“You have to realize when David and I were doing this it was just for fun,” says Yang. “We never thought it would even become a business.”
Yang and Filo turned their hobby of surfing the Internet into a billion-dollar business. In the process, however, they never lost sight of how it all began. They were just two post-graduate students who found themselves bored with school and decided to have some fun instead. That is the bottom line behind the creation of Yahoo! And that is the bottom line the two wanted to maintain throughout the company even after its infancy.
Going to work at Yahoo! is a far cry from what most CEOs might be used to. The average employee is 29 years old and actually enjoys going to work. Why? Because it is not only a creative atmosphere, but a fun and casual one as well.
The company’s slogan early on was “Do what’s crazy, but not stupid!” Yang and Filo understood the importance of creating a fun atmosphere at work. The employees work long hours, but management is all too aware of that. As such, they make sure that the work environment caters to their every need. From video games throughout to catered lunch programs, Yahoo!’s internal culture is one of the company’s top priorities.
Yang and Filo wanted their company to be a place where people loved coming to work, just as they did. By focusing on creating a culture that makes employees feel at home, they have begun finding many employees who prefer staying at work over going home, simply because it is more fun.
That image has also been used in the company’s branding campaigns. Yang and Filo opted for a cool California image and a bright logo to represent their company, and they have placed it on everything from sailboats and parachutes to skateboards and hockey rinks. Yahoo! is not about being cooped up in an office, so why would its advertising be?
On top of that, Yahoo! also lets full-time employees in the U.S. become part of an incentive-based stock option plan. Rewards are given out based on reaching targeted goals and obtaining advertising contracts. But, more importantly, it places part ownership in the hands of employees, something which Yang and Filo feel has been essential to their success.
Employees are also able to deduct 15 percent of their earnings to purchase company stock. That stock price is further discounted to 85 percent of the going market value. Yang and Filo want to encourage their employees to be as interactive as the product they work so hard to create.
Yang and Filo could have walked away as millionaires when the first offer came to buy their company years ago. The likes of America Online and Netscape Communications were all vying for a piece of Yahoo! They chose to stay, however. “We're not in this for the fast money,” says Filo. “Really, what we want is to be part of this industry.”
Like this article? Share it with your friends
|
|
David Filo Jerry Yang Newsletter
Get our free newsletter to learn more about David Filo Jerry Yang and other famous entrepreneurs!
|
|
|
Bottom Line
