Today, February 5th, 2014, Basecamp turns 10. What an amazing ride it’s been. And since nearly all our business comes from word-of-mouth, we owe it all to our customers. We are so thankful for what you’ve helped us build.

And on this special day, we have a couple very big announcements that will define the future of our company. Click that link to find out what they are.

These are exciting times. Fifteen years into our business, we are so grateful for everyone’s support. It’s been such a blast. We’re looking forward to seeing what we can do together for the next fifteen.

Thanks for everything, everyone. Here’s to what’s next.

Bonus link: The original blog post in 2004 that launched Basecamp.

Wish to cancel your account? You may do so conveniently with an Online Chat Representative during 6AM-6PM Pacific Time, Monday through Friday. Or, you may call us after hours at (323) 817-3205.

Interesting use of the word “conveniently”. After days of missing the window, I finally hit it at the right time. Here’s how that convenient chat went:

• Please wait for a site operator to respond. You are currently number 1 of 1 in the queue. Thank you for your patience.
• You are now chatting with ‘Mike B.’
• David Hansson: Hi there, please cancel my account.
• Mike B.: Hello, David. Welcome to online Fax support. I am Mike Berry, your online Live Support Representative. How may I assist you?
• Mike B.: I am glad to help you. Could you please provide me your fax number, registered email address and billing zip code for verification?
• David Hansson: 555555555, [email protected], 99999
• Mike B.: I am sorry, the zip code provided is incorrect. Please confirm the 4-digit PIN or last 4 digits of the credit card on file.
• David Hansson: pin: 1111
• Mike B.: Thank you for providing your information. Please give me a moment while I pull up your account.
• Mike B.: In the meantime, please type the number corresponding to your reason for cancellation:
• Mike B.: 1) Moving to another provider
• Mike B.: 2) Bought a fax machine
• Mike B.: 3) Business or role changed
• Mike B.: 4) Short term project completed
• Mike B.: 5) Financial reasons
• Mike B.: 6) Problems with faxing or billing
• Mike B.: 7) Dissatisfied with quality of service
• Mike B.: 8) Too costly
• David Hansson: no need for fax
• Mike B.: David, as we’d like to keep your business, I can offer you a discount and also waive your subscription fee for 1 month.
• Mike B.: The discounted monthly fee would be $12.95 per month. This new plan includes 150 free inbound and 150 free outbound pages monthly.
• Mike B.: There is no contract and you may cancel anytime. Shall I switch you to this plan?
• David Hansson: no thanks, just cancel
• Mike B.: Alright.
• Mike B.: I completely understand your wish to discontinue. Conversely, May I offer you a waiver of 2 months on subscription fee so that you can re-evaluate your needs?
• Mike B.: There is no contract and you may cancel anytime.
• David Hansson: no thanks, just cancel
• Mike B.: Okay.
• Mike B.: If you wish to consider the offer, I can set your account to auto-close at the end of the 2-month waiver period, wherein you need not have to contact us again for cancelling the account.
• Mike B.: However, if you choose to continue, you would need to get back to us so that we could remove the auto-closure of your account.
• Mike B.: Would that be fine with you?
• David Hansson: nope, canceling now is what I would like
• Mike B.: Okay, I will go ahead and cancel your account.
• Mike B.: An e-mail confirming that your account has been canceled will be sent to your registered e-mail address.
• Mike B.: Is there anything else I may assist you with?
• David Hansson: that’s it, thanks
• Mike B.: Thank you for contacting online Fax support. I hope you found our session helpful. Goodbye and take care.
• Chat session has been terminated by the site operator.

I hardly need to add commentary to illustrate just how ridiculous and unfair this process is, but I can’t help myself. If you allow a customer to signup 24/7/365, you should damn well allow that customer to cancel their service 24/7/365. If you allow them to signup self-service, you should damn well allow that customer to cancel by self-service. Anything less is just crummy.

(I wish credit card companies would help enforce consumer protection against this: Unless it’s as easy to cancel as it is to signup, chargeback is automatic).

Chip Pedersen has been in tech for more than 25 years, 18 in the game industry. He’s led teams at Microsoft and Activision; done R&D for Apple; managed projects for huge brands like DreamWorks, MTV, Discovery Channel, History Channel, the MLB and the NHL.

