Must Read
Jan 9, 2025
The Challenge: Why Building Tech Products Is Really Hard
Building technology products is hard, especially for those with limited experience. While we hear success stories about Instagram, TikTok, Spotify, and Jira, they represent a tiny fraction of the thousands of tech startups launched annually. After ~20 years building tech products, I've observed that the primary reason for failure isn't lack of commitment or innovation—it's running out of capital before finding product-market fit (PMF).
The Traditional Agency Model: A Fundamentally Broken System
When businesses need to develop new products, they often turn to tech agencies to offset internal talent acquisition risks and leverage specialized experience. However, even for the biggest buyers, these relationships come with substantial risks.
The core problem? Tech agencies, dev shops—whatever you call them—are not mission-aligned with their clients. As services businesses with razor-thin margins, agency owners and managers perpetually chase the next deal just to stay afloat. Consider this: the average agency has only 1-3 months of runway.
The Real Problems (Learned the Hard Way)
Around 2013, while running a digital product studio in New York serving clients from startups to major brands like CBS and Cargill, I witnessed these challenges firsthand:
Inefficient Cost Structure
Agencies maintain substantial overhead: offices, marketing, sales teams
Clients pay 3-5x salary rates for talent to cover these costs
Companies with lower budgets often receive subpar work
Expensive "bench" talent sits idle between projects
Quality and Relationship Issues
Staff context-switch between multiple projects
Knowledge transfer between agency and client often fails
Initially positive relationships sour due to misaligned incentives
Agencies prioritize revenue while clients need capital efficiency
No continuity at project handoff leads to expensive refactoring
After selling the business in 2019 and validating these issues across market-leading services businesses, I reached a clear conclusion: organizations should NEVER use agencies or dev shops to produce or refactor technology. The costs and risks are simply too high.
The NoFUD Solution: A New Model for Building Tech Products
Based on these experiences, I developed a new approach focused on helping companies build exceptional technology teams without traditional barriers. The NoFUD model makes it possible to assemble teams that are both technically skilled and culturally aligned, while keeping costs predictable and ensuring talent feels valued and well-compensated.
Core Principles
Direct Access: Companies hire talent directly, eliminating overhead costs. We handle vetting and EOR management, providing dedicated Product Managers, Developers, and DevOps professionals.
True Integration: Team members work as part of the client's business. After MVP completion, the team seamlessly transitions into day-to-day growth and management.
The Benefits: Speed, Efficiency, and Quality
Development Velocity
Faster time to market and MVP testing
No switching costs or refactoring delays
Better code quality through aligned teams
Continuous development without team changes
Cost Efficiency Comparison
Productivity Analysis ($1M Budget Scenario)
Additional Benefits
Flexibility: Options for both fractional and full-time arrangements
Risk Mitigation: Solutions for short-term projects and long-term needs
Advanced Talent Identification: Proprietary AI and human screening for top global talent
Seamless Network Access: Pre-screened candidates available on-demand
Simplified Compliance: Comprehensive onboarding and regulatory handling
Cost Efficiency: No agency markup
No Recruitment Fees: No FUD saves on average 20k+ per employee on talent acquisition.
The Bottom Line
Don't use a traditional agency—it's usually a waste of capital and carries unnecessary risks. The NoFUD "Agency" offering exists to capture those considering the traditional agency path and show them a better way. Your Product Manager becomes your point of contact, and your team truly becomes yours. Whether fractional or full-time, the approach is more efficient, more attuned to your needs, and provides the continuity essential for long-term success.
By eliminating unnecessary overhead and streamlining talent acquisition, NoFUD offers a more efficient, flexible, and sustainable approach to building tech products.
