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Comment by seamanrob

8 months ago

Hey, I'm Rob, the CPO at Slack (for real tho, this is my 3rd time posting this so please don't flag :pray:).

This was a mistake. We're fixing it. We appreciate you, Hack Club, along with all of you that are Slack users following along :heart:.

(I'm a mod here - your posts didn't get flagged! HN's software was filtering them because posts by new accounts are subject to a few extra restrictions.

Fortunately a user vouched for your third try, which restored it, and I've marked your account legit now, so this won't happen again.)

No, this was a decision that had negative effects and it makes you look very, very bad.

But on the plus side you provided an excellent lesson to these teens and I'm sure they will consider the importance of trust, leverage, and incentives when dealing with other companies in the future.

It's not a mistake that you're only reachable when your bad business practices are so heinous they go viral. You are an executive at a company that saves money by not offering customer support except when there's bad PR or a lawsuit.

Are you going to be fixing that your billing system is not human-reachable, or are you just going to be fixing this one incident while leaving the broken system as-is for everyone who didn't go viral?

  • This is the new way of doing business. Rip off as much as you can until there is enough publicity around your bad behavior such that it may affect your bottom line.

    And then say sorry to convey some kind of human connection in the hopes you will be forgiven and the bottom line can be raised again.

  • >are you just going to be fixing this one incident while leaving the broken system as-is for everyone who didn't go viral?

    No answer means this.

Since this was a public facing mistake, will there be a post mortem including details about the blast radius, how many customers were affected and what steps are being put in place to ensure this never happens to a customer again?

I get automated billing mistakes, but a real human reviewed this case and demanded the money and the timeline. At that point, that is just a business practice.

  • The community here is very forgiving of software bugs, but why did the rep act that way? To paraphrase Warren Buffet, what are the incentives that directed that led to this outcome? Why did the rep in this case act so viciously?

    If Hack Club did pony up the $200k the rep would probably be compensated in some way. That would increase the propensity of a rep to strong arm with short deadlines and hold their 11 year chat history hostage even if it’s not the appropriate pricing for a non-profit.

    Since this is bad for Slack and Salesforce’s brand I imagine they’ll be putting in new mechanisms to disincentivize this in the future. When it comes to the rep getting paid they’ll become an expert at how to do it properly.

    • > Since this is bad for Slack and Salesforce’s brand I imagine they’ll be putting in new mechanisms to disincentivize this in the future.

      You are dreaming... look at all of the other posts on topics like this. It's going to continue to be business as usual until you have the social capital for a post that gets to the front page of HN or similar status elsewhere.

Thanks for showing up and owning the mistake.

While I'm encouraged by this response, I still feel a sense of fear that this fix is a one off, if you could speak to how this could even happen and how mistakes like these would be prevented in the future I'm sure the community would appreciate it.

  • I cannot guarantee that we won't make another mistake as we and our customer base grows. We're fallible!

    In this particular instance, this was the result of an oversight in our billing process, and we are returning Hack Club to its previous nonprofit pricing. We will be reviewing our billing and communications processes to provide nonprofits clearer guidance and adequate grace periods as they grow.

    • Out of curiosity, will you be facilitating them exporting their chat history? Like obviously you see that this wasn’t just a billing error, this was extortion under threat of losing eleven years worth of data.

      If you see this massive screwup as just a price issue that can be fixed by lowering their bill, you’ve missed what’s happened here. Your company has entirely obliterated any trust here, and the way to fix this is to acknowledge that and do everything necessary to help them migrate their data to a place where you aren’t holding a gun to their heads.

      4 replies →

    • > an oversight in our billing process

      So you have a billing process that includes a step where you extort the customer and demand substantial amounts of money or else you delete the customer's data on very short notice? Because that's one of the "mistakes" that your "billing process" made.

      There was no "mistake", this is how you operate, this is what you've already done in the past, and, the only reason you backtracked now is because this one blew up in front of a large enough audience, many of whom are potentially decision makers in their (large) companies.

      1 reply →

    • What I miss from these sort of apologies is an actual postmortem like the one we'd have for a software bug.

      What was this oversight? What caused it? What are you exactly doing to prevent it from happening in the future?

    • > I cannot guarantee

      You mean you won't guarantee. You could guarantee this if you invested in customer service. Choosing not to do so is a choice.

