What are the risks associated with giving up control of my software platform's source code?

I'm a product developer, startup veteran, and advisor to SaaS companies. Hopefully you've been already developing this new product with input from your existing customers, letting them beta test it and give feedback. (If not, my advice is to STOP immediately and get enough pilot customers involved to be sure that you're delivering something really valuable to them, that works the way they expect it to work, is easy to understand and get started with, etc.. The last thing you want is to do a big splashy launch of a product that is D.O.A. because you built what you assumed the customers wanted instead of they actually demonstrated that they wanted.) OK, so let's assume that you've got customers in the loop. Interview the heck out of them. Really understand how they use the product, why they use the product, what makes it valuable to them, what they can do with it that they couldn't do before, etc. If the product's not done enough for them to be best testing it yet and getting results, at least get some insights into how they see themselves getting results from it. How does it/will it change their lives? As you do this, be on the lookout for things that really resonate. Emotional language, for example. "It's such a relief that I don't have to worry about sending invoices manually anymore." (or whatever pain it is that your software solves) Also look for (and try to elicit) specific result statements: "This new software saves me [or is going to save me] 15 hours a week. Now I can spend that time where I really want to, with my kids ( ... my cat ... my golf buddies ... )" You're doing this for three reasons: 1) This stuff makes for phenomenal testimonials; 2) it helps you come up with great ideas for pre-launch content; and 3) it generates *PURE SOLD GOLD* you'll use in writing the copy for your launch offer. OK, launch mechanics. There are people who teach huge long expensive courses on this stuff. I'll give you the Cliff's notes. While I haven't personally run a major product launch, I have been trained in the strategy and am very familiar with it. - Plan your launch period in advance. You might want to do a pre-launch sequence that lasts 1, 2, even 3 months depending on the magnitude of your product and how much effort you're willing to put into creating content for the launch. - Create some teaser content of interest to your customers who might want to buy this product. Offer to teach them something, or offer to give them a sneak-peak behind-the-scenes of your new product. - Send an enticing offer for this content out to your list. Get people who are interested in this content to sign up for it. This creates your launch email list. - Send your launch list weekly updates: development milestones, sneak-peak screenshots, videos, educational material, interviews with/testimonials from beta users, and so on. - You're not trying to sell here yet (not hard sell at least). Drop some hints that there is going to be a special offer when the product launches, just for special loyal customers like them. - Create at least three videos on topics that are really, really interesting to your prospective customers... not necessarily about your new product itself, but teach them about what they can achieve with it, or what others have achieved with it already. As you publish these videos, send the link out to your launch list. - Also send out an offer to see these videos to your main list, to entice more people to sign up for your launch list. - As you get closer to launch time, keep sending frequent updates to the pre-launch list, and send another email out to your main list to let them know that the product is launching soon, and that if they're interested in the special one-time-only launch pricing, they need to sign up for the "early bird list" (your launch list). - Send out a 24-hour notice that the launch is going to happen soon, and the launch pricing will only be available for a limited time (potentially, to a limited number of customers ... to increase scarcity and urgency). - I recommend that even if you plan to open the product up to all your customers that at launch time you limit it to a smaller number. This makes the inevitable post-launch gremlins less painful to deal with because you have fewer customers, and it motivates people to buy because they fear that they'll lose the opportunity to do so. You can open the product up to more people later... the delay will result in pent-up demand and easier sales. - Start the launch. Tell your early-bird launch list a few hours early, then tell your main list. Direct them to a web page with a video and long-form sales copy of your launch offer. - Send out 2-day, 1-day, 12-hour, etc. notices that the launch is ending soon and reminding people what they're missing out on if they don't act now. If you're offering a limited number of spots, tell people what percentage has already sold out. Remind people that if they're "on the fence" about this, that this is the time to make a decision. - Send out an email letting people know that the launch is over and thanking them for their support and their vote of confidence. Tell the people who didn't buy (or didn't get in) that you'll let them know that the product will be opening up for new registrations some time in the future. (You may get people sending you emails begging to be let in at this point, if your product is desirable and your marketing was executed well.) And, of course, you don't just have to promote your launch content to your existing customer list ... you can post it to social media (and encourage your customers to do so) to attract brand new customers into your world. If you'd like to go into more detail about launch planning for your specific product and market, I'd be happy to jump on a call and talk about ways to make this work for you.

