Its going to be a hugey! The unlikely first year of a quirky kiwi startup

Posted by on Nov 22 2018

With over 200 employees and based in 5 countries around the world, Online Republic can certainly hold its own among big New Zealand businesses.  Online Republic’s beginning was humbler, and dangled on the precipice of failure. Despite this, our ragtag company remained both dogged and optimistic about our future. This is the story of how I was swept into that adventure.

Make your decision now or this offer won’t be available anymore.

CarHire4Aussies was an early site targeting Australian travellers to NZ. The header of each page featured unique kiwi/aussie banter.

I stammered on the other end of the phone.

That ultimatum forced a choice: a career as a database engineer, or write code for an unproven start-up. The database job was with an established company and the job paid more. The other offer came from a internet travel start up by two brothers, Mike and Paul Ballantyne. The start up’s novel strategy was to create travel sites for seniors, families, women, and young travellers. Their emphasis was on design and usability. The interview for this job was amazing – we exchanged ideas for nearly 3 hours!

Soon afterwards, doubt crept whether I should accept this job or go for the job with higher pay.

A day later, after I phoned my overseas family (who advised to go with the established company), Mike called. He wanted to know if I was going to take the job. When I told him I had another offer, Mike coolly delivered the ultimatum: “Make your decision now or this offer won’t be available anymore.” So I had to choose from the higher paying job using my qualified skills – or venture into uncharted territory with the scrappy start up.

I made my decision. I told Mike I would take the job. [1]

From coder to business partner in 1 month.

My first day was in a tiny 7m² shared office. At the time there were only there 3 people: myself, Mike and Shantala, our designer. I had no desk, but I fashioned a temporary one by stacking yellow page books as supports and an plywood board as the desktop.  I  was the entire IT team.  It was hot, noisy, and chaotic – but I relished every moment of it.

My job was to quickly launch sites and make them look good.  Though often introduced as employee #1, I was actually the 2nd employee. Paul hired a designer first. Inspired by Steve Jobs, both brothers had sharp eyes for design and a knack for retailing. Before we were Online Republic, we were known as iMallbrands [2] – a reference to Apple’s range of i-products.

As for my skill level, my strength was not in Linux or server architecture.  I started by buying 20 cheap cpanel [3] hosting sites for $5 a month, and it was actually cheaper than local dedicated servers at the time. My work load was heavy, I had little time to learn server basics.  It was messy and total kludge – however we went live and to market at lightning speed (and even the multiple servers provided a hokey form of redundancy).

Our first sites went live in a month. During that time Paul and Mike saw something in me. They offered me shares in the business. At the time, I had no clue of what ‘skin in the game‘ meant. From my experience, you were either a boss or worker. It took time to sink in, but when it did, I was forever grateful for this gift.

Crisis; Crises Averted

The ‘Hub’ Concept was a simple doorway page that led to our different niche sites – the concept was borrowed from the ‘Bang Bros’ network.

Though we launched car rental sites in rapid succession, they were not able to cover costs. The seed money that Mike and Paul invested depleted rapidly. We stopped advertising car rentals in August 2005. We needed a new source of income, and needed it fast.

An insight for a new revenue stream came from one Ryan Posa, who then worked for the THL Campervan Rental division. He urged us we needed to get more involved with motorhome rentals.  While we dabbled in campervan bookings, we never gave it our full attention.   We switched emphasis from car rentals and launched a new range of campervan hire sites.

Another contribution to our success was the creation of a thumbnailed doorway site we call the ‘Hub’.  Paul actually got the idea for our Hub from an an erotic site network: it was gateway page to other ‘niche’ sites featuring easy-to-click thumbnail image links. Using a similar strategy, used a gateway site with thumbnails for each travel site we owned. It was an effective strategy in Adwords until they banned doorway pages a few years later.

