57: Erik Allebest - From 0 to 150 million ARR - The Chess.com story
05/12/24 • 72 min
Summary
Chess.com has grown from being a simple chess service to a thriving 150 million ARR business. The company has focused on making chess accessible to everyone through services around a product that hasn’t changed in centuries.
We touch on the challenges of scaling a company and the role of titles and leadership in an organization and how many times Erik wanted to give up in the process.
Erik talks about the need for passion and love for the product, and the importance of hiring people who align with the company's mission.
Takeaways
Chess.com has expanded its user base beyond the chess community by making chess accessible to everyone instead of just pros.
Titles should not be the focus, and it's more important to hire people who are passionate and aligned with the company's mission more than anything else
Finding a balance between managing the company and staying involved in the product is key for being a CEO at a scale of 500 people and more.
Sound Bites
"Anyone can have a relationship with chess. It doesn't have to be old white guys in suits. It can be all genders, all ages, all races, all countries, all intellectual capacities. Chess is for everyone."
"Chess.com could not only serve the community, but we could grow the game and change the definition of who identifies as a chess player."
"Our next phase as a company is to be an engagement-focused business and drive revenue to invest in building the game and driving cooler media."
"Making money is just the fuel for the mission"
Chapters
15:39 Expanding the Chess Community
30:08 The Role of Growth Teams in Retention and Value Creation
37:03 Understanding User Cohorts and Behavior Tracking
39:21 Driving Revenue Growth Through Churn Analysis
41:29 The Role of Revenue in the Company's Mission
45:02 Using Metrics to Drive Product Improvement
54:04 The Challenges of CEO Responsibilities
01:02:32 Separating Leadership and Management Roles
My Blog / Newsletter: www.leahtharin.com
Linkedin: https://www.linkedin.com/in/leahtharin/
Twitter: https://twitter.com/LeahThar
#productledgrowth
Summary
Chess.com has grown from being a simple chess service to a thriving 150 million ARR business. The company has focused on making chess accessible to everyone through services around a product that hasn’t changed in centuries.
We touch on the challenges of scaling a company and the role of titles and leadership in an organization and how many times Erik wanted to give up in the process.
Erik talks about the need for passion and love for the product, and the importance of hiring people who align with the company's mission.
Takeaways
Chess.com has expanded its user base beyond the chess community by making chess accessible to everyone instead of just pros.
Titles should not be the focus, and it's more important to hire people who are passionate and aligned with the company's mission more than anything else
Finding a balance between managing the company and staying involved in the product is key for being a CEO at a scale of 500 people and more.
Sound Bites
"Anyone can have a relationship with chess. It doesn't have to be old white guys in suits. It can be all genders, all ages, all races, all countries, all intellectual capacities. Chess is for everyone."
"Chess.com could not only serve the community, but we could grow the game and change the definition of who identifies as a chess player."
"Our next phase as a company is to be an engagement-focused business and drive revenue to invest in building the game and driving cooler media."
"Making money is just the fuel for the mission"
Chapters
15:39 Expanding the Chess Community
30:08 The Role of Growth Teams in Retention and Value Creation
37:03 Understanding User Cohorts and Behavior Tracking
39:21 Driving Revenue Growth Through Churn Analysis
41:29 The Role of Revenue in the Company's Mission
45:02 Using Metrics to Drive Product Improvement
54:04 The Challenges of CEO Responsibilities
01:02:32 Separating Leadership and Management Roles
My Blog / Newsletter: www.leahtharin.com
Linkedin: https://www.linkedin.com/in/leahtharin/
Twitter: https://twitter.com/LeahThar
#productledgrowth
Previous Episode
56: Jason Fried - Motivation, forming habits and calendars
Motivation, forming habits, managing time, and why it’s important to know how much you enjoy solving problems with Jason Fried.
Jason is really special to me and a 2nd time guest. Whenever we go at it, there are two worlds clashing in the best way possible. We are both never content with traditions and challenge the status quo; we just often disagree on how to challenge them while we agree on the first principles behind it all.
Our fight about calendars and time management is one of my favorite moments in the entire history of my podcast.
Takeaways
Real-world experience is the best way to learn and develop skills.
Consistency and finding what works for you individually are key to forming habits.
Calendars can be a useful tool for managing time, but it is important to protect one's time and not let others have too much control over it.
New employees at 37 Signals gain knowledge about the market and customers over time rather than being overwhelmed with information upfront.
Metrics should be used in conjunction with observation and intuition to make informed decisions.
Sound Bites
"The best way to learn is to do the work."
"If I'm putting something off for a long time, it's probably because I'm not motivated to get it done."
"The people you hire are pretty much your most important decisions you're going to make in any business ever essentially."
"At the one year point, we have to basically hire you again. This is how we think about it internally."
Chapters
02:02 Understanding and Harnessing Motivation
04:18 The Importance of Making the Right Hiring Decisions
06:16 Forming Habits: Consistency and Finding What Works
16:31 Managing Time: The Role of Calendars and Protecting Your Time
35:15 The Right Size for a Company vs Scaling
55:09 Measuring Subjective Factors in Product Development
58:53 Using Metrics and Intuition to Make Informed Decisions
Jason’s LinkedIn: https://www.linkedin.com/in/jason-fried/
Jason’s Blog: https://world.hey.com/jason
My Blog / Newsletter: www.leahtharin.com
Linkedin: https://www.linkedin.com/in/leahtharin/
Twitter: https://twitter.com/LeahThar
#productledgrowth
Next Episode
58: Andy Johns - Stop. Burnout within High Performers
Summary
Burnout and the pursuit of external validation in tech.
The pressure to constantly achieve and the belief that success will bring happiness and fulfillment is driving some of us into ruin. It almost did with Andy Johns, he was never more successful and unhappier in his life until he his body hit the reset switch.
Top companies, top jobs, top titles. Achieve, achieve, achieve. And yet it’s never enough... A lot of us are chasing external validation so we don’t have to deal with and accept ourselves.
Takeaways
- The tech industry, with its emphasis on high performance and success, often perpetuates the cycle of burnout.
- Removing the masks we wear and being vulnerable with others is important for personal growth.
- Letting out suppressed emotions and desires is a crucial step towards healing and finding our true selves.
Sound Bites
- "The human superpower is the ability to imagine things that aren't real."
- "Not everyone who's succeeding, at least on paper, is doing as well on the inside as they are on the outside."
- "I was seeking something external to myself that would make me feel lovable, whole, and complete."
Chapters
03:42 The Pressure to Achieve and the Illusion of Happiness
09:56 The Importance of Self-Love and Addressing Traumas
15:45 The Tech Industry and the Cycle of Burnout
33:42 The Limitations of Free Will
37:35 Losing Touch with Our Authentic Selves
42:52 Strength in Vulnerability
57:03 Regretting the Delay in Self-Discovery
01:02:11 Depression as a Result of Suppression
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