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How To Start A Dev Tools Company | Startup School — Transcript

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  1. 0:01[Music]
  2. 0:09hello my name is Nicola D and I'm a
  3. 0:12group partner here at YC before that I
  4. 0:15was the co-founder and CEO of algolia
  5. 0:18algolia is a search API used by millions
  6. 0:21of developers to build a great search
  7. 0:23experience in their apps and websites
  8. 0:26and it's relevant today because today
  9. 0:28we're going to speak about death tools
  10. 0:30and how to start a def tools company so
  11. 0:34here's what we're going to cover first
  12. 0:36we'll discuss about the funding team and
  13. 0:38how to find your idea then how to start
  14. 0:42the company from the prototype to the
  15. 0:44MVP and finally we'll dive into the go
  16. 0:48to market including sales and marketing
  17. 0:51for def tools but first what is the def
  18. 0:54tool so a def tool is software that is
  19. 0:56used by developers to help them build
  20. 0:59product
  21. 1:00and that includes a lot of aspects from
  22. 1:03coding testing debugging documenting
  23. 1:07deploying running it's all of the gamut
  24. 1:09of aspects of that job and it's a broad
  25. 1:12category then you can think about idees
  26. 1:15like vscode API like strip twio or
  27. 1:19algolia my company library and
  28. 1:22Frameworks like react not GS or
  29. 1:24longchain or even infrastructure or
  30. 1:27cloud services like AWS or vers so and
  31. 1:30many other tools Docker terraform data
  32. 1:33dog GitHub you get it it's very diverse
  33. 1:37and at YC we've supported many of these
  34. 1:40Dev tools hundreds of them and we
  35. 1:42already have two public companies gitlab
  36. 1:45the open source GitHub and peder Duty
  37. 1:48that started as a simple alerting system
  38. 1:51and now is used by half the 14 500
  39. 1:54companies and many others you probably
  40. 1:56know about strip Docker Hoku super
  41. 2:00segment poog Apollo airb and also alonia
  42. 2:04of course and we've learned a lot from
  43. 2:07them so let's dive in and start at the
  44. 2:10founding stage well first you need a
  45. 2:13founding team and the key aspect of
  46. 2:16death tool is that you are going to
  47. 2:18build a technical product for developers
  48. 2:21obviously you need to be a developers
  49. 2:23yourself most of our co-funding team for
  50. 2:26Dev tools are all developer teams
  51. 2:30and the great thing about death tool is
  52. 2:32that developers are actually using de
  53. 2:35tools every day so when you are building
  54. 2:37a de tool you are basically helping
  55. 2:39yourself in your action of building a
  56. 2:42product so let's take a step back and
  57. 2:44chat quickly about what are good and bad
  58. 2:47death tool ideas and as a profess let me
  59. 2:50start by telling you that with the
  60. 2:51Advent of llms and a in general it's
  61. 2:54actually very difficult to know for sure
  62. 2:56today what's a good or bad idea the bad
  63. 2:59ideas the ideas of yesterday could
  64. 3:01actually be possible to make successful
  65. 3:03now thanks to llms some ideas are
  66. 3:07actually more difficult than others
  67. 3:08developers every day are going to work
  68. 3:10on things they are actually not going to
  69. 3:12like like documentation QA testing and
  70. 3:15these become obvious ideas for them to
  71. 3:18fix for others the problem here is that
  72. 3:21they are not the only one to think about
  73. 3:23it and that creates a lot of noise and
  74. 3:25that's why there are so many of these on
  75. 3:27the market do you really want to build
  76. 3:29the next yet the next QA tool for other
  77. 3:32developers H I don't know another way to
  78. 3:35look at it is the difference between
  79. 3:37build time and runtime ideas so Doug QA
  80. 3:40testing all of these ideas are build
  81. 3:43time ideas things tools you're going to
  82. 3:46use when you building the software it
  83. 3:49happens that these ideas are mostly nice
  84. 3:52to have you could build your product
  85. 3:54with them what's more interesting are
  86. 3:57runtime ideas why because at run time it
  87. 4:01becomes really critical it's must have
  88. 4:04products if you bet on a on API for
  89. 4:07example you cannot run your own product
  90. 4:10if it's down that's why it's more
  91. 4:12critical and it's way better idea for f
  92. 4:15tools the other advantage of these
  93. 4:17runtime ideas is usage because the more
  94. 4:22your customers are going to grow usually
  95. 4:25the more they're going to use your
  96. 4:27product so your incentives are align
  97. 4:30think about stripe for example if their
  98. 4:32customers sell more product they make
