[HN Gopher] Ask HN: Does this idea make any sense?
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       Ask HN: Does this idea make any sense?
        
       Hi there, I would like to get your perspective on this idea, does
       it make sense?, I happen to think dev shops are broken, and this
       may be a better approach, let me know your thoughts?
       https://www.rebaseapps.com
        
       Author : AhmedMujtaba
       Score  : 22 points
       Date   : 2022-07-17 17:34 UTC (5 hours ago)
        
       | mirthturtle wrote:
       | I don't think the math works. $5k + $500/m, for 6 months: that
       | tops out at $160,000 yearly revenue for the 20 projects. Even if
       | it's the same 4 employees spread across all projects, that's $40k
       | yearly salary each as a base. Sounds bad!
       | 
       | It'd take years for any winning bets to pay off and I don't know
       | how you'd pay your employees.
        
         | yellowapple wrote:
         | Wouldn't be too bad for me (as a dev) if it's with the
         | understanding that I'd be working part-time. Even 20 hours a
         | week would net a pretty decent junior-level pay (and 10 would
         | be even better).
         | 
         | They'd have to be really simple projects, though, if I'm
         | expected to bang out 20 of 'em a year.
        
         | klohto wrote:
         | There are other countries than US :)
        
         | twic wrote:
         | The one way it makes sense is as a mechanism to buy cheap
         | equity stakes. The person running the scheme adds more money to
         | pay market rates for sufficient staff, which effectively buys
         | them a 5% stake in each company.
         | 
         | If it is the same four people across all companies, and their
         | fully loaded cost is 200k (not a lot in the valley, but plenty
         | in many other places), then that works out as 32k for a 5%
         | stake. Compare that to Y Combinator's 125k for 7%.
         | 
         | If you accept that you can't run 20 startups with four people,
         | no matter how much Club-Mate you feed them, then you could try
         | staffing each position at 25%, and be paying 200k for that 5%.
         | Not so hot, but maybe still good enough?
        
         | weare138 wrote:
         | I have a feeling they have some VC backing and they're just
         | farming the work out to cheap overseas companies and
         | freelancers. Sounds like it's some quasi-incubator banking on
         | finding a billion dollar unicorn.
        
       | potamic wrote:
       | You might want to showcase your profile and what makes you
       | valuable. Differentiating on commercials might work, but I hope
       | you're aware of risks that come with fixed billing.
       | 
       | Also, that pricing sounds insane for a 4 people team. You're
       | probably not looking for engagements that last more than a month,
       | but even with that I don't know how you can make decent income to
       | pay the team.
        
       | yessirwhatever wrote:
       | Dev shops aren't broken, and this idea does not make sense. No
       | quality work can come out of it, and honestly it sounds more like
       | a trap or a funnel for scammers to front as entrepreneurs.
        
       | amelius wrote:
       | If they provide the technical input, how do you prevent them from
       | just stealing your idea?
        
         | popcalc wrote:
         | Would make more sense to do exactly that.
        
       | [deleted]
        
       | foobiekr wrote:
       | Honestly how is this different from a very expensive offshoring
       | provider?
        
       | [deleted]
        
       | superb-owl wrote:
       | I can't imagine getting anything decent for that level of pay.
       | Unless you're essentially a venture fund making long bets on that
       | 5% equity and you have a ton of upfront funding.
        
       | superb-owl wrote:
       | Is that technical team spread across all ten projects? If so
       | that's basically 4h per week per company, barely enough to
       | remember what they're building.
        
       | conqrr wrote:
       | I'm looking for something similar for a sales cofounder. Someone
       | who could help validate and pitch Saas Ideas and get a commitment
       | on subscription, before I develop the product.
        
       | foobiekr wrote:
       | No.
        
         | [deleted]
        
       | thenerdhead wrote:
       | There has been an uprise of agencies/studios/dev shops trying to
       | make their offering "limited" and thus promoting some fear of
       | missing out by feigning scarcity.
       | 
       | I think these ideas can be creative, but I feel bad for those who
       | can't do the math for themselves and also build the
       | team/contractors that would likely make them successful in the
       | long run.
       | 
       | More and more "startups" are just disguised digital agencies.
        
       | arrow7000 wrote:
       | Is this your startup?
        
       | [deleted]
        
       | justsomeuser wrote:
       | I do not think it is a good idea because the people building the
       | project have no skin in the game.
       | 
       | Your initial ideas need constant iteration as you interact with
       | reality to see what works.
       | 
       | A team that will leave in a few months for the next thing have no
       | incentive for iteration or great execution - both which are
       | needed to interact with reality to find something that works.
        
       | alkonaut wrote:
       | Yes, so long as
       | 
       | 1) the pay for the technical tesm is in a country where you can
       | pay sub $25k/yr (which is most countries on the planet but rules
       | out North America or most of Europe). Because there won't be
       | enough money to pay much more.
       | 
       | 2) So long as all these projects are technically simple. Don't be
       | an incubator for new ideas. Make CRUD apps for orgs that want to
       | replace a spreadsheet instead.
       | 
       | But as some kind of incubator or operating in EU/US? No.
        
         | thriftwy wrote:
         | Software developers around the world are not going to work for
         | $2k/mo. Even in cheaper countries they realize it takes some
         | money to get into middle class, or they would consider moving
         | closer to where the action is.
         | 
         | Especially since you need a few generalists who should work
         | with minimal oversight (and indeed provide one).
        
       | sickmartian wrote:
       | Really depends on where you are I guess, but I found no info
       | about you in the link.. also the top right link that says how
       | many spots are left sends me to google.
        
       | rodolphoarruda wrote:
       | I like the idea! However, the price is challenging for Latin
       | American founders like me who are currently in bootstrap mode.
        
       | jot wrote:
       | I've worked in a similar way to this in the past and at similar
       | price points.
       | 
       | Most of the time I ended up with one of two kinds of founder:
       | 
       | 1) Very price senstive with a lack of investment mindset. With
       | that kind of budget they would have been better off investing in
       | themselves to either: a) Learn to code or develop some other
       | valuable skills. b) Build a profitable service business.
       | 
       | 2) Very busy running another business without the time to do the
       | work of finding customers. They would have been better off
       | either: a) Focusing on growing their current service business. b)
       | Creating a non-software product such as a course, book, templates
       | or a newsletter.
       | 
       | In general non-developers need to be prepared to invest at least
       | an order of magnitude more than that. Any less and it's unlikely
       | they'll take it seriously enough to succeed.
       | 
       | This is assuming you are aiming at clients with North
       | American/European levels of purchasing power.
        
       | [deleted]
        
       | [deleted]
        
       | tyronehed wrote:
        
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       (page generated 2022-07-17 23:02 UTC)