Quantcast
Channel: Podcast
Viewing all 295 articles
Browse latest View live

The 17 best new podcasts you should be listening to right now

$
0
0

podcast-2-dope-queens

From politics to comedy to true crime, there is truly a podcast for everyone.  Though podcasts have been around for awhile, the last year has seen a boom of new shows that are using the medium in exciting and innovative ways. 

INSIDER has rounded up our favorite podcasts before, but we're back to share all the new shows that have been released in the months since. 

Keep reading to see the best shows you should listen to while commuting, doing the dishes, or just plain relaxing.

First up is "S-Town"— the new podcast from the folks behind "Serial" and "This American Life."

"S-Town" tells the story of an enigmatic man named John B. McLemore who emailed "This American Life" producer Brian Reed and asked him to come to Alabama and investigate a murder. The real story winds up spiraling around John B., his small rural town, and the people in his life, but we won't say anymore here. Just know that whatever expectations you have, "S-Town" will probably find a way to subvert them.

This is a serialized story, so start at "Chapter I" and go from there.

Learn more about "S-Town" here.



"Heavyweight" is another podcast featuring great human stories.

Host Jonathan Goldstein created "Heavyweight" in an effort to help people (and sometimes himself) face their biggest regrets, what-ifs, and unresolved relationships. In one episode, this means confronting an ex about the end of a relationship, in another it means helping a friend fulfill his father's dying wish to have his ashes scattered at the 18th hole of a golf course. 

Our favorite episode is called "Gregor" and follows along as a guy tries to get back a set of CDs he lent to a friend 20 years ago. But the catch? That friend is now a famous musician.

Learn more about "Heavyweight" here.



"2 Dope Queens" is a can't-miss show from comedians Phoebe Robinson and Jessica Williams.

It's nearly impossible to encapsulate the range of topics covered in "2 Dope Queens," but as WNYC's official description puts it: "Join the 2 Dope Queens, Phoebe Robinson and Jessica Williams, along with their favorite comedians, for stories about sex, romance, race, hair journeys, living in New York, and Billy Joel. Plus a whole bunch of other s---."

And yes, it's not new, but it wasn't on our last roundup and the third season just began in early April, so now's the time to listen if you haven't yet.

Learn more about "2 Dope Queens" here.

 



See the rest of the story at Business Insider

The founders of Warby Parker reveal how they run a billion-dollar glasses brand with two CEOs, and why Amazon won't crush them

$
0
0

Warby Parker, David Gilboa and Neil Blumenthal

Neil Blumenthal and Dave Gilboa met as MBA students at the University of Pennsylvania and cooked up the idea for Warby Parker, an eyeglasses retailer that would undercut the sale of glasses by hundreds of dollars and sell them online rather than in physical stores.

Seven years later, they're the co-CEOs of a $1 billion-plus brand and they've sold millions of pairs of glasses in the US.

Business Insider caught up with Blumenthal and Gilboa for an episode of "Success! How I Did It," a podcast highlighting the career paths of the world's most accomplished people.

Gilboa and Blumenthal explain:

  • How they launched and immediately sold out of everything, with a 20,000-person wait list
  • How they operate with two CEOs and what each one does
  • Why they try to take 90 minutes a day to do nothing
  • How they scaled a company to millions of pairs sold and 1,000+ employees as first-time founders
  • Their future IPO plans (2018?)

You can listen to the interview with Warby's co-CEOs below, for the 4th episode of "Success! How I Did It," a Business Insider podcast that follows the career paths of some of today's most accomplished people.

Check out earlier podcast episodes with: 

Subscribe to "Success! How I Did It" on iTunes to hear the latest episodes.

The following is the podcast transcript, which has been edited for clarity and length.

Losing a pair of $700 glasses in Thailand and refusing to buy another pair turned into a big business idea

Alyson Shontell Neil Blumenthal Dave Gilboa Warby Parker CEO founder podcastAlyson Shontell: Today with us we have Dave Gilboa and Neil Blumenthal, who are co-founders and co-CEOs of Warby Parker, a glasses company that's been valued at what, more than a billion dollars these days?

David Gilboa: There are rumors out there.

Shontell: The unicorn status has been achieved, we can just say that. I want to go back to where you two first met, at Wharton.

Neil Blumenthal: We were full-time students getting our MBAs in Philadelphia. We had become close friends in a way that business school often does, and Dave had lost a pair of very expensive glasses. How much did you pay for them?

Gilboa: $700. I'd been working in consulting and finance, then took a few months off to backpack around the world. I was in Northern Thailand and happened to leave my glasses on a plane. They were my only pair of glasses. It didn't make sense to me that I was going to have to pay $700 for a new pair. So I got to campus, was a full-time student, and didn't have glasses my whole first semester. I was complaining to anyone that would listen, wondering why glasses were so expensive.

Shontell: You didn't have glasses for the whole first semester? How did you see and do any work? That seems like a terrible plan.

Gilboa: I did a lot of squinting and I wore contacts sometimes ... Then I started chatting with Neil, who'd spent a bunch of time in the eyeglass world and light bulbs went off when we started learning more about some of his experiences.

Shontell: I didn't realize you had been in the glasses world before, Neil. Dave, didn't you have a bioengineering background? You had history, Neil?

Blumenthal: I focused on international relations and history. Not exactly what you'd expect to start a tech company or a fashion label. But after school I thought I wanted to work at the State Department. I ended up working for this amazing nonprofit social enterprise that would train low-income women to start their own businesses, giving eye exams, and selling glasses in their communities throughout the developing world. So I spent five years proving out this model, because I don't think most people realize that there are close to a billion people on the planet who don't have access to glasses. If you think about a tool that improves productivity, that enables somebody to learn and then enables somebody to work, it's one of the most effective poverty-alleviation devices out there.

Shontell: So you guys put your heads together, you have this background experience. You're not able see, and this aha moment happens. There were four of you, right?

Warby ParkerGilboa: Yes, the other two cofounders in addition to me and Neil are Jeff and Andy. We spent about a year and a half really formulating the idea that eventually turned into Warby Parker… I'd been wearing glasses since I was 12. I'd never heard of a company called Luxottica, but they own brands like Ray-Ban, Oakley, Persol, Arnette, and dozens of others. They have the exclusive eyewear licenses to most major fashion labels like Chanel, Prada, Dolce & Gabbana, Ralph Lauren, and DKNY.

Most consumers don't realize that when you walk into a Sunglass Hut or a Lens Crafters, you see 50 different brands of glasses, but all those brands are owned and produced by the same company that also owns the store that you're standing in, that also owns the vision-insurance plan that you're using to pay for those glasses. It just didn't make sense to us that that was the only way that you could design, manufacture, and sell glasses to consumers.

Before e-commerce was available as a distribution channel, it was really hard to create a vertically-integrated brand.

Shontell: Explain what "vertically integrated" means.

Gilboa: For us that means that we're designing the products, we're doing all the design in-house, we're producing them under our own brand and selling them directly to consumers without any wholesale or any kind of middlemen along the way … As a result we'd be able to cut out all the unnecessary licensing fees, all the unnecessary markups, and offer a product that normally cost several hundred dollars and offer it for less than $100 to consumers.

Shontell: So you all got to work and the first money you raised was actually from Wharton. You won a business competition there — it was $2,500 or something?

Blumenthal: We got a few awards from the school, which was super helpful.

Shontell: They must be really, really glad they made that investment now. They're going to get a nice return, if they haven't already.

Blumenthal: Well, they were really kind, and it was actually a gift...

Gilboa: It was a grant.

Shontell: Oh no! Poor guys. Missed opportunity.

Blumenthal: We try paying them back in internships.

But what we did was, the four of us — Jeff, Andy, Dave and I — got together and said, "How do we want to do this?" We decided that we all wanted to be equal partners. We each committed to putting in our life savings, which at the time was about $25,000 and if the company really demanded it, we would each put in an additional $5,000. Of course it did need that, so we started the business with $120,000. That enabled us, on a shoestring, to design our first collection and produce an initial inventory of frames. We designed a website because we needed some place to sell our glasses. Then we hire a PR firm to help us get some attention. When I say do this on a shoestring, we used to go to TD Bank, steal pens, and steal office supplies from other people.

We were able to get meetings with Vogue and GQ. We were building this fashion brand and we wanted to be in the best men's book, which was GQ, and the best women's fashion book, which was Vogue. We launched and the company just took off like a rocket ship.

Shontell: It's pretty hard to get Vogue interested in a startup no one's ever heard of.

Blumenthal: We were really fortunate for a couple of reasons. One is I think founders and CEOs often take credit for being the smartest people in the world, but so much is serendipity and timing. We were one of the first of these vertically-integrated brands, so the story was novel.

We have this Home Try-On program where people select five frames, then we ship it to you free of cost. That was a completely novel idea that writers could write about. I think we have a very specific design aesthetic and our frames were beautiful. They were made from and continue to be made from some of the most premium materials like cellulose acetate, that we work with a 150-year-old family-owned Italian company. So we had all the building blocks there. Of course we had our social mission.

Shontell: That was in place from the beginning? That's where you give a pair of glasses away for every one that's sold, right?

Blumenthal: From day one. Dave and I and Jeff and Andy ... It's one of our first conversations: "What kind of business do we want to build?" We wanted to build a business that was going to have a positive impact on the world where we were going to be excited to come to work every day. As we were thinking about what does that actually mean in practice, we thought it's an inherent public good to bring down the price of a pair of glasses from $500 to $95 here in the US, but we knew that even at $95 there were lots of people who still needed glasses who didn't have them. So we decided, "Let's commit to distribute a pair of glasses for every pair that we sell, because that would actually be impact."

Shontell: So that's expensive, especially for a shoestring budget like you were saying. How important do you think to getting traction is a social component like that? It's a strategy that Tom's has famously used, a couple different brands have famously used it.

Gilboa: There's no question that we'd be more profitable if we didn't have a social mission built entirely ...

Shontell: When you say profitable, are you profitable?

Gilboa: As a private company we don't really talk about that. We've had periods of profitability. We're investing in a lot of growth right now. There's no question that a bottom line would look better in the near term if we didn't have these additional expenses. But we really do it as the best long-term return we can get on those dollars, understanding that we're having an impact. We've distributed millions of pairs of glasses to people in need around the globe and so seven years in, have already had a pretty significant impact.

How to get featured in Vogue and GQ when you launch — and then sell out of everything with a 20,000 person waitlist 

warby parker sohoShontell: I just wanted to go back a little bit to how you all started getting traction in the first place. I'm sure the magazines helped, but as we often find, you can get a bump in press and then you have to maintain that. So what did your traction look like? When did you actually have a lot of sales rolling in and know that this was going to stick?

Blumenthal: When we got those features in Vogue and GQ, it was literally that moment that the business took off. We had actually ... Our website wasn't ready to launch and the fashion director at GQ calls us up and is like, "Guys the magazine's going to hit newsstands any day now, where is the website?" Because we were going to be in the March issues of GQ and it was February. We thought, "Oh, we have a whole month." Just to show you our naivete, it was like, "No, the March issues comes out in February." We literally scrambled, got the website up. We ended up hitting our first-year sales targets in three weeks — sold out of our top 15 styles. Had a wait list of over 20,000 people. It was mayhem and the question is, "How do we maintain that momentum?" That was all about customer experience, so how do we make every single person have an exceptional experience, even when it's a crappy one?

To this day, you call Warby Parker and a human being answers the phone within six seconds. We have a net promoter score, since inception, in the 80s. I think right now it's 84. For those who don't know, net promoter scores is a measure of satisfaction to give you a sense. Cable companies have negative net promoter scores and most other optical retailers are in the single digits. So when we make people happy, they're more likely to tell other people about us. Word of mouth since inception has been the No. 1 driver of sales for us.

Shontell: If you all are this successful right out of the gate, I'm sure Luxottica, when they hear about you, is not very pleased. What was your first interaction with them like? I'm assuming they tried to either crush or bite you.

Gilboa: Their former CEO flew up from Milan to meet with us pretty early on in the business, I think a couple of years in. Neil and I went to meet him at their corporate offices. We kind of told the team half-jokingly, "Here's the address we're going to, if you don't hear from us in two hours, send the cops in." They're certainly aware of what we're doing. It's a massive company and it's an even bigger industry. Even though we're growing quickly and taking share, they have their established business that's still doing well and I think there's plenty of room for more than one player in the space.

How to run a billion-dollar business with 2 CEOs

Dave Gilboa Neil Blumenthal Warby Parker CEOsShontell: An interesting thing that you all did when you were setting up your business is, you're both here, you're both still co-CEOs. Sometimes people do that for a little bit, sometimes not at all, usually it's just one. So how does this work? I think I saw you joke on Quora that you flip a coin when you disagree?

Gilboa: There are four of us who started the business together. We were friends first. We got a lot of advice from people, really smart people who told us never start a business with friends, you guys are going to end you up hating each other, maybe suing each other. Four founders is way too many, especially you guys have overlapping skillsets. There's not like there's a technical person and a designer. We said, "Yeah, but we really trust and value everyone's contributions here. Let's just figure out how we can be thoughtful about it."

That started, even thinking about future repercussions, so we said, "OK, we're all going to be equal partners here, but let's set up a vesting schedule so that if ... There are so many opportunities at business school, or as we get into this maybe one person decides they want to pursue something else. They should get credit for time served." So we had a structure that got all four of us vesting through graduation and also set up some formal structures around feedback. We had 360 reviews even when there were four of us. We'd go to our favorite bar and ...

Shontell: How does that work?

Blumenthal: It was a little awkward at first.

Gilboa: We'd have one person in the hot seat talking about how they think things are going. Then the other three people would chime in.

Blumenthal: If you were going last, that's when you really got it.

Shontell: Yes, because everyone's been building on what you've been saying against them for the last half hour.

Gilboa: And a number of us had worked at places like Bain & Company where they have really formalized feedback processes. So we tried to bring in what we thought was effective from some organizations that we'd been a part of and build that into the foundation of the team when it was just the four of us.

So we launched the business in February 2010. We graduated that May and at that point, Jeff and Andy left day-to-day roles. There are still all four of us are on the board. Neil and I, we're going to stay on to run the company and we had been friends first, then had been operating as four equal partners. We discussed a bunch of different structures that could make sense. Does it make sense for one person to be CEO, the other chairman of the board? One person CEO, the other president? Do we even need titles at all?

We realized that the most effective way to work together is to just continue how things had been going and just think of ourselves as partners. But we wanted to make sure it wasn't confusing to the team as we hired people and wanted to avoid a situation where, "If mom says no, go ask dad." We tried to be really thoughtful and make sure that every department, everyone in the organization only has a line of reporting into one of us. So we each have six or seven departments that role up into each of us. Effectively it works more like a Venn diagram where if there's a major decision about strategy, or brand, or e-commerce, or where we're putting retail stores, we're both involved.

Shontell: It sounds like no investors were scared away by this either. I mean, you've raised hundreds of millions of dollars at this point. I guess all they really care about is, are you selling stuff? Are the numbers there?

warby parker dave gilboa neil blumenthalBlumenthal: Frankly, the proof was in the pudding. We didn't raise capital until about a year and a half after launch, when we completed our first round. We had all this success — "success" I have air quotes up because it was only a year and a half. It was clear that the business model was working, we had a brand that resonated, so I think one of the things investors always look at is the team.

Shontell: What do you think is the most critical thing you all did in that first year to really cement yourselves? Was it that press? Was it going to GQ and Vogue? What was the thing that you think made it that you were going to work as a startup?

Blumenthal: I think our success does start with the fact that this was a solution to a very real problem. If you asked people, "How much did you pay?" for their glasses, they lower their shoulders, they get a little sad and embarrassed by how much they've spent on eyeglasses. This was a real consumer issue.

The timing worked when e-commerce was on the upswing. We were one of the first digitally native or vertically integrated brands. This was also a time where, before Facebook had fully monetized ... I don't know if people remember, but there used to be these fan pages and you would try and get people to like your page. With our Home Try-On program in particular, we saw so many customers would get their Home Try-On, get their five pairs of frames at home, try them on, take pictures of them and then post it to Facebook and say, "Hey, which frame do I look best in?" So there was this viral nature to our business that we didn't have to pay for early on. Again, there was some luck there from a timing perspective.

Shontell: You all at this point have sold over a million pairs. That's dated information I believe. So what's the latest that you can share?

Gilboa: Again, we don't share much about our financials. What we announced was that we've distributed over 2 million pairs of glasses through our "Buy a Pair, Give a Pair" program.

Shontell: A million for you and then a million that you give away would be the implied.

Gilboa: No, multiple millions that we've sold and multiple millions that we've distributed to people in need.

How to scale a company to 1,000+ employees and build good corporate culture when you've never been a CEO before

Warby Parker officeShontell: What have you learned scaling a company to a thousand-plus employees? Hundreds of millions raised. That can't be easy to do the first time around. How have you figured it out?

Blumenthal: One of the things that we decided early on was that, we're building a brand and a brand is not just a logo. It's not just a visual identity. A brand is a point of view and that point of view needs to be lived. It really comes down to the culture of the company right?

When somebody joins Warby Parker they get a copy of Kerouac's "Dharma Bums" because the name Warby Parker comes from two early Jack Kerouac characters, Warby Pepper and Zagg Parker. They get pretzels from Martin's handmade-pretzel company, which sells pretzels out of the Union Square farmers' market because that was within a block of our very first office and we used to get pretzels from there all the time. I could go on and on, but we've established a bunch of rituals that we think reflect the values and the culture of the company we're trying to build.

Gilboa: We realized when we were 20 or 25 people, that we'd been hiring a certain type of person that reminded us of ourselves on the founding team a bit, but we hadn't really articulated the criteria or the values that were most important to us as an organization. We went through an exercise with the entire company, asked people to write down what are individual values that are important to you, in people that you want to associate with in your life, completely outside of a work context. We got over 200 different values and lead a bunch of discussions about which values were the same, which ones were different, which ones were critically important, which ones were nice to haves.

Then Neil and I took those and created our core values at Warby Parker.

Why Warby Parker's founder tries to spend 90 minutes a day doing nothing

warby parker ceo david gilboa neil blumenthalShontell: Do you still do this 90 minutes a day just for you — no one can interrupt, no one can have meetings with you? What happens in that time? How's this good for business?

Gilboa: I take an hour-and-a-half nap every day — no. Neil and I realized a couple years ago that we got to the office and we were just in back-to-back, to back-to-back to back meetings, often 16 meetings in a row with no breaks. It didn't really leave us time to think or prepare for the meetings and sometimes we were forced to email while we're in the meetings, trying to multi-task. It wasn't good for anyone.

We met Jeff Weiner, the CEO of LinkedIn, and he mentioned that he schedules 90 minutes of unstructured time in his day. So I went back and grabbed our assistant and said, "OK, we need to do this." I'd say it worked for a while. More and more those 90 minutes tend to get scheduled over as things pop up, but we still try to leave some time in the day where we can think and not get bogged down, kind of the hamster wheel where there are always things that we could be doing, always meetings that we can be in. We try to ask ourselves, "Am I the only person in the company that needs to be in this meeting?" If not, maybe somebody will just send me notes afterward, or I'll catch up with someone in a one-on-one and try to spend more and more time thinking about what we want this company to look like in 2020 and beyond and focus on bigger strategic initiatives.

Shontell: There are a few trends within the startup and tech world happening. One fun thing, as glasses pros, what do you think of Snap Spectacles?

Blumenthal: We think they did a very good job at positioning spectacles as a toy and limiting expectation. Which was in stark contrast with Google Glass that was marketed as, "This is something you're going to wear 100% of the time, it's going to radically change the world." Those are hard expectations to live up to.

Why Amazon won't crush Warby Parker

Jeff BezosShontell: Another question is Amazon. Amazon keeps touting, "We're the No. 1 store for millennials. Everyone's buying everything from us. We're the everything store." Why can't they just crush you?

Gilboa: I think Amazon's a company that we have a tremendous respect for and it's pretty incredible what they continue to achieve as they extend their products and services. I think where they haven't competed yet effectively is in building branded products and experiences. While they certainly have private label offerings, in terms of a holistic authentic brand that resonates with consumers, I don't think that's part of their DNA, at least not at this time. I think the other aspect that is a bit more complicated about our business is that for prescription glasses, we have to custom manufacture the product after you order and that's historically not something that Amazon has done either. They're really good at delivering products that are prepackaged and getting them to you as quickly as possible, but mass customization supply chain is not something that I think they've successfully done in the past.

Shontell: Warby Parker is a "unicorn" company. That's a buzzy word people use when a company's reached a valuation of $1 billion. There are a lot of unicorns in tech. What do you think is going to happen to all these companies that have raised so much money?

Blumenthal: There are cycles in business, whether they're consumer cycles, whether they're investing cycles — there's no question that over a fairly decent amount of time it's been a pretty entrepreneurial-friendly fundraising environment. There were some companies that were using equity capital to just sort of put on the marketing spigot and doing things that were not sustainable. I think that we've always tried to build our business in a sustainable way. An example of that is from a marketing perspective. We're pretty disciplined in that we will only spend the amount of money that will enable us to have positive contribution margin on somebody's first purchase because we don't know necessarily how much it's going to cost for them to buy additional glasses from us or what have you. Whereas there were some other businesses that would be around for six months and were projecting that their customers over the next five years were going to spend X amount, so you can spend Y amount on marketing to acquire them.

So, when it is an entrepreneurial-friendly investing environment, sometimes there tends to be, reckless is maybe too strong a word, but you know, not disciplined spending. I think we'll see. We've already seen some businesses that were high flyers come down to earth. Then there are some really good companies out there that are delivering great value and great experiences and they'll continue to grow and their valuations will continue to grow.

How to build a billion-dollar brand in record time 

Dave Gilboa Neil Blumenthal Warby ParkerShontell: What advice would you give to someone who's trying to build an established brand?

Blumenthal: From a brand perspective, it takes time to build a brand and you need to be super thoughtful of what it is that you're trying to build, what you're trying to solve, what are the attributes of that brand that are in line with that mission. Really thinking through the brand architecture.

From an operational standpoint, Dave and I think a lot about these moments where you feel like you have to take these giant leaps of faith and there's this belief that entrepreneurs are these crazy risk takers that are willing to jump out of an airplane without a parachute. It's simply untrue, but when we're looking down the cliff and looking into the abyss, we take a step back and try to break down that decision into a lot smaller ones. Effectively we de-risk it. The better analogy than jumping out of an airplane without a parachute would probably be, we actually build, double-check the parachute before jumping out of the airplane and we jump out of the airplane while the airplane's on the ground.

Gilboa: The other piece of advice that we often give and try to practice is staying focused. We see a bunch of companies that tend to get distracted. For us we're asked all the time, "Have you thought about selling products other than eyewear? Why aren't you international yet?"

Shontell: You sell everything in the US?

Gilboa: Just US and Canada. We think there's a huge global opportunity and we will tackle that at some point, but we've really just tried to stay maniacally focused on service our existing customer base before moving on into adjacent opportunities … I can't think of many businesses that have failed because they were too focused.

An IPO in 2018?

Shontell: There's one more question that you guys get all the time. The IPO market: Is it beckoning? Is it calling to you now, especially since Snapchat went out and it wasn't so bad?

Gilboa: Certainly a lot of people are asking us about it. We've raised quite a bit of capital, $215 million. We have a good chunk of that still on our balance sheet, so we view an IPO as a financing event. We don't need capital at the moment, so we can be patient and our investors are very happy with the way the business is going, we're not getting pressure there. It's probably a path that we'll go down at some point, but not something that we're rushing into.

Shontell: But what about liquidity for some of your employees? Or for even for you two? That's also a liquidity event. Is that something you think about? Seven years tends to be about the time when people get antsy.

Blumenthal: It's been seven years since our launch, but since we've taken equity investment it's been six, if that. So a little bit less.

Shontell: So you've got one more year, you're saying?

Gilboa: Part of the deal when you take venture financing is that you're committing to have a liquid exit opportunity. We will have that opportunity for our investors, we also think about how we can provide liquidity for our employees. So it is a path that we'll likely go down, but again want to make sure we're doing it for the right reasons and with timing that makes sense for us.

SEE ALSO: The 'messy' way a former Goldman Sachs employee grew a $150 million startup, then turned half his employees into millionaires

 A founder who sold his startup for $200 million paid for all 160 employees to party with him in Vegas — 'On a scale of 1 to OMFG, it was probably a 10'

Join the conversation about this story »

NOW WATCH: People on Twitter are roasting United Airlines after a passenger was forcibly dragged off a plane

This 6-year-old's science podcast is getting impressive guests and thousands of downloads

$
0
0

Nick Butkus

On his podcast, Nate Butkus has talked radiation with a US government scientist, evolution with a Harvard researcher, and, most recently, genome-editing with MIT’s Kevin Esvelt. But ask him his favorite moment from the 28 episodes so far, and it has to be when he belched during a taping.

So it goes when the podcast host is 6 years old.

With help from his producer (his dad, Eric Butkus), Nate has parlayed what he says has been his passion for science since birth into a podcast downloaded about 4,000 times each episode and even an appearance on Ellen DeGeneres’s show.

On the podcast, Nate injects a curiosity, excitement, and, yes, adorableness — he sang “I Wanna Be Sedated” with an emergency medicine doctor, for cuteness’s sake — into what can suddenly become technical discussions about how radiation mutates DNA, the effects of sugar on the brain, and, on a Christmas-themed episode, the physics of invisibility. All that, and at least in early episodes, plenty of Ws in place of Rs and Ls.

“Adam is a mawine biowogist, and I like Adam,” Nate says in the second episode of “The Show About Science,” focused on sea creatures. He then goes on to ask Adam: “What do you know about whales?”

The show was born in 2015 when Nate, then 5, told his dad he wanted to start a podcast.

Eric Butkus works in multimedia at the Journal of the American Medical Association, and the Butkuses, who live outside Chicago, had played around with the recording equipment there. (As Eric explained the history of the show in a recent phone call, Nate interrupted with an important update: “By the way, I just got a new fish!”) Eric, a former recording engineer, also had equipment stored away in the closet, so when the show began, he set it up for them in the attic.

Nate’s first guest was his mom (“He said, ‘Who do you want to call?’ and I said, ‘My mom!’” explained Nate, who is an only child) and then he had some family friends on. But since then, he’s spoken with scientists such as Yale ecologist Adam Rosenblatt, University of Michigan biologist Monica Dus, and Harvard Medical School geneticist Clifford Tabin. (“He has a PhD and everything,” Nate said as he introduced Tabin on the show.)

Most of the time, Nate picks a topic and Eric finds a guest, generally a scientist or author. But for one episode, they were contacted to see if they would talk with Huban Gowadia, then the director of the Domestic Nuclear Detection Office. Nate’s response: “Who says no to the government?”

And the guests all seem delighted to be talking with Nate.

“That’s a great question,” they tell him over and over, a bubbliness in their voices. And even when he asks maybe not the most scientifically relevant questions — Do alligators get headaches? And what happens when they get approached by a turtle? — the guests use them as launching pads to discuss other fascinating questions: Do you know how alligators communicate? (Males “bellow” to attract females.) Do you know how strong their bites are? (Perhaps the strongest of any animal that’s ever lived.)

In a way, the basic questions Nate poses poke at the core elements of the subjects that made the scientists fall in love with their fields in the first place.

Nate is “a sort of pure and undiluted incarnation of the awe and wonder that only the luckiest scientists manage to preserve into their professional careers,” Esvelt wrote in an email to STAT. “Listening to him rekindles that sense of astonishment that resides in the heart of everyone [who] ever loved science. Which, because all of us once were young, is just about everyone.”

On their episode, Nate and Esvelt discussed the genome-editing technology CRISPR and whether it could be used to make a creature Nate had designed for a homework assignment, one with flaps of skin on its face, antennae, wings, a squiggly tail, and spikes on its back “like a hedgehog.”

Nate first heard about CRISPR on YouTube, and when asked by STAT why he wanted to do a show about it, Nate first provided a lesson: “First of all, it stands for ‘clustered regularly interspaced short palindromic repeats.’” He then added: “I just love clustered regularly interspaced short palindromic repeats.”

On early episodes, Nate would repeat almost word-for-word what his guest had said, but now — perhaps both as a result of experience and being almost two years older — the show is much more of a conversation. During car rides, Nate and Eric would practice the skill of coming up with follow-up questions.

The show has been successful, Eric said, because talking to a 5- or 6-year-old forces scientists to explain their work in the most basic terms, with a sense of amazement for it all. It turns out that it’s enjoyable and enlightening to listen to those explanations, even as an adult.

“There’s an understanding that happens, even with complicated topics,” Eric said. “And Nate makes it fun. It’s that combination.”

Nate has plenty of ideas for future episodes, including natural disasters and paralysis, and he hopes to one day talk with Bill Nye, and also Michael Phelps about the physics of swimming.

Long term, Nate said he wants to become a biochemist. But in the meantime, he’s enjoying what he’s doing.

At the end of one episode, one guest concluded: “Thanks, Nate, that was fun.” Nate responded: “I bet it was.”

SEE ALSO: 17 habits science shows will help you fall asleep faster and sleep better

Join the conversation about this story »

NOW WATCH: Amateur astronomers just found objects in space that could lead to the biggest discovery of our Solar System in over 150 years

How 2 roommates got shot down by hundreds of startup investors and racked up credit-card debt — but built a newsletter empire anyway

$
0
0

The Skimm founders CEO Carly Zakin Danielle Weisberg

Carly Zakin and Danielle Weisberg cofounded theSkimm, an email newsletter sent to 5 million subscribers every day at 6 a.m.

TheSkimm picks the most important new stories of the day and tells readers what they need to know in a conversational tone that's full of millennial lingo. Loyal subscribers include Oprah and Hillary Clinton's former campaign manager, John Podesta.

The business was far from easy to build. Zakin and Weisberg quit jobs at NBC only to get turned down by "hundreds" of venture capitalists, who saw no value in creating an email company. Together, the pair went into credit-card debt, which they say they finally paid off just last year.

We sat down with Zakin and Weisberg to talk about their battle stories, how they eventually got investors on board, and how theSkimm took off, all on this episode of "Success! How I Did It," a Business Insider podcast hosted by US editor in chief Alyson Shontell that explores the career paths of today's most accomplished and inspiring people.

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

The following transcript of the interview has been edited for clarity and length.

A post shared by theSkimm (@theskimm) on

Alyson Shontell: Carly Zakin and Danielle Weisberg launched theSkimm, a morning email newsletter, in July 2012. Business Insider wrote the first article about it back then, and today the newsletter has over 5 million subscribers, including Oprah and Hillary Clinton's campaign manager, John Podesta, as we learned last year after WikiLeaks' publication of Clinton's hacked emails.

To start, I wanted to go back to 2012 and even a little before that. You met as students studying abroad in Rome. You both worked at NBC and then quit to start a newsletter. Tell me about that process.

Danielle Weisberg: Thanks for having us — it's exciting to be back here. You wrote the first article about us, so it's a lot of déjà vu. Carly and I met studying abroad in Italy. We had a great time and didn't think about what we were going to do later on. We had really similar backgrounds. We're both storytellers, we love journalism, we love news. It was our passion.

We started interning for NBC news as soon as we could and we grew up in that world. NBC was our universe — we always wanted to work there. We worked our way up the ladder from intern to full time, and then we were producers, and between the two of us, we worked in pretty much every news division they had.

We were roommates in an apartment in New York, and we would come home to each other every day and talk about two things.

One, as clichéd as it sounds, we were very much having a quarter-life crisis. Being 25 and 26 and loving what we were doing but wanting to move up and not wanting to hear that you have to get in line and wait 10 years for a position that might open. That was really frustrating as two people who loved what they were doing and wanted to do more of it.

The second thing was our friends who were smart and had great jobs and knew everything about their industries would come home and ask us what was going on in the world. That was our job. That's what we did for a living. We read all day long, and we reported on the news and our friends didn't do that. They had other things to fill their time with. It wasn't a matter of intelligence, and it wasn't a matter of interest; that's not what they were being paid to do.

So we wanted to create a news source that actually brought this audience that was exemplified by our friends, female millennials, who are smart and leading in so many ways, but didn't have a news source that they loved, and we knew that we could create that.

So the newsletter was never the be-all and end-all. It was the beginning to a very big empire that we knew we could create in harnessing the power of female millennials, and being their go-to source for information that really matters and can drive the big decisions that they're making in their lives.

Shontell: When you did this in 2012, it felt like newsletters had been there, done that. Daily Candy had been acquired for a ton of money; Thrillist, a popular guy newsletter, had been around for a few years. What made you think that newsletters were where it's at?

oprah TheSkimmCarly Zakin: It wasn't newsletters that we thought about; it was email. There was a beauty in how naïve we were. We didn't have a tech background. We didn't have a business background. It helped us not overthink things. We just thought — what's the best way to get in front of our friends? We went back and forth. Should we text them?

We were like, "No, the very first thing you do in the morning is you turn off your alarm, it's on your phone, you grab your phone, and you literally open your email to be like, Did someone die? Am I getting fired? or Is my boss yelling at me? and What did my friends send me? And we knew we had to be in that moment. One of our friends worked in finance, and she left for the office at 5:50 in the morning every morning. So we were like, we gotta get it out to her on that commute. So we chose 6 a.m.

A lot of the hallmarks of what theSkimm is about, that one-eye-open routine, we call it. Being in that moment and being there at 6 a.m. happened because we were just thinking about our friends' daily experiences. We weren't overthinking it. We weren't like, let's A/B test this. We didn't even know what A/B testing was.

When we started theSkimm, we started meeting with investors, industry experts, and everyone was like, email is dead — this is a really bad idea. But they would email that to us.

And we would just laugh at it because we're like, you're saying email is dead, but you're emailing that to us. And we both still read email every single morning. Obviously, since then, we've seen a resurgence of email newsletters, and a lot of that, we've been told, is credited to what we've done.

But for us, I think we've talked so much about all the things we didn't know. We haven't spent a lot of time talking about what we did know. And what we did know is that we knew how to talk to this audience, who they were, and we also knew that we were not starting an email newsletter company. We knew email was a marketing tool.

'We made a list of all of the investors, angels, and seed funds, and we would turn anyone who said 'no' red — then the whole list was completely red'

Danielle Weisberg and Carly Zakin, The Skimm

Shontell: Talk about quitting your jobs at NBC. Because you did that and bootstrapped for a bit, right? You said just now there wasn't a ton of investor interest, you were first-time founders with no technical background. That's everything that makes a venture capitalist run away.

Zakin: Yeah, everything that would make you not think "This is a good idea."

Weisberg: It's funny when people ask that, because they're like, "Oh, you decided to bootstrap it." And we're like, "We didn't 'decide.'"

Zakin:“Bootstrap” is such a generous term because it makes it seem like we had money to bootstrap. We worked in media in mid-level jobs. We had just over $4,000 between the two of us. We lived in a rent-stabilized apartment downtown and agreed to go into credit card-debt together.

'Bootstrap' is a generous term. It seems like we had money to bootstrap. We worked in media in mid-level jobs. We had just over $4,000 between the two of us. We lived in a rent-stabilized apartment and together agreed to go into credit-card debt.

We just both paid off our credit-card debt in the last year or so, and it was a huge sacrifice, that even looking back now I'm like, "I can't believe I made those choices." Because it sounds so unlike myself, it sounds so unlike Danielle.

Weisberg: The other part, too, is people hear our story now and they think about it as two women decide to quit their jobs and start their own company. Quitting our jobs, it was the scariest day of our life. That was not easy. And those first months ... every point of this company has been hard. That's the case anytime you're building something. But those first months, we only got through it because we didn't have a backup plan. We didn't have a safety net financially or emotionally. This was everything.

That was our saving grace, because there was no plan B. There was only, "We're on our couch, we can't afford cable, we've maxed out our credit cards, our parents are giving us hugs." But that was the support. Carly's parents made us a lot of dinner. That was it. There was nowhere else to go.