With our new supply of campers and hub strategy we effortlessly got traction in the Australasian market. Our business grew over 250% from August 2005 to October 2006 off the back of this new division. Incredible high conversion online booking rates were owed to the new established hub strategy.

Paul exclaimed ‘It’s going to be a hugey!‘ That became our favourite rally cry in times of success.  Now we had proof that our ideas worked and we could run a sustainable business.

The aforementioned Ryan Posa was also not forgotten. He later joined to head our cruise division in 2008.

Of Stool Samples and Noobies

Our technology stymied our growth. Or more precisely, that I had built it. With more and more bookings coming in, my 8 wired system was inefficient for the long haul.  Paul, Mike and I had long conversations about this. Put simply, it had to be rebuilt.

We put our heads together and designed the ultimate booking system – one that could handle bookings, suppliers, our multitude of websites, reporting, finances – the whole 9 yards. We dubbed the system ‘The Generator‘.  It was to be built in-house so we owned the technology. My job was to find the programmer to build it to our exacting conditions.

It was now October – we had a deadline to complete this January 2006. In hindsight, this was a ridiculous completion date. This type of software can take 6 months to a year to build. I scrambled to find someone locally and via international freelancer sites. After 3 weeks, I finally found someone with a good profile who could deliver The Generator by January 1st 2006.

We waited for an eternity.

He would only sporadically answer our emails saying he was almost done.  Finally we had enough and asked him to turn in what he had. He turned in 15 lines of code on php which was just a list of variables. It was just a few short weeks before Christmas.

We fired him. Mike took his contract and smeared peanut butter on it; the effect made it look like excrement. For laughs, we kept the ‘fecal’ document on our desk for years . Whenever someone did a poor job it became know as getting ‘handed a stool sample‘.

I immediately reviewed the emails I sent to internet freelancers. I gave each programmer a simple task to test their skills. Most didn’t respond. Those who did, worked too slowly or did a poor job. There was communication from a programmer in Russia which I revisited. Responding to my simple task, he wrote:

“This is job for noobie. Write back when you have real job.”

I informed Dmitry Ruban of Moscow that he had a real job now: build The Generator.

120 hour + work weeks and 1000% Growth

This was our growth curve after launching The Generator in April 2006.

January – April 2006 meant 120 hour+ work weeks. Everything was a blur, I have but few memories outside of work. I slept only 3-4 hours a day; filling the remainder with work and caffeine. A friend asked me to shoot a wedding in February, to which I should never have agreed. I overslept the wedding day even though my alarm clock blared for 3 hours! Its doubtful I will ever be employed as wedding photographer again.

There was good news however. Dmitry was the genuine article. We reset the due date to mid April.  He knew exactly what we were trying to achieve and we all worked relentlessly together to meet that deadline.

Money was tight and our Motorhome rental stock was depleting out even though demand was high. We needed to get the system live so we could relaunch cars with the hub.

On the evening of Friday, the 14th April The Generator was launched. Car and camper ads went live in Australia, New Zealand, and Ireland. Finally it meant sleep!

I woke to Mike’s call on that Saturday morning. ‘Our bookings are on fire, ol’ son!‘ – we had in fact got more bookings in 1 day than we did for the entire previous month.  However, what we didn’t know is that it was Easter, we had all worked so hard that we completely forgot a public holiday was coming up.  The result was both boon and bane; we manage to get an abundance of last minute bookings. However, our system had no live availability – which meant that we had to cancel the majority of the bookings!

Despite the cancelled bookings, The Generator proved robust. By June our bookings had grown over 1,000%!  We were able to open our markets to North America and Europe that year. Though no system is perfect, The Generator helped us scale quickly. Not only did it host our internal data, but at one point it controlled over 4000 e-commerce sites around the world.

Not only that, our ad spend caught the eye of Google by growing 4000% from April to June. They reached out to us and put us in touch with some of the smartest people I have ever had the pleasure of working with. Those early years, Google proved valuable collaborators to take our business up to the international level.

