Category Archives: Entrepreneurship

2017 Review and 2018 Goals and Plans

2017 was an interesting year for me. One of the biggest differences between 2017 and my previous years of freelancing is that for about five months of the year I did very little development work and instead did corporate training as my main source of income. I had decided to get into training because I’ve never enjoyed sitting in front of a screen all day and training seemed like a good opportunity to try a different kind of work. Unfortunately, I had a hard time making training work out business-wise. I’ll recount my year in chunks.

January and February

In September 2016 started working with a long-term development client. The people involved with the project were good but the codebase was ghastly. Around December 2016 I told my client that I would only be available through the end of February 2017 because I wanted to stop doing development work and start doing training work. The reasons why I was motivated to start doing training work mainly revolve around the fact that in my experience software projects are generally high-stress affairs where everything is always “behind” and nobody’s happy. I heard a podcast episode about how training work is different and thought it sounded like a good fit for my personality.

In February I did my first corporate training gig. It was a 5-day Ruby on Rails class that took place in Vancouver, Washington. Due to a number of factors the class was a total disaster. I think the biggest factor was my own inexperience. These kinds of classes tend to receive numerical evaluations at the end. This one got something like a 3.3/5. It may not be obvious but 3.3/5 is very bad by corporate training standards.

I had also been working on Angular on Rails at this point, a business I started in the spring of 2016. In January and February Angular on Rails made $371 and $449, respectively. You can see the full income report here.

March, April and May

About a week or two after I taught the Vancouver class I was sent to Sofia, Bulgaria by the same training company that had sent me to Vancouver. This time it was a 3-day Angular 2 class. I had spent the time between the Vancouver class and the Sofia class frantically preparing for the Sofia class because I didn’t feel like I could afford to get another bad evaluation. I barely slept at all during the 3-day period when I taught the class. Fortunately, all my hard work paid off and I got (IIRC) a 4.5/5 eval for the Sofia class. I celebrated this success by getting drunk at a bar with a bunch of European strangers.

I returned from Bulgaria on March 11th. I don’t recall having done much work in the month of March. My wife and I went on a vacation to Savannah, Georgia later in March. In mid-April I went to MicroConf. I believe this was the first year that MicroConf was split into two parts, “Starter” and “Growth”. I understand Growth is for people who are already full-time on their business and Starter is for people who haven’t yet gotten to that point. I went to Starter because at that time Angular on Rails was only making a few hundred bucks a month (and, as of December 2017, still is). Starter was okay but it lacked the magic I experienced at MicroConf 2016. For 2018 I bought a ticket to Growth.

I think I spent the rest of April working on Angular on Rails and preparing for a class I was due to teach mid-May.

In early May I taught a one-day corporate class in Phoenix. It went great but I learned that one-day classes aren’t really worth it. From May 15-19 I taught a 5-day class in Detroit. This class was one of the funnest ones I had done so far, and everything went great as far as I could tell. Teaching this class really helped cement how different teaching is from programming. Teaching this class was way more fulfilling than any software project I had ever worked on. At the same time this class had been pretty draining. I remember thinking on Friday afternoon, “I don’t want to do this again for a LOOONG time!” Unfortunately I had to get on a plane the next morning to fly to Amsterdam to teach another class.

The Amsterdam class was good but weird. I was sent there by a shady Indian company who lied to the students about my background. (They said I had 15 years of experience with JavaScript frameworks like Angular, despite the fact that JavaScript frameworks have not existed that long. They also said that the “original” instructor could not make it due to a family emergency, also untrue.) Content-wise, the Amsterdam class went well and I got good evals. By this time I felt like I had pretty much gotten a handle on how to teach a good class.

While I was in Amsterdam I had a conversation with a new (US-based) development client. My memory is that this whole time I had been looking for another development client, but out of the several strong-looking prospects I had had, nothing had came through. It was actually really surprising. I had been getting nervous because I wasn’t earning anything between classes, and I was only teaching an average of maybe two classes per month. I think my income was less than half of what it normally would have been had I just been doing hourly coding work. Luckily, things worked out with this new prospect. I got back from Amsterdam on May 25th and started working with my new client the following Monday.

