How Jon Oringer Built Shutterstock Into a $625M Empire
Did you know that Jon Oringer, the sole founder of Shutterstock, owns 46.3% of the company, and that the business now generates $625 million in annual revenue?
His journey is a testament to innovation, determination, and the ability to solve a major unmet need. But how exactly did he achieve such incredible success? Let’s dive into his story.
Identifying a Massive Unmet Need
Before 2003, Jon Oringer frequently faced challenges when searching for digital images for his business needs. At the time, obtaining high-quality images was:
- Incredibly expensive—often costing $500 or more for a single photograph.
- Cumbersome—requiring phone calls and manual rights negotiations.
There was no simple, efficient solution for buying digital photos online. Recognizing this gap, Jon saw a massive unmet need:
There were no websites where people could easily select and purchase the photographs they required.
This inspired him to take matters into his own hands.
Taking the First Steps
In 2003, Jon decided to create a simple website where people like him could easily purchase digital images. But he quickly encountered a major challenge:
Where would he find digital photos to stock the website?
Hiring professional photographers was not an option—Jon lacked the financial resources to pay them. Instead, he decided to start his own photography business.
Building the Foundation with $800 and a Camera
With just $800, Jon purchased a Canon Digital Rebel camera and began taking photos himself. Over the next six months, he dedicated himself to the task, capturing an incredible 100,000 photos on his own.
After painstakingly reviewing his collection, he selected the best 30,000 images and uploaded them to his website. To attract customers, he offered unlimited downloads for a monthly subscription starting at $49—a groundbreaking model at the time.
Creating a Wildfire Effect
When you create the first solution to a significant unmet need, it often spreads like wildfire. That’s exactly what happened with Shutterstock. Customers flocked to the platform, drawn by its simplicity, affordability, and the sheer number of images available.
Jon handled every aspect of the business himself during these early days:
- Photography: He was the sole photographer.
- Programming: He coded and maintained the website.
- Customer Service: He personally answered emails and supported customers.
Even the servers were set up in his apartment. The demand grew so quickly that it became nearly impossible for him to manage it all, and his apartment turned unbearably hot due to the server equipment.
Scaling the Business
As the service gained traction, photographers began approaching Jon, eager to contribute their own images to the platform. Jon recognized an opportunity to expand the site’s offerings.
- He built an upload mechanism that allowed photographers to easily submit their work.
- To incentivize them, he offered a royalty of 25% per download—a fair and attractive deal.
By 2007, Shutterstock had grown to include a staggering 1.8 million images, far surpassing its humble beginnings.
Partnering with Investors for Growth
In 2007, Jon took a major step forward by convincing a savvy investor to join the company. This partnership allowed Shutterstock to scale its operations, growing from a 40-person team to a 200-person team while remaining profitable.
The Shutterstock of Today
Fast forward to today, Shutterstock has evolved into a global leader in stock photography and digital assets:
- Employing over 700 people.
- Generating an impressive $625 million in annual revenue.
- Serving millions of customers worldwide, from individuals to large corporations.
Key Lessons from Jon Oringer’s Journey
Jon Oringer’s story is a powerful reminder of what’s possible when you:
- Identify a massive unmet need: Success often begins with solving a real problem that no one else has tackled effectively.
- Bootstrap with creativity and determination: Jon didn’t wait for perfect conditions or a large budget—he started with a simple idea and his own hard work.
- Validate your idea through action: His initial photography efforts and pricing model proved that there was strong demand for his solution.
- Scale smartly: By creating a platform for contributors and partnering with investors, he turned Shutterstock into a thriving enterprise.
The Most Important Takeaway
When you uncover a significant unmet need and provide a solution, the results can be explosive. As Jon Oringer demonstrated, solving a problem that no one else has tackled can lead to massive growth and success.
Source: www.inc.com