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Graham: One thing that was surprising was that it actually worked. There we were, in the summer of 1995, thinking, We don t know anything about business, but we re good programmers. Maybe if we write a really good program, we ll make something all these users will want and we ll get lots of users and then some big company will buy us. And 3 years and enormous numbers of ups and downs later, that s exactly what happened. We had this theory about how business might work, and we sort of forced it to conform to our theory. I know Robert was surprised that we made any money, because I have a real index of how he was feeling about Viaweb early on. A couple months in, he and I were having dinner, and I made a bet with him that if he ever made a million dollars out of Viaweb, he would get his ear pierced. So the day after the Yahoo deal closed, Trevor and I grabbed him by one arm each and took him down to the Garage in Harvard Square, where all the teenagers get their nose rings, and we got his ear pierced. He spent a long time trying to pick out the smallest one. Livingston: Some aspects of business turned out to be less of a mystery than

of stuff. I learned a trick for doing this: to tell the truth. A lot of people think that the way to convince people of things is to be eloquent to have some bag of tricks for sliding conclusions into their brains. But there s also a sort of hack that you can use if you are not a very good salesman, which is simply tell people

the truth. Our strategy for selling our software to people was: make the best software and then tell them, truthfully, this is the best software. And they could tell we were telling the truth. Another advantage of telling the truth is that you don t have to remember what you ve said. You don t have to keep any state in your head. It s a purely functional business strategy. (Hackers will get what I mean.)

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server. Nowadays there are so many web-based applications that you take this for granted, but this was a year before Hotmail. We would explain to people how the thing worked and give them a demo and they would say, Great. Where do I go to download it After we got bought by Yahoo, a reporter who had been covering us for the past 2 years wrote an article about the Yahoo acquisition and at the end said It only takes 10 minutes to download. After covering us for years, the guy still thought this was client software.

I used to have a policy that if a modification was requested by one customer, it was a custom chargeable item. If two customers asked for it, it became generic and was included at no charge in the next release. You don t have to charge for a chargeable item. But it s important to let the customer know what the modification is worth. You can always waive the charge to close the deal. Everybody likes to get something for nothing. But the trap is that if you make a custom modification to one of your sites, it has to be maintained. When you release Version Two of your product, you re going to have to incorporate those custom modifications into the copy of the product you send to that customer. You could end up having to maintain many unique versions of your product. You want to avoid that (duh). This is where the beauty of the registered serialized product with product key described earlier really comes to the fore. You can tie custom features, functions, forms, and reports to a specific serial number and activate or deactivate them with a line of code. Simply compare the serial number of the system to the serial number of the custom feature, activating it if there s a match, leaving it hidden if there isn t. For example, one E-Z-MRP customer wanted a button on the Purchase Order form to send an e-mail to the vendor. So the button was included on the form, and the code behind the button was written to send the e-mail. But the button was made invisible. When the form opens, a line of code is run:

Livingston: Is there anything that you would have done differently Graham: I wouldn t worry so much about seeming like a real company. Now I

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would just say, keep it a bunch of guys operating out of an apartment for as long as you want, because there s nothing to be ashamed of in that, especially if you re writing great software. Another thing I would do is open an online store ourselves. We did use our software for building our website. We were the only one of all our competitors who actually used our software for building our own corporate website. But we didn t have anything people could buy online. If we had been selling stuff, we would have understood what life was like from the merchant s point of view.

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