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SaaS Interviews with CEOs, Startups, Founders

How to Make Money On Top of Opensource Protocol with Linktree Alternative SingleLink

28 May 2021

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 16.842 Jim Basenius

We saw 100 users in the first three days. I know that for a fact. And since we've maintained 41% average month-over-month growth, we just started taking this project full-time in January. So you can see we're growing aggressively every single month despite the fact that we're not launching paid ads. It's all organic and it's mostly from referrals.

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18.897 - 38.982 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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39.803 - 60.574 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public. We got to grow faster, minimum is 100% over the past several years. or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise.

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60.795 - 66.323 Nathan Latka

Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion.

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66.884 - 70.87 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

71.672 - 96.61 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked.

98.142 - 118.127 Nathan Latka

Hey guys, my guest today is Jim Basenius. He's a 22 year old, formerly obese college dropout turned founder and triathlete. He lost over 115 pounds and completed races up to the 70.3 mile distance while he's currently training for Ironman in Florida, which is 140.6 miles. He's passionate about open source startups and pushing himself to the limits.

118.207 - 124.335 Nathan Latka

Currently working on an open sourced link tree alternative called single link.co. Jim, you ready to take us to the top?

124.771 - 126.434 Jim Basenius

Absolutely. Thanks so much for having me.

Chapter 2: What inspired Jim Basenius to create an open-source Linktree alternative?

346.522 - 349.785 Nathan Latka

So why open source? I mean, why not go the Linktree route?

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350.66 - 368.685 Jim Basenius

Yeah, so it's super interesting because originally when we thought about this, we came into this with a mission to make the world open source. We are truly in this belief that pushing your code publicly and creating this transparent relationship with your consumers would be able to help you actually charge more, offer a better product.

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368.665 - 387.373 Jim Basenius

And so we looked at all the industries out there and we were like, what is one industry that is just exploding and is in desperate need of an open source alternative? And when I say a desperate need, a lot of microsite users, they don't necessarily just want to go up and they sign up, right? Some people want it to be super simple and then some people want to be super complex.

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387.854 - 406.483 Jim Basenius

So that sort of modification need was what I saw as a need for open source. So that drew us into the industry. We were like, okay, the industry is exploding and people are ready to contribute. I think that's the biggest thing. And we wanted to create an open source alternative in that space.

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407.224 - 418.281 Nathan Latka

It sounds like you've set up your life to be able to work on this for a year, taking no money because it's not making any revenue. So what decisions did you make intentionally before you launched this business to give yourself that kind of push-in?

419.83 - 439.206 Jim Basenius

So I dropped out of college a few years ago. And since then, I've been working 20 hours a week, part time outside of this as a developer. And that allows me to make enough money to write just get by and still work 40 hours a week on this. So it's kind of a 60 hour a week grind on top of all the training and all that.

439.186 - 462.702 Jim Basenius

But it has allowed me to make just enough money while also putting my heart and soul into this. And I've been working remote for years. And actually working flexible time. I work most of my hours after midnight for my side job. So it gives me the entire daytime hours to work singly. Where are you right now? I'm based in Chatham County, North Carolina. We're not even in a city.

463.282 - 473.011 Jim Basenius

So super small population, no police. I'm on 12 acres. I'm taking this call over DSL actually. But we're just outside of Raleigh, North Carolina, which is the capital.

Chapter 3: How did Jim achieve significant weight loss and maintain it?

473.031 - 473.811 Jim Basenius

It's about 30 minutes.

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474.212 - 487.283 Nathan Latka

Very cool. And so can I ask you, you know, this is what a lot of founders have struggled with is keeping their monthly expenses really low so they can have freedom to work on their side gigs. How low have you managed to keep your like total personal monthly expenses?

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488.326 - 506.385 Jim Basenius

So it's, it's tricky because we've had some recent changes in the past year. My fiance has come down with epilepsy. We've had to, she had to leave her job. I've actually had to come take care of that. So the past year we've been kind of burning some savings, but in general, I've been able to live off of this like 20, 30 K a year at points.

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507.466 - 525.973 Jim Basenius

You know, there was points where I dropped right out of college and I just found, you know, I was living $400 a month in rent and just living in a side little room and And I was eating out for all my meals, but I just did one meal a day, go to the dollar menu type stuff, McDonald's. And it's been pretty convenient to be able to keep our incomes that low. Lately, we've increased our expenses.

