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It doesn t cost us anything in the first place and doesn t cost us that much to keep the lead, because, though they get one project for life, we have a large group of people who are now friendly to the product we re selling because we just gave them something for free that they re actually using And we re not yanking it away in 30 days So this builds a lot of goodwill in the early phases of the relationship with the customer It s a really powerful way of selling..

) Clicking the Enter button generally displays the main menu Most applications have a main menu, sometimes referred to as the switchboard It will have a bunch of clearly labeled buttons that will allow the user to open each of the forms These forms allow entry and editing of data that mirror the way you ve organized the data that you are storing Some buttons will open forms that control the generating of a report Still others give access to utility programs You can see the E-Z-MRP Main Menu in Figure 2-8 Sometimes a button on the main menu will open up a form that is nothing more than another menu a submenu if you will with some related functions on it Clicking the button labeled Bills of Material opens up the E-ZMRP Bill of Materials Menu, shown in Figure 2-9..

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Livingston: Did anything go wrong Heinemeier Hansson: We made a bunch of mistakes. We got the launch pushed back by almost a month. Initially, we thought that we were going to bill people once a year, $99, $299, and $499 for the different plans. We built this entire billing system, which was a sizable amount of the development time. We didn t figure out that the bank wouldn t let us bill this way until about 3 days before we were ready to launch. The bank wouldn t let us sell a service that we were going to promise for an entire year, because they d be on the hook for the money if we went out of business a few months into a $500 agreement. They wouldn t allow that because we didn t have a long history with them. So now we had this extensive billing system focused on billing once a year and we couldn t use it. We had to go back and make it monthly instead. But this turned out also to be a blessing. So we pushed back the launch about a month, and now we charged monthly, but we charged twice as much. The plan that was before $99 a year is now $19 a month, $224 a year instead. So we actually got to raise the prices and at the same time create a less risky offer for small companies since they didn t have to buy a whole year.

One of the technical mistakes that we made early on was that we had this notion that Basecamp was for creative services firms Set up like that, you have a firm and you have a client, so it s a one-to-one relationship That assumption went very deep For instance, in the database there s a client ID and firm ID, and now that people were using it, you d have setups where people wanted two firms So now what did we do Basecamp simply couldn t do that And that assumption was so deep at the roots of the system that it took us about a year and a half to fix, which was not a good thing Another interesting mistake was that we didn t consider time zones.

Basecamp ran with the assumption for the longest time that everybody is in Central Standard Time, even though I was in Copenhagen, which is a 7-hour time difference from Chicago So people in Australia would get their milestones one day late We didn t really care about time, because we didn t usually have fixed deadlines We had stuff we wanted to do, but it didn t really matter whether it was 2 hours later or 2 hours earlier Of course, not every firm works like that And it was also disguised by the fact that Basecamp didn t use a lot of time The only place where we displayed the time itself was on the comments On the posts themselves, it just said the date and the milestone So you wouldn t be able to discover that, unless you were in that central time zone, it was off.

In Denmark, for 7 hours after midnight, the system would say it was yesterday So it was a big deal for the firms that needed specific times And it was always a big deal to people in Australia Half of the time they would be off by one day We ve gone back to fix that problem too..

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Livingston: Were you the only programmer Heinemeier Hansson: I was until February 2005 when we brought on our

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