Angular on Rails was still going this whole time. In March, April and May it made $352, $735 and $480, respectively. I had thought I was on the upswing in April when I made $735. I thought my pricing changes and some other things I did were what had made my revenue go up. But apparently it was just luck. Revenue has never reached that level since. It was around this time that I did an interview on Indie Hackers.

Around April or May I decided to make one of the dumbest financial decisions I’ve ever made and buy an almost-new car. I bought a 2015 Subaru Outback. I don’t even know why I bought it because I don’t even like it that much. Whoops.

June and July

For the five weeks spanning June 12th to July 14th I taught a coding bootcamp in Detroit. This was a pretty stressful time. I was away from my family. I was continuing to run out of money. I was fairly consumed by teaching the class but I was also trying to work for my new development client nights and weekends to get some income coming in again. But as far as I can tell, the class went great. This is a class that happens every year and I was invited to teach it again in 2018.

This was also around the time I started considering pumping the brakes on the training work and going back to coding. Most of the training gigs I was doing were through training companies. Actually, most of my gigs were through just one single training company. The rates a person can get through a training company are not nearly as good as what you can get for direct gigs. The 5-day classes were lucrative enough to make the travel worth it but the 1-day, 2-day and 3-day classes pretty much weren’t. The travel was also hard on my family. I remember one Sunday when I told my four year-old son it was time for me to leave and spend another week in Detroit, he started bawling. Not just crying but bawling. That really tugged at the heartstrings. Experiences like that helped me realize that if I were going to do training for a career, I’d have to figure out a way to make my income from just one or two classes a month so I could make up for my absence during the time I was home. Unfortunately, when I looked at the numbers from the training I did in 2017, the math didn’t really work out. I think it was in late July when I decided to go back to contracting full-time.

Then, on Monday, July 17, the first business day after my five-week bootcamp ended, I got a call from my new development client saying he had decided to shut down his business. I thought I was going to have a somewhat steady income but now that was gone. My financial prospects at this point were comically dismal.

Luckily, I had lined up one last training gig. This was a two-day class in Palo Alto. I actually got on the plane the day after my main development client went out of business. I decided that I’d take advantage of the fact that I was in Silicon Valley and try to line up some in-person meetings with prospects. I shook the trees and was in fact able to line up two in-person meetings. One of the two prospects said they’d like to work together and we started working together pretty much immediately. I’m still working with them today. It’s full-time contracting which means it’s basically a job. I’m fine with that, though. After the rollercoaster that was February to July 2017 I was ready to just be a pair of hands and earn a steady paycheck for a while.

Sometime in June, I believe, I decided to stop working on Angular on Rails and start something new. Part of the reason was that Angular on Rails only made $185 in June and that was really a kick in the balls. Revenue was going down despite my efforts to make it go up. I also was never a huge fan of Angular. My interest in it was kind of mercenary.

After I back-burnered Angular on Rails I spent a few months trying out different product business ideas and flailing wildly. I was frustrated that after eight years of trying to build a successful product business I was basically back to square one and I didn’t know how to move forward. It was a painful time.

In November I started a new venture called Six Figure Coding. The idea is to teach job search skills to developers. Within nine days of creating Six Figure Coding I made $152 in revenue. Presently I’m working on an ebook which I plan to launch on February 6th, 2018.

August to December

Business-wise, not a lot of noteworthy things happened from August to December. Except for a few hundred bucks of product revenue, all my income has come from my main development client. I expect that it will be this way for quite a while, although I do expect product income to grow over time.

Reflections on the year

I learned a lot in 2017 about what works and what doesn’t work and why. I’m glad I tried training even though it ultimately didn’t work out the way I had hoped. If I hadn’t tried it I would have always wondered if I had left some huge opportunity untapped. Now I know what training is like.

