I'm actually thinking more of his bazillions of well-chosen targeted landing pages (e.g. "Dolch sight words bingo"), his ability to rank highly enough in search engines for the right words that interested visitors flow into his site (you can't be profitable with 40 uniques a day) — that sort of thing. In essence, yes, you need to pay attention to what is working, but first you need to find something that works in order to pay attention to it.
> There is a super power at play here, but it doesn't take a radioactive spider to get it. People who can simultaneously speak "customer service" and "technology" are rare. Many of the world's most successful software businesses have noticed that and achieved billions just by arbitraging a trivially corrected ineptitude common to programmers.
I agree, this is one thing that really benefits him. But from the standpoint of someone starting out with nothing, I'd say shoddy customer service is a pretty good problem to have — it means you have customers who need serving! If you can't do customer acquisition, customer retention becomes a moot point. Dutifully serving two people who each pay $20 a month will not make you billions of anything.
Patrick actually mentioned this on his blog some years back: He had a tiny customer base and knew he needed to find a way to grow it. The conclusion of the story was something along the lines of "I did marketing and then it was OK." That's where a lot of people's stories would have gone differently.
No, that's the awesome thing about software sales: You absolutely can be!
Step 1: Price software at $20
Step 2: Assume hosting costs of $10 per month
Step 3: Convert at a ratio of 200 views to 1 sale [1]
Step 4: Profit!!!
Admittedly, your profit for the first month will be $40 - $10 = $30, and your hourly wage will be $30 divided by however many hours you worked on the thing.
But let's say the software, like BCC version 1, is basically "a random number generator attached to a GUI" (as I vaguely remember patio11 describing it once), so you didn't put in too many hours. Now if you can manage to maybe triple your daily uniques to an entire 120 views a day and keep converting at that ratio without putting in too many more hours, you already have a business that'll pay for your pizza, forever, without really all that much effort on your part.
Now, if you assume an opportunity cost at google salary for working on this, of course it'll never be profitable. But if I assume google salary opportunity cost for my work, I'm losing money at an incredible rate by being a doctor, too.
[1] Someone who actually sells software for a living could probably give you more realistic numbers here, but these don't seem entirely unachievable to me.
I don't sell software (yet) but I do Sell Things On The Internet.
200 views to 1 conversion is a little high, but not completely impossible. 1000 views to 1 conversion may be a bit more realistic. However, if you've got 40 uniques a day, that still means you're selling more than 1 copy a month, and are thus in profit!
(This is why SEO plus software or other product sales work so well, btw - the CPM you're getting off your views with a well-targeted match between content and product is far, far higher than you'll ever see anywhere outside of poker blogging. )
I have a certain amount of expertise at the type of SEO Patrick used to bootstrap BCC - I've used a similar technique to get my last public web project to 400k-ish uniques/month.
It's not rocket science, and most people on HN could do it. As tptacek has said several times, it just takes a couple of years' worth of persistence and willingness to look at what's actually happening and adapt for it.
> There is a super power at play here, but it doesn't take a radioactive spider to get it. People who can simultaneously speak "customer service" and "technology" are rare. Many of the world's most successful software businesses have noticed that and achieved billions just by arbitraging a trivially corrected ineptitude common to programmers.
I agree, this is one thing that really benefits him. But from the standpoint of someone starting out with nothing, I'd say shoddy customer service is a pretty good problem to have — it means you have customers who need serving! If you can't do customer acquisition, customer retention becomes a moot point. Dutifully serving two people who each pay $20 a month will not make you billions of anything.
Patrick actually mentioned this on his blog some years back: He had a tiny customer base and knew he needed to find a way to grow it. The conclusion of the story was something along the lines of "I did marketing and then it was OK." That's where a lot of people's stories would have gone differently.