John Foley, Matthew Owens, United States discussed on Masters of Scale with Reid Hoffman
There were. Ten or twelve buckets of knows it was my age. Someone. Half of the VC's didn't like hardware at all. Fitness was a dopey category plagued by bad teams and bad products and bad marketing and gimmicks and fads. Valley didn't understand boutique fitness. Back in. New York City Company. I've made a commitment to my family that I'm only to sit on boards in California. No investors wanted to look at this thing they wanted nothing to do with it. John took hundreds of noes from venture capital firms thousands from angel investors as he tried to fund his ten out of ten idea. But. Of course, this isn't where historian ended. The buckets of knows eventually became a chorus of yes. So. Eight years. Later, PELETON IS A. Traded Company with evaluation of nearly twenty. billion. Dollars. John and his team ultimately converted skeptical doubters in die hard believers and then rode their enthusiasm all the way over the hill. How did he do it? Stay tuned. I believe you clear a path to scale by converting skeptics to fanatics. The best megaphones for your product are the ones who doubted you at the start. Having, credible, talented, every position. There are fires burning. Out. Such an idiot. Era So. Easy Whistle. So I have no idea what sorry mistake with you have to time it right? Lou. Bedroom apartment. Absolutely not all ten years later. We invaded. This is masters of scale. We'll start the show in a moment after a word from our sponsor capital one business. Their astronauts, their newscasters, their doctors and scientists, their little boys and little girls some of whom have light skin or dark skin different texture hair these really incredibly diverse images of kids in these aspirational views of what they could be when they grow up. That's JEN GARBA CAPITAL One's head of business brand marketing, and she's talking about the products found at puzzle huddle. The business was founded by Matthew Owens, a father of three who discovered a gap in the puzzle and game market when he went shopping for his own family. He had gone through dozens of online stores trying to find puzzles for his kids, but he couldn't find any that represented what his family looks like. You thought you know what? I'm going to go out and create those. Puzzle. Huddle, sales took off when the pandemic forced families indoors but covert also caused supply chain issues that made it tough to keep up with demand. Then the black lives matter movement drove new customers to black owned businesses and sales spiked again. Matthew experienced the uptick in demand from a much broader audience being sold out of your market product means you're doing something right but it's really scary. How do you get that story to keep up with that demand? How did puzzle huddle meet the moment we'll find out later in the show. So of capital on businesses look at entrepreneurs who are leading through crisis with courage and innovation. I'm Reed Offman co-founder Lincoln partner gridlock and your host and I, believe you clear your path to scale by converting skeptics to fanatics. The best megaphones for your product are the ones who doubted you at the start I want you to think of a food you love but not just any food one you used to hate for me it was stinky cheese when I was a kid nothing. Could sound more revolting but fast four to adulthood and it's one of my favorite indulgences in particular. I. Have a fondness for this one pungent cheese called it plus it's very soft rubbed with Brian and brandy an age for six weeks in its original unpasteurized form. A plus is banned in the United States it's a Cudgel of cheese. It will punch right through whatever else is on your plate. Now did I. Convince you not all of you definitely, not the lactose intolerant but a few of you may drops my boss into your next Insta- cart, and if we were together in person I'd have even a better chance why? Because an impassioned testimonial from a trusted source is a powerful thing it can overcome skepticism especially if the person testifying was once a skeptic and especially if the skeptic can try it for themselves now it's not easy to convert full on skeptics and let me be clear. You don't want to pursue them at the expense of friendly early adopters. But. If you can find a way to hack that skepticism and converted into a passion for your product, you'll create an organic loyal following that bind themselves to your brand. Why does it work because it's vanishingly rare that we could admit tour cells. I was wrong and when we get to that state of self discovery in Prince itself on our memory and fuels, our newfound love of the thing we had hated so. That's why casual fans can come and go but converts will stick with you and spread the word on your behalf I wanted to talk to John Foley about this because as the CO founder and CEO Peleton he knows a lot about the conviction of true fans. It turns out he knows a lot about skeptics to as you'll hear, Peleton is a brand with a very passionate fan base. And that was true even before the global pandemic put gyms and fitness classes on pause peleton stationary bikes had a connected tablet that leads you take part in remote cycling classes. They've won over a million connected fitness of drivers and a user base of over two and a half million members. But before that they faced years of the existential struggles all at John put this in his way. We were just sure that tens of thousands of people were going to throw money at us and it was crickets. Will get to that uphill climbing a little bit but first some background John Grew up in the Florida keys his mother was a homemaker. His father was a pilot for Delta when it was time for college John's family new money would be tight. So his father even the best advice he knew. My Dad brought home US News and World Report best schools for your money. I got into Georgia Tech, which was apparently a good school for your money. There's a coop program where you work six months a year and you go to school six months a year so that you can pay your way through college. was that six months on six months off particularly useful for entrepreneurship ball. One of the things that I've been mulling for years is that roughly speaking things as entrepreneurship can't be taught, but it can be learned but was that at all helpful as a precursor to the entrepreneurial journey. I wonder if it's a good question read and I'll put a finer point on it was three months on three months off you weren't comfortable. You were constantly putting your life into a car and driving a thousand miles across country. It did give you the sleep on the couch and the work ethic for the Rough Times of entrepreneurship. Again, there was a correlation. I think you're maybe literally the only person I've ever talked to WHO's worked on the factory floor of Eminem and Mars. John got a job at a Waco Texas factory for Mars Eminem. At one point, I was a shift manager for skittles and starbursts. But our plant also made snickers and twix. England. We made six million snicker bars a day, which was just hard to get your brain around. It's not easy to see a.