    • The reason you’re not providing details about the oversight like you should (this should be treated like a data breach, transparency = trust) is because you’d have to admit that this “oversight” was you meant to only exploit smaller companies that can’t cause a media ruckus like this. Prove me wrong.

    • No guarantees needed (and good on ya for this fix)!

      Def do encourage the post mortem with root-cause analysis & robust corrective action plan. Thanks for being here.

> This was a mistake.

This looks extremely deliberate to me. Are you seriously suggesting that one of your sales reps accidentally demanded $250k from a bunch of teenagers?

  • No I’m pretty sure they’re suggesting that the account got somehow flagged as a for profit account, and they consider that a mistake and are fixing it.

    I think you don’t have to find the least charitable interpretation for what they’re saying. There can be something in the middle.

    • There was a phone call, there was a human, this was not resolved until there was a public backlash.

    • So if it were indeed a for-profit account, it would also be okay to give them just a couple of days to "find the money" or otherwise lose 11y of history?

      2 replies →

>> Then, suddenly, they called us 2 days ago and said they are going to de-activate the Hack Club Slack, including all message history from 11 years, unless we pay them $50,000 USD this week and $200,000 USD/year moving forward (plus additional annual fees for new accounts, including inactive ones)

> This was a mistake.

Calling a customer and extorting them for $50k USD this week and $200k USD per year going forward is not "a mistake."

It is a business decision which your organization made and did not expect to be held accountable for same.

> We appreciate you, Hack Club ...

You have a very different definition of "appreciate", unless you are using it in the accounting sense[0].

0 - https://accountinginsights.org/what-is-appreciation-in-accou...

  • [flagged]

    • No, it's not 'hostile'.

      Behavior "give me now 50K and then monthly 200K" is called Racketeering.

      wikipedia > In the United States of America, racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.

      Did they offer new service and asked for more? No.

      Did they came with new calculation based on costs? No.

      They just insist on "more money or your operations are toast".

      Once executives and vice- clout get into the court on racketeering, just like al Capone was, things will go much better.

      1 reply →

    • > What an unnecessarily hostile take.

      I like to defend as much as the next person, but the defence from Slack ignores the approach.

      "It was a mistake" isn't enough to gloss over the trouble, as a service provider, they caused. What a rug pull, and to then perhaps blame it on a sales person isn't right. They saw a lot of users and tried to extort, no negotiation.

      Honestly though, what can slack do that can't be accomplished by a good old-fashioned mail list or IRC?

      11 replies →

    • "Slack changed the terms of a special deal we were given last year to charge us for staff and volunteers (not for every teenager coding), and we built programs around that special rate. "

      Not 14 years. Unlikely to be generations of execs.

      5 replies →

    • Perhaps this increasingly common attitude of "ethics don't scale" is a good reason to consider legislation that enable the breaking up of large commercial entities when they commit more than a certain number of scale related violations.

>This was a mistake. We're fixing it. We appreciate you, Hack Club, along with all of you that are Slack users following along :heart:.

Undoubtedly the only mistake here was this getting attention. I'm sure hundreds of other groups have had the same experience Hack Club did.

Thank you for responding and taking this on.

> We're fixing it

By this you mean making sure something like this won’t happen to ANYONE ever again, right?

I hope so and I hope that you will post about it so that you can somewhat recover from this certified PR disaster.

I had previously considered advocating for your product but sure as hell won’t as long as this situation isn’t thoroughly solved. It also prompts me to look into your other business practices before ever considering speaking positively about you again.

  • As I said in another reply, I cannot guarantee something like this won't ever happen again. We're fallible for sure. But I can guarantee we'll keep trying and improving.

    This was the result of an oversight in our billing process, and we are returning Hack Club to its previous nonprofit pricing while we work with them directly to ensure their workspace remains fully accessible. We will be reviewing and modifying as necessary our billing and communications processes to provide nonprofits clearer guidance and adequate grace periods as they grow.

    • I can see how the bill itself was a mistake, but the real scary thing to me is the timeline. Seven days from action required to deletion of all your data isn’t reasonable under any circumstances.

      2 replies →

    • Hey. I think we all accept that all companies are inevitably fallible. What companies can be consistently good at---but very few take the effort to excel at sadly---is customer support communication. Honestly, reading TFA, it's still conceivable that putting Hack Club in the wrong pricing tier was an honest error on your part, but the communication was horrible to say the least. As others already pointed out, seven days to pay-up or your data goes poof sounds more like ransomware than a company trying to meet a customer half way.