  99. 4:34more money everyone is happy much better
  100. 4:37idea another quick category uh that I
  101. 4:40can touch upon is libraries and
  102. 4:42Frameworks these can be greater is
  103. 4:44usually open source but they can also be
  104. 4:47very challenging to monetize think about
  105. 4:50pandas for example very difficult to
  106. 4:52make money out of that the one way you
  107. 4:55can monetize these ideas is by offering
  108. 4:57a hosting service think about next GS
  109. 5:00and Verso for example okay last point I
  110. 5:04wanted to touch on this idea which is
  111. 5:07the llm and AI Trend actually with this
  112. 5:10change in the world there are many new
  113. 5:12death tools being created and it's
  114. 5:14awesome it's so exciting to work on the
  115. 5:16de tool that's going to help these
  116. 5:17companies building nlms but it's also a
  117. 5:20time where the market is very nent so a
  118. 5:24obuse great idea is llm observability
  119. 5:28well uh it's obuse right anyone building
  120. 5:31with LM they want to know how they are
  121. 5:33doing they want to be able to evaluate
  122. 5:35them guess what many other companies
  123. 5:37think the same thing and that's why you
  124. 5:39have dozens if not hundreds of such
  125. 5:41companies out there it doesn't mean that
  126. 5:44it's a bad idea but I think that if you
  127. 5:46are starting in that space you need to
  128. 5:48have a clear idea of how you are going
  129. 5:51to differentiate yourself or are you
  130. 5:53going to win against all of these
  131. 5:54competitors okay which leads me to a few
  132. 5:58mistakes people often do the first one
  133. 6:00is waiting for the perfect idea you are
  134. 6:04going to wait for a very long time let
  135. 6:06me go back to this llm observability
  136. 6:08ideas I would actually encourage you if
  137. 6:10that's the idea you have just start
  138. 6:13that's okay even if you don't
  139. 6:14differentiate yourself right away that's
  140. 6:16okay you learn as you go and eventually
  141. 6:19you'll be able to pull it off or you'll
  142. 6:21change your idea which leads me to my
  143. 6:23second mistake sticking with the wrong
  144. 6:26idea for too long you may not realize
  145. 6:29but
  146. 6:3050% of the companies in YC eventually
  147. 6:34pivot from their first idea it's huge
  148. 6:37and it's also true for death tools
  149. 6:39finally last mistake thinking you need a
  150. 6:42business founder in the team I know that
  151. 6:44what I start when I created agolia we
  152. 6:46need up creating agolia with two Tech
  153. 6:48coers but it crossed our mind hey we
  154. 6:50don't know how to sell we need to hire
  155. 6:52or to find some other co-founder who
  156. 6:54knows about sell no it's actually ways
  157. 6:58understand you think to s to learn how
  158. 7:00to sell your product actually we check
  159. 7:02the numbers
  160. 7:0474% of YC def tool companies had only
  161. 7:08Tech co-founders and that's compared to
  162. 7:1145% for all of the other companies okay
  163. 7:15so now that you have a team and an idea
  164. 7:17where do you start well there is only
  165. 7:20two things you have to do build and talk
  166. 7:23with users there is no specific order
  167. 7:26you can actually start by talking with
  168. 7:27users because they're going to help you
  169. 7:29figure out out if your initial IDE is
  170. 7:30good or you can start by building a
  171. 7:32prototype so you can get easier feedback
  172. 7:35from users let's speak about that
  173. 7:37prototype the most important thing here
  174. 7:40is not to over engineer it you should do
  175. 7:44that quick and dirty and I know that it
  176. 7:47can be very difficult for some
  177. 7:49developers out there especially for
  178. 7:50experienced Engineers who Pride
  179. 7:53themselves on robustness and scalability
  180. 7:56of their code but the truth is that the
  181. 7:58most important thing at that stage is to
  182. 8:01iterate as fast as you can all of th I
  183. 8:05would assume that you'll throw away 90%
  184. 8:09of all the code you write so your goal
  185. 8:12at that stage is just to identify the
  186. 8:1410% of what you building that's actually
  187. 8:17valuable as fast as possible and then
  188. 8:20later on you can refactor this 10% only
  189. 8:23and avoid wasting a lot of time as
  190. 8:25youate of course you'll want to speak
  191. 8:27with users and get feedback it's
  192. 8:29completely okay to show them a prototype
  193. 8:32please don't wait to have a perfect
  194. 8:33product just show them a prototype and
  195. 8:36start Gathering feedback as early as you
  196. 8:38can and that will eventually lead you to
