How to Grow Your Startup Through Community

Photo of Paul McMahon

Paul McMahon

Founder
People holding a rocket ship over their head.
Image: Amanda Narumi Fujii

Over my career, I’ve spent at least one thousand working hours on supporting local developer communities. My current business, TokyoDev, has spent over 8 million Japanese yen (about 53,000 USD) on community sponsorships. What have I received in return? That depends on your viewpoint.

From a cold-hearted capitalist perspective, that time and money I invested hasn’t produced enough direct returns to justify the expense. Personally, I don’t see it as wasted—all of it has had a positive impact on society. What’s more, the three businesses I founded have owed much of their success to my community involvement.

Those companies are:

  • Mobalean, a technical consultancy that helped companies like PayPal, Match.com, and Estee Lauder build web apps for Japanese feature phones
  • Doorkeeper, an event registration platform that hosted thousands of events per month
  • TokyoDev, a job board that helps international software engineers get jobs in Japan

If I hadn’t volunteered for and donated to various developer communities, two out of those three businesses would never have been founded at all, and TokyoDev certainly wouldn’t be the success story it is today.

So, despite these “unequal” returns, one of the best strategies for my startups has been to get involved with communities whenever possible. I’ll go over some of the different ways communities have helped grow my businesses, and give specific examples of wins we’ve experienced over the years.

Growing through existing communities

There are two kinds of communities that can help you grow your startup: preexisting communities independent of your business, and communities you build around the business itself. My companies got their start due to my involvement in existing communities, and I think that is the easier place to begin. Already-established communities not only come with their own networks, but are usually easy to join and happy to receive support.

Volunteering

This was the origin of Doorkeeper. An industry event, Mobile Monday Tokyo, was registering hundreds of people for their events. Checking those people in at the door was always time-consuming, particularly as some names were in English and others in Japanese, giving no good way to sort the list. Seeing this, my cofounders and I proposed building some software to send out QR code tickets. Back in 2008, that was still a relatively novel idea. Mobile Monday was happy for us to do it, so we quickly built a one-off solution for them. We went further than that though—we also personally manned the doors for their events.

I remember the first event where we checked in people using the new QR code tickets. It was quite rewarding to be able to tell the participants, “I built this.”

That sense of satisfaction wasn’t the only immediate payoff—because we got involved in the event, it also served as marketing for Mobalean, our technical consultancy. We made connections with people in the industry, and when they had projects related to mobile web development, they started coming to us.

Later, after we’d solved all of Mobile Monday’s event registration and ticketing needs, we thought other organizations might benefit from our work. We spent months rebuilding the tool to support multiple communities and launched it as Doorkeeper. Initially, though, it struggled to get users.

Meanwhile, we continued to volunteer with other communities we were interested in, such as Startup Weekend Japan and RubyKaigi, Japan’s (and possibly the world’s) largest Ruby conference. We didn’t directly ask those communities to use our software, but after we got involved with them, they decided of their own accord to start using Doorkeeper. Because these events made quite an impact on the tech community in Japan, they helped us grow immensely, leading Doorkeeper to become the most popular platform for developer events in Japan.

This wasn’t some sort of coldly-calculated strategy. I don’t think it would have worked if it had been. Sure, we knew that if we were running an event platform, it was a good idea to be involved with events, both to make connections and to personally experience our target audience’s problems. But our main motivation was just to help causes we believed in. I think our sincerity helped motivate the organizers to take a chance on a product that was still rather rough around the edges.

Business-wise, Doorkeeper was never a runaway success. We struggled for years to monetize it. The turning point was when we announced we’d go from being a freemium service to an exclusively paid one. A lot of organizers stopped using us, but enough continued that I could finally pay myself a decent salary from the product’s revenue alone. What’s more, there was almost no backlash against the move. I think this was because we’d been socially connected to the organizers for the entire history of the company, and they could see that we were being genuine when we said there was no other way forward. I’ve since sold Doorkeeper, but the lessons I learned still stick with me.

