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When opening the wallet becomes a no-brainer

Matt Linderman
Matt Linderman wrote this on 11 comments

According to this Economist article, the two most notable paywall success stories are financial publications:

The two most prominent are the Financial Times, which lets web users view just a few articles each month before it asks them for money, and News Corp’s Wall Street Journal, which charges for much business and finance news.

In Slate, Jack Shafer tries to explain why only a few sites thrive behind paywalls:

Not all successful paid sites are alike, but they all share at least one of these attributes: 1) They are so amazing as to be irreplaceable. 2) They are beautifully designed and executed and extremely easy to use. 3) They are stupendously authoritative.

Good points to be sure. But maybe overlooking a more important lesson: The easiest way to get people to pay you money is when they think they’re getting something in return that will help them make more money.

FT and WSJ succeed because of the kind of information they deliver: financial analysis and info that enables its readers to invest wisely, manage a business better, and/or improve the bottom line.

It’s a lesson for anyone trying to figure out what to sell. Help people make more money and then forking over cash to you becomes a no-brainer. It’s not the only way to sell something. But it’s probably the easiest.

“No one has the right to spend their life without being offended.”

Jason Fried on Mar 31 2010 31 comments

Shoes and software

Jason Fried
Jason Fried wrote this on 53 comments

Yesterday, during an interview with Andrew Warner at Mixergy, I spoke about my early work experience bagging groceries, selling shoes, pumping gas, etc. There’s nothing particularly unique about these jobs – they are common jobs. But they taught me some important lessons about people, how they decide what to buy, and what really matters to them.

Selling shoes (and tennis rackets) twenty years ago reminded me of selling software today. The shoe world and tennis racket world are very much like the software world. Manufactures pitch features and technological advantages but customers judge the products in an entirely different way.

When I worked at this golf and tennis pro shop selling shoes and rackets, brand reps would come by and tell the staff about the latest products. They’d explain the new EVA midsole in this shoe, and the Goodyear rubber outsole in that shoe. They’d talk about flex grooves, heel notches, cushioning systems, etc. They’d talk about graphite frames, widebody rackets, sweetspots, etc. On paper these were strong selling points, but in the store very few people cared.

Here’s how most people found a shoe and decided if it was right for them. They’d walk up to the pegboard wall where the shoes were lined up. They’d pick up a few, spin ‘em around, and put them back. Then they’d hone in on one of them because they liked the way it looked. They’d ask for their size, I’d bring it out, and they’d try it on. They’d jam their thumb between their big toe and the tip of the shoe to see if it fit. Then they’d maybe bounce around a bit or “hard walk” to see how the cushioning felt. Then they’d look in the mirror to see how it looked. They’d they’d buy it or repeat the process with another shoe.

The technology didn’t matter. The number of flex grooves didn’t matter. The chemical composition of the insole, midsole, and outsole didn’t matter. What mattered were the absolute basics: Do I like the way it looks, does it fit, and is it comfortable. Sold. All the other things that we were told about the shoe could never represent themselves in a 3 minute try-on anyway. Sole durability didn’t matter now. All the soles were equally durable during a 3 minute walk around on a carpeted store floor. Any talk about a midsole went right over their head. All they knew was “this felt good” or “this is too narrow” or “this rubs my big toe” or “ooh, this is comfortable.” I could explain this stuff all day long, but their realization always trumped my explanation.

This isn’t to say that some people didn’t take the features and technology seriously, but it is to say most – nearly all – didn’t. They didn’t care about the same things the manufacturer cared about. And they certainly didn’t see the world the same way the brand rep saw the world. The customer wanted the simple things done well. Their evaluation consisted of a few key things: look, fit, and comfort. And that’s it.

The same thing was true for tennis rackets. We were armed with every last fact about every last racket, but here’s how people picked a racket: 1. Their friend or tennis pro told them to buy it, or 2. They picked it up, did a few fake swings, bounced their hand off the strings, pictured themselves holding it on the court, and either bought it or repeated the same test with another racket. Often times they’d ask if it came in another color. No one asked about the size of the sweetspot, and very few cared about fiberglass vs. graphite. Some did, most didn’t. They cared about how it looked, how it felt, how much it weighed, and if their friends would approve. I could move people to this racket or that racket with some fancy facts, but most people made up their own mind based on a set of pre-determined criteria that had more to do with their own preferences than the brand’s preferences.

I saw the same thing when I worked at the grocery store. From the types of labels people read to the number of bags they wanted to take home. People would opt for clarity, comfort, and convenience. Yeah, spreading out groceries across 3 bags may have technically been better, but that meant they’d have to make another trip to their car when bringing their groceries in their house. They wanted simple. One trip, done.

