The PayPal Wars: Battles with eBay, the Media, the Mafia, and the Rest of Planet Earth [Paperback]

Eric M. Jackson (Author)

Book Description

Publication Date: January 1, 2010

When Peter Thiel and Max Levchin launched an online payment website in 1999, they hoped their service could improve the lives of millions around the globe. But when their start-up, PayPal, survived the dot.com crash only to find itself besieged by unimaginable challenges, that dream threatened to become a nightmare. PayPal's history - as told by former insider Eric Jackson - is an engrossing study of human struggle and perseverance against overwhelming odds. The entrepreneurs that Thiel and Levchin recruited to overhaul world currency markets first had to face some of the greatest trials ever thrown at a Silicon Valley company before they could make internet history. Business guru Tom Peters, author of "In Search of Excellence," called the hardcover edition of The PayPal Wars "a real page turner" that featured what he called "the best description of business strategy unfolding in a world changing at warp speed." The new paperback edition will feature updated material and even more insights on the state of internet commerce.

Editorial Reviews

Review

There are over 50 million PayPal users, and about three-quarters live in the U.S.

Over 7,960,000 pages on the web mention PayPal.

Customers use PayPal an average of 35,000 times an hour.

Eric M. Jackson appeared on over 125 radio and TV shows in support of the hardcover edition.

The PayPal Wars won the Writers Notes Magazine Book Award. --This text refers to the Turtleback edition.

From the Publisher

Congratulations to "The PayPal Wars" by Eric M. Jackson, winner of the 2005 Writers Notes Book Award for best business book, winner of the 2005 DIY Book Award for non-fiction, and runner-up in the 2004 USA Book News' Best Book Award for business.

"The PayPal Wars" is not your ordinary business book! Tom Peters -- management guru and author of the classic "In Search of Excellence" -- said this book "kept me up all night reading" and declared it "the best description of 'business strategy' unfolding in a world changing at warp speed." It's been called "an absorbing insider's story" by the Washington Times and hailed for its "engaging narrative [that] reads like a spy novel" by Reason Magazine. With its fast-paced story and an unabashedly pro-capitalist message, "The PayPal Wars" is a gripping and intelligent read from cover to cover.

This candid insider's account shows firsthand how PayPal launched its online payment service and set out to revolutionize the world's currency markets. But when the startup's plucky entrepreneurs found themselves confronting eBay (their #1 source of customers!) as well as organized crime rings, money-grubbing lawyers, and even regulation-happy NY Attorney General Eliot Spitzer, the entire venture takes a turn for the worse.

Order "The PayPal Wars" today and learn how PayPal overcame these daunting obstacles to become the world's leading online payment service and eBay's fastest-growing business division. --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Paperback: 270 pages
• Publisher: World Ahead Publishing (January 1, 2010)
• Language: English
• ISBN-10: 0977898431
• ISBN-13: 978-0977898435
• Product Dimensions: 7.4 x 5.5 x 0.8 inches
• Shipping Weight: 7.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (54 customer reviews)
• Amazon Best Sellers Rank: #454,198 in Books (See Top 100 in Books)

More About the Author

Eric M. Jackson is the CEO and co-founder of CapLinked, a Los Angeles-based startup that connects entrepreneurs and investors. Jackson previously ran the marketing team at PayPal, where he was responsible for the campaign to monetize the online payment service. Following PayPal's acquisition by eBay, Jackson founded World Ahead Media, a publisher that was acquired by WorldNetDaily in 2008.

His book, "The PayPal Wars: Battles with eBay, the Media, the Mafia, and the Rest of Planet Earth," won the Writers Notes Book Award and was hailed by Tom Peters as "the best description of 'business strategy' unfolding in a world changing at warp speed."

An outspoken advocate of personal liberty, Jackson has appeared on Fox News, CNN, ABC News, MSNBC's "Hardball," Comedy Central's "The Daily Show," and numerous other TV and radio programs. He has been quoted in publications such as Forbes, Publishers Weekly, The Wall Street Journal, The New York Times and BusinessWeek.

Jackson has lectured for the Cato Institute and the Reason Foundation, and has been a featured speaker at Freedom Fest and the National Federation of Republican Assemblies. He earned a degree in economics with honors from Stanford University. Visit his website at http://ericmjackson.com or follow him on Twitter at http://twitter.com/ericmjackson.

Most Helpful Customer Reviews

39 of 43 people found the following review helpful

5.0 out of 5 stars An Exciting Business Chronicle August 5, 2005

By R. Hardy HALL OF FAMETOP 500 REVIEWER

Format:Hardcover

Way in the last century, I made my first Internet purchase, from Amazon, and it was so remarkably strange and new that I actually wrote a letter to friends about my experience. Such purchases now are of course nothing to write home about, and the process of paying on the Internet has become itself a big business. In _The PayPal Wars: Battles with eBay, the Media, the Mafia, and the Rest of Planet Earth_ (World Ahead Publishing), Eric M. Jackson gives an insider's view of an important part of the growth into the new world of Internet trade. As the subtitle indicates, there are plenty of battles detailed here, lots of skirmishes with tactics and attempts to guess what the next move of the opponent will be. The opponent throughout the book was the auction site eBay, but a look at the back of the book's jacket will tell you how the battles turned out: "_The PayPal Wars_ is not sponsored or endorsed in any manner by eBay, Inc., or its subsidiary PayPal, Inc." It would seem as if eBay won, but actually, PayPal had made itself so indispensable that the young company was incorporated into the larger one in 2002, acquired for a cool billion and a half dollars. It turns out that how PayPal won is a fine story, exciting in parts, and not just for those interested in the modern business world.