First, I agree with Chad in that the pure pursuit of money is unlikely to render anything significant. By using a monetary value as a primary goal, you're only diluting the real drivers of success: passion, crafting great customer experiences, building an incredible team and culture etc. That said, making $1m isn't that hard. :) I love this thinking by Amy Hoy and that's how I would go about making $1m: http://unicornfree.com/30x500. Using that logic, this is what I'd do: * To earn $1m in a year, I need to earn +- $80k a month. * To earn $80k a month, I need 1600 customers paying me $50 per month. * So what can I build that could attract 1600 people to pay me $50? * Or, what could I build that could attract 400 people to pay me $200 per month? This logic works on two drivers: * Cumulative revenue and growth. So SaaS works best in this regard, as you only need to focus on having new signups that are greater than your churn. * Building something that people are willing to (really) pay for and going for quality over quantity. If you are building something that sells for $5 pm, you'll need to sell at much higher volumes (which are tricky). In terms of doing that, these are the areas of my business that I would prioritize: 1. Build an awesome team that do things they're passionate about. 2. Prioritize customer experiences above anything else. Do everything in your power (regardless of whether it can't scale) to add value and help your customers. 3. Build a brand and reputation that has long-lasting value.

I started a large SaaS Company for B2B where perfection in code is as importante as it gets. So here is my advice, DON'T CODE until you know what the Saas Really is. First start understanding what the problem REALLY is. Interview people and actually spend 100% of your time doing Customer Discovery. (This sounds easy but it is a skill you'll have to develop far more important than coding). Once you understand what the problem is, come up with a value proposition. Still no code. Then make a sell. If you can actually find things already existing that you can Hack and put it together then use that. Then make another sell. If you can sell it to at least 50 people if you are B2C, or if you are B2B you should have at least 1 customer. Once you do that then start automating some parts of the solution that you have hacked and so on. But THE most important thing is to be in constant conversations with your customers and hot leads. Remember you are a customer making machine not a coding machine, the first one is where the money is. Hope this helped you, if you want to talk more about customer discovery and customer development, just give me a call.

Dilip was very kind in his response. My answer might be a bit on the "tough love" side. But that's for you to decide. My intention, just for the record, is to help you (and those like you) on your path to success. And that starts with having a viable philosophy about entrepreneurial-ism and business. And I'm going to answer this because I get asked some form / version of this question very frequently from newcomers to entrepreneurial-ism. The scenario goes something like this: "I have a great idea. It's amazing, I love it, and I just KNOW it's gonna make me a ton of money. But I have no money right now so I can't afford to (fill in the blank with things like "to build it / create it / market it / etc" or "to hire the required staff needed to work in my business to sell it / develop it / etc"). And I don't want to tell anyone about my great idea because I'm worried someone will steal it and make MY million / billion dollars. But I can't afford to legally protect it either... So how do I launch without the skills to personally create the product AND no money to hire anyone else to do that either??" The answer is ... You don't. Look - let's be honest. All you have is an idea. Big deal. Really. I'm not saying it's not a good idea. I'm not saying that if properly executed it couldn't make you a million / billion dollars... But an idea is NOT a business. Nor is it an asset. Until you do some (very important) initial work - like creating a business model, doing customer development, creating a MVP, etc - all you really have is a dream. Right now your choices are: 1. Find someone with the skills or the money to develop your idea and sell them on WHY they should invest in you. And yes, this will mean giving up either a portion of the "ownership" or of future income or equity. And the more risk they have to take - the more equity they will want (and quite frankly be entitled to). 2. Learn how to code and build it yourself. MANY entrepreneurs without financial resources are still resourceful. They develop the skills needed to create what they don't have the money to pay someone else to do. 3. Get some cash so you can pay someone to do the coding. You'll probably have to have some knowledge of coding to direct the architecture of your idea. So you will likely still have to become knowledgeable even if its not you personally doing the coding. (This is not meant to be a comprehensive list of options... And I'm sure some of the other experts here on Clarity have others to add - and I hope they do) To wrap up - Here's my final tip to you that I hope you "get"... It's FAR more valuable to have an idea that a very specific hungry crowd is clamoring for right now - One that THEY would love and pay you for right now - Maybe even one they'd pre-order because they just have to have it - Versus YOU being in love with your own idea. [Notice I didn't say "an idea that some as-of-yet-undetermined market would probably love"] I wish you the best of luck moving forward.

STOP. DO NOT DO THIS.... I would never want help from someone like you. Don't get me wrong -- you aren't evil (that I know about) but you don't seem have any value that I could pay for. What would you be "consulting" a CEO like me about? How do you expect to make my business better when you don't have a clue about your own business? THAT'S THE TRUTH... Fuck the truth. If you want to get clients then you hustle -- every waking moment. You try an angle and fail and then try a different angle. You can't outsmart your way to bigger results. 2 plus 2 does not equal 4 -- it equals you going bankrupt. If you want to be successful then you need to exert massive amounts of effort to get off the ground. So get your ass out there and start asking everyone you meet: "What is that one big accounting question that's been bothering you for some time now? If I can't help you i'll buy you a cup of coffee" Then just go be a badass...