So when everyone was saying no, and we made a list of all of the people — all of the investors, angels, seed funds — and we would turn anyone who said "no" red. And then the whole list, which was a lot of names, was completely red. I remember a day in our kitchen, we had just gotten off a pitch that again ended with "Thanks so much, not interested," and we just had to make a decision. Are we going to go for this or are we going to go try to get jobs freelancing for the 2012 election?

It wasn't really even a decision — it was just a half-second to reevaluate where we were, change our pitch a bit, and that was it. That was the closest we've ever come to a crisis of confidence in this company. If you let those things get to you early on, then you don't know what else is coming. There are going to be a lot more challenges.

Shontell: Had you launched the first newsletter at that point? Why quit your job if you're launching a newsletter to begin with? You can do that while keeping your 9-to-5.

Zakin: Well, two things. One is we had both weird schedules. I worked daytime and Danielle worked nights. So we couldn't do that. One of us would have had to change our schedule.

Second, we took a Skillshare class while we were employed, and it was ironic because the class we signed up for was "How to Find Your Business Partner" and that was the only thing we knew how to do. But the person who taught it, Alex Taub [an entrepreneur and investor], became a mentor to us, and he was one of the first people to tell us, "If you're going to start something, you need to be all in. How can you ask anyone to even think about giving you money if you have not made sacrifices to prioritize the effort yourself?'"

When people come to us and ask for advice on starting a business and are like, "I can't afford to quit," I still have mixed feelings about what to tell them. Who am I to tell someone what financial decisions they should make? But for us, we were asking people to believe in us, and we had to show that we believed in us so much that we were willing to take a huge risk ourselves, quit our jobs, have no financial security, and give it a shot.

So we took that approach. That's not for everybody. I don't know if it could have worked out differently. But there was actually a third reason.

A lot of people ask us, "Why didn't you just bring this to NBC? Why didn't you get this in front of Steve Burke?" There is no way that NBC would have allowed two associate producers to not only run the editorial but to run the business side of what we were doing. There was just no way. We knew that in our gut.

Weisberg: That would have ruined the company in a lot of ways in starting off, because the authenticity of having this idea came so much from our friends, and it was developed around routines of this target audience. It couldn't then have had a successful launch if it had then been led by people who had been doing this for 30 years and thought about the same strategy that had worked for all of these other companies and startups. That's not what we're building.

4 days after launch, theSkimm got a shout-out from Hoda Kotb on the 'Today' show, and it changed everything

Jeff Zucker Hoda Kotb Kathie Lee Natalie Morales

Shontell: Tell me about launching your first Skimm. Who did you get to subscribe?

Zakin: We didn't add anyone to the list. We sent an email to everyone in our address book. When we say everyone in our address book, at that point you could download your Facebook friends' email addresses, so we literally took every email address that we had in our possession.

Meaning like, my grandma is on chain letters, chain mail that she forwards. We took those people. So we had, between the two of us, 5,500 names. We sent an email and were like, "Hey, we quit our jobs and we're starting this. Can you please sign up?"

That first day, almost 800 people signed up. But we didn't add anyone to the list. I think the first email had our closest friends and family on it, and it was not a lot of people on it.

Shontell: So 800 pity subscribers?

Zakin: Eight hundred people who were like, "I'll take a look."

Weisberg: The first went out to our family and friends. And then there were two press articles that came out on the first day, and Business Insider was the first to cover us. Thank you! And we got the traction from that.

It all happened very quickly, because we had also emailed every news anchor out there, truly. We didn't know most of them, but we were like, "We're former NBC-ers, thought you would love this, thought you would appreciate the need that we're solving." Most of them didn't respond. Hoda Kotb responded, and she said, "I'll check it out!" We did not know her. We followed up with her two more times, but got no response. Day four of us in business, she said we were one of her favorite things — on air — and it totally changed our life.

So we went from, at that point, let's say under 1,000 users to thousands. All of a sudden, we had geographic diversity. And all of a sudden, we had huge pockets of the country paying attention to what we were doing.

Shontell: Wow. What does a Hoda bump do to your newsletter subscribers?

Zakin: It crashed our site. It crashed our email inbox. We got a few thousand people from it. It was so funny, we were actually back visiting our old bosses at 30 Rock. We were in Starbucks and I tried to load my email and it wouldn't load. Then someone wrote on our Facebook wall: "Just saw you on the 'Today' show." And we thought we were caught walking on the plaza in the background, and we were like, "Oh, how embarrassing — what were we doing?" Then someone had posted what she had done. So it was life-changing.

Shontell: How did you create the voice for theSkimm? It's really something that resonates, and sometimes people will say, "Are they dumbing it down too much?" Or "Do women need their own news source?" But the voice did set you apart, so how did you create theSkimm's tone?

Weisberg: It was the easiest part of building this company. The voice comes from how people speak and how we talk to our friends. We spent a lot of time thinking about, "How do we launch this? What are we doing? What's the ultimate vision?"

We literally sat down in separate parts of our apartment and went to write what would become the Daily Skimm. We came back together, and we hadn't really talked about what the voice would sound like, aside from knowing that it would be how we actually speak to our friends. And we came up with the exact same voice. Since then, we have put a lot of time into explaining the voice to our team and putting a brand guidebook together, and talking about how well we know theSkimm girl, our character inside and out.

Anyone on our team can tell you what her favorite drink is, what she's going to order at Sunday brunch, and it's a living, breathing document — what she likes and where she is in life changes. That is something that everyone in our company knows because they're all telling the story of theSkimm and this character is who the brand is.

So when we put the voice together, it's not for everyone. I think that when we hear criticism like that, that the voice is condescending, we hear it all the time, it's nothing new. I don't think that there should be a one-size-fits-all approach to news. Just because someone doesn't like it, that doesn't mean it's for them.

Shontell: You have coined terms like Mitt Romney was "Mittens" and Hillary Clinton is "Hillz." Business Insider has found the same, that there's something to a conversational nature. That doesn't mean you're dumbing it down; it means you're explaining it so that everyone, the really smart people — because you've got incredibly smart people like John Podesta on your email list — and the people who aren't heavy in politics can understand it.

Weisberg: I think it also goes back to what we were creating, which is it's not something for experts. It's not something for just people who love politics or who love business. That was a huge thing that five years ago when we started the company, we saw such a trend toward personalization. That was the hot thing, and you should be able to just get information about what you're interested in.

That's great, but it left a huge void for people just to be well-rounded. So we want to arm our audience to be able to participate in all types of conversation with all types of different people, and not feel like, "Oh, I work in finance, and my hobby is baseball. So those are the things that I'm going to filter my news on."

That was a huge difference when we started, and that was something that people really latched on to, as well as we were describing business stories and not having words that you had to look up. When we started writing theSkimm, I remember we did this experiment where we were reading a story, and we would kind of highlight if there was a word that we couldn't explain. If that was a term or a sentence we had to go look up and read four times through, that's kind of broken.

Weisberg: We're smart, we worked in news, we were following these stories day in and day out, and if we couldn't understand it, then how can you expect that from people whose job isn't to be up on what's going on day in and day out?

Raising the first million, and hitting No. 1 in the App Store for news

The Skimm employees team jobs Carly Zakin Danielle Weisberg

Shontell: I'm interested in how you got out of your debt. A newsletter that racks up subscribers is great, but at the same time, it's also not immediately clear how you'll start making money. Certainly not enough to pay your salaries and employ people.

Zakin: One is that people still ask us, "How do you guys make money?" And I remember we were on a panel and Danielle just got pissed off and was like, "We make a lot of money!"

Weisberg: I was done.

Zakin: So we're proud to say that we do very well. And it goes back to what we knew, which is that email is a marketing tool. Our goal from day one was to place a long bet on loyalty.

What can you do with loyalty? How do you develop a community, get people engaged? And from there, you can activate them, and in many ways directly monetize that. From truly day one — maybe let's not be hyperbolic; let's just say day four — we had brands reaching out to us, like our wish-list brands. Saying, "Just got this, would love to advertise." We knew nothing about how to work with an advertiser. So instead, we said, "We're actually not working with brands right now."

By doing that, I think we created a little bit of mystery. Our list kept growing. There kept being more press about how big our list was and who the audience was. And we weren't letting brands in.

What happened over time was that we continued to gain a lot of traction. We were meeting with venture capitalists who said to us, "Email is dead. Why are you going after a niche market like women?" Which is ridiculous. And who were like, "My wife reads it."

As Danielle said, we literally had thousands of "nos" in a spreadsheet tracking all of it. So it had been a year and a half almost of the two of us on our couch, in coffee shops, just growing organically. We got to about 150,000 users, and we were able to take in a little bit of seed money.

Shontell: How long did it take to get to 150,000 subscribers?

Zakin: Less than 18 months. It took us one year to get to 100,000. Once we got that first big check — we raised just over $1 million — it was life-changing. We took a picture of it in our bank account. We were like, "We've never seen this many zeroes." It was so exciting. We treated ourselves to nice haircuts, and then we went to go hire a team.

In hiring a team, we really chose to double down on growth. We had one goal, which was to get to 1 million users in a year. We ended up doing it in six months. Then over the course of that year, we started to let brands in, but really selectively. What we've been doing over the last four and a half years is building out two businesses.

We have a media business. We work with sponsors in a really needed capacity, and we're really great storytellers with that. If you asked us, "Do you think it's a really innovative that we created an email newsletter and work with brands to email a newsletter?" No. That is not why we raised venture-capital funding, and that is not why we're building a huge business. What we're doing is we have turned that loyalty into a community. And a community that we can activate.

The other business that we have is a subscription business. We launched our first subscription product just under a year ago, which has been a huge success, called Skimm Ahead. And for us, these two businesses and subsequent capital raises we've taken in have helped really create what Danielle said. We're building an empire. That is how we feel.

A post shared by theSkimm (@theskimm) on

Shontell: Talk about Skimm Ahead. That's your new product. What is it?

Zakin: TheSkimm, as a company, makes it easier to be smarter. We looked at the Daily Skimm. We were like, "Here's an email that makes it easier to be smarter about everything that happened yesterday, and everything you need to know about today." And then we thought, "What's the routine that we all share? And outside of email, what happens next?"

For us and our friends, we look at our phone, and I immediately look at my calendar, and I'm sure you are like us, and you live on your calendar as well. So we thought that was a really interesting way to deliver information. When we thought about what information could we solve next, it was that moment that we all have of, Wait, when is that happening? When's that show back on Netflix? What time is March Madness on? When is the State of the Union? What night? It was about the idea of making it easier to be smarter about the things coming up.

So we created a subscription product that costs $2.99 a month. It can integrate directly into your calendar. For us, it really pushed the door open toward subscription. We had a hunch — we obviously made more than an educated guess — that our audience would be willing to pay for something. I don't think we had any idea what we were stepping into. We're so excited about how well subscription has gone over with our audience.

Shontell: Are there any metrics you can share to show it is an early success?

Weisberg: We can tell you we were No. 1 for news in the App Store in our first month. We continually beat The New York Times and The Wall Street Journal in highest-grossing news apps every month. Apple actually asked if we had figured out how to hack their rating system because they had never seen so many five-star reviews.

Building a marketing empire on loyalty, not scale

Carly Zakin Danielle Weisberg TheSkimm The Skimm

Shontell: The venture capitalists did finally come around, and you've now raised $15 million. But it is hard in the media environment right now. There's a lot changing. Fifteen million dollars is a lot, but it's not the $200 million Vox and BuzzFeed and others have raised. How do you look at the media climate, and how do you plan to survive?

Weisberg: A blessing for this company is that we've never fit in. People have been constantly surprised by our audience, even when we've gone out for raises and the traction has been there. We've never been what venture capitalists have been looking for. So I think us trying to guess or trying to figure out what the trends are in media has never been helpful to us, because we've always been carving our own path.

It took a long time for people to understand what we were building. The criticism that we got was always like, "Oh, it's just that newsletter." And I think that it really came through strongly with the election.

We launched our "No Excuses" campaign, which started with, How can we rally our entire company and our audience around getting people to vote? And at a time when a lot of other media companies were facing this crisis of confidence from their audience, and they were endorsing candidates and hearing a lot of backlash for it.

the skimm

We've always been nonpartisan. Our stance in the last election, just like the other elections that we've covered, has been to get people out to vote. So we interviewed the candidates, we launched a big destination site, and what we are most proud of is that we got over 120,000 people to register to vote, making us pretty much Rock the Vote's biggest partner ever. That's over 90,000 women. That's unprecedented.

The biggest part of our company is our Skimmbassadors. We have the media business, we have the subscription business, and then we have the community element. They are why Apple called us to say, "How did you get so many five-star reviews in such a short period?" Our Skimmbassadors. We have over 20,000 of them. They've started off as just people writing in saying "I love your product." We would ask them to get 10 friends to sign up. And they became pen pals.

Zakin: We call it "intimacy at scale." We genuinely know subscribers' names. We really know who they are. Of course you can't do that for 5 million people, but we have a community. We know how to activate them.

Shontell: Facebook has 2 billion monthly active users. That is tremendous scale, but there seems to be this movement in media and tech happening where maybe you don't need that many people, as long as they're loyal.

Weisberg: We talked about it with our investors very early on. We've heard various founders of some of those companies speak, and we're such fans of them. But we look at them and we're like, "It's so funny to us that VCs ever put us in the same sentence as them because we couldn't be more different. We would much rather say we have 5 million people we activate and get to pay for a subscription product. Or we can get them to turn out in the hundreds of thousands to vote, than say "We've got 20 million of them, but only 2 million of them open us every day." That's not interesting to us.

Zakin: That's why we've always been our own category. As these media trends — and what's hot and what's not come up — we always knew who we were. We always knew what we were building as a company, and we've been lucky to be surrounded by a board and investors and advisors who respected that and respected our vision and helped us along.

At times we got, "Well, you're not BuzzFeed, you're not at BuzzFeed's scale." And we're like, "That's because we're not trying to be BuzzFeed." BuzzFeed's great, we think they have great stuff, but that's not what we're trying to build as a company.

It has always been about staying true to our vision and staying true to our audience in that whatever we create has to be additive. It has to be a voice that they trust, and it has to be part of what they actually need to get through their day. That's what they find whenever they interact with our products.

There's a new New York Times best-seller list for millennials

Shontell: One thing that's interesting that you've built loyalty-wise, and we've seen it being on the receiving end when you put a Business Insider link in a Skimm newsletter, we see a flood of traffic. Are we allowed to talk about this? How when theSkimm recommends a wine, and when it recommends a book, it's often better performing sometimes than even The New York Times?

A post shared by theSkimm (@theskimm) on

Zakin: We've been told by publishers that we are the No. 1 way to sell books for this audience.

Shontell: Above being in the New York Times best-seller list?

Zakin: Above the "Today" show and above the New York Times best-seller list. Multiple publishers have told us that.

Weisberg: You can see that by walking into our office. Publishers are sending us cartloads of books. And we're like, "We just need one or two."

Shontell: You put one in a newsletter every day, right?

Zakin: One every Friday, and a bottle of wine that we like every Friday. We happily taste-test the wine and happily read the books.

Shontell: Do you get affiliate fees?

Zakin: Yes, and we are open about that in the newsletter. But we choose what we think is the best for this audience. It's not about, "Oh we're going into the book business." That's not what we're saying. It's about being in the engagement business.

We can drive as much traffic to a Business Insider article as we can to driving book sales and as we can to driving sales toward our new products with Skimm Ahead. It just goes into the powerful relationship that we have with our audience. We feature products and brands we like all the time, and I can't even tell you how many brands have said we've changed their business trajectory because they were featured in theSkimm. That's a wonderful feeling, and we've been told we have the Oprah effect. We would never say that about ourselves, but we're happy to repeat the quote.

Shontell: Definitely. And Oprah is a fan right?

Zakin: Oprah is a fan, which is a very surreal sentence to say.

Shontell: You've grown tremendously, but I'm sure it's still early in the company's history. What do you think is next? Are you going to do video? Are you going to do an audio version of theSkimm?

Weisberg: I think it's all coming. It's just about how you prioritize it and when you release it. We started the company with two guiding principles. The first is that we have a voice — the voice is very clear — and it's in all products we create.

The second is that we really have a strong belief in looking at the routines of this target audience and fitting that in with what we release and when. That's the same thing, you wake up, you get an email telling you what you need to know for your day, and then you step out your door and you get your calendar. So those two things are very much in our product roadmap.

We did video. You can check out our Instagram and Facebook site for some of the video that we've been producing. We just did one on equal pay and we did one on Syria and immigration and it's gone over really well. That's just the beginning of what we're doing and what we're testing. As former video producers, it's exciting that we're going into that, and we clearly see a lot of interesting ways to work with brands.

So that's up next. It's also thinking about other products and services that fit into the routines of this audience that we've always wanted to create and haven't had the time or the ability to focus on other things. That's the benefit of being where we are now with the amazing team that we have, that we can really start thinking about what was in our head five years ago and three years ago, and now it's actually the perfect time for us to create those things.

A post shared by theSkimm (@theskimm) on

Shontell: How does theSkimm newsletter come to be every day? How do you pick the stories? Who writes it?

Zakin: I think we developed our secret sauce. Of our team of 41, only five are on the editorial team. We still touch every word and see every word.

Shontell: What is everyone else doing?

Zakin: It's tech, analytics, sales product, really. For us, it's about every day, it's the best part of our day to pick the stories. It's the same principle that we started with, which is: What will our friends need to talk about? What's becoming a story? What already is a story? And what will feel old by tomorrow?

We want you to be able to go to any work or social event and talk to anyone about anything. We love doing that, we love picking the stories every day — it's the easiest and best part of our day. The last edit is made every morning at 5:58.

Shontell: Ready for that 6 a.m. deadline.

Zakin: Yep.

Shontell: Congrats to you both.

Join the conversation about this story »

NOW WATCH: Check out the abandoned New Jersey military base where a nuclear missile exploded in 1960

The CEO of About.com has a crazy plan to save the beloved 1990s website from extinction — he's shutting it down

$
0
0

Neil Vogel

About.com launched in 1997. It used to be one of the world's most visited websites.

Today, internet entrepreneur and investor Neil Vogel has been tasked with saving the IAC-owned dot-com brand from extinction.

"I got a phone call from Joey Levin, who is the CEO of IAC. He asked, 'What do you think of About.com?'" Vogel said during a recent interview with Business Insider. "My answer — in perfect arrogance — was 'I don't.' Who thinks of About.com? Nobody."

Levin persuaded him to come in for a job interview anyway, and Vogel walked out convinced he could help turn the company around. Now he is CEO of About.com, and to save it he's trying something that sounds crazy.

He’s shutting down the entire website in early May. In its place, he's launching a half-dozen new sites.

"This is either going to work and be a great success or we're going to crash the plane as we're flying it and this is going to be a horrible failure," Vogel says he told IAC.

So far, the radical plan seems to be working. We spoke with Vogel about the turnaround, and, before that, how he founded the Webby Awards, which have been dubbed "the Oscars of the internet."

On an episode of "Success! How I Did It," a Business Insider podcast about the careers of accomplished and inspiring people, Vogel also explained how a cross-country road trip in a Ford Bronco changed his life.

You can listen to this episode below.

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

Following is a transcript of the conversation, edited for clarity and length.

Alyson Shontell: About.com is a 250-person media company that you've revived. It was a dot-com baby, founded in 1996.

Neil Vogel: Nineteen ninety-six. We're 20 years old. We're not a baby — we're not even adolescent. We're like a full-fledged millennial.

Shontell: You've been a venture partner at Firstmark Capital. You've created a company that made awesome events like Internet Week and the Webby Awards, which have been called "the Oscars of the internet."

Vogel: I've done a lot of things. I'm old, man — I'm old.

Shontell: Let's go back to when you were young and hungry. How did you start this career? Investment banking, right?

Vogel: I listened to your podcast with [Bustle and Bleacher Report founder] Bryan Goldberg and he talked about this, but when I got out of college, which was in 1992 — I went to Penn — the only things seemingly you could do were become an investment banker, a consultant, or a brand manager somewhere. And I didn't do any of those things.

For a year I took an internship at IMG, the big sports agency, which I was terrible at, and I hated it. After seven months, I went back to my roots and was an investment banker. I was a banker for five or six years. I very quickly learned that I admired and respected my clients a lot more than my bosses. I did not want to be some dude eating Chinese food in the office on Sunday night at 7:30 making a model for someone else's business. That, to me, seemed stupid. It seemed to me like I wanted to be the guy the model's being made for, which makes some sense.

I ended up leaving and going to work with a couple of guys who started a company called Alloy — or Alloy Media Marketing, for you internet 1.0 people. I was the sixth person there. We ended up growing to be a $300 million-revenue business — very profitable. It went public and had a really good run.

Shontell: What was it like back in the dot-com days for people who might be too young to remember?

Vogel: It's hard to describe. We were kids. We were 27, 28, 29 when Alloy went public. We were just playing business with other people's money. And it felt irresponsible, but we tried really hard. We worked incredibly hard.

The founder of the company, Matt Diamond, was incredibly smart. He was always very focused on building a business that made money. We always made money so we didn't have the outcome of a lot of 1.0 guys. We ended up being pretty successful. But it just was crazy. Everything was at hyper speed. Nobody knew anything. We were the first at everything we did. It was really fun.

Ultimately, I wanted to run my own thing. I left, took a year off, and, with a partner, started a business called Recognition Media. We ended up owning and producing nine or 10 different award shows and events, including the Webby Awards, and we started Internet Week, which we subsequently sold.

A life-changing, yearlong road trip in a Ford Bronco

Shontell: Before we get into that, I want to discuss the time you spent in between jobs. You did a cool soul-searching experiment in which you bought a truck and you drove across the country.

Vogel: I did. I took, like, almost a year off.

Shontell: Tell me about this crazy road trip that changed your life.

Vogel: I don't know — I was 32, single, and we just had this reasonably good outcome. I had no responsibilities and no expenses. I had a dumb rental apartment. So I bought an old Ford Bronco, took the roof off and drove around for a summer.

My father gave me great advice. He said, "Look, you're in a position where you don't have kids, you don't have anything. Go get yourself bored and figure out what you want to do."

For a couple of months I was trying really hard to think about it and figure it out. Then I decided to not think about anything. Believe me, I know it's an incredible luxury to be able to do that.

I didn't think about anything, and then everything became clear. It's an amazing feeling to have no responsibilities. Just "What am I going to do? Oh, I'm going to drive here and visit my friend." Or "I'm going to get on a plane, go to Europe, and hang out." It was amazing.

I was at the beach with some friends before Labor Day weekend in 2004. I hadn't done anything for the whole summer. I wasn't even checking email. I panicked because I had hit maximum boredom. I got in this truck and I drove back to Manhattan on the Thursday before Labor Day weekend. When everybody was going out to go the beach and have fun, I got on a plane, flew to LA to where my business partner was, and we wrote a business plan, and that became the business that was the Webby Awards and Recognition Media.

I tell people it was the best thing I've ever done in my whole life.

Shontell: You're on the beach, you realize "Oh my gosh, I actually miss work. I want to do more. I want to do something." You have this idea. Had you done anything with events before?

Vogel: No, nothing. Zero things.

Shontell: You just thought it would be a fun thing to start.

Vogel: We actually started the company by buying a very small business. Before I dropped off the face of the earth, I talked to a lot of smart media people I knew. And a guy called us with an opportunity. He said, "You can buy this thing called the Telly Awards," which was a little award show based in Ashland, Kentucky.

He found this business in an ad in the back of The Wall Street Journal. He read it, then he clipped it and faxed it to me. I took a look and said, "Wait a minute. This is a database of creative professionals who are all doing internet things and need recognition for their work." If you make TV commercials, who says whether you are doing a good job or not? You need third-party validation.

We did some research, found out there were a million of these little awards around. If we bought this first one and figured it out, we could probably do a bunch more and make this work. That's what we did. I flew to LA to do the work on this Telly Awards thing that we then raised a little bit of money and bought a few months later.

Building the Oscars of the internet, the Webby Awards

webby awards dennis crowley foursquare

Shontell: What exactly are the Webby Awards, and how did they become this glamorous thing?

Vogel: We bought the Telly Awards and we'd had some success with it. Then, we found out the Webby Awards were owned by IDG, the big media company. They started this award show in the '90s in San Francisco that got some traction. But it kind of went out of business. For two years they didn't have the show. But they had the brand. We approached them and said, "Guys, we want to buy this from you."

The business model is, people pay to enter, and we get lots of corporate sponsors and have a show. The first year we had 800 entries, mainly all from the United States. By the time we were done with it [seven years later] it was about 14,000 entries from 60 countries. It's the award, the Cannes Lions, or the Oscars for people who do internet stuff.

We built a brand really, really stealthily. We did it by just making sure the brand was impeccable, that the most important, most influential people liked it. And we did it all online at a time when that felt really weird to people.

Shontell: So it's a once-a-year event. How much money can you make from an event like that?

Vogel: I can't really tell you exactly how much. You can figure out the math. The more people who enter, the better off this thing is. Then you're connecting really big corporate sponsors with very tight, very engaged audiences that are super valuable. We can put you in front of 2,000 people who make the best stuff in the world every year. That's a really valuable thing.

Shontell: Was it ever hard?

Vogel: Everything is hard. It's impossible. It tells as a super-elegant story. No, but this is impossible. Everything was a disaster. We had eight offices. We couldn't get anything right. We made so many mistakes. The nature of the internet is it's very forgiving. You can't really make that big a mistake.

The interesting thing about a business that is an award show is it's once a year. Now, at About.com, we can make changes that are instant tomorrow. At the Webby Awards, you make a change, it takes a year to see if that worked. You learn how to manage businesses differently because you have a full-year cycle, which is often very annoying. We made every mistake a startup can make.

Shontell: Despite that, someone did come in and buy a big chunk of it.

Vogel: Yeah, we were happy. I'm still on the board. Then I transitioned to Firstmark Capital, where I have a bunch of friends who are investors.

Shontell: They've got early-stage investments and things like Pinterest, Airbnb, and Draft Kings.

Vogel: I spent probably a year hanging out with those guys, and I learned so much in that year from just sitting and listening to their process. The first thing I learned is I'm a terrible investor. I like the quick wits of running businesses. But the long lead time and thoughtfulness required to have a thesis and invest against it and follow up is just not my jam.

A radical plan to save About.com — shut down the URL and start from scratch

Neil Vogel CEO About.com

Shontell: So you started to get bored and then IAC called you. IAC owns About.com.

Vogel: Yes. So About.com was owned by The New York Times. They owned it for five or six years. IAC — Barry Diller and crew — bought it for about $300 million at the end of 2012.

Shontell: Significantly less than The Times paid for About.com.

Vogel: It is less than The Times paid, which is less than Prime Media paid before them. I think it's widely known, but About was a mess at that point. It was still one of the 20 biggest sites on the internet, but there had been a lot of neglect.

IAC, who's very opportunistic in buying things, said, "OK, this still does a lot of revenue. It has 100 million users a month. We're pretty sure we can do something cool with it." So they bought it.

Shontell: There was a bidding war for it too. Answers.com wanted it.

Vogel: There was a very quick bidding war that they won. I think the entire cycle was seven days, which is crazy when you think about how that works. Probably five or six months after they owned it. I wasn't there, so I can't say this definitively, but I can guess. I think it was a bit of a bigger mess than they thought.

I got a phone call from Joey Levin, who is now the CEO of IAC. He might deny it went this way, but it very much went this way. He calls me — Joey's a very direct character — and he says, "What do you think of about.com?"

My answer — in perfect arrogance was — "I don't. Who thinks of about.com? Nobody. It's a thing with these blue links on it. I don't think about About.com."

He says, "Come in and talk to me about it." I go in and talk to him about it. I thought he wanted me to help him find someone to run it. I went into his office, and the next thing I know, I'm going home with a stack of information.

I'm thinking, "Ugh, I'll look through it, I guess."

By the time I got through it, I had a full mental turnaround on what this thing could be. I was definitely like the 25th person they talked to.

Shontell: It was founded in the search era, right? There was no social or Facebook driving a ton of traffic. It was all the good old days of Google search traffic.

Vogel: It's all Google search. The model was — this is important to note because it took us a bit to figure out — the model was the same thing as AOL, or the same thing as MSN, or the same thing as Yahoo. It was a big general information site. In our case, we made the content ourselves with experts. They made content different ways. But it was a big general information site. I decided I would ... I'm like, "OK, you know what? I'm going to do this." I went and I signed up to do it, and a little bit of the reason was the "you can't fall off the floor" reason. I'm not going to be the guy who ruined About.com. It's already ruined, so this is all upside here.

What Marissa Mayer and Yahoo did wrong

marissa mayer

Shontell: What do you think of Marissa and Yahoo?

Vogel: We can actually talk about that. We have point of view on that, which is part of how we decided to do what we did. We actually have a strong point of view on that. I'll make this story a little shorter here.

I joined, and within a year we took the employees from 150 to 250. Every person, with the exception of one or two above senior director was new. We have 250 people now, and there are probably 10 who were there before we got there. When I got there, I couldn't tell you how many ads we served the day before. I couldn't tell you how many visits we. It was just a mess.

We got there and spent the first year building a data-science team so we can understand what was going on. Building a sophisticated programmatic ad stack because our site kind of looks like crap. It's very hard for us to sell premium stuff. So we're going to start selling programmatic things like moving away from some other monetization things. We used a lot of Google ads and we have to not do that. Users don't really like that at scale. Hired a bunch of smart people. I basically went and drove the "A-Team" van around New York and was like, "I know you, you're great. We've worked together. Come join us!" I think people got excited about the chance to fix an iconic internet.

A year and a half into it, we launch a brand-new site and rewrote every line of code. We had code from the '90s in there. We put forth the new About.com and everyone was excited. We stopped the decline. We started to make more money, traffic stopped going down. We could go to a cocktail party with a straight face and say, "Look at this things." We had some pride in what we were doing and it was making some sense. We felt good, and then six months later we're still in the exact same spot and we're like, "Ugh, why is this not growing?" Again, at this time, everyone's really happy with us. IAC is happy with us.

Probably a year after we launched, we went back to IAC, and this was the scary moment, this was like the big move, and said, "Guys, everything we did was wrong. We're doing it wrong."

Shontell: How did you come to that? It just stalled?

Vogel: It goes back to your Marissa question. We realized that our fundamental model of what we were doing was wrong. Our value is we have this great content that advertisers will like and consumers like, but nobody cares about a general-information site anymore. You have three constituencies when you're a publisher: advertisers, consumers, and people who send you traffic (basically algorithms). And it turns out that if you play tennis this weekend and hurt your knee, you don't want your "why my knee hurts" advice from About Health. You want it from WebMD or Everyday Health. We're like, "Oh, point." If your router breaks at home, you don't want that from About Tech; you want that from EnGadget or The Verge or someone how to fix it.

Advertisers? We heard this constantly: "Your data is great, your scale is great, we like your content, but you're not endemic, so we're not working with you." They want head-of-household moms, and they make computers, but they would not give us any money. And then the other problem was algorithms. Google and Facebook and those guys no longer knew what to make of us. You can't have, "Symptoms of Colitis" content on the same domain that you have "How to Unclog My Drain." On the same domain you have, like, "How to Cook Beer-Battered Chicken" and "How to Fix My Tendinitis."

Shontell: It kind of works for Wikipedia, though.

Vogel: We'll talk about that in a second. It's a little bit different. For a site like us ... Wikipedia's traffic is going down, by the way, from search, because they're not specific. If you have colitis, you'd rather go to a colitis-specialty place than Wikipedia. They're losing also.

We came to the realization that we needed to do something. We went back to IAC and to that meeting and said, "Here's what we're going to do: We're going to turn this place from AOL or Yahoo or MSN, and I'm going to turn this into Condé Nast or Vox. And that's what we're going to do. This is either going to work and be a great success or we're going to crash the plane as we're flying it and this is going to be a horrible failure. But we're betting, because our content is good, because we still have search traffic, because we know how to play social, that we're betting that we can do this."

And IAC — because they're not a media company, they're an internet company; it's a huge difference that I've learned — they basically said "Do it. Do it. Go ahead, take the chance. Roll the dice and do it. We'd rather have the outcome that you are the next Condé Nast than have the outcome that is now, which is we're going sideways."

'We could have literally gone to zero"

Barry Diller

Shontell: That sounds like it makes a lot of sense. But there is huge risk involved with a move like that.

Vogel: Existential risk. We could have literally gone to zero.

Shontell: Yes, because you have, what, over 100 million people visiting About.com?

Vogel: Yeah, about that.

Shontell: And you're talking about all these new properties that have to start from scratch, right? Then what's left for About.com?

Vogel: What we said was, we're going to take pieces of About.com, we're going to break them off and make these new brands, and then when we're done, About.com is going to go away. As of May 2, we're announcing a new brand name for all of overarching brand for our brands, and About.com is going away.

Shontell: This site that had 100 million-plus readers, you just canned.

Vogel: We didn't can it yet, but we're canning it in six weeks. Again, because we've now made five different, sites that if you add them up have more users than About.com had. That was the trick.

Shontell: How long did that take?

Vogel: We've done it over the last 12 months. The story of the first one is an easy one to tell.

Shontell: Within a year you've built four new brands that now are bigger than About.com ever was.

Vogel: In aggregate, when you add up all the things, not ever was, because that was humongous, but we are — our traffic now, we have more traffic now with four of our five brands launched. So four brands in the market, one brand still under the About.com name. We have more traffic now than we had a year ago, two years ago, when we were just About.com.

Here's what we did: The first thing we wanted to launch is we wanted to launch ... We launched a health brand called Very Well. We dove right into the pool. Health is our most valuable, most-trafficked, biggest vertical, so we came up with an idea. Our content is very much in the style of like WebMD or Everyday Health. But we thought those sites, we just didn't think they have served a market need. We thought that we could make a beautiful, kinder, gentler health site. You go to these some of other sites with a headache, you think you have a brain tumor. You come to us with a headache, we're going to make your headache feel better and explain why you had a headache and make it better. That was the thesis.

So we took our 100,000 pieces of health content of About.com, threw 50,000 in the garbage because they were old. We didn't like them. The other 50 [thousand] were read by our writers. If it was medical information; it was read by a doctor. We had 30,000 pieces of content read by physicians, edited, cleaned up. Built a brand-new site from scratch, a new taxonomy for our content, put it on the site.

We did that. We built this beautiful new site from scratch, everything from scratch. Took design, product, content, tech, everyone, walled them off. You now work for Very Well; you don't work for About anymore. You work for Very Well.

Shontell: The About people who remained were no longer able to write about beauty and health or about —

Vogel: Yeah, we moved the health stuff all to Very Well. Health is now gone from About.com, and we launched it in April.

Shontell: You see, instantly, a ton of traffic to About.com, I'm sure, go away.

Vogel: Terrifying. Really, you have to compare all of About.com to now About.com, plus Very Well, right? So here's what happens, a lot of, more, probably at the time, 70% of our traffic was from search. Three weeks after we did this —

Shontell: No search traffic, I'm sure.

Vogel: No, what you can do ... the trick is making the search traffic move to your new place. We built a new site with a new taxonomy so every URL over here gets redirected to one over here.

A month after we launched this thing, our health traffic, which is our most valuable traffic, was down. Traffic was in like 45% or 50%. But we're like, "OK, we're just going to hold on and we're already halfway done doing our next vertical." All of a sudden, Facebook, Google, all the domains figure it out. As of now, today, I think our health brand has — I'm going to get this slightly wrong because I always get numbers slightly wrong — I think we had 8 million uniques when we started a month, I think we have 17 million uniques now to Very Well. So we've pretty much doubled in size in 12 months. We're by far the fastest-growing thing in the health space. I think we're No. 4 or 5 on comScore on health because our bet was right ...