By the way, I did learn how to theoretically make training sufficiently lucrative. I’ve noticed that the trainers who get the direct gigs (as opposed to gigs through a training company) tend to be people who have written published books or who have built a really strong online presence. So if I wanted to write a published book, I understand that I could expect to attract clients who want me to do training for them. I actually started to go down this path. I talked with Prag Prog about writing an Angular book and they were interested. Unfortunately, I decided that I really just didn’t have it in me to write an Angular book. I frankly think most of this single-page application stuff is a little on the bonkers side and I would have a hard time writing a whole book about something I believe to be crazy and unnecessary. Plus, if I’m going to spend a whole bunch of time putting effort into some extra thing, I think I’d rather put that effort into building  a product business since my ultimate goal is not to be a trainer, it’s to be a product entrepreneur.

2017 was my second-best year ever for product revenue and best year ever for service revenue. In 2016 I made about $4,800 from Angular on Rails. In 2017 it was about $4,300. This might sound crazy but my goal is to earn $100K in product income in 2018. I honestly think this goal is realistic given everything I’ve learned about entrepreneurship over the last eight years or so.

 

I’m going to ask myself a couple questions that I’m borrowing from my friend Kai Davis (thanks, Kai) as well as a couple questions of my own.

What went well this year in my personal life? In 2017 I honestly didn’t have much of a personal life. I spent too much time working. But there are a few things that did go well. I took my wife on a vacation to Savannah, Georgia (with no kids!) which is a place she had wanted to visit for a long time. We took a family vacation to Asheville, North Carolina which was really fun. I got my wife a dog. I got to visit two new countries, Bulgaria and the Netherlands. I met some cool and interesting people in the course of teaching classes. I recorded a couple new songs that I’m pretty happy with, although they’re not finished yet.

What went well this year in my professional life? Like I mentioned above, it was my overall highest-income year ever and my second-best year for product revenue. I learned a lot about what works and doesn’t work in freelancing/consulting. I appeared on two podcasts. I started a new product business which only took nine days to earn over $100 in revenue.

What didn’t go well this year in my personal life? I didn’t spend nearly as much time with family and friends as I would have liked. My personal life was almost nonexistent. I also would like to have spent more time on hobbies, especially playing music and reading.

What didn’t go well this year in my professional life? 2017 was too much of a financial rollercoaster. I started the year with a lot of money, then gradually ran out of money as my spending exceeded my income. I spent about five months focused on training (March to July) and seven months doing contracting (January, February and August-December). Gluing myself to the desk all day every day has always been a struggle for me, and so the months I’ve spent contracting have been really unenjoyable. So something that didn’t go well is that I spent a lot of time doing things I didn’t want to do.

2018

My top goal for 2018 is to escape contracting and go full-time on my new product business, Six Figure Coding. This has in fact been a career goal of mine since around 2008. I finally feel like it’s realistic. I’ve learned a lot about entrepreneurship in the last ten years and I think I learned more in 2016-2017 than any previous period. I truly believe that if I apply everything I’ve learned to Six Figure Coding, it will be successful.

Financially, my goal is to earn $100K from Six Figure Coding in 2018. I can imagine it going something like this: $1,000 in revenue for Q1, $9,000 in Q2, $25,000 in Q3, $65,000 in Q4. I can quit contracting when Six Figure Coding reaches a steady ~$10K/month. My dream is to be able to quit contracting in July 2018. My goal is to quit contracting sometime by December 31st, 2018.

I don’t intend to pursue any new training work in 2018. I will be teaching just two classes, one in May and one in June-July, because those two classes still make business sense for me. The rest of the time I plan to just do regular old contracting. 2017 was a year of stumbling and flailing and experimenting. I intend 2018 to be a year of executing on what I know works.

These are my two professional goals for 2018:

I honestly think that’s it for professional goals. If I can hit those two, I don’t give a fuck about anything else (professionally, that is).

Quitting consulting is also as much a personal goal as it is a professional one. Quitting consulting will ostensibly allow me to finally have a social life again as well as pursue various hobbies that I’ve neglected for years.

I do also have some vague personal goals which I need to think about more. Right now my plans for the year look something like this:

January, February, March: contracting
April: Vacation (April 1-8?), contracting
May: MicroConf (April 29-May 2), contracting, training (May 21-25)
June and July: contracting, training (June 11-July 6), contracting
August-December: contracting

Lastly, something else I like to do from time to time is compare where I am now to where I was at this time in previous years.