 Ants Marching and the Gentle Art of Mojo Tampering

Our tiny team gathered more important contributors that year.

In January, Paul had hired Rohan “Marxi” Marx, a local Waikato legend [4], to ramp up our sales. At the time, Rohan worked from Hamilton and commuted to the office a few times a week. A favourite early Marxi was that of fighting a rampant ant infestation in our office. Nowhere was safe and we had no idea how they travelled up to our 10th floor office. We found the source: they entered and exited though the heatsink on Rohan’s laptop. Thes ants hitched a ride from the backwoods of the Waikato. We vacated the office for an hour of fumigation.

Later Rohan would became our General Manager and shareholder, his doggedness ensured our business survived during tough times.

Later in 2006, I put out an ad on my personal website [5] looking for a new programmer to join the ranks of Dmitry and myself. I received several applications from around the world but there was one that stood out to me. Sadly, I don’t have the original email anymore – but here is the opening sentence to the best of my memory:

“Hi – I don’t want to mess up any of my good mojo but I really want work to for your company. I can program and am skilled at cleaning toilets. “

His email had me and everyone in the office  in hysterics, so we had to give him a chance. The sender, Matej Drobnic did remote work his farm in Slovenia and eventually moved to New Zealand and became a key component to our success; he became our Chief Technical Officer as well as a shareholder.

He Tangata

When the company company sold in 2016, our fellowship slowly came to an end. Sue, who did so much amazing work behind the scenes left in 2016. Mike gradually reduced his hours and left in 2017. Rohan, Matej and Dmitry have signaled the end of their tenure in 2018.  That leaves Ryan and myself as last stakeholders linked to our origin.

As for myself, I now work remotely one day a week, a difficult compromise so I can live the next chapter of my life in Canada. Before I left, I happened to be in the Vero Centre in downtown Auckland. On the ‘wall of words’ I spied familiar quote. Though I’ve seen it many times before, this time it sent a chill through my body:

He aha te mea nui o te ao
He tangata, he tangata, he tangata

What is the most important thing in the world?
It is the people, it is the people, it is the people

Our founding team came from the far corners of the world, had different cultures and beliefs. If we all met previously, its unlikely that there would be any common interests! Paul instilled the ‘bus factor’ [6] principle to all stakeholders. Though we were valuable, we should never be so indispensable that if we got run over by a bus, the business would collapse. The ultimate proof of concept came after Paul’s terminal cancer diagnosis forced him to step down in the middle of 2010. No longer having our visionary leader at the helm, it forced us to step up. A year after the diagnosis, our business grew over 140%.  Sadly, Paul left us in January of 2011, within 6 months of his diagnosis. [7]

We all put aside our differences to make this team work, whole of business became greater than the sum of its parts. Though not without pain, by making ourselves smaller, we empowered our future leaders to shine.  In the end it wasn’t a clever idea or piece of technology that made us tick. Our business became bigger than ourselves, allowing for exponential growth that none of us could achieve through our own volition.

Before my flight to Vancouver this year, I walked around our new Auckland office [8]. There were so many people that I didn’t recognise. A friendly face in the kitchen asked me if I was a new person. I returned the smile and nodded as they explained to me that this was the best job they ever had.

In the end, it is the people that are most important.

 

———————-

 

Footnotes:

  1. Later on, Mike told me he felt badly about forcing that decision on me. However, I never regretted the push to bring me aboard; I made that decision with my heart instead of my head and it has made all the difference.
  2. Archive of ImallBrands: Archive.org.
  3. What is Cpanel?: WPbeginner.com.
  4. waikatos msu lead singer a millionaire after webjet buys online republic: Stuff.co.nz.
  5. Talented Programmer Wanted: Vonnagy.com.
  6. The Bus Factor: Wikipedia
  7. A Wallet, Some Snappage, and the Northern Lights: OutlierCartel.com.
  8. Golden age of travel: Online Republic: ArchitectureNow.co.nz

