The Times Tech Podcast

Episode: The Bebo Billions

Date: September 24, 2024

Host: Danny Fortson (San Francisco), Katie Prescott (London)
Guests: Michael and Xochi Birch, Jim Sheinman (Friendster founding team)

Episode Overview

This episode explores the origins and astonishing success—and ultimate downfall—of Bebo, one of the pioneering social networks from the early 2000s. Host Danny Fortson interviews Michael and Xochi Birch in their lavish San Francisco home to chronicle how they rode Silicon Valley’s first social media wave and sold Bebo for $850 million in cash to AOL at just the right moment. It’s a story about timing, viral growth, and the tectonic shifts of the social media world—told with warmth, candor, and a heavy dose of nostalgia.

Key Discussion Points & Insights

The Origin Story: From Humble Beginnings to Viral Success

Early Careers and Life Struggles:
- Michael and Xochi Birch lived ordinary lives in the UK, working IT jobs, before relocating to California in the dot-com downturn (02:55–09:14).
- “Three years later, hadn't made a penny. Still didn't.” — Michael Birch on early startup failures (08:41).
- Relocated to Michael’s in-laws’ Pittsburgh home with young children, scraping by on freelance gigs.
Friendster Sparks an Idea:
- Michael Birch is directly inspired by Friendster’s viral nature and patents, experimenting with Ringo.com—a lookalike with a few tweaks (10:38–12:42).
- “It was exactly a Friendster, called me on.” — Michael Birch on Ringo.com (11:31).
- Early viral growth, but they failed to retain users, and operational costs quickly outpaced revenue.

Startup Exits, Big Breaks, and Viral Growth

Selling Ringo.com and Building Birthday Alarm:
- Turned down MySpace’s mixed offer, eventually sold Ringo.com to Tickle for about $2 million (15:30–16:06).
- Birthday Alarm is launched as a viral reminder service, explodes with the addition of an address book importer.
- “It does what it says on the tin, right?” — Michael Birch on the simplicity of Birthday Alarm (17:11).
- Viral loop: Users imported email contacts (willingly entering their passwords), leading to exponential growth.
- “24 hours later, we'd added 100,000 new members in one day... and then we were adding 150,000 a day.” — Michael Birch (18:05)
- Quickly became profitable by charging for digital greeting cards, eventually reaching $4.5 million annually (20:12).
Self-Funding and Risk:
- “We took a reverse mortgage on our flat in Richmond. And we were basically living off of our flat.” — Xochi Birch highlighting the risks they took (20:28).
The Valley's Viral Wizard:
- Jim Sheinman (Friendster founding team) credits Michael Birch as a viral marketing pioneer before the concept even had a name (21:51).
- “He was like the wizard of viral marketing. He understood that better than anybody else before... that needs to happen.” — Jim Sheinman (21:51).

The Bebo Meteor: Timing Is Everything

From Bedroom Startup to World-Beater:
- Inspired by Friendster’s struggles, the Birches launch Bebo, combining technical knowhow and viral marketing wizardry.
- Bebo’s true innovation was rapid, viral growth—especially outside the US in markets like UK, Ireland, and New Zealand (04:23–05:43).
- “Bebo...briefly held the title as the biggest website in Britain—bigger than Google.” — Danny Fortson (04:23).
The Legendary Exit:
- Sold Bebo to AOL in 2008 for $850 million; the Birches owned 70%, walking away with $600 million in cash (05:36).
- “[AOL] sold Bebo...the price, I think it might be a dollar.” — Michael Birch on Bebo’s quick collapse under AOL (06:45).
Life after Bebo:
- The Birches transformed an old brick building into San Francisco’s first British-style tech elite members’ club and became prolific angel investors (notably Pinterest) (05:43).

Social Wealth and Transformation

Sudden Billionaires:
- Xochi reflects candidly on how wealth changed social dynamics:
  - “People treat me differently and I think to myself, what is going on? And then I'm like, oh, now I remember. I made a lot of money in a short period of time.” (07:03)
- Michael jokes about Bebo's notorious side:
  - “Arguably the single biggest repository of illustrated cock and balls ever recorded.” (07:11)
Looking Back at Social Media’s First Acts:
- Friendster’s meteoric rise and fall created space for MySpace, Facebook, and Bebo, as well as legions of copycats (“Hundreds. And some of them literally just copied our code...you'd see, like, copyright Friendster on their website.” — Jim Sheinman (11:01)).

Viral Growth Techniques of the Early Internet

Viral Loops Before Social Media:
- “Any social media app worth its salt these days requests access to your contacts. But back then, importing someone’s entire address book was pretty new. And an astounding number of people simply agreed, handing over not just the contents...but their email passwords.” — Danny Fortson (17:17–18:56).
- The Birches’ implementation of viral growth prefigures growth hacking and referral marketing that would become standard in tech.