In December 2016 I was working on a miserable, excruciating contract project. That sucked a bunch although at this point I knew I was going to make the leap to training soon, so I was optimistic. I’m feeling better about life in December 2017 than I was in December 2016 though. Product-wise, Angular on Rails’ revenue had started to peter out in December 2016.

In December 2015 I was working at a miserable full-time job with no end in sight. I actually quit that job in early 2016 with no other work lined up just because I hated it so much. At this time I don’t believe I had any product business going at all. I had recently shut down Snip after five years of effort. This was a pretty dark time professionally.

In December 2014 I was working for Andela and about to go to Nigeria. Andela was only part-time and I had way less work than I needed to make a “normal” income.

In December 2013 I had recently been fired from a job which ended at the end of September 2013. I had tried and failed to get my first substantial freelancing client. I was running out of money but also unwilling to go back to a job. This was one of the worst times ever in my professional history.

People often compare where they are now to where they could potentially be if all their dreams came true. This is often a demoralizing exercise because you’ll never be where you could potentially be. It’s often much more gratifying to compare where you are now with where you were at this time in previous years. As I look back at 2013-2016, I realize that I’ve come an incredible distance since when I started freelancing. I’m looking forward to seeing how December 2018 compares with December 2017.

Watch me try to get my first Shopify client

For the last 6 years I’ve done mostly the same kind of freelancing work: web development at $X/hour. When I first started freelancing in 2011 I had some vague idea of the exciting life I was going to live, but I slowly realized that being a freelancer programmer is basically just a glorified job. Or more accurately, that’s true for most freelance programmers most of the time.

Because I intend to eventually to become a millionaire, I’ve been working for years on trying to build a product business. Those efforts date back to about 2008. My first five attempts didn’t make any money. My sixth attempt made something like $5,000 over the course of five years. My seventh attempt made about $8,000 over the course of a year. My entrepreneurial skills have been improving over time.

You could kind of say that my first five entrepreneurial attempts made an average of $0/year each, then my next one made an average of $1,000/year, then my next one made an average of $8,000/year. Now that I’ve gotten some decent entrepreneurial practice, I’m ready to build the business that will make $100,000/year. I’m not yet experienced enough to make a $100,000/year idea appear out of nowhere but I do believe I’m now experienced enough not to mistake a $1,000/year idea for a $100,000/year idea.

I’ve also come to understand that successful product businesses aren’t brainstormed but stumbled upon. So the question I’ve been asking myself has gone from, “How can I come up with a good product idea?” to “How can I put myself in a situation that will cause me to stumble upon a good product opportunity?”

I’ve cycled through a lot of different potential answers to that question. My current idea is that maybe I can get involved in the Shopify world and try to get a product idea to emerge there. How did I pick Shopify? I really don’t know. I just kind of randomly picked it.

My thought is that if I want to stumble upon a good Shopify-related product idea, maybe I can do some Shopify consulting for a while to give me some visibility into that world. In fact, maybe that Shopify consulting can even replace my freelance programming income and provide me with a better lifestyle during the time I’m working on my ultimate goal of build a product business.

The kind of Shopify consulting I’m thinking of doing is to help Shopify store owners build their email lists and make more sales to their existing email subscribers.

I’ve run out of time to write this post (gotta get back to the hourly programming work!) but I plan to share more as I go.

June 2017 Angular on Rails Income Report

Here’s every month of Angular on Rails’ sales so far:

2016 August $868
2016 September $1053
2016 October $1580
2016 November $871
2016 December $428
2017 January $371
2017 February $449
2017 March $352
2017 April $735
2017 May $480
2017 June $185

As you can see, June 2017 was the worst month ever. Why? I don’t know for sure. One thing I do know for sure is that I’ve neglected Angular on Rails for about the last two months. That may well be the root cause of the decline.

My plan at this point is to focus on one thing and one thing only: traffic. I’ve gone from a peak of over 8,500 visitors a month (IIRC) to about 6,200 in June. So I set a goal of 10,000 visitors in the month of September.

A person might look at these numbers and wonder if Angular on Rails is really a viable business. My opt-in page still converts fine (~14%), my sales page still converts fine (~7%) and my checkout page converts okay (~18%) so I see no reason to seriously think about bailing now.

