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When you’re building a startup, it’s easy to get caught up in perfecting your product. But Spenser Skates, co-founder of Amplitude, learned the hard way that waiting too long to ask customers for money can be a costly mistake. Looking back, Skates wishes he had launched his product in six months instead of a year and a half, and he regrets not focusing on getting paying customers earlier.
Photo: Sequoia Capital
The Mistake of Building Without Feedback
Skates openly admits that he made a significant mistake during the early days of Amplitude. He stopped talking to users and became laser-focused on building the product. It wasn’t until much later that he realized this approach was flawed. Sure, people were willing to try the product for free, but no one was interested in paying for it.
It took until July of 2013—over a year into development—before Amplitude got its first paying customer. This delay was a wake-up call for Skates, highlighting a crucial lesson for any entrepreneur: talking to users and understanding their willingness to pay should happen early in the process.
Why Asking for Money Matters
One of the key takeaways from Skates’ experience is the importance of asking for money early. He thought he needed to perfect the product before he could charge customers, but in retrospect, he realizes that this mindset was backward.
By not asking for money, Skates missed out on valuable insights. If he had asked for payment sooner, he would have quickly learned whether or not he was targeting the right customers. In the world of startups, this kind of feedback is invaluable—it helps you pivot, refine your offering, and ensure you’re building something people are actually willing to pay for.
The Value of Early Commitment
Skates now believes that early commitment from customers is crucial. Even if your product is still in its early stages, getting users to commit financially can provide validation and direction. It’s not just about making money; it’s about building a product that meets real needs.
By asking for payment early, you’re essentially asking customers to invest in your vision. This investment isn’t just monetary—it’s a commitment to helping shape the product as it evolves. When customers have skin in the game, they’re more likely to give you the feedback you need to succeed.
Learning From Regrets
Spenser Skates’ story is a reminder that building in isolation is risky. While it’s tempting to wait until your product is “perfect,” the reality is that you need customer feedback to guide you. And more importantly, you need customers who are willing to pay for what you’re building.
For any entrepreneur, the message is clear: don’t wait too long to ask for money. Engage with your users early, understand their needs, and ensure you’re building something they value enough to invest in. It’s a lesson Skates learned the hard way, but it’s one that could save others from making the same mistake.
Listen to Spenser Skates:
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