Podcast Episode #10: Lance Walley of Chargify, Engine Yard, Parallax and more


In my latest podcast episode I interviewed Lance Walley, who has been building businesses for over 20 years.  Most recently Lance co-founded Chargify - a recurring billing system, and before that EngineYard - a Rails application hosting company.

Lance spoke candidly with me about launching new ideas, scaling a business, failure, success, investing, and more.  It was great talking with him and he shared a ton of great information.  You can follow Lance on Twitter at @lancewalley.

As always, you can listen to the show right here on the blog, or subscribe to the podcast in iTunes.

Thanks a bunch Lance!

(Once again thanks to The Smashing Pumpkins for the intro and exit music.)

Interview with Beyond the Pedway


There's a video podcast done in Chicago by a guy named Tim Jahn, and he interviews entrepreneurs about their work, their companies, how they got started and all that good stuff.

Tim interviewed me a couple weeks ago for his show, and we talked about creating things, how products can be a form of advertising, money, and how I define "success".


Thanks again Tim, I had a blast chatting with you!



The foundation isn't physical

The things that mean the most to us, whether individually or as a whole, are built upon a foundation that doesn't physically exist.

The iPad is the outuput of Apple's idea that machines should be beautifully designed, and easy to use. Basecamp is the product created by 37signals' idea that software should be elegant and contain fewer features to distract a user with. Wikipedia is the result of an idea that the sum of all the world's information could be readily accessible to everyone, for free. And our homes are built upon the foundation of our relationships with the ones we love.

I think about this whenever I get stuck on a project.

The approach people often take is to look at whatever we're working on, and begin refining the physical product. Usually though, we'd be better served by refining the idea first, and to only then begin refining that which was born from the idea.

The more refined the idea, the more refined the output that's created. And so, the reason some products seem to be so great is primarily because they have their idea down so solidly.

I think it's important to remember that whatever it is we're working on, that they're merely the physical manifistation of our ideas. And that if we're not happy with our products, maybe it's the idea we need to be working on a bit more.

The other side of color, why I keep playing with it, and the changes I think they should make

One of my favorite Ted talks is a two minute talk by Derek Sivers titled "The opposite is also true" and I reference it quite a bit. It's essentially about how with any one thing - an idea, a business, a revenue model, etc. - the opposite of that thing can also be true.

A few days ago I wrote a post claiming the fact that color spent half a million dollars on two domain names was an indication that they would be attacking a lot of their problems with money instead of creativity, and that this should be worrisome to their investors.

I still believe this to be true, and there are more specific examples which I'll reference further down the post.

I felt that some people missed my key point, but not everyone. It was probably best summarized by commenter "mp":

i think ppl are missing the point in the comments... its not just about domain names not mattering (which i agree with) but that this decision is a leading indicator of how this team is going to approach the extremely rare and unique chance they have ($40mm) to launch what could truly be a life-changing product...

Today, I'd like to write about the life changing part a bit, why I keep playing with the application, and some of the changes I think the Color team should make - both with their focus, and their execution.

Connecting humans, physically

I've watched/listened to a number of interviews with one of the founders, Bill Nguyen, over this past week. I've heard no better interview than this one with Robert Scoble. In it, Nguyen talks about how in our social networks, we're connected with our friends, family, people we've met on twitter, etc - generally over large distances. We now have a way to stay connected with people that we're not close to - physically that is.

He goes on to talk about how we're very often not connected with our neighbors. Sometimes we don't even know who our neighbors are. Why is this? And how would our relationships change if we suddenly had a mechanism through which we could interact with those in our proximity that we had never met?

Color, I believe, is attempting to add a context through which we can meet with other people, in person.

I absolutely love this idea. One of the reasons I built GoFind was because I liked the idea of using technology to help people actually get together, in person.

And, there is absolutely, without a doubt, some magic going on inside Color. I have no idea how they're doing their proximity thing, but when you have two phones near each other, it does "just work". (Unless one of them is an Android phone, then one phone just works, and the other kind of works.) How do they know each other is there? No clue.

But they're absolutely right that GPS provides significant challenges, and if they've solved this location problem - which it appears they have - when multiple people/devices are trying to meet up, MAGIC.

Seriously.

Lastly, as a community, I think it's important to recognize that we do celebrate when people like Matt Mullenweg write Version 1.0 is the loneliest number. So, okay Color folks, you're embarrassed by version 1.o. You're in good company.

Let's talk about the next version, and how to do it without going all MC Hammer on us.

Important changes to the color team focus

One of the problems with too much money is that it makes us try to do too many things. This is again evident in the way the color team tried to tackle Android. They targeted four versions of the Android OS and something like 16 different handsets (source: the Scoble interview mentioned above.) Let me tell you guys something no one in the Android community will tell you.

The Android ecosystem is a fucking mess.

It's sad, because I presume you might even have access to people like Andy Rubin who used to claim that Fragmentation didn't exist. If he ever told you this to your face, and you made development decisions based on his claims, you should be pissed to holy hell.