One big problem is that I’ve given my supposed #1 much less than my #1 slot attention-wise in the first 6 months of 2017. I’ve spent too much focus on training work. My plan for the remainder of 2017 is to go back to doing more coding-by-the-hour work. It’s not as enjoyable as training but it’s easier on my schedule and family, and the paychecks have tended to be more steady. From here on out I only plan to take on training gigs if they’re relatively easy and lucrative.

May 2017 Angular on Rails Income Report

Here’s every month of Angular on Rails’ sales so far:

2016 August $868
2016 September $1053
2016 October $1580
2016 November $871
2016 December $428
2017 January $371
2017 February $449
2017 March $352
2017 April $735
2017 May $480

And here are the last six months in graph form (I used Gumroad prior to December 2016 so Stripe doesn’t have data for those months):

So May was not as good as April, but better than the months leading up to April. Why wasn’t May as good as April? I don’t exactly know.

I’ve been pretty distracted from Angular on Rails lately. I’ve been doing a lot of training. Last week I taught a class in Amsterdam and the week before that I taught a class in Detroit.

I’m frankly expecting to have to neglect Angular on Rails for about the next 6 weeks. I really hate to do that but the first priority has to be the client work that pays the bills, and I have a lot to do for clients over the next 6 weeks.

Side note: I tried Facebook ads in May. It went well it the sense that I was able to acquire 37 subscribers for about $2 a pop but it went poorly in the sense that none of those 37 subscribers bought anything. I’ll try again later when I can afford to waste some money to get it figured out.

April 2017 Angular on Rails Income Report

Here’s every month of Angular on Rails’ sales so far:

2016 August $868
2016 September $1053
2016 October $1580
2016 November $871
2016 December $428
2017 January $371
2017 February $449
2017 March $352
2017 April $735

And here are the last five months in graph form (I used Gumroad prior to December 2016 so Stripe doesn’t have data for those months):

So March 2017 was the worst month ever, and then April 2017 was the best month in a long time. I attribute this improvement to two main things:

  • I dramatically improved my opt-ins from April to March
  • I raised my prices from $39/$89/”custom” to $49/$99/$249

More opt-ins means more sales and higher prices means higher average sale size.

I had set a goal at one point to double my average sale size. Prior to April 2017 my average sale was $35.13. In April my average sale was $52.52. That’s of course not a doubling but it’s a 50% increase which isn’t bad.

In my last Entrepreneurship Journal I described a 4-step plan:

  1. 3X opt-ins/mo
  2. 2X average sale size
  3. 2X traffic
  4. 2X average sale size again

I think I was initially imagining I would start with the first goal and not move to the second goal until the first goal had been achieved. Later I decided it would probably be more effective to turn some knobs on goal #1, then move to goal #2 while I’m waiting for results to come in, and so on, since there’s a delay between the time I take action and then time I have enough data to see the results of my action.

Here’s what has happened with opt-ins so far:

That’s not a 3X but it is a 1.5X which I’m happy with for now. And we’ve already seen that I’ve 1.5X’d the average sale from $35.13 to $52.52. 1.5 * 1.5 = 2.25. That’s interesting because March’s revenue, $352.25, times 2.25 is $792.56, which isn’t too far off what April actually was. So it looks like fiddling with these inputs really does affect the outputs in the way I would expect. And as long as my opt-ins stay about the same and average sale size stays about the same, I can expect May to be about the same as April.

I haven’t done much yet to influence traffic and I certainly haven’t 2X’d the average sale size for a second time. But for the foreseeable future I think traffic is what I’m going to be focusing on. My first goal is still to 2X traffic but I wonder now if maybe I should just try to, say, 5X traffic. I’ve been told that all my conversion numbers are pretty good and that it might be easier just to crank up traffic than to try to squeeze out some higher conversion rates. I can see the logic in this.

Right now my traffic is at about 8,000 visitors a month, so I’m shooting for 16,000 a month. My guess is that if I do that my revenue will go from about $750/mo to about $1500/mo. So that’s the next milestone.

