Outside Industry Advantage

Kevin Ryan shares insights about the advantages of being an industry outsider and how fresh perspectives can lead to successful ventures. His experience with Business Insider and other companies demonstrates that industry experience isn't always necessary for innovation and success.

Key Points:

• Fresh Perspective Advantage:

  • Coming from outside an industry can help challenge established norms
  • Outsiders often question "that's just how it works" mentality
  • Can see opportunities that industry veterans might miss

• Business Insider Case Study:

  • Started in 2007 with no traditional media experience
  • Identified simple problems industry wasn't solving:
    • Traditional outlets weren't updating websites during the day
    • News cycle was still tied to print schedule
    • Search optimization was ignored by established players
  • Implemented obvious but revolutionary changes:
    • Continuous updates throughout the day
    • Publishing incomplete stories with updates
    • AB testing headlines for better performance
    • Focus on search results

• Leadership Strategy:

  • Hired Henry Blodget as CEO despite media industry criticism
  • Valued his fresh perspective and internet journalism understanding
  • Avoided traditional newsroom experience in early hires
  • Changed industry rules instead of following them

• Results of Outside Perspective:

  • Grew to 300 million unique visitors
  • Never spent money on advertising
  • Achieved 11x revenue multiple at sale
  • Eventually gained industry respect and credibility

• Evolution Strategy:

  • Start with different positioning
  • Focus on building audience first
  • Improve quality over time
  • Eventually compete with established players on their terms

The key insight is that being an outsider can be a strategic advantage, allowing you to question established practices and implement obvious improvements that industry insiders might overlook due to traditional thinking.