Andy Rubin has been lying to Android developers about fragmentation for almost a year, and now, he's locking down the Operating System for this very reason.

Unfortunately, the community is in deep, deep denial over this. First, your application is quite possibly too complex for the Android Operating System. And even if it isn't, trust me, the carriers have done something that will fuck your application up. So, what devices to target?

The G2, running the stock Android experience.

That's it. Oh, and when Andy Rubin calls, just tell him you're not supporting "legacy" devices.

Avoid the Sense UI at all costs.

Your iOS experience is awesome compared to the Android experience. Make Android catch up to your technology, don't taint your technology trying to appease that which can't be appeased.

Now, for some User Stories

For those that aren't familiar, in the world of software development there is a notion of a "user story". It's a way to communicate what kind of changes you'd like to see in software, without talking about "requirements". I'm going to write these as if I was opening tickets for the Color development team. A couple disclaimers:

1) I fully understand your stuff is complex, and maybe some of these things are insanely difficult to implement from a technology standpoint. I'm merely telling you what I, as a user, would find useful.

2) Yet, these are things I *think* you might be able to do with less significant development than tossing out the entire user interface like Bill was talking about doing in the Scoble interview.

I actually don't think the UI is all that bad, once the device is in close proximity to another. It's just the very beginning that's all crazy.

Here goes:

Story 1: As someone opening the color application for the first time, I don't want it to ask me to take my picture. It kind of freaks me out. Instead, I'd like to be able to pull in my facebook profile, or my twitter profile picture.

Justification: Not all phones have forward facing cameras. It's hard taking a picture of myself without a forward facing camera. Also, as the epic review points out, it's creepy.

Story 2: As someone trying to use color for the first time, I want to be able to practice "coloring" by sending a text message to someone, and invite them to "color" with me. (side note: I have to admit, I really do dig the whole, it's a noun and a verb thing you have going on.)

Justification: I just want to target one person, that I trust, with whom I can practice.

Story 3: As someone trying to use Color for the first time, I want to be able to send a chat message to my Facebook friends that are online and ask them if they want to color with me.

Justification: I don't want you to automatically create groups from my Facebook profile. That's probably going to make me feel stupid again because I don't know that I'll have anyone to practice with. Again, one person to practice with.

Story 4: As someone trying to use Color for the first time, I want to be able to send a twitter reply to someone and invite them to "color" with me, again, so I can practice.

Justification: Same as above.

Story 5: As someone that uses GroupMe, I'd like to be able to start a color group with my GroupMe group.

Justification: This will allow me to understand the power of color, without having to physically be near anyone else.

(Alternative solution, what the hell, just buy GroupMe.)

Let's talk about the themes

The theme with all of this, is that most users will not be near other users when they first try out the app. Bill Nguyen was talking about widening the proximity radius, but I think that's still problematic.

You need to look at this period as a "train the trainers" time period. My siblings are never going to do this stuff, I realize that, because they're not techy. That's fine. But, I need to know how to train my siblings. Feel me?

Also, Seth Godin talks a lot about the difference between trying to change people's world views, and trying to leverage peoples word views.

Color is trying way too hard to change my worldview. And that freaks my shit out. My worldview right now is as follows:

* I am connected to, and interested in, people that are physically far away from me.
* I live with the people that are physically near me, and my wife gets mad at me when I take her picture when she's in her pajamas.
* Pictures are still kind of personal. I generally have the opportunity to edit them and make sure I want to put them somewhere for the world to see.
* Your application is scary because it takes pictures and puts them someplace I didn't know exists.

Instead, let me "Color" with the people I'm already connected to, and let us have fun practicing together. Let us tweet about our practice sessions and share them on Twitter and Facebook.

The danger for Color right now, I believe, is that they think the UI is the problem. That's certainly PART of the problem, but I don't think it's the core problem.

Color needs to create a sort of gravitational pull to get me and others to use their application with the people we're already connected with. If they don't do this, it doesn't matter how great the new UI is, because I still won't use the app.

Instead however, if I see a new group pop up that's nearby me, while I'm using the app with my existing network, (because my neighbor across the street is doing the same thing!) I might just check that new group out.

And if you connect me with someone new, someone that becomes a friend because I live near them, you just might have a shot at changing my world.


The tools I use



Since so much of my business operates on the tools created by others, I thought it would be nice to try and list out all the products I use to run my business. I've also written previously that I believe tools matter quite a bit, so hopefully some of you find a few things that will help you in this list as well.

It's sort of hard to know where to draw the line with something like this (Should I include the Operating System I use? And the text editor? Just SaaS products? A combination? Paid Products? Free Products? Everything?) s0 let's just say that if it's in this list, it's a product or service I use that I find useful, valuable, and usually, though not always, pay for with money.

Lastly, all costs are what I pay. Most paid applications have various plan options. So without further ado, here are the things I use to do my thing.