  197. 8:42an MVP a minimal viable product and this
  198. 8:45word the V is important valuable you
  199. 8:48need to provide value to your customers
  200. 8:51it's much better to be 10x better on a
  201. 8:54very tiny thing for someone who cares
  202. 8:58about it well working for a niche is
  203. 9:00completely okay once you have real
  204. 9:02customers who love your product it will
  205. 9:04be very easy to expand from there let me
  206. 9:06give you the example of algolia well
  207. 9:08today algolia is a very broad large like
  208. 9:12full featured search engine right but
  209. 9:15when we started to be honest it was just
  210. 9:17a glorified autocomplete very minimal
  211. 9:21but that product was so much better than
  212. 9:23whatever else was available at the time
  213. 9:26that some people cared enough about it
  214. 9:29and when when we started demonstrating
  215. 9:31it we didn't have much to show actually
  216. 9:34I still remember our first customer that
  217. 9:36first meeting when I did demo using a
  218. 9:39command line to index uh content uh we
  219. 9:42didn't have any API client yet we didn't
  220. 9:44have any admin UI yet just a command
  221. 9:46line and then a very simple web page to
  222. 9:49show the search that was enough to close
  223. 9:51a $2,000 a month contract okay you have
  224. 9:55built something you can show users so
  225. 9:57the next step is to talk with users
  226. 9:59I know that many developers many techers
  227. 10:02actually introvert and they don't like
  228. 10:04speaking with users or with customers
  229. 10:07like they don't like sales well you may
  230. 10:10not realize but as you are building a
  231. 10:12death tool you have a huge Advantage you
  232. 10:15know your audience you are your audience
  233. 10:18you are a developer yourself you speak
  234. 10:19the language of your customers you are
  235. 10:21uniquely qualified to understand them so
  236. 10:25you'll see it actually will be way
  237. 10:27easier than you think please don't wait
  238. 10:29wait for the product to be ready you
  239. 10:31want to learn ASAP right away if you are
  240. 10:34solving a real problem then people will
  241. 10:36be ready to pay for but how do you find
  242. 10:39these users two things outre and
  243. 10:42launches let's speak about Outreach
  244. 10:44quickly death tool co-founders often
  245. 10:47plan to have a bottom up adoption model
  246. 10:50where individual developers are going to
  247. 10:52come inbound try the product and convert
  248. 10:54or maybe becom their Champions U at
  249. 10:57bigger companies well I have some bad
  250. 10:59news for you nobody knows you yet so to
  251. 11:04get there first you need to get people
  252. 11:07to know about you and there is no other
  253. 11:09way to do that than outreaching and
  254. 11:10finding them yourself but you need to be
  255. 11:13smart about it start with your network
  256. 11:15your previous colleagues or classmates
  257. 11:18and then you expand from there um
  258. 11:20friends of friends you can leverage
  259. 11:22LinkedIn you can find like specific HS
  260. 11:24over there but please please personalize
  261. 11:28your messages
  262. 11:29like don't copy what you can see out
  263. 11:32there sent by marketers actually your
  264. 11:35developers I'm sure you hate these
  265. 11:36messages so don't do the same just ask
  266. 11:39yourself would you be excited to open
  267. 11:42your message then ask your co-founder
  268. 11:45ask other developer friend would they be
  269. 11:47excited to open your message and then
  270. 11:49read your email and then possibly act on
  271. 11:50it well you simply iterate until they do
  272. 11:54now let's speak about launching you can
  273. 11:57launch many times and that's what you
  274. 11:59should do here to get more
  275. 12:02attention the best place to launch for
  276. 12:06death tools I would AR you is Hacker
  277. 12:08News Hacker News is a community of
  278. 12:11intellectually curious people many of
  279. 12:14them are developers and there is that
  280. 12:17section in hacka news called show Eden
  281. 12:20that's the perfect place to launch and
  282. 12:23gather feedback on what you are building
  283. 12:25again like when you we writing like kind
  284. 12:28of this Outreach messages please don't
  285. 12:30do marketing don't try to sell your
  286. 12:33product just explain plainly and simply
  287. 12:36what's new and interesting in what you
  288. 12:39are building that will be very engaging
  289. 12:41for the community and they'll share
  290. 12:43comments to you engage with these
  291. 12:45comments don't let them unanswered try
  292. 12:48to engage with people asking questions
  293. 12:50some of them are going to be haters and
