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Smolin: And how long did it take people to fire it up and get it running to where they were getting some value from it Fuller: Initially, probably within a week, and then as we got better at it, within a day Smolin: Did you have a manual Fuller: Yeah Smolin: And how long did it take you to write that Longer than the program, or less Fuller: Oh, way less, way less Took maybe three weeks or so to write the manual..

Why weren t they interested The people who did VisiCalc had serious technical backgrounds and a bunch of computer science training They knew what they were doing and they had the hot product I had no credentials or background, at best sort of minor league success So I don t think they really saw me as an equal And the publisher was even worse in my view, in that they were firmly convinced, between the venture capitalists and the people they brought in, that they knew how to build this thing into a big business And they saw me, when I was there as a product manager, as an annoyance as a marginal person without experience or credentials who was kind of a pest And I suppose I was kind of a pest So they had no interest in doing more stuff with me.

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They were trying to figure out how to technically get rid of me And I took advantage of that fact I didn t like it, but I took advantage of it The royalty rate that VisiCalc was getting and that I was getting was very high My royalty rate was 33 percent of their gross margin And VisiCalc s was higher they got 357 percent At the time the contracts were done, the economics of the business, which was a new business of packaged software for PCs, was not well enough understood to know that that was obviously an insupportable thing to do But it quickly became apparent, because huge sums were flowing back to the authors, but the publisher was the one that was incurring very significant expenses for support which was their responsibility and all the marketing and sales expenses.

Anyone who is familiar with the business understands that royalty rates adjusted downward pretty quickly So here s the way the world looked to me at the time: I have a hit product not a number one product, but it s making money And it has an insupportably high royalty rate I no longer work for the publisher, but I know how they think and I m uncomfortable with them And I know they don t want to work with me So I felt what I should do is to have them buy me out They would get control of the code, close out the royalty stream, and I would go do whatever I was going to go do next I saw that was in everybody s interest And that s in fact what happened They bought us out for $1,200,000, so I made a whole bunch of money.

Smolin: Oh Well, yeah, you guys were writers Fuller: Well, I was, yeah So that part was not trivial but not consequential either Smolin: It s a big hurdle for a lot of programmers So this was a single-user product Fuller: No, no it was multiuser Smolin: Multiuser Fuller: Yes, from the get-go it was I couldn t even imagine designing a single-user program Smolin: And the networks were pretty crude at that time Fuller: Yeah, but there were some things way back in the initial stages when we were still on CPM, there was a network called Molecular Smolin: I had a Molecular machine It had about a 10-megabyte hard disk in it Fuller: Yeah Smolin: And it was networkable Yeah, I had three, four terminals We had terminals then Fuller: Exactly, and our stuff ran on that Smolin: I see Boy, that brings back memories.

I had never made more than $14,000 a year I told you what kinds of jobs I had We had taxes to pay and I had a partner to take care of, but I wound up with $600,000, which I divided into two piles (I ll talk about that in a minute).

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