[thejteam]

I was watching a presentation the other day and heard a relevant story. It was about one of the early internet companies during the first dotcom boom. It was a change of address service. You would input your information and the services you needed to cancel and/or change the address for and it would handle it for you. This was in the early days of the consumer web, so none of these companies had APIs for this company to call or even thier own web forms. This company processed its early orders using old ladies at typewriters and fax machines.

I really wish I could remember the name of the company, but theyr were acquired very quickly for a stupidly large sum of money.

[fbuilesv]

This reminded me about Joel Spolsky's Strategy Letter III (http://www.joelonsoftware.com/articles/fog0000000052.html), where he talks about a company called PayMyBills. PayMyBills would handle the user's bills and send them electronic reports of the bills each month.

Their strategy required the user to manually call each service provider to change the physical address to PayMyBills' so they would receive all the paper and process it. This created huge barrier of entry (who wants to call every single provider to change their address?). At the same time, if you end up signing up you're likely to stay in because of the time it took you to go service by service to change your address again.

FWIW I don't know what happened to PayMyBills but today their site redirect's to one of Intuit's service.