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Kaufer: I couldn t figure out what a receptionist would do. And executive assis-
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tants, we don t have those either. So on the subject of hiring, I don t look at a head count budget when I think of hiring people. I wait until I see the need for someone when I can carve out a job description that s 80 percent full on the day someone starts and that s when I ll open up a new req. For receptionists and executive assistants, it s something of a running joke because, well, what are they going to do Make travel plans for us We already know how to do that. Answer the phones Well, I can answer my own phone; it s not too much of a bother. Schedule meetings Well, we try not to have too many meetings to schedule. So if we were to hire one, I m sure they would be busy all the time, but perhaps not doing anything that really needed to be done at TripAdvisor. With engineering, there s usually more development that I want done, but I can look and say, Am I willing to fund that project With marketing, with customer acquisition, with accounting, I first look and say, Hey, what s taking people s time What can we automate If I can t automate it, do I really need it to be done If I do need it to be done, all right, then we ll open a req. We re 70 people now, which is pretty small, given the revenues and profits that we re producing. Nobody in corporate would blink if I said, Hey, I want to have 20 more people on board. Our margins would still be terrific and I could afford it, but I m not sure it would speed things up or slow things down.
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Livingston: It sounds like you re really maintaining a good atmosphere, and
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one where innovation can happen rather than just saying, We ve been bought. I m leaving now. It s 5 o clock.
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Kaufer: one is starting up the company, getting anyone interested in
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what we do. two was hitting that profitability mark so we could break even. three is growing, and if it so happens, as it did with us, a great liquidity event. four is, OK, are you done with the business Do you already have a commanding number one market share and no competitors Well, that s pretty rare. Certainly it isn t true for us. We may be ahead of our competitors, or tied with our competitors, but how close am I to being the number one travel site in the world Well, I m pretty far away from that. I have some sister companies that have that spot. But I look at it and say, Why wouldn t everyone want to start on TripAdvisor when planning a trip So if I have 20 million uniques a month now, why don t I have 50 million My definition of chapter four is being the most popular travel site in the world.
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James Hong
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Cofounder, HOT or NOT
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While looking for a job in 2000, James Hong launched a website with his friend Jim Young just for fun. HOT or NOT lets users submit photos of themselves and have others vote on their hotness on a scale of 1 to 10. The site spread virally, and within hours their server was swamped. Hong and Young sensed there was a business in it, and worked frantically to scale the site to handle the load. A few months after launching, they found the way to generate revenue from the site: they added dating for a monthly fee. Despite many acquisition offers, HOT or NOT continues to thrive as a stand-alone company. As of July 2006, HOT or NOT had counted about 13 billion votes.
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Livingston: Take me back to when you had the idea. Hong: Jim, my brother and I were hanging out drinking, and Jim mentioned
that he thought a girl he met at a party was hot, and that she was a perfect 10. My brother and I were working on a website at the time called XMethods, which was the first directory of publicly available web services, so we were talking a lot about what would be a cool consumer web service. In 1999, everyone was talking about web services in the context of B2B, and I remember thinking, What about consumers Aren t consumers going to do this stuff too When Jim said that he thought he found a 10, an idea popped into my head: what if you had a service where people could post their pictures into the system, and then other people could rate them from 1 to 10 The original vision was that your client would call the web services, get a picture, and have it randomly float across your screen or pop up on your screen at random times during the day. The idea was that all our friends that were working in cubicles could have a window: a random girl walking by you that they could rate from 1 to 10 on if you thought she was hot.
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