the value prop, but it's great for testing messaging and clarity.
I've also used other similar products (I think it might have been usereyes, but forgot now) that will go and find your target customers. They tend to have a much higher price point (B/c of the work) which is the main reason I don't think this type of business works great at the early stage. $2K is not $30, and as a business you won't find specialized peeps at scale w/o a high price point, at which point it probably makes more $ense (as the buyer) to find the testing prospects yourself.
Places like GLG do something similar at $$$ so, again, you're targeting series A+, at which point you're basically enterprise + service.
That said if I was going after this -- I'd choose a niche category w/ high value customers and an easily identifiable reviewer (like software devs), and bill out at 200 to 600 per review.
<<< I know it's not coming from experience, but I have spent a fair bit of time thinking about this problem from a product marketing perspective.
I broadly agree. Efforts required to do find the testers and then do the job is same for smaller companies and larger companies. However AOV is less for smaller companies obviously. Economies of scale doesn’t work in its purest form here. Maybe I’ll rethink about this deeply. Thanks for sharing your thoughts!
I learned through a Facebook UX group that usertesting.com was getting acquired recently so your post in quite timely!
I'm building a product in the UX Research space called EnVsion but we're not focused on ResearchOps. From my conversation with UX Researchers it seems ResearchOps is a huge pain.
In some cases, UX teams outsource the participant recruitment process to platforms like UserTesting or external agencies. This tends to be quite costly and not so many small to mid-sized companies can afford this cost. So in many cases UX teams do the ResearchOps bit themselves...
I think building an equivalent to UserTesting for earlier stage companies will be tough because most will not be able to afford the cost of such a service, and some would not see value in doing this when they have so many other fires to put out.
One of the ways you could approach the problem is to target enterprise customers (but you probably need connections and an already mature product) who would see value and be willing to pay to outsource ResearchOps. Another could be for you to target a specific segment that is highly sought. You could build a community of people who would fit the participant profile these companies seek.
UX Research is a very interesting world, so I'm glad people like you are posting/talking about it :)
Yes, I have been working on a product focused on helping small startup's to medium-sized businesses with their testing.
Someone has made a bunch of money Roasting landing pages. Can't remember who but he definitely did well.
On IH? I can maybe find that out if you saw something like that here on IH. I have also seen couple of posts around roasting landing pages but I have never seen anyone making money off of it!
https://blog.roastmylandingpage.com/landing-page-roasts/
Damn this is wild! That’s a decent money. Thanks a lot Josh! Reading the blog as I type here!
Hey! That's me, I am the founder of roastmylandingpage.com.
Let me know if you have any questions.
You can check out a bunch of my roasts on YouTube too: https://www.youtube.com/c/RoastMyLandingPage
Sounds like an interesting idea. One thought that immediately comes to mind: You'd have to build a two-sided marketplace. You need high-quality testers as well as businesses who book your services.
There are a lot of examples who successfully build these kinds of intermediaries. Large ones like eBay, Alibaba, or AirBnb, but also lots of smaller ones. Ultimately, every job board is a two-sided marketplace. So it might be challenging, but def. not impossible.
You will have to think about how to scale supply and demand at the same time at roughly the same pace. You don't want demand from businesses you can't satisfy, but also don't wanna spend resources on acquiring testers who can only do one or two gigs per year because there's too much supply.
I see two possible solutions for this:
I'm sure there is more to it and loads of helpful resources online, these were just some quick thoughts🙂
I think going niche makes sense. For eg, I have a community of product managers and companies looking for their feedback will be matched with the right talent. Can be done for UX researchers as well. But going niche instead of broad totally makes sense. I have to make sure that clients that I’m landing are not the ones where I don’t have any kind of supply. Setting the expectations right upfront makes sense.
I wonder why companies which are early or upto series A would want to pay to product managers to seek their feedback on their product or newly developed features. Do you think there is some value here?
I'm not super experienced with what product managers do, especially at early stage ventures. But from my understanding their knowledge has to be quite product specific and they need to have good insights into the target audience of the company they're working for. Then it might make sense to niche down even further and focus on PMs for startups in certain niches. Healthcare, biotech, e-commerce, creator economy etc.
It seems like with product managers (and maybe even UX researchers), you're moving quite far away from the model of usertesting.com or these landing page roasting sites. That's not a bad thing, just sth to be concious about.
What you're then getting into is more of an expert network. Basically these are firms that have lots of people with very specific skills available on an on-demand basis. Then clients can pay for their expert advice for certain challenges or questions, often billed by the hour. Usually they are not full-time "experts", but have other jobs and do these gigs on the side because it can earn a very good hourly rate. Just google "expert network firms" and you'll find lists of well known players.
One example that I know of where they are used is in the investment world, e.g. by hedge funds. Funds that e.g. invest in biotech companies need super deep, but also super niche insights into the research of these investment targets. You can't bring experts for all of the different scientific disciplines in house, so you use their input as consultants.
Coming back to product managers: I see an opportunity here to get input from experienced PMs for specific challenges and questions. Feedback to your processes setup, maybe discussing specific questions you have around your organizational setup, or just as an occasional sparrings partner for ideas or inspiration.
At its core, this idea is about helping people (experts) monetize their time by helping them match with companies that might get some value out of them.
If I get into the category of something like allowing people to work on an hourly basis as a consultation or full-time then this gets into the category of Turing.com or toptal.com. Both businesses make a killing btw. If I keep it less managed than that then it is going into the category of upwork.com or freelancer.com.
Maybe there is a third model which is yet to be explored. I'm going to spend some time thinking about this.
Thanks for sharing your insights! This was really helpful. Appreciate it!
They are utilised, as far as I am aware, in the realm of investments, particularly by hedge funds. Funds that, for instance, invest in biotech firms require extremely specialised and in-depth knowledge of their investment targets. Since you cannot hire specialists in every field of science, you employ their advice as consultants.https://laptopswiki.com/how-to-play-ps4-on-laptop-with-hdmi/