It’s not you, it’s me. This relationship has had its share of ups and downs. Yes, we’ve become known as a Magento shop. Yes, change is scary. But we want to date other business models and platforms. I hope that we can still be friends.

A Brief History
Elias started as a couple of guys doing after-hours freelance web work. One customer wanted an ecommerce site and liked the features in Magento’s beta version. It took forever to code because of limited documentation, but we felt that the market was ripe for a new open-source ecommerce system. Our total bill to the client: $5k. When you factor in time we probably definitely lost money; but we gained new skills in something poised for growth.
Over the next two years we took on about 30 Magento projects and fostered relationships with stellar developers. But it wasn’t smooth. The first quarter of 2010 ended $10k in the hole because of two projects that went well over their deadlines. Tensions were high. Clients became increasingly frustrated and we lost money each day the projects dragged on. Plus we couldn’t accept new clients without more bandwidth.
Q2 made up the deficit. I attribute this to three things. First, we hustled. Long hours were spent churning out work for several new customers. Second, our business transitioned from a fixed-estimate pricing schema to a more agile hourly rate. This hedged us against a recurrence of those Q1 project misquotes. And third, we added products. We had amassed 16 Magento extensions at this point and put 8 of them on a basic Magento store install to see what would happen. By June the store was generating almost $2k/month – 90% of that tied to one module. The store had potential, but it needed a lot of work to improve on the alpha-esque quality.
Tipping Point
Magento-based work took its toll on our team. We might have pulled through Q2 in the black, but our personal income was laughably poor for the software world. Compounded on top of this was growing dissatisfaction from our Magento guru, Lee. He was a capable developer but didn’t like being an isolated coder on a virtual team.
Lee and I grew up together in the same small town. He was a friend long before either one of us knew what PHP is. So it was important to our ownership team to help him figure out where he fit without forcing him to continue doing something he disliked. Lee ultimately felt that stepping away from coding and the startup environment was the right call for his family. Eric, Luke and I committed to support and cheer him on even though losing him meant shaking up our business strategy.
Where do we go from here?
Over the past 60 days I’ve looked at several ecommerce and CMS communities, talked to development leaders in the Magento community about forking, documented the elias 10 step website process, and littered my office floor with papers covered in research notes. I’m always open to listening to new opportunities (unless you’re an offshore company spamming me with grammatically incorrect offers for cheap labor). Drop me a note if you have suggestions for a new product or approach: josh {at} eliasinteractive.com
Practically, the module menu redirects to a store that Lee is managing until arrangements are finalized with a buyer. Magento-related leads are being diverted to trusted colleagues for now while our team is working hard to finish new projects in design/development. A refreshed elias site layout is in the works for this month and I’ll discuss strategy in an upcoming post.

Pingback: Breaking up with Magento « Brandlive Crowdsourse
Pingback: How to jeopardize your business with ecommerce (and what to do when you’re in trouble) | Elias Interactive
Pingback: How we almost killed our service business (and then recovered) | Elias Interactive