Jon & Justin reveal everything (part 2)
Episode
35 min
Read time
2 min
Topics
Career Growth, Remote Work, Relationships
AI-Generated Summary
Key Takeaways
- ✓Market selection framework: Choose categories where you have expertise, understand customers personally, and know people in the industry. Market momentum matters more than product features for achieving desired growth rates and long-term success.
- ✓Simple Lovable Complete over MVP: Launch products that are simple, lovable, and complete enough for customers to switch from competitors, even if missing features like mobile support. Feeling good about your first version beats shipping something embarrassing.
- ✓Pricing value metric alignment: Set pricing based on your main cost structure. Transistor charges by downloads because bandwidth is their primary expense, similar to Slack charging per seat or email services charging per send volume for sustainable unit economics.
- ✓Hiring through relationships: Hire experienced people you already know and have worked with previously. They require zero training, contribute high value immediately, and cultural fit is pre-validated. Avoid hiring junior employees in small teams without mentorship capacity.
What It Covers
Jon and Justin reveal how Transistor reached profitability by 2020, paying themselves $250k annually. They share hiring philosophy, pricing strategy based on bandwidth costs, and how cultivating curiosity and relationships creates business opportunities.
Key Questions Answered
- •Market selection framework: Choose categories where you have expertise, understand customers personally, and know people in the industry. Market momentum matters more than product features for achieving desired growth rates and long-term success.
- •Simple Lovable Complete over MVP: Launch products that are simple, lovable, and complete enough for customers to switch from competitors, even if missing features like mobile support. Feeling good about your first version beats shipping something embarrassing.
- •Pricing value metric alignment: Set pricing based on your main cost structure. Transistor charges by downloads because bandwidth is their primary expense, similar to Slack charging per seat or email services charging per send volume for sustainable unit economics.
- •Hiring through relationships: Hire experienced people you already know and have worked with previously. They require zero training, contribute high value immediately, and cultural fit is pre-validated. Avoid hiring junior employees in small teams without mentorship capacity.
Notable Moment
Jon spent months working unpaid eight-hour shifts at a Chicago bakery on weekends while employed full-time as a developer, learning bread-making techniques and gaining restaurant industry insights that exemplify how curiosity creates unexpected business opportunities.
Episode Transcript
This podcast is hosted by transistor dot f m. Hey. Welcome to Build Your SaaS, a podcast about building a web business in 2022. I've I've heard the intro many times. I should know it by now. I'm not John or Justin. I'm Chris, the podcast editor. And just here to tell you that you're back for part two of John and Justin's answer all the questions about their business, transistor dot f m. I won't waste any more of your time with my rambling and babbling, and let's just get right into the questions. Corey Haines, another great transistor customer, says, when did you start paying yourself what you actually wanted to make or what you set out to make, I think he's saying. Yeah. That was probably 2020, I'm guessing. Probably. I don't know what your answer would be. I mean, we had stages of this. And I think when we started, we said kind of baseline for us was to each make a 100,000 a year. But the the actual goal for me personally was probably, like, I would like to be making at least $250,000 a year. And, yeah, I can't remember when we hit that, but I don't either. It was probably sometime in 2020. Yeah. I think it was sometime in 2020. Nathan Barry says, so impressed with what you've done in four years. Thanks, Nathan. That's great. Nathan Berry from ConvertKit, another Transistor customer. Brian Ray says, a lot of success stories aren't helpful because of survivorship buyer bias, and a lot of answers about success start with it depends. But after these years, as you've met more and more bootstrappers who have found success, are there a few pieces of advice that you truly believe stand up to the harshest of critiques and are more likely to apply broadly to a wide audience? Thoughts, John? I don't know. I'm not really in touch with the bootstrapping community that much, to be honest. So I mean, this is my thing. I just love this part. The the, choose a good market, choose a good category is and within that advice is choose a category you know you have some sort of expertise in. You have you understand the customer. You hopefully know a bunch of those customers. There's enough momentum in that market to give you the growth that you want. You, you know, that that so much depends on the market. And then, really, it's everything else we've said, which is the life that you cultivate up to that point is really going to make a big difference. Yeah. The people you meet, the skills you build, the experiences you have, You know, John has become very good at building product, and then it's because, you know, I didn't have to walk with him all through all those years where you were just working freelance and then working for other companies. You know? Like, they got to, you you got to train …
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