Hello there
This is the #32 Issue of Weekly Dan.
Ready to become a better Maker?
Every Tuesday, I share an actionable essay for Indie Entrepreneurs.
Today let’s talk about dumb mistakes.
They said, “increase the price”
Last Saturday, I saw that Gumroad is changing its pricing.
It’s a big jump — from a 5% fee (my tier) to a flat 10% for everyone.
I was disappointed but not surprised.
I already knew that Gumroad was going nowhere. This update just made it clearer.
And today, I want to share actionable lessons from this circus.
Founder vs. Customers
What is a Bootstrap Dream in 2022?
Ultimate freedom
Work 30 hours
No meetings
Be profitable
This sounds amazing. Especially if you worked in corporations or VC-backed startups.
Sahil is no different.
And again — I get.
I understand why it looks so desirable. But there is a big “but”.
These values are Founder-centered.
Customers get absolutely nothing from them.
These conditions only make the Entrepreneur’s life better.
Moreover, they usually make customers’ life worse.
Ultimate freedom → No feedback on your ideas + Features to make the Founder better, not the customer
Work 30 hours → Not enough new features + Poor customer support
No meetings → No feedback on your ideas + No customer interviews to get validated insights
Be profitable → Too greedy pricing
I am not saying VC-backed startups are the only way. But it’s clear that customers suffer to make a Bootstrap Dream real. Everything has its own cost.
Gumroad is an ideal company from a Bootstrapped Founders’ perspective.
But as a customer, here is what I get:
Out-of-blue product ideas that are making my life worse
No significant product updates in 6 months
No interest in learning more about customers’ needs
Insane pricing updates to make Sahil wealthier
Buying the future
“Dan, but shouldn’t Indie Entrepreneurs prioritize their life first?”
They should. But not by making customers’ life worse.
Great Founders build companies for people, not for themself.
The sole purpose of the business is to (1) help people and (2) get money for it. The sequence of actions is critical.
How do I know it? Because when you are the customer, you want it to work this way.
Imagine Notion stopped shipping features 2 years ago
Imagine Figma stopped talking to designers
Imagine Product Hunt making launches a paid option
That’s why we love these companies. Because they put customers’ interests before the Founders’ interests. They put you before them.
It’s not the case for most Bootstrap products.
Indie Entrepreneurs put their freedom and wealth before customers. SaaS on auto-pilot is the best Christmas present for a Bootstrap Founder.
And that’s why VC-backed startups won’t disappear. They have more resources and motivation to make customers happier. Because they play a long-term game.
People don’t (only) buy your solution right now.
They buy the promise that your solution will get better in the future.
Bootstrapped products like Gumroad fail to deliver this promise.
Actionable ideas
We should all learn from Gumroad’s mistake.
The product that everyone on Twitter once loved is now doomed.
Even if they revise the pricing update (I don’t think they will), the Creators are mad. They were insulted by Gumroad’s communication. They are looking for alternative solutions. They will switch.
You don’t want to be in Sahil’s shoes. So here is what I suggest to do:
Reevaluate your values. Understand what Bootstrap values you can sacrifice for your customers. Find the right balance that will make your target audience feel special.
Run 10+ interviews with your customers in January. I know, boring. But if you care about building the right features, you need to talk with your users. Otherwise, you will end up shipping useless junk.
Run beta tests. Don’t launch big features on 100% of your customers. Show new features to 5-10 people, get feedback, and iterate. It will save you from making big mistakes in public.
Connect pricing with benefits. People care about money during the recession. Connect the money they spend with the value they get. Increase the prices carefully without touching old customers.
Be more transparent. If you have trouble, share your context. If you need to change pricing, share your product roadmap to increase trust. Be open about your business.
And if you have a Gumroad account, please leave in January. There are a lot of alternatives. Use products that actually respect you.
Let’s make one greedy Founder accountable.
That’s it!
Mind to give me some feedback?
And see you on Friday with the usual 5 golden nuggets for Indie Makers.
Absolutely not a CTA 🙃
1) Get more marketing frameworks with MakerBox Framework.
Actionable models for busy Indie Makers.
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It will be painful. You will love it.
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Damn, Dan! I think this is my favourite issue from you yet. I love how you used Gumroad as a case study and what the reader can learn from this. Plus, suggestions you gave at the end!