Juniper Squeak-Easy

Posted by on Oct 05 2018

On the 24th of July, we rescued an abandoned baby Muscovy duck on our farm in Tahsis. For 4 months, the joy that Juniper brought in our was ineffable. Being around Juniper always put a smile on our faces and also on others. She is cheeky Muscovy and there were enumerable antics that this duck got up to. Also, Juniper was the impetus for us to go on a vegetarian diet too – so much change that came from this bundle of fluffy feathers. Unfortunately our farm became unsafe from wild animals (including bears, minks, and eagles), and furthermore, her sibling ducks were being raised for meat, and not eggs. Furthermore, we had to return back to New Zealand, so it became apparent we had to find a new home for Juniper. Eventually we found a new, loving family for Juniper in the neighbouring village of Gold River.

Juniper nickname was also ‘squeaky’, when she was tiny she was very vocal with a soft but vibrate ‘peep peep’. So we dubbed her ‘Juniper Squeak-Easy’! Here are some of her glamour shots:

Beware of eating bananas whilst riding bicycles

Posted by on Aug 20 2018

This is just a random image I drew of a friend who likes bananas. Maybe I was reading Dune. Maybe I saw leaping french bulldog video. I used sketchbook and a wacom tablet to draw this, this is the first ‘big image’ I drew with this program, which was done last year.

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Changes coming to Apocalyptic Post!

Posted by on Oct 14 2017

For several years Apocalyptic Post has been has been a fun outlet for my musings on the Apocalypse. I’ve moved on and this site will change hands to interesting new ownership. Keep posted for changes in the coming months!

How the 10 richest cities of the world will fall – Post Apocalyptic Maps of Climate Change.

Posted by on May 02 2016

The 10 most expensive cities in the world might become of the 10 least livable cities in the near future. This has less to do with real estate prices and more to do with the old adage “location, location, location’. The all of the 10 cities below are will be effected by rising sea levels given their close proximity to the ocean. Below is a list of the top 10 least affordable cities in the world as present by Demographia’s 2015 report:

Least Affordable Rank City Country
1 Hong Kong China
2 Vancouver Canada
3 Sydney Australia
4 San Francisco United States
5 San Jose United States
6 Melbourne Australia
7 London Great Britain
8 San Diego United States
9 Auckland New Zealand
10 Los Angeles United States

Each segment below looks at a certain change in sea level. While there is agreement that sea levels will rise, there is debate about how much it will rise. Here is a chart from IPCC.CH site(Intergovernmental Panel on Climate Change) which measures such things:

Frozen water   Area   Ice Volume (106 km2)   Potential Sealevel Rise (SLE) (m)g  
Snow on land * 1.9–45.2   0.0005–0.005   0.001–0.01  
Sea ice   19–27   0.019–0.025   ~0  
Glaciers and ice caps 
Smallest estimate 0.51  0.05  0.15 
Largest estimate 0.54  0.13  0.37 
Ice shelves 1.5   0.7   ~0  
Ice sheets   14.0   27.6   63.9 
Greenland 1.7  2.9   7.3 
Antarctica 12.3  24.7  56.6  
Seasonally frozen ground * 5.9–48.1   0.006–0.065   ~0 
Permafrost * 22.8   0.011–0.037   0.03–0.10  

Northern Hemisphere

The worst case scenario is when all ice melts bring up sea levels potentially to 65 meters. The image below is a graphic from John Englander’s youtube presentation ‘Hide Tide on Main Street‘.

Some important and interesting points about this post:

  • All cities above except for London are coastal cities.
  • In nearly every instance Airports are the first to be flooded.
  • I’ve converted property prices to USD for uniformity’s sake.
  • Wherever possible, I’ve tried to express property prices to square foot for uniformity’s sake. However, different measurements are used in different countries so I used what ever information I could find.

Lastly, this is not a scientific research, I am just doing my best to compare where coastline flooding effects some world’s richest cities. I would highly encourage to come up with your own conclusions about the veracity of these findings.

