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How PayPal went from "top 10 worst business idea" to $87B+
From failure to $87B with one simple change
Dyani Janga
January 03, 2025
In 1998, Peter Thiel, Max Levchin, and Luke Nosek had a big idea: they wanted to let people send money between Palm Pilots (these old-school smartphones).
They worked hard on it, but it just wasn’t working.
Then a man named David Sacks joined the team. Fresh out of Stanford, he saw the problem and convinced the owners to change direction.
His idea?
🗑️ Forget Palm Pilots.
Instead, focus on letting people send money through email.
That small change turned their struggling startup into what we now know as PayPal. And it worked.
By 2002, eBay bought PayPal for $1.5 billion, and the company is now worth an immaculate $87Billion…
The lesson: Sometimes, even the best ideas need a change. Sticking to something just because you’ve worked hard on it doesn’t mean it’s the right path.
Being willing to pivot and making a shift can make all the difference.
👞 Today’s Action Step:
Take a look at what you’re working on. Is there something that’s not quite clicking? What small change could you make that might turn it around?
The next big breakthrough might be closer than you think.
📖 Today’s book bit
Rob Moore
Money loves speed. The longer you wait, the more opportunity you lose.
Book: Money: Know More, Make More, Give More
PayPal was struggling with its initial business model in the early days, but when they pivoted (focusing on allowing people to send money through email), they accelerated their progress and seized a massive opportunity.
They were one of the first companies to get this form of money-transferring to work the right way, and also market it properly.
Turning them into the $87B company they are today.
🚿 Today’s shower thought
What if the secret to success isn’t in working harder on your plan, but in knowing when to abandon it?
P.S. Here is a short article written about PayPal & the Palm Pilot back in 1999:
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