4 ms·
Paypal buying eBay items wasn't actually the primary method for stimulating growth. Initially, Paypal offered new users $20 for opening an account, and $20 for
by dvdhsu 13y ago
Paypal buying eBay items wasn't actually the primary method for stimulating growth. Initially, Paypal offered new users $20 for opening an account, and $20 for referring somebody to open an account. They then dropped the bonus to $10 for both, then $5, then $0. This allowed them to grow immensely, and they reached 100,000 users in one month. These bonuses weren't "cheap" though: they cost PayPal around 60-70 million.
Here's a reference - an interview between Elon Musk and Salman Khan: http://www.youtube.com/watch?v=vDwzmJpI4io&feature=player_detailpage#t=682 http://www.youtube.com/watch?v=vDwzmJpI4io&feature=player_de.... It's worth a watch.
- pearjuice 13y ago>60-70 million Great strategy if they actually worked out they could get it back in x time with y users actively using Paypal. The real step is taking the risk. What if only half of the money returns and there is no further adoption? How did they ever take that step? Or were they monitoring the user growth 24/7 and if it didn't match their planned strategy, they would pull the plug on bonuses? Amazing however they managed to pull it off.
- dataminer 13y agoThe whole interview is very insightful, thank you.