Employee CM Matters

December 16th, 2009 | by LaSean Smith

I’m a big 37Signals fan. That’s why this blog post struck me as odd. The title of the post describes their main point:

How Basecamp helped Design Extensions grow from a 1 man shop doing under $50k/year to a 5 man shop doing over $250k/year

I’m looking at that and saying so what! Each employee still only generates $50K/year. I would have preferred they couched it as Basecamp helping out the economy by creating new jobs. That’s a much better story. Zoho had a good post on this a while back. I don’t agree with all of Zoho’s ideas, but we do align on CM.

The Bottom Line: As a business owner/shareholder the employee contribution margin matters. Convince me that your product will increase mine and you have something to sell me.