We knew that this would work. Then we launched something in the summer. Ran a very similar playbook on our personal-finance content called The Balance, which has pretty much doubled in traffic since we launched it this summer. We launched something called Life Wire in November, which is our evergreen-content tech site — how to fix my router, how to unbrick my iPhone. We launched three weeks ago, about a month ago something called The Spruce, which is the third-biggest home site on the internet, only behind HGTV and the Hearst Brands. We had such scale on About, that we're launching these new brands into the world that are new to the space with no legacy issues, look like start ups, but all of a sudden, like we're top 10 in comScore because we're coming with such scale. The market's like, "What? Where do you guys come from?"

And we have one more site to launch, called Trip Savvy, which we're launching right after we change our name. We're now going to change the name of the company May 2.

Shontell: So as a collection of sites, how much traffic do you guys have?

Vogel: More than we started. I think — I don't know — last month ... internally, I think comSquare was like 60 million last month or something. So we got a lot of scale. We're around the same size as you guys. I think internally we're like 100 million.

The future of media isn't about scale; it's about finding a niche

Very Well

Shontell: So, for a while it was great to be a site that was all-encompassing, had all this scale, you know, the Yahoos, MSNs, and you. Are you're saying that that's no longer the case and that the future is to go niche?

Vogel: It doesn't work. Yeah, it doesn't. I just think everybody wants expert —

Shontell: The scale days are over?

Vogel: You see it in the mall, right? There's no place for a department store. People don't want that anymore. People want things that are specialty. I think the other people in our position —

Shontell: Except for Amazon.

Vogel: Except for Amazon. But there's always a place for that. There's a place for Amazon and Target and Wal-Mart, cause they're competing on price, or service, or something. Not on expertise. And that's more of like a retail thing. But in content, you generally want content from someone you believe is an expert in that. That trends toward being an expert in like, a domain of content, which trends toward being vertical. And I think different people have made really interesting decisions about this.

I think AOL has made a brilliant decision. We looked at our content and said, "All right, we make really premium content in these very premium areas." AOL looked at their type of content and said, "You know what, this is content that is probably going to be best served by programmatic ad selling." Cause of the type of content it was, not that it's good or bad, it just is. They built an unbelievable ad stack, they assembled properties that work like this. And it totally worked, and they crushed it. And now they're like Target. Like it totally works for them, and now that's why Yahoo makes sense. I think MSN didn't want to deal. And Yahoo made a different decision.

Like we looked at what we were doing and said, "We make money one way. We sell ads against content. And we're doing it wrong, but that's the fundamental model that works for us." Yahoo wanted to become something completely different, that I don't think anyone totally understands exactly what the thesis was. And I think that's why it didn't work. I think the AOL-Yahoo combo is gonna be great. It's gonna be great for advertisers. If it works it's gonna be like a legitimate third option to the big two. And I think they took the right approach to content.

Shontell: The big two being Facebook and Google. The Duopoly.

Vogel: The Duopoly. No media buyer in the world wants there to be only two places to buy stuff from. Look, it's really dangerous and they're growing like crazy but ... If you make valuable content, and you give people a really great experience, there is a place for you in the world. When you're general, like when you're the old About.com, there might not have been a place for us in that world. Because it just doesn't work. But when you're Very Well or The Balance, and when you're like a mutual-fund company that needs to advertise against people who are specifically looking for mutual fund information, we're an unbelievable resource for them. That's better than like guessing someone wants mutual funds on Facebook.

Shontell: So one thing you mentioned is that with AOL and Yahoo merging under Verizon, you think it'll be great. And could maybe challenge these guys. And that's a mega-merger.

Vogel: That's a big one.

Shontell: You know, all these huge companies coming together under Verizon. Do you think that's going to keep happening, and is that is your goal with About, to build it up to a point where you could join and be a power player in a big mega-merger like this?

Vogel: I don't know. I think if you look at the history of IAC they, you know, the market we have is $5 billion or $6 billion, but the value of the companies that have come out of IAC are, what, like $50 billion or $60 billion. So there is a history at IAC of being the builder, not the buildee. And if we do this right, we have a really interesting opportunity to build something great.

Shontell: So one kind of different question for you, what's Barry Diller like?

Vogel: First of all, he's great. He does not suffer fools. There's something incredible frustrating that happens when you deal with him in that you'll be in a meeting with him, or you'll get some feedback from him via email, or secondhand, or you'll talk to him directly. And he will say something to you that, at the time, you will be like, "I don't what?" Because you're like an arrogant CEO and you're like, "I ... I ... I know better about my business than he does. What's he talking about?" And then a day later, you're like in the shower, and you realize, like, "Ugh, he was totally right. He was a thousand percent right."

There's nothing he hasn't seen or been through, and he has this really unique way, which I think you do, when you sit in his perspective, of just looking at our problems or issues and just ignoring the nonsense, and like, bam. Like right to it. And sometimes by getting right to it you don't understand that right away, because you're too in the weeds, or you're busy running the business. But he just like, nails it. And he's great to work for. He does not suffer fools, there's not a lot of, like, nonsense. But it's awesome to work for someone that, and this doesn't happen a lot.

Shontell: Very true. So to wrap this all up, if you had to say the one thing you've had a lot of different lives in your careers. In all of them you've found success. So what do you think is the one common thread that has made you successful in all of these different areas and, ultimately, in your career?

Vogel: I'm annoyingly relentless when I believe in something. When I was a banker, I figured out that you'll be much better at doing something if you're passionate about it. And it's not saying like, "My great passion in life is to build publishing companies," or "My great passion in life is to build award shows." But if you believe in what you're doing and you can get excited about it, you're gonna be a thousand times better. And I'm really direct and I'm really honest with people, which doesn't always work that well. But if people always know where they stand with you, you will always know where you stand with them. And I think that's really valuable.

Join the conversation about this story »

NOW WATCH: The 5 workouts that burn the most calories in an hour

A successful CEO says the best career move he's ever made was taking a year-long road trip and hitting maximum boredom

$
0
0

bronco

Neil Vogel is the CEO of a 250-person company, About.com, and he cofounded Recognition Media, the company behind New York's Internet Week, and the "Oscars of the Internet," the Webby Awards.

But before that, when Vogel was 32, he left the work force for a year. He bought a Ford Bronco for $3,000 on eBay, took the roof off, and went on a road trip.

His ultimate goal: reach maximum boredom. Then figure out what to do with the rest of his life.

Vogel had been one of the first ten employees at a successful dotcom startup, Alloy Media and Marketing. He was single, didn't own an apartment, and had no real responsibilities.

"My father gave me great advice,"Vogel told Business Insider in a podcast episode of "Success! How I Did It." He said, "Look, you're in a position where you don't have kids, you don't have anything. Go get yourself bored and figure out what you want to do."

By not thinking about much of anything for a long period of time, Vogel says he was able to gain clarity.

"For a couple of months I was trying really hard to think about [my life] and figure it out," Vogel said. "Then I decided to not think about anything. Then everything became clear. It's an amazing feeling to have no responsibilities. Just, 'What am I going to do? Oh, I'm going to drive here and visit my friend.' Or, 'I'm going to get on a plane, go to Europe, and hang out.' It was amazing."

Neil VogelAt the end of the summer, Vogel found himself on a beach. All of a sudden, he couldn't wait to get back to work.

"I was at the beach with some friends before Labor Day weekend in 2004," he recalled. "I hadn't done anything for the whole summer. I wasn't even checking email. I panicked because I had hit maximum boredom. I got in this truck and I drove back to Manhattan. When everybody was going out to go the beach and have fun, I got on a plane, flew to LA to where my business partner was, and we wrote a business plan. That became the business that was the Webby Awards and Recognition Media."

Vogel realizes most people don't have the financial means to take a year off work. "Believe me, I know it's an incredible luxury to be able to do that," he said. 

But if you can swing it, Vogel swears the experience is a game-changer: "I tell people it was the best thing I've ever done in my whole life."

Check out Vogel's career (and road trip!) story below, in this episode of "Success! How I Did It," a podcast about the career paths of today's most inspiring people:

Subscribe to "Success! How I Did It" on Acast, Overcast or iTunes. Check out previous episodes with:

SEE ALSO: The CEO of About.com has a crazy plan to save the beloved 1990s website from extinction — he's shutting it down

Join the conversation about this story »

NOW WATCH: People on Twitter are roasting United Airlines after a passenger was forcibly dragged off a plane

How a 'brash Jersey boy' grew 2 businesses to tens of millions in revenue and became a social media super star

$
0
0

gary vaynerchuk

Gary Vaynerchuk is a best-selling author, entrepreneur, startup investor, and media personality. The self-proclaimed 'brash Jersey boy' and diehard Jets fan has been hustling since he was 14.

His hustle mentality helped his family's wine business grow from a few million dollars in annual revenue to upwards of $60 million. It also landed him a dinner with Facebook founder Mark Zuckerberg, who invited him to invest before its 2008 IPO.

Vaynerchuk has amassed a huge following on social media, with more than 1.4 million Twitter followers, 1.7 million Instagram followers, and 2 million Facebook fans. He's turning his knack for marketing into a media empire, VaynerMedia, which he says will generate more than $125 million in revenue this year.

We spoke with Vaynerchuk about how he got started and how he's building his Vayner empire, in an episode of "Success! How I Did It," a Business Insider podcast that explores the career paths of today's most accomplished people.

In the podcast, we cover:

  • How Gary grew his family's wine business from $3 million to $60 million in annual revenue
  • What he did in his 20s to set himself up for success in his 30s
  • Why Zuckerberg invited him to dinner, and what it's like to eat with the Facebook CEO
  • How he found and invested early in Facebook, Snapchat, Tumblr, and Twitter
  • What you need to know to build a big brand and a social-media following
  • How to know if you're a "fake" entrepreneur
  • Why you should dump your "loser" friends (and maybe even your parents?!)
  • Why he doesn't eat breakfast or lunch
  • When he will buy the New York Jets — his ultimate goal — and who will be his future GM

Listen to the podcast or read the transcript below:

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

The following transcript has been edited for clarity and length.

Alyson Shontell: Gary Vaynerchuk is with us today. He's a social-media guru and a marketing master. He's actually one of the first-ever YouTube stars. He turned a wine company that his family started into a business that was making tens of millions of dollars a year. He's a best-selling author who runs VaynerMedia, which reportedly does more than $100 million in annual revenue.

I want to go back to your childhood. A lot of people might think you were born into success, but your beginnings were pretty humble.

Gary Vaynerchuk: You know, it's funny, I actually think my kids are going to have a harder time being successful than I was. I think being born in Belarus, coming here with nothing, my parents working every minute — that instilled a huge competitive advantage, a chip on my shoulder, a work ethic. Immigrants win a lot and they win a lot because of a couple core things.

I didn't start with a lot. I have friends who started with a lot who have now built on top of it, and I'm impressed because I used to think that was a disadvantage. I think there are a million ways to do it.

I like my dad's narrative the best. He was 22 when he came to America, had nothing, so that's a really amazing story. I'll take mine. Baseball cards, lemonade.

Shontell: You were doing all those things that kids try to do when they're entrepreneurial-minded. You had a series of lemonade stands, right? A franchise almost.

Vaynerchuk: I didn't know it was a franchise when I was 6. I've always had a knack for branding, so even with the lemonade stands, it was "Gary's Lemonade Stand." I worked on the signs all day, more so than on the lemonade itself.

Then I learned you had to make good lemonade to build an actual business, so that taught me about lifetime value and quality. I learned a lot as a kid. I was a very poor student, which was really unusual for immigrants, but I didn't see education as my way out. It originally started as, I'm a good salesman, and then it was, I'm a good businessman, and then it was, I'm a good operator. Now the current term is I'm a good entrepreneur. It's a DNA thing with me.

Shontell: Like you said, your dad came here when he was 22 and he built up a wine-and-liquor shop. From what I read, you all shared a studio in Queens. There were eight of you in a studio. Packed house.

Growing a family wine business to tens of millions in revenue

gary vaynerchuk

Vaynerchuk: Packed house. My dad first was a stock boy and then was a manager. An amazing piece of advice for a lot of kids, 50-year-olds, whoever is listening right now: Saving money is a good strategy. I didn't have stuff, but it was because my parents were saving. They were saving. We didn't get toys. They told us to go outside and paint a rock.

It was very, very smart because after seven or eight years, he was able to buy a liquor store of his own in Springfield, New Jersey — Shoppers Discount Liquors. He built up a great business. A $3 million- to $4 million-a-year business. He made it, right? Literally made it. Middle class, upper-middle class, and made it. We didn't ever need anything. They didn't spend a lot. They're big savers but we made it and then I got dragged into it at 14. I’m the oldest son; I'm one of three.

Shontell: At 14 can you even be in a liquor store?

Vaynerchuk: Yeah, because nobody was really checking. At 16 you can get a permit but I was in there at 14. That's probably why they put me in the basement bagging ice and stocking shelves. Somewhere around 16 or 17, I realized people collected wine, and that caught my attention because I was deep into baseball cards and comic books.

I really enjoyed learning the wine world and really became fascinated by it. That all manifested a couple years later to me launching, in 1996, a site called WineLibrary.com. We rebranded the store to Wine Library and that started my first chapter. We grew the business from $3 million to $4 million a year initially, to $45 million then $60 million a year in a very short period of time.

Having a website 21 years ago for a single-store wine shop, liquor shop, in New Jersey was like having a VR studio in a flower shop right now Iowa.

Shontell: How did you know to do that?

Vaynerchuk: I went on the internet in '94 and in four seconds landed on a AOL bulletin board where people sold baseball cards, and I just knew. The same way that I knew that Twitter would be big and that's why I invested. Or Tumblr or Facebook or Uber. I've done Snapchat. I've done really well on one core principle which is, I think I have an intuitive ability to understand consumer behavior more than the average bear, and I'm not scared to bet the farm on that gut feeling. Even online dating. I met my wife on JDate in 2003.

I just remember thinking in 10 years, every single person — I didn't think they'd be swiping to the right — but I'm like every person's going to do this because this is practical. People are romantic. People are like, “I'll never buy a tomato on the internet.” This is what I heard in 1996.

I'm like, "Yeah you will. Because time is valuable, because other things matter more." I knew because I thought people would buy stuff on the internet long before a lot of people thought that.

Shontell: That's still 10 years before you really became known for your YouTube videos.

Vaynerchuk: Yes, that's right.

young Gary Sasha Vaynerchuk dad son Wine Library liquor store

Shontell: That's where I think a lot people assume that your career started but you were working behind the scenes for 10 years building up this internet business.

Vaynerchuk: The thing I'm most proud of is that when people try to take a razz at me as a self-promoter — and I'm very empathetic to that, because I do so much around my personal brand — but if they even spend four seconds digging, they’ll realize I didn't say a word until I was in my mid-30s and had already built an enormously large business. Not by tech standards, but I had no cash infusion. A 10% gross-profit liquor store in the mid-90s — to grow to that scale was very hard.

VaynerMedia's been fun for me. I would tell you secretly, and I haven't said this a lot — I'm trying to give you a nugget for your podcast. I needed to build VaynerMedia up for myself because I was starting to become Gary V, to your point. The wine videos put me on the map. I wrote a book in 2009 called "Crush It," which gets me into the "You're a motivational speaker" or "You're a pundit." It started becoming about my personality and me on Twitter, more than my business accomplishments, so I needed Vayner.

I need to build an agency against the biggest firms on Madison Avenue, and I needed this big success even to just remind myself that I'm an entrepreneur, an operator, an actual businessman first. I'm not what I think there's a lot of right now, which is a lot of people running around and saying they're an entrepreneur on Instagram.

I'm proud of that. I look at something that is upsetting to me. When I see Yik Yak sell for $4 million, I feel bad for the guys.

Shontell: It used to be worth $400 million.

Vaynerchuk: Correct. But I don't feel bad, because that's entrepreneurship. That's business. I think a lot of people are getting confused right now about what success actually looks like. Only a very few will break through and actually sell their business, actually go public, actually make it.

What to do in your 20s to set yourself up for success in your 30s

Gary Vaynerchuk

Shontell: What did you do in your 20s to set you up for success to really strike in your 30s?

Vaynerchuk: I worked my face off and I learned my craft.

Shontell: How many hours?

Vaynerchuk: All of them.

Shontell: 24? No sleep?

Vaynerchuk: I slept. I'll give you a good example. There are not a lot of 20-year-olds who can say they worked every single Saturday of their entire 20s. Period. I did.

I worked 50 to 52 Saturdays a year, from 22 to 29, until I met my wife and started having to build some level of work-life balance. That's hard work.

Shontell: What did you do on those Saturdays?

Vaynerchuk: I got to Wine Library at 7:30 in the morning and I left at 7, 8, or 9. I just worked. I just built a management staff, I tasted wine, I built up the website. Learned how to do Google AdWords. I just worked. When I tell you worked, I am and was a workaholic and I didn't say a word. I didn't do podcasts. There wasn't social media, but there was. I didn't start a MySpace page to say look at me, look what I'm doing. I had the outlets. I built my craft.

I ran a business. I was a merchant and I was training up my people and training someone to be able to replace me if I got hit by a bus. I was watching trends and that's what led me to YouTube.

I was like this is going to be big, but wait a minute. I can't buy ads on this like I can on AdRoll or on Google. What do I do with this? Should I get a camera and just talk about wine? That sounds like not a bad idea. Content's important. I didn't even call it content, right? This world didn't exist that we all live in now. I thought about Emeril Lagasse when I did it. I thought about that.

I started reviewing wine. That did take off, as you mentioned.

Getting a big break from Conan O'Brien

Shontell: Was it quickly that you got a following?

Vaynerchuk: No. I started on February 20, 2006. In July of 2007, a year and a half later, the break happened. It was still quite small, but I got invited to be on the Conan O'Brien show.

Everybody, and I mean everybody, wrote about me being on Conan because it was like, “A YouTube person on Conan?” Then the clip was awesome. I got him to eat dirt and grass. It went viral on YouTube and that took me from being a top 500 followed person on Twitter to a top 50 person followed on Twitter. Then, Kevin Rose asked me to be on Digg Nation. I was on the "Today" show and Ellen and then it started rolling.

Shontell: Wow. What was it that Conan saw in you that made him invite you on his show? A wine guy, a YouTuber.

Vaynerchuk: He had no idea who I was. A producer of that show's cousin was watching me, thought I was funny. They have these pitch meetings where they're like, “What should we do? Well, there's this weird guy on the internet who's like talking about wine in a very different way.” They called me. I had always thought what would happen if that happened so I had the idea of —

Shontell: You thought about what would happen if Conan called you?

Vaynerchuk: Yeah, of course. I already think about what I'm going to be doing on Alexa voice and what am I going to be doing on VR and how am I going to use message bots and what's going to happen when my kids are 18 and when I buy the Jets — who's going to be my GM?

Shontell: Is it going to be [Group Nine CEO] Ben Lerer?

Vaynerchuk: It's definitely not going to be Ben Lerer. I'm not even going to let him in the stadium. By the way, I referenced Ben earlier. Ben's dad was very successful, and to watch how hard Ben has built Thrillist and the Group Nine Network. It's just very inspiring and makes me hope that my children will have that fire. It's not like he's a trillionaire but he had stuff. Way more than I did.

Shontell: Kenny Lerer, his dad, was the cofounder of The Huffington Post. [Lerer also sat on Business Insider's board.]

Vaynerchuk: Right. Ben matters to me a lot. Ironic that you brought him up because he shows me very closely, because he's a friend of mine — hey, you can have stuff but still be on fire and do it. That's been fun for me.

Anyway. Then YouTube sells.

Shontell: To Google for about $1 billion, and it was a massive deal at the time.

Vaynerchuk: Oh my God. It was $1.7 billion and, just for everybody at home, if Musically sells tomorrow to Viacom for $250 billion, that's what it felt like ... I said, Holy crap. I was right about e-commerce, I was right about Google AdWords, I was right about email, I was right about retargeting banner ads. I'm right about blogging. Now, I'm right about YouTube. I've got something better than, “I can sell wine.” The next time I feel it, I'm going to invest. And that happened a couple of months later, at South by Southwest.

What it's like to grab dinner with Mark Zuckerberg

mark zuckerberg phone

Shontell: That's when you became a startup investor? What was your first investment?

Vaynerchuk: Twitter.

Shontell: You go from investing in nothing to Twitter. That's a pretty good track record.

Vaynerchuk: It gets better. The next thing I invested in was Tumblr and Facebook.

Shontell: How did you find Facebook early? In what year?

Vaynerchuk: It was 2008. I had made a video, one of my first business videos that was titled "Facebook should be worried about Twitter." It was like, "Why am I starting to use Twitter more?" It wasn't this big grand statement. It was one person's point of view.

That goes viral inside of Facebook. [Startup investor and founder] Dave Morin sends me an email — he was the head of platform at the time. He goes, "Hey, a lot of people are debating this video. Would you ever come out to Palo Alto and give a talk about it?"

I'm like, "I'm going to Palo Alto next week"— which I wasn't.

I gave a talk about consumer behavior. I didn't even know but Mark was in the audience. He came down. He was like, "You want to have dinner tonight?"

I'm like, "Yep." I had a flight that night. I clearly canceled that.

We hit it off and in 2008, a lot of times when he came into New York, he would hit me up and we got to know each other. Somewhere in that year, Mark and [his sister] Randi emailed me and they're like, "Our parents are selling a bunch of Facebook stock. Do you want to buy in?"

I said "Yep." That was life-changing.

Shontell: What is dinner like with Zuckerberg?

Vaynerchuk: This was 2008, 2009. I'm built on emotional intelligence. I'm not the smartest. I just know what people are going to do. He's a tech kid and an engineer and a Harvard kid. I go in thinking he's that. I leave that dinner and I'm like, "F---, this kid absolutely gets human behaviors." That's when I knew that he was going to win, because I'm like, "Wow, he's got both." He knows how to build it. I can't build stuff. I'm not an engineer. That's not what I'm in to, but I'm like, "He understands what I understand." That was it. I was just bought into him from day one. He's super smart.

We're a funny match in the 10 or 15 times we've interacted because I only want to talk and he only wants to listen. That's why he'll probably end up with a hell of a lot more money and be successful, but he's extremely bright. I like him a lot. I think he's kind, but most of all he just understands people. That's weird because people look at him as introverted and quirky and all that but I don't see it and I never saw it. Obviously, he's more media trained and grown into himself. I can't speak to how he rolls now because I haven't spent time with him but I can definitely tell you there was no confusion from those initial meetings for me, and I mean none.

Shontell: Fast forward. You then invested in Snapchat down the road, right?

Vaynerchuk: Affirmative.

Shontell: How did you find Snapchat? It's one thing to find and spot something but another for a founder to let you in.

Vaynerchuk: I should have invested earlier. I was way on it before I actually invested, but I don't like reaching out. I never reach. I have not spent a day with [CEO] Evan Spiegel. I've spent a ton of time with Emily White, who was originally his right hand and then with [COO] Imran Khan. I was bringing a lot of value, and they were like, “Hey, would you like to invest?” I said yes.

Building a new-age ad agency that generates $125 million in revenue

ryan harwood and gary vanyerchuk

Shontell: Let's talk about creating VaynerMedia. It’s a huge thing that you're in now, and you and your brother did this in 2009. Does it really generate over $100 million in annual revenue?

Vaynerchuk: We'll do over $125 million this year.

Shontell: Where does that all come from?

Vaynerchuk: That comes from clients like Chase and Budweiser and GE and Toyota and Quaker Oats and Amazon Prime in the UK paying us for either spending their media and given us a commission, making video productions to distribute on the social and digital web or managing their social and digital properties and producing non-video content or consulting for them on their strategies.

Shontell: You're a social-media agency of sorts?

Vaynerchuk: We're a modern-day ad agency. The only difference is we do everything and most don't because I'm building it for myself. I don't want to sell it to a holding company. We've started working with small businesses. I come from that world. Small business, it costs $25,000 a month, so you have to be doing millions in revenue, but we're just building a client service business. It's nothing sexy. It's not like I invented anything. The only difference is I'm really good at marketing.

Shontell: Sum up what VaynerMedia is because there are a ton of moving parts. And then how did you start it?

Vaynerchuk: In 2009, ESPN sent me an email and said, "Can you come to our office and talk to us about Twitter? Why do you, Gary V, have more followers than all of the Disney properties combined?"

Shontell: How many followers do you have these days?

Vaynerchuk: These days I have 1.4 million on Twitter, 1.7 million on Instagram, 2 million on Facebook. At the time I had about 700,000.

The email was sitting in my inbox because I was busy. By the time I came back to it that night, they had already emailed a second time. They're like we'll pay you $5,000.

It was really cool and I was really excited. We had this conversation and I get out of the office and my brother calls me. My brother is now a senior at Boston University. It's February and he's graduating in May. We're under the gun because we've promised ourselves we're going to start a business together. We're thinking fantasy sports, because we think it's going to be big. We're trying to figure it out and I call him and I go, "You know how I talk about maybe one day buying businesses? Instead of doing that cold, maybe we should start a consulting firm," is what I said. Learn about corporate America, make some money, and then decide what to do. That's what we decided to do.

I got another email from Gillette, the razor company, to do some sort of idea session. We just started. We didn't know what we were doing. We hired four or five of AJ's friends from college and high school and we literally started reaching out to people. I started using my network.

The first two years, what happened, a couple months later, “Crush It,” came out and that's when Gary V. was born.

Shontell: That's your first book?

Vaynerchuk: That's my first book. It went really viral.

Shontell: You did a 10-book deal, right?

Vaynerchuk: I did. What was not reported in there was if my first book sold enough copies to pay for the entire 10-book advance, I would become a free agent, which is what happened.

I wrote that book. It went very viral and then I started getting offered $25,000 to give a speech and that was so hard to say no to at the time in my life.

Shontell: Why did you say no?

Vaynerchuk: I didn't, which means I wasn't involved in Vayner that much the first two years. I got us the clients, I would check in, but it was really AJ and our band of 20 young characters in the beginning and the first two years show that. I think we were doing $2 million in revenue.

In August 2011, I decided to take over full time because I was stunned that two years later, nobody was doing what I wanted to do two years earlier and I realized that corporate America's slow. I attacked. I saw and opening and I attacked. I got serious. From August 2011, which really means 2012 because I was cleaning up and hiring ... In the last five years, we've gone from 25 to 750 employees. From $3 million to $125 million in revenue, and now we're a real player as an agency.

What you need to know to build a great brand

Gary Vaynerchuk happy Jets fan celebrate

Shontell: When you're building a brand, what are the most important things that you need to know?

Vaynerchuk: First of all, you have to know who you are, what you are, and what you stand for. That's clichéd marketing-bullshit jargon, but it does matter. It helps. You have to know who you're targeting. I think too many people fight the market. There are certain people who are never going to want your stuff no matter what you do. There are certain people are never going to love me because I curse and I have bravado and I'm a Jersey boy and I'm brash and they won't take the time to see the humility and the patience and the truth. They shouldn't.

Who am I to actually make them have to take that time?

Brands have to be honest with themselves and know who's going to buy their stuff and who's not. Most importantly, they need to market in the year they actually live in. We have brands spending ungodly amounts of money on print, television, outdoor radio, programmatic banner ads, website takeovers. Garbage.

When I say garbage, they work-ish. They're just so overpriced. I don't know what else to say. I do not believe that it is worth the hundreds of thousands of dollars in distribution and hundreds of thousands of dollars in cost to make one 30-second video to tell a 29-year-old woman that your soap is great, in a world where she is not going to consume that commercial.

I do not think it's great to spend millions of dollars on banner ads across the desktop internet on the right side below the fold of tons of websites. Nobody's ever going to pay attention to that banner ad because the CPM cost is low.

Shontell: One thing that you’re doing at Vayner that's interesting is your merging content and brands. In the journalism world, people start screaming. There was news that BuzzFeed is launching a team of people who are going to start sending you things that you should want to buy. There were people in the journalism who were like, "Oh my God, good thing they work for a forward-thinking publisher, because The New York Times would never do something like that."

Vaynerchuk: New York Times does it. New York Times has a wine club in their newspaper in the “Dining In” section. All that is is romance and highbrow snobbery … The New York Times sells wine. The New York Times is a competitor of my family's wine business. I don't know what else to say. I have a lot of friends who work at The Times because I'm a fan. It was so fun to make fun of them.

I was like, “You've been doing it.”

They're like "Oh."

I'm like, “Where are you?!”

But yes, I have. I've started something called the Gallery. VaynerMedia is what I've been running. I've created a holding company called Vayner X. VaynerMedia sits on the left. On the right side is something called the Gallery. Our first purchase was a company called Pure Wow. It's in that Pop Sugar, Refinery29, female space.

I had become increasingly aware that Vice and BuzzFeed and Vox were building creative shops and felt like they were true competitors because they had better digital DNA than, let's say, the agencies on Madison Avenue. I thought, "Look, I can sit here and watch that happen or I can do the reverse." In my great dream of building the greatest communications and marketing machine, publishing will be part of it. I never worried about the conflicts and things of that nature because everybody's doing it. New York Times is doing it. It’s just that an agency hadn't bought a publisher, because most of them couldn’t afford it and most of them don't have the — to be very frank — the ambition I have.

When you want to buy the New York Jets, you have to do big things.

The goal is to buy the New York Jets

Shontell: How close are you to buying the Jets?

Vaynerchuk: Far. The Jets are probably $2.7 or $2.8 billion. I'm nowhere close to that. The good news is I don't want to buy the Jets tomorrow. I love the journey of being an entrepreneur more than I like of the idea of buying the Jets.

The good news is, Woody Johnson's healthy and young and not looking to sell. We'll see how it plays out and if the booby prize is the Dallas Mavericks ... Well, no, actually Cuban's too young ... If the booby prize is the Milwaukee Brewers, we'll see and maybe it'll be something altogether different. All I can focus on is trying to build the business around giving me those kinds of opportunities in the future.

Why you should dump your 'loser' friends and family members

Shontell: I have a couple of wrap-up questions because you produce these advice videos on big topics that everybody thinks about when they run a business. First one: dropping a "loser" friend. You've done a video on this.

Vaynerchuk: Wow, I can't believe you went there. This is a tough one.

Shontell: How do you get rid of friends who are useless to you?

Vaynerchuk: This has been the one that I've been very hot on talking about in the world but I've been scared of because even when you just said that, I'm like, “Ugh. This guy's terrible.”

Shontell: It's a good, provocative headline.

Vaynerchuk: It is. I think that people are keeping very negative people around them and if they aspire to change their situation, it's imperative to audit the seven to 10 people who are around you.

That’s the reason I go after a friend, or a parent. In the details of that headline, I said "Hey, you may have to audit your mom. Not that I want you to never talk to your mom again, but you may want to take a step back." I've done this for friends and acquaintances. It's a very painful, eye-opening experience to realize, “Wait a minute, my dad actually doesn't want me to be successful because he's not happy.” Whether you call it misery loves company, it's not like parents are bad people. It's a human trait. It's just a thing.

Maybe if you got rid of one friend or spent a lot less time with one friend who's a real drag and a negative force and added a positive person in your office ... If you switched it from 80 days hanging out with your negative friend and one day with your office acquaintance who's super positive, to four days with your negative friend and 12 with this new person. I've physically watched I mentor in my organizations have a totally different life on that thesis.

It's lonely at the top — if you don't like that, then you don't start a company

GettyImages 457687288

Shontell: All right. That makes sense. It's basically the company you keep and if it's positive company, you think you'll be more successful. Another topic you talk about is, “It’s lonely at the top.” How do you solve for that?

Vaynerchuk: You don't solve for it because it's the truth. When you're the CEO, it's on you. It's Sally's fault. It's Rick's fault. Everything that's wrong at Vayner is my fault.

Here's what I would say. 80% of you who are listening are actually not entrepreneurs. You think you are. You're doing it because it's hot and what you really are is a great number three [third employee at a startup], or a great number seven. You're not actually built for eating shit and being in fire all day long. You're going to be more depressed. It's even harder and I think it's time we talk about entrepreneurship in a real way, because there's a lot more underlying suicide and depression in our tech startup entrepreneurial world …

I think we're in a vortex of fake entrepreneurship that's going to lead to a lot of pain so I want to talk about the loneliness because it is hard. I've had a shit week, Alyson. Honestly. There's been a lot going on. Clients, internal stuff. It's not fun but it's my calling. I don't even know anything else.

Shontell: How do you deal with it? Do you meditate?

Vaynerchuk: I put in perspective and honestly. I love it but I love shit. I love the pain. I love the process. I'm just watching kids I invested in, and really struggle and go to Coachella and skiing every weekend to deal with it. Which then means they're not putting in real work to the business.

They would have killed it as number nine at Instagram. They would have made a fortune. They would have crushed it as number 11 at Purple Mattress or Casper. They would have dominated as number 29 at Business Insider. But everybody thinks they're a goddamn founder now.

Shontell: The last one that I would ask you is you're clearly a confident person, you don't mind speaking your mind, you're assertive. How much of success, do you think, requires that?

Vaynerchuk: I think it's the one we see. I think the opposite version of me is the one we don't see, which is there are tens of thousands of outrageously successful businesses of very quiet, very calculated, calm executors who are confident.

You can't be successful without being confident. They believe in themselves. They have their own version of assertiveness … I think confidence matters and I think other things matter, like I would tell you empathy is probably why I'm more successful than confidence. I'm empathic to the customer, to my business partners, to my employees.

Vaynerchuk: You've got me in a very thoughtful zone. This is a very weird version of me.

How to focus when you're doing a million things at once

Gary VaynerchukShontell: Good. We'll capitalize on the weird. Rule No. 1 of running a business is focus. But you're doing 10 different things. You have your sports agency, VaynerSports, your media business, Vayner Media.

Vaynerchuk: Let's go through it because I think it will help and it will help other entrepreneurs. I think I'm good at making it look like that. It feels like a lot's going on but, for example, 80% of my public speaking is only accepted if I believe there's a business-development opportunity for VaynerMedia. Instead of doing RFPs like Ogilvy, I go to CMO conferences, speak real truths, and get a client without spending four and a half months courting them. That's smart. That's being VaynerMedia’s CEO.

VaynerSports. [My brother] AJ and his team are running it. I am — just like I was for VaynerMedia — the guy who gets Braxton Miller signed. Do I have to fly to Houston and close it? Sure.

Shontell: How did you do that?

Vaynerchuk: We hired somebody who went to Ohio State who had a relationship. We just started talking, getting to know each other and over the course of nine months ... We are going to build a very disruptive sports agency. We are going to make more money off the field for these athletes than anybody has ever done because we'll do a lot of small deals. We're going to hustle. We're not just going to rely on Puma, Reebok, Nike, Under Armor, and Panini Sports Cards. It's going to come to us in waves but that's how. Just personal relationships.

There's VaynerMedia, which is 90% of my time.

I've really calmed down on my investing because I think there's a lot fake entrepreneurship. Phil Toronto is running point for me and is looking at a lot of stuff, but I'm looking at very little stuff … Don't forget, I'm also working 15 to 18 hours a day, which means if you really think of somebody's eight-hour day and you think about 40 hours and then you think about lunch and breakfast and dinner, which I do none of during my actual day.

Why eating is a waste of time

Shontell: You don't eat?

Vaynerchuk: Nope. I eat at night.

Shontell: Don't you get hungry? I could never do that.

Vaynerchuk: Nope. This is the part where AJ jumps in and says, “Gary's actually a robot. That's why this is all happening.”

Shontell: Do you sleep? Are you one of those four-hour sleepers?

Vaynerchuk: Nope. I'm all in on Arianna Huffington’s [you-need-sleep theory]. Give me six or seven hours. Give me 12:00 a.m. to 6:00 a.m. every day, then I work out and then I work. I also take seven weeks of vacation with my family. It’s extremism on my work-life balance. But I'm getting a lot done.

Shontell: Well, that's something to aspire to.