It all reminds me of the software business. The industry is obsessed with touting features while the public is obsessed an entirely different set of criteria: Does it solve my basic problems and is it easy to use? Does it make sense? Do I understand it?

The real lesson for me is this: People want the basics done well. Does it look good, does it feel good, is it comfortable, is it clear, is it easy? No matter what you’re selling, those seem to be the things that really matter. Get those right and you’ve got a great shot at building a successful product and business.

How Craig Mod and Gina Trapani decided to go the indie publishing route

Basecamp
Basecamp wrote this on 7 comments

Craig Mod has an interesting story about publishing a guide book to the Tokyo art world. Here’s Craig’s description of what happened:

I coauthored and designed a guide book to the Tokyo art world: Art Space Tokyo.

It came out in 2008 to much acclaim and sold out rather quickly.

The publisher we originally published with didn’t have the money to support a reprint. It sat in limbo for ages.

This is a niche book — Tokyo & art.

It’s also a beautiful book: silkscreened clothbound hardcover, detailed maps, printed and bound in Japan. Elegant.

tokyo

The original publisher was talking about reprinting it — cheaply, paperback, disposable. Destroying much of the original charm.

This is ridiculous. So I bought back worldwide publishing rights from the publisher. Drawing inspiration from REWORK — looking sideways, ignoring the ‘usual’ rules of publishing, this is what’s now happening:

Sales folk at traditional distributors push for cheap cheap cheap because it’s easy to sell. The problem is cheap cheap cheap doesn’t generate sustainable profits. And leads to disposable, flimsy books.

Instead of compromise, we’re raising the price. This lets us keep the same high quality, which readers love. It also means the revenue generated by the sales can lead to expansion of the project. Instead of every sale eeking us back to break-even, every sale helps lay the foundation for expanding the project.

Continued…

A little sketching is an exploration. A lot of sketching is a procrastination.

Employment contracts: What are they good for?

Jason Fried
Jason Fried wrote this on 130 comments

We’re on a simplification kick at 37signals. As we grow, we’re trying to simplify our business even more. Growth generally brings complexity, but we want to see if we can go in the other direction.

Questioning assumptions

Simplification usually starts with questioning assumptions. Why do we do this? Why do we need this? Is this really necessary? Is it just inertia? Are we doing it because that’s how we’ve always done it or are we doing it because it’s better? Are we just following conventional wisdom or is there newer wisdom we should be considering?

Why do we need employment contracts?

One of the things we’re beginning to question are employment contracts. When a new employee starts at 37signals we make them sign an employment contract. The contract was drawn up by our lawyers a few years back, so there are no incremental costs each time we bring on a new employee, but is that good enough reason to keep this inertia going?

The contract is about five pages. It outlines some basic responsibilities we have to the employee and the employee has to the company. Starting salary, an overview of benefits, vacation time, confidentiality, and general expectations on both sides. But that’s really only a paragraph or two. Everything else is legal-cover-your-ass-speak. Like most contracts, it’s basically a big “I don’t trust you and you don’t trust me” document. What a terrible way to welcome someone to the team.

How often are these things actually enforced in a business like ours? And if people aren’t really enforcing them, why are we writing/signing them? “Just in case” feels like a pretty weak argument to go through all the cost, trouble, and rigamarole. Is “Imagine if someone…” enough reason to have the first step we take with a new team member covered in legal mud?

What if we became a handshake company?

So we’ve been thinking… What if we did away with these employment contracts entirely? What if we became a handshake company? Plenty of small companies work this way, why can’t we? Aside from each person’s salary, we could post all our responsibilities and their responsibilities on the web.

We could make a ”/workinghere” page at 37signals.com that clearly lays out what employees can expect from the company and what the company expects from the employees. It could be a living document too. Things change, benefits change, rules change. That’s just how it goes. You read it, we shake hands, and we start working together. In the event that it doesn’t work out, we ask you to leave or you quit. That’s how it is anyway – employment in the United States is at-will. Every employment contract I’ve seen includes a line about at-will employment. So what are the dozens of other paragraphs really for?

In this day and age it seems crazy to even consider ditching employment contracts, but why? Why have we become so dependent on lawyers to control every relationship inside our companies? Why is “just in case” the default answer when asking questions about contracts? It sounds more like insurance than legal counsel. And the premiums are sky high.

What’s your experience?

What are your experiences with employment contracts? If you own a business, do you require employment contracts? If you are an employee somewhere, have you signed a contract? Has anyone here ever had to actually sue or litigate an issue specifically related to an employment contract? If you’re an employee, do you feel more or less comfortable joining a company that makes you sign a legal contract? Does anyone feel good about signing these things?

