Python for Entrepreneurs Transcripts
Chapter: Making money (credit cards and businesses)
Lecture: Making money introduction

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0:02 So are you ready to learn about how to take your online web app
0:05 and make money with it?
0:08 Accept credit cards, set up business models,
0:10 talk a little bit about charging for products, things like that?
0:14 Well those are the kinds of things we are going to learn in this chapter,
0:17 we are going to start with accepting credit cards and actually working with the APIs
0:21 as well as just talking more generally about some of the options we have
0:24 for creating and accepting purchases via credit cards in our web applications.
0:29 Once you start accepting money, you will have to of course have a business model
0:34 and that has sort of two components in my mind,
0:37 on one is how do you form a company, right?
0:41 Once you accept money and you start entering purchase agreements with people,
0:44 you don't want to do this personally, right,
0:47 you want to do this through some kind of formal business that has limited liability,
0:50 or some kind of protection for you, at least in the United States,
0:53 the two primary models are LLC (Limited Liability Companies) and Corporations,
0:58 so we'll talk a little bit about that
1:00 and even if you are outside of the United States
1:03 how you can still create one of these within the US as a US company,
1:07 if that makes sense.
1:09 The other part of this is how do you actually sell your product,
1:12 do you sell by recurring subscriptions? Do you sell by one-off purchases?
1:16 do you not sell it at all but sell ads? Things like this,
1:20 we'll talk about some of the trade-offs there.
1:23 And finally, we'll also talk about other ways to accept money from customers,
1:26 we'll see that many of your best customers won't put their credit cards into your system,
1:31 instead, they will say can we do a bulk purchase?
1:34 Can we buy something for my team? I'd like to set up some kind of arrangement
1:38 for my whole company, things like that,
1:40 and for that you typically use purchase orders and invoices,
1:43 so we'll talk very briefly about those as well.
1:45 Now, once you've created your web app, it can be scary to charge for money.
1:49 But there is a picture I want you to keep in your mind,
1:53 something like this- it's definitely something that's hard to get right,
1:56 how much should you charge? What business models should you use? If you charge, will all of your users quit?
2:00 Instead of thinking of charging money as a negative, think of it as a positive.
2:05 As long as you are fair, charging money will allow your business to grow,
2:09 it will allow you to hire other people to make whatever your users like now,
2:13 make that more awesome and provide more value to them.
2:16 Not everybody will pay for what you have,
2:18 maybe you have some kind of free trial model or something to this effect,
2:22 I don't know what your web app is, but your business will definitely be well,
2:26 a business and not a hobby if you charge money for it
2:29 and it will let you put all of your time and energy into it once you get it to grow strong enough.
2:33 So think of charging money or asking for money from your customers and users
2:38 really as your ability to grow.
2:41 They are getting value out of what you are doing,
2:43 many of them will be more than happy to support your work long as you are fair about it.
2:48 The path is not always a straight line to where you are going.
2:52 Let me give you a little bit of example from how I started.
2:55 In April of 2015 I started the podcast,
2:59 and in the beginning it was just a hobby more or less,
3:03 I never really expected anybody would sponsor it,
3:06 you can see there is an ad at the top of the page, I didn't expect that,
3:10 that was a pleasant surprise and so I started this as just something to share
3:14 with the community, start telling stories and something I wanted to do
3:19 but then I realized after companies came and started to want to sponsor and so on,
3:23 that maybe I could make something more out of this,
3:26 maybe I could actually if I could take it a little bit farther,
3:29 I could actually make this my job, make the podcast more awesome,
3:32 put more energy into it, make sure that it keeps going, things like that.
3:36 Moreover, I had always wanted to start some kind of online training company
3:40 but there is such a chicken and egg problem of how do you find people
3:45 who like what you are doing, how do you get people to know about you,
3:49 how do you get them to trust you.
3:51 Instead of just going and saying starting this company directly,
3:54 I actually started the podcast first and then once that had a good audience
3:59 and people knew me and trusted me from there, then I felt confident
4:02 to actually go and launch Talk Python Training where you are taking this course.
4:07 So had I just gone and tried to start this training company on my own,
4:10 maybe I would have succeeded but the odds would have certainly been against it,
4:15 it would have been much harder than if I already had built up some kind of audience.
4:19 Maybe I could have made this work going through some other training company
4:23 and try and work basically as a subcontractor like an author on royalties sort of thing,
4:27 but starting my own business that was quite risky.
4:30 However, with the podcast there as the foundation, then it becomes not so risky,
4:35 so I want you to think about all the building blocks in the way
4:38 you might create one thing and then level it up to another
4:41 instead of necessarily just going directly towards the thing
4:44 that you might have in mind at the end.
4:47 OK, so there is many building blocks,
4:49 many ways to put this together and build up a business and just be creative.