Recurring Revenue: Engineers

[rec_rev]

Hi, Am I the only engineer that is looking to build a recurring revenue stream from building out tech solutions for real business problems? The core problem for engineers: - I don't have 8 hours a day to build - I am happy to take 4 years to build an income stream that can replace my job - Business development during day hours is rough - One and done deals means you spend more time on sales than on delivering value.

GPT's might be able to help with getting the sales pipeline built.

I am keen to talk to people who have problems that are in the $2000 range, but can't commit day one to paying $2000 but rather are happy to pay $200 for 12 months to get a hosted solution.

On the otherside, engineers, happy with this type of setup? Get a well written problem statement, a clear price and freedom to build? Get a "Rec_Rev" stream setup, its not a huge at first, but builds up over time as you have more tools/solutions deployed.

Business owners take a look here: https://defiant-bone-dca.notion.site/Rec_Rev-5a430a4243834513b7266c05d23904ca?pvs=4

Let's chat!

[skeeter2020]

Question 2: What is the pain point you are experiencing?

I'm doubtful many can articulate this as the first real question, at least accurately describe the true problem. This is actually a big part of the value of any "solution", yet you expect to get it for free at the start.

Later you ask what I think is the root cause... if I knew that I would state it as the pain point earlier.

Finally you just end the interaction with "thanks!". What value did I get out of this? I provided you with very shallow data for what exactly, and you gave me... nothing?

Not sure what the value proposition is...

[rec_rev]

Hi Skeeter2020, thank you for your comment, appreciate it! Your evaluation is perfect, it is very tough to identify your own pain point. 1. "GPT assisted" pain point identification is the first value add. To get to a clear statement of what you are experiencing. "routing with current tool doesn't allow for adding more stops" 2. A scoped document, "GPT assisted" again, that helps to run the purchase request up the chain. "a simple csv ingestion tool, running locally, that optimizes using openrouteservice, with output that works with your current logistics planning tool, $100/month for 12 months"

This is a work in progress.

And the typeform has a mistake, not collecting contact detail :-D thank you!

[inconceivable]

> Hi, Am I the only engineer that is looking to build a recurring revenue stream from building out tech solutions for real business problems?

this is literally an entire multi billion dollar industry called software as a service.

[rec_rev]

:-D great response!

I think what is nuanced here is the Saas teams need to setup a product, where this is completely needs based from a paying customer immediately. 80% value, 10% time. 100% done by one engineer, assisted by GPT to get the scope + spec ready.

[gremlinsinc]

I've been actively pursuing the creation of a profitable venture using langchain and personal knowledge bases for business. However, the market is highly competitive. Recently, I came across a YouTuber who specializes in building custom AI automations. This got me thinking about the potential of combining that concept with a productized service.

Imagine a service like WordPress management, but with unlimited synchronous issue resolution within 24 to 48 hours. That's exactly what I'm working on. It would offer unlimited zapier and AI automations, as well as tweaks to existing automations, all for a reasonable price of $499. This service would be complemented by a regular agency that provides consultations on streamlining full business automation.

My long-term vision involves starting an MLOps/architecture service, similar to pinecone or metal. I believe the real money in AI lies in tooling, backend operations, cloud GPUs, and so on. However, this type of venture requires significant investment, and I must admit that I'm not the most socially inclined person.

In order to attract investors, I'm in the process of crafting a compelling idea and message. My plan consists of the following steps:

1. Establish a newsletter and create funnels to showcase our expertise. 2. Gather testimonials and case studies to understand the specific needs of businesses in this space. 3. Identify a market fit that doesn't solely rely on continually increasing GPU power to scale up AI models.

By following this roadmap, I aim to build a solid foundation and demonstrate the potential of our business to potential investors.

[jxf]

What's an example of a business problem that's worth $2,000 to solve but where people only want to pay $200/12 months? Most of the ones in this range feel like they're handled by low-code/no-code tooling.

[rec_rev]

I agree, low-code tools are excellent to get these types of problems solves (CRUD apps for internal maybe?)

What I have in mind is: - a forecasting tool (bit more insight into what is being done in the business, not just plain vanilla) - Optimization tools: inventory, routing, sales, risk distributions etc. - IoT integration for a small realworld tracking setup - Specific business rules that need to be implemented in a Low-code tool - Low code implementations (not everyone has the time, skill-set to get going with these providers)

Thank you very much for the feedback jxf!

[cj]

We just bought a tool at work from a startup for $400/month that helps designers store components and helps developers catalog React code for said components.

Edit: Another idea is some sort of Slack app that costs $1/month/person. Then try to sell it to companies that have a couple hundred employees. The $1/person/month means the value you're providing need only be incremental rather than life changing.

[skeeter2020]

>> app that costs $1/month/person. Then try to sell it to companies that have a couple hundred employees

I would not recommend doing this. Any company with several hundred employees is into contract & procurement management territory, and likely to have a staff lawyer, privacy & protection person and person/team dedicated to (slowly) evaluating purchase & adoption of Saas products. This, plus all the people involved in any sort of roll-out across the entire company (of anything) will destroy the economics of a few hundred per month deal. You probably need a VP to approve this not because of the cost but the impact, and as a manager an incremental value deal that I see every month will be the first thing I cut, not because it's expensive but because it's an easy one.

Every low-cost per <whatever> deal I've seen in an enterprise of this size has a sizeable upfront cost and then a a tiered or unlimited per seat component that's correlated but not necessarily directly tied to a variable component. This reflects the sales process that involves more effort upfront. For a pure, low-cost per user/month model you need a completely self-serve adoption path.

[rec_rev]

Agreed, the $1/seat/month is a tough business to be in. For engineers alone this might be a difficult business to build.

[rec_rev]

I have had two meaningful responses to the form on the Notion site! Thank you very much!

"Using tools like Webfleet difficult to add multiple stops in one trip from one location to a central location. Routexl, does not group correctly." "Long term projects cost control is very tough for my company"

If you would like to get a solution to either of these, please reach out! [e-mail]

[rec_rev]

What I am thinking of putting together is: 1. A good system prompt for a "product owner" who can really deeply care about the problem you are facing. 2. A second system prompt to write a product spec for the solution. 3. I'll be the first engineer on the platform, happy to build starting at $100 a month 4. Clients happy, engineers happy :-D