Vaynerchuk: It's something to aspire to if it makes you happy. It's not to aspire to to make money. I can tell you that right now. You can make ungodly amounts of money working 9 to 5, or 8 to 2 on Wall Street. It's not about the money. The thing to aspire to that I think I'm a blueprint of is, forget about people knowing who I am or how much or little I make in my life. I'm happy every day.

Join the conversation about this story »

NOW WATCH: A flight attendant shares the reasons you can get bumped from a flight and the best ways to avoid it

'American Gods' showrunners Michael Green and Bryan Fuller explain why they have the 'stupidest job in the world'

$
0
0

Mr. Wednesday and Shadow Moon American Gods pilot

"Showrunners" is a new podcast from INSIDER - a series where we interview the people responsible for bringing TV shows to life.

The following is a transcript from our interview with Bryan Fuller and Michael Green, the showrunners of Starz's "American Gods."

Subscribe to "Showrunners" on iTunes here, and listen to the episode to hear the highlights from our interview, and keep reading below for the full conversation.

 

Fuller and Green on becoming co-showrunners  

INSIDER: So first I want to talk about "American Gods" and how you wound up being co-showrunners.

Fuller: I was working on what I thought was going to be the final season of "Hannibal," season two, and Neil Gaiman came up to Toronto to have a conversation about his book. We talked about all the wonderful things of immigration and strangers and strange lands trying to make their way in America. He said would you like to be the showrunner of "American Gods"? I said yes, if I can do it with [Michael] Green.

Neil Gaiman Michael Green and Bryan Fuller on set of American Gods

Green: Bryan and I have been friends for a long time, a really long time now we've discovered because we did the math, but since first season of "Heroes" where we had a great time and got along really well.

Fuller: Ten years ago.

Green: Ten years ago. We remain fans of each other, rooting for each other's work and always trying to find a way to work together again. I had just spent two years that were fun, but disappointing, trying to write network pilots for 20th Century Fox. I really enjoyed working with all the executives there, but I came to the sad realization that what's coming out of my pen doesn't work on network television, which was liberating, but also a little disappointing because I had spent two years trying to get things on network television.

Bryan called me and said, "Do you like American Gods?" The answer was an emphatic yes. I couldn't say yes fast enough, so we met the next day and just started talking about what we loved about the book, and they were all the same things. The chance to work together again, I would have done on anything, but to do it on one of my favorite books, even better.

INSIDER: When did you each first read "American Gods?"

Green: We both found it in paperback is what we discovered, so like a year after it came out, so probably 2002. When we sat down to have that conversation, I hadn't reread it, but we had the benefit of being able to say what do you remember about it from the first reading? Here it is, "x" number of "teen" years later, and it's a book I remember very vividly. We wrote down here are the things that stood out before even sitting down to reread it carefully for an adaptation.

Fuller: We talked about Laura Moon–

Green: The Jinn.

Fuller: There were so many wonderful vignettes and departures from the Shadow and Wednesday's story that gave us a taste of the gods that was being obfuscated for Shadow Moon. It was a very important aspect of the adaptation.

Shadow Moon coin American Gods

Green: I remember talking about something in that first conversation that we've never stopped talking about, which is as great a character as Shadow Moon is in the book, he is a very internal, non-reactive character to the insanity all around him. One of the things that we would have to do is find ways to externalize it and visualize it. It's something that we continue to do anytime we approach any page that says "Shadow."

INSIDER: What were some of the challenges of adapting as you went? When you went back and did that close reading, were there some roadblocks that you ran into?

Fuller: The [literal] road was one of the biggest challenges for the adaptation because in order to run an efficient television production, we need standing sets that we go back to, and the crew understands and knows how to shoot effectively. "American Gods" is a road show, and a sprawling one at that. That was the biggest challenge of this production was not having a home to lay down our equipment and our dolly tracks. It was always about running out, finding the best locations, or building them. That level of detail on an episodic budget and episodic schedule was really challenging.

Green: Once the hammers started swinging in construction, they just never stopped for months. This show, adaptation-wise, we never really struggled script-wise. Production was so difficult. Post-production was so difficult. Writing was sort of non-exotic [because] we have some things to write. It was fun. It was fun writing with Bryan. I think at one point you were like, "of course it's fun." You only have to write twenty-five pages, not fifty-two. We'd be splitting stuff, and it was always fun to get each other's pages and read them and enjoy them, and be able to say you love them and here's some thoughts and we cut this and that.

Fuller: Our scripts ended up being about forty-five to fifty pages.

Green: Yeah. We knew we were writing things that were going to take their time and have a lot of visual breathing room. Looking at those first episodes and deciding how to turn them into scripts, no one bled on that part. There was a little bit of course correction of things we thought we should do earlier on in the season that once we started shooting and looking at the episodes, realized that we may have gone too far with Shadow's arc too soon. Because we are working with Starz and with Fremantle, they were very forgiving in letting us make some course corrections mid-stream. Yeah, the adaptation process was kind of fun.

American Gods cast and crew on set Neil Gaiman Bryan Fuller Michael Green

INSIDER: How did you guys decide how to divvy up different parts of the script?

Fuller: Whoever had a particular affinity toward a scene would say, "I kind of have a grasp on this." But really, we passed our work back and forth and would either do passes or write notes in the margins. For Michael, I was usually suggesting cuts, [while] he was usually suggesting adds. We have different styles of writing that are very compatible.

INSIDER: You guys mentioned the things that you vividly remembered about the first read of the book. Was there one of those scenes in particular that was really exciting for you to bring to life?

Green: It was all kind of exciting to bring to life. Ian [McShane's] first day playing Mr. Wednesday was his first scene with Shadow. This six and a half page scene where they're seated and just parked. We're relying on dialogue and performances. I remembered reading it in the book the first time. I remembered when we wrote those scenes, hearing a thousand actors auditioning for Shadow, reading versions of that scene. Then watching those two characters meet for the first time was really fun and thrilling, and Neil was there. That was one of Neil's high-level visitation fly-in days.

Mr. Wednesday and Shadow Moon American Gods

Mousa, who plays the Jinn, was coming in for a wardrobe fitting that day because we were going to go to his stuff in a day or two. He came with his copy of the author's preferred text and was like, "Do you think Neil will sign it?" I think Neil will sign the Jinn's book. He happily did, happily will.

INSIDER: How involved was Neil in the overall production?

Fuller: Neil saw the dailies — every outline, every script — [he] gave us feedback. He was involved in the casting process. We sent him auditions. We would consult with him whenever we cast somebody or there was an offer situation. We had called him and said what do you think about Ian McShane for Wednesday? He said, "I like it. He's bastardy."

That was an interesting story in and of itself because we had originally offered Czernobog to Ian. Ian, who'd worked with Michael in the past, had a conversation with him and said this role is great, but he leaves. What about this Wednesday guy? That was all it took.

Green: With Neil, it wasn't so much that he had approval over casting, it was more that we would talk to him while we were still thinking about it. We wanted his input. If he had an instinct for or against a certain direction, that meant a lot to us.

On being showrunners and why it's a "stupid" job

INSIDER: I feel like people that don't obsessively watch a lot of television or read a lot of industry news might not know what the term "showrunner" means. How would you define your job for "American Gods" specifically as showrunner for someone who's not familiar with the term?

Fuller: The showrunner is essentially responsible for the vision of the production and is directing the directors and the actors and the department heads and kind of just the last stop for the overall aesthetic and value of the production, so it's the stupidest job in the world.

Czernobog American Gods

INSIDER: Why do you say that?

Fuller: It's impossible to do in the time permitted, under the circumstances permitted, because you're expected to be so many different places, juggling so many different things, and as co-showrunners, we found, particularly on this production, that it wasn't the two of us splitting a job as it was the two of us doing a four person job that actually requires that many people to wrangle to the ground. It is the dumbest job in the world because you have to fight for things–

Green: Everything.

Fuller: Everything. And you're not saving lives.

Green: There's a quote, I think it's Mike Schur, who's an amazing showrunner that's created some of my favorite shows that I look forward to watching, most recently "The Good Place," who defined the job of showrunning as "three full-time jobs plus problems."

You're constantly [...] writing breaking stories, keeping the scripts coming, often times writing or rewriting every single script, prepping, production and all the exigencies that go with that, and post [production]. They're often, if not always, going on simultaneously.

On a show like this, we had the advantage of certain parts of the three-ring circus were broken up. There was a period where we were mostly in post [production]. Anytime anyone's running a show, it's always best when you have more hands. People run shows alone end up, of necessity and a lot of gratitude, delegating to strong right-hands, either other EPs or co-EPs that they treat as partners. You have to because there's just too much to get done.

A show that has any degree of ambition, and I'll define that as anything other than what the industry of network television developed around, you need more than one person. In drama [shows with] cops, lawyers, doctors, general procedural, or standard soap, you can run a show like that "normally" because that's what [the industry] was built around: Standing sets, set number of actors, set number of days, and just a formula for how things are mechanically accomplished.

Fuller: In this particular show there was no shortage of tasks to be done. Usually in shows that we've worked on in the past, the post-production process is relatively easy. You've got production down. You've written the scripts and editing process is more or less complete, but because of how many visual effects are in ["American Gods"] and the specificity of sound design for head spaces, god spaces, the real world change every episode and have to be bespoke, we found ourselves working as hard, not harder, in post-production as we did in actual physical production.

Between Michael and I, we have color timing, which is generally on a network show you set a "look" and [...] you can hand it off and let people take the reins. But with this show, every episode had many different "looks." We have to be in the color timing working with the colorist getting very specific looks for the variety of different worlds that we're representing.

Buffalo American Gods

The sound design of the show is something that we cared very much about. Once again, you're dealing with different physical spaces, psychological spaces, and all of those have to have a very distinct vocabulary for how we represent them. At any given day in the post-production process of this show, and that means everyday of the week, seven days of the week, we are in color timing, sound mixing, and visual effects review.

It's an interesting time [to be in television] for a number of reasons. The amount of filmmaking you can put into a show that is appreciated by the audience has gone up. The job that Bryan has been describing and the way our seven days a week have been the last few months, it's closer to [being] a feature director finishing a movie.

Fuller: Because there's two of us, those four things are happening everyday. Ideally, we like to be in the room together because there will be something where it's like because we're so aggressive in our styling of the show, we have to gut check with each other. Is this too far? That's the ideal, but often times we have to, those four things are happening simultaneously, so we have to split up. We're constantly circling each other as we're going to the different aspects of the post-production process.

Green: Our text exchanges are a long list of shorthand of descriptions of the latest iteration of the visual effects shot and what's gone further and what needs work.

Fuller: If I'm in the sound mix, and Michael is with the visual effects team, and he sees something, and he's like you need to take a look at this because we need to choose a direction. They'll send me a file. We'll get on the phone and talk about it, and vice versa. I'll be in the sound mix and say you need to come by and hear this because we're doing some aggressive stuff. I want you to get your ears on it, so it's not too big or too broad because I'll just go for it if I'm left unchained. Michael will come and say I can't hear dialogue anymore.

Ian McShane as Mr. Wednesday American Gods

Green: One of the things I try to be conscious of, I've had the experience of working for partners and one of the frustrations that people can have when there's a showrunner team, is getting caught between the two-headed hydra — where one person told you one thing, and the other person comes and tells you the exact opposite, and the team they've hired to help them is suddenly is like, "We don't know what to do. Which is it?" [You get] uncomfortable and shut down and short out.

I've learned to see the distressed looks. Like you can see the cortisol level spikes if I give a note, and then I can just kind of say, "Did Bryan say something to the contrary?" Then he and I can then discuss it on the side because you just want to make sure that the artists you've hired to do things are clear and ready to action things.

Fuller: Giving one message.

Green: Yeah. Giving one message. Sometimes that means Bryan and I need to have the quick conversation of basically who's more passionate about their view is usually how we decide things.

Fuller: Whoever cares most, wins.

Green: That's just a matter of wanting to support each other's visions for things and who has a clear vision. It's nice to have that gut check. Sometimes you have an idea that only gets you through the day, and your partner can have the idea that closes out the episode.

How choosing the right blood for each scene is critical

Warning: NSFW violent imagery ahead.

INSIDER: Speaking of that "have we taken it too far?" gut-check, I wanted to talk about the violence on the show.

Fuller: The answer is yes. We took it too far. Happily took it too far.

INSIDER: In the very first opening scene, there's even an arm flying through the air with a sword still in its hand. What's the story behind that moment?

Sword arm vikings American Gods

Fuller: That was actually one of the earlier, not necessarily bones of contention, but something that we had been repeatedly asked to take out. We felt very strongly that that was totally allowing the audience to be amused by what we're presenting as opposed to saying "oh no, this is a very serious world and a very serious war." We wanted that absurdity and heightened sense of almost Pipen-esque humor with the violence.

Green: We weren't trying to depict history in any way. We wanted that clear that this was someone's depiction.

Fuller: History in the same way that Monty Python depicts history was our approach. It's amusing to me when people complain to me about the violence in the story of gods because that's all there ever has been in these stories. Take a peek at the Old Testament. There's violence, bloodshed, sacrifice — all are poetic expressions of our faith bargain with the gods that we choose to worship. We needed a bit of that represented in the show to really set the stage of what people fight for, and who hasn't heard of a religious war? I poo-poo the complaints of violence.

American Gods bloody viking scene

INSIDER: Has there ever been something that you did wind up toning down?

Green: There was one thing that we toned down, but not for any reason of feeling like we'd gone too far. David Slater, our director for the first three [episodes], there was one point when we were adding visual effects blood where he said, "Oh, I'm only halfway there. I want to do a whole other layer. They're building a whole other CG element of blood to do here."

We actually said (partly because at the time we were fighting budget, but also the image we had was so beautiful and interesting and weird) "you have enough blood, sir." 

It was, for me, more sometimes we have to say to people we like the work you've done so much, we have to protect it from the work you'd like to do.

INSIDER: You just mentioned CGI blood, but how does the physical blood on set work?

Fuller: We have lots of physical blood.

Green: In that [Viking] sequence specifically, I think there's three different types of blood. There's physical blood. There's guys with buckets on the side.

Fuller: There's projectile pump cannons that pump geysers of blood.

Green: We would actually have conversations in later episodes about which types of blood, like we have a sequence in the top of our sixth episode where we have immigrants crossing the Rio Grande and coming to America and bringing Jesus with them and some violence ensues.

Our first pass in the visual effects department where they were adding the CGI blood to it used the "Viking blood." It was a much more serious scene. We had to scale it back and say: "No, no, no. That's the wrong element. We don't want any giggles. This is actually harrowing." Whereas we'd specifically designed the blood in the Viking sequence to be bright, to give a remove from the violence so that you could watch it and have a "I can't believe they're doing this" reaction.

Whereas the blood in the immigrant story was going to be grounded, upsetting. That takes a different palette. It has to move differently. It's just literally a different build.

Technical Boy limo American Gods

INSIDER: Another element of the show that I wanted to talk about was updated technology aspect. You guys had the Technical Boy attack Shadow using a virtual reality mask, instead of actually making him get into a limo.

Fuller: That's a good question because it's a good story. In the production design of the show, we wanted something quasi-futuristic for the Technical Boy's limousine. When the network saw the dailies, they were like "we want it to look like a regular limousine." Our response was "it's Technical Boy. It has to be a special limousine."

They said "well this feels more like a virtual reality environment. If you're going to do that, you should do a virtual reality environment."

Green: They said that to try to convince us to re-shoot it in an actual limo.

Fuller: Yeah, but we said: "That's a great idea. We should make this all virtual reality. We have the capacity to do that. This is how we would do that." They were like "that wasn't why we brought that up. We want you to do the standard limo."

It took some convincing, but actually, they gave us a great idea to double down on the Technical Boy's abilities and the vocabulary that he uses to interact with those that he worships and those he commands or those he abducts.

Green: Ultimately, they really liked the idea. There was a moment there where they felt like we were just being brats, and maybe there was a moment there where we were just being brats.

Fuller: I don't think so. I think we both were like "that's great."

Green: It actually informed a lot of the decisions that came after, because I remember that we were building with the visual effects department what the face hunter would look like (the thing that jumped on Shadow's face and transported him into [the limo]). They were like "well since it's VR, let's put these little eyes on him." It just got more delightful.

Fuller: The idea of that entire world being 3D printed out, including the Technical Boy, it just informed our imagination for the rest of it.

Shadow Moon in Technical Boy's limo American Gods

Why Fuller and Green are attracted to mythology

INSIDER: I feel like you both have been drawn to mythology, sci-fi, superheroes in your careers. What do you think it is that's attracting you to telling those stories specifically?

Fuller: They're fantastic stories. For me, the first television that kind of blew my mind in its act of ignoring of the parameters of reality was "The Twilight Zone." I grew up in a household where the most revered actors were Charles Bronson and Clint Eastwood — people who do not emote. Anything that left reality had great disdain cast upon it.

For me, I couldn't stand watching movies or television with my family because [they had] no interest in fantasy or things that weren't real. I escaped to all those things and found that there was so much more opportunity for expression when you knock down the boundaries of reality.

These mythologies are all wonderful fables that are telling tales of the human condition in really creative ways that I think we just respond to the poetry of a fantasy and being able to extrapolate from reality a sense that there is greater purpose in these characters' lives that goes beyond what they do when they get up in the morning and go to work.

Green: The things that captured my imagination early, I just remember "Super Friends." [All of] the Saturday morning cartoons were ones I loved.

Fuller: Aquaman.

Green: The idea of him and Batman, Superman, all hanging out together deciding how to beat lava monsters, what's better than that? The first network drama I remember really being like "I need more of this" was "Misfits of Science." It was like a team, and they're all odd, and they have stupid powers that they don't know what to do with, and when they come together. Then [it] was canceled. I was like, "How could no one want more of this? I want to watch this all day."

Fuller: Wasn't Courtney Cox on "Misfits of Science"?

Green: I think she was, and the guy who played Predator. Kevin something. The like, seven-foot-tall guy.

Fuller: Oh, yeah. His whole thing was he was a scientist who was seven feet tall and black, so everyone expected him to play basketball. He couldn't because he just wasn't good at it, so he invented a shrinking think so he would go *zoop* and turn him into [the size of] your little Evian bottle, then he could sneak into things. Then there was the cool guy with the sunglasses and the motorcycle jacket. Johnny B. Goode or something like that. He could pull static electricity from the air and shoot like one lightning bolt.

Green: Now that I think of it, it's because they could afford one lightning element. One lightning effect per show. It's like oh, "I'm tapped out. I'm tapped out. I can't do it again. They sprayed water on me."

Fuller: You get one shot.

Green: It was great. I have friends who can write and love to write standard procedurals, and are really excited by those puzzles. I admire it because every time I've tried to watch, or even early on in my career, even just thinking about trying to break one of those stories, I come up cold because my brain just doesn't accept that as a puzzle worth solving.

Fuller: It's not fun enough.

Green: For me anyway. The people I know that can constantly be energized by that, it's a fabulous career. It's just not where my brain goes. Part of it is also just you write long enough, you start to identify the things you can do versus what you want to do. A lot of people come out and say I want to be a comedy writer. They realize I don't write comedy the way comedy writing gets done. I'm not as funny as you need to be to be on the Chuck Lorre show.

Shadow Moon American Gods

I had certainly had that experience. I grew up watching sitcoms and loving those and thinking that's what I wanted to do. Then I spent three days helping on a sitcom pilot and went oh my god, if I took a job on this show, if it went to series, it's not writing as my brain recognized writing. It would be joke pitching with brilliant people and eating three meals a day out of styrofoam, but never actually having time to go and work it out on your own, and that's the realization. I know I'm a drama writer. Ideally, a genre drama writer.

Even the procedurals I've been able to break had to have some remove of either magic or period so I could leave the current moment.

Fuller and Green on their writing process and whether fast equals "good"

INSIDER: You talked about how when you write, you write separately then send each other notes, but what is your specific writing process? Are you guys laptop guys?

Fuller: I like to be alone and carve out hours where I could be undisturbed thinking about the story and what people are going to be saying within it. It's a process of self-hypnosis where you have to consider who this person is that's walking into this room [and] what they want and what's the first thing that's going to come out of their mouth. It requires a certain sense of stillness and solitude. That's rare when you're running a show just to carve out some time.

Sometimes in the showrunning process, we will end our daily production meetings at eight [o'clock at night], and then write until two or three in the morning, then start our production days or story breaking days again. As I said, it's the stupidest job in the world, and you have homework everyday. 

Green: Writing alone, writing as a job in and of itself, should be the job.

Fuller: It's one good solid job.

Green: How many times have I turned to you and said "work is getting in the way of work today?" As a dispositional writer, producing is always this thing that's intruding on the script as the first principle. People will be like "where's the script? Where's the script?" Well, you made me have a four hour meeting with you today, so there's no script. Sometimes you have to chase people away or leave work unfinished.

With as many things as you have to do in a day showrunning, getting 80% of what you were supposed to get done done, is like a great day. There's always a monstrous list. 70%? I'll take that win.

Fuller: No day is possible. There is never a day that is possible.

Laura Moon American Gods

Green: There are all these artists you've hired that are waiting for some time with you to go over the work that they've prepared for it. You have to have an internal mechanism to weight necessity and say "I'm sorry." How many times have I said something like "art department, you're the priority tomorrow [or] today, you're the priority."

What I'm secretly thinking is I want to get this over quickly so I can go write, because that's what always feels like the thing that needs to get done. I'd always romanticized having writer habits like "I have to have my mug in its spot and it sits on a special doily my grandmother gave me. My lamp is on and it's just on the right setting."

Fuller: [Instead it's] "just leave me alone somewhere, anywhere."

Green: All I really need now in terms of process is the sanctity of time. I can write upside down in the bathtub if there's two hours (I don't actually write in the bathtub). I remember watching "Trumbo" thinking about how they keep trying to romanticize his writing process. I'm like "F--- you. You don't need those things you think you need. You don't a special writing program. You don't need the special pens."

Fuller: You just need alone time.

Green: You need alone time.

INSIDER: Was there a point where you did feel like you needed those things?

Green: Before I started actually writing. People get caught up in the ritual of it. I hear people starting out all the time talking about how they're still doing the research for the project they want to do. It's like "You've done enough. I assure you you've thought about it enough if you can list the six books you intend to read still. Doesn't mean you shouldn't be reading while you're writing, but just do the writing. Stop doing the things to prep you for the writing."

One of my favorite ways to write is at the kitchen table with a good amount of chaos around me. I like being around it, so it's there, but the people who love you that are making that noise think you're still a person. You're like "no, no, no, I'm not here. I'm furniture right now. I can't actually answer you." Someone asks me a question and there's that eight-second time delay where the sound has to penetrate, depending how far I am in myself, then I have to re-engage, but also make the mental note of what passage I'm on and where I left off that thought.

My family, God bless them, has learned to understand that "daddy's special," meaning there's something wrong with him. "Daddy's a very slow robot and sometimes needs recharging." I actually like that little bit of interruption, but it also depends on what stage of writing.

Fuller: I just have a poster of "The Shining" in my office. Every time my partner comes to talk to me, I just point at it. 

Green: My wife has been with me long enough, I can say to her in the shorthand of like "I'm not actually here" and she understands that. I've had that conversation with a number of writers. Bryan and I talk about that all the time. The people who love you and want you to be a person when you're not.

Fuller: It's the stupidest job in the world.

Green: It's the stupidest job in the world. There's a huge difference between what kind of person you are actually and the stuff that comes out of your pen. You have to kind of access the person that you're not often. There's a remove there. That eight-second delay is you remembering how to be you again for a second.

Mr. Wednesday and Czernobog American Gods

INSIDER: When do you remember first recognizing that writer inside?

Fuller: I think it's always there because the blessing and the curse of being a writer is you can work anywhere. I went to a musical last night, on Broadway, and about halfway through it, I started working. I just …

Green: Tuned out.

Fuller: Yeah, Iooked at the ceiling and thought "Okay, we need this." That's a blessing and a curse. You can be at a dinner and start working. You can be at a party and start working. You can be taking a stroll and start working because all you need is a brain to work out some story and do the preparation work for when you sit down and start committing things to paper. It's hard to shut off the job in that aspect.

Green: I remember early on, you write something and you suddenly tap into a voice you didn't know was there. You're like "What happens if I push that?" It's like "Oh, there's a gear." It's something I say to a young writer starting out: You might not be the writer you think you are, because when you start, you write the things you've always liked. Just because you like something that doesn't mean that's what comes out of your singing voice. You find out what kind of singer you are.

I remember I once saw Harry Connick Jr. on Jay Leno, ten thousand years ago, telling a story. Maybe I even remember it wrong, but I'll attribute it to him. [He was] saying that when he grew up, he wanted to be a rock n' roll star. He couldn't wait to be a rock n' roll star. He started singing and out comes this crooner voice and he was like "Well, I guess I'll do that."

There's a lesson to that. Find out what kind of voice you have, and go do that. Get really good at that. Some writers can train themselves to become a different type. I've certainly done different genres and wanted to get better at doing something. Become the writer who can write the thing that you're interested in.

Other writers are not versatile. That doesn't make you better or worse. If you double down on the thing that you're great at and you love, you're the luckiest person. You're a much luckier writer than someone who keeps wanting to reinvent their voice. It's not better or worse.

In television, there's a lot of fetishizing of who's fast.

Fuller: Fast does not mean good.

Green: Fast does not mean good. Brilliant does not mean fast or slow. I know wonderful, amazing, brilliant writers whose work I admire who are good for like, one script a year or every two years. Then I know mediocre writers that take the same amount of time. Then I know brilliant writers that can write very, very quickly. There's no correlation between speed. That's just disposition. That's just weird Venn diagram s---.

Just like showrunning is the weird Venn diagram s---of managerial skills and writing skills, and where they overlap, you can now have this stupid job, which you shouldn't take.

Why co-showrunning is an easier task

Bilquis American Gods

INSIDER: What I'm hearing is that you two are never going to run a show on your own ever again?

Green: I'm sure we will, but I will absolutely miss having someone to do this interview with or break a story. The writing process of "American Gods" has been different for me than anything else I've worked on because before I go into a scene, if I have a problem or I'm not sure what it's about, I have someone to go to. It costs Bryan creatively nothing to fix my problems.

He doesn't know this, but he's saved me weeks of [time]. When we're in a scene, and I'm off in my office and I'm supposed to get it, I know what I'm stuck on. I can go to him and go so "blah, blah, blah, blah." He'll forget that we've even had the conversation. He'll have cracked the problem that I had. Without that, that's like three days of just "Goddamn it. I suck."

Fuller: You don't suck.

Green: Not with you around. It's definitely more fun doing it this way. It's good to have someone who's been there with you. So many ridiculous things happen. Someone who's had the experience with us you can just be like, "Remember that time it was really stupid? Yeah, I remember that time it was really stupid."

Fuller: There were lots of those times.

INSIDER: Is there anything you get to delegate to the other person that you wouldn't want to do yourself as a showrunner?

Fuller: I love that Michael engages with the network and studio. I'm happy to go hide on the mix stage and toil away in there, if [he] will just go take that call.

Green: I will sometimes use that as an excuse to go home and put the kids to bed and come back to the mix stage after. When you have someone that you trust with literally any part of the show or are thrilled for them to do anything, it's more what do you that day have more of a disposition to do. It's the same thing looking at a script and looking at scenes. "Oh, you've got that in your teeth? Great because I don't." If it was just me alone, I would've had to find a way to get that in my teeth.

Zoraya star gazing American Gods

Fuller: In the showrunner mentality [you have to] engage a certain level of hyper-criticism and direct people where they need to go, whether it's visual effects or sound design or color timing or even script writing. You have to entertain the hyper-critical self just to make the product better or as good as it can be.

[One day] I was over stimulated because my brain was constantly analyzing what I was seeing. The next day, I was absolutely exhausted because I had been engaged at such a hyper-aware and analytical place. That takes a lot of mental energy.

There will be times when we've been in visual effects sessions for four hours and another shot comes up. You're like "I can't find the words to articulate why or how to make this better." The other person who might not be as burned out can jump in. Then you're like, "Oh, that was the thought that I couldn't access and now I have my other thoughts because you just held my hand through it."

Green: I've been in those VFX effects sessions and will drink my water much faster to generate a pee break just to get like five minutes to be alone with my brain for a minute. In this show in particular, there's a density to it that neither of us have ever experienced before. Most shows, even the very elaborate shows we've done in the past, would have a few sequences per episode or two episodes that require that level of detail, where all hands on deck have to figure out how to accomplish that one moment, that one special moment.

With "American Gods" every scene is [like] that. Every episode has dozens of moments like that. There's a density of insanity in it.

Fuller: In those moments, I've now got to the point where it's like "Well, we did it to ourselves."

Green: We have no one blame but ourselves if anything. The people [at Starz] come with a wealth of production experience. I remember early on when we gave them just outlines, the response was, "We love it. If you can pull off half of it, we'll be thrilled." We pulled off about 60, 70% of it.

Fuller: I'd say 80%.

Green: Some things we did bite off more than we could chew. Or we chewed wrong.

Fuller: I choked.

Green: We certainly did. They did give us the room to make our own mistakes a lot of times, or believed us when we said "we've got this covered," and we thought we did. Most the time we did. "American Gods" has been particularly difficult that way. The idea of two showrunners being able to do it, I believe truly has yielded the better product.

I can imagine what the show would've looked like if it was all yours, and I would've loved it. I can imagine what the show would've looked like if it was all mine, and I hope I would love it. Neither is as interesting to me as what we've made up.

Fuller: The show needed both of us.

Green: I can be surprised by it. I am surprised by it constantly.

Czernobog and cow American Gods

INSIDER: What do you each think would be different if you weren't there?

Fuller: I think the center of the Venn diagram where Michael and my creativity meets is a fairly thick section. I don't think it would be as evenly written. We've balanced each other out in that way. There are things that I simply wouldn't have thought of that Michael thought of.

Green: That certainly would've been more s--- jokes if I was writing it without you. I think I can be much coarser. Bryan's a much more refined creature.

Fuller: I was raised Catholic, so s--- jokes are part and parcel of my vocabulary.

Green: We've always liked each other's material, and there is a different voice that grew out of us knowing that we were writing for each other.

Fuller: It's a harmony. It really is a harmonization of two voices that are different. Two great tastes that taste great together.

Green: Kurt Vonnegut had a great passage about how when you're writing you should be writing for one person, but if you try to write for everyone, it's going to be a disaster. When he thought long and hard about it, he was always writing for his sister, even after she died, which I always found very sweet. Everything I've written, I realize the better things I'm subconsciously writing, whether it's director, I'm writing these to delight Bryan with the things I write.

We start writing because we're hoping to make each other laugh or keep each other's interest enough so that we will both work as far as we need to work to actualize these. This show, more so than anything else either of us have ever worked on, it isn't just you give it to production and they shoot it on the sound stage. Every scene requires so much creation and seeing through.

The Jinn American Gods

I'm actually nervous about season two because now we're a little wiser about everything we write, how hard it's going to be.

Fuller: I'm actually more clear on season two because I know the things that we touched that burnt and hurt us.

INSIDER: What's something that you touched that burnt you?

Fuller: Just in terms of tonally what worked for the show. It wasn't until we had seen the footage of episode four, the Laura pilot, that we realized what the show wanted to be, and what it was telling us we could do with a bit of magic and a lot of character. There were episodes where we pushed too far too early and cut them out and destroyed that footage because it was before the show spoke back to us.

Even after that process — when we were trying to keep things more grounded, but had already sort of committed to broader aspects of the storytelling — it then became about trying to shape those things in post, so they weren't as bright and loud and broad as we had originally intended them.

Things like the, when we talk about season two and talk about wanting to do an Audrey point-of-view episode, that's something that I get very excited about because Betty Gilpin is an inspiration. I'm very excited about writing for her a human perception of this world.

Audrey and Shadow American Gods

Even when we did that with Laura, she ultimately became a magical creature. There were things that I wanted more of in season one, but I didn't know I wanted them until after we finished them, and I think that will help guide us in a season two, if there is one, that will give us greater confidence in the material because we've done it before. We've swam across the channel. We know we can make it to the other side. Now I'm a little more aware of the savvier route to take.

Green: We know what not to eat for breakfast.

Fuller: Right — oatmeal.

Green: The hardest thing to get right in a show like this is the transition from reality to magical. How do you hold the audience's hand so they can believe it? What I always loved about [Neil Gaiman's writing] is it always makes you believe in magic because he holds your hand in the transition. You can see that in any of his books.

That's even harder to do visually because people are filtering. Their bulls--- meter is up, and they're looking at it like "What type of magic do you want us to believe in?" People are constantly [thinking] "So is it Harry Potter type of magic? Is it X-Men type of magic?" The answer is neither. It's its own tone. It doesn't really compare.

I remember an outline for a potential episode four and it [had] a magical ship that exploded out of Wednesday's pocket and erupted into a parking lot. At the time, it was "Yeah, it'll be amazing." That day, the writers we were working with got very excited about "What if we went Harry Potter with this? What if we went Middle Earth with this?"

You kind of have to wiggle the loose tooth to see, but when you've wiggled the tooth the wrong way — it hurts.

Fuller: Everything about that particular episode ultimately went away.

Green: We kept trying to bridge a gap that was really just a short step.

Fuller: We really had a nine-episode arc in the show and the season. We crammed in a tenth episode for episode four and ended up cutting out half of it and half of episode three and sewing them together. That was mostly because we went too big. We revealed things too early. Our original instinct was not to expand that story, but to tell it more efficiently. We needed that extra episode. We ended up completely removing all the things we were forcing into an arc.

Green: We had a similar experience at the very end. We were just having production overextending and budget overextending. We took our nine-episode arc and realized we can end it at episode eight in a really interesting way. It's funny for writers who write so hard and fret so much over putting things down and creating things from whole cloth so that you can work on them. It's incommensurate the sense of relief you get when you jettison large chucks.

I don't know. I remember when we talked about cutting that episode even when we talked about—

Fuller: The last episode?

Green: The last episode especially. The weight that came off. I remember breathing and going—

Fuller: I remember your exhale because that was when I was pacing on the lawn.

Green: I was in my living room. And you said "We can end on this moment."

Fuller: [And I said]: "To reiterate, we do this, this, this, and this, and then we don't need to do this." There was a long pause. I heard you breath, and you said, "I think that works."

Green: It's like canceling a wedding [...] It's funny how much relief that gives us. Same thing with we don't have to try to fix what's broken in that episode. We can just get rid of it. We're lucky enough our network and studio — studio especially stands to lose a lot by having significantly less product — wanted the better show.

Just going back to showrunning as more of an abstract concept, whenever you're trying to do something that isn't replicating things that have worked in the past on other shows, the only way it can be done is if all your benefactors, your network, your studio, your person, partners, your home base, have to agree on the same thing. If you have a show where the studio wants one thing and the network wants one thing and you want a third, you're f---ed before you even start.

Sometimes, especially in the early stages, the showrunner's job is [to have] the clear vision articulated calmly. Sometimes it's articulated rapidly. If you walk out of your series or season pitch meeting with the clear understanding that the people in that room want different things, then you're not done. You have to go back in the room. If you leave and go "Oh, they'll see it on the page, and they'll come to understand and they'll finally back me," you need to go back in there.

Mr. World American Gods

You're much better off if you can just get that wind at your back because then those same people can be your backstop. They can be your first line of defense. They can be the ones you trust to tell you, "Hey, you know that thing you told us you wanted to do that we agreed was awesome? You're missing it. Or you can do it better, or you've done it." If you've told them what you're after early on, they can actually be the good guys.

When you find the home for your show, you're picking who you're going to fight with, and ideally, how you're going to fight with them. You're going to argue, but you want it to be familial. You want it to be like "rawr rawr rawr rawr" while you're having dinner.

To a large degree, that's what we have with "American Gods" with Fremantle and Starz. They knew the show that we wanted to make and could let us know when we missed and when we hit. That's not to say we haven't fought, but we all fought to make the show great.

