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thought-through value analysis type of thing and considered all the distribution costs and all of the things we had learned in the prior years and came to a price on it of $595, which was an extremely good value for people at the time They were spending more than that every time they wanted to do a bid just in clerical support to send out all of the notices Postage was that much So they just, it was never even a moment s thought process It was never a decision point It was, OK Here Here s the money And away you go Smolin: For PMS-II you had ongoing support revenue stream Vanderpool: Right Smolin: Did you have that for BidFax as well Vanderpool: Yes, yes That was the other side of it.

large bonuses to the employees some combination of slightly lower bonuses and slightly less retained earnings in the company. So it was a simple story of investing and then selling shares. The litigation was a sideshow. In the end, they bought me out the same as if they hadn t sued. They just thought, Well, maybe we can steal control of the company instead of having to buy it, and, when that didn t work, they bought it just like any reasonable person would have expected to.

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Joel Spolsky founded Fog Creek Software with his friend Michael Pryor in 2000. They didn t have a specific product in mind, but were motivated to start the kind of software company where they would want to work one where programmers were the stars. Around the same time, Spolsky began writing Joel on Software now one of the most widely read programming blogs to share his thoughts about software development, management, business, and the Internet. Joel on Software was one of the first examples of a now common (though rarely achievable) strategy for software startups: create a popular blog to get attention. With its popular software, including FogBugz and Fog Creek Copilot, Fog Creek Software has doubled its sales every year, even during the post-Bubble meltdown. The company never took any outside investment, and continues to operate as a profitable, privately held company.

Livingston: How you did you come up with the idea How did Fog Creek Software get started Spolsky: There was no idea, in the sense that the only thing I thought was,

There s a bunch of people out there doing certain types of things and they seem to be pretty incompetent, but they re getting huge valuations. Surely if I did those same things, knowing that I am less incompetent merely semiincompetent as opposed to extremely incompetent I should be able to achieve at least their level of success. There was a period in the late 90s when starting companies was just a slamdunk, no-brainer kind of thing. The people that were going public with $100 million valuations were punk kids [who] just graduated from college and knew nothing about anything. There were some really bad implementations of very pedestrian ideas, and we thought we could do a lot better.

Step 1 Start by adding this struct: public struct MyVertexPositionColor { public Vector3 Position; public Color Color; public MyVertexPositionColor(Vector3 position, Color color) { Position = position; Color = color; } } This struct is capable of storing a Vector3 for the position and color. This would be enough to create vertices and send them to the graphics card. Step 2 Imagine a stream of vertices is sent to the graphics card. Your graphics card would have a pretty hard time trying to figure out where to split the stream of bytes into vertices. It needs to know the number of bytes occupied by one vertex so it can cut the stream nicely into separate vertices. Add this line to your struct: public static readonly int SizeInBytes = sizeof(float) * (3 + 1); Since this information is the same for all vertices you create based on this struct and you need only to read them, you can make it static readonly. Each vertex contains a Vector3 and a Color. A Vector3 is composed of three floats, while a Color is stored in one float. So, the total number of bytes occupied by one vertex equals (number of bytes occupied by one float)*(3+1).

I figured the way I came out with the original number was all of my distribution costs amortizing the hardware necessary to do it electronically and all of that sort of stuff came out to about what we were charging for the product plus the commission for the people that were selling it So that was a break-even as far as I was concerned and recapturing the investment for what I perceived to be a much smaller market than what actually turned out to be My revenue stream on it was online support and continuous support For that we charged $400 a year, and I still have people trying to buy it today Smolin: So both of these applications were single user, not networked Vanderpool: Basically, yes Smolin: OK So you sold it single-price for a license Vanderpool: BidFax, we did eventually have a multiproduct package for it.

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