2 builders who never spoke to each other

Judge readiness by who has actually paid

A waitlist measures curiosity, and the share of it that converts to a paying account runs low and falls further the longer people wait. What tells you to open is the smaller number of people whose payments already cover the bills, even when almost all of them sit on the cheapest occasional plan rather than the top tier.

The method

1. 01

   Open as soon as the committed few cover the bills, even when nearly all of them are on the cheapest occasional plan rather than the top tier.

2. 02

   Do not judge a waitlist by its size. Judge it by how many convert to a paying account, and expect that number to be small.

What it returned

• 1,800

  The first 1,800 square foot Indy Hall opened with around 20 members but only 2 of them full time, everyone else dropping in occasionally, some weekly and some monthly; it reached break-even within 3 months and repaid Hillman's $10,000 within 15.

• 5%

  Paid conversion off a waitlist ran from 5% to 25%, averaging about 20% with a sub-month wait and falling below 10% beyond three months.

Sources

• How Much Does It Cost To Start A Coworking SpaceAlex Hillman · dangerouslyawesome.com · 2) How much does it cost to open a coworking space · 2012-01-01
• What is good waitlist conversion - by Lenny RachitskyLenny Rachitsky · lennysnewsletter.com · Q: What is a good waitlist conversion? Any advice for making the most of our waitlist? · 2022-03-01