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Inspired by a recent post on 37signals’ Signal vs. Noise blog, I decided to play around and see if I could try and figure out exactly how much money they’re making. Though my analysis is crude (as they obviously won’t release key figures), I think I’ve got a pretty decent handle on their turnover. […]
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4 months ago
https://smallbusiness.dnb.com/webapp/wcs/stores...
This report is available for $19.99. However, it's only available for US cutomers (that's not my case).
According to the example report, the Annual Sales figure is a required field for producing a Company Profile Report.
https://smallbusiness.dnb.com/webapp/wcs/stores...
4 months ago
4 months ago
einforma.com queries the D&B database for USA based business,
http://www.einforma.com/servlet/app/portal/ENTP...
so I thought more options would be available searching the source directly.
I wouldn't mind donating some $ for the Company Profile Report.
5 months ago
http://spreadsheets.google.com/ccc?key=pAVZB7af...
1 year ago
1 year ago
1 year ago
I expect we will see this growth slow if 37$ stays with their current model of bad customer service. There are many many alternatives now, some of them are actually legitimate competition.
1 year ago
1 year ago
I'm curious if anyone has more substantial comments about if/how my analysis is biased in one way or another. (I do believe it is conservative.)
1 year ago
Costs I can think of right away: office space rental, utilities, equipment, co-location fees, bandwidth, servers, contract-worker payments (if any), health insurance costs, and 401(k) contribution matching. If they have set salaries as opposed to straight profit sharing, then those would have to be subtracted as well. If there is an administrative assistant or two, or any other employees who aren't part of the listed gang of nine, then those are also costs.
Not that I disagree with your basic conclusion that 37s is profitable, but I think the title would have been more accurate as "37signals is one hell of a revenue-generating business".
1 year ago
True, there's likely a substantial cost to Rackspace per month for servers, but I doubt it's a big percentage of my projected $400k per month.
In the end, their costs are (I believe) an order of magnitude below their revenue.
1 year ago
I personally, for at least 3 clients, have set up 3 accounts (people) with at least 1 project each.
Here at work we have an account -- it has 1 project, but 25 people.
So I think they probably make about half to a third of that, based on my gut.
1 year ago
My analysis ignored the number of users; it only deals with the number of projects. (It assumes that only 2% of accounts pay for the service, but that those accounts regularly generate new projects.) Obviously 37signals doesn't release a whole lot of data, so I've had to go with what they've provided.
Download the spreadsheet and play around if you think I'm wrong!
Cheers,
Jed
10 months ago
4 months ago
4 months ago
http://blog.jedchristiansen.com/2008/12/04/esti...