Speaking at community events

Over the years, I’ve delivered numerous presentations on software development and entrepreneurship at different community events. At least for someone like myself, who doesn’t regularly give talks, preparing for them can be quite time-consuming.

While I do believe it has helped keep my businesses in the minds of my target audience, I can’t think of a single example where giving a presentation led directly to a new lead.

The closest we came to that was after speaking at a Ruby event about a library for handling subscriptions with PayPal. As part of the talk, we mentioned a new side project we were working on, a web app to make Japanese invoices. One of the attendees, a prominent member of the Japanese Ruby community, tweeted about the new service, effectively launching it. That initial buzz and the SEO-friendly domain name (the Japanese word for invoice), helped us become one of the top search results. The project didn’t end up going anywhere as a business, though, and we sold it around a year later.

Starting your own independent community

In 2010, I created Tokyo Rubyist Meetup, Japan’s first English-language community for Ruby developers. The goal of the group was to bring together the Japanese and international Ruby communities, and I believe we’ve succeeded.

I think my efforts in organizing that community may have been why RubyKaigi chose to adopt Doorkeeper for their event registration. It also helped me connect with some of Mobalean’s best consulting clients. Finally—and most importantly—it indirectly led to developing TokyoDev as a business.

The CTO of a local startup said something like, “Paul, I’ve been having trouble hiring developers. I know you’re well-connected with the community. Could I pay you to help hire some?” That CTO, along with others in similar situations, became the first clients for TokyoDev’s job board.

Sponsoring existing organizations

The methods I’ve talked about so far involve a lot of time but no cost. Sponsoring existing organizations is the opposite: all it requires is money. The cost involved depends on the scale of the sponsorship, and the perceived value of the community.

When I saw in TokyoDev’s own data that women software engineers were being compensated worse than men, I wanted to do something about it. The simplest solution I came up with was sponsoring local communities that empower women in technology.

I sought out some local organizations and offered to sponsor them, including a few that had never had sponsors before. Since then, TokyoDev has also sponsored local tech conferences, including RubyKaigi.

These sponsorships have ranged from 100,000 yen (about 665 USD) on the low end to 1.5 million yen (about 10,000 USD) on the high end. In total, TokyoDev has spent over 8 million yen (about 53,000 USD) on sponsorships. Some of the big-ticket sponsorships have come with booths at conferences, which do provide new opportunities, but also additional costs—staffing the booths, airfare, hotels, etc.

The more expensive conference sponsorships have directly resulted in several new clients for the job board, but not yet in any additional revenue (because we take a success-based approach, and those clients haven’t made any hires through us yet).

I think for sponsorships to be really cost-effective, the target audience of the community must match your startup perfectly. Part of our challenge has been that many of these communities are primarily composed of Japanese software engineers, who aren’t the main users of TokyoDev.

Still, while these sponsorships haven’t been a cost-effective way of improving our bottom line, they have helped communities and gotten the word out, as well as offering some other knock-on benefits. One specific example is from 2024, when we gave away one of our sponsor tickets to a job-hunting developer, and they found a position through a connection they made at the conference.

Another example is “in-house.” One of our contractors introduced her daughter to a community we’ve sponsored, which helps young women get into software development. This inspired her daughter to become interested in programming and eventually to enroll in the program—something nobody in her family had anticipated!

Growing your own communities

While TokyoDev got its start thanks to local, preexisting organizations, we’ve also worked hard to create our own TokyoDev community, both online and off.

Running an online community

One of the first articles I wrote for TokyoDev was in response to a reader’s question about how I got my job as a developer in Japan. Over the years, I continued to receive emails asking for personalized advice. While I was happy to respond to people individually, it felt like that knowledge could also be of use to other people, so I started a forum using Discourse. Over the years I’d get questions on there, and occasionally someone else might chime in with their experience, but it was mostly just me responding to queries, and so wasn’t anything I’d call a “community.”

