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Where exactly does their money come from?

"Millions of people in 150,000 companies..."

"Pricing starts at $20/month."

http://basecamp.com/

Oh wow I had no idea it was such a popular product.

They charge money for their products like Basecamp, Campfire, etc.

Most of their products are web-based with paid subscriptions.

Almost all their products are SAAS offerings in consumer internet. Flagship product being the project management and online collaboration software - basecamp (http://basecamp.com/ ) . They make money from subscriptions, and target the long tail.

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