Sahil Lavingia

I'm Sahil, founder of Gumroad and author of The Minimalist Entrepreneur. AMA.

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Started as a weekend project in 2011, Gumroad has grown–with its fair share of ups and downs–to helping 94,000+ creators earn over $500,000,000. In February 2019, I published a Medium essay, “Reflecting on My Failure to Build a Billion-Dollar Company,” that struck a chord with thousands of aspiring entrepreneurs who’d much rather build a sustainable business like Gumroad than chase a binary billion-dollar-or-bust outcome. I wrote The Minimalist Entrepreneur to help anyone start, build and scale their own sustainable business. AMA!
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Goutham
Hey Sahil. Loved how you built Gumroad. If you had to start again all over today, what would you be working on?
Sahil Lavingia
@gouthamj In the ten years since I've started Gumroad, I've learned that some of my favorite people in the world are entrepreneurs and business owners. So I would build a product to serve them–especially those who are remote, and async first, and folks not as close to the Silicon Valley "bubble."
Goutham
@shl Awesome. Thanks for the reply Sahil. I too find building for entrepreneurs to be so fulfilling :)
Andy Cook
Hi Sahil - Great to have you here. I've been following the Gumroad story for awhile and appreciate you taking the time to share knowledge. One thing I've admittedly found hard to reconcile while trying to apply learnings from your story is that the path you took to make Gumroad a profitable indie business isn't all that replicable for other founders (e.g. raise $10M and then have your investors give you all the equity back for free) Obviously, every one's path is different while building a successful business, so you can't really copy anyone. But with that in mind, if you were to start Gumroad now without that $10M of initial VC funding to get it off the ground, what would be your strategy today if you were bootstrapping or working off a much smaller seed round?
Sahil Lavingia
@andygcook Super fair question! I only wrote to share my story, not for others to copy. If I didn't have $10M in funding, I would do what I did in 2015 when I ran out of funding, just right at the beginning: leave SF, minimize my personal burn rate, and hire contractors to scale.
Andy Cook
@shl Makes sense and good advice. Especially around minimizing personal burn rate. Tough to do, of course and not possible for everyone, but makes a huge difference.
Sheida Mirjahani
If you started Gumroad in 2021, how would you acquire the first 1000 creators?
Sahil Lavingia
@sheidmirj Same thing I did in 2011, 10,000 cold emails.
Rajesh Kadam
Hi Sahil, Which recent investment of yours are you most excited about? And do you invest in Crypto?
Sahil Lavingia
@6kadam I do invest in crypto. I'm most excited about my investment of 500-1,000 hours to write The Minimalist Entrepreneur.
Rajesh Kadam
@shl That's an awesome re-frame! thanks.
Chris Davis
@shl @6kadam very smooth and topical
Oliver Sauter
Hey Sahil, your product development processes have been a big inspiration for us, and helped us to build our product in a much saner, paced and focused way. A game-changer for us was the process you outlined in your chat with Josh Pigford about your Tentpole launches:
I am curious if you have anything written down about the way people decide to work on projects, or generally a deeper dive into those processes. Is that laid out in the "minimalist entrpreneur"? So far I understand that everyone is basically freely choosing to work on stuff that is in the pipeline as "specs complete". How do you make sure that things progress well and don't cause clogging because of dependent tasks, if a person taking on a task is only able to work 2 days a week? Also, how are people compensated right now in the upside of the long term project? From what I understand most people work with a very high salary, but no long term upside e.g. in the form of stocks? I am curious to learn more about the reasons for applying this compensation model, and how you align for long-term commitment without sharing of long-term upside? Thanks so much for your continued insights and desire to share the things that help other founders get to a good place too 🙏
Sahil Lavingia
@oliversauter It's more art than science, but I often use 4 heuristics: 1. What's the worst thing about the product, can we improve it? 2. What's the best thing about the product, can we make it even better? 3. What's the first piece of friction a user happens upon? 4. What's the bottleneck that prevents our most successful users from being even more successful? Rinse, repeat. Ultimately you need experience (and some data) to make better decisions.
Sahil Lavingia
@oliversauter We rarely have dependent tasks.
Sahil Lavingia
@oliversauter We give out equity now.
Chikodi Chima
Hey Sahil, will you still be at Founder Summit CDMX on Tuesday?
Sahil Lavingia
@chikodi Yes! Here now :)
Chikodi Chima
@shl awesome. Looking forward to connecting tmw
Marin Petrov
Have you ever thought of retiring at some point?
Sahil Lavingia
@troll_lock I did, in 2019. That's why/when I published my Failure essay.
Martin Tonev
Hey Sahil, I want to ask how you trigger the initial work of mount to get your product at such a high point. I`ve created a free documentation builder for software projects and all the people I have reached like the product but I just can get to enough users. So how did you initially market your service?
Sahil Lavingia
@microdesignn I would "start with community" and only then build a product. If you're having a hard time with your existing product, I'd just build a new one.
jeff slobotski
Congrats on the new book Sahil and looking forward to getting a copy here soon! Keep moving the good forward friend!
Sahil Lavingia
@slobotski Thanks Jeff!
Sunny Modi
Hey Sahil, Does Gumroad has plans to launch a Web3 product for creators? I would love to see what the Gumroad Web3 could do.
Sahil Lavingia
@sunny_modi Not yet. But we're paying attention.
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