  294. 12:52be rude well you should engage with them
  295. 12:54too but your goal is not to convince
  296. 12:56them it's just to convince any other
  297. 12:59readers who are going to read how you
  298. 13:00reply to these haers just be classy here
  299. 13:03one of the great example here is segment
  300. 13:06um they simply did an experiment by
  301. 13:09launching their next idea on Hacker News
  302. 13:11and it blew up they got hundreds of
  303. 13:14votes and so many comments that they
  304. 13:17knew they were onto something and that
  305. 13:19became their idea another example is AMA
  306. 13:22olama helps companies run llms on their
  307. 13:26own machines well it started as a
  308. 13:28comment on a comment on another post on
  309. 13:31Hacker News and just from that they got
  310. 13:33a few people interested and and then
  311. 13:37shortly after they launched their
  312. 13:38product it complete took off on Hacker
  313. 13:41News they got like again hundreds of H
  314. 13:43votes and they knew they were on do
  315. 13:44something and they didn't stop there
  316. 13:47they launched again and again every few
  317. 13:49months each time they had like new
  318. 13:51things to share and that continued to
  319. 13:53fuel their growth uh creating a lot of
  320. 13:57excitement in the community Hacker News
  321. 13:59best place to launch the last thing I
  322. 14:01wanted to touch upon here in that
  323. 14:03section is you should do things that
  324. 14:06don't scale so again you're here to
  325. 14:09learn as fast as possible from your
  326. 14:11users what they like or not about your
  327. 14:14product a great example of a team that
  328. 14:17did things that don't scale is stripe
  329. 14:19early on the stripe team were going to
  330. 14:22their customers small startups and they
  331. 14:25help them Implement their own product
  332. 14:27sitting side by side front of the
  333. 14:29computer coding with them that was not
  334. 14:32only a great way to make sure that users
  335. 14:35were going to be satisfied we going to
  336. 14:37be actually excited about what they were
  337. 14:39building but it was also a great way to
  338. 14:41gather invaluable feedback very early
  339. 14:45from their users so it's completely okay
  340. 14:48to do things that don't scale if they
  341. 14:50lead to faster learnings okay and here
  342. 14:53are a few mistakes to avoid so remember
  343. 14:56the goal is to go fast and trade fast so
  344. 14:59please don't choose a text tag because
  345. 15:01it's cool because you want to learn it
  346. 15:03no you should took it because of your
  347. 15:05expertise with it so that you can
  348. 15:07iterate as fast as possible other
  349. 15:09mistakes we we touch not talking with
  350. 15:13users please get that feedback as fast
  351. 15:16as you can which also means avoiding
  352. 15:19overbuilding before getting that
  353. 15:21feedback maybe a small thing here be
  354. 15:24careful about that feedback be careful
  355. 15:26about not misunderstanding some of the
  356. 15:28developer feedback back for example they
  357. 15:31may share they may tell you how you
  358. 15:32should beat your product you don't care
  359. 15:35you just want to know if they would use
  360. 15:37your product or not and why or they
  361. 15:39could tell you hey you know what I could
  362. 15:41build this in a week I don't need it
  363. 15:43well guess what you just build it
  364. 15:45yourself in a week you you should not
  365. 15:47mind about that just move on and
  366. 15:49continue improving the product last
  367. 15:51mistake some teams do is hiring too
  368. 15:54early very early on you don't even know
  369. 15:58if your product uh is providing value
  370. 16:00please don't hire anyone until you have
  371. 16:03convinced yourself you're working on the
  372. 16:05right idea let's now talk about go to
  373. 16:08market and the first question you should
  374. 16:11ask yourself about go to market is your
  375. 16:13business model what explicitly should
  376. 16:16you be open source open source has
  377. 16:18become one of the main go to market for
  378. 16:21death tools and it definitely works as a
  379. 16:23business model as many companies have
  380. 16:25proven like data breakes elastic ashic
  381. 16:27cob gitlab all aome great companies I
  382. 16:30would argue that you must be open source
  383. 16:33if you are working on things like a
  384. 16:34library or framework that's what today
  385. 16:37expecting for the market developers
  386. 16:39wouldn't Implement on top of a new
  387. 16:41framework that is not open source you
  388. 16:43should also be open source if you are
  389. 16:45dealing with data especially sensitive
