Consulting Tools Become Products
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Sam discusses how Fog Creek Software evolved from a consulting business into multiple successful product companies through spinning off internal tools and ideas.
Key Points:
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Started as Consulting (2000):
- Began as a software development agency/consultancy
- Mission focused on creating great workplace for programmers
- Built internal tools while doing service work
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Product Evolution Pipeline:
- FogBugz (First Product):
- Bug tracking software
- Grew to 8-figure revenue ($10M+)
- Trello (Second Spin-off):
- Task management software
- Raised only $10M
- Sold to Atlassian for $450M
- Stack Overflow (Third Spin-off):
- Developer Q&A platform/message board
- Expanded to multiple topics
- Sold for $1.8B to Prosus
- Gets ~200M monthly visitors
- FogBugz (First Product):
-
Key Success Factors:
- Built products from internal needs/tools
- Kept raising minimal outside capital
- Maintained focus on developer/technical audience
- Successfully spun off products into separate companies
- Each spin-off became progressively more valuable
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.