So you’ve got a great idea, but it’s gonna take some data or research. And that costs money. And you don’t have any. Hmmm.
It might be a database of listings or hours of user interviews. It might be a significant number of responses to a survey or maybe thousands of hours of recordings of user behavior in an app you think you can improve. A lot of times in order to build a successful business, we need data before we can get the first client through the door.
“Unfortunately no one can be told what the matrix is. You have to see it for yourself.” - Morpheus, The Matrix.
There’s this common misconception that everything costs money when nothing is farther from the truth. Everything that people don’t want to give you costs money. Just think about it, a salary is described as compensation, meaning, I’d rather be doing something else, so I’ll let you pay me to compensate for the fact that I’m doing this.
And most of what we know as products have this mechanism in place - we pay for our meals and produce since we compensate the food industry for preparing it. We pay our fitness coach to compensate them for their time. Yes, you’re right, that’s how the world works… usually.
Now let’s see a couple of examples that are exactly the opposite. Wikipedia has rendered encyclopedias extinct since the masses have come together to donate knowledge for free. The open-source industry is powering most of the internet as we know it with Linux servers, frontend frameworks like React and Vue and many more examples. The list goes on and on with volunteers working for charities, community gardens, the neighborhood watch and I bet you’re thinking of a dozen other examples right now in your head.
“Shut up and take my money!” - Fry, Futurama.
So why do people contribute to Wikipedia or an Open Source program? Why do people volunteer for charities or the neighborhood watch?
The answer is Motivation. One such motivation is money, it’s an imaginary concept we all accept and use to exchange services. But there are a lot of ways to motivate people. Sometimes you can motivate people to pay you while giving you something you desperately need. All you need to do is understand their side using a super-tool called Empathy and give them something they need more than money.
Just Ask
Most people are awesome. Really!
So if you are nice to them, a lot of them will be nice back.
If I walk up to you in the middle of the street and ask you to mow my lawn, I mean, I’m lucky if I don’t get a (well deserved) smack in the face. But when an elderly person asks you for some help lifting something heavy into their car, you are almost falling over yourself to help them.
What is the difference?
One is about being kind to someone in need with something that’s easy for you to give, and the other is about taking advantage of you.
Sometimes, all you need to do is ask, nicely!
I found that if I ask people respectfully and with humility for help, the acceptance rate is surprising. Sometimes a simple “I saw you at X forum, you’re so amazing and impressive and I’m trying to learn about Y, can I get some of your time?” works.
Be respectful, don’t spam, take the time to send a personalized message (that actually feels personal) and you’ll likely get quite a few responses if the ask is reasonable.
Give them a service that’s crucial to them
You’re a lawyer and have come up with a disruptive idea for the next LegalTech software. This will revolutionize the way the average Joe gets legal advice from a lawyer. It will be both cheaper and easier to use than going to a lawyer for advice.
The problem is that you need quite a few legal consults to get the engine up and running. You need a few hundred such clients, who’ve used your software start to finish to work out the kinks and make sure it works properly. Also, it’ll be nice to know how much your clients would pay for such a service.
No problem. You’re a lawyer. Offer them the standard service they are used to paying for. Don’t even bother telling them there’s software involved. They’re not ready for it yet anyway and neither is your product. Just keep handling clients as if you’re a lawyer like any other lawyer. But, and here is the twist, use your software to solve their problem. Use their cases and money to test out your software and understand their needs.
So sure, your dream of building software and raking in millions of passive dollars is going to have to wait for a bit, but you can get paid while collecting the data and experience you need to get off the ground.
In general, services are a great way to get people to tell you about themselves. If they feel that your job is to help them, they’ll be as open as possible about themselves and their businesses.
Give them an auxiliary service
You want to create a service that will generate Instagram descriptions for images, you have a decent understanding of machine learning but can’t find images to scrape that suit your genre.
No problem.
Offer a captioning service. Get Instagram influencers to pay you to caption their images. Only offer this service to your niche. Don’t even try to make a profit. Make it a deal that you don’t lose on, but that makes them come running to hire you.
Vanity points
You want to create a site where people will help other people code (yes, I’m actually referring to Stack Overflow). But there’s a network effect there - if I go there and see wide open spaces with tumbleweeds, I’ll close the tab and never come back.
Reach out to devs you know with large egos, give them badges for being there first. Give them extra points they can brag about when the site is successful. Give them social recognition in places that are meaningful for them.
Vanity is a really strong motivation!
Final thoughts
If you find that you’re itching to get your wallet out and pay big bucks for something you need to get your project to the next level, stop!
There is always a creative way to get more out of your clients for free.
If you’re doubting that this is a way to build a scalable business, remember that while in YC, Brian Chesky went to Airbnb’s first customers and photographed their houses claiming to be a photographer, just to get access to their houses.
Have you found ways to hack your initial data hump?
Have you gotten people to help you without paying for it?
I’d love to hear about it!
Photo by Melanie Pongratz on Unsplash