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Employees
  Suck
This presentation
will start shortly.
(I promise it won’t suck)
This presentation can be downloaded
                from:
 http://slideshare.net/johnbuckman
Employees Suck
This presentation is under a
Creative Commons by-sa 3.0 license:
 http://creativecommons.org/licenses/by-sa/3.0/
Employees Suck
I can be reached at:

john@magnatune.com
This speech is entitled:
Employees
  Suck
managing is no fun
Coordinating
talented & motivated
       people.
Now that’s fun.
firing is no fun
permanent
employees are mostly
     unneeded
changing circumstances
        demand
       new skills
instead of retraining
     employees,
get new contractors
  for your current
      projects.
but note:

virtual cooperation is
     very difficult
Hollywood does fine
without employees
Bosses suck
even more
Nobody can work
  8h straight
Talented people are
10x more productive
but paid, at most,
  3x as much
and normally they’re
paid only 20% more
you’re usually paid less
   than your boss.
why!!?!?!
employee
        =
mostly dumb-work
employee
           =
very few satisfying tasks
why be clever?
why do your
best work?
paid by the hour
rather than paid for
 your contribution
solution:

    quit & make
intellectual “goods”
solution:

and sell them for their
      true value.
“good enough”
  is rewarded
when you’re an
    employee
“great work”
       is rewarded
       when you’re
selling the product itself
Do you enjoy your life?
Do you enjoy your work?
Do you want kids?
Do you like learning?
Do you want to get paid
 for what your work is
     actually worth?
Steps to self-employment
Think of lots of ideas.

 Write them down.
Do nothing.
For a while.
3 months later,
are they still good ideas?
Explain your best idea to a
  friend in a noisy place,
  while they’re drinking.
Do they have an instant
  positive reaction?
Next, think about your
       product.
Make an elevator pitch
Write the first line of your
      press release
Write the first paragraph
  of your home page
Make the
home page
Hunt for unique names
Figure out how to do the
idea really, really cheaply.
So cheaply that you don’t
need anybody else’s money.
Show a mockup, then a
demo, to people who might
          buy it.
Launch before you’re ready.
Pitch bloggers.
If nobody cares, maybe
       your idea
        sucked.
Start again.
If your idea was good, all
    other problems are
         solvable.
Don’t quit your day job.
If your idea starts to take
off, slowly lower your day
      job commitment
don’t quit until your idea is
paying more than your day
            job.
when you run your
own company, you will
     discover:
Salespeople
are a bad idea
Fallacy:

“our product is great,
  it’s just not selling
because we don’t have
   any salespeople”
Good products build
word of mouth, and sell
     themselves.
Fallacy:

“our product is great,
 we just need PR and
marketing to get the
      word out”
If the product were
great, your early users
 would blog that fact,
and you’d be on your
      way already.
The secret to getting
   massive press:
(1)

Be really interesting
(II)

     Convince two
influential bloggers that
   you’re interesting.
P.R. secret
           for
traditional print media
Focus on the
freelancers, not staff
       writers.
Be a cause a freelance
    writer would
    personally like.
Staff writers get
assignments from their
         editors.
Freelancers have to
 pitch stories to an
 editor to get paid.
A press blitz example.
Employees Suck
Magnatune:

Creative Commons & Boing Boing ->
           The Inquirer ->
               Fark ->
            Slashdot ->
        USA today / NPR ->
         New York Times ->
         BBC / Le Monde /
       Die Zeit / Nikkei Times
Magnatune story angles:

          Fair use & Creative Commons
              Label embraces Sharing
         Biz model in Peer to Peer reality
         Piracy used as a promotion tool
        Indie musicians abandoning labels
             Not suing our customers
          Musicians actually getting paid
       The big money is in music licensing
                Major labels are Evil
                iTunes has it wrong
       Successful entrepreneur tries again
Linux vs Microsoft == Magnatune vs Major Labels
the
“elevator pitch”
Employees Suck
they say:

“download, sample
  cut-up, share”
I say:

“remixing makes
 better music”
Employees Suck
They say:

“On Jamendo artists
  allow anyone to
download and share
their music. It's free,
legal and unlimited.”
I say:

 “Download tons of
music from artists who
 don’t want to make
        money”
Employees Suck
Magnatune says:

           “We are not evil”
 “We work directly with independent musicians world-
wide to give you downloads of MP3s and perfect-quality
  WAV files. We never work with major labels, and our
musicians always get 50%.You can listen to every album in
  its entirety before buying or becoming a member. “
Magnatune says:

          “We are not evil”
blah, blah, blah... blah, blah, blah... blah, blah, blah... blah,
         blah, blah... blah, blah, blah... blah, blah,
            blah... blah, blah, blah... blah, blah,
                   blah... blah, blah, blah...
                blah, blah, blah... blah, blah,
                   blah... blah, blah, blah...
Whoops.
Employees Suck
They say:

 “Give books away,
get books you want”
I say:

 “Give a book away for
  free, and you can ask
someone to send you a
     book for free”
A good test:
“Will people pay more for
this than it costs to create
             it?”
Some final tips:
Dedibox.com is
psycho-cheap hosting.




  for French people only. Ha! Ha!
Use Open Source
Use PHP initially for
    everything.
Find €3000
for a good independent
    graphic designer.

Make your home page
       pretty.
Do everything yourself.
If you’re not technical.
Learn to be technical.
PHP is not difficult.
Read tons of books.
Learn:
sales, marketing,
 programming,
 tech support.
You can’t lead people
if you don’t know how to
       do their job.
Don’t hire.
Until you are getting less
than 6 hours’ sleep per
          night.
Only hire
for well understood
       tasks.
Don’t borrow money.
Without debt,
your idea can fail and you
 can try again next week.
Take small steps.
Give yourself 3 years
 to figure this out.
It will take at least 7 years
to get decent at this and to
    make any real money.
You can do it.
This presentation can be downloaded
                from:
 http://slideshare.net/johnbuckman


          Contact me at:
      john@magnatune.com


  This presentation licensed under
   Creative Commons by-sa 3.0

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