When we came in and said we're going to course correct, in a big way, or what seems like a big way, ultimately it's not that big a deal for them to agree. [That] meant they had to understand what the common goals were for the show as described a year and a half before. It was us being able to say we need to stick the landing better. We're admitting our own misstep or what did you say, chewing wrong.

INSIDER: The chunk you've jettisoned, is that on the back burner for a potential season two?

Green: No. It's dead. One of the early lessons of such a big production was sometimes the standard things are impossible to do when there's so much else you have to accomplish in getting things to the screen. We had a completely overburdened production design department. The stuff that we jettisoned, a lot of the reason that we jettisoned it was that it was not up to our cinematic standards of how this show should look and feel.

We just cut it out. It's nothing that any of us are proud of to the point that we would want anybody to ever see it, even on deleted footage. That's the hysterical thing. For the DVDs, [Starz] is like "Oh, can we show that for deleted footage?" I'm like "No, it's terrible."

The $2 million mistake Fuller and Green made

Green: It's interesting. You also learn when to push back to your own ambitions. One of the reasons that stuff wasn't up to our standards is we tried to shoot an episode of "American Gods," which takes a certain number of days, in a smaller number of days. We had a director, who's brilliant—

Fuller: Guillermo Navarro.

Green: He had done amazing work for Bryan on "Hannibal." I've been a fan of his for a very, very long time, and he—

Fuller: He had less days than anybody.

Green: We asked him to do [something that] really couldn't have been done. It was a standard "American Gods" episode, which is enormous, and we were trying to do it on a less enormous number of days. By accommodating our demand, we put him in an impossible situation. He's someone we owe an apology to, but at the same time, some of the stuff he did shoot is some of the best stuff in the series and was allocated elsewhere.

Mr. Nancy American Gods

Fuller: Salim and the Jinn and Mr. Nancy's coming to America were all beautifully shot by Guillermo Navarro. The stuff that didn't work was not by any stretch of the imagination his fault. In the effort to save $500,000, we ended up spending $2 million to fix it.

Green: It's learning how to make your own show. This all goes back to something we've been talking about, the idea of the straight-to-series show. It's something that everyone thinks is the greatest thing in the world, and it's not.

Fuller: It's stupid.

Green: It's really stupid.

INSIDER: There's that word again.

Fuller: Stupid.

Green: We did something incredibly stupid in our production that we regretted instantly. Everyone did. Our original production plan was that we were going to be shooting our first three episodes with one director, David Slade. We were going to shoot the first episode first, take two weeks off, then assemble it, look at it, and just breathe. Then we were going to shoot the second and third episode after.

Fuller: Giving him a chance to prep the third episode —

Green: And seeing if we needed to replace any crew, or seeing if any cast was an issue. Just giving ourselves a "pilot moment," as it were. We realized that our budget was astronomically over, and one of the things that was put on the table that we decided to pull out was that two-week break.

Cross-boarding two episodes is herculean. It's nearly impossible. Most television directors can barely pull off that. We started trying to pull off cross-boarding three. We knew it was a problem.

Fuller: One of those episodes had no prep time because it was completely taken away from our poor director. [He] was going into an episode that he wasn't given time to prepare to shoot. Every time we showed up on set, he was scrambling because we put him in that situation in order to try to save money. It ended up costing us so much more in re-shooting.

Fuller: Once again, we are responsible for that situation because we agreed that we would have to cut those things in order to save money, but once again, in order to save this amount of money, we're spending four times more later to fix it.

Green: That falls to the showrunners because it's the studio's obligation to suggest those things. It's on us to filter this is a good way of saving things, this is a bad way.

Fuller: We made a lot of bad way decisions to save money. It ended up costing us a lot more

Green: We make mistakes, even two people. Constantly.

Fuller: It does help sort of to turn to Michael and say "We f---ed up" as opposed to "I f---ed up." Everybody is trying to do the show as efficiently as possible. Everyone is aware that it's a big-budget show. No matter how big your budget is, it is never enough. You have to make cuts. You have to try to find solutions to issues that you couldn't ever anticipate.

Green: You're also learning the crew you have and what they're capable of. Every crew is different.

Fuller: [Like] how long it takes them to do something. When we got into the physical production of this show, which has very particular demands in terms of aesthetic qualities, they would say, "This is what we'd do on a standard seven-day shoot in order to get it done, but it will not be up to your standards."

We kept on flirting with those issues. I think we were well aware of what was coming, but we just had no choice but to try to save that money. There were many aspects of it.

Mad Sweeney Crocodile Bar American Gods pilot

The Crocodile Bar, the story that Michael referenced earlier, we completely rebuilt that set after we had built it and shot a couple of scenes in it. When we arrived on set, the paint was still wet. We had only seen it the day before because everything was under tarps. They couldn't show us because nothing was done.

The day before, it was like "Oh my god, what can you do in the next twenty-four hours to fix this?" When we arrived the next day, and it wasn't fixed enough, we were in the situation of knowing full well that none of this was going to make it to air because it looked terrible.

Green: By terrible, [he means] it didn't feel believable in the world that we were trying to create. It had a much more amusement park feel.

Fuller: It looked like a children's show.

INSIDER: I feel like that could be something like a Pee-wee Golf.

Green: We said it was Pee-wee Herman. It's funny — a picture of that set was one of our first leaked pictures, in Entertainment Weekly. We were looking for something that was much more bayou-chic. A real destination where we want to serve beer there.

Fuller: That was something that we both felt very strongly [about]. I remember when we sat down to talk about the show, I sketched out the Crocodile Bar set in terms of what we wanted to see. We worked on it together, then we worked with illustrators to bring it to life. Then that didn't happen. It was all about trying to get it back to the original illustration that Michael and I created.

Green: I think our final note when it was rebuilt was "These illustrations. We want you to build the illustration. Just build this picture."

Fuller: Which we'd been saying for months.

Green: It was a process.

INSIDER: Well, on that note, I think—

Fuller: We b----d enough.

INSIDER: We talked about how stupid being a showrunner is.

Green: You got us when we're not done with the season. In like three weeks after we've had a chance to take a bath ...

Fuller: I also realized, I was like "Why do I feel hungover when I didn't drink last night? Oh yeah, we were on visual effects calls at 2 a.m. and I had four hours of sleep." 

INSIDER: Well, I hope you guys get lots of rest in the weeks ahead, as well as actually getting to watch and experience the show.

Green: Thank you.

Fuller: Thank you. We hope everybody enjoys the show. We're definitely very proud of everyone's work on it. From cast to crew and our fantastic post team that is working every waking moment to try to land the plane on a finale that has more visual effects shots in it than "The Titanic."

INSIDER: Wow.

Green: Every single one of them could be working on an easier show. Everyone production, post-production, they've all been working that hard because they want to see this come to life. They've decided to trust us with what we're trying to do. Most of the job is gratitude. 

SEE ALSO: Danny McBride talks about what his 'reinvention' of 'Halloween' will be like

Join the conversation about this story »

NOW WATCH: 15 things you didn't know your iPhone headphones could do


'American Gods' showrunners tell the tale of how attempting to save $500,000 wound up costing $2 million instead

$
0
0

american gods

"Showrunners" is a new podcast from INSIDER, a series where we interview the people responsible for bringing TV shows to life. The following is a highlight from our interview with Bryan Fuller and Michael Green - the showrunners of Starz's "American Gods."

Subscribe to "Showrunners" on iTunes here!

Starz's new drama series "American Gods" (based on Neil Gaiman's novel of the same name) is a cerebral fantasy tale that follows protagonist Shadow Moon as he becomes embroiled in a world of gods. When INSIDER sat down with Bryan Fuller and Michael Green — the "American Gods" creators and co-showrunners — they explained how the sprawling world contained in the show nearly got out of their control.

"I remember early on when we gave [Starz] outlines," Green said. "The response was 'We love it — if you can pull off half of it, we'll be thrilled.' We pulled off about 60% or 70% of it. Some things we did bite off more than we could chew. Or we chewed wrong."

"I choked," Fuller said.

"We certainly did," Green added. "They did give us the room to make our own mistakes a lot of times, or believed us when we said 'we've got this covered' and we thought we did. Most the time we did."

Fuller and Green told INSIDER the story of a time when things nearly went very wrong. In the pilot episode, Shadow Moon and the enigmatic Mr. Wednesday meet at a strange watering hole. The bar itself is shaped like the gigantic mouth of a crocodile — a setting straight from Gaiman's novel.

Mad Sweeney Crocodile Bar American Gods pilot

But when it came time to construct the bar and shoot the scenes within it, Fuller and Green ran into timing issues that wound up costing an additional $2 million in the budget. Below is their account of what went wrong, excerpted from our interview on INSIDER's podcast, "Showrunners."

Green: We tried to shoot an episode of "American Gods," which takes a certain number of days, in a smaller number of days. We had a director, who's brilliant—

Fuller: Guillermo Navarro.

Green: He had done amazing work for Bryan on "Hannibal." I've been a fan of his for a very, very long time, and he—

Fuller: He had less days than anybody.

Green: We asked him to do [something that] really couldn't have been done. It was a standard "American Gods" episode, which is enormous, and we were trying to do it on a less enormous number of days. By accommodating our demand, we put him in an impossible situation. He's someone we owe an apology to, but at the same time, some of the stuff he did shoot is some of the best stuff in the series and was allocated elsewhere.

Fuller: Salim and the Jinn and Mr. Nancy's coming to America were all beautifully shot by Guillermo Navarro. The stuff that didn't work was not by any stretch of the imagination his fault. In the effort to save $500,000, we ended up spending $2 million to fix it.

Green: It's learning how to make your own show. This all goes back to something we've been talking about, the idea of the straight-to-series show. It's something that everyone thinks is the greatest thing in the world, and it's not.

Fuller: It's stupid.

Green: It's really stupid.

Fuller: Stupid.

Green: We did something incredibly stupid in our production that we regretted instantly. Everyone did. Our original production plan was that we were going to be shooting our first three episodes with one director, David Slade. We were going to shoot the first episode first, take two weeks off, then assemble it, look at it, and just breathe. Then we were going to shoot the second and third episode after.

Fuller: Giving him a chance to prep the third episode—

Green: And seeing if we needed to replace any crew, or seeing if any cast was an issue. Just giving ourselves a "pilot moment," as it were. We realized that our budget was astronomically over, and one of the things that was put on the table that we decided to pull out was that two-week break.

Cross-boarding two episodes is herculean. It's nearly impossible. Most television directors can barely pull off that. We started trying to pull off cross-boarding three. We knew it was a problem.

Fuller: One of those episodes had no prep time because it was completely taken away from our poor director. [He] was going into an episode that he wasn't given time to prepare to shoot. Every time we showed up on set, he was scrambling because we put him in that situation in order to try to save money. It ended up costing us so much more in re-shooting.

Fuller: Once again, we are responsible for that situation because we agreed that we would have to cut those things in order to save money, but once again, in order to save this amount of money, we're spending four times more later to fix it.

Green: That falls to the showrunners because it's the studio's obligation to suggest those things. It's on us to filter this is a good way of saving things, this is a bad way.

Fuller: We made a lot of bad way decisions to save money. It ended up costing us a lot more.

Mad Sweeney and Shadow Moon in Crocodile Bar American Gods

Green: We make mistakes, even two people. Constantly.

Fuller: It does help sort of to turn to Michael and say "We f---ed up" as opposed to "I f---ed up." Everybody is trying to do the show as efficiently as possible. Everyone is aware that it's a big-budget show. No matter how big your budget is, it is never enough. You have to make cuts. You have to try to find solutions to issues that you couldn't ever anticipate.

Green: You're also learning the crew you have and what they're capable of. Every crew is different.

Fuller: [Like] how long it takes them to do something. When we got into the physical production of this show, which has very particular demands in terms of aesthetic qualities, they would say, "This is what we'd do on a standard seven-day shoot in order to get it done, but it will not be up to your standards."

We kept on flirting with those issues. I think we were well aware of what was coming, but we just had no choice but to try to save that money. There were many aspects of it.

The Crocodile Bar, the story that Michael referenced earlier, we completely rebuilt that set after we had built it and shot a couple of scenes in it. When we arrived on set, the paint was still wet. We had only seen it the day before because everything was under tarps. They couldn't show us because nothing was done.

The day before, it was like "Oh my god, what can you do in the next twenty-four hours to fix this?" When we arrived the next day, and it wasn't fixed enough, we were in the situation of knowing full well that none of this was going to make it to air because it looked terrible.

Green: By terrible, [he means] it didn't feel believable in the world that we were trying to create. It had a much more amusement park feel.

Fuller: It looked like a children's show.

INSIDER: I feel like that could be something like a Pee-wee Golf.

Green: We said it was Pee-wee Herman. It's funny — a picture of that set was one of our first leaked pictures, in Entertainment Weekly.

We were looking for something that was much more "bayou-chic." A real destination where we want to serve beer there.

Fuller: That was something that we both felt very strongly [about]. I remember when we sat down to talk about the show, I sketched out the Crocodile Bar set in terms of what we wanted to see. We worked on it together, then we worked with illustrators to bring it to life. Then that didn't happen. It was all about trying to get it back to the original illustration that Michael and I created.

Green: I think our final note when it was rebuilt was "These illustrations. We want you to build the illustration. Just build this picture."

Fuller: Which we'd been saying for months.

Green: It was a process.

For more from Bryan Fuller and Michael Green, listen to the full episode of "Showrunners" below. Subscribe to "Showrunners" on iTunes here so you can hear new episodes (featuring the showrunners from "Silicon Valley,""The Handmaid's Tale,""Insecure" and more) first.

SEE ALSO: 35 movies coming out this summer that you need to see

Join the conversation about this story »

NOW WATCH: The Marine Corps is testing a machine gun-wielding robot controlled with just a tablet and a joystick

How Tim Armstrong, a hotshot Boston sales guy, wowed Google's founders, built its multi-billion-dollar ad business from scratch, then became AOL's CEO

$
0
0

tim armstrong

Tim Armstrong is the CEO of AOL, and he will be the CEO of the combined AOL-Yahoo company under Verizon once that merger is completed.

Before joining AOL, Armstrong was an executive at Google who helped build its advertising business from $700,000 a year to billions every quarter. He was also an expert advertising salesman and entrepreneur, and the first person to sell a $1 million digital-advertising deal, back when all the money was flowing to print and TV companies.

Armstrong visited Business Insider and spoke with Business Insider's US editor in chief, Alyson Shontell, for "Success! How I Did It."

In the interview, Armstrong discussed how he built a high-powered career. During the wide-ranging conversation, he talked about:

  • How he started a newspaper out of college, where actor Casey Affleck worked for him.
  • How he became a great digital-ad salesman and sold the first $1 million ad deal online.
  • What it’s like to be interviewed by Google founders Larry Page and Sergey Brin.
  • How he helped Google pivot from a licensing business to an advertising business, and launch products like AdSense, which would eventually generate billions in revenue.
  • How you know it's time to leave a safe, cushy job (Google) for one that's high-risk (AOL).
  • The advice his dad gave him the night before he started at AOL.
  • How he spent his first 100 days as CEO.
  • How he makes gnarly decisions and comes to peace with them.
  • How he inspires his teams when morale is low.
  • How talks with Verizon CEO Lowell McAdam heated up and led to AOL's $4.4 billion acquisition.
  • How you can be an effective leader who is also well liked and respected.
  • The advice Tim gives to his children, and to anyone who wants to build a high-power career.

Here's the full interview, which you can listen to below.

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

Or, if you'd rather read the Tim Armstrong interview, here's a transcript, which has been lightly edited for clarity and length.

A strawberry farm, volunteering to be fired, and employing Casey Affleck

Nancy Tim Armstrong AOL CEOAlyson Shontell: Tim Armstrong is the CEO of AOL, and he'll be the head of the combined AOL-Yahoo company when the merger closes. Before AOL, Tim built Google's ad products and is basically responsible for the brainchild of AdSense. And he built the ad team from scratch. We're really happy to have you, Tim.

Tim Armstrong: Alyson, good to see you. Thanks for having me on a rainy New York day.

Shontell: I want to go all the way back, to the beginning of your career. It sounds as if you were always entrepreneurial. I remember the story about your making a strawberry farm successful during college?

Armstrong: When I was growing up, I always had the entrepreneurial bug. There were multiple things I did when I was younger, in my middle-school and high-school ages. But one of them was with a friend from college. There was a strawberry farm that the bank owned. I don't know if the farmer had lost it to the bank, but there was a strawberry farm, and we went to the bank and they weren't using the farm, so we said, "Could we take over the farm for the summer and do a pick-your-own strawberries? It'd be a lot less work for us, and probably a lot more profitable."

And so we did a you-pick strawberry farm, from a farm we didn't own, and cut a deal with the bank to do it. We had hundreds of customers drive up and go pick their own strawberries, and it ended up being a very successful venture and a lot of fun.

Shontell: So then you graduate and you have a short stint in finance?

Armstrong: Right when I graduated from college, I actually taught a program called the Explorer Program at Wellesley College. That was for the summer. Then I went to an investment bank in Boston, and I was there for about three or four months, and I realized that banking was not something for me. So I went to my boss and said, "You know, I think you should let me go."

Shontell: You volunteered to be fired?

Armstrong: Yeah, I just said, "I don't think this is the career for me, and I should do something else." And they said, "No, why don't you stay? It seems like you could do a good job here over time." And I said, "I want to go do something else." So I left and ended up starting a newspaper in Boston, out of that experience. And that's really what got me — if you look back to the seminal moment for me — what got me sitting here today — it was really that decision.

Shontell: It's no wonder you're the head of essentially a media company now. So BIB, was the “Beginnings in Boston” newspaper that you started. And the way you got into that, I guess you had been cold-calling executives, just hoping they would talk to you? And you discovered that nobody would talk to you unless you were a reporter?

Armstrong: I was calling people in Boston. I was really trying to just figure out what I wanted to do, and learn about different careers. I again had thought that banking would be something I would be really interested in, but when I realized it wasn't, I thought, "I should go do research and find out, really, what I want to do." And so I would call different executives in Boston, CEOs of companies, and see if they would meet with me, and not many of them would. I called one of a very large financial institution in Boston, and the woman was very nice on the phone, the CEO’s assistant. She said, "You know, the only people who really cold-call here, or who get through to the CEO, are journalists."

Later that night, I was talking to my roommate and I said, "You know what we should do? We have all our friends in their 20s, everyone's finding jobs or figuring out what they want to do — why don't we start a publication to get advice from all of these people, and give it to them? Boston's filled with young people graduating."

So we decided to launch the magazine. It was targeted at exactly my demographic back then, and I didn't know anything about publishing newspapers or magazines, but we basically launched from scratch.

We sold everything we owned — cars, bikes, surfboards, the whole thing. We bought an Apple Quadra 650 computer. And we basically learned how to publish from scratch, and print from scratch, distribute from scratch.

In that journey, I learned probably the most I've ever learned, just about what a business is from start to finish. And it was a wonderful experience. It was really hard. We did an OK job at it, not great. And we ended up buying a second newspaper, which was a better idea. That was in Cambridge and Harvard Square. So that was the launch of my phone calls to newspaper ownership, in a very short time period.

Shontell: It sounds like you never had a problem cold-calling people, which is Sales 101. So it's not really surprising that you ended up having a career in that. But you were telling me a funny story before this podcast, about how actor Casey Affleck used to work with you?

Armstrong: So we bought the second newspaper, The Square Deal, and if you went to Harvard back in those days, you used it. It had coupons in the back; it told you what was happening around town, in Cambridge Square. And we hired people, kids from Harvard, to hand them out to other Harvard students.

I was at a dinner a couple of years ago, when Casey Affleck said to me, "Hey do you remember me? Do I look familiar?"

And I said, "Yeah, of course you're familiar — you strike me as very familiar."

He said, "You don't remember, but I used to work at The Square Deal and hand out the newspapers for you." Obviously he's done really well, and he's not handing out newspapers anymore, for sure. I think he's even won an Academy Award, so that was a fun story, and a good memory back to the old days.

Tim Armstrong AOL CEOShontell: So you soon became interested in the internet. You visited MIT and saw a presentation about it, and you switched gears. What happened there?

Armstrong: Another friend of mine, Peter Dunn, owned a store in Boston called Cool Beans, which was a Grateful Dead store. And he was very networked in the Cambridge and MIT communities. He said, "Hey, there are some people coming. They have this new thing called an "internet browser." We're going to meet down at MIT, and you can see it."

I went down, and literally within one minute of them turning it on and showing what the browser did, I looked at my friend and said, "I'm selling my newspaper as soon as I got back to the office. I'm going to go do this thing. This is 100 times easier, faster, and more scalable than what we're doing in the newspaper business."

And so I literally went back, called my parents on the way home from that meeting, and I said, "I'm selling the newspaper. I'm going to try to move to an internet environment."

We started actually trying to put our newspapers online. This is 1994, I think. And then, long story short, I moved pretty quickly. We sold our share in the newspaper back to another publisher in Boston, and then I went off to start doing internet things, which was a lot of fun.

Shontell: So you rise as this great salesperson, with the first internet magazine, I believe. And the company you end up later working for gets acquired by Disney?

Armstrong: Yes. After the newspaper, the only thing I found right away — because not many people were doing internet things — was IDG, the big tech publisher, was launching the first internet magazine, which was a magazine about the coming internet.

I went to work there. In those travels — it's an incredibly long story — but I went to an event with the founders of NASCAR, the France family. And the Frances got up and gave a presentation about where they thought this internet thing was going. I talked to the NASCAR family, and they basically said, "Look, there's this company. Paul Allen's starting a company on the West Coast called 'Star Wave.'"

Shontell: Microsoft cofounder Paul Allen, right?

Armstrong: Yes. And they were the first real content company on the internet. So when I got back to Boston from that trip, I had a voicemail on my phone from Star Wave. And they said, "Hey, we heard you're in Boston. We hear you're doing internet things, and you're trying to do advertising and content on the internet. We have a company in Seattle. Would you like to come out and visit us?" So I flew out to Seattle. I did a day's worth of interviews and got offered the job at the end of the day. I went back, moved from Boston with a bag of clothes — I didn't own anything else at the time —and moved to Seattle. And I had an awesome experience out of Star Wave.

We launched ESPN.com, NFL.com, ABCnews.com, and worked with a whole crew of people from all over the US who had moved there to really get into internet content. And that was an amazing experience. Then Disney bought us. I ended up moving back to New York, to work for Disney, helping them get their internet things off the ground, including ESPN and ABC.

Shontell: From what I understand, you were pretty young when you went out to Seattle. You were in your mid-20s maybe, and you were working across platforms, which was a really early concept of TV-plus-digital, plus all these things. And you're also working with the legacy-TV sales guys, who are the old guys who've worked their way up to the top. How did they let you in? Why were you such a good salesman?

Armstrong: Well, one is, when I was at Star Wave in Seattle originally, I had done, at the time, the largest deal on the internet ever done. So I did a $1 million deal back in probably 1996 or 1997. And this was when most of the deals were $10,000 deals. I got on Paul Allen's radar screen. I ended up flying down to a Portland Trailblazers game with Paul Allen and some friends from Star Wave. And then when Disney bought the company and I moved to New York, people knew about this deal.

The deal I had done was with Rick Scott, who's now the governor of Florida. He was the CEO of Columbia/HCA, and he did the first really, truly large ad deal at Star Wave and for ESPN. When I got to New York, I sort of had a reputation of somebody who was energetic, creative, and doing deals.

I showed up in New York, and I was really one of only a couple internet people there. It was a little bit more like we were outside-the-box people who didn't fit into the normal way that everything was happening in New York and media. So they kind of took us everywhere. It was sort of like a dog-and-pony show, and we were the dog.

I learned a lot from working at ESPN, which was an amazing company with amazing people. I got to spend a lot of time with people who were super knowledgeable about advertising and super knowledgeable about content. I became, like, their internet buddy.

What it's like to be interviewed by Google cofounders Larry Page and Sergey Brin

Larry Page Sergey Brin

Shontell: That served you well, because then Google came calling. Google at the time was this tiny startup. It was barely generating any revenue. Omid Kordestani, who's now the executive chairman of Twitter, calls you up.

Armstrong: Right.

Shontell: And he's at Google at the time. What does he say and what's that meeting like?

Armstrong: Omid had called, through another woman I worked with at Star Wave. And he said, "Can you meet me in New York City?" I met him at the Carlisle Hotel in New York on a rainy Friday. And we hit it off right away. If you know Omid, he's one of the best humans on the planet, and one of the most engaging.

At that time, Google was into licensing software. That was the main business model at that point. And they were thinking about getting more into advertising, so Omid asked me a whole bunch of questions about what I thought, and I ended up going out to meet and have breakfast with Sergey Brin in Palo Alto.

I had had another job offer at the time from a large gaming company, an unbelievable job. Which would have, at my age, been super enticing. But after meeting Omid and Larry Page and Sergey Brin, and some other people from Google, you could tell there was going to be magic there. And it wasn't exactly clear what it was going to be, but I decided to join Google, and that was a great decision. A lot of fun, and just an unbelievable experience. And again, super-talented people. It was a highlight for me.

Shontell: Do you remember what that first meeting with Larry and Sergey was like? What is it like meeting the Google founders back then, as they're growing it?

Armstrong: I don't think I've ever told this story. But when I had my first discussion with them, they basically said at the beginning of the meeting, after a few questions, "We're not really sure what to ask you. Ask yourself the questions. Like, what questions would you ask yourself, if you were us?"

So I said, "Look, I'm very direct person, very honest. Here's what I would ask, the following questions." And I thought that was interesting. I realized later, after working with them, that that was not an anomaly, that was one of their tactics.

But they were driven. I think to this day, Larry and Sergey are obviously very smart, and very creative. They're very competitive also, in a good way. I'd say they care a lot. At their size now and what they're doing, I'm sure there's a lot of feedback on them, how people feel about them. But they're, at their heart, very good people. Both of them.

Creating AdSense for Google, from scratch

Tim Armstrong AOL CEOShontell: When you get to Google, it's generating about $700,000 a year in ad revenue. And now it's generating about $25 billion a quarter. So you got in and helped them figure out what ad products were going to work. And one was AdSense, right? How did you help develop that? It's now a multibillion-dollar-a-quarter business for them.

Armstrong: First of all, Salar Kamangar used to be the head of YouTube and was really the brainchild behind AdWords, and a few other people we worked with. Really, it all kind of came together in a very mad-scientist way, of how AdWords got off the ground, and the ad business. But there were a whole bunch of us working on it, and it had a good outcome on the AdWords side.

And then one day a guy named John Firm, who worked in our ad-sales group, came and said, "Hey, we have a whole bunch of customers who don't have budgets spent on search. They basically load all their budgets in. There's lot of room for other places they could run it, but we can't spend all their money."

And by the way, one of our publishers, About.com, said, "Is there any way for you guys to help us figure out how to make more money?" And so we literally took a PowerPoint page, mocked up a content page, and put AdWord boxes on it that were laid into the content. We took it into the Google meeting, to the executive-team meeting, and said, "Hey, why don't we syndicate all of our ads onto content properties?"

Which today doesn't sound like brain surgery, but it was a moment in the company's history when there were a whole bunch of people who didn't want to do it. They were like, "We're a search company. Let's stay focused on search. This doesn't make any sense. Display ads don't really work."

There was a big argument, back and forth, but at the end of the day we got a group of engineers. We hired Kurt Abrahamson, who was the president of Jupiter, to come and run it. We spend about a year in my group developing it and growing it, and then we turned it over to Susan Wojcicki, who's running YouTube now. She took it over and ran it.

Then Applied Semantics was a company that was bought by the product and engineering team, so that was another product that had a lot of founders to it, I guess, and a lot of success because a lot of energy got put into it.

One untold story about Google I should have gone back to is, one of the reasons Google is successful in ads is because the search-licensing business went away. Yahoo bought Inktomi, and so one of Google's major revenue lines kind of went away, because search licensing went to a free model from a paid model. That allowed a lot of the engineering talent at Google to go focus on ads. I think without that type of transition, we never would have had the horsepower in terms of the intellectual capital on engineering a product.

Sometimes in business you get lucky, and what looked like a bad situation with the licensing business turned out to be an unbelievably big opportunity. And that's really what led to AdWords. And with the DoubleClick acquisition, there was lots of stuff like that that came out of it. What looked like a tough situation originally turned out to be a boon for the entire company.

Shontell: So this works. You become this god within Google, managing this massive department.

Armstrong: I was not a god within Google. There were a lot of gods within Google. So there was a massively talented team there. Unbelievable talent, yeah.

A call from Jeff Bewkes

Jeff BewkesShontell: Well, that may be true, but still. The head of Time Warner gives you a call, Jeff Bewkes. He notices what you've built and what you've done. This is 2009. What made you intrigued to take a meeting with him, and to talk about the idea of joining AOL?

Armstrong: You know, a few things I would go back to. The reason I ended up going to Google was that it looked like there was a huge opportunity in the information business, and putting information connected with where commerce happens, was a big opportunity. Earlier in the 2000s I had cofounded and funded a company with my college roommate, Luke Beatty, called Associated Content, which was more of a content company that eventually got sold to Yahoo.

But my time at Google, I'd say after I was there for almost 10 years, I have a personal career philosophy, which is, I think you should continue to do something as long as you're learning quantum number of things in general. And I think the quantum learning is probably the most important attribute to people's careers, to continue to grow.

At Google I just wasn't learning anymore, but my interest level over time had started to get really focused in on the content space, and where media was going, and working on Associated Content a little bit. I was on the board for a while. It got me interested in where content was going.

And then when Jeff Bewkes called, it seemed like a unique opportunity. I could go into my investing philosophy, but I'm also somebody who likes to invest. I think a lot of opportunities are opportunities because everyone can't see them. And if you can read something in the newspaper, it's probably not an opportunity anymore. And AOL was the exact opposite. It was something that everyone had given up on, but they had a lot of resources, a lot of users, and they had a lot of talent. So it seemed like an opportunity.

If I was going to do something disruptive, that'll also be a big runway to do something disruptive because people frankly were counting it out. I think that you have a choice to go to a startup to start something, or you have a choice to do something at bigger scale. I wanted to do something at bigger scale.

And it was just an interesting asset. It was probably going to be a windy path, because it was inside of Time Warner. If we wanted to spin it out, we'd have to go through the whole process of spinning it out, and then we'd have to make all these changes to the company, and it was a challenging experience, and that's what I wanted at the time.

How to weigh a big, risky career move and leave your safe, cushy job

tim ariannaShontell: So at the time when you're having this conversation, you're thinking about taking the job. But there was a graveyard of AOL CEOs. There were five, I think, within that decade. How did you measure the risk, and how did you decide to jump? How did you make sure you weren't the sixth CEO in that graveyard?

Armstrong: Yeah, you know, it's interesting. I didn't want to take the job if I didn't think I could do it. And I definitely had a lot of reflection time on that, because a lot of these companies that have these situations have a lot of CEOs, and they're all smart people. They are good at their careers. I was carefully thinking about it, but on the other hand I thought: What if this totally fails and it's the world's biggest failure? Really — who cares? I'll probably learn more doing it.

A lot of people said to me, "Why would you ever leave Google? Why would you leave Google and your reputation at Google to go do something like AOL?" But I thought about it the opposite way, which was, if you wanted to have the most intense learning experience, and apply a lot of the skills I had learned in the 10 or 15 years prior, AOL seemed like a great opportunity to do that. My personality is more entrepreneurial, and it just seemed like an opportunity that, although it had tons of risk, it also had tons of opportunity. And you've got to be willing.

My dad said to me the night before I started at AOL, "This is a burn-the-bridge moment. If you fail at this, you can't walk backward. So you should figure out how to always look forward."

My dad said to me the night before I started at AOL, 'This is a burn-the-bridge moment. If you fail at this, you can't walk backward. So you should figure out how to always look forward.'

And I think that was a great piece of advice, because that's essentially what we had to do, over and over and over again.

Shontell: How do you make a burn-the-bridge decision? How do you know you're making the right choice? Especially as the leader of a huge company?

Armstrong: One thing is, when I took the AOL job, I traveled around and went on a little mini leadership roadshow before I actually started.

I got to announce that I was going to start, and then I had some time before I started and I spent a lot of time with a lot of different leaders, who I respected, who are big leaders across corporate America and some entrepreneurs.

Essentially, I think in a CEO job, you have to be OK with risk and you have to be OK with failure. I have a saying which is, "You have to fail toward a goal."

As long as you're failing, if you know what the goal is, it's OK to fail in that direction. And that's the advice I got from people. On that roadshow, I had a lot of people challenge me. The best mentors I had are also the most challenging people. And on that roadshow, they asked me a lot of the questions I ended up facing further on. I wasn't prepared for all of them but I kind of knew what the role was, and what the job was going to be. And fortunately, or unfortunately, for AOL, a lot of that I learned on the job overall. So it was challenging.

Shontell: And when you come into a new job like that, do you need to bring your own team with you? Because that's something you did. You cleared out the executives, brought in some people from Google. Was that essential?

Armstrong: When I first started I brought a couple people like Maureen Sullivan, who's the president who runs Rent the Runway now. She was the first person who came over from Google with me. And what I told the AOL team was, "Look, this is the team. Everyone's going to have their shot. We have to change what we're doing. Some of the changes, if you want to roll with them and stick with them, great. If this is not what you want to do, raise your hand, because we're going to go in a different direction." And I think over time I did end up bringing a bunch of people in from Google, and other people as well.

I would say looking back on it, overall, you had a very challenged company. Out of the gates, we were trying to spin a company out of a public company and take it public alone, which is a massive challenge. Forget about one that's in a downturn, overall. I think there was a whole group of us who were somewhat experienced, but not fully experienced in doing all the things that we were doing. So we were figuring it out on the fly.

I bet if you went back and talked to a lot of those people, it was probably one of the best — and hardest — but best learning experience. If I went back to it now, at my experience level, I would probably take a step back and take a better account of my own skills of what I was really good at, and what I was not good at. And I probably would have augmented the team slightly. Not that I wouldn't have brought the people in from Google, but I would have had a couple other people around me who had more experience, and I think that was a lesson, and something I'm frankly taking into the Yahoo deal we're working on now.

How to inspire a team when morale is low

Tim Armstrong AOL CEOShontell: You also had a really tough challenge of, this was an uninspired company. It had gone through a couple of rough years, maybe people didn't even remember what a good year felt like. And you had to come in and get people to buy into your vision and get people excited again. So how do you go in and breathe inspiration into a company that feels deflated?

Armstrong: We did a 100-day process, and I traveled around the whole globe. There were about 10,000 AOL employees at the time, I saw about 9,000 of them in person, and I had three processes I was running: feedback from the entire company and team, feedback from the management team, and then a list I was keeping of things that I thought we should be doing.

After the 100 days, we held a meeting at the Time Warner Center and I put up three whiteboards. On one white board I wrote back the results from the entire global team of what they thought we should invest in. I put up a white board of what the management team thought, and I put up a whiteboard of what I thought. I flipped them all around at the same time. Each one had five things on them. All of the white boards were identical, except for one area on the white board that I had flipped around on my personal side.

So the whole company was already in alignment and I think that got people excited. They weren't told what the strategy was. They got input, and everyone was on the same path in believing in it.

A meeting with Verizon's CEO that led to a $4.4 billion deal

Lowell McAdam

Shontell: Down the road, Lowell McAdam, the CEO of Verizon, and you have a conversation. Verizon ends up buying AOL for $4.4 billion. How did that conversation start, and how do you decide, as the head of a huge company, that this was the right move?

Armstrong: There were two things. Lowell is an incredible CEO at Verizon, and somebody who really helped grow it from a wire line to wireless — and Verizon to become one of the most successful companies on the planet in doing so.

When I sat down with Lowell, it was one-on-one. It was at the Allen and Co. conference at what they call the "duck pond," where people kind of have meetings after the conference is over. And essentially I had a blank sheet of paper and Lowell asked me a number of questions. Things like, where the industry is going, what the structure would be, and what I thought was happening. I drew him a diagram of what I thought was happening. We talked for an hour or two about it, and then I didn't see him for months afterward, and then he called.

