Businesses, to a first approximation, don’t care about their tech stack except to the extent that it drives business outcomes. Can you articulate those pros/cons in a way a business cares about? Can you impact your deliverables to reduced costs or (much better) increased revenue? Then you, too, can look forward to a bright future where HN tells you you’re not really an engineer anymore because your rates are too high.
All of the recommendations you gave were related to selling the product, not improving it. That's not a bad thing; it just means it was a marketing consultation.
a) to have a lot of marketing expertise
b) to be known well enough for your marketing expertise that people will take your suggestions as valid
Most tech people have neither one. Hell, most marketing people have neither one, half of the rest on my have b) but are actually incompetent in their recommendations, and only the last little bit have both.
If you want to make the big bucks, you have to do what businesses care about, not what you care about.
For instance, even though the root cause might be high latency, the actual problem is that the high latency is killing your retention.
If the business is sophisticated enough to value technical expertise, often they value it so much that they are willing to hire experts full-time, or they're so small that they can't afford to. So as a technical expert, you end up caught in a weird uncanny valley (in my experience). I think that patio11's advice is, as always, spot on here; the skills needed to become a technical consultant that charges $N/week are way higher than the technical skills needed to become a business consultant at $N/week, for any value of N. That isn't to say that technical skills aren't value, just that it's a tough sell to make, for a number of reasons that patio11, and others, have written at length about.
How do you make sure the company won't just take your advice and hire a guy to do this for 90k/yr instead of letting you work on it for three weeks?
People occasionally took my proposals and productionized them with existing or (much more annoyingly) new staff. Oh well. That’s one reason I charged what I charged; the sales process assumes 1 to 3 “actually nope we decided we don’t need you” per engagement which happens.
However the indisputable fact is that these companies are willing to shell out for this stuff, whether because they think it’s temporary work (cheaper to hire Patrick than an FTE who you then have to keep paying or dispose of) or they’re paying for the top-of-Hill expertise (eg. paying a Big 4 where you get 10 hours of a partner’s time/expertise at 1k/hour and then 300 hours of 23yo grunt labor).
Is it easier to work for a consulting company as an “employee” before venturing out alone?
At first he undercharged, not as a tactic to start consulting but because he didn’t have confidence in what he was selling. I believe he started off at $5,000 and stopped consulting when he was charging $30,000 a week.
But most of his work came from pitching people. Write an email or make a call to a company that seems a good prospect and follow up. If five percent convert you’re doing pretty well. You also get referrals from previous satisfied customers.
As well as that Patrick wrote a lot on his website about what he did and how to do it, which functioned as a proof of competence and lead to some people contacting him to ask him to work for them. Authority, Nathan Barry, is all about this publicising proof of competence tactic.
> You should email people 4 times during the trial depending on their level of engagement with it. Here’s a decision tree.
Do you have a link to an example decision tree for a typical SaaS app?
That’s consulting.
The entire purpose of selling a product is to scale through volume rather than customization.
To me the big divide is how superlinear your revenue:employee ratio is. If it's linear or close to it, then you're a consulting org. You make money based on the hours of work you are able to bill for in one way or another. If it's a "product", but you as the product developer are doing heavy customization, then you've just transitioned from an hourly billing model to something resembling fixed bid, but with a fiction of a product in the mix.
“How much email do you send?” “We have a newsletter.” “What else?” “Welcome to free trial email. “What else?” “Nothing.”
I write proposal.
You should:
1) Have a pre-sales drip campaign positioned as a “free course about X delivered over email” w/ 8 emails arriving over the course of a month. This will push people at purchasing the product in 2 of the emails.
2) You should email people 4 times during the trial depending on their level of engagement with it. Here’s a decision tree.
3) You should email people within 80% of their monthly quota offering a discount to move to the next higher plan.
4) You should email your entire userbase and upgrade as many as possible to annual billing for a 10% discount to the cost of their current plan.
You can tell your engineering team to do this for you, but there is 0% chance they schedule this because it is boring scutwork and they’d rather do those features you have scheduled this quarter. Or you can have me just do it. I need a commit bit and probably two weeks. It will cost you $30k per week.
Probabalistically this makes you $2 million in next 12 months but your results are your results; you keep all the upside and my invoice is due regardless.