The speaker discusses how his experiences with natural wonders and his previous company, The Point, led to the creation and growth of Groupon, and shares insights on scaling a business, empathizing with partners, and sticking to core values.

• 👨‍💼
  00:00

  💡 The speaker discusses how finding beauty in natural wonders can teach us about business, and how his previous company, The Point, led to the creation of Groupon.

  • The speaker discussed how one can learn about business by finding beauty in natural wonders, such as witnessing the birth of an octopus.
  • The speaker discusses the company he started before Groupon, called The Point, and how it led to the creation of Groupon.
  • The Point was a social platform that allowed people to organize and take collective action or give money towards something once they hit a tipping point of participation, similar to Kickstarter, and was funded by a developer who offered a million dollars for the founder to drop out of grad school and work on the idea.
  • The speaker received a million dollars in funding for a startup idea, launched a different product which floundered for a year before pivoting into Groupon.
  • Started Groupon as a side project and launched it in 30 days while running another project, without ever admitting to himself that the other project wasn't working.
• 🤡
  05:14

  Juggalos trolled search engine marketing campaign instead of becoming high-value customers.

  • The speaker tried search engine marketing to drive traffic to their website, but the Juggalos, a community of insane clown posse fans, ended up trolling their campaigns instead of becoming high-value customers.
  • Building a startup is intense and irrational, and many people quit during the phase when things aren't working.
  • Groupon was started as a result of The Point not working and investors wanting their money back.
• 🚀
  08:52

  Groupon's fast expansion and first mover advantage helped them become the most copied website ever, despite internal issues and being easy to copy.

  • The team created a local version of Woot called Get Your Group On, which offered daily deals with an embedded e-commerce widget, and it quickly gained popularity.
  • Started a two-for-one pizza deal with a local bar that sold sports themed garter belts and soon realized they were on to something big.
  • Groupon experienced internal issues during their fast growth, including using a FileMaker app to generate vouchers and pausing every 30 emails to avoid crashing the computer.
  • Groupon was able to win and become the most copied website ever due to their fast expansion and first mover advantage, despite being easy to copy.
• 📈
  13:55

  Scaling a newsletter business is tough, but creating a playbook for expansion and considering company culture can help overcome challenges.

  • Scaling a newsletter-based business proved difficult due to the challenge of providing a consistently good customer experience, but getting started is not hard.
  • Rapid growth can make it difficult to establish a global value system and maintain a cohesive culture.
  • Identified Groupon units in each city and created a playbook to replicate in 30 markets, which is a similar approach being taken at Detour for a local model.
  • When expanding internationally, it's important to consider company culture, but the speaker's company struggled with this and faced challenges with clones copying their business.
• 💼
  18:38

  Before a business deal, the speaker empathized with the other person's hobbies; 🪙 a man collects coins and enjoys thinking about their value, while Groupon partnered with values-aligned and savvy Samra brothers instead of acquiring a company with a bad reputation.

  • Before a business deal, the speaker tried to see the world through the eyes of the person he was meeting with by having a conversation about their hobbies.
  • A man collects coins as a hobby and enjoys thinking about their value while sitting on his couch.
  • Groupon considered acquiring a company with a bad reputation for building unsustainable businesses, but ultimately decided to partner with the Samra brothers who were values-aligned and savvy.
• 💰
  22:05

  Yahoo offered to buy the company for $2B, but the founder met with Google instead and the board decided not to sell; owning a business is an opportunity to make a difference, going public is awful, and Groupon's decision to go public was the worst.

  • Yahoo offered to buy the company for around two billion dollars, but the founder didn't want to sell and managed to get a meeting with Google, but ultimately the board decided not to sell due to the business's success.
  • The speaker believes that owning a business is an opportunity to inject an idea into the world that hopefully makes a difference, and going public is awful.
  • Groupon going public was the worst decision and now 50% of the company's time is spent on something unrelated to building a great company.
• 🚶
  26:19

  Detour is a location-aware audio walk that guides you through San Francisco with awesome stories.

  • Avoid going public as the incentives to think short-term are too strong and it's bad for business and entrepreneurship.
  • Detour is a location-aware audio walk that guides you through San Francisco with awesome stories.
• 💡
  28:51

  Startups should stick to their core values and principles, such as customer-centricity, to succeed in the long term.

  • Startups should avoid adopting big company structures and instead focus on adhering to their core values and principles.
  • Stick to your convictions, such as starting with the customer and working backwards, and avoid rationalizing exceptions to be successful in the long term.