Famous Growth Hacks Used by Airbnb

Summary

In 2007, Airbnb co-founders Joe Gebbia and Brian Chesky turned their financial struggles into a business opportunity by offering air mattresses and breakfast to conference attendees. Despite early challenges, they used creative marketing hacks, including selling collectible cereal during the 2008 presidential campaign, securing Y Combinator's backing, and taking professional photos of listings. Their most pivotal growth hack involved cross-posting Airbnb listings to Craigslist. These strategies helped Airbnb grow from a small startup into a global lodging giant. The founders' creativity and viral marketing expertise were key to their success.

Takeaways

• 🏠 Joe Gebbia and Brian Chesky struggled to pay rent in 2007 and launched AirBedAndBreakfast.com to rent out air mattresses during a conference.
• 💡 They charged $80 a night for a stay on an air mattress with breakfast (Pop-Tarts), providing an affordable option for attendees.
• 💸 Despite attracting some customers, convincing people to stay in strangers' homes was challenging, leaving the founders in credit card debt.
• 📈 The 2008 Democratic National Convention in Denver helped AirBedAndBreakfast gain traction as there were more attendees than hotel rooms.
• 🥣 To raise money during the 2008 presidential campaign, they sold limited-edition cereal boxes (Obama O's and Cap'n McCain's) for $40, raising $30,000.
• 🚀 Paul Graham, co-founder of Y Combinator, accepted Airbnb into the accelerator program, believing in their ability to sell unconventional products.
• 📷 In 2009, to improve New York City listings, the founders personally took professional photos of hosts' properties, doubling revenue overnight.
• 📤 Airbnb executed a clever growth hack by automatically cross-posting their listings on Craigslist, attracting more users to their platform.
• ⚡ Craigslist eventually blocked this cross-posting hack, but by then, thousands of users had discovered Airbnb and continued using it.
• 🌍 Airbnb’s rapid growth was driven by creative growth hacks, viral marketing, and bold strategies, making it a global success with millions of nightly users.

Q & A

What was the initial problem that inspired the creation of Airbnb?

Joe Gebbia and Brian Chesky were struggling to afford their increasing rent in San Francisco, which led them to come up with the idea of renting out air mattresses during a major conference in the city.

How did the founders first test their idea for Airbnb?

The founders bought three air mattresses and created a website called airbedandbreakfast.com, offering accommodations for $80 a night, which included an air mattress in their loft and breakfast in the morning.

What was the initial response to their air mattress rental idea?

Though the offer wasn’t glamorous, three people accepted the offer and were happy to save money on lodging. However, convincing more people to stay in strangers' homes was initially a challenge.

How did Airbnb's founders raise money after going into credit card debt?

In 2008, they created limited-edition cereal boxes called 'Obama O's' and 'Cap'n McCain's' during the U.S. presidential campaign, selling them for $40 a box. This raised $30,000 for Airbnb.

What role did Y Combinator play in Airbnb's development?

Paul Graham, co-founder of Y Combinator, accepted Airbnb into the startup accelerator after seeing the founders’ creativity with the cereal box sales, believing they could convince people to stay in strangers' homes.

What was Airbnb's first major growth hack?

In 2009, the founders noticed that Airbnb listings in New York City had poor quality photos. They rented a $5,000 camera and took professional photos of all the properties, which doubled their weekly revenue in NYC overnight.

What was Airbnb's second significant growth hack?

In 2010, Airbnb created a way to cross-post all their listings to Craigslist, a popular platform at the time. This increased visibility and attracted a large number of users to Airbnb’s platform.

How did the Craigslist growth hack benefit Airbnb?

By cross-posting listings to Craigslist, Airbnb reached hundreds of thousands of users who might not have otherwise known about Airbnb, significantly expanding their user base before Craigslist disabled the feature.

Why did professional photography play a crucial role in Airbnb's success?

Professional photography helped Airbnb listings stand out from others, especially when compared to low-quality images. This not only enhanced user trust but also increased bookings and revenue.

What essential traits helped Airbnb’s founders build the company into a global success?

The founders’ creativity, knowledge of viral marketing, and bold use of growth hacks were crucial to Airbnb’s success, allowing them to grow the company despite early financial challenges.