Lessons from Rich Barton

Rich Barton, the visionary entrepreneur behind Expedia, Zillow, and Glassdoor, has fundamentally reshaped the internet landscape by empowering consumers with information. His career is a masterclass in identifying industries ripe for disruption and building transformative companies.

On Empowering the People

At the heart of Barton's philosophy is the concept of "Power to the People," a belief in democratizing information to level the playing field between consumers and established industries.

"My whole career has been about identifying those transition points where technology was going to rewrite the rules, where it was going to give power to the people." [1][2]
"Putting barriers between people and information is unsustainable in the world of technology." This was his realization when, as a Microsoft employee, he couldn't see the travel agent's screen.
"There is no industry where we the people, we consumers, don't want to have more information at our fingertips so that we can be better informed." [3]
"I love the energy that comes from giving power to people, regular people, and let them take on the machine and break down the walls." [4]
"Revolutionary companies give power to the people, which they use to disrupt entrenched incumbents and usher in a new order." [5]
"I tend to think that the upsides of giving power to the people dramatically outweigh the downsides. Dramatically." [6]
"Giving people voice who didn't have voice is good. Giving people information who didn't have information is good. Giving everyone the ability to be a publisher, and not just the elites, is generally very good." [6]
Learning: Barton's core business strategy involves identifying information asymmetry in large, opaque markets and using technology to bring transparency. [5]
Learning: The "Power to the People" mantra is not a political slogan for Barton, but a technological one, driving the creation of his major companies. [4]
Learning: His companies are built on the premise that when consumers have access to the same data as the professionals, they can make better decisions for themselves. [7]

On Big Ideas and Taking Risks

Barton is a proponent of "swinging for the fences" and setting "Big Hairy Audacious Goals" (BHAGs) to inspire teams and drive innovation.

"It is just as hard to build something small as it is to build something big." [8]
"Encouraging employees to swing for the fences can have extremely valuable results." [8]
"Off in the distance you need a mountaintop that you're trying to scale. That's what I think pulls you through the wall."
"I had this behag this big hairy audacious goal uh that was become the largest seller of travel in the world someday."
"We need to encourage risk-taking in our society. Risk-taking teaches us how to achieve success by working around obstacles." [8]
"With risks of course, there also always comes failure. And that's good, too. With every miss, there's a learning one can take away to make their effort stronger, better, faster the next time." [8]
Learning: Set near-term "BHAGs" for your team. For Zillow's first director of communications, the goal was to attract one million users per month by month six, without a dollar of marketing spend. [8]
Learning: A BHAG should be a long-term, 10-to-25-year goal that is guided by a company's core values and purpose. [9]
Learning: Don't punish failure. When a product idea flopped at Microsoft, Barton's manager asked, "What's your next big idea?", which became a foundational experience for his leadership style. [10][11]
Learning: The power of a BHAG is that it gets you out of thinking too small and creates a sense of urgency. [12]

On Leadership and Company Culture

Barton emphasizes the importance of a strong, innovative culture where employees are empowered to contribute their ideas.

"Leadership means continuing to steer the boat even when it's foggy. It's very easy to be inert and not make decisions." [1]
"Great companies are those that foster a culture of internal entrepreneurship or, let's make up a word, 'intraprenuership.'" [8]
"Having a company where there is an explicit or implicit class system amongst employees is no bueno."
"You don't want people who are going against the grain... you don't want people derailing the company." [13]
"It's the why that brings teams together. It's the why that pulls you through the hard times."
"I actually think in stormy weather, it's when leaders are the happiest. It's when the value of what we do as leaders is high."
Learning: A leader's role in a crisis is to be a "ballast weight," providing stability and clear communication.
Learning: As a company grows past the "Dunbar unit" of around 150 people, you can no longer know everyone, and more structured processes become necessary to maintain culture.
Learning: A company is like a wheel with spokes; all functions (engineering, marketing, finance, etc.) must be equally strong for the wheel to turn smoothly.
Learning: Build a team of people you've worked with before. The founding team of Zillow was composed of people Barton had worked with at Expedia.

On Innovation and Disruption

Barton's career is defined by his ability to see opportunities for disruption where others see established norms.

"Most entrepreneurial opportunities are built out of frustration." This was the genesis of Expedia, born from his frustration with corporate travel agents.
"The Zestimate is very provocative and personal and a little voyeuristic." This was by design, to generate buzz and drive engagement. [3]
"Points are more provocative than ranges." This was the reasoning behind the Zestimate providing a single number rather than a price range for a home's value. [3]
"I am a person who thinks about catalysts for change, for real revolution, for real technology-driven revolution." [1]
Learning: The success of Expedia and Zillow demonstrates how empowering consumers with better data can create tremendous business opportunities.
Learning: The creation of the Zestimate was a pivotal moment for Zillow, driving massive user engagement and establishing the brand. [14][15]
Learning: Provocation can be a powerful marketing tool. The Zestimate's controversial nature was a key part of Zillow's launch strategy. [3]
Learning: Find a broken system, build a provocative solution, speak to the consumer's emotional needs, and ignore the gatekeepers. [10]
Learning: Don't be afraid to challenge incumbents, even if they are powerful. The transparency brought by Expedia and Zillow forced travel and real estate agents to adapt.
Learning: The "two geeks in a garage" startup story is becoming less common. Today's startups need a full team of experts in marketing, finance, and operations to break through the noise.

On "The Great Reshuffling" and the Future of Work

In response to the COVID-19 pandemic, Barton coined the term "The Great Reshuffling" to describe the profound shifts in how and where people live and work.

"This crisis is causing a great reshuffling. It's making people move to different places and work in different ways." [1][16]
"People are rethinking where they live and how they live. Do they have a home office? Do they want a yard? How close to work do we want to live?" [17]
"I think of this concept as 'faster to the future.' I believe that this awful occurrence, this crisis of a pandemic, has also created a massive opportunity for all of us to get faster to the future." [17]
"We're not going to just go back to the way things were. This is a tectonic shift that we expect to play out for years to come." [18]
"I'm able to teleport around the world and drop in on any meeting. I'm meeting more new people and feeling closer to my team than I've ever felt." [2]
Learning: The pandemic has accelerated the adoption of technologies that were already in development, compressing years of change into months. [16]
Learning: The shift to remote work has given people more flexibility to choose where they live based on personal preferences rather than proximity to an office. [19]
Learning: This "Great Reshuffling" presents a significant opportunity for businesses that can adapt to these new patterns of living and working. [18]
Learning: Remote work tools have proven to be incredibly effective, enabling a more dynamic and connected work environment. [2]
Learning: The value of home has become clearer than ever, with people spending more time there and re-evaluating their housing needs. [18]

Learn more:

Lessons from Rich Barton

On Empowering the People

On Big Ideas and Taking Risks

On Leadership and Company Culture

On Innovation and Disruption

On "The Great Reshuffling" and the Future of Work

Written by Antoine Buteau

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