#806: How Rich Barton Built Expedia and Zillow from $0 to $35B — Audacious Goals, Provocation Marketing, Scrabble for Naming, and Powerful Daily Rituals

Overview

This episode features Rich Barton, co-founder of Expedia and Zillow, as he shares insights into building billion-dollar companies, fostering innovation, and balancing personal health and family life. Barton dives into provocative marketing strategies, the art of naming companies, and the importance of cultivating leadership through delegation and trust.

Notable Quotes

- Even though I feel like I might ignite, I probably won’t. — Rich Barton, on managing fear and maintaining calm under pressure.

- You can increase love in the world by releasing that person to find where they belong. — Rich Barton, on the humane approach to firing employees.

- Big ponds and good fishermen—that’s what I look for in business opportunities. — Rich Barton, on identifying scalable ventures.

🛠️ Building Billion-Dollar Companies

- Barton recounts the origins of Expedia and Zillow, emphasizing the importance of identifying big ponds—industries with massive potential—and assembling teams of good fishermen to capitalize on opportunities.

- He shares how Expedia spun out of Microsoft during the dot-com bubble, leveraging bold pitches to leaders like Bill Gates and Steve Ballmer.

- Zillow emerged from Barton’s frustration with opaque real estate data, leading to the creation of the Zestimate, a game-changing feature that democratized home valuation information.

💡 Provocation Marketing

- Barton explains his approach to marketing through provocative features that spark emotional responses, such as Zillow’s Zestimate and Glassdoor’s salary transparency.

- He highlights the importance of addressing taboo topics in a way that feels empowering rather than fear-inducing, ensuring the brand resonates positively with users.

- Examples include Glassdoor’s give-to-get model for salary data and Avo’s controversial attorney ratings, which leveraged lawsuits to generate publicity.

📜 Naming Companies: The Scrabble Strategy

- Barton shares his framework for naming companies, favoring made-up words that are distinctive, memorable, and evocative.

- Key rules include using high-point Scrabble letters like Z and X, keeping names short and syllabically simple, and ensuring they can be turned into verbs (e.g., Zillow it).

- He reflects on naming successes like Zillow and Glassdoor, noting the importance of creating brand equity through originality.

🏋️‍♂️ Personal Health and Daily Rituals

- Barton describes how a family health scare prompted him to reassess his priorities, leading to a focus on physical and mental well-being.

- His current regimen includes daily workouts (zone 2 cardio, weightlifting, and sports), mindfulness practices, and regular sabbaticals to recharge.

- He emphasizes the importance of sustainability in leadership, advocating for delegation and trust to avoid burnout.

👨‍👩‍👧‍👦 Family and Leadership Lessons

- Barton discusses the role of family in shaping his perspective, including designing a family tattoo to symbolize unity.

- He advises leaders to cultivate successors by stepping back and allowing others to emerge as decision-makers, even encouraging extended vacations to foster independence within teams.

- For aspiring parents, Barton encourages embracing the unpredictability of family life, noting that we’re built for this and that children expand one’s sense of purpose and perspective.