Jackson begins his story with his recruitment to the startup in 1999. He had been an analyst for one of the best-reputed firms in the world, Arthur Andersen, and was invited to abandon his staid but reliable job to come to the fledgling PayPal. He could not find his boss, he had to borrow someone else's computer, and he had no desk. "At least Andersen gave its new hires a place to sit," he grumbled.... Eventually he was given his own place in the ping-pong room, and was given his job in marketing the firm. It was his hunch to use PayPal on internet auctions, and it was a great fit. Sellers included mention of PayPal on their sale pages, put the PayPal logo alongside the pictures of the items for sale, and put clickable hyperlinks that would enable a buyer to go to PayPal to set up an initial account. The main competition came eventually from eBay itself, which started up a similar service of its own, called Billpoint. Much of the story in Jackson's account, and much of the excitement, comes from the battle between Billpoint and PayPal. One would think that eBay would have had a huge advantage in being the auction house that ran its own payment service, and eBay certainly tried to push Billpoint upon its captive audience, making rules about how small the PayPal logo had to be, or arranging that a buyer automatically was diverted to Billpoint rather than PayPal. One time after another, the decentralized and nimble crew at PayPal found ways to change things and win one battle after another.

The war with eBay over, and PayPal part of eBay, PayPal executives started leaving the firm they had brought to success. Part of the reason is that the culture at eBay was different. Managers were older, they tended to value MBAs, and they had one meeting after another. Jackson remarks that the meetings were particularly hard to get used to; the eager PayPal executives enjoyed authority and flexibility, and were able to try new things without the need of getting bureaucratic approval. They had quick responses to whatever eBay threw at them. Jackson himself left, acknowledging that the firm he was leaving was something more like Arthur Andersen than the PayPal he had helped start. Being an entrepreneur was more fun than guiding an already-formed company. And, as this book makes clear, there was a good deal of sheer enjoyment in the hard work, but especially in the thrill of battling with giants. Read more ›

26 of 31 people found the following review helpful

5.0 out of 5 stars Must-read for PayPal mgmt January 15, 2005

By Paul S

Format:Hardcover

This inspiring story of a scrappy startup and its crack team is a must-read for entrepreneurs, business owners, and even PayPal's upper management of today. Even as PayPal grew into a sizable company post-IPO, its irreverent and open culture kept innovation alive and overhead at a minimum, allowing its product development group to get features onto the site with as little notice as a couple weeks. In the two years since the acqusition, eBay's corporate heavy-handedness has systematically ground down the innovative and spirited drive that kept PayPal one step of eBay through the war described in this book. Product lifecycles are lengthening, defect rates grow as technology management short-sightedly cuts QA schedules (see their recent site outages), and strategy is micromanaged by uninformed executives instead of being delegated to those who know the marketplace and the technology. The empowerment of their staff by Peter Thiel, David Sacks, and Max Levchin touted so often in this book is completely gone. If the current trend continues, the eBay community can expect the same oblivious, clumsy decisions made by eBay during the PayPal wars (SYI, Checkout) to be made by the "new" PayPal, instead of real product innovations to help real people.

Make no mistake - while PayPal and eBay's services are highly complementary, their cultures are very different. This book shows how a vibrant, innovative, and merit-based culture emerged in PayPal through a trial by fire. In contrast, eBay's market success was assured nearly from the beginning, making its executive staff lazy and complacent. An inevitable network effect made eBay's expansion so easy that its management could rely on hamfisted corporate tactics to beat competitors - buying out Half....com, raising prices in response to Yahoo Auction's entrance into the arena - and developed a plodding, centrally-controlled product development process that made it utterly unable to compete with PayPal. It's no surprise that PayPal's empowered team of intense, talented individuals beat them off time and time again.

PayPal was once envisioned as great global currency liberator, but having been taking over by eBay, it is being shoehorned into just another mediocre business unit used to serve the auction giant's needs. Read more ›

14 of 16 people found the following review helpful

3.0 out of 5 stars An alternate history... February 22, 2010

By DiamondEagle

Format:Paperback

In an article on the [...] blog by Nick Denton called "An alternate history according to Elon Musk" Elon is quoted as saying the following about this book:

"The only negativity in recent years was due to a book called The PayPal Wars, written by a sycophantic jackass called Eric Jackson. This guy was one notch above an intern at PayPal in the first few years of the company, but gives the impression he was a key player and privy to all the high level discussions. Eric couldn't find a real publisher, so Peter funded Eric to self-publish the book. Since Eric worships Peter, the outcome was obvious - Peter sounds like Mel Gibson in Braveheart and my role is somewhere between negligible and a bad seed. However, to his credit, Peter didn't realize the book would be as bad as it was and apologized to me personally at a Room 9 board meeting at David Sacks's home in LA."

See this link for the full article:
[...]

12 of 14 people found the following review helpful

5.0 out of 5 stars An interesting look into an internet giant November 10, 2004

By T. Alday

Format:Hardcover

Paypal Wars follows the story of its author, Eric Jackson, from his early beginnings toiling away at doomed consultant at Arthur Anderson until he eventually was asked to join a burgeoning startup called Confinity, Paypal's precusor. The book details Confinity's early obsession with electronic money transfer through handheld Palm Pilots. Eventually, looking for ways to diversify their user base, they stumbled upon the cyber-auction haven of Ebay, what better place to showcase their electronic money transfer plans that on a site with millions of users looking for an easy way to send and recieve money? Ebay had other ideas, the book details Ebay's monopolistic tendencies as they did everything within their power to reduce Paypal's influence on their website. In time forces both legal and illegal unwittingly conspired to damage Paypal enough to force Paypal executives to concede the war against Ebay and eventually sell their industry leading company to the auction giant or face a slow monetary bleed until their inevitable demise. Jackson has crafted a story of corporate intrigue and backroom dealings that offers a valuable insight into the mindset and pitfalls that come with starting a business.