Hong Kong

Hong Kong will start start having some serious problems at a  7 meter sea level rise:

The brunt of this will on the New Territories Peninsula. Kowloon, where property prices average above 1200 per square foot, will also see flooding. In the Islands Distract, you will need to make sure your Airbus has pontoons to land, as it will be completely submerged if a system of dikes is not built. You might only see the mouse ears (instead of the whole mouse) as Hong Kong Disneyland will be mostly underwater.

Hong Kong Island, which is over $2000 USD per square foot, will have trouble around its forshore, particularly around Victoria Harbour.

Vancouver

Vancouver will start seeing problems at 3 meter rise – a 20 meter rise will be catastrophic.

At 3 meters, Vancouver Airport, Richmond, Delta and Surrey will have serious problems. In fact during questioning on the video High Tide on Main Street, a person comments that the airport and Richmond are essentially ‘canaries in a mineshaft’. Anywhere around the Fraser river valley will have to contend with extreme flooding.  Granville Island will become at best a sand bar with a 5 meter rise.

The most expensive parts Vancouver, which include Kitsilano, Downtown and Mt Pleasant, where property prices are around $375 a square meter, will be submerged at 20 meters.

Although the Fraser Delta might look take the brunt of damage from sea level other parts are not immune. Severe flood damage took place on the Vancouver north shore in 2014; there major rivers area including Capilano River, Lynn Creek, Seymour River as well as several lakes and inlets that could damage the area from meltwater.

Sydney

The map below show Sydney, Australia with a sea level rise of 5 meters.

At the pictured level, Kingsford Smith Airport is mostly underwater, as are most commercial sections of Port Botany.

At 7 meters, most of the foreshore around Sydney Harbour is underwater, including Darling Harbour, the Rocks and Sydney Opera House. The following expensive suburbs are also affected, I’ve shown median house prices here:

In addition secondary considerations about erosion should be considered, especially on Sydney’s southern coast. There is already concern about the Sea Cliff Bridge, and many other parts of South Sydney would be in danger from higher sea levels.

San Francisco

At 7 meters, San Francisco will start to reel from flooding.

ATT park will become a part of McCovey Cove. Marina District, North Beach, Mission Bay, Dogpatch, all where properties can fetch well above $1000 per square foot will be mostly underwater. South San Francisco, SFO and all the way to Palo Alto with high waters. Across the bay, Oakland will be having problems of its own.

While the map above depicts problems in the bay, the coast areas will have their own set of issues. Ocean Beach on the west San Francisco is no stranger to erosion, as the photo below depicts. How much worse will it get when the sea level rises?

San Jose

Just a bit south of San Francisco, San Jose will start feeling the effects of sea rise at just 1 meter get dramatically worse after that. The map below shows San Jose under 3 meters of water.

North San Jose, where property prices are over $500 per square foot would be the first part of San Jose to be effect. Larry Page and Sergei Brin will be taking their kayaks to the the Googleplex. Neighbouring Palo Alto where homes can be over $1000 per square foot is also in danger of being submerged.

Other features such as Moffett Federal Airfield, a Google’s own airport, Shoreline Amphitheatre and several parks and refuges will also be under water.

Melbourne

The map below shows Melbourne submerged beneath 9 meters of seawater.

How will Melbourne’s most expensive suburbs fare? Here are some expensive Melbourne suburbs that are affected by rising sea levels.

  • East Melbourne, roughly $630 per square foot, would see flooding around the cricket grounds
  • Albert Park, roughly $530  per square foot. This suburb would be almost completely under water.
  • Cremorne, about $380 per square foot, is particularly exposed around the banks of the Yarra river.
  • St Kilda West – approximately $370  per square foot, would also be mostly submerged

Melbourne Tullamarine Airport, is one of the few airports in this post that is not affected; however, Avalon Airport which is further southwest on the coast is under water.

