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1. Basecamp is well known within the developer community but not as well known outside of that.

2. The problem is not catching up, it everything else which is hard to explain. The layout, the features to provide or to leave out, finding the right mix is harder then the programming itself.

3. Their new products are not very well integrated and have overlaps in features so that is a weak point.

4. A generic offering is not where the money is. You develop the generic components and then you put them to work in a way that is specific for a particular vertical market. You sign people up free to a generic version, then once you have the vertical version done you offer them that at a higher price point. You do offer a generic "pro" version and some buying of additional useful "modules" for those you don't have a vertical version for.

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