Tag Archives: Jason Fried

What A Plog Can Do for Business

Blogs have been a great way to have an online conversation. The blogger puts his words in a post and readers put their responses as comments. In a public forum, where most blogs live, that’s great for energizing this discourse. But what if you wanted to have the same level of interaction, and organization of topics, but without the world eavesdropping? Until recently, there weren’t many options. If you wanted the convenience of using a blog to discuss a project for work — comparable to a roundtable brainstorming session but captured online and easily accessible — there was little choice but to put it online. Not exactly a closed-door meeting. Build it or buy it  Initially, companies wanting a project blog (plog), and wanting it to be private, would have to build it themselves. However, in February of 2004, one company, 37 Signals  a Web application design firm, garnered some notice for developing and selling its own project management tool, Basecamp. A plog-like function is a part of it. (The company calls that the “messages” section.) Basecamp’s users now number in the hundreds of thousands. “We started Basecamp because we needed it for ourselves for our client work,” says Jason Fried, founder and CEO of 37signals, of Chicago. He describes his company’s plog very simply as a password protected message board on which people can post comments. (In his case talk is cheap: the most inexpensive plan is $12 a month.) Richard Bird, president of brand identity design firm R. Bird, of New York, is addicted to Basecamp’s efficiency. “It tracks our conversations and keeps them all in one place so our people and our clients can be in one place,” he says. “That’s the opposite of e-mail in which everyone has an individual channel of communication that isn’t shared. E-mail is the enemy of collaboration.” Reducing clutter Echoes Paul Larson, president of Creative Arc, a Minneapolis-based Web design firm, “It reduces the clutter of inboxes – which helps everyone.” There are no more giant e-mail attachments to deal with, for one thing. “People know how to read a message and post a comment so usability is very high,” says Bird. Unlike with more complicated tools, like project management applications, which people may find off-putting to use, this tool actually gets used, which makes it, well, more efficient.

Bootstrapping Lesson: Use Cheap Web Tools

37signals Founded by Jason Fried with $150 In 1999, Jason Fried set aside $10,000 to start a Web consulting company, 37signals. Turns out he didn’t need nearly that much. “It costs virtually nothing to start a software business these days,” he says. Using open-source tools that are free on the Internet, Fried and his partners began to devise applications, including project management software, for internal use. Realizing that there might be a market for their programs, they began distributing free and paid versions of them on their website. They marketed these products on a company blog, and Fried directed customer support questions to a Gmail account, which he answered personally–fielding questions helped him design better applications, he says. Today, Fried’s Chicago-based company has five products, which have been used by 500,000 people. Though Fried declines to share revenue figures, he claims that sales in 2005 were up 400 percent over 2004. Another way of looking at the company’s growth is through its Web-hosting expenses, which have jumped from $150 per month in 2004 to $10,000 a month today. The growth of that line item doesn’t bother Fried much. It tracks the popularity of both his paid and free software. Cheap Web Tools Free source code isn’t the only resource on the Web that’s deflating start-up costs. These sites offer a variety of business services at low, low prices: Site Go there for Pricing Emachineshop.com Light manufacturing Starts at $65 Cafepress.com E-commerce, promos Starts at $5/month Associate-o-matic.com Online retail stores Basic version is free Mturk.com Market research Pennies per question Gmail, Hotmail, etc. Web-based e-mail Free Openoffice.org Ersatz Microsoft Office Free Salesforce.com Customer relationship management software $995/year for five installed users Pad2pad.com Custom circuit boards Starts at $83 per board