MicroConf On Air MicroConf Refresh Episode 2: Designing the Ideal Bootstrapped Business: Jason Cohen, Founder, WP Engine
Jul 7, 2020
In this discussion, Jason Cohen, founder of WP Engine, shares insights on building a successful self-funded business. He emphasizes the importance of predictable monthly revenue and contrasts recurring models with one-off sales. Jason reveals his strategy of targeting around 150 customers at higher prices instead of many at lower rates. He discusses effective customer development tactics, boutique positioning, and the math behind annual prepay options. Lastly, he advises founders to understand their goals before scaling, ensuring aligned growth strategies.
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Paid Customer Interviews Worked Remarkably Well
- Jason emailed WordPress consultants offering paid interviews and got 100% positive responses.
- He converted 30–40 early customers who agreed to pay before WP Engine existed.
Avoid Temporary-Pain Markets
- Avoid markets driven by temporary pain or one-off events; they don't sustain recurrence.
- Target problems that are ongoing or have natural recurring costs to justify subscriptions.
Pick Naturally Recurring Problems
- Prefer products whose value or cost is naturally recurring (hosting, finance, analytics).
- Dynamic domains like SEO or ad campaigns inherently require ongoing tools and subscriptions.