Category

strategy

customers
Premium

Solving Problems the WooThemes Way

I was a guest on the WordPress Community Podcast last night and had a lot of fun with the show’s hosts, Joost de Valk & Frederick Townes.

We discussed a lot of the strategies & “policies” that we have implemented with WooThemes; especially with regards to customer service, creating loyal & evangelistic users, as well as our development cycles & processes around that.

Definitely worth a listen if you have 40-odd minutes to spare.

inspiration
Premium

No Space for Complacency

One thing that I’ve learned over and over again of late is that there is absolutely no space for compromise & complacency when dealing with customers. These are the people that makes your business a success and they ensure that you are able to pay the bills; so never - ever - stop short of pulling out all the stops to please your customers!

business model
Premium

Client Work (Part 1)

Ever since WooThemes established itself to such an extent that I could earn enough money from it to make a living thereof, I (Magnus & Mark made similar decisions with regards to their freelance activities) decided to call it a day for doing client work (which is why more than a year later, radiiate - a boutique web design agency before - is only making a comeback now).

As a result, we have a pretty strict “no custom design or development work” policy at WooThemes, since we choose to rather focus our attention on internal projects / ventures / activities that furthers & growths the business / brand. Yet, we still get a bucketload of e-mails from people (I’d assumed they’re fans of our work) requesting a custom quote for a designing / developing a site with X, Y & Z specifications. The answer is always the same however: “Sorry, but we don’t do custom design & development work.”

Considering the sheer amount of requests we get for client work though, has lead me to at least re-think our approach & more important our mindset in this regard. I mean - are we just ignoring the cash that is being put on the table right in front of us?

So I’ve gone back and forth about how we could potentially handle this situation (which is an obvious contradiction to our decision of not doing client work) and maybe maximize the potential profit or value from the opportunities that are presented. I’ve also decided that I need to take emotion out of it and I can’t thus justify my decision (not to engage client work) on the fact that I don’t like to work with clients, since that is completely subjective and based on bad experiences (neither of which makes for a good basis in making the *right* business decision).

In the end (i.e. after this epic conversation I had in my own head), I decided that this quote by David Heinemeier Hansson (from this video) summed up how I felt:

“If you’re not working on your best idea right now, you’re doing it wrong.”

What I’m saying is WooThemes’ best “idea” at this stage is to ignore the short term benefits (profits) of doing client work, as it is more profitable & sustainable to focus on building great products which would pave the way for the company in the longer term. I’m also 99,9% sure that if I actually did an extended financial analysis of this, it’d show that the ROI that client work would deliver in the short term is far outweighed by the magnitude of continuing to build our products and brand.

So that’s our decision in this regard. I’m not suggesting that it’s impossible to actually make this model work whereby internal projects / products are used for marketing (more on this in a future post) and to thus generate leads for client work. I am however saying that this is not a road that WooThemes are exploring at the moment…

financials
Premium

Startup Growing "Pains"

When you’re within an ambitious startup, you want to tackle so many different things at the same time, but due to the size of your team it is simply not possible. This leaves you with two choices: 1) invest further and increase the size of your team; or 2) be content to prioritize everything you tackle.

The first option is generally too risky for me and the second is largely frustrating i.e. I’m between a rock & a hard place.

business
Premium

First to Market

In the extremely agile online world, there seems to be a premium placed on getting to market first with a new feature or product. But I’d like to contest the viability and probably the suitability of that premium, since I don’t believe that it’s crucial to be the first to the market**.

Getting to the market first, gives you the bragging rights and all of the hype / publicity that goes along with that. This is obviously great and I’m sure this is every marketer’s dream, since the marketing angles are pretty easy; it is undoubtedly much harder to hype & market something when it already exists, but when you’re game-changing this is a massive advantage. It is also considerably easier to create & build your own share of the market, when no competitors exist.

So all-in-all it would seem like a great idea to get to the market first. This does however not mean that you need to make this the be-all & end-all of your strategy.

I believe that you have just as much space & just as many angles to market your brand & offerings when you aren’t first to the marketplace. You may need to be a little more unique (both in terms of your offerings, which need to solve problems in an unique way *and* your marketing efforts), but it is 100% possible.

In fact, sometimes I actually prefer this approach, as I have a lot more information available to me before having to commit to a specific strategy. When we first launch the club subscriptions on WooThemes (for example), we were heavily influenced by some of Joomla theme developers (most notably RocketTheme), who were already offering similar services. We may have not been first to market and club subscriptions definitely wasn’t a groundbreaking idea at the time, but we did bring our unique thinking to the business model and today it makes up a considerable chunk of our monthly revenues.

If you can do something better or in a more unique way to your competitors, you’ll always have a chance to gain market share and build a business from your efforts. So don’t be too focused on getting to market first; rather do something unique in your own personality & time.

**Note: This applies in most cases, so I’ve used a good dose of generalization here.

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