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526.013 - 552.627 Jim Basenius

We have a paid CTO now, and we've taken an investment to be able to help pay him just because we needed- Currently, we've raised $100K and we're about to raise a $400K pre-seed round. So that will be very interesting. But I'm not taking any payment. It's just to pay employees and help cover some of our company costs, which I would say we have under $1,000 in monthly recurring costs on singling.

552.947 - 563.246 Jim Basenius

How many full-time folks are on the team right now? Currently, we have two people full-time, one almost full-time. And so it's been fun. We're all three co-founders.

563.747 - 568.941 Nathan Latka

Okay. So three of you guys. And did you guys just split equity 30-30-30?

569.95 - 590.001 Jim Basenius

Nope. So it's actually quite interesting because we originally didn't intend for them to be co-founders, right? Like I said earlier, I started this as Neutron Creative, not as SingleLink. So it's been very interesting as we switched from Neutron Creative to SingleLink full-time. And one of our early advice from investors we got from Daniel Strachman from 1517 Fund was,

590.656 - 600.819 Jim Basenius

amazing advice, and she was a great investor to talk with, is that we were working alongside Naveed Kabir and Andrew Boyle. And she says, these two individuals are incredibly passionate about what you're doing. You need to bring them on as co-founders.

Chapter 4: What was the initial development process for SingleLink?

613.247 - 620.422 Jim Basenius

So Andrew is vesting up to 15% now and to be investing up to 25%, I've got the rest and, uh, it makes it safer that way because.

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621.083 - 623.228 Nathan Latka

How much did you give to the folks that put in a hundred grand?

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624.389 - 636.966 Jim Basenius

So currently, they're putting in at the same investment terms as our $400,000 pre-seed raised. So it's a $4 million cap with a 20% discount safe note. Okay.

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636.986 - 642.013 Nathan Latka

So the first $100,000 that you raised was at a $4 million cap with a 20% discount?

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642.033 - 648.021 Jim Basenius

Yep. Yep. Yep. And they're raising at the exact same terms as the pre-seed round we're raising right now. So it's really awesome.

648.281 - 653.248 Nathan Latka

Why did you decide to do that? You have more users now. You could argue for a higher cap, save some dilution.

654.646 - 663.074 Jim Basenius

Every single one of our investors is incredibly passionate about our project. They're people I could call on in the middle of the night. I could trust them with any part of our project.

Chapter 5: How did the Product Hunt launch impact SingleLink's growth?

663.234 - 673.765 Jim Basenius

They've given me fair advice from the beginning. These are people who are more than investors to me. They're team members. And that's something I really want to offer better terms at to help attract people that care.

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675.466 - 683.134 Nathan Latka

Got it. Very cool. Okay. So raising now, we'll see what happens there. 4 million valuation. That's great. Where will you spend the money?

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683.941 - 698.443 Jim Basenius

So mainly on our team, right? So we've gone unpaid for a long time. We need to get us paid full-time and committed to this project. Like I've mentioned, we have another team member who's currently part-time. He needs to drop out. We're gonna go full-time with this and all of us are gonna work for the next 12 months.

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698.484 - 712.345 Jim Basenius

We're gonna onboard new developers and pay for all of our current costs so that we can monetize over the next 12 months. Our monthly growth is great. We don't need to really improve it by much, right? I would love to maintain 50% over the next year. So we're gonna have some semi-organic advertisements.

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712.325 - 717.517 Jim Basenius

But realistically, our biggest goal is just building the infrastructure so we could monetize this audience.

717.838 - 726.418 Nathan Latka

Yeah. Do you feel like you've lost any optionality having raised capital for this vision? What if you launch the paywall and no one wants to pay for this thing and you've got to do something totally different?

728.339 - 746.922 Jim Basenius

I think with the investors we have now, they are backing the team with whatever decisions we decide to choose. So that's part of the reason we've taken the terms we have. So I would really say no. I really like the people we're working with. And they give us the availability to change directions if we need to.

747.483 - 755.933 Nathan Latka

Yep. Jim, what's the plan? How do you convert? Where do you put up the paywall for eight bucks a month? Is there a usage metric that people have to hit before they see it? Or what's the plan?

