Enterprise

Jeff Bezos Begged This Startup Founder To Work For Amazon And Changed His Life Forever

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Jeff Bezos, Andreas Weigend, David Selinger
Amazon's Jeff Bezos, Andreas Weigend, David Selinger in 2003  David Selinger

Sometimes, a person has to be badgered into making a brilliant career choice.

That's what happened to David Selinger.

Today he is cofounder and CEO of a cool big data company called RichRelevance, backed by $58 million from investors like Greylock Partners' David Strohm and Tugboat Ventures' Dave Whorton.

But it almost didn't happen because he said no, repeatedly, to the job at Amazon that led him here.

The story begins in 2003. That's when Selinger, a.k.a. Selly, had built an ecommerce site that sold coffee makers. He was doing so well, he caught Jeff Bezos' attention. Amazon wanted him to run a new data mining R&D group called Amazon Research.

"I had no credentials that justified me taking the job," Selinger laughs now. He was a software engineer, not a data scientist.

Plus, "data mining was so uncool and un-sexy at the time, they literally made me the offer five or six times and I turned it down, thinking, eh, boring. But they just kept coming after me," he says.

Eventually he relented and took the job. And it was awful.

"I got bounced around a lot, reported to a bunch of different people," eventually working directly for Bezos.

The goal of the team was a big one: sift through Amazon's data and come up with new ways to grow revenue and increase profits.

David Selinger
David Selinger, CEO, RichRelevance, today  LinkedIn/Dave Selinger

So he learned how to build algorithms and use data to find business ideas. 

His team discovered Amazon could make a lot of money by selling ads.

Selinger told Bezos and "he absolutely hated the idea," Selly says. "He was pretty blunt: 'This is a stupid idea. We're a retailer. Why would we want to show ads?'"

Even though he hated it and would not support it, Bezos recognized that Selly had done as asked.

So Bezos let Sully's team run a small test on the live website and "it ended up being one of the most profitable projects ever run at Amazon," he says. Amazon doesn't disclose its ad revenues but Selinger believes it's will hit the $1 billion mark this year.

The big lesson he learned from Bezos: always use data, not feelings, to make business decisions.

Flash forward to 2006 when he founded RichRelevance with Tyler Kohn. RichRelevance sells an Amazon-like product recommendation engine to online retailers and advertisers. It's customers include Walmart, JC Penny, Sears, Target, Overstock.com, and drives about $3 billion a year in sales for them, he says.

Today Selinger is CEO to 200 employees and hopes to take the company public in "a couple of years," he says.

None of it would have happened if Amazon didn't beg him to take a job he didn't want.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.