Along the way, one of our contractors pointed out that it would be nice to create a space where we could casually talk to our users. After he brought it up several times, I made a Discord community. This quickly took off, and currently sits at about 7,000 members.

Growing such a community hasn’t been without its challenges. The primary difficulty is moderation—no matter how we handle it, some users feel alienated. Have too soft a hand? The loudest voices win, driving away other valuable contributors. Reprimand or ban people? You make enemies out of what were once fans.

I can’t say I’ve always done everything right here, but one thing I did do right was bring on a moderator who cares about the community. Besides having someone to bounce ideas around with, it also helps to have an additional person enforcing the rules.

We have seen several benefits from our online community. At least one client made a hire through us that I can directly attribute to our Discord. That said, it’s the indirect benefits that have proven most valuable. For instance, our Discord helped us identify common challenges that developers face when relocating to Japan, making it a good source of topics for articles. We’ve also been able to ask members with unique experiences to write articles for the site, and their posts have been some of the most popular, such as one on Japan’s digital nomad visa.

Organizing offline events

As our Discord community grew, members started asking us to host offline meetups. We held our first one with a dozen or so people at a space we rented out ourselves, and provided soft drinks. This cost us about 30,000 yen (200 USD).

The meetup was a success and we continued to host. Eventually, one of our members offered to hold the meetups at their company. This change allowed us to grow the meetups further, and we started regularly maxing out their capacity with 40 or so attendees. It also meant we only needed to pay for the soft drinks, bringing our cost down to 5,000 yen (33 USD). Not only was that quite cost-effective, but the company hosting the event eventually became a client of ours.

We also started using our offline meetings to bring our clients together with the larger developer community, by holding collaborative events where the client gives presentations that are technically interesting to our audience. We’re careful to make sure these aren’t direct recruiting events, as I think that would drive away the very people our clients are looking to hire. By indirectly highlighting why it is interesting to work with them, however, our clients have been able to find more prospects.

Initially, we catered these events with pizza and soft drinks, which cost around 30,000 yen (200 USD) for a 40 person event. Since we haven’t been charging clients for organizing these talks, we began asking them to provide food and drinks instead.

As a result, these events have been win-win for everyone involved. Our clients get better branding amongst the developer community. Our community members enjoy interesting content and new connections. We establish stronger relationships with everyone involved.

In addition to this offline community for software engineers, we’ve also started to build another offline community for the internal recruiters using TokyoDev. We began by hosting small dinners with internal recruiters from three or four different clients. This gave them the opportunity to share about the challenges they faced hiring international engineers. Hosting such a dinner cost us about 30,000 yen (200 USD), and led one company that was on the fence to start using TokyoDev.

The dinners have proven to be a big success, and recruiters tell us they want to attend more, but there’s only so much time we can spend on them. To augment these networking meals, we’ve also started holding seminars on the topic of hiring engineers, so we can bring together a larger number of our clients at once. These don’t have quite the impact as the small dinners, but they are more scalable.

Conclusion

Communities have been key to all of my businesses. If my focus had been solely on maximizing revenues, I think the time and money I’ve spent on community involvement could have been better used elsewhere.

But the nice thing about being an entrepreneur is that you get to choose your own metrics for success.
For me, helping others has always been more important than personal profit. That’s why growing my companies through the community has been the perfect strategy.

And unlike with other business strategies, I can always feel good about what we accomplish. Even if an activity doesn’t create value for me personally, it does for someone else, so my efforts are never wasted.

If you’re an entrepreneur looking to combine business and the common good, I recommend finding ways to build your company through the community as well. Whether it’s by spending your own time volunteering, contributing part of your business’s revenues to causes you care about, or building up a community around your brand, all these avenues can help both your enterprise and the public at large.

More about the author

Photo of Paul McMahon

Paul McMahon

Founder

Paul is a Canadian software developer who has been living in Japan since 2006. Since 2011 he’s been helping other developers start and grow their careers in Japan through TokyoDev.

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