Employee’s Idea brings in $1 Million – What the reward ?

January 16, 2009 at 5:47 pm 1 comment

Instead of charging the going rate of $250, we decided to charge $350. Why not? I figured we could establish ourselves as having the premium product simply by charging a premium. In the absence of additional information, consumers often use prices to judge products, and I wanted our site to be the Lexus of job listings. A few months later, 37signals raised its price to $300.

By the time you read this, that little four-week project will have made Fog Creek Software $1 million — nearly all of it profit.

That raised a question: How do you properly compensate an employee for a smash-hit, million-dollar idea? On the one hand, you could argue that you don’t have to — a software business is basically an idea factory. We were already paying Noah for his ideas. That was the nature of his employment agreement with us. Why pay twice?


Entry filed under: 1.

iPhone fart app pulls in nearly $10,000 a day How to make money online ?

1 Comment Add your own

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed

About Biz News

My Name is Bisi and this is my blog This blog features stories that I have read that I think are interesting . I usually bookmark the stories that I find interesting but they are getting too many . I have decided to catalog and share them on this site . I am not really promoting the site so you might have accidentally stumbled on it . Thanks for visiting .
January 2009
« Dec   Mar »

Blog Stats

  • 164,388 hits


%d bloggers like this: