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Fake: Partially, yes. It was really a friends-and-family investment.
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It was the three of us and we added Eric Costello very soon thereafter. Eric is a phenomenal web developer. He s recognized as one of the great DHTML gurus. He lives in New York, so we were working with him remotely. If you have somebody who s really fantastic and they live in New York, that s OK. He likely wasn t going to move (he has a family and is very settled there), but Eric was a phenomenal addition to the team. He s a front-end developer. Soon thereafter, we were hiring for a back-end developer. It was actually very difficult to find that person in Vancouver. We felt that person needed to be local. We didn t want to be too dispersed. There are a lot of companies that are virtual companies a bunch of people that are living in different places, but I think that s tough. You can do it with one or two people, but I think for the most part, everybody being in the same place is important. Stewart, Eric, and I had worked together on a project before, so we knew how to work with him remotely. The project was the 5K contest, which was a web development competition. It emerged out of a conversation that Stewart had with somebody at his web development agency who had said, Oh, you can t make anything worthwhile under 5K.
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Livingston: Where did you start working
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Fake: We had a friend who was subletting a space, and he had a contract job that kept him out of the office all the time, so we sublet his subletted space. This was in 2002 and it was still in the great technology bust period. There were failed dot-coms all over the place, so office space was cheap. And some really awesome developers (like Eric) were available, who wouldn t otherwise have been out on the open market two years earlier. So it was actually really well timed. I think that the timing was really important because you could operate in a much more independent mode. The money was scarce, but I m a big believer that constraints inspire creativity. The less money you have, the fewer people and resources you have, the more creative you have to become. I think that had a lot to do with why we were able to iterate and innovate so fast. Flickr was kind of a lark. It was a side project that we built while we were in the process of building Game Neverending. The back-end development of the game fell really far behind the front-end development, and so while we were waiting for the back end to catch up being restless hacker types we built this sort of instant messenger application in which you could form little communities and share objects. And we just added the ability to share photographs. So Flickr started off as a feature. It wasn t really a product. It was a kind of IM in which you could drag and drop photos onto people s desktops and show them what you were looking at. We built it really fast; we had a lot of the technology already from the game, but we built the first instance of Flickr in eight weeks. We had the idea in December and built it out by February and then presented it at the O Reilly Emerging Tech Conference. Livingston: What type of response did you get when you unveiled it Fake: It was hard to say. The response was positive, but it didn t end up being a compelling product mainly because it was a feature. It had a critical mass problem. Unless all of your friends were already on it, the sharing feature wasn t valuable to you. It still grew, slowly. But it really started getting traction when we added the ability to put your photographs on a web page. Livingston: Why did you decide to make it available on a web page Fake: When we started it, we were under this deluded idea that we wanted to create something new, but not a photo-sharing site. This is weird, but one of the things that enabled us to innovate within this space was that we hadn t done our research. We hadn t sat down and said, We re going to build a photo-sharing site. We re going to do the research, figure out what the business model is, and raise some venture capital. We were na ve and optimistic. What we did was just start building stuff. And I think if we had sat down and done the research, we would have looked at --the companies that had actually made businesses in this area, like Ofoto, Shutterfly, and Snapfish. Basically their model was that photo sharing was a loss leader for photo finishing services. It was all about the funnel to get you into buying prints. Photo sharing
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