We had talked about [how] maybe there are operational things to do together between the companies, and then he called and came back in the fall. I met with him, and we had more and more conversations. So over the course of time, there was a very natural progression of where things were going. On the AOL front, what was happening was everything was going mobile and everything was going data-driven. I used to carry around a five-column chart from our board-of-directors meetings that I started every meeting with, that had the strategic priorities for the company.

Mobile, video, and data were the first three things on that chart, and I knew we needed to solve that issue. And Verizon, at the time, wanted to solve their challenge of, how do they grow services? So what naturally grew out of that conversation was a combination of what Verizon needed to solve and what we needed to solve.

It didn't start out as an M&A deal. It started as a big operational deal, then it went to a joint venture, then it went to a full company sale. But that's how it started. And at the same time, there were other companies kicking the tires on AOL, and we were meeting with people, but the reality was Verizon, if you think the future is mobile, then it's going to be about video and data.

If you think the future is mobile, then it's going to be about video and data.

It's hard to argue Verizon wasn't a great outcome for us as a business. I've been there for two years now; it's been a great experience.

Shontell: One thing that's happening in the broader media landscape in digital is this term "duopoly." A lot of media executives keep talking about it — it's the idea that Google and Facebook. the duo, are taking a ginormous share of all digital-ad dollars. There was recent a study from IAB that showed 89% of the digital money was going to those two, and 11% was going to everybody else, like AOL or Business Insider. How do you look at this landscape and what AOL's role can be? Where is everything going, in your opinion?

Armstrong: I think you have got to add Amazon to that list.

Shontell: A "triopoly."

The digital triopoly of Google, Facebook, and Amazon — and how everyone else can survive

Mark Zuckerberg HarvardArmstrong: People are saying duopoly, but they are missing one of the legs of the stool. Amazon's a real competitor in the space. I'm probably a contrarian thinker on this. I like the fact that Google and Facebook are getting more successful, and getting bigger at what they're doing. Frankly for us, we have a different strategy. So the stronger they get at what they're doing, the harder it will be for them to adjust out of that big scale to some of the things that we're thinking about doing.

We're a big publisher; we're one of the largest publishers on the web with our content, and we're one of the larger ad players. So it's challenging, but you have a choice. I'll give you the choice.

You have a choice of being in an industry that's growing at 15, 20, 30% globally. The internet is going to double in the next five years in terms of people who are connecting to it, through mobile. Only 15% of commerce by 2020 is going to be on the internet. There's huge opportunity in front of us.

You have a choice as a leader and as a company. You can go compete in linear spaces or offline spaces that are really challenged, or you can go into a space that's growing and you compete against gold-medal Olympic athletes. It's tough to say Google and Facebook aren't executing at the top of their game. Same thing with Amazon. But that sets an awesome bar for us as a company to compete at that level. And it challenges us creatively to try to get in that game.

From where we sit right now, I'd choose the tailwind industry that's growing, and I would choose to have Olympic-gold-medal competitors, because it's only going to raise our game.

I would choose to have Olympic-gold-medal competitors, because it's only going to raise our game.

With the industry, I have a whole viewpoint on industry consolidation, but where the world's going, we're heading to a place where there's going to be giant scale we've never seen before globally. There's going to be a set of companies that have the abilities to do that. And those companies are going to really, really have the chances to build companies the size that the world hasn't seen before.

Shontell: A final question: You've had to make a lot of hard decisions as a leader of many companies at this point. But you're also personable and a likable guy. How do you strike that balance between gaining respect from your employees and making the hard choices, and being liked and respected at a manager?

The advice Tim gives to his children, and to anyone building a career

Armstrong: There's advice I got when I was growing up — and I give it to my own kids — which is: To thine own self be true. What you see is what you get. If you interact with me, this is who I am, love me or hate me. And I think being authentic is important.

The second thing is, the mentor crew I have. I have a bunch of advice I always give to younger people, but one of them is to build your personal entourage or board of directors.

I have five or eight people outside the company I rely on. I have one person, David Bell, who used to be the CEO of IPG. He's in our office almost every day. I meet with him every Friday. And every Friday he starts by telling me everything I'm doing wrong. For me, it's the most helpful meeting of the week because it always resets me back to, "OK, what am I supposed to be doing as a leader? What's my job? What are those things? If you're yourself, and you're authentic, and you're honest and direct.

The other thing I've learned from David and people like [former Starbucks CEO] Howard Schultz and [American Express CEO] Ken Chenault and other people like that who have mentored me over time is, just be direct with people.

I did an all-company meeting with AOL and Yahoo yesterday. I got asked if there are going to be impacts from doing the deal. I said, "Yes, there are. That's what happens when two companies come together."

I'm not going to beat around the bush. We're going to try to do the least amount we possibly can, but the bottom line is, that's part of what's happening with the deal and I want to be direct about it. So that directness, I think, helps a lot, and being honest with yourself.

Join the conversation about this story »

NOW WATCH: Chinese inventors show off the gladiator robot they want to use to challenge the US' 'Megabot'

The unusual way Google cofounders Larry Page and Sergey Brin interview people for jobs

$
0
0

Larry Page Sergey Brin

Google has a famously difficult interviewing process. Over the years, it has ditched the brainteaser questions it once asked many candidates, but it's still no walk in the park.

So if interviewing for a position with an ordinary Google manager is difficult, what is it like interviewing with Google's founders, Larry Page and Sergey Brin?

AOL CEO Tim Armstrong knows.

Before joining AOL in 2009, Armstrong spent a decade at Google, where he helped build its multibillion-dollar-a-quarter ad business from scratch. He joined before the initial public offering, in the early 2000s.

Armstrong was first approached by Omid Kordestani, who was Google's chief business officer and is now Twitter's executive chairman. The two met at the Carlisle Hotel in New York City on a rainy Friday to discuss the possibility of Armstrong joining Google. They debated whether Google should enter the advertising business — it was generating most of its (tiny) revenue by licensing software.

Armstrong had been an advertising salesman at Star Wave, a company created by Microsoft cofounder Paul Allen. He had another offer on the table, but he still met with Kordestani. He says they "hit it off right away."

The next step was to fly to California and interview with Google's founders, Larry Page and Sergey Brin.

Armstrong told me about the experience on an episode of Business Insider's podcast, "Success! How I Did It." The interviewing process sounded ... unusual.

Interview yourself while we watch

Tim Armstrong AOL CEO

"They basically said at the beginning of the meeting, after a few questions: 'We're not really sure what to ask you. Ask yourself the questions. What questions would you ask yourself, if you were us?'" Armstrong said. "So I said, 'Look, I'm a very direct person, very honest. Here's what I would ask, the following questions.' I thought that was interesting."

Armstrong later learned that this interaction wasn't the result of Brin or Page being unprepared or lazy. Instead, it was a common tactic they used to help judge a candidate's character.

"I realized later, after working with them, that that was not an anomaly — that was one of their tactics," Armstrong said. It's unclear whether Brin and Page still use the same approach to screen candidates.

Despite the odd first meeting, Google's founders left a lasting, positive impression on Armstrong.

"They were driven," Armstrong told Business Insider. "I think, to this day, Larry and Sergey are obviously very smart and very creative. They're very competitive also, in a good way. I'd say they care a lot. At their size now and what they're doing, I'm sure there's a lot of feedback on them, how people feel about them. But they are, at their heart, very good people, both of them."

Listen to Armstrong's interview, packed full of advice, about his career:

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

Join the conversation about this story »

NOW WATCH: Here's why Google went to Burning Man to find its next CEO

How BuzzFeed CEO Jonah Peretti took an instant messaging bot and turned it into a $1.5 billion media empire

$
0
0

buzzfeed

Jonah Peretti is the CEO and founder of BuzzFeed, a digital media company that reaches hundreds of millions of readers around the world with its fun quizzes and videos, as well as with hard-hitting news coverage.

Before starting BuzzFeed, Peretti launched The Huffington Post along with Ariana Huffington, Ken Lerer and the late conservative firebrand, Andrew Breitbart. 

Peretti recently spoke with Business Insider's US Editor-in-Chief, Alyson Shontell, for the podcast "Success! How I Did It."

In this episode, we cover: 

  • Jonah's first experience with viral fame, after an email thread between him and Nike exploded.
  • How he first met Arianna Huffington, who invited him to her home and cooked him breakfast. 
  • What Andrew Breitbart — another Huffington Post founder — was like, and what he might think of his namesake website today.
  • Buzzfeed's early days as an instant messaging bot. 
  • The reason he resisted the urge to sell BuzzFeed after receiving a huge buyout offer from Disney. 
  • Why company executives who seem intregral might not be as essential as you think. 
  • That famous lewd Ivanka Trump tweet, and why he published it. 
  • Why Buzzfeed decided to publish the Trump-Russia dossier. 
  • How to build a successful startup, and turn it into something massive.  

The following transcript has been edited for clarity and length.

Alyson Shontell:Jonah Peretti is here with us today. He's the founder and CEO of Buzzfeed which has been valued at more than a billion dollars. There are rumors it might go public in 2018, and he previously cofounded the Huffington Post, so the guy clearly knows what he's doing. We're really happy to have you here with us today, Jonah. Thanks for coming. 

Jonah Peretti: Thanks for having me. 

Shontell: Awesome. First off, we were just talking about how you're in California now, but Buzzfeed was founded in New York, so how many people are here? How many people are there? How big is Buzzfeed these days?

Peretti: We have about 700 people in New York and 600 in LA with more video production in LA and more news people in New York and about 1500 globally, so we have offices in a lot of other cities around the world. 

Shontell: I wanted to talk about how you grew it to the size that it is, but first can we go back to growing up in California? You have a sister who's a comedian. You've always had this knack for making things go viral. The first thing I remember reading about you is this famous Nike letter that you wrote that went viral when you were in college I think?

Peretti: In grad school. 

Shontell: So what was the story behind that?

How Jonah went viral before social media existed: The rejection hotline,"Black People Love Us," and trolling Nike

Buzzfeed CEO Jonah Peretti

Peretti: I was doing what most students do, which is procrastinate. I had to write my master's thesis. Instead of writing my master's thesis I was surfing the web, surfing the information superhighway. This was in January of 2001, so still pretty early days of internet culture. Nike had just launched something called Nike ID where you could customize your shoes and you could put your name underneath the swoosh, so I tried to customize a pair of shoes with the word sweatshop under the swoosh, and they rejected the order. 

We had this email exchange back and forth where they said, "It's inappropriate slang." I said, "No, it's in the dictionary. It means a shop or a factory worker's toilet under healthy conditions." They wrote back another excuse and at the end they said, "Look, we just reserve the right to not put that on the shoe." I said, "Okay, I'll change the ID, but can you at least send me a picture of the 10 year old Vietnamese girl that stitches the shoes together?" Then they didn't write back after that.  

I looked at this email correspondence. This was before YouTube, before Facebook, before people thought of things going viral, but there were these things called email forwards. I pasted this correspondence into an email, sent it to a few friends, then they sent it to their friends, and it became an early email forward that reached millions of people. Even though I didn't know anything about sweatshops or labor issues, I ended up on the Today Show debating the issue with Nike's head of global PR and Katie Couric moderating.  

It opened up my eyes to the possibility of the fact that media was shifting so that if people thought something was worth passing on or sharing, you could reach millions of people even if you don't own a printing press or a broadcast pipe or the normal ways that you reach mass audiences. 

Shontell: That was your first viral taste, but then you also did other gimmicks and pranks that went viral. What else did you do? 

Peretti: With my sister, I did something called the New York City rejection line which was a phone number where if someone was hitting on you and wouldn't take no for an answer, you could give them your number and when they called, they get an automated rejection message that would say, "The person who gave you this number didn't actually want to see you again. Press one ..." 

Shontell: We should bring that back. I feel like that would be useful still. 

Peretti: Then we did a project called “Black People Love Us,” which looked like the personal website of two super-white people who were so proud of having black friends that they created a whole website about it.  A lot of various types of projects, then after that did some political projects and did some projects with Ken Lerer who I later started Huffington Post with along with Arianna Huffington and Andrew Breitbart.  

Shontell: Talk about the gang getting together for the founding of the Huffington Post because you have Andrew Breitbart in there and then you have Kenny Lerer and then you have Arianna Huffington and you. How did you all come together to form what ultimately became a huge company? 

Peretti: It was a lot of serendipity. Kenny heard about some of the viral projects I had done.  

Shontell: Was he one of the recipients of the prank phone call? 

Starting the Huffington Post with Andrew Breitbart, Arianna Huffington and Ken Lerer, and what it was like to work with Breitbartandrew breitbart

Peretti: I don't think so. I think he had seen the Nike email and heard about some of the work we were doing, so he stopped by and wanted to do some work on gun control which was his issue and he was trying to understand how to use the internet to do that. We did a few projects together there. Then at the end of working together on a few things he said, "I know business. You know the internet. Let's start a company together." We shook hands, but we didn't know what we were going to do.

Then subsequently he went to LA and met Arianna Huffington and was amazed at how many people she knew and how connected she was to people in the world of businesses and entertainment and politics, and so many different worlds who came together in Arianna's own personal network. He came back from his trip to LA and said, "Our company with Arianna..."

I was like, "What?" I was Googling her. It's like, Who is this fancy lady we're in business with? I said, "Listen, if I'm going to go into business with someone, I need to meet her."

So I flew out to LA, and I stayed at her house in Brentwood and woke up at seven in the morning. She already had a 6 AM meeting and had breakfast, and she was incredibly charming. Then I flew back thinking this was an adventure. We're going to build something. Then Andrew Breitbart had previously worked for Arianna, and at the time that we started Huffington Post, he was working for the Drudge Report and was really this savant of internet news.

Kenny got very excited about the idea that the guy from the Drudge Report who spent — half the day, Andrew would write headlines and half the day Matt Drudge would write headlines. Kenny got very exciting about luring him to Huffington Post. He joined us before we launched the site and was one of the partners in the business. Then it just didn't last very long once the site launched, because the site was too liberal for him. He thought the site was going to be much more bipartisan and had trouble writing these liberal headlines and stuff. 

Shontell: He's unfortunately since passed away, but you did have the chance to know him. He's of course the founder of Breitbart, which seems to be one of the Trump administration's favorite publications. What do you think he would make of what's become of his publication, and what was he like? 

Peretti: He was just bouncing off the walls at a million miles an hour, tons of ideas, lived on the internet kind of guy. It was challenging to work with him but also a lot of fun. He was at some level a real internet troll. He told me a story about how he was writing a headline on the Drudge Report about Chris Rock, and how he loves Chris Rock and thinks he's hilarious, but the headline was like "Shock and Outrage: How could he host the Oscars when he makes all these inappropriate jokes?"

He knew that he could write it exactly in a way that would cause socially-liberal conservatives to think it was funny and actual more family-values conservatives to be outraged. He knew how to find the line that would cause all the different cultural cracks to explode and have people bang into each other. He loved it. He loved that kind of thing.

I think the continued trolling of massive parts of the population by Breitbart and the Trump administration would be something that Andrew would love. I think he would have a more complex and nuanced view on Trump himself, and on policies and things like that. It's hard to say have since he passed away several years ago now what his views on that would be, but the trolling part he would absolutely love.

Spotting an opportunity to build a giant media startup

Buzzfeed

Shontell: You all created Huffington Post. It became — and still — is a giant success. You did figure out how to merge these viral ideas. You seemed to have a natural knack for it but then with also tech and algorithms and data. That was the first time it's really been done before. 

Peretti: I think when you look at media, you always have to look at what do new media technologies enable that was not possible before. If you look at something like cable, CNN could do 24 hour news, which was not possible before, and the reason you couldn't do 24 hour news on broadcast is you had prime-time programming and other shows and soap operas and game shows and all these other things. You had to cut into that programming to show news. If there's a big news event like the Iraq war, they couldn't cut into all their programming because it would destroy their business.

With cable, you could go 24 hours into a big story, so CNN took advantage of the fact that you could do things on cable you couldn't do on traditional TV. When you look at internet media businesses, one of the big things you get from the internet that you don't get in print and broadcast is feedback from the audiences and this massive amount of data that comes in and shows you what are people sharing. What are people clicking? How are people engaging? When are they dropping off if you're watching a video? When did they stop scrolling? What kind of comments are they writing?

It's a massive difference from a newspaper or broadcast TV. That difference is the key thing that you need to tap into if you're trying to build something in an industry. If you're trying to be a new entrant in an industry and you want to have some prayer of competing against these giant companies that are already in the industry, like giant multi-billion dollar companies, The Disney's and NBC's and all these big companies that already exist in media, how do you compete with that? You can't, unless you figure out how to tap into something that is special and new about the new medium that you're in. 

Shontell: You did that once and then while you're at Huffington Post, you start what becomes Buzzfeed, right? You did that while doing your job there?

Peretti: Yeah, I was doing Huffington Post and BuzzFeed at the same time. 

Shontell: How did that work? 

Peretti: Not very well. I wouldn't recommend it. I was going between our office in Chinatown at BuzzFeed and SoHo, and I'd pick up Vietnamese sandwiches on the way and feed them to the Huff Post editors. BuzzFeed was more of a lab, and we were experimenting. It started to be hard. I was spending most of my time at BuzzFeed and going Monday mornings to Huff Post for the management meeting but then spending lots of time thinking about it, emailing a lot with Paul Barry who was the CTO about product and tech and growth. It wasn't until Huff Post sold to AOL that I made a complete break and focused entirely on BuzzFeed. It made a huge difference in the ability to grow BuzzFeed once I was not also doing Huff Post.  

Shontell: You described early BuzzFeed as this lab of sorts. What was the first version? Wasn't it something like an IM product almost? 

Buzzfeed's early days as an Instant Messenger bot

buzzfeed ceo founder Jonah Peretti

Peretti:Before we launched anything, we had something called Buzz Bot that used IM, and we had this thing that we called a trend detector. Our design advisor was this guy Jason who was an early pioneer blogger, and he linked to lots of things. We actually built a crawler that crawled out from his blog and found a network of 1,000 other blogs, something like that. Maybe it was 10,000. I can't remember. Then it would look for acceleration of links among that pool of influential bloggers.

It was inspired by my friend Cameron Marlow, who created something called Blogdex, which was a popular service in the early days of blogging that would track acceleration of links on blogs. This wasn't public facing. It was just for our editor Peggy. Peggy Wang was our founding editor. She still works at the company, and she would look at this trend detector and see half of it was junk or spam or whatever, and some of it was interesting.

She would write up little summaries of that, but before we had a site and before she wrote the summaries, we had this thing called Buzz Bot and it would just IM you a link that made it to the top of the trend. The problem was IM only allowed something like 10 people to be connected. It was a pretty fun product that only 10 people could use, so not the best business strategy. 

Shontell: Was it ever hard? It seems like it was almost viral from the start. Was traction ever difficult, or did you have any tough times in the early days of BuzzFeed?  

Peretti: It's always hard. It's hard now. It was hard then. Everything is hard. I think of it as almost like a video game or exercise. If it wasn't hard, it wouldn't be fun and what's the point? It was always fun and it's still fun, but you're always trying to solve problems and new challenges. At BuzzFeed, we've done a good job in the early years of doubling every year, but it was from very small numbers.

We’d have 300,000 uniques. Then one year later, 600,000. None of that was really material, and none of it could support an ad business. It wasn't until we got enough scale that that growth put us in a position where people even noticed, but we were pretty under the radar for a long time. 

Shontell: Now some media companies are trying to make it cool to be niche and smaller scale. They're saying, "We just have a small loyal audience. Who needs all those readers?" 

Peretti: That's what small companies say. That's what we said when we were small.  There was a write up about how smart it was that Buzzfeed, in a world of information overload where tons of things are being published, only does five or six things a day. That focus is so key and is a new trend in media. I remember reading it and thinking, "Yeah, but we have one editor." Now we publish hundreds of things a day — video and lists and quizzes and news and micro-short content and longer shows and podcasts.  

Shontell:  The things that people like to read online they claim they don't actually like to read and they want to read lots of other more serious stuff.I would say the brand has transitioned quite a bit, but how did you do that? 

Peretti: The way we did it was an obsession with social, and social to us wasn't a category or a buzzword. It was, how do you interact with another person in the world? What I noticed with the Nike email and those early projects is that people were using content as a way to connect to other people in their lives, and they were using content to express their identity or their political beliefs or their cultural beliefs. They were using content to feel less alone. In a way, content and communication had converged where you weren't just consuming content.

You were taking that content and sharing it with a friend as a way of connecting with another person in the world. That was really the key for us from the beginning. When we first started, the way that people were connecting with each other online was internet memes and humor and cute animals. Cute animals were an easy way to feel the same emotion as someone and to say, "Aww," together and you feel closer to the person. Just the same way when everyone pets the family dog they feel closer to each other. Not just the dog, but it's a way of connecting with other people.

Humor is the same thing. When you laugh with someone, it doesn't really matter what you laugh about. You just have shared that laughter, and you feel closer to someone when you've laughed with them. That was what initially was on Facebook and social platforms and even email forwards.  

Then what we saw was that social became much bigger, and people started to do that with news. They started to do it with all kinds of other forms of entertainment, with video and new formats and new platforms, with Snapchat and Instagram.

That same human connection, that same idea of how do people connect with each other, drove all of our expansion. When people started to share news we said, "Wow, we'd love to be in the news industry. We'd love to make news." We didn't think we could because people weren't sharing news. All of a sudden, we started to see news on Facebook and Twitter, and it made us realize we could go into that business. We've evolved along with the way consumers have evolved and the way social interactions have evolved online. 

Shontell: It seemed like you guys were the first to capitalize on Facebook in a really meaningful way and there was this idea that maybe people don't want to come to your website to read stuff. Maybe they want to read it on Facebook and that's okay. What was your thought process around seeing the trend of everything going to distributed? 

Buzzfeed employees work at the company's headquarters in New York January 9, 2014.   REUTERS/Brendan McDermid/File Photo

Peretti: I think we figured this out through Ze Frank. We acquired his company when it was a four person company. He was doing video in LA and everyone else was in New York. He tried initially to put video on BuzzFeed's site, and it didn't do nearly as well as when he put it on YouTube. We started to see our video business really grow.

It wasn't growing on our site, but because we were focused on branded content and native advertising, we could take all of our learnings and still make money. That was another piece of it. Then looking around at the industry, we started to realize all these publishers [generated revenue] based on banner advertisements.

Banner advertisements don't really scale well to mobile devices. Not scale in the growth sense, but when you scale them down to a mobile screen, they don't really work that well. Also, banner ads require getting people to a site where you can run the banner. Because we weren't doing banner advertising and because we had already seen with video how distributed media could work both as a business and for a consumer, we said, “Wait, why would we fight against the consumer desire to consume media in these apps? Why don't we lean into it instead and monetize it with branded content and native advertising? And instead of having all these links that are telling you to go somewhere else, just put the content there. Turn the link into content, and then instead of having to and go find it somewhere else, you could consume it right away, and it's cut out a step.”  

We went from having billions of impressions of our links on these social platforms to having billions of content views on the social platforms because you could just consume it right there. 

Shontell: One thing that happened as a result of all this success is that you had outside parties interested in Buzzfeed and potentially acquiring Buzzfeed. One tough decision that you have to make as a CEO is, do you stay the course or do you exit? It's been well reported now that Disney was very interested in buying BuzzFeed a couple years ago. In the final hour, you decided not to sell. What was that process like as CEO? How do you walk away from all of that money that's right there, dangling like a carrot?  

Peretti: Some of these things come down to almost an emotional feeling, but I think that the gut feeling and emotional feeling actually is informed by a lot of data and looking at things in a rational way. The biggest thing for me is that I felt we had many more things to do as a company, that we valued our independence a lot.

It felt that we would be able to do a lot more as an independent company. If you think about the time when we had some conversations with Disney, we were just hiring Mark Schoofs to lead our investigate journalism team. That was just starting. Video we had been doing for a little bit but it was growing and we knew that it was going to be huge.

Now it's more than half our revenue. We knew it was going to be huge, but at the time people thought BuzzFeed was just a website. It felt like there were a lot of shifts coming, and there would be a lot of opportunity. There were a lot of things we wanted to do, and remaining an independent company just in my gut and my bones felt like the right path.

Shontell: Since then, the media industry has changed a lot. Do you ever think, "If I had just sold to Disney, I wouldn't have to figure out this video thing. I wouldn't have to do all these things in the industry that are changing so much"?

Don't even think about joining a startup if you don't like things that are hard

Peretti: I think you shouldn't be a CEO or even a startup executive or employee if you don't like things that are hard or challenging, and you don't like trying to do things that are difficult where you have to figure out new things that don't exist yet. That has to be part of why you do it. It has to be part of the fun. They say when there's a bubble or lots of money flows into startups, you have a lot of people who come in because they want to make a lot of money.

The whole get rich quick thing. "I want to do something where it doesn't take that much work, and I'll make a lot of money." I'm reading stories about startups and all the money in startups. It's just a lot harder than it looks. Harder meaning the day to day is trying to create something new and trying to be a small little guy in a giant industry.

Even now, we're 1,500 employees and growing quickly and things are going incredibly well. But when you compare that to the size of Disney or Time Warner, we're small. When you want to work in a startup and build something, it's going to be really hard.

If you love that, if you love the struggle and that's part of why you do it, it also makes selling a company a lot less appealing. Because if the idea is you're doing it so you can relax, you wouldn't be building the company in the first place. 

Shontell: You've grown tremendously since then. It seems like it was the right choice. Jon Steinberg was with you for the first half of your company. He left shortly after [you decided not to sell to Disney]. How do you go from having someone who's an integral player in keeping the company afloat, to keeping it going after they leave?  

Peretti: I'm trying to think of the right way to answer this. It's hard in an immediate sense. You have someone who's very active and doing lots of things, and you need to figure out how you organize and get things done. People often overestimate the value of individual people. This happens with founders a lot.

People think that the key to everything is the founder, and the founder is the one on the cover of the magazine, the one who is the source of all the success. The truth is, particularly once a company gets a little bit bigger and there are more people involved with all different experiences who come together, it really becomes a team thing. You start to see that when there's a gap, a million other people pick up the slack.

People step up. People who you didn't think could do it step up and take on a role. People want the company to succeed, and they want the company to thrive. When somebody leaves and it's tough, you see a lot of people step up and fill the void. It's really actually pretty inspiring that there's a resiliency to a company and that the team is a real thing. It can be hard, but I think also companies are systems and they're people and they're operations and they're business models and all those things are bigger than any one person. And they’re even bigger than a founder or a senior executive. 

The real story behind that lewd Ivanka Trump tweet, and why BuzzFeed published the Trump-Russia dossier

Ivanka Trump

Shontell: That's great advice. I have a couple questions that are more about recent times. One is, you all made some splashes during the campaign and also post election. You know I have to ask you: what was up with that Ivanka Trump tweet?

If you are listening and don't know this story, I have to ask. You tweeted [just before the presidential election] seemingly out of the blue about Ivanka Trump. You tweeted, and I quote: “I met her once and she casually said, "I've never seen a mulatto cock. But I'd like to!" 

What was the thought process behind sending that tweet? Were you drunk? Were you okay? What happened?

Peretti: You know how if you meet a celebrity, you have a story of, "The time I met this person ..." and you remember it? Not everyone's met a celebrity, but a lot of people have this experience if you live in New York or LA. The person came into the restaurant you're in and they did something funny or whatever and you remember it.

For me, what I remember about Ivanka...We had a mutual friend. She came out for drinks. We were doing sake bombs at a dive bar in Chinatown on the lower east side. It was just a shock that she said that. It was like, "What?"

I got off a flight and I was in the Burbank airport, and I was reading Twitter. There was a Buzzfeed news story that had quoted her saying she was shocked at her father's language, something like that. I saw it and I was like, "What? She's shocked? She uses that kind of language! How could she be saying she's shocked by her dad's language like she's some choir boy?”

Anyway, I saw that and then without really thinking much — obviously because you wouldn't tweet that if you were thinking a lot — I just retweeted that tweet with a comment of, "Funny she's shocked by it because this is what she said the one time I met her. 

Shontell: I remember Ben Smith, your head of news, saying, "Are there medics on this flight?" You of all people should know to not tweet before flying, but I guess you were off the plane.

Peretti: I was getting off the plane. I did kind of get very quiet after that. I didn't follow up with an additional explanation or tweets.

Shontell: Right. If I remember correctly, Buzzfeed wrote an article interviewing you about what your tweet was.

Peretti: Shani calls me, and I can't not take the call when it's Shani calling me — she's a very key, important and powerful person in our news room. She calls me and is like, "I have a reporter here who wants to talk to you." I was like, I never would've taken a call from any other news sources but I have to when it's ...

Shontell: It's your employee.

Peretti: I have to answer the phone. Then I did some awkward interview about why ...

Shontell: Did you talk to Ivanka after?

Jonah: I haven't talked to her.

Shontell: One other more serious thing that you all published was the [Trump-Russia] dossier. This is the Donald Trump pee tape origins, allegedly. You all find this document that's been circulating around all of Washington. Obama's read it. Donald Trump has apparently been briefed on it.

It's got a lot of different allegations in it, and you publish. You say, "We haven't verified everything in it. We tried. We spent weeks sitting on this thing, but we feel like you, the public, deserve to see it because, frankly, all of Washington already has."

It created this storm within media of, “Should they have published it? Should they not have?” We debated it in our news room. What was it like for you all, and what was it like for you as a CEO of the company deciding to publish this?

Peretti: I would say in retrospect we feel like we made the right decision. When you have a documents circulating in the highest level of the government and people are taking action based on the document... We have Harry Reid referencing it but not saying what's in it, and you have CNN referencing it but not saying what's in it. How's the public supposed to understand what's happening at the highest level of government in something that's incredibly important to the country and to democracy if they can't see the thing that everyone in power is looking at?

We don't see ourselves as being a news outlet that's trying to tell people how to think and tell people what matters. We try to inform people, let people know what's going on, be transparent with our readers, assume that our readers are intelligent and can understand context that we provide. It fit BuzzFeed New's values, to make the decision to publish.

Building a company for the way the world works today, not 20 years ago

Jonah Peretti

Shontell: A few wrap up questions. What is Buzzfeed, and what is its future? Are you the next Disney? Are you the next NBC? What are you building here?

Peretti: I think every time there's been a massive shift in technology of media, there's been a few companies that have emerged that are large sustainable hundred year companies. When you look at ... There was a period of tons of new people starting newspapers that coincided with roads and be able to deliver newspapers, and a few of them became really huge, enduring companies.

When you look at magazines, it was really the postal service that enabled magazines. You could deliver magazines to people's houses and also raise their literacy. There were lots of magazines, and then consolidation, and a few that became really, really big. The same thing happened in the ‘80s with cable. You could actually talk to people who experienced that. There were lots of cable channels that then ended up becoming a few big companies.

I think with internet and media, you're going to see something similar. We want to be one of the ones to emerge from the era, redefining how news and entertainment should work for the era of digital, the internet, mobile and social. It feels like there's a possibility to build a media company that's much more connected with people's lives, that has a much more intimate relationship with readers, that serves readers whether it's news or entertainment or things like Tasty and lifestyle content.

I think we're also very well positioned as a company with all the advances that are happening in machine learning and deep learning and technology that's going to really advance what's possible in media. We're building a global news and entertainment company for the way the world works today, instead of the way the world worked 20, 80 or 120 years ago.

Shontell: Do you ever regret raising so much money? There's an argument to be made that ... I think TechCrunch sold for $30 million. Huffington Post sold for $300 million. Arianna and Mike Harrington, the co-founders, made about the same. One was much smaller, didn't raise really much money, and one raised a ton. You've raised how many millions? Hundreds of millions. Do you ever think, "I should've just gone a little smaller."

Peretti: No, I don't. I think it has to do with what you want to do and what you want to build. My advice is there's not one path. There's not one way to skin a cat. You see arguments online sometimes where people are like, "You should raise a lot of money. You shouldn't raise money. You should raise a little." It totally depends on what you're doing and also what you're good at and what kind of life you want to live.

If you are excited about building something that grows really fast and has a lower chance of success but could be giant, you should try to raise venture capital and you should try to raise a lot of it as soon as you have signal that you're onto something and that you can deploy that capital to do something useful.

If you're someone who has a special skill or wants to be an artist or wants to do something that you can do with a small, core group of people, then you shouldn't raise venture capital and you shouldn't feel badly if you don't do the venture capital route. You should feel badly if you're doing something that isn't the right fit for you and isn't the thing that you're passionate about and doesn't fit your strengths and the things you're interested in doing.

I know people who what they want to do is think and write, and that's great. You can be really successful, and there are multimillionaires who are writers. You can be Malcolm Gladwell, who I think probably is richer than Arianna Huffington or Michael Arrington. That doesn't mean that you should not raise venture capital. You should just try to be like Malcolm Gladwell. You should do what's right for you and what fits your temperament and your passion.

 Shontell: Anything else to add for someone who wants to build an empire like you're doing. 

What to do if you want to build a business empire

Peretti: If you want to build an empire — I accidentally/reluctantly found my way into building something that was much bigger than I expected. But I think, start small and focus on the customer or the audience, solving problems for them and focusing on that small thing. Then figure out how to scale that into something much bigger.

Then if you are trying to build something really big, then you just need to figure out how do you find really great people that you trust who can join your team and be part of it with you because, really, the key to everything is you can't do it all on your own. You need to have really great, smart people, people like Ze Frank and Ben Smith with doing the product lab, and all these people who have a unique perspective and are way better at their jobs than I am. I would never be able to do what they do. That's what you need.

I think that's the other thing. If you want to build something really big, you have to be okay with the fact that you're not going to be able to be in the weeds on everything, and you shouldn't be micromanaging everything. You need people who can do things way better than you can in the areas where they have the ... What's the right way to end the sentence? Sometimes I start sentences and ... 

Shontell: We can just let it trail off and just play some music?

Peretti: Just end with, "Errr ..."

Shontell: That sounds great.

Peretti: You need to find people who are better at speaking than you also.

Shontell: Perfect. Thank you so much, Jonah. It's been a real pleasure.

Peretti: Thank you so much.

SEE ALSO: How Tim Armstrong, a hotshot Boston sales guy, wowed Google's founders, built its multi-billion-dollar ad business from scratch, then became AOL's CEO

Join the conversation about this story »

NOW WATCH: 16 keyboard shortcuts only Mac power users know about

BuzzFeed CEO Jonah Peretti explains the story behind his explosive tweet that claimed Ivanka Trump used lewd language

$
0
0

Ivanka Trump

In October, shortly after Donald Trump's shocking "Access Hollywood" tape was made public, BuzzFeed CEO Jonah Peretti posted an explosive tweet about Trump's daughter Ivanka.

Ivanka had publicly said she was surprised by her father's crude language in the video, in which he told the TV personality Billy Bush that he could grab women "by the p---y" because he was a star.

"That's not language consistent with any conversation I've ever had with him, certainly, or any conversation I've overheard,"she said at Fortune's Most Powerful Women Summit. "So it was a bit jarring."

When Peretti read her statement, he called her out on Twitter.

"Surprised Ivanka would be shocked by lewd language," Peretti wrote. "I met her once & she casually said: 'I've never seen a mulatto c--k, but I'd like to!'"

Peretti's tweet caused an instant uproar on Twitter, even among his staff. BuzzFeed's editor-in-chief tweeted in response, asking whether there was a doctor on a flight Peretti was on.

Trump denied Peretti's claim.

"I am not sure if this was meant to be a joke, but in case there is any ambiguity, this is a complete and total lie," she told BuzzFeed.

So what prompted Peretti's tweet, and has he heard from Trump's team since?

Peretti told Business Insider the backstory during an interview for our podcast, "Success! How I Did It."