756.588 - 771.707 Jim Basenius

So currently everyone's kind of running on this pro version, right? But we're going to start adding a little bit of branding. We're going to allow people to just skip the event tracking. We're going to add all sorts of new features like one-click export. So you could take your site, export it, custom domains, all sorts of new things.

Chapter 6: What strategies are being used to convert free users to paid?

863.416 - 873.147 Jim Basenius

But you're always going to be able to capture less value, if that makes sense. So I just think it's one of those limitations of open source businesses that's just always going to be there, if that makes sense.

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873.245 - 890.315 Nathan Latka

Yeah, look, building on open source, you're in a very unique spot where you have to keep the community on your side. You want to keep people contributing code to make the value there. You can go listen to my episode with Sid at GitLab or even Matt Mullenweg at Automatic, who built on top of WordPress, both open source platforms. And they talk about this story in great detail.

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890.395 - 892.519 Nathan Latka

It's not an easy thing to balance.

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893.36 - 895.102 Jim Basenius

Love it. Absolutely. I will. Thank you.

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895.122 - 906.378 Nathan Latka

All right. All right, man. And that's for you guys listening in too. That wasn't Jim. It sounds like you're already on the right track, but that's for anyone else listening, wanting more of Jim's sort of style. But Jim, in the meantime, let's wrap up here with the famous five. Number one, favorite business book.

907.619 - 925.613 Jim Basenius

Favorite business book? How to Be a Capitalist Without Capital. That got me to know you and I gave it out to my whole team when we read it first. Oh, that's amazing. You read it? Yes, absolutely. How'd you find it? I found it on Product Hunt when it came out. I bought it instantly. Very cool. And you can look back up. I even emailed you for the bonus.

925.974 - 935.078 Nathan Latka

That's amazing. I love that. Yeah. It was really hard to come up with a title that didn't seem like a get-rich-quick book. So you read it. What would you tell people who say, I'm not buying that? It feels like a get-rich-quick thing.

937.403 - 955.022 Jim Basenius

The lessons in it are really true. They're fundamental business lessons, especially like copying other businesses, being able to do so and not worry. I wouldn't be here today without that advice. You know, building an open source link tree alternative. It's following that advice. So it's just fundamental business advice that everyone could use, especially somebody like me who's a dropout.

955.483 - 960.508 Nathan Latka

I love that. All right. Number two, is there a CEO you're following or studying? Hmm.

Chapter 7: What unique monetization strategies does SingleLink plan to implement?

978.18 - 992.794 Jim Basenius

That's interesting. I think unconventionally Twitter. Twitter is very easy to start building a business on top of, even if you don't know it. So just start building a community on Twitter and it can very easily turn into that business. Jim, how many hours of sleep are you getting every night?

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995.919 - 1002.949 Nathan Latka

I love to say eight, but it's probably closer to four to six. Okay. And situation, I married single kids. I think you mentioned you had a girlfriend.

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1004.296 - 1017.775 Jim Basenius

I have a fiance. We were about to hit five years together. It's been great. We're trying to get married soon, but COVID's kept the whole ceremony off. Yeah. And no kids? No kids yet. So maybe soon, but not yet. How are you?

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1018.997 - 1025.005 Nathan Latka

I'm 22 and she's 22 as well. So it works out. All right. Take us home here. What's something you wish you knew when you were 20?

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1028.444 - 1046.098 Jim Basenius

I wish I knew that you can fail and learn from failing. Traditionally in school, I always learned from succeeding, right? You feel like you were only able to do better if you kept studying and you kept getting A's. As a founder, you learn through failing. You fail and then you learn, oh, that's something I should not do. Learn from failing. Failure is entirely okay. Don't be afraid of it.

1046.078 - 1060.955 Nathan Latka

Guys, SingleLink.co is an open-source Linktree alternative. They signed up many hundreds of users, 100 users in the first three days when they launched on Product Hunt, over 400 users in month one. Today, we're 2,600 active users, launching an $8 paywall in the next month or two. We'll see how it works.

1060.975 - 1072.428 Nathan Latka

They raised $100,000 to get going, raising another $400,000 right now on a safe at a $4 million cap, 20% discount. We'll see if Jim can get it done with his team of three. Jim, thanks for taking us to the top.

1072.448 - 1074.33 Jim Basenius

Thanks so much for having me. It was great seeing you.

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