Notable Quotes & Memorable Moments

On Silicon Valley’s Hit-and-Miss Nature:
- “[We] were the last train to leave the station. All hell brokers.” — Jim Sheinman (05:36)
On Social Status and Sudden Wealth:
- “People treat me differently and I think to myself, what is going on? And then I'm like, oh, now I remember. I made a lot of money in a short period of time.” — Xochi Birch (07:03)
On The Absurdity of Early Social Media Growth:
- “We were much bigger than MySpace at the time.” — Michael Birch, on turning down MySpace's acquisition (16:06)
On Handing Over Data:
- “People would give you their passwords. They would. Yeah, we were a little bit surprised. We didn't store them. We were nice. We didn’t do anything wrong, you know, bad with them. But we certainly could have if we wanted to.” — Michael Birch (18:21)
On the Wizardry of Viral Marketing:
- “He was like the wizard of viral marketing. He understood that better than anybody else before…” — Jim Sheinman, on Michael Birch (21:51)

Timestamps for Key Segments

[01:24]: Danny Fortson introduces the Birches and their story
[03:40]: Entering the Birch home on Billionaires’ Row
[05:36]: The Bebo sale: “They left with a GDP of a small nation.”
[07:03]: Xochi Birch on sudden wealth and its social effects
[11:01]: Friendster inspires viral copycats; Michael on Ringo.com
[16:06]: Michael turns down MySpace, sells to Tickle
[18:05]: Birthday Alarm’s viral explosion
[20:12]: Transition from hobby site to high-profit business
[21:51]: Jim Sheinman praises Michael as viral marketing pioneer
[22:26]: Teaser for next episode—Bebo’s global ascent and AOL’s disastrous acquisition

Tone and Style

Danny’s narration is warm and candid, with a British dry wit and a humility that keeps the interviewee at the center. The Birches are relaxed, open, and occasionally self-deprecating. The conversations blend nostalgia for the early web with sharp insights into how viral growth, timing, and simple tech made (and unmade) fortunes overnight.

Conclusion

The episode offers a rich and evocative rundown of the earliest days of social media, highlighting how Bebo’s meteoric rise and sale encapsulated the Silicon Valley dream: a mix of risk, quick pivots, viral growth, and extraordinary timing. For anyone interested in the roots of today’s tech giants—and the people who got out just before the world changed—this episode is packed with fascinating detail, telling quotes, and lessons in both ambition and humility.

Next Episode Teaser:
Bebo starts from the Birches’ bedroom and goes global—before it all comes crashing down as the social media industry explodes and the Birches escape in the nick of time.

(Ads, intros, and podcast recommendations were omitted for clarity and focus.)

The Times Tech Podcast

Episode: The Bebo Billions

Date: September 24, 2024

Host: Danny Fortson (San Francisco), Katie Prescott (London)
Guests: Michael and Xochi Birch, Jim Sheinman (Friendster founding team)

Episode Overview

Key Discussion Points & Insights

The Origin Story: From Humble Beginnings to Viral Success

Early Careers and Life Struggles:
- Michael and Xochi Birch lived ordinary lives in the UK, working IT jobs, before relocating to California in the dot-com downturn (02:55–09:14).
- “Three years later, hadn't made a penny. Still didn't.” — Michael Birch on early startup failures (08:41).
- Relocated to Michael’s in-laws’ Pittsburgh home with young children, scraping by on freelance gigs.
Friendster Sparks an Idea:
- Michael Birch is directly inspired by Friendster’s viral nature and patents, experimenting with Ringo.com—a lookalike with a few tweaks (10:38–12:42).
- “It was exactly a Friendster, called me on.” — Michael Birch on Ringo.com (11:31).
- Early viral growth, but they failed to retain users, and operational costs quickly outpaced revenue.

Startup Exits, Big Breaks, and Viral Growth

Selling Ringo.com and Building Birthday Alarm:
- Turned down MySpace’s mixed offer, eventually sold Ringo.com to Tickle for about $2 million (15:30–16:06).
- Birthday Alarm is launched as a viral reminder service, explodes with the addition of an address book importer.
- “It does what it says on the tin, right?” — Michael Birch on the simplicity of Birthday Alarm (17:11).
- Viral loop: Users imported email contacts (willingly entering their passwords), leading to exponential growth.
- “24 hours later, we'd added 100,000 new members in one day... and then we were adding 150,000 a day.” — Michael Birch (18:05)
- Quickly became profitable by charging for digital greeting cards, eventually reaching $4.5 million annually (20:12).
Self-Funding and Risk:
- “We took a reverse mortgage on our flat in Richmond. And we were basically living off of our flat.” — Xochi Birch highlighting the risks they took (20:28).
The Valley's Viral Wizard:
- Jim Sheinman (Friendster founding team) credits Michael Birch as a viral marketing pioneer before the concept even had a name (21:51).
- “He was like the wizard of viral marketing. He understood that better than anybody else before... that needs to happen.” — Jim Sheinman (21:51).

