Startup School: Tony Hsieh On Delivering Happiness

Zappos CEO Tony Hsieh has taken the stage at Startup School this afternoon to talk about company culture and delivering happiness. Hsieh started out by talking about his beginnings at LinkExchange, a company he sold to Microsoft in 1998. The reason LinkExhange sold to Microsoft was because of the company culture, according to Hsieh. After LinkExhange, Hsieh was an investor in Zappos, and two months after the founding of Zappos, Hsieh came in as the CEO. Zappos started in 1999 with no sales, and last year in 2008, had over $1 billion in gross sales. Hsieh mentioned that the biggest source of revenue for Zappos is word of mouth, as well as repeat sales. Zappos is best known for their customer service. When Zappos started out, there was no company culture. In 2003, Zappos decided that they needed to differentiate themselves from all the other companies, and chose customer service. Zappos now follows the 3 C's; Clothing, Customer Server and Culture.