Here's that portion of the Q&A:

Alyson Shontell: What was the thought process behind sending that tweet? Were you drunk? Were you OK? What happened?

Jonah Peretti: You know how if you meet a celebrity, you have a story of "The time I met this person ..." and you remember it? Not everyone's met a celebrity, but a lot of people have this experience if you live in New York or LA. The person came into the restaurant you're in and they did something funny or whatever, and you remember it.

For me, that was what I remember about Ivanka. We had a mutual friend. She came out for drinks. We were doing sake bombs at a dive bar in Chinatown on the Lower East Side. It was just a shock that she said that. It was like, what?

I didn't tweet it or share it. It was just one of those things you [recall] to a close friend.

But then I got off a flight and I was in the Burbank airport, and I was reading Twitter. There was a BuzzFeed News story that had quoted her saying she was shocked at her father's language, something like that. I saw it and I was like, what? She's shocked? She uses that kind of language! How could she be saying she's shocked by her dad's language, like she's some choir boy?

Anyway, I saw that, and then without really thinking much — obviously, because you wouldn't tweet that if you were thinking a lot — I just retweeted that tweet with a comment of, 'Funny she'd be shocked by it, because this is what she said the one time I met her."

Shontell: I remember Ben Smith, your head of news, saying, "Are there medics on this flight?" You of all people should know to not tweet before flying, but I guess you were off the plane.

Peretti: I was getting off the plane. I did kind of get very quiet after that. I didn't follow up with an additional explanation or tweets.

Shontell: Right. If I remember correctly, BuzzFeed wrote an article interviewing you about what your tweet was.

Peretti: Shani [Hilton, head of US news] calls me, and I can't not take the call when it's Shani calling me. She's a very key, important, and powerful person in our newsroom. She calls me and is like, "I have a reporter here who wants to talk to you." I was like, ugh, I never would've taken a call from any other news sources, but I have to when it's —

Shontell:— it's your employee.

Peretti: I have to answer the phone. Then I did some awkward interview with a BuzzFeed employee about why I sent it.

Shontell: Have you talked to Ivanka?

Peretti: I haven't talked to her.

Check out the full interview with Peretti and subscribe to "Success! How I Did It" on Acast or iTunes for more episodes:

Check out previous episodes with:

Join the conversation about this story »

NOW WATCH: Bill Gates is backing the waterless toilet of the future — here's how it works

How the founder of ClassPass pivoted a struggling startup into a $470 million business, then made a tough decision to stop being CEO

$
0
0

ClassPass Payal Kadakia 2589

ClassPass, a fitness-class booking company, can be found in 39 cities around the world. It has generated more than 30 million class reservations since Payal Kadakia founded the company in 2013. One year later, it raised a big round of financing at a $350 million post-money valuation.

But building ClassPass hasn't been easy. The first version of the startup, Classtivity, flopped. Later, ClassPass significantly changed its pricing model, and users screamed. There have also been comparisons to Groupon and skepticism that it can keep both gymgoers and gyms happy.

Additionally, a slew of competitors have launched to compete with ClassPass on price. In June, ClassPass raised a new round of financing that was reportedly a "down round," meaning the price of its shares were lower than in the previous round it raised. The company's new valuation is about $470 million, post-money.

Kadakia recently stepped down from her role as CEO, a decision she explained in an interview with Business Insider Editor-in-Chief Alyson Shontell on our podcast, "Success! How I Did It."

"The impact we have on people's lives to me is more important than any title anyone can carry," she said. "I want little girls to believe that they can be CEOs. The best thing I could do, though, is be an empowered female and authentically doing what I love. That's the message I want to send, not "Go and do things you don't like because that's what the world needs," right?"

In the wide-ranging conversation, Kadakia and Shontell discussed:

  • Her passion for dancing and how it led to a nearly $400 million startup.
  • How she decided to pivot a struggling startup into one that would work.
  • How ClassPass finally got traction and what it was like to suddenly be a startup every investor wanted a piece of.
  • How to run a startup when you have two conflicting customers you need to keep happy (gymgoers and gyms).
  • Her decision to step down as CEO and how she spends her days now.

You can listen to the full interview here:

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

If you'd rather read the interview, here's a transcript, which has been lightly edited for clarity and length:

Alyson Shontell: We have Payal Kadakia here with us today. She created ClassPass. It's a company where you book local fitness classes for a set amount per month, like $100 a month or something. There were some tough years in the beginning, but then it started to soar, and you recently made the tough decision to step away from the CEO role. You're still involved very much so in an executive chairman position. We want to talk about all that.

First, let's go back. You're a world-class dancer, right? You've been dancing since you were little. That's part of what inspired you to do this company.

Payal Kadakia: I started dancing when I was 3 years old in my basement with my mom's best friend, and it was my way of getting to know my culture, but it also became more than that for me. It became this place where I felt like I could be anyone. I felt really centered, and I loved it. Dance became this thing I fought to keep in my life throughout my career, through my college years, because I just felt so alive and so confident when I did it, and so I never wanted to lose it.

Shontell: You have both sides of your brain going — you also went to MIT.

Kadakia: My parents immigrated here in the '70s. Education, a good career were obviously North Stars for them. At the same time, I wanted the discipline. I wanted to make sure I entered the real world in the right way. I loved math and science, so that was the other side of me, and my creative side was really in dance and choreography.

Passion for dance

payal kadakia

Shontell: What kind of dance?

Kadakia: It's Indian folk and classical dance. When I was in school — especially at MIT — I even wanted to dance there. So I went and started a dance company, a dance troupe that's still on campus today. For me, when I felt like it didn't exist, I created it. And that's sort of very much the way I live and think about most things: When it's not there, I know if I'm passionate enough I'll go and create it myself. When I left MIT and I came here to New York, I had my job at Bain, and the first thing I did when I got here was look for where I was going to go take Bollywood dance classes. During my Bain days, I would invite my entire company to my shows. It's just one of those things that I think made me Payal, and everyone associated me with it.

When I was, I would say, entering my third year of Bain, most people at that point decide what they are going to do after, and either they stay at Bain or they go to business school — it's usually the trajectory. I wanted to find a way to dance more and to build something that was something more relevant and in the Indian dance space. I took a great job at Warner Music Group. I got to see the entire music industry transform and got to meet amazing people like Daniel Ek at Spotify. I was sort of doing that on the day job, and every night for four hours I would dance with a group of girls that also were professionals and amazing at their jobs. We would travel on the weekends and go and perform.

I always remember we ended up on the cover of the art section of The New York Times. This was two years into my Warner experience, maybe six months into when I started the company. I didn't even have a website, and I remember my boss was like, "Are you going to come into work tomorrow? I don't know. I think I saw you on the cover of the art section of The New York Times." I love moments like that. It makes you realize that you could do so much and accomplish so much if you're focused and passionate about what you do.

Turning a hobby into a career

Payal Kadakia Dreamforce ClassPass

Shontell: When we first met, you had joined something called Tech Stars. Your startup was called Classtivity at the time. It was a variation of what ClassPass is now. Was that the first company you had — I guess you started the dance company, but that was your first experience with tech?

Kadakia: Yeah, outside of building some small models and algorithmic programs at MIT, I really hadn't built something of that scale, and the reason I did it was I was one day sitting at my desk. I was looking for a ballet class to take, and I was online and hours had passed by, and I didn't choose what I would do. And at that moment, I was like, why is this so difficult? Why is there not a website like OpenTable or Seamless Web or Zocdoc that was just aggregating all this information? And that made sense — I think it made sense to a lot of people because I raised a million dollars on that concept.

So then when we launched it and no one went to class, that was really hard for me, because that was my mission. My mission wasn't to build just a tech website that looked nice and had all the information — it was to get people to go to class and pursue their passion and fall back in love with a hobby like I had with dance. I realized we weren't creating that impact, and so when I came to terms with that, I decided that we should pivot.

Shontell: So before we get to the pivot, though, let's talk about: You leave Warner, you join Tech Stars. How do you get into Tech Stars? Tech Stars is this accelerator program where startups would apply, and it was really rigorous. It was hard to get into. David Tisch, who was a big venture capitalist in the New York area, was running it. How did you wind up there doing this?

Kadakia: I had this idea brewing in my head, and the vice chairman of Warner Music Group, Michael Fleisher, called me. He was like, "Why don't you come to my office? I'd love to hear about this." I'd maybe met him three times in my three years there. I ended up spending two hours explaining to him what I wanted to build. And he was like, "You know what? I love this." He became my investor, and he also was one of the mentors in the Tech Stars program. He emailed David Tisch that day, and to me, it was about relationships. I know I did the application and all of it. I really truly believe, though, I got in because people referred me.

And I always tell entrepreneurs this: Yes, it's about your application — they're going to get thousands — but find a way to really get a good reference. Right? Or get someone to support you into the program. I know I had a lot of people who were vouching for me being like, "I believe in Payal, I believe in this idea," and I really believe it's because of that.

Shontell: This company that you're building in Tech Stars, Classtivity, it's an OpenTable for classes. You could go on and you could see, OK, I want to take a Pilates class, here are the places and the times.

Kadakia: It was: be active and be creative. It had fitness stuff on there, it also had creative stuff on there, like cooking classes and photography. Basically, you could go on, you could search by genre, then you could pick the time, and then you could pick the location, and then we would show you the schedule.

Even though this was a different product, it actually helped us during that time build all the integrations into getting all the schedule data. It wasn't easy to do that — I mean, there's so many classes happening all day long, and we were trying to pull in the feed of information to say, "Here's all the up-to-date information on what's available at every given time." Even though it was a phase at the company where the product didn't work, it actually did help us build a lot of the scheduling integration that we need to on the back end.

Raising money for a startup

Payal Kadakia ClassPass

Shontell: So Tech Stars has this demo day. You're presenting to a room full of investors and journalists and things. I was in the audience listening to you present.

Kadakia: It was so long ago.

Shontell: What happened after that? Does the money come easily? Was it a bit of a slog? I know you had two different cofounders, I think, at the time.

Kadakia: When you have the hype of something like Tech Stars, it definitely gives you some clout. But at the end of the day, we didn't have the numbers at the time. It was a moment for me to go back to my mission, and I decided we would let go of certain people. We would focus the company on pivoting and iterating, which was a hard decision to do but what was the point of keeping a product up and funding that when it's not working?

Shontell: Because people weren't booking classes, or there were no users, or what was the problem?

Kadakia: They were coming and looking at the schedule data, but they weren't actually purchasing the classes, so they weren't actually going to class, and we kept changing the buttons. I think the day I knew, we sent out an email saying, "Go to class for free," and still no one went. I think the most transformative companies are ones that actually change human behavior, and so while I had made it easy to go in search, I hadn't motivated anyone to go to class.

Shontell: OK, so you decide you need to make this change, but you raised a little bit of money after Tech Stars and then, I think — according to Crunchbase, at least — two years later, you raised your next round.

Kadakia: During that first year and a half, we raised roughly around $1 million-plus after Tech Stars. I mean, we were good about our burn, right, so I had enough cash in the bank. That was one of my important points to even my team, like, "Wait, why are we switching?" It's like, "We have money right now." The worst thing you could do is wait for it to run out with the wrong product. We actually had enough stamina and enough funding to go through the next year, but it was more of: Are we going to make the hard decisions to get and build the product that was going to get us to the next round of funding?

Why joining a startup accelerator was a huge help — and the secret to getting accepted into one

Classpass Payal Kadakia 2782

Shontell: You guys start building this other product and you run a promotion, right? And something changes.

Kadakia: What we ended up doing is, OK, let's go talk to these studio owners and figure out what they wanted, and what we realized is a lot of them were offering the first class for free. So what we did was we packaged up the first classes for free and built a product called the Passport, which was a one-month offering where people could go and try all these first classes for free as a new customer.

The bet we were making is, OK, people are going to do this and then go back and buy a package at these studios. So we were collecting ratings and reviews on every single rating and class that you went to. My internal benchmark was 70% of people who gave something a positive rating would go back, and we weren't seeing that. We were seeing like 10% to 15% of people go back, which, to me, was while it was great revenue for us and people were finally going to class and it was beautiful profit, it wasn't a good business model. I didn't want to build a one-month experience for my customers — I wanted to build a lifestyle where you stayed active and passionate. And for the business owners, I was actually not sending them any money, so when I fast-forwarded that, in terms of the business, in terms of the product, we had to make another hard decision of saying, "This is wrong."

When we actually looked at the data, we saw that so many customers were actually buying the membership over and over again with different email addresses, which gave us some sort of sense of maybe this is a monthly subscription. We also did a survey, and 95% of them said they wanted to do this experience over and over again.

Shontell: That was visiting different studios around you.

Kadakia: The variety was a part of the magic. We almost stumbled upon that. How important that was, and it wasn't just a one-month discovery thing — it was a part of people's way of life. You know, we had a meeting, and we were like OK, there's something here, and we decided to iterate and build this subscription model as well. We still have this search engine up, the Passport and the ClassPass model up at this time. And you know, the team, we all were sitting there, and we were kind of like, OK, what do we do? We started getting such positive feedback on this subscription. People were now emailing me with things that were about their life changing because of this product, and they felt confident. It wasn't even about, like, "I went and worked out," you know? It was something bigger.

I think as an entrepreneur and a founder who had been doing this for three and a half years, and I did it because of my passion for dance, I felt like I had given them dance, what dance was to me. In that moment, I just knew we kind of had hit that magic and that lightning that was going to be revolutionary for that industry.

Shontell: You all took this product out to studios without it even really formed. You said we're going to start doing this thing — it's going to be $49 a month? For unlimited classes?

Kadakia: $49 was 10 classes.

Shontell: For 10 classes. And you could do barre classes. You could do Pilates classes. Before, I think maybe the assumption was you're going to join a gym, or you're going to be into yoga, or you're going to be into barre.

Kadakia: Commitment to one studio.

Shontell: Right, but not combining — like cherry-picking what you wanted to do based on how you felt and how you wanted to work out that day.

Kadakia: And to be honest, technologically, it was hard to do it, because how are you going to look at all the information? And then also it just wasn't a concept anyone had really done. If you wanted to be a dabbler, you would probably have a gym membership because it was too expensive to do that, actually doing it for the studios.

Pivoting to ClassPass

classpass

Shontell: Talk about how you get the pivot off and running, how you talked to investors about it, how do you talk to your team about it, how do you plant the flag and say, "OK, guys, Classtivity was cool, but now we're going to be ClassPass, and we're going to do this whole new thing."

Kadakia: We had actually put ClassPass up before we changed our name. Basically what happened is we decided that we would try this other iteration, which would be the membership, which we launched in June 2013. Three months in, we started seeing this exponential growth of ClassPass. It was completely viral. We went from 35 users to like, 300, you know what I mean? In a matter of three months. That's exponential growth.

Shontell: You mean 35,000?

Kadakia: No, I'm talking about, like, hundreds. I'm talking about, like, really small numbers.

Shontell: Oh, wow, so actually 35.

Kadakia: Thirty-five people in our first month. I always say that to people, because people want these bigger numbers but we're building a subscription and a lifestyle, and you need to figure out what your numbers are going to be. For us, when we got to a thousand members, we were at a million-dollar run rate. So to me, that was what I was trying to get to, right? When you have a $100 subscription, that's what you're aiming for. What was so great is we saw the growth of ClassPass surpass the Passport and Classtivity as a search engine, and so what we ended up doing is in February of the following year changing our name to ClassPass, rebranding. We shut down the search engine. We took out the Passport. And I actually remember one of my advisers, Andrew Weinrich, he always would say to me, "Just get rid of the Passport"— he could see this. We kind of were like, "Well it's what gave us the variety, and maybe people want the Passport and then we'll do ClassPass." And he was like, "It's like crack to you guys. It'll be a chapter in your book." I didn't fully understand at that moment what that meant and now I totally understand what he meant. Sometimes you just have to be able to know that it's the wrong product and move on.

What was so great is we saw the growth of ClassPass surpass the Passport and Classtivity as a search engine, and so what we ended up doing is in February of the following year changing our name to ClassPass, rebranding. We shut down the search engine. We took out the Passport. And I actually remember one of my advisers, Andrew Weinrich, he always would say to me, "Just get rid of the Passport"— he could see this. We kind of were like, "Well it's what gave us the variety, and maybe people want the Passport and then we'll do ClassPass." And he was like, "It's like crack to you guys. It'll be a chapter in your book." I didn't fully understand at that moment what that meant, and now I totally understand what he meant. Sometimes you just have to be able to know that it's the wrong product and move on.

Shontell: What was the initial thing you offered to users as this new company?

Kadakia: With ClassPass, it was $99 for 10 classes. We had about 50 studios in New York City, probably, signed up at the time.

Shontell: $99 was a steal when you considered that a spin class around here in New York City, costs about, what, $30 a session at least?

Kadakia: Yeah. I mean, in the beginning, we weren't working with a lot of the top-tier studios. These were a lot of, like, I would say, studios that had a lot of excess capacity — weren't really big names. We got the big names as the product kept growing, which was also part of the fun war stories that we have. We didn't, in the beginning, have contracts with all the studios, but we realized that the brand names mattered, so we were fulfilling a lot of these reservations manually without any integrations, just to see — we needed to figure out what the customer wanted. That's the ultimate thing. That's what you need to do. You need to keep figuring out what the customer really wants, and we didn't know.

Serving 2 sets of customers

Classpass Payal Kadakia 2624

Shontell: You had the tricky job of having two sets of customers: You had studios that you have to make happy that you're partnering with, that you're paying checks to every month based on referrals, and you have people like me who use ClassPass and are signing up for classes and want the best prices. This a problem that Uber has, the same thing, with keeping drivers happy, keeping customers happy. It's very hard to balance the two. How did you figure that out, and did you ever make mistakes with it?

Kadakia: One of the things that was really important to me — it's actually something I studied at MIT — which was management of inventory and capacity utilization. We never wanted to cannibalize. We were trying to do is figure out where they had excess capacity, and that was something we built into the system from the beginning of saying, "We're going to make available the spots that you're not selling, so this is incremental revenue." That was a really important part of our value proposition from the beginning, and we also restricted how many times you could go to anyone's studio for that purpose as well. It was a matter of protecting — if you want to be a loyalist, we were like, "Please go sign up at the studio." This product is not for that person.

Shontell: You couldn't do all 10 classes at the same studio.

Kadakia: You can't. Right. That was part of the premise of getting you to say, "Let's just get people who actually were scared to work out," and we wanted to make it accessible for people to say yes so then obviously our partners would have more inventory utilized and the classes would be more energetic and full. That was really the premise it was started under and maintained under.

Obviously, as we grew, we had to keep figuring out what those inventory limits were and continue to build algorithms for our studio owners that kept optimizing their revenue, and we're still working on that. What's amazing is how much data we have to be able to now predict. If you change your schedule around, you would get this much more money. Those are the things that we can do for our partners now because we have so much data historically on how much their 8 p.m. class on a Wednesday sells out.

Keeping investors interested

Fritz Lanman Payal Kadakia Classpass chairman founder ceo

Shontell: How hard was it the first few years, and were investors actually interested in it? Did you find that it hard to pitch to them at first?

Kadakia: I think I had a lot of people who were like, "Payal, we love you, but product's not there," or "Business is not there." I never gave up, though. I think as a founder and entrepreneur you just keep hustling through it. I knew I'd figure it out, and as long as you don't run out of money, which is the No. 1 key, that's like your right to keep going. You have to keep making hard decisions. Like, I remember I needed a bridge round, and people were like, "Of course," because they were seeing —

Shontell:— explain what a bridge round is.

Kadakia: I needed an extra $300,000 to stitch between where I was with my capital and where I wanted to go, and I wasn't ready to go into a big round. And so it was awesome because I think people were just like, "Your progress!" I always say investors invest in lines, not dots. I was giving them so many dots that were so much better than the last time I had seen them, and I was keeping people in the loop. For me, the reservation number and our revenue trajectory — I remember just sending charts and the hockey stick to people. So many of my investors, I remember when they were like, "When you texted me that, it was like, oh my God."

I remember sitting down with Hayley from Birchbox, and I was like, "Here's what it looks like." She was just like, "Show me that again." I feel like that was when I knew we had cracked something that was really special. That was January 2014.

Shontell: I had investors emailing me saying, "I've seen you write about Payal before. Do you know her, and can you intro me?" You had a serious demand that cooked up. VCs are like, "Oh, what's the next shiny thing? I have to get into this hot deal." You were — you became that hot deal. What was it like when you hit that inflection point? Do you notice a change? How do you deal with that as a founder?

Kadakia: I did notice the change. I remember going out to raise my series A and ending up with multiple term sheets when I had gone to Silicon Valley probably four times at that point and coming back with nothing. This is when I met Fritz, and I was like, "Fritz is the type of person I want involved in my company."

Shontell: Fritz Lanman is your now CEO.

Kadakia: He's the CEO of ClassPass. It was one of those moments when I met Fritz I knew he believed in my mission. I was meeting all these people who I know were now chasing me because they saw traction, but I didn't know if they believed in my mission. It's really hard to figure that out in three days when everyone's like, "Let's sign a term sheet tomorrow." I had that struggle, and I remember Fritz and I chatted about it. He was very much helping me with the fund raise. I was like, "I just don't know if I trust any of these folks. I don't know them, and I want the chance to get to know them." I had multiple data points with them, the same way they have multiple data points on me — it didn't feel fair. Fritz was like, "I think I can get you the capital," so he ended up leading my series A and getting more involved in the company, and I said no to some really great people who actually got involved in the company in later rounds because I had enough data on them.

How ClassPass figured out how to price its product after a few stumbles that made users scream

Classpass Payal Kadakia 2619

Shontell: You've had to make some tough decisions throughout the course of the company's growth and history. One of them is the pricing has changed. That hasn't always been well-received by users. There's been some screaming on Twitter and things like that. There was this $99 beautiful price point for a long time where — was it unlimited classes, or am I making that up?

Kadakia: It was unlimited for a bit.

Shontell: For $99, you could get unlimited classes. People were going to literally a class every day sometimes. It was a huge discount. Like I said, $30 could get you one spin class, normally, and then you changed prices sort of seemingly out of the blue. How did you make that decision, why did you make it, and were there mistakes made?

Kadakia: It was $99 for 10 in the beginning, and we were getting data and people were only going to five. That was, like, the original number. And it was this amazing thing where my CFO and I would always chat about this. He was like, "People die for engagement. We have too much engagement now."

It was this interesting thing where everything I had set out in the world to do, from this moment I started this company, was coming true from a product and consumer perspective, but it was breaking the business, right? In the sense of, we didn't know how much people would work out. No one had ever done this before. I had no blueprint. The only way to actually test this was in a real-life test.

And so the first thing we did is we increased the price. We didn't know where usage would settle, and it wasn't the right price, and then we actually realize as we were increasing price of unlimited I was shutting out a part of the market that I actually wanted in the market. This product was meant for people to be accessible, and we were making it less accessible over time, so then we started launching the lower tiers. And as we started launching the lower tiers, the unlimited tiers deteriorated even more in terms of its profit.

Shontell: By lower tier, you mean a cheaper amount for fewer classes.

Kadakia: Exactly. Some people, they were like, "I want to go to class," but they were like, "I can do this for $50." But when unlimited started going, we had to keep increasing the price on that — the value proposition was changing, and the type of customer was changing. That's when we saw the success of the lower-tier products and we were like, "OK, these are great," people love them as much as they love the unlimited product, and so we had to make the hard decision to sunset our unlimited plan.

But that being said, we also made sure that — two things I would say: We made sure that we grandfathered a lot of them into having 10 classes per month because we wanted them to keep trying it, and we also introduced bundle so you could keep going to class. And we made the UI as simple as possible, and we just launched video on demand, too. That was a very important thing for me as a founder to be like, "We're going to give you a way to work out every day," because that's what our premise is. We don't want to say, "To be fit, you need to have lots of money." That is not the premise we started the company under.

Shontell: You go through all this. You've changed the price. You figure it out. You've iterated. And how many markets are you in?

Kadakia: We're in 39 cities globally.

Shontell: OK. And how many users? Can you share any metrics?

Kadakia: We're past 30 million reservations since we launched ClassPass, so 2013.

How to combat a bunch of copycats that undercut you on price

classpass payal

Shontell: That's tremendous growth. So much so that a slew of copycats came out.

Kadakia: Yeah. That was an interesting phase.

Shontell: There's all these people. So how do you deal with that as a founder when you've got something successful that's working, that's hot, and then all these copycats come out and undercut your price, or try to?

Kadakia: It was an interesting phase in the company. I believe you win the race by looking forward, not behind. It became a little hard. There was this phase where I feel like every day I would get to my desk and the team was talking about it, and people were talking about it, and so we were like, "Alright, this is ours to lose." That's how I felt. I think we kind of knew we had to kind of take on the market and expand rapidly, and we did that. We went to 20 cities in a matter of six months.

Shontell: Wow.

Kadakia: Yeah.

Shontell: Are you guys making money?

Kadakia: We're on track to be profitable.

Shontell: How do you balance that? How do you balance how much to charge someone versus what it does to your bottom line, and how do you decide when to toggle things?

Kadakia: I think we've now priced our product in a way that is sustainable for the company and it's great value for our customers, and at the same time we're also innovating on the partner side to partner with them in terms of dynamic pricing. We've always had this one payment, one price for every class that we've paid the studios. We've also started figuring out what are ways we can drive them more traffic with different prices, so we're also experimenting on that side of it, but at the end of the day, for us it's really — we've now realized what the usage sort of looks like on the plans that are capped, which are easier than having, obviously, an unlimited number of classes that you can go to.

Shontell: One other thing: As you are growing, a lot of people ask the question of Groupon. They say this has been done before, where you get this great bargain to go into a new place. Groupon did it. It was very successful for a while. It went public, and then all of a sudden it didn't work. Was that a fair comparison to make, or did you guys take anything that Groupon did and learn from it?

Kadakia: The member we were marketing to was somebody who was scared to walk into a fitness studio. They didn't know the price of a class. Yes, it's good that a lot of people do, but actually, the market we were actually creating were people who had really never done this before. We wanted to make sure that this was seamless, easy. We were dealing with the excess capacity, not your prime-time spots that we're going to push out your loyal customers. That was something that we thought about from the beginning. And the other thing we thought about was the lifestyle of it.

How a CEO decides to stop being CEO

Payal Kadakia ClassPass

Shontell: Recently you made the tough decision to not give up your baby — you're still very much involved in ClassPass — but you did step away from the CEO role. How did you arrive at that decision?

Kadakia: I think founders, as they go through their company, the founder/CEO role just fundamentally changes. One of the comparisons I always love to make is dance companies have an artistic director and an executive director, and they're not the same person. I'm a very creative person, and I think about my product from that place of creativity and wanting to improve people's lives. I went to MIT, I worked at Bain, but my magic is in my artist side, and I kept feeling like I was pushing away from it. And that's actually what built this company. Every single day, I was getting further and further away. You have to build a team to be able to go back to that, and that's like one of my advisers always said: "Your freedom to create lies in people." I looked around and I was like, "Who are the folks that I have around me?" And Fritz and I have had such a great relationship, and I trust him 100%. He knows exactly what I want to build. I don't know if I would make the decision if it was anyone else. And so it's been great, and he's been such a great partner, and I love what I'm doing now.

Shontell: It's got to be, still, a hard, emotional decision to make. This is a role that you're stepping back from when you've had it for years. You've grown this thing from the ground up. The CEO title, there's something that comes with that.

Kadakia: The impact we have on people's lives to me is more important than any title anyone can carry and the one thing, the only thing, and I thought a lot about this was: I want little girls to believe that they can be CEOs. The best thing I could do, though, is be an empowered female and authentically doing what I love. That's the message I want to send, not "Go and do things you don't like because that's what the world needs," right? To me, I will be a stronger person if I'm moving forward, doing the work I want, and continue to drive force the purpose that I want to create versus doing what other people think I should be doing, which is never a way to live.

Shontell: What you're saying, too, is that the role of CEO changes as your company changes. It's very different when you're starting out to when you have hundreds of people that you're managing. What were some of the things that you found that you didn't like?

Kadakia: I felt like my day just became a lot of meetings, and I wasn't finding time to actually brainstorm and build my product and think creatively about what we were building and take those chances on innovation. And I knew I was the lifeline to that — if that made sense — and I wanted to free myself up to do it.

Shontell: What are you doing now day to day? What's the role of executive chairman?

Kadakia: I think it varies for every executive chairman that's out there. I think as founder, for me it's about focusing on the product and the member experience. We just launched some really cool stuff. Now you can go back to studios like the small premium, there's a video product that we just launched, and that I'm continuously focused on and what we're going to be doing in the digital era, which is so unbelievable and growing right now. Just how — we were just talking about this — how digital and video is becoming such a prominent part in people's lives. I think there's a really great big fitness angle and a platform angle for ClassPass to have there.

Shontell: Are you going to stick cameras in studios and let people stream it at home or what kind of videos?

Kadakia: We're exploring a lot of things. I think the No. 1 thing I would say is our vision is to make that studio experience come to your home because it's really important. We know how great these studios are, and not everyone can access them. I think this is a part of who we've always been. It's great for the New Yorker who's next to five barre studios and two spin places, but what about someone who's in the middle of Idaho? They can't do it.

Shontell: As really a first-time tech founder, what were you surprised to learn, and what was the hardest part?

Kadakia: Some of the things that I've fallen in love with, which I think I wasn't expecting, were things like UX and design. I actually think it's such a new field that five years ago I don't think people were studying user experience, right? I think it's so cool that we have to now think about what's going on in the screen. Every inch of it kind of matters, so that's just been interesting for me as a founder to dive into.

I think being in New York and building a company here was a complete, interesting learning lesson, and to be honest, to see the New York tech scene completely change and transform over these five years — I couldn't count the number of entrepreneurs I knew on my one hand five years ago. Now it's unbelievable how many people there are, and everyone's working at startups.

Join the conversation about this story »

NOW WATCH: We drove a brand-new Tesla Model X from San Francisco to New York — here's what happened

How 2 startup founders with no product, no users and no real proof their company would work raised $3 million — then built a company worth $1.3 billion

$
0
0

Success How I Did It podcast

Vlad Tenev, Baiju Bhatt, robinhood, sv100 2015Robinhood is a commission-free stock trading app that was recently valued at $1.3 billion. But when the company was first starting, there was very little proof the founders could pull it off.

Vlad Tenev, cofounder and co-CEO of Robinhood, says his app could not get regulatory approval without having a sizeable amount of funding from venture capitalists. But most venture capitalists didn't want to give him money, because he had no product.

"So there are capital requirements, which also make it more difficult than launching a typical startup, because there's a little bit of a catch-22 situation,"Tenev explained in an interview for Business Insider's podcast, Success! How I Did It."Investors want to be sure that you're going to get that regulatory approval before entrusting you with the capital, but you need that capital to get the regulatory approval."

To round up the cash, Tenev and his cofounder did a lot pitching. He estimates 75 venture capitalists turned them down before they were able to raise their first $3 million. 

Here's the relevant part of the podcast, explaining how they pulled it off:

Tenev: The people that invested in the company at that point were making a big bet on the founding team, on Baiju and myself and on this idea that was pretty unproven at the time, of us actually being able to acquire customers organically through word of mouth and actually deliver this product.

Shontell: So, like, a Marc Andreessen invests in you with no product, no financial approval yet, and no wait list. This is a pretty big gamble. Investors don't usually do this. You must have had one heck of a pitch.

Tenev: I think it was actually pretty challenging early on. There were a lot of people who just didn't believe in it, and we had to bang down a ton of doors, and we were really relentless. We probably knocked on 75 doors before we actually made it work.

Shontell: Wow, so 75 venture-capital doors slammed in your face?

Tenev: Yeah...Well, I think what really attracted a lot of our individual angels to Robinhood was this idea that you're doing something very important, and you're doing it in a new way. And it was a little bit rebellious, but rebellious in a good way in the sense that the financial industry over the past several decades has just not earned the trust of consumers, especially in our demographic. I mean, they've been actively ripping off consumers.

You look at 2008 where we bailed out the banks, and the middle class, in a lot of ways, got stuck with the bill, and then in the years of the recovery since then, 90% of the returns have accumulated to the top 1%. It feels very, very unfair, and the margins for these services, which used to be brick-and-mortar but are now completely electronic, are way too big. The margins of financial-services companies are astonishingly large relative to what's actually going on, and what that translates into is almost literally they're taking money out of your pocket and putting it in theirs.

As part of this latest funding announcement, we released some numbers about the business, and the one that I'm most proud of is that we've taken half a billion dollars, over $500 million in saved commissions, and put that money back into customer's pockets.

Check out the episode with Tenev explaining how he built a $1.3 billion company by age 3o, below.

And subscribe to "Success! How I Did It" on Acast or iTunes. Previous episodes include:

Join the conversation about this story »

NOW WATCH: This is Apple’s best iPad ever — here's why


LeBron James and Sheryl Sandberg reveal secrets that helped them crush their careers on Business Insider's podcast, 'Success! How I Did It' — Here's how to subscribe

$
0
0

Success! How I Did It Banner BI Graphics

sheryl sandberg VT"Success! How I Did It" is Business Insider's podcast hosted by U.S. Editor-in-Chief, Alyson Shontell. Shontell interviews successful CEOs, entrepreneurs and business leaders about how they built successful companies, and the career paths that took them to the top. 

Shontell has interviewed a range of people, from Sheryl Sandberg to LeBron James, the founder of Tinder to the founder of Buzzfeed, and many more. An archive of all of our episodes can be found on Acast and iTunes. We're also on every major podcasting app if you do a quick search, including Overcast.

Each interview is about 30 minutes or less, so they're a great way to pack your commute with business advice and inspiration.

How to subscribe:

We have more great interviews lined up so don’t forget to subscribe to the podcast. Once you subscribe, you’ll be notified when we add a new episode and you won’t have to worry about missing the next big interview. To subscribe, search for “Success! How I Did It” in iTunes' Podcasts (left) or Acast's (right) app, then click the “Subscribe” button.

How to rate us and write a review: 

Once you’ve subscribed and listened to the show, let us know what you think. Go to the “Reviews” section of the Apple Podcasts’ page then click “Write a Review.” We care about your feedback, and positive ratings really help us continue to make the best podcast for you.

If you want to talk to us about the show or suggest possible guests, you can reach out to us by emailing amazarakis@businessinsider.com.

SEE ALSO: The founders of Robinhood, a no-fee stock trading app, were initially rejected by 75 venture capitalists — now their startup is worth $1.3 billion

SEE ALSO: Dropbox founder reveals how he built a $10 billion company in his 20s — even though Steve Jobs told him Apple would destroy it

Join the conversation about this story »

How two founders got nearly 1 million users for their app before it even existed

$
0
0

Success How I Did It podcast

robinhood 2017

All founders hope that people will actually use their product once it is created.

Vlad Tenev and Baiju Bhatt, the co-founders and co-CEOs of Robinhood, discovered that people wanted to use their product before it even existed. 

After launching a website for the future product on a Friday night, the founders of the commission-free stock trading mobile app woke up on Saturday morning to find that the website had gone viral. 

"The last thing from our minds when we launched Robinhood, the initial website, was that it would blow up overnight,"Tenev said in an interview for Business Insider's podcast, Success! How I Did It. "Up until that point, we never really had an idea of what success, at least in the consumer space, was like. That was sort of the first moment where we built something that actually worked."

Thanks to attention from an anonymous post on Hacker News, the yet-to-be-developed app had about 10,000 people sign up for a waitlist on that first day, 50,000 by the end of the first week, and almost one million in the first year. 

Check out the episode with Tenev explaining how he built a $1.3 billion company by age 30, or keep scrolling for a transcript of how he attracted ~ 1 million early users.

 And subscribe to "Success! How I Did It" on Acast or iTunes. Previous episodes include:

Here's the relevant part of the podcast, explaining how they did it:

Shontell: I want to go to you launching a website first before you even had an app. From what I understand, it was more or less an overnight success. You basically put up a website and then had all these people suddenly on a wait list when you woke up...What did the website say?

