Today our first five customers started using Know Your Company, our newest product. We’re hoping to roll out around five new customers every Monday for the foreseeable future.
I thought this was a great time to talk a bit about how we’re building Know Your Company. Not the tech, specifically, but the approach.
From the start, I wanted to approach the development of Know Your Company as if we were starting a separate company inside 37signals, not just building another product at 37signals.
So I went back to 2003. That’s when we originally built Basecamp. Basecamp was basically a new business inside 37signals. I looked back at how we did it.
We had a small team of four – two designers (me and Ryan), one programmer (David), and one person who could help with a variety of things (Matt). We were building something to scratch our own specific itch.
We didn’t have much tech to lean on. We didn’t have Rails, we didn’t have a centralized billing system, we didn’t have a centralized log-in system, we didn’t have much experience launching a product with a new business model (subscription pricing), we didn’t have a server farm (we just had a shared server slice on another company’s machine), etc.
Basically, a lot was very new to us, and the newness was invigorating. It allowed us to approach problems objectively rather than fitting our problems into solutions we’d already built before. Think of it more as a bespoke suit than something off the rack.
Basecamp was a bespoke suit, but just about everything we’ve done since then has been trying to fit into Basecamp’s clothes in one way or another.
I wanted to get away from that way of thinking with Know Your Company. It’s just too easy to continue to lean on the things you’ve done, the decisions you’ve made, and the infrastructure you’ve already built.
So here’s what we’re doing.
We’re starting with a small team of four. Me and Jonas on design. Trevor on programming. And Dan as the multipurpose jack-of-all-trades. I’m also doing sales/demos, which is something we’ve never really done before.
Further, just like when we launched Basecamp, I did all the customer support for the first year or so. That’s what I’ll be doing with Know Your Company too.
As for billing, we’re not using Queenbee, our centralized billing system that powers Basecamp, Highrise, Backpack, Campfire, and a variety of other things we sell. Instead, we’re building a bespoke billing system from scratch. Just what we need, nothing we don’t.
This way we don’t have to compromise a business model approach because our billing system is only set up to do things one way. If we have a different idea for how we want to bill customers (or accept payments), I don’t want to be hamstrung by old decisions. I want to have the freedom to make new decisions.
Queenbee also has a bunch of admin tools built in so we could comp accounts, change ownership of an account, look up a customer and update their information, etc. We’ve left that all behind with Know Your Company. Know Your Company has its own custom admin built right into the product. This way we can build specific admin tools to onboard new customers, update accounts, generate invoices, and everything else that’s unique to Know Your Company.
Another thing we’re doing differently this time around is sales and setup. Our default position when building new products is to make them self-service, just like Basecamp’s been since day one. No interaction with us is required to sign up. Just click a button, pick a plan, sign up, and you’re off and running.
That model has obviously been very successful for us. No question about that. But let’s learn something new. Let’s get a feel for what the opposite approach is like. What if we were full-service instead of self-service? What if we were very hands-on, rather than completely hands-off?
So that’s what we’re doing with Know Your Company. There’s no self-service sign-up. If you want to use Know Your Company, we have to give you a personal demo first. Want to sign up? We’ll walk you through it step-by-step. We’ll even load up your employees for you so you don’t have to do any work. And we’ll also populate your account with a specific set of questions so you don’t have to think about what to ask your employees if you aren’t sure what to ask.
Isn’t full-service harder, more time consuming? Yes it is. And wow it’s been worth it. I’m getting to have a nice conversation with every customer we have. I’m getting to learn a lot about their companies, their struggles, and their goals. This is very healthy for us. The product is going to be way better for it – especially in the long-term.
The business model is all new, too. Instead of defaulting to our Basecamp-famous monthly subscription fee, we’re treating Know Your Company more as a one-time investment in each employee rather than an ongoing recurring expense. So instead of charging a monthly/annual fee, we’re just charging $100 per employee one-time. Once you’ve paid $100 for an employee, you never have to pay for them again. You can use Know Your Company with them for as long as they work for you.
Now, we’re not entirely free from the past. There are still a few things we’re leaning on because they aren’t hampering our flexibility.
For one, we’re using 37id – our centralized sign-in system. Know Your Company customers can sign in with the same username/password they use for their Basecamp accounts. That’s easier for them than having to sign up with another username/password.
We’re also using Rails, which we didn’t have the luxury to use when we built Basecamp. And we’re leaning on our sophisticated server infrastructure and the things we’ve learned about email, too. But the load we’re putting on the system is barely a pimple so I don’t feel so bad about that.
And of course we have the reputation and trust build up behind 37signals over the last 14 years.
But as far as our development approach goes, this feels the closest to the feeling we had when we were building Basecamp nearly 10 years ago. Lots of new things, lots of new approaches, a feeling that we can build whatever we need rather than fitting new ideas into old decisions.
If you’re interested in becoming a customer, please review the introduction letter I wrote. If it resonates with you, and you fit the profile, drop me an email and I’d love to show you around and maybe even get you started.
Casper
on 17 Jun 13You guys never cease to inspire. Thanks.
Mark L
on 17 Jun 13The timing of this blog post is ironic for me.
It was just this morning, while on this blog, I saw an advertisement (on The Deck) for Zoho.
I clicked on the Zoho link and on their homepage was their Zoho Pulse product.
http://www.zoho.com/pulse/
Zoho Pulse appears to do what this “Know Your Company” app will do when it’s released.
So far, I’ve really like the Zoho Pulse product.
Curious to see how 37signals new Know Your Company product compares to Zoho Pulse.
Jason Fried
on 17 Jun 13Mark: Know Your Company is nothing like Pulse. They appear to be very different products.