Would love to hear everyone’s thoughts.

Product Blog update: Conference calling in Campfire, bulk tagging in Highrise, SMS events to Backpack Calendar, etc.

Basecamp
Basecamp wrote this on 6 comments

Some recent posts at the 37signals Product Blog:

Campfire
New in Campfire: Conference calling
Every so often we want to take a particular conversation to a conference call. Sometimes voice is better than typing. So now we just have to click a single link and everyone gets a phone number and PIN code to call in. We can have a quick call and then get back to work. Campfire also uploads a recording of the call back to the room for a record. This is especially useful for anyone who missed the call. You can delete the recording if you’d rather not have it stored permanently.

Cd-conference-3

Highrise
Rooftop app brings Highrise to Android phones
Rooftop, an Android App from Staircase “brings all your Highrise contacts, deals, cases and tasks into an easy to use Android application.”

New in Highrise: Now your Dropbox can attach an email to multiple people
When you bcc: an email to your Highrise Dropbox, and you add multiple people to the “to:” field, Highrise will now attach the email to all the people, not just the first person listed in the “to:” field. Highrise will also add a line (in italics) at the top of the email inside Highrise listing all the contacts in Highrise that received the email.

New in Highrise: Bulk tagging, permissions, delete, and more
1) Bulk tagging, permissions, and delete. 2) Import from Excel. 3) Set permissions when uploading. 4) We’ll help find contact photos for you.

Continued…
mturk-review.png

Sortfolio uses Amazon’s Mechanical Turk (“a global, on-demand, 24×7 workforce”) to make sure no NSFW images make it into the galleries. It’s pretty amazing how quickly the processing happens. A visitor uploads an image. Above is the review screen the “turks” see in order to approve/reject. Then the image goes live. The whole thing takes just a few seconds and costs us only a penny per image.

Full disclosure: Amazon’s Jeff Bezos is an investor in 37signals.

Matt Linderman on Mar 26 2010 37 comments

REWORK hits NY Times, Wall Street Journal, Sunday Times (UK) bestseller lists

Basecamp
Basecamp wrote this on 32 comments

It’s been quite a ride since REWORK launched on March 9. We’re proud to say the book has reached #4 in the “Hardcover Advice, How-To, Miscellaneous” category at the NY Times bestseller list in its second week:

4

Maybe we’ll make an attack ad against Alicia Silverstone next (“She really is CLUELESS!”).

It also debuted at #2 on the list of Best-Selling Hardcover Business Books at the Wall Street Journal:

wsj

It’s also #4 at USA Today’s Money Best Sellers list. According to our UK publisher, it will be #1 on the UK Sunday Times business bestseller list this weekend. International copies are out in many parts of the rest of the world too.

Reviews
Best of all, people are loving the book. The average customer review at Amazon is 4.3 out of 5 stars (after 47 customer reviews). Here’s a sampling of reviews REWORK has received so far:

Alexis Rodich, Washington Post: “I want to buy a copy for everyone I know”

Brad Feld, MIT Technology Review: “Brilliant”

Jack Covert, founder of 800-CEO-READ: “I cannot over-emphasize its value”

Kevin Partner, PC Pro: “By far the most useful and provocative business book I’ve read in recent years”

Matt Dunn: “Possibly the most important business book you’ll ever read”

Noah Fleming: “Provides you with more real-world applicable business knowledge than an MBA

Emails
The emails pouring in from readers have also been really kind. Thanks to everyone who’s taken the time to write. Here’s a note from Winn Elliott:

I’m not gonna lie… I didn’t see this coming. I just got my copy of Rework today and have now read it cover to cover. Twice.

Best. Book. I’ve. Ever. Read.

Thank you guys for inspring me to be a better leader. This is exactly what I needed to hear… Confirming both what I’ve done right—and wrong.

Others have had similar kind words and we really appreciate it.

The attack ad
Our ad that “Swift Boated” Karl Rove made its way around the web too. Nearly 40,000 views at YouTube and mentions at Newsweek, Washington Post, Chicago Tribune, Huffington Post, Valleywag, and lots of other places. And, according to one media source we spoke with, Rove has seen the ad and thinks it is “hysterical.”



Interviews
Jason and David recently appeared on ABC News to discuss REWORK with host Tory Johnson.



And here’s an interview with Leo Laporte where David looks like Robocop:



More press is on the way too. One thing we’re still hopeful for: an interview with Charlie Rose. Anyone out there who can help make it happen? Seems like it would be a great fit.

Also, if you find your local Barnes & Noble or Borders store is out of REWORK, please let us know.