London

The only non-coastal city in this post, London, will still see significant damage from an increase in sea level. The map below shows a 7 meter rise.

The Guardian has posted a heatmap of the most expensive properties in London in 2014. Here are some of the most expensive areas that may flood:

  • Nine Elms, South Lambeth:  $2600 per square foot
  • Kennington, Southwark, Bermondsey, Wateroo: $2350 per square foot
  • Wandworth:  $1400 per square foot
  • Rotherhithe, Surrey Docks:  $1360 per square foot

Well known structures and landmarks such London City Airport, Canary Wharf, City Hall, Shakespeare’s Globe will all be affected.

Below is an image from the BBC which demonstrates the flooding that can take place on the River Thames:

San Diego

The map below shows the effects of a 5 meter rise in sea level in San Diego.

According to Trulia, here are some of the highest valued suburbs of San Diego affected by a rise in sea levels:

Mission Beach:  $880 per square foot.
Ocean Beach: $673 per square foot.
Middletown: $572 per square foot.
Mission Hills: $532 per square foot.

In addition to the suburbs above the following areas and landmarks are also impacted by rising sea levels: SAN Airport, Naval Base Coronado, Fiesta Island, Seaworld, Old Town and parts of the San Diego River.

Auckland

Largest city in New Zealand is shown below under 7 meters of seawater:

Unfortunately, I couldn’t find the price per square foot, but here are the most expensive suburbs that will be troubled by a rise in seawater:

  • Herne Bay: Average home value: $1.18 m
  • St Mary’s Bay: Average home value $1.09 m
  • Remuera: : Average home value $ .98 m
  • Westmere: Average home value: $ .87 m
  • Devonport: Average home value $ .82 m

Currently, the city is developing the Wynyard Quarter. Currently the apartments being built there are valued at up to $3.2 million dollars. If sold this area could be one of the most expensive area in Auckland. Unfortunately, this is also the one of the most precarious areas as result of being land reclaimed from the sea. Maps indicate that the entire waterfront area including the Wynyard Quarter, Viaduct, Ports of Auckland and Judges Bay will all experience high levels of flooding.

Other areas affected include Auckland Airport, music venue Vector Arena and potentially the newly renovated Britomart area.

Additional maps of Auckland can be find on http://www.musther.net/nzslr/. These maps show scenarios of 10, 25 and 80 metre sea level rises.

Los Angeles

Our final city, Los Angeles is mapped below at 7 meters below level.

Seal Beach: $462 per square foot.
Huntington Beach: $440 per square foot.
Newport Beach: $747 per square foot.
Marina Del Ray:  $717 per square foot.
Venice: $1,063 per square foot.

Los Angeles is interesting because its further inland. Property prices for some of affected are not a high as the cities listed above. At a 7 meter sea level rise, LAX airport is only has minor flooding, it doesn’t seem to get flooded out until about 30 meters. While the airport may be more resilient, the Ports of Los Angeles are not: Terminal Island will be nearly completely underwater at 7 meters.

So what can we learn from all this?


The richest areas are amongst the first go.
Its simplye to see that coastal areas are most desirable for the affluent, however these areas are the first to be affected by climate change.

Sea front lands are essentially leasehold lands.
This something that is emphasised by John Englander who wrote High Tide on Main Street. Lands near the ocean have a ‘limited’ timespan, unless serious engineering feats are made. Its better to consider these as leasehold lands.

Airports are at danger in nearly all locations. Because most airports require flat land that is commonly found at sea level (and often close to the ocean), this means that in most of the cities listed here are in danger.

Mitigate vs Adaptation.
Good news here that there are ways we can mitigate the effects of rising water. Adaption, on the other, will a rather expensive way to deal with this: forcing our will on the changing climate will be both expensive and impractical. Find ways to lessen the blow and work around rising sea levels is most pragmatic approach.

See excellent video below by John Englander which influenced this post: