"I never had it in mind that I would start a company one day and it would really be successful. I have just been motivated by working on interesting technology" Pierre Omidyar
Pierre Omidyar was born in Paris in 1967. He moved to Baltimore when his father began his term of residence at Johns Hopkins. Omidyar became captivated by computers while at high school and skipped his gym classes in order to use it.
Noticing the boy's keen interest, the principle gave him the job of creating a program that would produce catalog cards for the library. He was paid $6 an hour.
eBay (electronic Bay, as in the San Francisco Bay area), as it was when it first appeared in 1995, operated merely as a forum for people to sell and bid on various items.
Omidyar did not back goods, mediate conflicts, or get involved if there were accusations of dishonesty or abuse of the system. Almost immediately, collectors of Barbie dolls, Beanie babies and the like flocked to eBay.
Three months after its launch, Omidyar had to ask his friend Jeff Skoll, also a programmer, for help. In order to cover the new costs involved with the growth of the business, Omidyar began charging small change to list an item on the site and took a small commission if the item was purchased.
Omidyar was surprised by his continued success and had to hire someone to open the large number of cheques that were being sent in. He was also surprised that people were not simply using the site to buy and sell, but also as a meeting place where relationships were made over common interests.
After quitting his day job, Omidyar worked along with Skoll to improve eBay. They felt that if a sturdy framework were in place, business would generate by itself.
After just under two years of operation, eBay was one of the most popular Internet sites, users bidding on 794,000 items daily. And the company was now doubling every three months.
At such a rate of growth, Omidyar and Skoll sought venture capital assistance and a management team that would further move the company forward. Benchmark Capital gave the partners a $4.5 million cheque for 22% of the company.
Benchmark also found a CEO for eBay, Margaret Whitham, an executive from Hasbro, and with her leadership, the business became a slick corporate entity. With a new look, better publicity, and greater organization, eBay went public on September 24, 1998. Within four months of trading, the stock, which started at $18 per share, was worth $300. Omidyar became a billionaire.
Got Any Ideas From This?
How about starting your own auction business? Or join eBay's affiliate program here: ebaypartnernetwork.com
As you may already know, there's never been a better time to start your own eBay style business.A lot of people are trying to make money from the Internet. One route many believe to be the best is to create a web site and sell goods from it. There's no doubt some are making money doing exactly that.
eBay is simply an Internet phenomenon. Just supplying the platform where people come to buy and sell their wares, and taking a percentage of what's bought and sold.