- Derek Sivers founded CD Baby, an online music store, in 1997 and sold it in 2008 for $22 million. - He discusses focusing on what you truly want (money, legacy, freedom) rather than pursuing others' ideas. Know your goal and optimize for it. - Execution is more important than ideas. CD Baby was initially just a simple payment processor and store for musicians but grew due to good execution over time rather than any revolutionary idea.

1. Derek Sivers sivers.org derek@sivers.org @sivers

2. BACKGROUND:

3. Professional musician

4. Website to sell my CD

5. CD Baby (1997)

6. CD Baby (2007) 200,000 musicians 2 million customers 85 employees

7. CD Baby (2008) sold for $22 million cash

8. CD Baby (2008) sold for $22 million cash … and gave it all away

9. Moved to Singapore

10. Why are you listening?

11. Why are you listening? Dumb luck… … but learned some things

12. WHY ARE YOU DOING?

13. Most people don’t know

14. They imitate others. Go with the flow. Pursuing someone else’s idea Won’t make them happy (or even rich)

15. Deathbed regret: Pursued something that someone convinced you you should want, instead of what works for you.

16. WHAT DO YOU WANT? Money? Prestige? Fame? Leave a legacy? Freedom?

17. Know. Focus. Don’t diffuse.

18. Money? (Refuse fame. Others in spotlight. Just watch numbers.)

19. Legacy? (Like Trump: Put your name on everything. More money if others get to name it.)

20. Freedom? (Refuse responsibility. Delegate everything. DIY = Decide It Yourself, but not Do.)

21. Your compass. Optimize.

22. Side-effects (money, fame, freedom) But know your goal.

23. NOBODY KNOWS THE FUTURE

24. Q: “What’s the future of new media?”

25. Q: “What’s the future of new media?” A: “Nobody knows.”

26. Your business plan is moot.

27. No plan survives first contact with the customer.

28. CD Baby:

29. CD Baby: Payment processor 

30. CD Baby: Payment processor  Store 

31. CD Baby: Payment processor  Store  Distributor

32. Admit: “Nobody knows.”

33. Admit: “Nobody knows.” Ask instead of answer. Learn instead of preach.

34. REVOLUTION?

35. Warren Buffett: “We don’t swing unless it’s a clear home run.”

36. Keep it simple. One thing.

37. CD Baby business model: ask the local record store

38. CD Baby business model: $35 to add $4 per sale

39. 5 years later: “Revolution!”

40. Love ≠ Romeo & Juliet

41. Revolution ≠ War & blood

42. Revolution = simply serving people better

43. Revolution = uncommon sense

44. IF NOT A HIT, SWITCH

45. 12 years trying everything

46. CD Baby = hit song

47. Felt the difference. Advice?

48. If people aren’t LOVING what you’re doing, STOP! Don’t persist. Don’t push it.

49. When you’ve got something great, you’ll know. They’ll be freaking out.

50. Anything less than “OMFG! Yes! I want to pay!” STOP. Write a new song.

51. Success comes from persistently improving and inventing

52. NOT persistently pushing what’s not working

53. VERSION 0.1

54. Music recommendations?

55. First CD Baby: - showed CDs - add to cart - emailed me the info

56. First CD Baby: - showed CDs - add to cart - emailed me the info Profitable in 2nd month

57. If you’re not launching too soon, you’re launching too late.

58. IDEAS vs EXECUTION

59. “I’ve got this killer idea!”

60. “I’ve got this killer idea!” (sign NDA to hear it)

61. “Online dating with music!”

62. “Online dating with music!” (That’s it! You make it. 50%)

63. IDEA
-1 = bad idea
1 = weak idea
5 = average idea
10 = good idea
15 = great idea
20 = amazing idea

64. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution

65. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution
To make a business, you need to multiply the two.

66. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution
Amazing idea × no execution?
$20

67. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution
Good idea × good execution?
$1,000,000

68. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution
Amazing idea × great execution?
$20,000,000

69. IDEA
EXECUTION
-1 = bad idea
$1 = no execution
1 = weak idea
$1000 = weak execution
5 = average idea
$10,000 = average execution
10 = good idea
$100,000 = good execution
15 = great idea
$1,000,000 = great execution
20 = amazing idea
$10,000,000 = amazing execution
I don’t want to hear ideas.
I just want to see the execution.

70. THE MOST SUCCESSFUL THINGS WE DID AT CD BABY

71. Answered phone on 2nd ring

72. From: CD Baby loves Sara <cdbaby@cdbaby.com> To: sara@gmail.com Subject: CD Baby loves you! Personalized email headers

73. Changes need pizza

74. Customer comments sent to musicians

75. Special requests with order (including cinnamon gum and squid)

76. People remember you more for the little ways you make them smile, than all the business-school stuff you do.

77. Eccentric American?

78. Eccentric in America, too. (that’s the point)

79. So unusual (remarkable) that everyone tells their friends.

80. Be shockingly unique. Use uncommon sense.

81. Derek Sivers sivers.org derek@sivers.org @sivers