Tenev: It had a description in very simple language saying, "Commission-free trading, stop paying up to $10 per trade." And then there was a button that let you sign up, and then when you signed up, you put in your email, and you would join this wait list where we would actually show you: There's this many people ahead of you, this many people behind you.

This has become a relatively common thing since then. I think a lot of that has to do with how well our wait list did, but we were actually inspired by this other product that launched about a year before called Mailbox.

I remember distinctly it was a Friday night. We had been working on the wait list in preparation for our press launch, which would have been, I think, the following Wednesday or Thursday. Everyone goes home, and I wake up Saturday morning, and I open up Google Analytics, and I see something like 600 concurrents on our site, which nobody knew about at that point. I was just like, "What's going on? This is not normal. Something must be wrong." Right?

And I'm looking at the analytics — I see a lot of traffic, or the majority of it, coming from Hacker News. And I open up Hacker News, and I see No. 1: "Chinese Land Spaceship on the Moon," No. 2: "Google acquires Boston Dynamics, the Robotics Company," and No. 3 was: "Robinhood: Free Stock Trading." So, first of all, I was like, "Oh man, No. 3 on Hacker News? This is sort of like every engineer's dream in the Valley, right?"

Shontell: Hacker News is really big, especially on the West Coast within the tech community. It's kind of how you find cool things that are bubbling up, big stories that are breaking in tech. How did you get on Hacker News? Who put you there?

Tenev: We have absolutely no idea, and we've tried since then to get to No. 1 on Hacker News, and people at Robinhood I guess don't have a ton of karma, which is your Hacker News cred that helps. But both times we've been to No. 1, it's been a completely random person that we just have never been able to identify.

My second thought was there's no way we'd get up to No. 1. I mean, the Chinese just landed on the moon and Google made a huge acquisition, so we probably have to settle at No. 3. But 20 minutes later we get up to No. 2. Maybe 15 minutes after that, we're at No. 1 on Hacker News.

I'm just screenshotting the page; I'm calling my parents saying, "Oh, this is crazy. It might actually be working." And up until that point, we never really had an idea of what success, at least in the consumer space, was like. That was sort of the first moment where we built something that actually worked.

Maybe about 20 minutes after that wore off, we realized, "Crap. None of the emails are wired up. The website's broken." And everyone just had to go to the office to staple everything together — make sure things were up, emails were getting sent. We ended up de facto doing our press launch on a Saturday, which every single person I've talked to in the PR world has told me was, like, the worst move you can possibly make.

Shontell: Absolutely.

Tenev: But we ended up getting 10,000 sign-ups that first day, over 50,000 the first week, and almost 1 million in the first year.

Shontell: And do you think it was just the idea was exciting? That's been done before. Are there any other platforms that don't charge you a commission other than yours?

Tenev: Not to my knowledge, and some people have promotions like your first five or 10 trades are free. That's been tried before, but I think what allows us to offer unlimited commission-free trading was a technological step change and the ability to attract a customer base organically in a space where customer acquisition has been entirely paid-advertising-driven.

Shontell: ...How many people did you get on this wait list before you actually revealed the app?

Tenev: We had almost 1 million.

Shontell: And how many months was that from the time the website went up to the app coming out?

Tenev: The app fully launched on the App Store in March of 2015, so about two and a half years ago. The time between announcement and public launch was almost a year and a half.

SEE ALSO: The founders of Robinhood, a no-fee stock-trading app, were initially rejected by 75 venture capitalists — now their startup is worth $1.3 billion

Join the conversation about this story »

NOW WATCH: 5 scientifically-proven things that can make you less attractive

How Box's founders got Mark Cuban to invest in their startup while they were still in college — without ever meeting him

$
0
0

Success How I Did It podcast

Mark Cuban

Convincing investors to pay attention to a startup is not easy, especially if you're a college student and you're trying to attract high-profile investors like Mark Cuban. 

For Aaron Levie, now the CEO of cloud-based file-storage company Box, an early investment came by trying to get press.

Cuban had one of the most popular tech blogs – blogmaverick.com – when Box was founded in a dorm room in 2005. After Levie sent the Dallas Mavericks' owner a cold email asking him to write about Box on the blog, Cuban decided to do something even better. 

"He became interested in investing in the company, and we had never even met, but he did full due diligence, and then our first time meeting him was at a basketball game,"Levie said in an interview for Business Insider's podcast, "Success! How I Did It." 

Here's part of the pitch email Levie sent to raise Box's angel round of financing, which he shared on Twitter.

aaron levie angel investment email box The "Shark Tank" star ended up investing a few hundred thousand dollars, according to Levie, which was enough to convince him and his co-founder, Dylan Smith, to drop out of college and focus on the business full-time. 

Check out the episode with Levie explaining how he took Box public by age 29, below, or keep scrolling for a transcript of how he attracted Mark Cuban with a blind email.

Here's the relevant part of the podcast, explaining how they did it:

Shontell: One thing you said in there that's really interesting is that Mark Cuban was an early investor, and he invested blind, right? You two had never met, yet somehow you tracked down his email. What was it like hustling to get Cuban involved? You were kind of the first startup in "Shark Tank," I guess you could say.

Levie: You know, if you want to credit us with that, that would be awesome. I'm sure there's somebody who came before us, but it was actually really random.

Back in 2004 and 2005, Mark had one of the most popular blogs on the internet, and it's still his blog today, Blogmaverick.com. We were just pitching him to have him write about Box, through a set of conversations over email. He became interested in investing in the company, and we had never even met, but he did full due diligence, and then our first time meeting him was at a basketball game — you could think about it as our first official board meeting, which was, you know, pretty thrilling. And that investment was a few hundred thousand dollars. We decided to drop out of college and then go and kind of focus on this full-time.

Shontell: What was the product at that point?

Levie: It was incredibly basic. It was called Box.net, and it was a really easy way to upload your files to the internet and be able to access them from any device and be able to share them with anyone.

Soon after we got Mark's investment, we opened up the service to give you a whopping 1 gigabyte of free storage, which was pretty groundbreaking at the time, in 2006. But the idea was: Hey, let's give everybody a 1 gigabyte of free storage, and they will eventually pay us. I think it was something like $5.99 or $4.99 a month to be able to buy more storage space. Obviously, eventually we pivoted the company, but the core was always about making it so individuals could just easily access their files from anywhere.

SEE ALSO: 'I was having nightmares for a few weeks': Box CEO Aaron Levie reveals how hard it was to build a $2.5 billion business and take it public by age 29

Join the conversation about this story »

NOW WATCH: This cell phone doesn't have a battery and never needs to be charged

What it’s like when someone offers you $600 million, and you say no

$
0
0

Success How I Did It podcast

BOX_Aaron Levie 5960

Aaron Levie dropped out of college to start Box, a cloud-based file storage company for enterprises that is now publicly traded. But six years in, Levie had an opportunity to sell his business.

Citrix offered to buy Box for ~$600 million. Levie and his cofounders ultimately declined the offer. 

But the process was emotionally grueling and the decision haunted Levie for a long time. 

"It would have been a great financial outcome for early employees and investors, so that was very difficult to think about," Levie said in an interview for Business Insider's podcast, "Success! How I Did It."

"On one hand, you had a guaranteed outcome, and so you could take all of the risk off the table, and it was staring you right in the face. On the other hand, you had really an improbabilistic outcome...all of these things where the odds were against us.'"

Levie got advice from other founders who had faced similar situations. Some told him to sell; others told him not to give up a business he loved.

Finally, he and his co-founders — Dylan Smith, Jeff Queisser and Sam Ghods — holed themselves in a hotel room for 24 hours to deliberate. They left still conflicted, but eventually decided to stay the course. The weeks that followed were tough. 

"As soon as we made the decision, we were freaking out for months," Levie recalled. "I was having nightmares for a few weeks after: 'Did we actually make the right call? We can never now go back on this. We're pretty locked into the current path.' It was a scary decision."

Fortunately, Levie made the right choice. A few years later, at age 29, he  took Box public. It now has a market cap of more than $2 billion.

Check out the episode with Levie explaining how he built Box, below, or keep scrolling for a transcript of how he decided not to sell it for $600 million.

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

Here's the relevant part of the podcast, explaining how they made the difficult decision:

Shontell: You went on to make Box a very large company, and to help you do that you raised a ton of money, and you had a big offer from Citrix at one point to buy your company for about $600 million. Your board really wanted you to sell at that time, but you didn't want to, and you resisted.

What's it like as an entrepreneur when something like this happens? You have this opportunity to exit, your board is pushing you to do it — what was the thought process, and how did you work through that?

Levie: It was definitely a struggle, and I think the board was probably a little bit more mixed, so I don't want to necessarily paint it as the board was firmly on one side versus my decision. It was a pretty complicated process because we were still relatively young and early in our growth, and so we didn't have a lot of data points to extrapolate out and imagine what Box was going to be in five or 10 years from that point. And so we had very little data to go off of. We were in a very still-competitive market with companies a hundred times larger than ourselves, and so in many respects, it was a very attractive opportunity.

It would have been a great kind of financial outcome for early employees, for investors, and so that was very difficult to think about. Because, on one hand, you had a guaranteed outcome, and so you could take all of the risk off the table, and it was staring right at you right in the face. And then, on the other hand, you had really an improbabilistic outcome, which is, like, OK, we're going to somehow go from being a $20 million revenue company to hundreds of millions in revenue, and survive all the competitive landscape that we're dealing with, and continue to build a culture that we care about and want to be a part of, and all of these things where the odds were against us. And it was a couple months of really debating that and struggling it.

I called a lot of mentors and founders who had either sold their company or not sold their company, and tried to understand why they went either direction. I was getting advice from lots of different, great founders and leaders, and the advice was sort of all across the spectrum. Some people said, "Totally sell — you're never going to get a better offer than this." And some said, "Hey, when you have an opportunity where you can keep doubling down and growing something that you love to be a part of, don't kill that opportunity."

Ultimately what happened was the four founders did an offsite, where we holed ourselves up in a hotel room for 24 hours and we decided that we were not going to leave until we had the answer of what we wanted to do. We still didn't have the answer at the end of the offsite, so that didn't end up working out fully, but within about a week or two, we concluded that we didn't want to sell. We wanted to keep doubling down, and we wanted to give this a shot.

The conclusion was when we thought about all the things that we had yet to do and what we still wanted to accomplish. Those dramatically outweighed the value of the money that we would get and the risk mitigation we would get by selling.

As soon as we made the decision, we were freaking out for, like, months. And on one hand, we were pumped up: "OK now, we know we definitely want to build an independent company." But on the other hand, we're like, "Holy s---, what did we just do, what did we turn down?" I was having nightmares for a few weeks after: "Did we actually make the right call? We can never now go back on this. We're pretty locked into the current path." It was a scary decision.

SEE ALSO: 'I was having nightmares for a few weeks': Box CEO Aaron Levie reveals how hard it was to build a $2.5 billion business and take it public by age 29

Join the conversation about this story »

NOW WATCH: This cell phone doesn't have a battery and never needs to be charged

5 years ago, 2 roommates launched TheSkimm, a newsletter now read by 5 million people and former presidents — here's how they hustled to success

$
0
0

Success How I Did It podcast

The Skimm founders CEO Carly Zakin Danielle Weisberg

TheSkimm launched five years ago, on July 21 2012. Business Insider wrote the first article on the company ever. We sat down with founders Carly Zakin and Danielle Weisberg a few months ago to catch up on their last few years. They explained (the incredibly hard) way they launched and grew the company. 

Carly Zakin and Danielle Weisberg cofounded theSkimm, an email newsletter sent to 5 million subscribers every day at 6 a.m.

TheSkimm picks the most important new stories of the day and tells readers what they need to know in a conversational tone that's full of millennial lingo. Loyal subscribers include Oprah and Hillary Clinton's former campaign manager, John Podesta.

The business was far from easy to build. Zakin and Weisberg quit jobs at NBC only to get turned down by "hundreds" of venture capitalists, who saw no value in creating an email company. Together, the pair went into credit-card debt, which they say they finally paid off just last year.

We sat down with Zakin and Weisberg to talk about their battle stories, how they eventually got investors on board, and how theSkimm took off, all on this episode of "Success! How I Did It," a Business Insider podcast hosted by US editor in chief Alyson Shontell that explores the career paths of today's most accomplished and inspiring people.

Subscribe to "Success! How I Did It" on Acast or iTunes. Check out previous episodes with:

The following transcript of the interview has been edited for clarity and length.

A post shared by theSkimm (@theskimm) on

Alyson Shontell: Carly Zakin and Danielle Weisberg launched theSkimm, a morning email newsletter, in July 2012. Business Insider wrote the first article about it back then, and today the newsletter has over 5 million subscribers, including Oprah and Hillary Clinton's campaign manager, John Podesta, as we learned last year after WikiLeaks' publication of Clinton's hacked emails.

To start, I wanted to go back to 2012 and even a little before that. You met as students studying abroad in Rome. You both worked at NBC and then quit to start a newsletter. Tell me about that process.

Danielle Weisberg: Thanks for having us — it's exciting to be back here. You wrote the first article about us, so it's a lot of déjà vu. Carly and I met studying abroad in Italy. We had a great time and didn't think about what we were going to do later on. We had really similar backgrounds. We're both storytellers, we love journalism, we love news. It was our passion.

We started interning for NBC news as soon as we could and we grew up in that world. NBC was our universe — we always wanted to work there. We worked our way up the ladder from intern to full time, and then we were producers, and between the two of us, we worked in pretty much every news division they had.

We were roommates in an apartment in New York, and we would come home to each other every day and talk about two things.

One, as clichéd as it sounds, we were very much having a quarter-life crisis. Being 25 and 26 and loving what we were doing but wanting to move up and not wanting to hear that you have to get in line and wait 10 years for a position that might open. That was really frustrating as two people who loved what they were doing and wanted to do more of it.

The second thing was our friends who were smart and had great jobs and knew everything about their industries would come home and ask us what was going on in the world. That was our job. That's what we did for a living. We read all day long, and we reported on the news and our friends didn't do that. They had other things to fill their time with. It wasn't a matter of intelligence, and it wasn't a matter of interest; that's not what they were being paid to do.

So we wanted to create a news source that actually brought this audience that was exemplified by our friends, female millennials, who are smart and leading in so many ways, but didn't have a news source that they loved, and we knew that we could create that.

So the newsletter was never the be-all and end-all. It was the beginning to a very big empire that we knew we could create in harnessing the power of female millennials, and being their go-to source for information that really matters and can drive the big decisions that they're making in their lives.

Shontell: When you did this in 2012, it felt like newsletters had been there, done that. Daily Candy had been acquired for a ton of money; Thrillist, a popular guy newsletter, had been around for a few years. What made you think that newsletters were where it's at?

oprah TheSkimmCarly Zakin: It wasn't newsletters that we thought about; it was email. There was a beauty in how naïve we were. We didn't have a tech background. We didn't have a business background. It helped us not overthink things. We just thought — what's the best way to get in front of our friends? We went back and forth. Should we text them?

We were like, "No, the very first thing you do in the morning is you turn off your alarm, it's on your phone, you grab your phone, and you literally open your email to be like, Did someone die? Am I getting fired? or Is my boss yelling at me? and What did my friends send me? And we knew we had to be in that moment. One of our friends worked in finance, and she left for the office at 5:50 in the morning every morning. So we were like, we gotta get it out to her on that commute. So we chose 6 a.m.

A lot of the hallmarks of what theSkimm is about, that one-eye-open routine, we call it. Being in that moment and being there at 6 a.m. happened because we were just thinking about our friends' daily experiences. We weren't overthinking it. We weren't like, let's A/B test this. We didn't even know what A/B testing was.

When we started theSkimm, we started meeting with investors, industry experts, and everyone was like, email is dead — this is a really bad idea. But they would email that to us.

And we would just laugh at it because we're like, you're saying email is dead, but you're emailing that to us. And we both still read email every single morning. Obviously, since then, we've seen a resurgence of email newsletters, and a lot of that, we've been told, is credited to what we've done.

But for us, I think we've talked so much about all the things we didn't know. We haven't spent a lot of time talking about what we did know. And what we did know is that we knew how to talk to this audience, who they were, and we also knew that we were not starting an email newsletter company. We knew email was a marketing tool.

'We made a list of all of the investors, angels, and seed funds, and we would turn anyone who said 'no' red — then the whole list was completely red'

Danielle Weisberg and Carly Zakin, The Skimm

Shontell: Talk about quitting your jobs at NBC. Because you did that and bootstrapped for a bit, right? You said just now there wasn't a ton of investor interest, you were first-time founders with no technical background. That's everything that makes a venture capitalist run away.

Zakin: Yeah, everything that would make you not think "This is a good idea."

Weisberg: It's funny when people ask that, because they're like, "Oh, you decided to bootstrap it." And we're like, "We didn't 'decide.'"

Zakin:“Bootstrap” is such a generous term because it makes it seem like we had money to bootstrap. We worked in media in mid-level jobs. We had just over $4,000 between the two of us. We lived in a rent-stabilized apartment downtown and agreed to go into credit card-debt together.

'Bootstrap' is a generous term. It seems like we had money to bootstrap. We worked in media in mid-level jobs. We had just over $4,000 between the two of us. We lived in a rent-stabilized apartment and together agreed to go into credit-card debt.

We just both paid off our credit-card debt in the last year or so, and it was a huge sacrifice, that even looking back now I'm like, "I can't believe I made those choices." Because it sounds so unlike myself, it sounds so unlike Danielle.

Weisberg: The other part, too, is people hear our story now and they think about it as two women decide to quit their jobs and start their own company. Quitting our jobs, it was the scariest day of our life. That was not easy. And those first months ... every point of this company has been hard. That's the case anytime you're building something. But those first months, we only got through it because we didn't have a backup plan. We didn't have a safety net financially or emotionally. This was everything.

That was our saving grace, because there was no plan B. There was only, "We're on our couch, we can't afford cable, we've maxed out our credit cards, our parents are giving us hugs." But that was the support. Carly's parents made us a lot of dinner. That was it. There was nowhere else to go.

So when everyone was saying no, and we made a list of all of the people — all of the investors, angels, seed funds — and we would turn anyone who said "no" red. And then the whole list, which was a lot of names, was completely red. I remember a day in our kitchen, we had just gotten off a pitch that again ended with "Thanks so much, not interested," and we just had to make a decision. Are we going to go for this or are we going to go try to get jobs freelancing for the 2012 election?

It wasn't really even a decision — it was just a half-second to reevaluate where we were, change our pitch a bit, and that was it. That was the closest we've ever come to a crisis of confidence in this company. If you let those things get to you early on, then you don't know what else is coming. There are going to be a lot more challenges.

Shontell: Had you launched the first newsletter at that point? Why quit your job if you're launching a newsletter to begin with? You can do that while keeping your 9-to-5.

Zakin: Well, two things. One is we had both weird schedules. I worked daytime and Danielle worked nights. So we couldn't do that. One of us would have had to change our schedule.

Second, we took a Skillshare class while we were employed, and it was ironic because the class we signed up for was "How to Find Your Business Partner" and that was the only thing we knew how to do. But the person who taught it, Alex Taub [an entrepreneur and investor], became a mentor to us, and he was one of the first people to tell us, "If you're going to start something, you need to be all in. How can you ask anyone to even think about giving you money if you have not made sacrifices to prioritize the effort yourself?'"

When people come to us and ask for advice on starting a business and are like, "I can't afford to quit," I still have mixed feelings about what to tell them. Who am I to tell someone what financial decisions they should make? But for us, we were asking people to believe in us, and we had to show that we believed in us so much that we were willing to take a huge risk ourselves, quit our jobs, have no financial security, and give it a shot.

So we took that approach. That's not for everybody. I don't know if it could have worked out differently. But there was actually a third reason.

A lot of people ask us, "Why didn't you just bring this to NBC? Why didn't you get this in front of Steve Burke?" There is no way that NBC would have allowed two associate producers to not only run the editorial but to run the business side of what we were doing. There was just no way. We knew that in our gut.

Weisberg: That would have ruined the company in a lot of ways in starting off, because the authenticity of having this idea came so much from our friends, and it was developed around routines of this target audience. It couldn't then have had a successful launch if it had then been led by people who had been doing this for 30 years and thought about the same strategy that had worked for all of these other companies and startups. That's not what we're building.

4 days after launch, theSkimm got a shout-out from Hoda Kotb on the 'Today' show, and it changed everything

Jeff Zucker Hoda Kotb Kathie Lee Natalie Morales

Shontell: Tell me about launching your first Skimm. Who did you get to subscribe?

Zakin: We didn't add anyone to the list. We sent an email to everyone in our address book. When we say everyone in our address book, at that point you could download your Facebook friends' email addresses, so we literally took every email address that we had in our possession.

Meaning like, my grandma is on chain letters, chain mail that she forwards. We took those people. So we had, between the two of us, 5,500 names. We sent an email and were like, "Hey, we quit our jobs and we're starting this. Can you please sign up?"

That first day, almost 800 people signed up. But we didn't add anyone to the list. I think the first email had our closest friends and family on it, and it was not a lot of people on it.

Shontell: So 800 pity subscribers?

Zakin: Eight hundred people who were like, "I'll take a look."

Weisberg: The first went out to our family and friends. And then there were two press articles that came out on the first day, and Business Insider was the first to cover us. Thank you! And we got the traction from that.

It all happened very quickly, because we had also emailed every news anchor out there, truly. We didn't know most of them, but we were like, "We're former NBC-ers, thought you would love this, thought you would appreciate the need that we're solving." Most of them didn't respond. Hoda Kotb responded, and she said, "I'll check it out!" We did not know her. We followed up with her two more times, but got no response. Day four of us in business, she said we were one of her favorite things — on air — and it totally changed our life.

So we went from, at that point, let's say under 1,000 users to thousands. All of a sudden, we had geographic diversity. And all of a sudden, we had huge pockets of the country paying attention to what we were doing.

Shontell: Wow. What does a Hoda bump do to your newsletter subscribers?

Zakin: It crashed our site. It crashed our email inbox. We got a few thousand people from it. It was so funny, we were actually back visiting our old bosses at 30 Rock. We were in Starbucks and I tried to load my email and it wouldn't load. Then someone wrote on our Facebook wall: "Just saw you on the 'Today' show." And we thought we were caught walking on the plaza in the background, and we were like, "Oh, how embarrassing — what were we doing?" Then someone had posted what she had done. So it was life-changing.

Shontell: How did you create the voice for theSkimm? It's really something that resonates, and sometimes people will say, "Are they dumbing it down too much?" Or "Do women need their own news source?" But the voice did set you apart, so how did you create theSkimm's tone?

Weisberg: It was the easiest part of building this company. The voice comes from how people speak and how we talk to our friends. We spent a lot of time thinking about, "How do we launch this? What are we doing? What's the ultimate vision?"

We literally sat down in separate parts of our apartment and went to write what would become the Daily Skimm. We came back together, and we hadn't really talked about what the voice would sound like, aside from knowing that it would be how we actually speak to our friends. And we came up with the exact same voice. Since then, we have put a lot of time into explaining the voice to our team and putting a brand guidebook together, and talking about how well we know theSkimm girl, our character inside and out.

Anyone on our team can tell you what her favorite drink is, what she's going to order at Sunday brunch, and it's a living, breathing document — what she likes and where she is in life changes. That is something that everyone in our company knows because they're all telling the story of theSkimm and this character is who the brand is.

So when we put the voice together, it's not for everyone. I think that when we hear criticism like that, that the voice is condescending, we hear it all the time, it's nothing new. I don't think that there should be a one-size-fits-all approach to news. Just because someone doesn't like it, that doesn't mean it's for them.

Shontell: You have coined terms like Mitt Romney was "Mittens" and Hillary Clinton is "Hillz." Business Insider has found the same, that there's something to a conversational nature. That doesn't mean you're dumbing it down; it means you're explaining it so that everyone, the really smart people — because you've got incredibly smart people like John Podesta on your email list — and the people who aren't heavy in politics can understand it.

Weisberg: I think it also goes back to what we were creating, which is it's not something for experts. It's not something for just people who love politics or who love business. That was a huge thing that five years ago when we started the company, we saw such a trend toward personalization. That was the hot thing, and you should be able to just get information about what you're interested in.

That's great, but it left a huge void for people just to be well-rounded. So we want to arm our audience to be able to participate in all types of conversation with all types of different people, and not feel like, "Oh, I work in finance, and my hobby is baseball. So those are the things that I'm going to filter my news on."

That was a huge difference when we started, and that was something that people really latched on to, as well as we were describing business stories and not having words that you had to look up. When we started writing theSkimm, I remember we did this experiment where we were reading a story, and we would kind of highlight if there was a word that we couldn't explain. If that was a term or a sentence we had to go look up and read four times through, that's kind of broken.

Weisberg: We're smart, we worked in news, we were following these stories day in and day out, and if we couldn't understand it, then how can you expect that from people whose job isn't to be up on what's going on day in and day out?

Raising the first million, and hitting No. 1 in the App Store for news

The Skimm employees team jobs Carly Zakin Danielle Weisberg

Shontell: I'm interested in how you got out of your debt. A newsletter that racks up subscribers is great, but at the same time, it's also not immediately clear how you'll start making money. Certainly not enough to pay your salaries and employ people.

Zakin: One is that people still ask us, "How do you guys make money?" And I remember we were on a panel and Danielle just got pissed off and was like, "We make a lot of money!"

Weisberg: I was done.

Zakin: So we're proud to say that we do very well. And it goes back to what we knew, which is that email is a marketing tool. Our goal from day one was to place a long bet on loyalty.

What can you do with loyalty? How do you develop a community, get people engaged? And from there, you can activate them, and in many ways directly monetize that. From truly day one — maybe let's not be hyperbolic; let's just say day four — we had brands reaching out to us, like our wish-list brands. Saying, "Just got this, would love to advertise." We knew nothing about how to work with an advertiser. So instead, we said, "We're actually not working with brands right now."

By doing that, I think we created a little bit of mystery. Our list kept growing. There kept being more press about how big our list was and who the audience was. And we weren't letting brands in.

What happened over time was that we continued to gain a lot of traction. We were meeting with venture capitalists who said to us, "Email is dead. Why are you going after a niche market like women?" Which is ridiculous. And who were like, "My wife reads it."

As Danielle said, we literally had thousands of "nos" in a spreadsheet tracking all of it. So it had been a year and a half almost of the two of us on our couch, in coffee shops, just growing organically. We got to about 150,000 users, and we were able to take in a little bit of seed money.

Shontell: How long did it take to get to 150,000 subscribers?

Zakin: Less than 18 months. It took us one year to get to 100,000. Once we got that first big check — we raised just over $1 million — it was life-changing. We took a picture of it in our bank account. We were like, "We've never seen this many zeroes." It was so exciting. We treated ourselves to nice haircuts, and then we went to go hire a team.

In hiring a team, we really chose to double down on growth. We had one goal, which was to get to 1 million users in a year. We ended up doing it in six months. Then over the course of that year, we started to let brands in, but really selectively. What we've been doing over the last four and a half years is building out two businesses.

We have a media business. We work with sponsors in a really needed capacity, and we're really great storytellers with that. If you asked us, "Do you think it's a really innovative that we created an email newsletter and work with brands to email a newsletter?" No. That is not why we raised venture-capital funding, and that is not why we're building a huge business. What we're doing is we have turned that loyalty into a community. And a community that we can activate.

The other business that we have is a subscription business. We launched our first subscription product just under a year ago, which has been a huge success, called Skimm Ahead. And for us, these two businesses and subsequent capital raises we've taken in have helped really create what Danielle said. We're building an empire. That is how we feel.

A post shared by theSkimm (@theskimm) on

Shontell: Talk about Skimm Ahead. That's your new product. What is it?

Zakin: TheSkimm, as a company, makes it easier to be smarter. We looked at the Daily Skimm. We were like, "Here's an email that makes it easier to be smarter about everything that happened yesterday, and everything you need to know about today." And then we thought, "What's the routine that we all share? And outside of email, what happens next?"

For us and our friends, we look at our phone, and I immediately look at my calendar, and I'm sure you are like us, and you live on your calendar as well. So we thought that was a really interesting way to deliver information. When we thought about what information could we solve next, it was that moment that we all have of, Wait, when is that happening? When's that show back on Netflix? What time is March Madness on? When is the State of the Union? What night? It was about the idea of making it easier to be smarter about the things coming up.

So we created a subscription product that costs $2.99 a month. It can integrate directly into your calendar. For us, it really pushed the door open toward subscription. We had a hunch — we obviously made more than an educated guess — that our audience would be willing to pay for something. I don't think we had any idea what we were stepping into. We're so excited about how well subscription has gone over with our audience.

Shontell: Are there any metrics you can share to show it is an early success?

Weisberg: We can tell you we were No. 1 for news in the App Store in our first month. We continually beat The New York Times and The Wall Street Journal in highest-grossing news apps every month. Apple actually asked if we had figured out how to hack their rating system because they had never seen so many five-star reviews.

Building a marketing empire on loyalty, not scale

Carly Zakin Danielle Weisberg TheSkimm The Skimm

Shontell: The venture capitalists did finally come around, and you've now raised $15 million. But it is hard in the media environment right now. There's a lot changing. Fifteen million dollars is a lot, but it's not the $200 million Vox and BuzzFeed and others have raised. How do you look at the media climate, and how do you plan to survive?

Weisberg: A blessing for this company is that we've never fit in. People have been constantly surprised by our audience, even when we've gone out for raises and the traction has been there. We've never been what venture capitalists have been looking for. So I think us trying to guess or trying to figure out what the trends are in media has never been helpful to us, because we've always been carving our own path.

It took a long time for people to understand what we were building. The criticism that we got was always like, "Oh, it's just that newsletter." And I think that it really came through strongly with the election.

We launched our "No Excuses" campaign, which started with, How can we rally our entire company and our audience around getting people to vote? And at a time when a lot of other media companies were facing this crisis of confidence from their audience, and they were endorsing candidates and hearing a lot of backlash for it.

the skimm

We've always been nonpartisan. Our stance in the last election, just like the other elections that we've covered, has been to get people out to vote. So we interviewed the candidates, we launched a big destination site, and what we are most proud of is that we got over 120,000 people to register to vote, making us pretty much Rock the Vote's biggest partner ever. That's over 90,000 women. That's unprecedented.

The biggest part of our company is our Skimmbassadors. We have the media business, we have the subscription business, and then we have the community element. They are why Apple called us to say, "How did you get so many five-star reviews in such a short period?" Our Skimmbassadors. We have over 20,000 of them. They've started off as just people writing in saying "I love your product." We would ask them to get 10 friends to sign up. And they became pen pals.

Zakin: We call it "intimacy at scale." We genuinely know subscribers' names. We really know who they are. Of course you can't do that for 5 million people, but we have a community. We know how to activate them.

Shontell: Facebook has 2 billion monthly active users. That is tremendous scale, but there seems to be this movement in media and tech happening where maybe you don't need that many people, as long as they're loyal.

Weisberg: We talked about it with our investors very early on. We've heard various founders of some of those companies speak, and we're such fans of them. But we look at them and we're like, "It's so funny to us that VCs ever put us in the same sentence as them because we couldn't be more different. We would much rather say we have 5 million people we activate and get to pay for a subscription product. Or we can get them to turn out in the hundreds of thousands to vote, than say "We've got 20 million of them, but only 2 million of them open us every day." That's not interesting to us.

Zakin: That's why we've always been our own category. As these media trends — and what's hot and what's not come up — we always knew who we were. We always knew what we were building as a company, and we've been lucky to be surrounded by a board and investors and advisors who respected that and respected our vision and helped us along.

At times we got, "Well, you're not BuzzFeed, you're not at BuzzFeed's scale." And we're like, "That's because we're not trying to be BuzzFeed." BuzzFeed's great, we think they have great stuff, but that's not what we're trying to build as a company.

It has always been about staying true to our vision and staying true to our audience in that whatever we create has to be additive. It has to be a voice that they trust, and it has to be part of what they actually need to get through their day. That's what they find whenever they interact with our products.

There's a new New York Times best-seller list for millennials

Shontell: One thing that's interesting that you've built loyalty-wise, and we've seen it being on the receiving end when you put a Business Insider link in a Skimm newsletter, we see a flood of traffic. Are we allowed to talk about this? How when theSkimm recommends a wine, and when it recommends a book, it's often better performing sometimes than even The New York Times?

A post shared by theSkimm (@theskimm) on

Zakin: We've been told by publishers that we are the No. 1 way to sell books for this audience.

Shontell: Above being in the New York Times best-seller list?

Zakin: Above the "Today" show and above the New York Times best-seller list. Multiple publishers have told us that.

Weisberg: You can see that by walking into our office. Publishers are sending us cartloads of books. And we're like, "We just need one or two."

Shontell: You put one in a newsletter every day, right?

Zakin: One every Friday, and a bottle of wine that we like every Friday. We happily taste-test the wine and happily read the books.

Shontell: Do you get affiliate fees?

Zakin: Yes, and we are open about that in the newsletter. But we choose what we think is the best for this audience. It's not about, "Oh we're going into the book business." That's not what we're saying. It's about being in the engagement business.

We can drive as much traffic to a Business Insider article as we can to driving book sales and as we can to driving sales toward our new products with Skimm Ahead. It just goes into the powerful relationship that we have with our audience. We feature products and brands we like all the time, and I can't even tell you how many brands have said we've changed their business trajectory because they were featured in theSkimm. That's a wonderful feeling, and we've been told we have the Oprah effect. We would never say that about ourselves, but we're happy to repeat the quote.

Shontell: Definitely. And Oprah is a fan right?

Zakin: Oprah is a fan, which is a very surreal sentence to say.

Shontell: You've grown tremendously, but I'm sure it's still early in the company's history. What do you think is next? Are you going to do video? Are you going to do an audio version of theSkimm?

Weisberg: I think it's all coming. It's just about how you prioritize it and when you release it. We started the company with two guiding principles. The first is that we have a voice — the voice is very clear — and it's in all products we create.

The second is that we really have a strong belief in looking at the routines of this target audience and fitting that in with what we release and when. That's the same thing, you wake up, you get an email telling you what you need to know for your day, and then you step out your door and you get your calendar. So those two things are very much in our product roadmap.

We did video. You can check out our Instagram and Facebook site for some of the video that we've been producing. We just did one on equal pay and we did one on Syria and immigration and it's gone over really well. That's just the beginning of what we're doing and what we're testing. As former video producers, it's exciting that we're going into that, and we clearly see a lot of interesting ways to work with brands.

So that's up next. It's also thinking about other products and services that fit into the routines of this audience that we've always wanted to create and haven't had the time or the ability to focus on other things. That's the benefit of being where we are now with the amazing team that we have, that we can really start thinking about what was in our head five years ago and three years ago, and now it's actually the perfect time for us to create those things.

A post shared by theSkimm (@theskimm) on

Shontell: How does theSkimm newsletter come to be every day? How do you pick the stories? Who writes it?

Zakin: I think we developed our secret sauce. Of our team of 41, only five are on the editorial team. We still touch every word and see every word.

Shontell: What is everyone else doing?

Zakin: It's tech, analytics, sales product, really. For us, it's about every day, it's the best part of our day to pick the stories. It's the same principle that we started with, which is: What will our friends need to talk about? What's becoming a story? What already is a story? And what will feel old by tomorrow?

We want you to be able to go to any work or social event and talk to anyone about anything. We love doing that, we love picking the stories every day — it's the easiest and best part of our day. The last edit is made every morning at 5:58.

Shontell: Ready for that 6 a.m. deadline.

Zakin: Yep.

Shontell: Congrats to you both.

Join the conversation about this story »

NOW WATCH: Hackers and governments can see you through your phone’s camera — here’s how to protect yourself

Viewing all 295 articles
Browse latest View live