Yes it can be done. We have a setup like this, but we try to spend 2-3 days in the office a week and a minimum of one (Thursday) for everyone. The key thing ha

Yes it can be done. We have a setup like this, but we try to spend 2-3 days in the office a week and a minimum of one (Thursday) for everyone. The key thing has to be communication and the ability to maintain motivation. We use Google Apps Premier to handle most of the comms, motivation is maintained through electric shocks... ok, maybe it's more regular meet ups and social events as well as making sure everyone has and gives feedback on everything. There's a golden rule of recruiting that becomes even more important for telecommuters: Don't hire pricks. It doesn't matter if they're rock starts in their given field or if they're able to do something you otherwise can't. Don't hire 'em - they'll cause more problems than they solve.