703: The "Accidental" $10k/mo Side Project

Published: June 27, 2017, 9 a.m.

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Paul Tyma. He\\u2019s the founder and creator of a tool called Mailinator which is an email system. He\\u2019s also a startup veteran and has focused on 4 Silicon Valley startups including Preemptive Solutions, Manybrain Inc which owns Mailinator, Home-Account.com which was acquired by Bills.com, and Refresh Inc which was acquired by LinkedIn. He\\u2019s a frequent speaker, writer and author of one of the original books on Java called Java Primer Plus. Dr. Tyma has received his PhD from Syracuse University focused on Java/.Net performance.

Famous Five:

  • Favorite Book? \\u2013 Influence
  • What CEO do you follow? \\u2013\\xa0 Amy Errett and Bradley Kam
  • Favorite online tool? \\u2014 Linode
  • How many hours of sleep do you get?\\u2014 8.5
  • If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cHow to talk to girls\\u201d

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Time Stamped Show Notes:

  • 00:53 \\u2013 Nathan introduces Paul to the show
  • 01:48 \\u2013 Paul started his first company during his PhD
  • 01:56 \\u2013 After getting his PhD, Paul worked for Google
  • 02:12 \\u2013 Paul is still part of the board for Preemptive Solutions
  • 02:18 \\u2013 Refresh had a very visible exit and is currently at LinkedIn icebreakers
    • 02:37 \\u2013 The acquisition was in 2015
    • 02:45 \\u2013 Acquisition price
    • 02:54 \\u2013 Refresh was a consumer application
    • 03:10 \\u2013 Refresh has raised $10M in total
    • 03:20 \\u2013 The first round was a priced round
    • 03:53 \\u2013 Refresh had 100K users
    • 04:30 \\u2013 Refresh built its own identity from scratch
    • 04:40 \\u2013 The technology of Refresh
  • 05:40 \\u2013 Home-Account.com was built prior to Refresh
    • 05:59 \\u2013 Paul was a minor founder
    • 06:15 \\u2013 Option pool
  • 07:23 \\u2013 Selling a company and staying with the company who acquired it is a clich\\xe9 in Silicon Valley
  • 08:19 \\u2013 Mailinator was a side project Paul built 13 years ago
    • 08:30 \\u2013 It was a receive only mail service
    • 08:50 \\u2013 Mailinator lets you create a disposable email
  • 10:17 \\u2013 Mailinator had some ads which paid for the server
  • 11:30 \\u2013 Mailinator now makes money from affiliates
  • 11:47 \\u2013 Mailinator\\u2019s brand became strong
  • 11:56 \\u2013 There was a high usage from QA departments who tested their signups process and welcome email
    • 12:11 \\u2013 They asked Mailinator for additional features
    • 12:40 \\u2013 Hundreds of QA teams now are using and paying Mailinator
    • 13:16 \\u2013 Mailinator also has a private paid domain
  • 13:40 \\u2013 Pricing is $29 for single user and $129 for a team
  • 13:56 \\u2013 Average RPU is $35
  • 14:31 \\u2013 Average MRR
  • 14:57 \\u2013 Paul is now turning Mailinator into a business
  • 15:21 \\u2013 Churn is pretty high
  • 15:48 \\u2013 Less paid advertising
  • 16:16 \\u2013 Mailinator has 45K unique users a day
  • 16:44 \\u2013 25K new inboxes are set up everyday
  • 16:58 \\u2013 \\u201cThis is not a DAU product\\u201d
  • 17:21 \\u2013 Mailinator has not raised money
  • 18:09 \\u2013 Team size is 3
  • 18:30 \\u2013 Gross margin
    • 18:59 \\u2013 Server cost
  • 19:53 \\u2013 The Famous Five

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3 Key Points:

  • A side project can definitely turn into something more\\u2014don\\u2019t underestimate its potential.
  • An email does NOT reflect one\\u2019s identity.
  • There are thousands of emails being made and sent every day\\u2014having a disposable one is almost a necessity.

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Resources Mentioned:

  • The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • Klipfolio \\u2013 Track your business performance across all departments for FREE
  • Hotjar \\u2013 Nathan uses Hotjar to track what you\\u2019re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
  • Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
  • Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
  • Show Notes provided by Mallard Creatives
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