The Google Graveyard
REWORK
Introduction
Jason Freed and David Heinemayer Hanson are the co-founders of 37 signals. The company will maintain its products until the end of the internet, they say. Google recently killed off their domain selling service for just $200 million a year. Jason: "You can't necessarily trust it when it comes to software as a service"
Unlike some tech giants that have notoriously pulled the plug on beloved products (remember Google's sudden discontinuation of Google Reader?), 37signals takes a vastly different approach with their pledge to support ALL of their products for the life of the internet.
This week host Kimberly Rhodes sits down with Jason Fried and David Heinemeier Hansson, the co-founders of 37signals, to explore the importance of longevity and trust in the SaaS industry.
Drawing parallels to iconic brands like Porsche and Rolex, Jason and David take a deep dive into the challenges of product discontinuation and its impact on loyal customers. From Ta-da List to Basecamp, listen in as they reveal the principles that drive their support decisions and why longevity matters when building a brand that customers will rely on for decades.
Check out the full video episode on YouTube
Show Notes:
[00:00] - Kimberly introduces the podcast and the topic of 37signals' core principle to maintain its products until the end of the internet.
[00:36] - David discusses the risk of relying on big companies for software services, sharing the recent example of Google killing off its domain selling service.
[02:06] - David explains why Google tends to abandon services leaving users to deal with the aftermath.
[03:50] - How to become a legacy brand—like Porsche.
[05:20] - David shares 37signal's philosophy to keep products running until the end of the internet (example: 17 years of maintaining Ta-da List).
[06:08] - Short-term profitability vs. long-term commitment to customers: The moral obligation (and trade-off) of maintaining legacy products.
[08:07] - Kimberly draws a parallel between the changing ownership of mortgages and software services.
[08:58] - Brand building through commitment and longevity.
[10:05] - Jason shares how 37signals prioritizes their commitment to customers with their core apps.
[12:16] - The challenge of balancing the desires of existing customers with the need to appeal to new customers.
[15:47] - The most profitable product in the 37signals portfolio.
[17:37] - Kimberly asks about the decision-making process between creating new versions of Basecamp versus adding features to the existing ones.
[18:02] - Some updates are like facelifts—others involve fundamental changes.
[20:20] - The costs involved in maintaining apps like Ta-da List.
[21:35] - David highlights the BIG return on investment in brand power that comes with the commitment to maintaining products.
[23:12] - How the murder of Google Reader still impacts users' trust in new Google products a decade later.
[24:06] - The high failure rate of venture-backed companies.
[23:48] - Did you know full video of episodes of Rework are available? Check out our YouTube channel or find us on Twitter. As always, if you have questions for David and Jason about a better way to work and run your business, we’d love to answer them. Leave your voicemails at 708-628-7850 or send an email. And don’t forget you can find show notes and transcripts on our website.
Links and Resources:
From David's HEY World: You can't trust Google
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