  390. 16:47data a new database would need to be
  391. 16:50open source or an API connecting with
  392. 16:53sensitive data in a CRM or maybe an EHR
  393. 16:56needs to be open source you could be
  394. 16:59open source but probably don't have to
  395. 17:01be open source if you are working on
  396. 17:03other things like an API or maybe an
  397. 17:05application like a butt cracker maybe in
  398. 17:07that case it's not as important but
  399. 17:10still could be your differentiation open
  400. 17:12source has quite a lot of benefits your
  401. 17:15customers are developers well as you
  402. 17:18know already developers prefer working
  403. 17:20with open source tools it's also going
  404. 17:22to help you create more awareness
  405. 17:24through the community it can be also
  406. 17:26your differentiation like you could be
  407. 17:28the open source version of X think about
  408. 17:32post and amplitude or super base and
  409. 17:34Firebase or airb and five TR great
  410. 17:37approach speaking of airb you could also
  411. 17:40receive contribution from the community
  412. 17:43in the case of airb they got a lot of
  413. 17:44connectors contributed from the
  414. 17:46community but I would be careful on that
  415. 17:48one most cases you shouldn't count on
  416. 17:51them because the quality of the
  417. 17:52contribution may not be up to your
  418. 17:54standard and then you have to deal with
  419. 17:57the contributors and that could be more
  420. 17:59actually more difficult than you think
  421. 18:02but in most cases I would say that you
  422. 18:03should not count on them good
  423. 18:06contributions are actually pretty rare
  424. 18:08and last benefit but not the least is
  425. 18:10the trust and it's actually very
  426. 18:13important for large Enterprises in the
  427. 18:16Enterprise real take the example of met
  428. 18:19Plum for example who is building a open
  429. 18:21source EHR the fact that they are open
  430. 18:24source I would argue probably help them
  431. 18:26shorten their sales cycle with
  432. 18:28Enterprises by a year or more there is
  433. 18:32one thing you need to think about
  434. 18:34however when you are creating an open
  435. 18:35source project maybe not at the start
  436. 18:38but pretty soon it's
  437. 18:40monetization if you cannot monetize your
  438. 18:43product you don't have a company at some
  439. 18:46point even if it's later in the life of
  440. 18:47the company you need to earn money there
  441. 18:50are many variants out there but it's
  442. 18:53good to look at the common approaches
  443. 18:55some of the common ones are hosting
  444. 18:57having a cloud offer so your customers
  445. 18:59may use your open source free
  446. 19:02self-hosted but they could also pay for
  447. 19:05you to host it so that they don't have
  448. 19:07to maintain it sometimes Cloud version
  449. 19:10also have like some additional features
  450. 19:12like Team Management another one is
  451. 19:14being open core in that case you usually
  452. 19:16have a a special offer typically an
  453. 19:18Enterprise offer that have advanced
  454. 19:21features that are not in the open source
  455. 19:23version or maybe they're on a def
  456. 19:25license common features are typically
  457. 19:27the ones that are going to to be
  458. 19:29necessary for Enterprises like SSO o
  459. 19:32lugs Disaster Recovery slas these kind
  460. 19:35of features and finally some open source
  461. 19:38companies charge for support and
  462. 19:41services but I would actually discourage
  463. 19:43you to follow that monetization pass
  464. 19:46because your incentive becomes to build
  465. 19:48the most complex product possible so you
  466. 19:50can charge for support and services
  467. 19:53which is a bad incentive and if your
  468. 19:55product doesn't need too much support
  469. 19:56then people are going to turn and not
  470. 19:57renew their support contract and what if
  471. 19:59you are not open source well for these
  472. 20:02Dev tools they are usually following one
  473. 20:04of two approaches either they usage
  474. 20:06based like apis aloia too stripe and so
  475. 20:11they charge based on the usage their
  476. 20:14customers do uh possibly they have a
  477. 20:16volume discount or Enterprise specific
  478. 20:19options that are on the side and the
  479. 20:21second approach is having some specific
  480. 20:24plans typically like a good better best
  481. 20:27approach good is going to be the self
  482. 20:29serve option um that's going to solve
  483. 20:32the problem of Developers for a very low
  484. 20:34price for the better options usually are
  485. 20:36going to be interacting with engineering
  486. 20:38managers who are going to care about
