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all kinds of interesting marketing ideas. Well, the first problem we had is that we thought we didn t understand sales and marketing because, indeed, I am a programmer and Michael is a programmer. We thought that the whole business of sales and marketing, which we recognized as being utterly crucial to the success of a high-tech company, was completely mysterious to us. When we read about it, we knew that we were bad at the particular skills that we needed to do sales and to market things. We didn t have any kind of budget for marketing. So we were just afraid of the so-called go-to-market strategy. I see a lot of startups in their first couple of years kind of flail around exactly the same way we did trying to figure out, Oh shit, how are we going to get people to buy our stuff We had this dream that we would find a company that would sell and market our products, and we would do development. There would be some kind of 50/50 split. But search as I may throughout the history of the annals of computer software, I could only find one example in which one company sold a product and the other company developed. It was Lotus Notes, which was developed by a Boston-area company called Iris Associates. They had a deal that was a 50/50 split with Lotus, basically. Lotus Development did all the sales and marketing and bought copies of Notes from Iris for, I believe, 50 percent or something. It is probably 25 percent of the MSRP (manufacturer s suggested retail price) or something like that. That particular relationship, before Lotus completely acquired Iris, lasted long enough that I thought that maybe this model would work.

Tip Multiple vertex streams are useful, for example, if the Color data requires frequent updates while the Position data stays the same. By splitting up the data in two vertex streams, the Position data can remain unchanged on the GPU, so you have to transfer only the Color data from the CPU to GPU.

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I later talked to people that were involved, and they said, Oh my God, the tensions were unbelievable It was a nightmare Lotus had to acquire them So the next thing we looked at was selling Fog Creek to some other company that we thought could take us to market We went through the whole song and dance and negotiations with the company that we thought would acquire us and had the cash to take us to market It didn t work because we were prima donnas with inflated opinions of our own worth In other words, they made an offer for about $4 million, and we thought we were worth about $12 million We understood why they thought we were worth $4 million That s what we would have said in their position, too But, we really thought that we were going to go a lot further.

It s just a matter of is someone else going to come along and knock me off You know, make it better I am like the gold standard, and everybody knows that So, they re going to look at my product first So unless somebody else out there is going to go really cheap, or onto something that I just don t have, it will continue to sell And if they do that, I m going to have to scramble, and quote whatever they offer or lower my price, but I m going to try to milk this thing as long as I can But I have some ideas that could really improve it, or I could probably capture jewelry designers that are on a higher level But again, I just don t have the time to do the programming.

Lo and behold, the company that didn t acquire us did acquire another company of some friends of mine in the same scenario They were developing software, and they were hoping that this acquiring company would be able to go to market with the software And the acquiring company actually proved that they did not have the ability to go to market with the software products, so that was a flop I think if we had gone that particular route, we would have disappeared, pretty much, and the products would have disappeared, and Fog Creek would have been no more.

So the mistake I made was in thinking that I had a sales and marketing problem, you know, because everybody said, Where s your salesman Where s your marketing department How is anybody going to buy your software In the early years, we thought, Let s get people to link to us on their websites, and we ll pay them a little bit of money if they sell our software When we had a consulting business; there was this little thing up on our web page saying, Help us find some consulting clients and we ll give you $5,000 which I thought would get people s attention Everybody that had any kind of business experience said, No This looks like you re desperate and it s a bribe Take it down from here.

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