RyanGWU82


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How not to approach an investor (ricksegal.typepad.com)
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Actually, Sam and Vlad both stayed at my apartment that year for Startup School. Neither of them tried to rape me either.

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The term "enterprise software" usually refers to software products sold to very large companies, or at least "small and medium businesses" which have 200-500 employees. David's examples were geared more toward the "Fortune 5,000,000" -- the much larger market of small businesses with a handful of employees.

The economics of the "Fortune 5,000,000" are very different than true enterprise software, as it avoids employing a direct sales force. Obviously 37signals wouldn't turn away a team from General Motors who wanted to use Basecamp, but they don't actively market their products to large companies.

You're right about the difficulty of charging for online products in the consumer market. DHH said that they were having trouble getting customers for their personal organization product, Backpack, even at $5 a month. After they repositioned Backpack to be used by small businesses, they were able to increase the price and sales still grew tremendously.