  487. 20:40collaboration that's going to enable
  488. 20:42teams still can be self- served and the
  489. 20:45best option is higher up you are talking
  490. 20:48to the CTO it's all about security audit
  491. 20:50logs Disaster Recovery SLA and in that
  492. 20:54case it's usually a sales Le approach
  493. 20:57let's speak about sales so as a quick
  494. 21:00reminder from what I was saying earlier
  495. 21:02don't fear Outreach even if most death
  496. 21:05tools are going to end up being bottom
  497. 21:07up and rely on inbound really heavily no
  498. 21:11one knows you that first and so you need
  499. 21:13to start with Outreach that period of
  500. 21:16founder Outreach is how you start as you
  501. 21:19get more well known that's when you'll
  502. 21:21get inbound usually you are going to
  503. 21:24have at that point more Self Serve leads
  504. 21:27and then eventually you end up hiring a
  505. 21:29sales team to sell to bigger icons
  506. 21:32Enterprise so should you hire a sales
  507. 21:34team well I would argue that you should
  508. 21:37wait as long as you can start by selling
  509. 21:41yourself don't delegate away the truth
  510. 21:43is that you are the only person in the
  511. 21:46company today capable of selling your
  512. 21:48own product if you as the founder cannot
  513. 21:51sell your product nobody else can as a
  514. 21:55rule of Thum I would wait to get to
  515. 21:58about 1 million AR before hiring your
  516. 22:01first salesperson and even then try to
  517. 22:05hire people who are technical or at
  518. 22:07least understand developers because
  519. 22:10developers don't hate speaking with
  520. 22:12salese actually remember our first sales
  521. 22:14peoples at aolia they decided to change
  522. 22:17the title on LinkedIn and instead of
  523. 22:19like being sales I can't EXA they called
  524. 22:22them themselves product specialist and
  525. 22:25the nice thing here is that they
  526. 22:27actually had to own that stages they had
  527. 22:29to understand the product intely so it
  528. 22:31was kind of like a great incentive for
  529. 22:33them to be better at product and a great
  530. 22:36way for them to open doors with
  531. 22:38developers who don't want to speak with
  532. 22:40sales another example post hog did you
  533. 22:43know that team the sto is also their
  534. 22:46sales leader not a business leader their
  535. 22:48sales leader is also the CTO is see
  536. 22:52sales as a nuring problem which is an
  537. 22:54awesome approach for a death tool if you
  538. 22:56want to learn more about sales you
  539. 22:57should also watched pit talk about
  540. 23:00Enterprise sales another startup school
  541. 23:02video so is it different to sell a de
  542. 23:05tool from selling any other product yes
  543. 23:08it is you should have build a sales deck
  544. 23:11developers like don't want to waste
  545. 23:13their time reading through a sales deck
  546. 23:16you should show not tell just two
  547. 23:20demonstrations I think that's the best
  548. 23:22uh sales approach you can do for de to
  549. 23:26at aloia we didn't have a sales deck
  550. 23:28before we got to 10 million AR so even
  551. 23:32our sales like proper account exacts we
  552. 23:35are just showing
  553. 23:36demonstrations uh when they were selling
  554. 23:38and that was working so much better for
  555. 23:40everyone you should lean completely in
  556. 23:43the tech aspect of your product for
  557. 23:45example at Alia we sell a lot to
  558. 23:47e-commerce players and what we realized
  559. 23:49is that when the buyer is not Technical
  560. 23:53and want a turnkey solution we always
  561. 23:57not always but most of the the time we
  562. 23:58actually lose the deal but when the
  563. 24:01buyer is technical or if tech has a lot
  564. 24:04of influence in the decision we win way
  565. 24:07more often so we realized by leaning
  566. 24:10into that aspect of our product we are
  567. 24:12an API we are not like a turnkey
  568. 24:15solution well we ended up like finding
  569. 24:18our ICP and having better success
  570. 24:20selling okay and the last thing that is
  571. 24:22also true in with inev tool is that most
  572. 24:24of them are bottom up what that means is
  573. 24:26that a lot of people are going to s
  574. 24:28serve even within
  575. 24:31Enterprises so instead of going top down
  576. 24:35just pitching your product directly
  577. 24:37sales should also check if some of the
  578. 24:41Enterprise employees are already using
  579. 24:43the product and they should then focus
  580. 24:45on helping management understand what
  581. 24:47the product is already doing for them
  582. 24:50and how much more it could help them if
