Jason M. Lemkin and co-founder Brian set a price in three minutes and asked early users to pay for an unfinished product. Real money, Lemkin says, is the only test that proves people actually want what you're building.
Chapters
And the only way we kind of knew to test the market is like, oh well, market means transactions occur. A transaction is when someone pays someone else money. We're from the East Coast, we're old-fashioned that way, right? And so, like, okay, how do we actually establish the fact that people are willing to pay money? Ask them to pay you money. That's like the best possible way to test it. So the product, even in sucky form, in I'll say generously late alpha, We started asking people to pay, right? And one of the challenges with that, like one of the requisites in order to start charging money, is you have to come up with a price. It's one of those little details. Like, you have to know what it is you're charging. And at the time we had to make the pricing decision, we didn't have the 6 MBAs yet. It was just me and Brian and a houseplant trying to decide, because okay, both of us are gonna start selling this thing, And I'm going to give you the answer here. And the answer is 3 minutes. And I'm going to tell you the entirety of the conversation pretty much, pair with