March 2017 Angular on Rails Income Report

Here’s every month of Angular on Rails’ sales so far:

2016 August $868
2016 September $1053
2016 October $1580
2016 November $871
2016 December $428
2017 January $371
2017 February $449
2017 March $352

To use the classic geological metaphors, you can see a peak in October and then a plateau from December to the March. Why the peak and why the subsequent plateau?

Well, here’s one possible factor:

subscriber chart

That’s a chart of my new email subscribers. I had a peak in October 2016 with about 300 subscribers. Then it was all downhill from there. In March I had something like 98. So that’s one issue. (The jump in April 2016 is when I imported a list of ~300 subscribers from MailChimp.)

Then there’s this:

sales page traffic

That’s the traffic to my book’s sales page. Again, it peaks in October 2016 and goes down from there.

I think the decreased traffic to the book’s sales page is probably at least partially a function of the waning opt-in rate. And I think the slowing opt-in rate is a function of traffic to the home page. The home page is where all the opting in happens. Here’s the home page traffic:

home page traffic

Similar trend: down.

It took me until recently to notice these things because overall traffic has gone up! Here’s a graph of site-wide traffic:

overall traffic

That graph by itself makes the site look pretty healthy. Not entirely so, of course.

I have a hypothesis of the “no shit, Sherlock” variety that more opt-ins would result in more sales. I figure if I can get my opt-in rate from its current 100ish to its erstwhile 300ish, then I could reasonably expect sales to roughly triple.

My plan for increasing opt-ins includes:
– Put an “ad” on each blog post for the same Free Guide that’s offered on the home page (I’ve actually already done this)
– Add an opt-in on each of my most popular blog posts that offers something related to what the blog post is about (I believe this is known as a “content upgrade”)
– Write an promote some new material, which I haven’t done in quite some time. I have a hunch that the lack of “freshness” on my site is partially responsible for my decline in opt-ins, although I can’t explain exactly how that would work. Regardless of whether my hunch is correct, there’s a ton of stuff I think I should be writing about that I’m not. The more I write, the more traffic I get, generally, and more traffic is of course one way to increase opt-ins, although perhaps not the smartest/easiest way. New writing is a lower priority for me than adding content upgrades and refreshing old content.

Another thing that can increase sales is of course to raise prices or to increase the average purchase size. I recently re-did my $89 video product and adjusted my sales page to do a better job of presenting the $89 product and of saying to prospects “this is the default option, the best value, the one you should buy”. Anecdotally, my efforts seem to have worked, although it’s too early to tell. And I certainly haven’t yet done the best job of improving the sales page that I could possibly do. It really needs a ground-up rewrite and redesign. But that’s a lower priority. First let me just get opt-ins back up to where they used to be.

I mentioned that I re-did my $89 video product. I also updated my book so that it covers the latest version of Angular, Angular 4. After I did both these things I did a launch. I was expected big sales from the launch, like a couple thousand or more, but on launch day I believe only two people bought. Big disappointment.

I wondered why that was, and I think I know the answer. On my list of 1500ish subscribers, about 130 have bought. That’s about 8 or 9 percent. Maybe about 8 or 9 percent of my subscribers are going to be buyers, and that’s just all the buyers there are. Maybe by trying to get the others to buy I’m just trying to squeeze blood from a stone. A huge portion of my list comes from places like India and Brazil, after all, where $39 is a lot of money.

I think there’s also another explanation as to why my launch failed. Every time a subscriber subscribes, I give that subscriber his own private “launch sequence” which often does result in the subscriber making a purchase. So if my “private launch sequence” is effective, then a regular launch would probably be mostly redundant. For the most part, the people who would respond to the launch have responded the first time, and the people who would never respond aren’t going to respond to the second launch any more than they would to the first. Again, I think this is true for the most part although of course not always.

Those conclusions, if true, lead me right back to increasing opt-ins. If all the buyers on my list have already bought, find more buyers.

If I can boil down everything I’ve said so far into a concise plan, it’s this: increase opt-ins and increase average sale size. If I can 2X my sale size and 3X my opt-in rate, I can 6X my revenue. That would take my from my current ~$400/mo plateau to 400 * 6 = $2,400/mo. I would be very happy with that number. Heck, I’d even be pretty happy with a consistent $1,000/mo right now.