  583. 24:53they were to pay for more like new seats
  584. 24:56or features or additional usage okay so
  585. 24:59the last uh topic I wanted to touch in
  586. 25:02this video is developer marketing your
  587. 25:06goal is to create a lot of awareness for
  588. 25:08your product because you want inbound
  589. 25:11the first thing you should do is find
  590. 25:13your community so it could be Hacker
  591. 25:15News or some subreddit or some Discord
  592. 25:18out there that is related to what you're
  593. 25:21working on but be careful your goal is
  594. 25:23not to sell your product just yet here
  595. 25:26just be helpful just establish yourself
  596. 25:30as the expert and of course people are
  597. 25:32going to start knowing you and trust
  598. 25:34your brand your company that will help
  599. 25:37you down the line uh people will think
  600. 25:39about you when they have that problem
  601. 25:41launch of that's very important we
  602. 25:44discussed about uh the example of AMA
  603. 25:46before uh but that should also be done
  604. 25:49for the life of your company some
  605. 25:52companies even do launch weeks and have
  606. 25:54been very successful for that it works
  607. 25:56great for open source for example super
  608. 25:59Bas is doing that once a quarter buring
  609. 26:02all their news in one week a quarter to
  610. 26:04make as much noise as they can other
  611. 26:06things you can do make your
  612. 26:09documentation a first class citizen
  613. 26:12documentation is often an after start
  614. 26:14for developers they prefer coding than
  615. 26:17actually documenting their code I would
  616. 26:19argue that documentation should never be
  617. 26:21an after it should be part of the
  618. 26:23product documentation is marketing
  619. 26:26that's how people are going to interact
  620. 26:28with your product that's actually the
  621. 26:30first place people are going after your
  622. 26:33homepage and maybe the pricing page
  623. 26:35stripe and other de tools have really
  624. 26:38raised expectation there developers have
  625. 26:41become very demanding that something you
  626. 26:44should invest in at algolia we decided
  627. 26:47that the feature was not ever done until
  628. 26:50the dock was done and documentation
  629. 26:52should be written by developers you know
  630. 26:55Alia even when we Cruise a team and at
  631. 26:57some point Point uh we created that
  632. 26:59documentation team their role was not to
  633. 27:02write the documentation for the
  634. 27:03developers they were here to help
  635. 27:05developers write better documentations
  636. 27:07for example they built a tool where it
  637. 27:10would automatically insert API keys for
  638. 27:13people who would be logged in so that
  639. 27:15when they copy pass the code it would
  640. 27:17work right away out of the box uh which
  641. 27:19made the documentation ever more useful
  642. 27:21for our customers speaking of things
  643. 27:23that developers should do I would
  644. 27:25include support there you should make
  645. 27:28support a huge part of your marketing
  646. 27:31your users are developers right
  647. 27:34developers hate speaking to these Level
  648. 27:38One support people who don't know
  649. 27:40anything about the product they are
  650. 27:41supporting Engineers should do support
  651. 27:45and that's going to to lead to two great
  652. 27:47things one your users are developers and
  653. 27:50when they interact with developers who
  654. 27:52speak their language are going to be way
  655. 27:53more satisfied actually I have examples
  656. 27:56where someone would reach out to support
  657. 27:58and then the developers like the person
  658. 28:00doing the support was able to actually
  659. 28:02fix the bug and deploy in production in
  660. 28:05like 20 minutes and so that kind of like
  661. 28:07blew the customer away like they were so
  662. 28:09impressed so excited about the product
  663. 28:11and two it's going to help your own
  664. 28:14developers much better understand your
  665. 28:18customers needs because they're going to
  666. 28:20face the pain as they supporting them
  667. 28:23and that's a great way for them to be
  668. 28:25the better product taking the example of
  669. 28:26aloya again we actually waited until
  670. 28:30hundreds of employees before we built a
  671. 28:33dedicated support team and then we
  672. 28:36actually asked our best engineering
  673. 28:38manager to build that team support was
  674. 28:41never a second class citizen for us so
  675. 28:44developers are doing documentation
  676. 28:46developers are doing support all of that
  677. 28:48is your marketing should you even hire
  678. 28:50marketing team or when should you do