Mark L
on 17 Jun 13@Jason Fried
Could you elaborate on that. How so?
Right now, all I know about Know Your Company is from reading a few blog posts here (37svn) and what’s on https://knowyourcompany.com/
Maybe I missed something really important about Know Your Company and I’m genuinely interested in understanding what that is.
So, more you can talk about what Know Your Company actually does, that’s not on https://knowyourcompany.com/, the better.
Thanks and interested in hearing more from you on how this product differs.
Jason Fried
on 17 Jun 13Mark, what I can tell from the Pulse site, the focus is entirely different. KYC has nothing to do with hardly anything Pulse is doing. They are radically different products with very different approaches and apparent outcomes.
Aaron M. Renn
on 17 Jun 13“Know Your Company” sounds oddly like the vaguely Orwellian “Know Your Customer” anti-money laundering regulations for banks.
Mark L
on 17 Jun 13@Jason Fried
Let’s completely forgot about Zoho Pulse (or any other product/service) from this conversation … and let’s only talk about Know Your Company.
I’ll error on the side of ignorance and non-understanding, for the benefit of the doubt, and as such – can you maybe explain again what Know Your Company does?
Thanks. Genuinely interested to hear more.
Angus
on 17 Jun 13@Mark: Pulse seems to be in the vein of Yammer, Chat which all seem like derivative of Campfire which is has been around forever. I’m punting Know Your Company is more targeted at culture and sensing the vibe and ideation for a disconnected cheeses.
Hat tip for trying a new business model.. Feels very full circle in world where everyone is trying to move to the subscription model you guys forged the way on..
Ed
on 17 Jun 13I am wondering about the name. Is that the final brand name of the product? It seem very literal, specially in comparison to your other products.
E.
David
on 17 Jun 13Jason, I see one time pay as serious weakness and perhaps lack of confidence into value that service provides. To my way of thinking, if service provides continuous value it demands continuous payment. Software marketplace is littered with the companies that have promised free updates for lifetime and found hard way that such is not possible.
I started my business which was adding value to existing customers every single month but I have not charged for that value. Learned lesson hard way that I was leaving lots of money on the table and not only that, by leaving that money on the table I was doing disservice to customers that relied on the value product provides for their business every day since I could not fund it properly.
I know you can always kill this product if it does not make money for you, but if you have ongoing cost to deliver the product you have to have ongoing influx of cash from existing and new customers.
Now that I wrote all that, I think I am getting what your angle perhaps is. You charge $100 per employee. If company churns employees relatively frequently there is your recurring revenue. Maybe that the plan…
Sandra
on 17 Jun 13We’ve been doing a lot of research about this lately. It’s nice to learn even more.
[email protected]
Jason Fried
on 17 Jun 13David, the “recurring revenue” part is new employees and growth. As companies grow and churn, they’ll add new employees to the system. If the tool is providing lasting value, they’ll continue to invest $100 in each new employee. That aligns our interests very closely.
Jason Fried
on 17 Jun 13“I am wondering about the name. Is that the final brand name of the product? It seem very literal, specially in comparison to your other products.”
Yes, that is the final name. It’s another example of us trying something new with product naming. I was inspired in part by You Need A Budget http://youneedabudget.com
Michael
on 18 Jun 13As someone who works at a company with ~15 people that is still on the same page, I really like that I’m disqualified from kicking the tires instead of getting real work done. The refusal to sell to anyone but successful business owners who actually have a problem and a budget is refreshing.
That said, I’m of course dying to know about some of the particulars. :)
Anonymous Coward
on 18 Jun 13Wow. I’m impressed, regardless of the product. The process here is inspiring to me. What got us here won’t get us there.
Anonymous Coward
on 18 Jun 13DHH isn’t involved?
Jason
on 18 Jun 13I have to say that I agree with Jason Fried… Zoho Pulse just seems like another enterprise social network, where KYC appears (from the outside, at least) organized around getting the owner/CEO of a company a feel for the people side of their company, connecting them more directly to more people.
The chances of Pulse making direct improvements in your company seem small, where improvements due to KYC seem much more likely.
Tom
on 18 Jun 13Jason,
Reading the introduction, I immediately thought of what a colleague and I have envisioned and have been trying to find/create for years as a way for a teacher to truly come to know his or her students. Substitute “student” for “employee” and “classroom” for “business” or “company” in your Core Outcomes and picture the “I” being, instead of the CEO, the teacher. Powerful stuff.
There are and have been systems that could be made to do pieces, but what you describe comes closer out of the box (or so it seems) than anything I’ve seen to what he and I have envisioned.
Jason Fried
on 18 Jun 13“DHH isn’t involved?”
DHH is involved in our own Know Your Company account, but we don’t all work on all projects together at the same time. So DHH is working on some stuff I’m not involved with, and I’m working on some stuff he’s not involved with. Very par for the course when there’s a lot of stuff going on at once.
Bob
on 19 Jun 13Our organization is looking for a common discussion portal, using which we can collaborate, brainstorm. We are planning to trial the Zoho Pulse thing. However, before we test our waters there, we want to know about this KYC from you.
What does KYC try to achieve in an organization.
Wahid
on 21 Jun 13We are a 50+ people custom software company and we have been handling the “know your company” type of thing over the last nine years with all sorts of hacks – ranging from doing stats analysis in participation in events to logging and categorizing comments in our newsgroup. We think it kind of works, we’ve written about some of the hacks in our blog. Here is one that we know works for us: Quantifying culture
But really excited about this new product from you guys. There is an implicit trust about your ideas and products on my side, being a basecamp user from 2005 on dozens of client projects. Don’t know if you will be including our kind of techniques, but we know from experience some our stuff works great in keeping track of health of the work environment.
This discussion is closed.