I don’t want to jump to conclusions or get my hopes up but it seems like some of the actions I’ve taken recently might have helped improve opt-ins and average sale size. My April sales as of right now, April 10th, are $386.75. That’s an average of $38.68 a day which would mean about $1,160 for the month. Again, I’m not going to jump to conclusions or get my hopes up. Even though my launch was a flop, the $386.75 does include launch sales. But just by absolute numbers, I’m already right at “plateau level” on the 10th day of April and I do think I can reasonably expect that April’s final sales will be higher than any other month since the plateau started.

Entrepreneurship Journal, 2/23/2017

Lately I’ve been posting income reports that talk exclusively about Angular on Rails.

I’m not sure what my original intended scope of these “Entrepreneurship Journal” entries was but I think I’ll now include in them everything I do that makes money.

In 2017 I think I can pretty accurately say that I make my money by a mix of three things:
– Custom software development
– Training/mentorship
– Products

In fact, I just got new business cards which say on the back, “Training / Mentorship / Custom Software Development”.

The training service is something I’m doing more of in 2017 than in the past. By the beginning of February my sales of training services were roughly equal to 75% of my total earnings for 2016. That’s a pretty big deal.

The “regular old coding” work I’ve done so far in 2017 is probably about 15% of my total earnings for 2016, so I’m already at about 90% of 2016’s income. Keep in mind that these are sales numbers, and not everything I’ve sold has yet been delivered or paid for. But the contracts are all signed.

This might sound like I have it made for 2017, and in a way I do, but a lot of this money is just going toward back taxes and credit card debt from 2016. I had a dry stretch in 2016 that really put the squeeze on at an inconvenient time. And when you get behind on taxes, it can be very hard to dig yourself out of that hole. So the pressure is still very much on to make a lot more sales over the next few months.

My plan is to first go after as many training gigs as I can, and once I think I’ve exhausted those resources, go after “regular” contracting gigs. And all the while I plan to put in an hour or two a day on Angular on Rails.

Let me talk for a second about the training I’ve done and the training I’m going to do. Last week I taught a 5-day Ruby on Rails class in Vancouver, Washington. In two weeks I’m teaching a 3-day Angular 2 class in Sofia, Bulgaria. Then, in June/July, I’m leading a 5-week coding bootcamp. I have two other leads, both in India, incidentally. One would be a remote teaching gig (in the middle of the night!) and the other would require me and the family to move to India for something like three months.

I also started something called the Grand Rapids JavaScript Meetup. I’m hoping/expecting that this will lead to some training and/or contracting gigs.

My #1 goal for 2017 is to go full-time on Angular on Rails. The way I’ve quantified this is that when I hit a consistent $10K a month from Angular on Rails, that means I’ve hit my goal. Even though I’m only making a few hundred a month right now I have a pretty good feeling about getting there. We’ll see where I am in a few months.

January 2017 Angular on Rails Income Report

In January I made $371, according to Stripe.*

*It seems like Stripe can be a little bit inaccurate since it always gives me the total sales number including sales that later got refunded. I had one or two instances where people got charged twice for some reason, so I had to roll back the second charge. There were also a couple people who wanted to pay me via PayPal, so those two things roughly cancel each other out.

Here’s my income for the 6 months Angular on Rails has been making money:

– August 2016: $868
– September 2016: $1053
– October 2016: $1580
– November 2016: $871
– December 2016: $428
– January 2017: $371

You can see a clear downward pattern. Why has revenue gone down? I think the simplest answer is that I haven’t really done anything to make it go up.

Let me talk about what I’ve done since January 1st. Keep in mind that I’m writing this on February 23rd.

A little after January 1st I offered a free training program. I sent out an email to my list of about 1200 subscribers and gave them a link to apply. To my great surprise, over 110 people applied for the free training. That’s almost a 10% conversion rate. Insane.

I told my subscribers that I would choose 20 students in order to keep the class size down, and that’s what I did. I think only about 16 students were able to join because there were time zone challenges. The format was a once-weekly 90-minute webinar. If I remember correctly, almost all of them attended the first session, but only 5 or 6 of the students stuck with it through the end.

