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Finding ICP

EmailEngine, the business I run solo, is profitable enough that it pays my salary. As a developer turned founder, I've been asked a lot about how I got here and how I found the customers. Being primarily a developer, I really don't know how to do "business", and that shows – for the first year and a half, EmailEngine made no money. There were a few sales, but these were not actual customers but people who wanted to support my effort. It was only after I re-imagined who my target customer actually was and adjusted the sales process that I managed to get things going.

My first attempt was quite simple. I published EmailEngine as an open-source project under a very strict copyleft license. There was an option to pay to get a commercial license instead. My assumption was that businesses do not like copyleft licenses, and if they find EmailEngine useful, they will opt for the commercial license. In hindsight, many things were wrong with this approach.

It turns out that only enterprise companies care about licensing; smaller ones usually do not. Larger companies were not using EmailEngine because it was a self-serve open-source application with a strange license. Smaller ones did use it and did not care about the license at all, so there was no incentive to convert. Complete mismatch of interests.

I took some time to re-think who the customer I wanted to target was. Basically, I tried to define my ICP. And, to my surprise, the best customer seemed to be someone I already knew about – myself. Or a representation of myself over my experiences in multiple companies and roles.

I was working in Pipedrive more than 10 years ago when Pipedrive was still starting out. I think there were less than 2000 customers, and I worked on similar email integration issues that EmailEngine does. So, it seemed natural to target CRM and SaaS companies at a similar stage because I knew they needed such software, and they do not have the capability to build in-house due to being too small.

My other experience was in Outfunnel, where I was the technical co-founder and built the entire initial software stack. I had a credit card to cover technical spending, and if the amounts weren't high, I did not need to get any permissions. So, I figured that I should try to target the CTOs and engineering leads of small SaaS companies. They would definitely understand how hard it is to build email integrations, and if they can easily swipe their card for any sub-$1k amount, that's my customer. Such a person also wants to move fast, and they or their team is able to figure things out, which also decreases the need for me to provide support. They get predictable and cheap pricing for a feature they can't afford to build themselves. I get a low-effort customer who is able to get stuff done without much guidance.

Obviously, among the current 100+ customers of EmailEngine, there are different kinds of companies, but the core is the one I described.

, Founder of Icon for EmailEngine
EmailEngine
on February 20, 2024
  1. 1

    This project has given me great inspiration. Something complex yet useful, when studied and offered in a more user-friendly manner, holds significant value.

    I appreciate your analysis and sharing regarding customer positioning. Some technical products are indeed not utilized by large companies, and small users tend to prefer free options. However, there are certainly small and medium-sized enterprise customers willing to pay for such services.

    Could you please continue sharing some methods and experiences for acquiring these customers?

    I have a small tool for preventing decompilation of JAR files in Java/Scala projects. It's very convenient and highly effective, surpassing any methods based on code obfuscation and customized classloaders. However, I'm unsure how to find potential paying customers.

    Do you have any suggestions on how I should proceed?

    1. 1

      While the value is clearly there, I do not have a clue on how to sell a security product. With EmailEngine, it is easy - I can provide cost and time savings to potential customers. The customer does not have to build the solution as they otherwise would (all customers have development teams/capabilities), and instead, they can immediately start developing their actual value-added features instead of wasting time on implementing email protocols. There is no need to wait (time savings) and no need to pay for developers (EmailEngine's subscription fee is magnitudes lower than any developer's salary). My suggestion would be to figure out the why (in EmailEngine's case, time and cost savings), and the who (choosing the ICP profile as described in the post) and then move from there.

      1. 1

        This comment was deleted 6 months ago.

  2. 1

    Hi, great product to tell us. One thing I would like to know is that, is your licensing system also open source, I mean if it's coded in open source code then it's easy for your user to crack your licensing system without paying you money.

    1. 1

      EmailEngine is source available. It means that anyone can download and inspect the source code but is not allowed to use it. No way for me to detect if anyone is doing so for personal projects (don't care either), but EmailEngine's customers are businesses that usually do not want to run pirated software. There would be no support; each upgrade might change license key validation rules, so upgrades must be patched manually; additional checks added to the code might unexpectedly break the software even while it's running etc.

      1. 1

        Yeah, that makes sense, supports are important for B2B bussiness. Thank you for your reply, that helps me understand how open source projects handle license keys.

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