When the entrepreneurial bug hit again, Jason had a few ideas he wanted to explore. One of these ideas was to create a spin-off of a marketing analytics tool he had developed at SmartBear. In his words, it was so accurate that it could tell when a (paper) catalog hit the desk of a prospect.
Jason quickly had a prototype ready to show to the 20 to 30 marketing people he met.
Although everyone thought the tool was “awesome” and they felt it was a good idea, most of the prospects were not ready to pay the $50 a month that Jason intended to charge. Some were even expecting it to be free.
It was a good idea, but Jason could not see a business forming around it. The market was very fragmented; everyone had different needs for the product. It would be very hard to scale a product that does many different things.
In parallel, Jason was also exploring the idea of offering premium WordPress hosting.
The more people Jason spoke with, the clearer the opportunity became. It was night and day compared to the marketing analytics tool.
After 30 interviews, he could tell that many prospects had the same needs, the same reality and that there was agreement on the price.
Although Jason loved the analytics idea, he had to be honest with himself. The path for the product and the market weren’t clear. It would be a lot harder and riskier than the WordPress hosting idea.
As Jason moved away from the analytics app, the premium WordPress hosting idea came together. WP Engine was founded in 2010 and has been growing ever since.
⚡⚡ Enjoyed this content? I go into way more detail on this subject in Lean B2B. It covers the ins and outs of finding traction in the market for B2B products. Check it out »
Download the First 6 Chapters for Free
This sampler covers the differences between B2B and Business-to-Customer (B2C) product-market validation, shows you how to define your vision for success, find early adopters, select market opportunities and assess a venture's risk. Download The First 6 Chapters Today »