I attribute the attrition to the facts that a) it was a free program and b) I had some really serious technical issues during the first session and had to push the whole program back a week.

Anyway, the class went reasonably okay. I plan to do it again. Next time, I plan to provide the students with videos that they can consume on their own time. The “live” time will be more of an office hours type thing as opposed to me just lecturing, which has very little benefit over a video. I’m very glad that I did this free training program before I tried to offer a paid one. I don’t think people would have been very happy if they had paid $X00 for the program I delivered this time.

Another thing I did recently was to pay for a book cover redesign. Here’s the original cover:

jasonswett2d

And here’s the new cover:

winning cover

I got the original off of Fiverr for $15 (IIRC) and the new one off of 99designs for around $550. (I think I overpaid but I’m happy with the end result.)

So, not much of the stuff I’ve done so far in 2017 is stuff that really directly drives sales.

Here’s what I think I need to do next. I have a $39 ebook that converts at a decent rate. Nobody right now is buying my $89 or my $299 product. I think the thing I need to do next is get my $89 product selling.

One obstacle is that I believe my $89 product to be outdated and kinda sucky. It’s hard to persuade people to buy a product I don’t really think they should buy. So I need to refresh the product. Second, I need to do a better job of presenting the $89 product on the sales page. If you give me $89, what exactly do you get? Right now the answer isn’t very clear. I need to make it more clear.

Once the product is refreshed and I make it better-presented on the sales page, I plan to re-launch the $89 product. When I originally launched the video package in October 2016, I made about $1600 that month, and at the time I had about 900 subscribers. Now I have closer to 1400 subscribers, so I think I can expect some pretty good launch sales.

I’m teaching an Angular 2 class in Bulgaria in two weeks and I need all the time I can get between now and then to prepare. I plan to do the $89 product refresh and relaunch when I get back. I’m giving myself about two weeks to do it. My deadline for relaunch is 3/23.

December 2016 Angular on Rails income report

In December I made $428.50. Here’s the full financial history over the months:

– August: $868
– September: $1053
– October: $1580
– November: $871
– December: $428.50

Like in November, I didn’t do much in December to try to make Angular on Rails make money. Instead I spent some time fixing some foundational issues to prepare for long-term success. Now that I know Angular on Rails is something that can make money, it’s no longer premature for me to invest serious time into things like making the site look good.

By the way, you might wonder why December’s figure is so oddly precise compared to the other months. That’s because my new payment plugin allows me to charge percentage discounts, not just dollar amount discounts.

November 2016 Angular on Rails income report

I’m gonna try to bang out this post as quickly as possible.

Income in November was $871. Let’s look at that next to the other months:

– August: $868
– September: $1053
– October: $1580
– November: $871

As you can see, November was the first month where revenue went down instead of up. I believe the main reason for this is that I didn’t really do anything in November to make revenue go up. I didn’t do any launches and I barely communicated with my list at all.

Frankly, I don’t have any plans to necessarily do much in December to make income go up either.

I recently hired a business coach who I think I’ll keep anonymous. He’s not really a coach, just a successful person I know who I believe can help me.

In my first call with this coach who I’ll call “B”, he shared two opinions with me that I found kind of surprising: a) my conversion measurement is woefully inadequate and b) I should get off of Gumroad in order to have a better ability to track sales. Now that I see these things, they’re obvious. But I never would have found them myself. This is the exact reason I wanted to hire a coach and the exact type of outcome I hoped for in our call.

B also suggested that I add a content-specific opt-in to each of my 8 or so most popular blog posts. Right now I’m getting about 40 subscribers a week or 120ish a month. Based on my traffic, B seems to believe that I can and should be getting more like 500 new subscribers a month. That would of course be good.

So my priorities right now are:

1. Get adequate conversion tracking set up
2. Add some content-specific opt-ins to my most popular posts
3. Do a few certain other things to improve my landing pages/sales pages

So I expect revenue in December to be pretty low again, probably even lower than in November. But then I’m probably going to expect January to look more like October or even better.