You should probably hire him.
The catch is that he lives in Minneapolis, and he’s not going anywhere. “I’m just a Minnesota kid who wants to stay here,” he says. “All my three sons were born in different states. We moved back to Minnesota where we’re from. We like it here. We don’t want to go anywhere.”

“I have had offers to return to the West coast, but I just don’t want to do that.” He says his old Silicon Valley pals keep cajoling him: “‘come back out West; we’ll hire you right now!’ and my wife’s like, ‘no!’ We just celebrated our 25th wedding anniversary, and she said, ‘I’ve moved for you all these years, now can you do it for me and stay home?’ and I said, ‘sure.’”
So home they’ll stay. Pedersen is currently a gun for hire (with his company Golden Gear Consulting), and he likes it that way — he just wishes more businesses were open to the idea of remote work. “You can get great talent and let them be where they are,” he says, “and not have to put up with the cost of living in San Francisco.”
Eric Fleming, a Ruby and JavaScript developer in Jacksonville, Fla., can identify with that. Another father of three, he doesn’t want to relocate for work either. “We like the kids’ school,” he says. “I moved around when I was a kid a lot, and I always thought that it would be great to just settle down somewhere. We’ve established our roots here. We like where we live. The kids have friends and that’s real important for me, to be able to let them have some continuity in their lives.”
Most of the recruiters and hiring managers that reach out to Fleming want him to move, though he’s confident he does a better job working from home. “I can concentrate on my work and there’s no one here to distract me from that,” he says. “There’s no one coming over and tapping me on the shoulder and asking me about something. They may send me a message on Skype or Google Hangouts or something like that, but I can ignore that easier than I can someone coming into my personal space.”
Fleming recently tweeted about being in the market for a new position if anybody has a need for an experienced developer. Predictably, the first reply came from an IT recruiter: “Eric, would you consider moving to Austin or are you looking to remain in J-ville?”
That recruiter — Mark Cunningham, owner of The Bidding Network in Austin — says zero percent of his clients (primarily startups) are open to hiring remote workers. “If we’ve got some crackerjack Java developer who just has something amazing but he lives [20 miles away] in Cedar Park and the startup’s located downtown, we might work something out,” Cunningham says. But for the most part, his clients want to take advantage of the chemistry that results from everyone working in close concert.
“They worry about the loss of synergy, and the collaboration, and then the fires that are stoked from elite software engineers and elite professionals being together face-to-face and what comes from that,” Cunningham says. “That’s where they’re hesitating.”
Fair enough — there’s no denying there are advantages to having everyone in the same room. But when you stack the advantages that come with putting local heads together against the advantages of hiring the best heads from everywhere and collaborating remotely … well, it’s fairly clear where we stand on that.
“Give people the flexibility to work where they feel more comfortable working,” Fleming says. “They’re going to give you better results. It’s better for the company overall.”
Pedersen feels that for the more established companies he’s worked with, the hesitation comes from being stuck in a “face time = work time” paradigm. If you aren’t working onsite, “they think you’re goofing off,” he says.
“I’ve definitely worked at a number of companies where it was about the time you spent there. You may not have been doing much, but you were there. Microsoft was a little bit like that … I had a futon in my office and I would sleep there.”
What will it take for that cultural shift to happen, for companies to begin to allow people to work from wherever they like as long as the work is getting done? A leap of faith, Pedersen says.
“Do a small test,” he suggests. “Try it out. If you can’t find the person you’re trying to hire — if you’ve been looking forever to hire somebody and you can’t find them because they’re not in your region — look for a remote worker. You’re probably going to find an excellent person to meet your needs and get your stuff done. Probably within your budget and faster. Take those leaps when you see the opportunity.”
It comes down to results, Pedersen says. With the teams he manages, he does his best to treat everyone like adults and focus on the work itself. “If they’re getting their stuff done … I’m staying with that person. They got it done last time; they keep getting it done. I don’t care if they live in Venezuela; they’re getting it done.”

