Stop the Fight

Some of those philosophical differences involved matters of style: Just what constitutes professional behavior at work? Heiferman is a "student of life" in organizations, and he understands the power of symbols. He believes that how people conduct themselves at work - what they wear, how they talk - shapes how a company conducts itself in the market. "Symbolism can wake people up and make them think," he says.

During one retreat, for example, Heiferman insisted that everyone - including i-traffic's three leaders - wear white lab coats while they discussed the need to be "more scientific" about marketing on the Web. "I wanted to hit people over the head with the idea that if we use blue instead of red in a banner ad, it had better be because we've tested it and found that blue gets better results," Heiferman says. Dintrone thought the idea was "hokey"; Meluso thought the coats were a waste of money. "It turned out to be a lot of fun," Meluso says. "It was a great idea."

Other differences involved timeless questions of policies and procedures. Back in 1996, Meluso asked Heiferman if he could see the company manual. In response, Heiferman sent an email to the entire staff, which, he said, constituted the company manual. It was one sentence: "Use your best judgment." Meluso fought with Heiferman. What if one staffer accused another of sexual harassment? Wouldn't the absence of a policy leave the company liable?

For more than a year, Heiferman wouldn't budge. Like most Internet startups, i-traffic never had official policies about vacations, sick leaves, or start times. "It was a matter of principle to me," Heiferman says. "Environments with the fewest rules create the most innovative thinking. The only way we'll succeed is if we keep thinking outside the box."

The stalemate started to break when Meluso, who was responsible for personnel matters, hired a human-resources consultant. She noted that i-traffic was approaching 50 employees, and that companies with more than 50 employees must comply with a list of equal-opportunity and workplace regulations, which usually means notifying people of their rights in writing.

So Heiferman and his partners hit on a solution: The company manual would be two documents. One would lay out the legal niceties. The other--which Heiferman insisted on calling the "official" manual--would lay out the mission and core values. "I don't see it as a compromise," Heiferman says. "I see it as a better solution. We have a policy manual that is inspiring, plus we've fulfilled our legal obligation."

That agreement was the first in a series of accommodations that has changed the dynamics inside i-traffic. Last year, for example, Heiferman proposed that the company reinvent how it charged clients. Rather than base fees on commissions, he proposed basing fees on "bounties"--a percentage of the dollars that i-traffic's work generates. Tying fees to sales, page views, or other tangible metrics, Heiferman argued, would send a message that i-traffic believes in its work. "The old saw of this profession is that it's more about golfing with the right person than getting results," he says. "Let's overthrow that world by making ourselves accountable."

It was a radical idea. But Meluso and Dintrone didn't balk. Their major concern was to ensure that the company met its basic expenses as it navigated such uncharted financial waters. Their solution: Charge clients lower-than-usual fees, plus receive performance bonuses for meeting sales targets or other goals. About half of i-traffic's clients now use this fee structure, and it's reshaping the company's business. "We've taken some short-term hits for doing these arrangements," Heiferman says. "But we've turned the corner."

Heiferman has turned a personal corner too. He's learned to value the experience of his partners. "I'm convinced that this company would have faded away into pointlessness if I hadn't pushed my vision," he says. "I'm also convinced that we'd have derailed if Ed and Pete hadn't asserted their points of view and perspectives."

Pamela Kruger is a contributing editor, and Katharine Mieszkowski is a senior writer at Fast Company.