Slack is evil
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Hack Club alleges Slack demanded an additional $50,000 immediately and $200,000 per year, threatening to deactivate its workspace and delete message history if the terms weren’t accepted.
Briefing
Slack is drawing sharp backlash after a nonprofit, Hack Club, alleged it was pressured to pay far more or lose access to its Slack Workspace and message history. The dispute centers on a reported demand for an additional $50,000 “this week” and $200,000 per year, with the threat of deactivation and deletion of all messages—an escalation that many readers would interpret as coercive, even if the legal term “extortion” is disputed.
Hack Club has used Slack for communication for 11 years. A few years earlier, it reportedly agreed to a $5,000 per year arrangement to keep operating. The new pressure, according to the nonprofit’s account, did not come with a straightforward transition plan like “move to a standard business plan” with clear billing terms and a timeline. Instead, the reported ultimatum—pay immediately and annually, or face shutdown and data loss—frames Slack’s approach as less like a pricing update and more like a take-it-or-leave-it demand.
Beyond the specific nonprofit case, the transcript ties the alleged behavior to broader complaints about Slack’s product and pricing. The speaker calls Slack “cartoonishly villainous” and argues that the company’s business tactics will erode trust and push communities away. Pricing is a major theme: Slack is described as extremely expensive per user, even for accounts that may not actively message. The transcript compares Slack’s per-user cost to Netflix and claims Slack is “more expensive per user than Netflix,” while also criticizing Slack’s reliance on Electron—implying a lack of native app quality across operating systems.
The transcript also contrasts Slack with Discord, arguing that Discord better fits community needs and is often the default choice for groups, including Hack Club’s mission of teaching teenagers to code. The speaker suggests that if communities are building around learning and engagement, they should avoid paid, centralized services that can change terms abruptly or threaten data access.
A separate example is used to illustrate perceived overcharging: the transcript references a $120,000 per year payment for a chat feature tied to Nomad List, where message history would be severely limited without the paid tier. The takeaway is that Slack’s monetization model can effectively gatekeep history and functionality behind large recurring fees.
Finally, the transcript situates Slack’s actions within corporate ownership, noting that Salesforce owns Slack and expressing skepticism toward Salesforce’s approach. The overall message is that Slack’s combination of high pricing, platform friction, and ultimatum-style demands—especially when they threaten a nonprofit’s continuity—could become the company’s undoing as communities migrate to alternatives like Discord.
Cornell Notes
Hack Club, a nonprofit using Slack for 11 years, alleges Slack demanded an extra $50,000 immediately and $200,000 per year, threatening to deactivate its Slack Workspace and delete message history if the payment wasn’t agreed to. The transcript contrasts this with an earlier $5,000 per year agreement and criticizes the lack of a simple transition to a standard plan. It also argues Slack’s pricing is unusually high per user and that its product experience can be frustrating (including long-standing connection issues). The broader implication is that communities—especially education-focused groups—may be better off using platforms that don’t risk sudden shutdowns or data loss over pricing disputes.
What specific ultimatum did Hack Club reportedly face from Slack?
How does the transcript frame the difference between an earlier agreement and the new demand?
Why does the transcript connect this dispute to Slack’s broader pricing and product strategy?
What role does Discord play in the transcript’s argument?
What example is used to illustrate perceived “gating” of chat history behind payment tiers?
Review Questions
- What makes the Hack Club situation feel different from a typical price increase, according to the transcript?
- How does the transcript use pricing comparisons (e.g., Netflix) and technical complaints (e.g., Electron, websocket reconnects) to support its overall critique?
- What risks does the transcript suggest communities face when they rely on centralized paid communication tools?
Key Points
- 1
Hack Club alleges Slack demanded an additional $50,000 immediately and $200,000 per year, threatening to deactivate its workspace and delete message history if the terms weren’t accepted.
- 2
The transcript contrasts the alleged ultimatum with an earlier $5,000 per year agreement, portraying the new approach as more coercive and less transparent.
- 3
Slack’s pricing is criticized as extremely high per user, including for accounts that may not actively participate in messaging.
- 4
Usability complaints—such as long-running issues with reconnecting websockets—are used to argue Slack delivers poor value for its cost.
- 5
The transcript argues communities, particularly educational nonprofits, should consider alternatives like Discord to reduce the risk of sudden shutdowns or data loss.
- 6
A separate example involving Nomad List is used to claim that chat history and functionality can be heavily restricted without large recurring payments.
- 7
The transcript links Slack’s behavior to corporate ownership under Salesforce, expressing skepticism about the company’s incentives and approach.