Tony Hsieh is an unassuming 34 year old who’s success defies normal logic. He made his first $1 million by age 18 and that was just the beginning. Hsieh, pronounced ‘Shay’, is the current CEO of online shoe seller Zappos.com. Prior to joining them in 2000, he co-founded LinkExchange. In 1998, at age 24, he sold that little start up company to Microsoft for $250 million.
Hsieh, looking for his next triumph, became an adviser and investor in Zappos in 1999, just months after it was founded. He joined full time in 2000 and has grown the company, as CEO, from $1.6 million that first year to $800 million last year. Projections indicate Zappos will gross a cool $1 billion in 2008.
What started out as an online footwear business has since expanded to handbags, purses, eyewear, apparel and watches. Zappos stated goal is to offer the “best service in the industry”. They provide free shipping, offer a 365-day return policy and a call center that is always open. They put great emphasis on company culture and core values. They strive to “deliver ‘wow’ through service”.
Hsieh uses a loyalty business model and relationship marketing. He cites Zappos’ rapid growth to repeat customers and world of mouth recommendations. They boast 60% repeat business. Zappos offers all newly trained employees an opportunity to take $1,000 and leave the organization. The 90% who turn down the money in favor of the job turn out to love the job more than the money – his own philosophy.
He prefers a cubicle over a swank corner office. He drives a Mazda, wears jeans and focuses on business rather than amassing money. So what are his secrets to success? They’re really quite simple: live within your means, understand your value and focus on that, don’t get too big for your britches, be organized, and stick to your goals.
He will be a guest on Oprah Thursday, October 23rd. He shares with her a rather humbling confession – he and his brother share a suit.
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