The natural tendency of growth is towards specialization. When you only have a few people, they must by necessity do everything. When you have more people, there’s enough room and slack to let people build specialization kingdoms that only they have the keys to. Don’t be so eager to let that happen.

Specialization might give you a temporary boost in productivity, but it comes at the expense of overall functional cohesion and shared ownership. If only Jeff can fiddle with the billing system, any change to the billing system is bottlenecked on Jeff, and who’s going to review his work on a big change?

But it goes even deeper than that. For example, we have all programmers work on-call as well. Everyone gets to feel the impact of customers having trouble with our code (this is on top of Everyone on support).

This really came to the test lately when we started working on a number of iOS and Android projects. Should we hire new specialists in from the outside or should everyone do everything, and thus have our existing team learn the ropes. Well, in that case we ended up doing both. Hiring a little because we needed that anyway, and getting someone with some experience, but also choosing to invest in the existing team by having them learn iOS and Android from scratch.

Good programmers are good programmers. Good designers are good designers. Don’t be so eager to pigeonhole people into just one technology, one aspect of your code base, or one part of your business. Most people are eager to learn and grow if you give them a supportive environment to do so.

Employee benefits for technology companies are often focused around making people stay at office longer: Foosball tables, game rooms, on-site training rooms, gourmet chefs, hell, some even offer laundry services. We don’t do any of that (although we do have a ping-pong table in a back room that gets wheeled out for our bi-yearly meetups).

Instead we focus on benefits that get people out of the office as much as possible. 37signals is in it for the long term, and we designed our benefits system to reflect that. One of the absolute keys to going the distance, and not burning out in the process, is going at a sustainable pace.

Here are the list of benefits we offer to get people away from the computer:

• Vacations: For the last three years in a row, we’ve worked with a professional travel agent to prepare a buffet of travel packages that employees could pick from as a holiday gift. Everything paid for and included. Having it be specific, pre-arranged trips — whether for a family to go to Disneyland or a couple to tour Spain — has helped make sure people actually take their vacations.
• 4-day Summer Weeks: From May through October, everyone who’s been with the company for more than a year gets to work just four days out of the week. This started out as “Friday’s off”, but roles like customer support and operations need to cover all hours, so now it’s just a 4-day Summer Week.
• Sabbaticals: Every three years someone has been with the company, we offer the option of a 1-month sabbatical. This in particular has been very helpful at preventing or dealing with burnout. There’s nothing like a good, long, solid, continuous break away from work to refocus and rekindle.

To come up with the best ideas, you need a fresh mind. These travel and time-off benefits help everyone stay sharp. But it goes beyond that. Even the weeks when people are working full-on, we offer benefits focused around keeping everyone healthy in other ways too:

• CSA stipend: We offer a stipend for people to get weekly fresh, local vegetables from community-supported agriculture. Eating well is good, cooking at home is good, doing both is great.
• Exercise stipend: Whether people want to take yoga classes or spend money on their mountain bike, the company chips in. Eating healthy goes hand-in-hand with getting good exercise. And we sit down for too much of the day as it is, so helping people be active is important.

These benefits form the core of our long-term outlook: Frequent time to refresh, constant encouragement to eat and live healthy. Pair that with the flexibility that remote working offers, and I think we have a pretty good package.

It’s always a real pleasure and a proud moment when our internal Campfire lights up with an anniversary announcement. Like Jeff celebrating 6 years this month, Sam celebrating 8 years and Ann 3 years last month.

We ultimately want 37signals to have the potential of being the last job our people ever need. When you think about what it’ll take to keep someone happy and fulfilled for 10, 20, 30 years into the future, you adopt a very different vantage point from our industry norm.

Name: Chris Hoffman
Title: Co-Founder, Director of Marketing Strategy
Company: It Collective
Based in: Colorado Springs, Colo.
Established: 2012

What does your company do?
We offer film production and content marketing strategy services. On the marketing strategy side, we work with clients to identify key stories and messages that will resonate with and be shared amongst a target audience — then we help them tell those stories through the creation of that content and the execution of a marketing strategy. On the film side, we produce everything from commercial spots to short films, and just recently finished our first feature-length production — a live concert film for Gungor, an incredibly talented band who have recently been nominated for a couple of Grammys.
How many people work for the company, and of those, how many work remotely?
We are 100% remote. Our business model is project-based, so our team changes in size depending on the number and types of projects we have in house. We went the contractor direction instead of hiring full-time employees for a number of reasons. Primarily, it allows the flexibility to resource the ideal skill sets for each project. Secondarily, hiring individuals who prefer working in a contract setting help us filter out the people who require micro-management — in other words, people who are not suited for a remote work system. The people we hire are used to managing their own time and workflow. We have around 10 team members that we work with on a regular basis.