Computer

My computer is a MacBook Pro. When it comes to the creative portion of my work (programming, making websites, working with images, podcast editing, etc.) I would have to relearn everything if I were to have to do it on a Windows machine.

General Business Tools

Basecamp by 37signals: The most important piece of software I subscribe to. I use it to run both my client projects, and my own internal projects. If you're working on anything where you have to collaborate with others, you should consider using it.

Cost: $24/month

LessAccounting by Less Everything: No matter your business, you will have expenses, and hopefully, revenue. I started using LessAccounting because I wanted to get away from the Microsoft Small Business Accounting Desktop software I was using, and I love it now for many more reasons than I expected.

They automatically import all the data from all my bank/PayPal accounts, and it basically "learns" which expenses go into which categories. The result is that I now spend a tiny fraction of the time doing accounting stuff that I don't want to do.

Cost: $20/month

Highrise by 37signals: Again, no matter the business, you'll be speaking with people, emailing with people and having phone calls. Highrise is a lightweight, very easy to use, web application where you can capture notes, emails and reminders for all the people you work with, and lets you easily track the deals you're working on.

Cost: $12/month

GoogleApps by Google: I use google apps for email and my shared calendar. If you don't know, the interface is pretty much identical to the Gmail interface, but you can customize a few things. And of course, you have an email with your domain name.

Once you have a domain name you will need to set things up accordingly with your domain registrar. I usually use GoDaddy to register a domain, and the Google Apps instructions for GoDaddy are very good for people that are new to setting up email.

Cost: I use the free plan.

Backpack by 37signals: I use Backpack primarily for two things, the "pages" functionality, and the Writeboards. I use the pages as running lists of important things like blog post ideas, or for tracking something that feels more like a small project, but isn't something that I'm collaborating with others on.

I use the Writeboards for contracts. Writeboards let you easily collaborate on written documents, and I like using them for contracts because it's very inviting to changes. The best contracts are ones that everyone is happy with, and Writeboards make it easier to make those.

Cost: $7/month

Campfire: A web based group chat tool that makes it easy to chat with people. Campfire is a sort of non-interruptive way to have ongoing discussions with people. I also use it withNotifire, the little tool TK and I created, to get alerted when someone enters a public chat room.

Cost: I use the free plan.

Blogger: I use blogger to host my blog. I sometimes feel like I'm the only person who will openly admit they love blogger, but I think it's a great platform, it's as worry-free as a website can get, and they now have a great design tool where I can add my own custom CSS.

If you don't have a website or a blog, and you want one but don't have much money to spend, I would recommend using blogger.

Cost: Free

Sales and Marketing Tools

BiteSizePR: My friend Ryan's company just launched this product and I've been using it for about a month. Basically, they monitor PR opportunities that would be a good fit for both you and the reporters that's writing a story, and they connect the two of you.

Cost: $89/month

Mailchimp: Let's me easily send emails to a large group of customers. I've started using it more since the launch of SignalKit, and am considering starting a monthly newsletter with it. I haven't decided on the latter yet though.

Cost: I currently use the free plan, but will likely have to upgrade soon.

Tout: This is an email tool that allows you to more quickly send outgoing emails, and track analytics on them. It's also a way to make it less likely that your emails will end up getting blocked by a spam filter. I don't always use Tout, but when I have an importan email to send, I often do.

Cost: $30/month

Sortfolio by 37signals: This is the only place I consistently advertise right now, and it more than pays for itself. I get quality leads for developing both informational/marketing websites, and web applications. Very often the people that find me on Sortfolio already have the same sort of mindset that I do when it comes to getting things done. Worth every penny.

Cost: $99/month

Development Tools

Formstack: It's difficult for me to overstate how awesome I think Formstack is. It's not only a development tool, but it can be a great one. If you need to collect any kind of information from people online, you can do it very quickly and easily with Formstack. They also integrate with a ton of mail marketing providers, payment providers, and CRM systems, and a host of others. Think of them as the window into whatever system it is you ultimately want to get information from humans into.

Cost: $14/month

Beanstalk: The source code repository I use. I like them because they support both Subversion and Git, and I prefer the design of their user interface over github. (Though I still have a github account as well.) They also allow you to assign either read only privileges or both read and write privileges which I've needed on occasion for some of my client work.

Cost: $15/month

TextMate: The very popular text editor. This is the one I use.

Cost: $57

MediaTemple: This is where I currently host my non web-app websites. I've heard mixed reviews about their Grid service, but I'm giving it a chance. So far, I've been very happy with the service, but I'm keeping a close eye on it.

Cost: $20/month but it'll likely go to $40/month soon.

Heroku: Where I currently host my Rails applications. It's a great service and easy to use. I think it can start to get expensive after a while, so I may end up moving to some other services, I'm not sure yet.

Cost: $36/month

I'm pretty sure I've captured everything I use here, but if I forget anything I'll update the post as they come to mind. Hopefully a few of you can find one of these services useful if you're not using them already.