      And ofc, it has C-level attention now because it blew up on HN. Sorry but this screams damage limitation. For every Hack Club, you wonder which other non-profits suffered this "mistake" but didn't have the social media reach to get C-level treatment.

      (Speaking as someone who spent this week being gaslit by Amazon and Google support. :mad: )

    • A postmortem — software bug fix please. 1. Why did this happen? 2. What was the root cause in billing that caused this? 3. What are you doing to fix the issue that will ensure that if this error was to happen it escalated to the right medium expediently? What is the SLA on disputes?

      One would like to know why were https://slack.com/help/articles/204368833-Apply-for-the-Slac... changes not applied to billing this time around?

      With great power comes great responsibility.

    • @solarkraft: This response you got from Rob is why its important not to treat this sort of outreach as if it's being made in good faith when it clearly is not. It is precisely what Rob and the crisis communication team he's working with hopes for.

      Let's walk through what's going on a little more clinically in this response from Rob that was shaped like an answer:

      Rob's comment looks like a good response, but only in form. Structurally it mimics apology in syntax but the batteries are missing. He starts with something a little self-effacing, a little "ownership", to bring down dehumanizing walls. All fine, if you're sincere. But Rob didn't choose to respond to a direct question and there were plenty. If he had, the mismatch between his words and the reality where his use of "oversight" did itself elide over a phone call demanding $50k in five days... that would sound absurd. By replying where he did, he gets the appearance of substance without risking contradiction when he's a no-show on any followups after this.

      For crisis communication, getting a question for Rob to respond to like this works better actually than getting incoherent rage. That would be easy to dismiss as "unwilling to engage in discourse". But a comment like this can be answered harmlessly precisely because the commenter is looking to have a discourse, and socially acceptable discursive pragmatics don't require an immediate and comprehensive answer. The established pragmatics allow for a response like Rob's without seeming immediately absurd. As a result, he can be the more grounded human personality, less distant than even a sincere CEO of a multi-billion corporation would look, and soak up blame without conceding anything or answering any questions.

      That's Rob's role here, to be the face to blame. This is hugely important in a crisis like this where the situation was highly avoidable and the damage is reputational. Blame. Not to be accountable: that is different than blame, though they overlap and get confused. Blame is hard to do in either direction without a specific face, and so we have Rob. Rob is the blame face. Not the architect of the policy, not the one who made the phone call, but the human buffer that makes Slack look responsive without putting someone in the firing line.

      It's worth watching for this dynamic in other crises. Even if a CEO does hang out for more than the single copy-paste in the comments that Slack's did, it isn't proof of sincerity, but its absence sure does say the reverse.

      The problem is that PR has learned how to simulate sincerity since the literal SCCT Theory playbook of the '90s. Unfortunately the the lesson learned wasn’t "do better" it was "signal better". But hope springs eternal, here's a paper & data set that could be part of the foundation, a a small bit of RLHF, of a state of the art corporate BS detector. It's interesting reading either way: https://www.sciencedirect.com/science/article/abs/pii/S03638...

Hi Rob, as head of product if you’re sincere in this then maybe check in with the SVP of North American sales, see if your sincerity is founded on something more than well-wishes. It would hardly be the first time in corporate history that a sales division was wagging the dog without the dog knowing.

Heck that’s an interesting thought, why isn’t the SVP here commenting instead? If you can’t find the new one then maybe check in with Kevin Egan, congratulate him on the new CRO job, see what his take is on this being more of a mistake than standard operating procedure. Maybe have his reminisce about his sales days from way back at Oracle, where sales and revenue optimization is known for their ethical practices.

How many other 'mistakes' are there though? How many others are being exploited but just foot the bill?

Great you are owning the mistake and fixing it.

May I suggest a public post mortem so that the doubters can see that you went after the root cause?

Might be interesting for HN as well as big companies have mistakes in policy, teams and automated collections...

  • There is about as much ownership here as a squatter in a two-bedroom apartment. They are apologizing because they got caught, not because they genuinely believe they messed up.

    • Someone suggested the possibility that the org status change which moved them out of the "not for profit".

      After this the billing department might just get a list of companies that are behind and start a process.

      2 replies →

Hi Rob, I'm Ian, CEO at Mattermost. Apologies for repeating the question from jrflowers, but I couldn't resist:

>Out of curiosity, will you be facilitating them exporting their chat history?