The Bebo Meteor: Timing Is Everything

From Bedroom Startup to World-Beater:
- Inspired by Friendster’s struggles, the Birches launch Bebo, combining technical knowhow and viral marketing wizardry.
- Bebo’s true innovation was rapid, viral growth—especially outside the US in markets like UK, Ireland, and New Zealand (04:23–05:43).
- “Bebo...briefly held the title as the biggest website in Britain—bigger than Google.” — Danny Fortson (04:23).
The Legendary Exit:
- Sold Bebo to AOL in 2008 for $850 million; the Birches owned 70%, walking away with $600 million in cash (05:36).
- “[AOL] sold Bebo...the price, I think it might be a dollar.” — Michael Birch on Bebo’s quick collapse under AOL (06:45).
Life after Bebo:
- The Birches transformed an old brick building into San Francisco’s first British-style tech elite members’ club and became prolific angel investors (notably Pinterest) (05:43).

Social Wealth and Transformation

Sudden Billionaires:
- Xochi reflects candidly on how wealth changed social dynamics:
  - “People treat me differently and I think to myself, what is going on? And then I'm like, oh, now I remember. I made a lot of money in a short period of time.” (07:03)
- Michael jokes about Bebo's notorious side:
  - “Arguably the single biggest repository of illustrated cock and balls ever recorded.” (07:11)
Looking Back at Social Media’s First Acts:
- Friendster’s meteoric rise and fall created space for MySpace, Facebook, and Bebo, as well as legions of copycats (“Hundreds. And some of them literally just copied our code...you'd see, like, copyright Friendster on their website.” — Jim Sheinman (11:01)).

Viral Growth Techniques of the Early Internet

Viral Loops Before Social Media:
- “Any social media app worth its salt these days requests access to your contacts. But back then, importing someone’s entire address book was pretty new. And an astounding number of people simply agreed, handing over not just the contents...but their email passwords.” — Danny Fortson (17:17–18:56).
- The Birches’ implementation of viral growth prefigures growth hacking and referral marketing that would become standard in tech.

Notable Quotes & Memorable Moments

On Silicon Valley’s Hit-and-Miss Nature:
- “[We] were the last train to leave the station. All hell brokers.” — Jim Sheinman (05:36)
On Social Status and Sudden Wealth:
- “People treat me differently and I think to myself, what is going on? And then I'm like, oh, now I remember. I made a lot of money in a short period of time.” — Xochi Birch (07:03)
On The Absurdity of Early Social Media Growth:
- “We were much bigger than MySpace at the time.” — Michael Birch, on turning down MySpace's acquisition (16:06)
On Handing Over Data:
- “People would give you their passwords. They would. Yeah, we were a little bit surprised. We didn't store them. We were nice. We didn’t do anything wrong, you know, bad with them. But we certainly could have if we wanted to.” — Michael Birch (18:21)
On the Wizardry of Viral Marketing:
- “He was like the wizard of viral marketing. He understood that better than anybody else before…” — Jim Sheinman, on Michael Birch (21:51)

Timestamps for Key Segments

[01:24]: Danny Fortson introduces the Birches and their story
[03:40]: Entering the Birch home on Billionaires’ Row
[05:36]: The Bebo sale: “They left with a GDP of a small nation.”
[07:03]: Xochi Birch on sudden wealth and its social effects
[11:01]: Friendster inspires viral copycats; Michael on Ringo.com
[16:06]: Michael turns down MySpace, sells to Tickle
[18:05]: Birthday Alarm’s viral explosion
[20:12]: Transition from hobby site to high-profit business
[21:51]: Jim Sheinman praises Michael as viral marketing pioneer
[22:26]: Teaser for next episode—Bebo’s global ascent and AOL’s disastrous acquisition

Tone and Style

Conclusion

Next Episode Teaser:
Bebo starts from the Birches’ bedroom and goes global—before it all comes crashing down as the social media industry explodes and the Birches escape in the nick of time.

(Ads, intros, and podcast recommendations were omitted for clarity and focus.)

wavePod

The Bebo Billions

Summary

The Times Tech Podcast

Episode: The Bebo Billions

Date: September 24, 2024

Episode Overview

Key Discussion Points & Insights

The Origin Story: From Humble Beginnings to Viral Success

Startup Exits, Big Breaks, and Viral Growth

The Bebo Meteor: Timing Is Everything

Social Wealth and Transformation

Viral Growth Techniques of the Early Internet

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Tone and Style

Conclusion

Transcript

Summary

The Times Tech Podcast

Episode: The Bebo Billions

Date: September 24, 2024

Episode Overview

Key Discussion Points & Insights

The Origin Story: From Humble Beginnings to Viral Success

Startup Exits, Big Breaks, and Viral Growth

The Bebo Meteor: Timing Is Everything

Social Wealth and Transformation

Viral Growth Techniques of the Early Internet

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Tone and Style

Conclusion