Chapter 1: The Journey of Zappos and Tony Hsieh

The visionary behind Zappos, Tony Hsieh, amassed a fortune nearing a billion dollars. His company frequently ranks among Fortune 100’s top employers. But what propelled Tony Hsieh to such heights?

He kicked off his entrepreneurial journey with a button-making venture in middle school, followed by a successful pizza business during his Harvard years. At just 25, he sold a company to Microsoft for an impressive $265 million. His successes raised a question: What fuels his drive? What principles guide him? Why does he excel where countless others falter?

"First, they ignore you, then they laugh at you, then they fight you, then you win."

— Ghandi

1. Pursue Your Passion

For most, the initial stage is being overlooked. To truly succeed, perseverance is crucial, especially since success often takes time. Focus on what excites you, as that enthusiasm will keep you motivated, even when challenges arise.

I’ve embarked on various small ventures, including creating a Google Calendar eBook and offering poker advice online. Regrettably, none of these projects thrived. After dedicating a month to each, I gave up, lacking both enjoyment and immediate results. Tony Hsieh asserts that pursuing something solely for profit is insufficient motivation.

After selling Link Exchange, Tony was obligated to remain for a year to collect approximately $8 million. Initially, he thought it would be a breeze, but soon realized he wasn’t fulfilled. Consequently, he chose to leave, prioritizing his passion over financial gain, leading him to establish a billion-dollar enterprise.

2. Choose the Right Environment

In poker, you encounter varying skill levels among players. Would you prefer to join a table full of novices or skilled sharks? The choice is clear. Yet, many remain in challenging situations, hoping to "learn" from their losses.

If a particular market proves too difficult, don’t hesitate to pivot. For instance, if you're the best at creating seven-fingered gloves but there’s little demand, reassess your strategy.

3. Identify Problems You Relate To

“Never invest in a business you cannot understand.” — Warren Buffet

Successful entrepreneurs often tackle issues they personally face. For example, Steve Jobs founded Apple due to frustrations with existing computers. Similarly, two Cornell students addressed their discomfort in library chairs, leading to the creation of SupportiBack, a company that yielded eight-figure revenues by their early twenties.

4. Adopt a Long-Term Perspective

"Most people overestimate what they can do in one year and underestimate what they can do in twenty." — Bill Gates

I’ve committed to producing weekly videos for two years—a public challenge to myself. Like many, I sometimes fixate on immediate outcomes, particularly at the gym. Yet, consistent effort yields results over time.

A notable Stanford experiment in the 70s showcased how children who waited for a second marshmallow exhibited better life outcomes. During tough times, Tony Hsieh remained focused on the long-term vision for Zappos, demonstrating the importance of patience and perseverance.

5. The Importance of Reputation

A solid reputation often outweighs monetary wealth in the long run. Renowned figures like Warren Buffet highlight the significance of maintaining a good image. A single poor decision can tarnish a hard-earned reputation.

Zappos thrives on its strong reputation. When a third-party shipping provider faltered, Tony and his team took matters into their own hands, creating their own shipping solutions.

6. Embrace Lifelong Learning

Each employee at Zappos undergoes extensive training. Tony Hsieh values this so much that he offers financial incentives for those who choose to leave. Less than 1% take that offer. Employees have access to a library and various classes at no cost, fostering continuous growth.

Tony’s path wasn’t without failures, but each setback served as a lesson. His journey through various ventures taught him resilience and adaptability.

7. Cultivate Kindness

"Be nice and make friends. It’s a small community." — Tony Hsieh

Kindness is invaluable yet often overlooked. Simple manners can have far-reaching effects. At Zappos, this principle is fundamental: “Provide exceptional service to everyone—customers, employees, and vendors.”

Tony’s dedication to kindness is evident, reinforcing the company’s core values.

Chapter 2: Insights from Tony Hsieh's Experience

In the video titled "Zappos Only Hires People Who Are Weird And Lucky In Life," Tony discusses the unique hiring practices that contribute to Zappos' success, highlighting the importance of cultural fit over traditional qualifications.

"What I Learned As An Executive at Zappos and Netflix" provides further insights into Tony's leadership philosophy and the lessons he's gleaned from his time at both companies.