Did you start out as a remote company?
We did, and I’d love to say that we had some great strategy behind that decision. In reality, it was made because we didn’t have the startup capital to pay for an office space. We strongly believe in the concept of bootstrapping, and have gotten off the ground without taking on any debt or external capital investment.
We’ve found that we have a great love for hosting face-to-face meetings in coffee shop or home office settings, and that our clients often love meeting in those settings as well. We recently conducted a major client review meeting on a film project in the living room of Andy Catarisano — our Co-Founder and Director of Film Production. We picked apart the final edits over homemade popcorn and cookies. I think our clients loved the experience as much as the final product. It was significantly more effective than presenting in a polished boardroom.
When we need a larger space we rent the tricked-out conference room of a local co-working establishment. Obviously there are occasions when the home office and local Starbucks won’t work, and we don’t pretend that our system will work for everyone. We’ve found a way that works for us to do business without a set physical space, and we aren’t in a hurry to change that.
What challenges did you face in setting up as a remote company?
One major challenge (for those of us that came from a traditional corporate environment) was overcoming the mentality of a 9-5 workday that had been engrained more deeply than we realized. For me personally, it has taken a very intentional effort to ask myself the right questions about my daily activities. I’ve had to learn to look at the day through the lens of, “What is the most high-impact use of my time?” As opposed to, “It’s 3 p.m. — I should be at my desk.”
U.S. work culture has conditioned employees to feel like they are fulfilling their duty to the company they work for by being in their seats for 8 hours in a day. In reality, those employees may or may not be producing anything of value. The amount of time spent at a desk is completely irrelevant to the value and quality of work, and that has been a tough lesson to learn.
What do you see as the major benefits of being a remote company?
The first major benefit is the effect it has on morale, and in turn, the increase in quality of work and dedication to the company. Here is one very practical example of this benefit: Commute time.

I’d love for someone to give me a reason that justifies not giving one of your staff 200 hours of their lives back each year in exchange for zero productivity loss.

Think about how ridiculous it is to demand that an employee sit in rush hour for an hour or more each morning and evening, just to be in by 9 a.m. and leave at 5 p.m. How simple of a switch would it be to allow that team member to work from home until 10 a.m., then arrive at the office in 30 minutes or less with no traffic? That switch translates to well over 200 hours of time given back to that person every year to do as he or she pleases — to spend extra time with family, invest in a personal project, or just take some additional space for decompression.
I’d love for someone to give me a reason that justifies not giving one of your staff 200 hours of their lives back each year in exchange for zero productivity loss. An unwillingness to discuss these types of changes to a work schedule that provide such tangible benefits is just plain arrogance on the part of a management team.
A second huge benefit is the expansion of the talent pool that it provides for us. Instead of being limited to the labor pool within 100 miles of our location, we literally have worldwide talent at our fingertips. We regularly work with a film colorist that lives in Sydney, Australia. The quality of work that we received was vastly superior than anything within our immediate geographic area.
One really interesting thing about working with international teams is that you have almost 24 straight hours of productivity at your disposal. We’d do work in the U.S. on the project, meet briefly at the end of the day with our team member in Sydney before signing off, and then turn it over to him to continue the work. It’s an amazing experience to go to bed, get a great night’s sleep and wake up to a project that is further along than when you left it.
The other really major benefit for us is providing the freedom to tailor the work environment to the type of work being performed. An example of this that really stands out to me is on one of our recent projects, which was a feature-length film. Editing a 90-minute film together is one of the most incredibly detailed processes I’ve ever seen, and it requires a huge amount of focus and precision. We worked an amazing team of editors for this project — the kicker was that they preferred to do their editing nocturnally, from about 10 p.m. to 8 or 9 a.m. The world is quiet then — there are zero interruptions and that was their period of ultimate creativity and effectiveness. A remote work environment allowed us to say yes to that request, and the results were outstanding.
Any advice for other companies who are considering going remote?
The thing about remote work is that it magnifies existing dysfunction in the workplace. An organization with a highly functional team and a deep understanding of role clarity and how to work together in an effective manner is going to have a much easier time transitioning to a remote work structure. A dysfunctional team is going to have a much more difficult time making that leap, because the freedom of working remotely magnifies those inefficiencies.
A physical office space has long been used as a safety net for managers to push the the messes of their team dynamics under the rug as opposed to addressing them. Being able to walk down the hallway every 15 minutes to micromanage employees can (sometimes) cover up poor hiring decisions. It can compensate for a failure to plan. It can also provide a false sense of security for a manager who needs to micromanage to feel effective in their position. Working remotely immediately removes those safety nets and exposes the true functionality of a team. If you’re thinking about making the leap to a remote work environment, it’s important to ask these questions about your team and be very honest in your answers.
Visit It Collective.

