Building In Public, BIP. Is it expensive?
The trend #BuildingInPublic is all around. I understand the logic but let's talk about how much it costs us to run. The more users use your app/product, the more money you pay for its resources: database, bandwidth etc.
To build in public, we are inviting the "world" to use our product, at most times for free, until all the feedbacks are applied in which we can start charging a fee. In the interim, how do you keep up with the running costs when there's no money coming in? Do you have a set amount of users using it for free? Do you have a budget of how much you want to spend per month? I assume we keep the 9-5 to fund our startup. What's the secret?
Hmm, interesting. I am not sure why you feel like it would be more expensive for it to be than build it in non-public or stealth conditions. Building in public does not necessarily mean utilizing a freemium model or providing the product free of charge.
The only additional "cost" would be costs associated with the additional content that you are sharing with the world -- whatever that might be.
So, could you please elaborate a bit on why do you think it is more expensive than the alternatives?
Sure. I'd assume at most stages in development, your app would be using resources, based on the size of users that are using your app while providing feedback. Let's say you have 500 users that are not paying, that means you'd have a lot of resources to pay for to keep the website running.
Yeah, I understand that but I am missing the connection of that to building in public.
Your costs (whether fixed or variable) are not dependent on your build model. It is based on your infrastructure + monetization model.
So, if you can walk me through, preferably step by step, the connection between building in public and costs, we can go from there, maybe?
Right. My take on BIP is that you're building an app while people are using it, getting feedback etc, correct? If yes, while you build, there must be some costs associated to running that app. Correct? Right... let's says the app is nowhere near a "chargeable" state, the more users, the more you may spend on infrastructure (speed, database etc). Not all apps have monetization so we can forget that. At the time your app is public facing to the time just before you start to charge customers, what would that cost be?
Well, I'll be honest, the costs might be similar even if you are not building in public.
Before product-market fit and until profitability (at least break-even point) you are using only existing resources for all your costs.
You might build in stealth mode but your fixed costs will be there. Then after you launch, if you don't hit your break-even point immediately, and depending on your monetization model, the same issue will be there.
I don't think there are any inherent costs in building in public regarding the product. It is more about your business model as a whole, your stage as a business, market forces.
On the contrary, the main point of building in public is to understand the market dynamics before the launch happens by leveraging transparency. That way you have earlier feedback on the idea, you can pivot earlier, reach product-market fit earlier, and therefore pass the profitability line earlier.
Sorry for the late reply. I'm blown away from the wealth of information from your replies. Many thanks.
Thanks, man. I am glad that you find it useful.
Agree with @gokceozantoptas wholeheartedly, but just adding to that - you're free to incorporate whatever feedback / requests you receive from your users, or ignore them if it does not make sense for your own, long-term business plan.
You can / should charge for your services. #BuildInPublic is a methodology for discovering what actual people think about your product / service / idea, not a mechanism for you to offer your services for free.
OH! I actually thought it should be free until it's fully ready! No wonder why I gave @gokceozantoptas such a hard time trying to understand what I was trying to bring across. Sorry, mate. But I have no idea I could charge. Many thanks for that.
That's what I was trying to say and obviously and utterly failed XD