  679. 28:52that well similarly to sales I think
  680. 28:56founder should lead marketing
  681. 28:58for a long time maybe forever actually
  682. 29:00to be honest even at later stage I don't
  683. 29:03know a single death Tool company that is
  684. 29:06happy with their CMO when they have a a
  685. 29:09traditional marketing background why
  686. 29:11because traditional marketers they don't
  687. 29:13really understand the Persona they don't
  688. 29:15really understand developers only other
  689. 29:18developers do and developers really hate
  690. 29:21being marketed that please don't insult
  691. 29:24their intelligence you know that because
  692. 29:25you are developers right well early on
  693. 29:28at aloria we were actually asking every
  694. 29:31single engineer in the team to do what
  695. 29:33we called a marketing hack every single
  696. 29:36months a hack could be writing a simple
  697. 29:39blog post or could be speaking at a
  698. 29:42Meetup or could be building hack new
  699. 29:45search all of our best marketing at
  700. 29:47aloya was done by developers I would
  701. 29:50encourage you as you build your
  702. 29:51marketing team to make sure that you
  703. 29:54have a lot of developers in your
  704. 29:56marketing team because they are the ones
  705. 29:57who know how to speak to your customers
  706. 30:00you may ask what about Dev advocate well
  707. 30:03I love the idea because that means
  708. 30:05having developers in your marketing team
  709. 30:07but it's also a very IL defined role
  710. 30:10with often a lot of very fuzzy
  711. 30:13expectations so it's difficult to
  712. 30:15measure difficult to build
  713. 30:18accountability for so my recommendation
  714. 30:20here would be to wait and first leverage
  715. 30:24your existing engineering team and ask
  716. 30:27them to do some form of marketing or Dev
  717. 30:30advocacy and probably at Ser day or
  718. 30:33later it start to make sense to hire
  719. 30:35dedicated Dev Advocates even then think
  720. 30:37about hiring from within or from your
  721. 30:40committee for example if your open
  722. 30:42source could be contributors or active
  723. 30:45or helpful Discord members these are the
  724. 30:48best Dev Advocates candidates to join
  725. 30:50you so let's wrap up and recap what you
  726. 30:53said here start now please don't wait
  727. 30:57for the perfect idea because as you are
  728. 30:59going to build your product even if it's
  729. 31:00not the perfect idea you'll do the Reps
  730. 31:02you learn and that will lead you to the
  731. 31:05best idea if you don't start you'll
  732. 31:08never get anywhere build quickly please
  733. 31:11please don't over engineer you need to
  734. 31:13have that very fast iteration Pace where
  735. 31:16you can learn from your users as you are
  736. 31:19building crappy quick and dirty is
  737. 31:23completely okay early stage and then you
  738. 31:25refactor what actually matters spend
  739. 31:27time with with your users like there is
  740. 31:29no way you're going to learn if you
  741. 31:31don't speak with your users learn from
  742. 31:33them do things that don't scale go to
  743. 31:35their office spend time with them launch
  744. 31:37early you might have seen many of our
  745. 31:39videos where we say there is no shame in
  746. 31:41launching early people won't remember
  747. 31:43you if it doesn't work out but you could
  748. 31:45get invaluable feedback that will lead
  749. 31:48you to work on the right product to
  750. 31:50build the right thing that people need
  751. 31:53as you are building a de tool you should
  752. 31:56consider open source as your Market
  753. 31:58observe the market observe other players
  754. 32:01how they build their product and figure
  755. 32:03out if open source is the right thing
  756. 32:05for you but don't dismiss it think about
  757. 32:07it add before making a choice don't
  758. 32:10forget you are the best sales person for
  759. 32:13your product no one else is going to
  760. 32:15know your product or your audience as
  761. 32:17well as you do learning to sell is way
  762. 32:21easier than learning how to speak with a
  763. 32:23developer and finally you are also the
  764. 32:26best marketing person for your product
  765. 32:29you know the language of developers you
  766. 32:31know how to speak with them you know
  767. 32:32where they're spending their time the
  768. 32:34community you know how to access this uh
  769. 32:37audience okay that's wrapped up for me
  770. 32:40today thanks for watching the video and
  771. 32:42if you are building a Dev tool don't
  772. 32:44forget you can apply to YC anytime
  773. 32:48[Music]

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