Back in June we launched Know Your Company, a tool for helping company founders, owners, and CEOs get to know their companies again.

A few hundred one-on-one demos later, we’re about to hit our 100th paid customer.

Because of Know Your Company, thousands of employees have a louder voice, and a hundred company owners have bigger ears. Employees are sharing things they’ve never been asked about before, and owners are hearing things they’ve never heard before. New insights come weekly, and more feedback is flowing in both directions. Things are changing for the better at Know Your Company companies.

Back of the napkin financials

From the business side, in just six months, Know Your Company has booked $390,000 in revenue (and is profitable). The pricing model is $100 per-employee one-time (once you pay for someone you never pay for them again). The smallest customer has 16 employees, the largest has 105. As existing customers grow or replace employees, about 20 new employees are added to the system every week. Customer retention is holding strong at 99% (unfortunately we’ve had one cancellation).

Referrals are healthy too – we get a fair number of emails from CEOs who’ve heard of Know Your Company from existing Know Your Company customers. Even more promising, we’ve been hearing from CEOs who heard about Know Your Company from their employees!

Growing up

What started as a hunch, then launched as an internal experiment, before ultimately becoming commercial product, has blossomed into a thriving business.

In the spirit of continued experimentation, we’re about to take it up a notch and try something we’ve never done before: We’re spinning off Know Your Company into its own business.

In January 2014, Know Your Company the product will become Know Your Company the company, separate from 37signals.

Meet Claire Lew, the new CEO of Know Your Company

The new company will be co-owned by 37signals and Claire Lew. Claire will be the CEO and run all day-to-day operations. We’ll be on the sidelines purely as advisors, ready to help if called upon. If all goes well, Claire will ultimately own more of the company than 37signals will.

So who’s Claire? Claire’s someone we’ve had our eye on for a while. They don’t come much sharper (and nicer!) than Claire. In fact, we originally contemplated hiring Claire to run Know Your Company from the start, but things just didn’t come together.

Claire went off to start ClarityBox, a consulting practice aimed at helping owners understand what their employees really thought. You can watch her talk about it here:

ClarityBox’s mission was similar to Know Your Company. We obviously saw the same kinds problems out there and wanted to help solve them in similar ways.

So once it was clear that Know Your Company had legs, and that we wanted to spin it off into its own company, Claire was the natural match to run it.

I pitched her the idea and she was into it. We hammered out a deal and related details in a couple of weeks and signed the formal agreement yesterday. We’ll be transitioning the company and product over to Claire this month, and she’ll run it completely starting in January. I’ve heard some of her initial ideas so I’m excited to see where she takes it.

Know Your Company

So if you’re a founder, owner, or CEO of a company between 25 and 75 people, and you feel like you don’t know as much about your company as you used to, it’s time to get to Know Your Company again. Claire will show you how.

