At the age of 13, Steven Schwartz embarked on his first side hustle, marking the beginning of a journey that saw him create a total of 22 such ventures. Collaborating with his friend, Cameron Zoub, they achieved notable milestones along the way. On a couple of occasions, they even raked in hundreds of thousands of dollars in a single day, a feat that allowed Zoub to purchase a Tesla Model S while they were still in high school, as recounted by Schwartz.
However, it wasn’t until March 2021 that they managed to establish something truly sustainable. Joining forces with co-founder Jack Sharkey, they unveiled Whop, a tech marketplace with a unique vision. Schwartz describes Whop as akin to an “Etsy for software products.” As of now, this platform is generating an estimated monthly revenue of approximately $354,000, according to CNBC Make It’s calculations.
The success of their venture boiled down to a straightforward principle, according to Schwartz.
“It worked for a simple reason,” says Schwartz, who is now 25, in conversation with Make It. “You want to really orient yourself around a real problem that needs to be solved. [On Whop], people get hung up around building software, and they make something that no one’s actually going to use … If no one’s using it, you get really demotivated.”
This perspective aligns with the wisdom of established figures in the tech industry. Billionaire entrepreneur and investor Mark Cuban, for instance, frequently imparts advice to young aspiring entrepreneurs, emphasizing the importance of focusing less on starting a business and more on identifying and solving a real problem.
In 2015, Mark Cuban shared a valuable insight in an interview, stating, “There comes a point in time where you got to figure out the answers yourself. Learning how to solve problems, learning how to find answers, being curious enough to find solutions on your own is where successful businesses come from.” This philosophy mirrors the path that led Cuban to become a billionaire. He and his friend Todd Wagner initially aimed to listen to Indiana University basketball games over the internet, which ultimately led them to co-found AudioNet in 1995. Later, the company transformed into Broadcast.com and was acquired by Yahoo for $5.7 billion in stock four years later.
Similarly, Steven Schwartz absorbed this lesson through his own journey of successes and setbacks. During his high school years, Schwartz and Zoub ventured into building sneaker bots, software designed to secure limited-edition shoes faster than manual buyers. Although these bots occasionally proved profitable, their earnings were unpredictable, making it challenging to rely on them as a stable source of income.
In late 2018, they ventured into the IT agency realm, where they constructed websites and apps for clients. At its peak, the agency generated $100,000 per month in revenue, indicating that it effectively addressed a problem. However, despite its financial success, Schwartz and his co-founders did not find the work creatively fulfilling.
Whop, on the other hand, provided the best of both worlds, according to Schwartz. It not only addressed a pressing issue by offering a safer marketplace for software sales but also brought personal fulfillment. Zoub, monitoring online forums for software transactions, discovered rampant scams and fraudulent activities. In response, Whop positioned itself as a trustworthy alternative with stringent vetting processes and established standards.
Moreover, Whop granted Schwartz the flexibility to pursue his creative and entrepreneurial impulses without abandoning the company whenever a new side hustle idea arose. This dynamic environment allowed him to continue developing and selling new software products while maintaining a reliable platform for these endeavors.
As Schwartz puts it, “The beauty of Whop is if we have an idea, we can just go on Whop and try it out. It’s a really amazing way to use your own product.” This philosophy of creating solutions to real problems and fostering a sense of fulfillment in one’s work mirrors the approach taken by Mark Cuban and countless successful entrepreneurs. By focusing on addressing genuine needs and maintaining a relentless curiosity to find solutions, both Cuban and Schwartz illustrate how successful businesses are born from a commitment to solving problems and embracing creative opportunities.
Source: cnbc.com
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