The company started small and fruga

The company started small and frugally, building its first prototype of what became the Trusted Advisor for only $100,000. Development was swift, and the first prototype was ready in May 1997. “Creating the prototype for not a lot of money was useful when we went looking for additional funding. Everyone was impressed with how much we had gotten done for so little money,” Nappi said. In 1998, InSite raised $1.5 million from angel investors and increased its staff to 15 people.
Building the prototype began with the germ of an idea, informed by market knowledge, then tested extensively by prospective customers. “We wanted to make sure we design process,” Nappi said. InSite’s fourth employee was an expert in user-interface design who had designed CD-based games for Toy Story and the “Where in the World Is Carmen Sandiego” series. “We wanted a product that would be immediately accessible, just like a game, not something you’d need an instruction manual for,” Nappi said.
InSite’s initial target markets were any sales situation that involved a product with multiple decision options and a desire for individualized service. InSite had good receptivity from companies in electronics, financial services, and gift goods. It saw prospects in wholesale computing, petroleum, plastics, pharmaceutical, and medical industries as well (see figure 6.1 for InSite’s customer prospects).
Understanding the need for a product like Trusted Advisor implies understanding the crucial differences between on-line retailing and traditional in-store retailing. InSite saw that companies would need to engender trust among customers and provide some form of personalized service if those companies were to fulfill their e-commerce dreams.