Mattermost is self-hosted and enables full data control.

There's some organizations that want to move to Mattermost for various reasons.

It's important for them to bring along their data.

Wondering what your opinion might be?

  • cancelled our company's slack plan when all this news dropped. We're looking at Mattermost, the reviews are really good

  • What a weird attempt at injecting your product marketing.

    • Although transparently self-serving, this seems like a perfect time to say, "Hey, this couldn't happen to you at Mattermost because we A) have a free tier, and B) allow you to export your data."

    • This is hacker news, hackers are ceos, too, and have a very relevant product or service to sell. If anything he didn’t do it enough in this thread.

    • I was wondering about what options exist for Slack, and Mattermost along with a few others do seem to have a completely free layer.

Thank you for addressing this issue. Could you also provide feedback on the accusations that data export is only available for high-tier pricing plans and requires Slack's explicit approval?

You could start by explaining what exactly went wrong. Not doing that would be a mistake.

It backfired badly, and now it was a mistake... Seems like posting it helped giving it some sort of resolution

> This was a mistake.

Yeah, right. Tell us more.

You mean like it has become a mistake when the story about it broken up and went viral?

But if Hack Club did not complain about it, you would have happily took and kept taking their money?

That kind of a "mistake"?

In all seriousness, why should anyone believe what you are saying?

It seems to me that your story about a "mistake" is just as plausible as this kind of behavior simply being Slack's business strategy. Be ambiguous. Change the terms of the sale after the sale. Try poking. See which tactics works. If someone bites, take advantage of it. If they complain, call it a mistake and do damage control. Collect profits. Rinse and repeat.

> This was a mistake.

I would be not at all surprised if Benioff said the initial deal was a mistake and you’ve fixed it now.

Nevertheless glad to see someone here trying to put out the fire, even if in the grand scheme of things it’s probably too late.

How many others get this treatment without the publicity, y'all still showed your colors. Enjoy your business practices.

We all work at companies and know how it works - you get away with what you can. You bet wrong and nobody will believe otherwise. If it was a mistake, it’s fireable.

  • For whole chain of command up to CEO and board. That is least we should ask each and every time.

Honestly this rep and/or the rep's management should be held accountable. This is an oversight that comes from end-of-quarter pressure but it doesn't make it excusable.

  • This. The fuckup sounds like it started on the Slack account team's end (or their sales leadership, if it was pushed from above), so that's where consequences should start.

What you are is a parasitic liar who's reacting in disaster control spin mode. Extorting these people like that via phone call isn't a mistake, it's an obvious case of directed policy... that then got publicized and triggered some backtracking from a shitty company content with indifference.

Since everything is being fixed, does that mean that "Hack Club" is not going to move to mattermost after all?

  • Yep, we're not! (From a hc'er). Zach announced that slack has gifted us half a decade of enterprise+. Whilst slack's behaviour is worrying, it probably wouldn't make sense to cut all ties. Either way- another 5 years to migrate! :-)

Can you explain the nature of the mistake?

Like someone who didn't know or a change that they were lumped into?

It wasn’t a mistake, your sales incentives led to this behavior and you got caught off guard by the negative publicity.

Here’s exactly what happened: A human account manager had to meet their 3rd quarter sales goal and sent the demand for more money. It’s less than two weeks from the end of the quarter, do you really think nobody on HN is in sales and also facing the same pressure?

This is such a transparent lie that I’m surprised you took the time to post it.

  • It isn't two weeks until end of quarter. Like many businesses, Salesforce's fiscal calendar runs Feb 1 to Jan 31. Slack's did, too, before the acquisition. Q3 ends on Oct 31.

    • The time to complete the paperwork on a $200k/yr deal is longer than 2 weeks. Especially if the customer is expected to fork over 4000% more than what they were paying.

      1 reply →

    • Fair, it’s 6 weeks until the end of the quarter.

      There’s still a human account manager involved, it wasn’t an automated billing error.

  • Exactly — anyone who has worked in sales for a New York minute knows that any six figures deal will have a human account manager assigned to it.

I definitely heard about another nonprofit group that got similarly punted last quarter, or maybe the quarter before... shame I can't remember it now.

so you couldn't respond to your client but had enought time to make an account and post here because of the blowback?

Feeling incredulous that this "mistake" ever would have been rectified had it not been for the public attention this is getting.