4 ms·

note: as the interviewer i ask probing questions, but it would be a mistake to assume I endorse the positions contained within those questions. getting into th

note: as the interviewer i ask probing questions, but it would be a mistake to assume I endorse the positions contained within those questions. getting into the psychology of entrepreneurs is fascinating as the feedback to the interview clearly shows. i don't assuming it's stupid or insane to not sell a business you love. however, it is curious and perplexing when faced with someone who wouldn't sell a business for an absurd return wouldn't you say? If someone offered 10, 20 or 30x the revenue of 37signals I actually think they would take it. however, those type of deals happen very rarely and i don't think 37signals--as great as it is--would get an offer like that. assuming 37signals makes ~$10m a year (~20,000 customers x ~$50 a month on average), $100-300M for 37signals would be such an absurd price that I think you would have to be VERY "unique" in your approach to not take that deal. That being said, there are unique folks in the world. .... what a great interview.

jules 17y ago
Financially it would be stupid not to sell. But for DHH this isn't about finances. Would an extra $50M (or whatever he'd get) make him happier? A little bit maybe. On the other hand he'd lose what he helped create and is proud of. He'd lose the happiness he gets from working at 37s. If he thinks of a new big idea would the $50M help him to implement more than having a 37signals dream team would? You are very much focused on the dollar amount and whether it would be a good deal from a business perspective. He is focused on happiness. Maybe he would sell for 100 billion, because you could really change the world with that kind of money. An extra 50 million if you're already a millionaire? Meh.
btilly 17y ago
There is some research on this. When people are talking hypothetical money they think it will take more to get them to sell than when you are talking real money. The research on this was based on surveying one group of hunters and asking them how much they would have to be paid to sell their hunting license versus giving another group of hunters concrete offers to buy back their hunting licenses. The median price the survey revealed was something like double the median price that hunters actually sold it.

jules 17y ago

Financially it would be stupid not to sell. But for DHH this isn't about finances. Would an extra $50M (or whatever he'd get) make him happier? A little bit maybe. On the other hand he'd lose what he helped create and is proud of. He'd lose the happiness he gets from working at 37s. If he thinks of a new big idea would the $50M help him to implement more than having a 37signals dream team would? You are very much focused on the dollar amount and whether it would be a good deal from a business perspective. He is focused on happiness. Maybe he would sell for 100 billion, because you could really change the world with that kind of money. An extra 50 million if you're already a millionaire? Meh.

btilly 17y ago

There is some research on this. When people are talking hypothetical money they think it will take more to get them to sell than when you are talking real money. The research on this was based on surveying one group of hunters and asking them how much they would have to be paid to sell their hunting license versus giving another group of hunters concrete offers to buy back their hunting licenses. The median price the survey revealed was something like double the median price that hunters actually sold it.