Name: Christopher Johns
Title: Commercial Director
Company: Aardvark London
Established: 1996
Number of employees: 17
Basecamp customer since: 2004

Tell us a little about Aardvark — what kind of work do you do?
We’ve got two sides of the business. One is the digital agency where we design, build and support the digital experiences for clients. (See examples here.) The other sides is our eCRM platform called Nudge. That’s the back end, effectively, for all our client websites. It manages customer inquires, email marketing, customer communications and customer database and behavioral tracking as well.

You’ve been using Basecamp for a long time, more than 9 years. Do you remember how you first found out about it?
There had been quite a lot of buzz … I think Mike Arrington of TechCrunch had written something about Basecamp. At that time, we were growing and looking for ways to manage our client expectations and their projects. It seemed like a no-brainer, an easy way for everyone to track what’s going on and get customer buy-in as well.
What kinds of problems were you having with managing client expectations?
In what we do, there’s a lot of going back and forth with clients, and various people within various positions. So you might be speaking to the digital marketing person, the head of operations, the head of marketing. Historically, you would have done things via email. You would have sent someone a concept or something, and said “What do you think of this concept?” You’d CC three people on that email, and have three people coming back with comments, some of which are conflicting. Then you start replying to those and indenting your comments on their original comments. Pretty soon, you know what it’s like; everything gets lost. The original sort of thrust, the momentum, of the project gets bogged down in trying to manage the communication between you and these disparate parties.
Clients may not be as technically proficient as you want them to be. My son is 12 and my youngest is three. The three-year-old is very, very capable of using my iPhone and my iPad and doing all of that, whereas my mother is not.
So your clients tend to be older or less technologically adept?
Some of them are, some of them aren’t. What they don’t want to do is have to learn a whole new thing just to work with us. Our job is to make their lives easier. If they have to go and learn a whole new thing in order to just communicate, you’re off to a bad start to the relationship.
Basecamp is very simple. They don’t have to go and log into anything; all they do is reply to an email, and post their comments. And being able to track all those comments coming through, from all of those disparate sources … you’ve got a nice clean audit trail so that if anybody questions it at a later date, you can say, “well, have a look at this. This is what you said on this date.”
Does that happen?
Yeah, it does. Not that frequently.
What kinds of projects have you managed with Basecamp?
We’ve just done a project for Transport for London, the authority that runs all the underground for London and the buses, Boris Bikes, and the river buses as well. We’ve just built a digital sign project for them — you’ll see signs all over London now with these maps on them that have real-time bus departure information overlaid, that’s localized to the location of the digital sign.
With digital signs for Transport for London, it’s about thousands of people all in one location, and how they’re all interacting with that information, and how that sign helps guide them to their chosen destination. So for example, you can’t use colors on a digital sign to indicate a particular stop, because people would be looking around them in the bus station looking for yellow, and that yellow doesn’t exist.

In London, there are literally millions of people who use the buses every day. Millions of people need to know where to go, and digital signs are helping them in that process. It’s a very interesting user experience development process to try to communicate to people via digital signs that are in the real-world environment that have to show complex data and make it simple for all these people to find where they’re going.
What’s your work culture like?
We’re a collaborative culture; we’re a small team. Everyone brings something to the party, and it’s about the respect for what each individual brings to the party that gets the most out of every person working on the team. We’re not a personality-led business. People don’t come to us and say “I want to work with Aardvark because Chris is there.” They work with us because they see the output that we have as a team and they want that for themselves.
I understand you just moved into some new offices?
We are moving, but it’s been delayed. It takes between 60 and 90 days to get fiber installed. We’re moving closer to Transport for London and a couple of our other clients.
We’re changing how we work as well. We just instituted an opportunity for the staff, where they can go and work 25 days per annum from wherever they want to. We have one guy who spent two months earlier this year working out of Peru. If you want to work from home for one day, that’s fine. Basecamp is one of the systems we use that will enable that process to be more effective. At the moment I live in the city with my wife and children and dog, and we’re hoping to move out of London a bit to get a little more greenery. So it’s actually going to help me as well.
Why 25 days in particular?
It’s pretty much an experiment to start with; the 25 days is a pretty arbitrary figure at the moment. If everything goes well, if people like it and they’re motivated and they feel good about the whole thing, productivity is shown to be positive, I don’t see any reason why we couldn’t do more.
Visit Aardvark.