Airbnb's CEO Brian Chesky transformed the struggling startup into a multi-billion-dollar industry giant by heeding transformative advice from Paul Graham. on Airbnb's success
Airbnb's journey from a struggling startup to a global industry giant worth around $80 billion is attributed, in part, to a single piece of advice that CEO Brian Chesky received from an investor. Speaking at a Stanford Graduate School of Business event, Chesky revealed that this advice had been "the best piece of advice I ever got."
Paul Graham, co-founder of tech startup accelerator Y Combinator, who advised Airbnb's co-founders – Brian Chesky, Joe Gebbia, and Nathan Blecharczyk –told them to shift their focus. Graham encouraged them to prioritize a hundred enthusiastic supporters who truly loved their product instead of chasing a million lukewarm admirers.
Chesky noted that this approach went against conventional wisdom, which often emphasizes mass appeal. However, the strategy resonated with Airbnb's founders, leading them to create remarkable experiences for a select audience. They took their research seriously, even collaborating with a Pixar storyboard artist to map out exceptional guest stays from check-in to check-out.
Simultaneously, they devoted attention to ensuring the satisfaction of hosts. Chesky revealed on Reid Hoffman's "Masters of Scale" podcast in 2017 that the co-founders embarked on personal visits to Airbnb listings in New York, capturing images and gaining insights directly from hosts.
The limited number of people who deeply appreciated the Airbnb experience became the company's inadvertent "marketing department," Chesky highlighted during the Stanford event. This strategy proved instrumental in driving Airbnb's initial growth, primarily through word-of-mouth recommendations.
Chesky disclosed that Graham also provided them with "the worst piece of advice" they had received – suggesting they move to Mountain View, California, to thrive. This advice , contrary to current trends, proved unnecessary. Chesky emphasized that businesses don't need to be located in Silicon Valley to succeed..
As Silicon Valley witnesses a shift with tech companies moving away due to cost considerations, Chesky's perspective on remote work also rings true. He has consistently championed the idea of working remotely, even before the Covid-19 pandemic, highlighting its effectiveness and potential for work-life balance.