Kirill Zubovsky, who spoke on the GeekWire podcast in January 2023 about his experience founding Smartynames, an AI domain name venture.
When yourEntrepreneurshipIt is easy for companies to abandon ship when they encounter rough waters.However, in my journey, I've realized that what appears to be the end can be an opportunity in disguise.
If your startup isn't getting the traction you were hoping for, it may be time to pivot or even sell.Trust me, there's a light at the end of the tunnel.You can profit, learn, and become stronger.Let me share my experience so you can avoid some of the pitfalls I encountered.
This is also the story of how I sold Smartynames to Truic and got a nice profit share deal out of it.But first, to fully understand it, we need to rewind.
The year was 2014, and Scoutzie, the venture capital startup I had poured my whole heart into, failed.Imagine sacrificing time and money, putting everything into a dream, only to see it crumble.That's us.As funds dried up, the weight of fatigue and disillusionment convinced us there was only one way out: closure.A decision we will always regret.
In retrospect, other doors were open: additional financing, steering, acquiring or selling assets.In fact, the team at SV Angel, one of our investors, did tell us that all of these options are on the table.But the fog of despair obscures these routes.Why?Because we no longer believe in ourselves.
Think about it: thinking about "acquisitions"?From an outsider's lens, they'll see a resourceful Y CombinatorFounder, with a top-notch engineering background, a master of multi-tasking.You can code, design and conduct business.assets of any organization!
But from the founder's point of view, what I saw in the mirror wasn't so pretty: a worthless person who couldn't get his company up and running, had no useful skills and no more energy to move on.The gulf between external perceptions and internal self-evaluations can be vast, destructive, and not only unhelpful, but positively debilitating.
This gap is not only unfortunate; theIt's misleading.What is the solution?Confident and proactive stance.Separate your emotions from your adventure for a while.Shift the focus from past efforts and aspirations to planning a viable way forward.
Okay, now back to the Smartynames story.When I launched Smartynames, I didn't have much of a plan other than to learn about the industry and see what I could create.At first I wasn't concerned about money, but sometimes there's always a plan to get there soon.I got some affiliate deals and came up with a set of features that I think will be popular.
Fast forward nine months and I'm making a little bit of money each month, but it's absolutely nothing to write home about.I am now faced with two choices: keep working and try to figure out where the money is ;)Or find someone else who can help me do it faster.
At 25, I'd stick with the first option and maybe even try to raise money to make it big.But in my 30s, I decided that sometimes moving fast and breaking things means asking for help too.After all, domaining is not a business I plan to be in for the next 25 years.It was an interesting experiment, but I wanted to get out there and for once, I knew it would take deliberate effort.
I sought advice from a few friends and discussed my options.At first, I wanted to turn and keep progressing, but then reason set it.I listed about a dozen people interested in purchasing Smartynames and emailed them.Everyone receives a personal email with examples of how Smartynames.com can make their company bigger.
Selling to a potential buyer is no different than selling to a venture capitalist or prospect.
However, the basics are as follows: make a plan, figure out what's important to your buyers, inject yourself into the right place in their buying process, and market your stuff in a way that they can't resist wanting to buy it.Not every buyer will be a good fit for your product, and you must recognize this and focus on those that are.Then browse your list and get the job done.
So what happens when I send all my emails?Some ignored me, some teased me, some politely declined, but some companies expressed legitimate interest.We started discussing ways to integrate the technology and what the future holds together.
The most enthusiastic and honest buyer, however, was Truic's CEO, Nagabhushanam Peddi (more widely known as Bobby), and we had such an optimistic discussion that after the first phone conversation with him I was almost convinced that, barring a serious mistake, Truic was not only a better option, but the best one! .
That's what really sets Bobby apart: he's straightforward, honest, energetic, action-oriented, and a great salesman.He immediately understood that I was more interested in learning than in money, and he sold me on a future we could accomplish together rather than paying for it immediately.I don't care who pays me, but I want to work with Bobby.
It also helps that Truic fits in perfectly.They have been converting customers into domain buyers for years and have their own name generator, as well as tons of resources on how to start a company.There's a YouTube channel, a podcast and a deep knowledge base.It's a one-stop store for inspiration, motivation, education and getting started.Not only did they already have everything I was hoping to accomplish with Smartynames, they also had the expertise on how to turn inbound users into sales, and lucrative contracts to turn those customers into dollars.
Like I said before, sometimes you need to ask for help, and that help can come in various forms.Sometimes it's advice, sometimes it's money, and in my case, it's leverage.I could have spent months learning how to make money in this field, which would have required fundraising, or I could have worked with someone who already held all the cards.The choice seems obvious.
It only took us a few days to work out the details and sign the contact.Truk moves quickly, really quickly, and pleasantly.Now, if Smartynames makes money, we both get paid, and with their resources, that's almost guaranteed to be true.It's a win for them, it's a win for me, and it's a huge win for our clients who will be able to find the right domain name, learn, and start a company.What's not to love?
If you're a struggling founder unsure of the path forward, maybe selling is the right move for you.In the best case scenario, you'll find a way to make more money, and in the worst case scenario, it will free your soul.