You may think that sounds like a very nice salary but $4MM annual gross is a very small business. I can’t imagine how Railway would be in business if that were considered a large customer.
Sure, I guess there are a ton of dumb people. But please name a few sites that aren't slop ecom fly by nights... I cant think of any serious business that runs on raleway.
I dont understand using any PaaS that essentially functions by arbitraging aws to people that are scared of an aws dashboard at a 3x markup.
Seems like a decent platform for toy projects not for enterprise.
Maybe I'm finally old, but I don't see how it's surprising that Raleway is at all successful. Heroku built the same business ~15 years ago and had plenty of "enterprise" clients. I don't really understand if there's that much more value in Raleway vs Vercel, and Vercel claims to have OpenAI and Meta as clients.
300K ARR means you get 300K in annual recurring revenue.
Subtract costs for employees. Which, given current economy and inflation, that gets you a founder scraping on their savings, one or two other people (remember that if you're paying someone unless it's totally offshored through a house which has it's own inflation, you have other factors) and then your own taxes... yeah... much more than that and you are in the black.
As a general factor I keep in mind, when I worked at a 'normal' but toxic place before I was an actual software engineer, my manager's rules were something like '40 percent L2R' (might have been lower) for in-house employees and 70-
80% L2R for contractors.
IOW, for every dollar billed for an actual employee, we paid the employee 40 cents. For every dollar billed for a contractor, we paid them 70-80 cents.
I've heard similar figures from others (e.x. 'in house employee has a real cost of 1.5-2x their actual pay').
And yes it sucks and yes the structure at least here in the US is a factor.
You may think that sounds like a very nice salary but $4MM annual gross is a very small business. I can’t imagine how Railway would be in business if that were considered a large customer.
Sure, I guess there are a ton of dumb people. But please name a few sites that aren't slop ecom fly by nights... I cant think of any serious business that runs on raleway.
I dont understand using any PaaS that essentially functions by arbitraging aws to people that are scared of an aws dashboard at a 3x markup.
Seems like a decent platform for toy projects not for enterprise.
Maybe I'm finally old, but I don't see how it's surprising that Raleway is at all successful. Heroku built the same business ~15 years ago and had plenty of "enterprise" clients. I don't really understand if there's that much more value in Raleway vs Vercel, and Vercel claims to have OpenAI and Meta as clients.
1 reply →
Yes, they should be charging 6x if they want to hunt the big fish.
> But please name a few sites that aren't slop ecom fly by nights.
https://railway.com/customers
tripadvisor and bilt, maybe?
It's pretty common to have "toy" infrastructure in a non-tech business
1 reply →
300K ARR means you get 300K in annual recurring revenue.
Subtract costs for employees. Which, given current economy and inflation, that gets you a founder scraping on their savings, one or two other people (remember that if you're paying someone unless it's totally offshored through a house which has it's own inflation, you have other factors) and then your own taxes... yeah... much more than that and you are in the black.
As a general factor I keep in mind, when I worked at a 'normal' but toxic place before I was an actual software engineer, my manager's rules were something like '40 percent L2R' (might have been lower) for in-house employees and 70- 80% L2R for contractors.
IOW, for every dollar billed for an actual employee, we paid the employee 40 cents. For every dollar billed for a contractor, we paid them 70-80 cents.
I've heard similar figures from others (e.x. 'in house employee has a real cost of 1.5-2x their actual pay').
And yes it sucks and yes the structure at least here in the US is a factor.
If your overhead for an employee is 60% you need to seriously rethink some things
MRR.Think before spewing slop
Lots of companies run on railway
Why not?
Why are you even commenting? And it's Railway not raleway.
User since 2011 and you’re asking this question?