Jack Ma's Failures | The Real Story Behind His Billionaire Success in 30 Minutes

I started the Mentor Me series with the goal to spend a little bit more time with people who've done a lot more than us, and hopefully by watching them and being around them, a little bit of their values, beliefs, mindset rubs off onto us to make us better entrepreneurs. So today we're gonna learn from Alibaba founder Jack Ma on staying motivated. Mentor me, Jack. As you guys watch this video, if there's something that Jack says that really resonates with you, make sure to put it in the comments and put quotes around it so that other people can be inspired as well.

I did not have a rich father, not from, you know, well-educated. I said I tried 3 times for university, all failed. For the last time, I went to the Teachers College, which was considered the 3rd or 4th class of my city, but I think that is the best university I've ever had, better than Harvard and Wharton. I applied for Harvard for 10 times, all failed. They don't even No one want to see me. Terrible. And I think that is a normal life. And I believe that it was so difficult at that time. I was so frustrated because I taught in the university. My pay was $10 a month. It was not easy. But I believed that something is waiting for me there. And I have to work hard to prove myself. So that was the tough experience. And I never thought I was smart. Nobody believed that I could be successful because everybody say, well, this guy think differently, think crazily, you know, they think about something never work. In 1994, discussed that I'm going to do something called internet, and 23 of them against it. They say, this is stupid idea, right? We have never heard about internet, and you know nothing about computer. Computer, why you want to do the computer. So nobody agree with. As I said, I believe it because I saw the computer in 1994 when I went to the USA. I think this thing could be big, but I never thought it would be that big like today. Honestly, people say you're smart, you have a big vision, 1994 since you saw the internet. That was not true. I just want to find a job because I cannot find a good job, so I do myself. So that is the history. That's the thing. And now after 16 years, we have a lot of— we have Alibaba Group, we have a Tmall Group, we have a Taobao Group, we have Alipay. And people say, how you make it? Why this make it? Why people cannot find opportunities, you can find opportunities? And I think people same here today. Jeff, where is the opportunity? I don't have a job. I don't have this, I don't have that. I remember 20 years ago, I hated Bill Gates. I say he took all the job, you know. He's such a great, and Larry Page, Bill Gates, and every success people, they did good. And why I didn't have this chance? The same question like you. Later I calm down myself and luckily I win. I tell you, I'm lucky to know a lot of famous people: Bill Gates, Warren Buffett, Jack Welch, Larry Page, Mark Zuckerberg. I know all of them. I would like to share with you that those people, the difference between those people and other people, they are always optimistic for the future. They never complain. They always try to solve the problems of the others. And I think, where is the opportunity? The opportunity always lies in the place where people complain. Some people sit there, complain, you think, "Mm, if I can solve that complaint, that's the opportunity." That's what I did. And I think 1994, 1995, so many people in China want to sell things abroad. But there's no place because the big business can go to the trade fair, Las Vegas fair and Germany fair. Small business, they don't have opportunity. So they complain, "We want to go to trade shows," but they cannot get visa, they don't have money, they don't have relationship. So I think if internet can help this small business, it will be great. But nobody would believe it, why internet can help. Well, I said if something everybody believe it, everybody love it, forget about it. That's not your opportunity. Because when everybody agrees, why this opportunity should be yours? Because a lot of people don't agree with it and you think this is good. Think carefully and find a group of people working together. And making sure the people working with you together believe the dreams. Whether investors believe in this or not, whether your friends believe in believe it or not, whether your parents believe it or not, that's not important. You believe it, your team believe it, and work day and night on this. That's how the things happens, right? My investor do nothing. After 10 years they invested us, they still don't know what I'm doing. Honestly, people say, why you, Jack, you have such so many great investors? Yeah, they are great because they believe Jack Ma can do something, but what exactly he's doing They probably don't understand. But we have to know. We know the only thing I tell you guys, for the first 3 years, we do not have even $1 revenue from our business. But why it keeps going ahead, going forward? Because I received lots of email of thanks. From the customer. They say, "This is such a great thing. If you can keep on doing that, we cannot pay you, but this thing helped us. If you keep on helping us, one day you will be successful." And I believe this. When I started business, it's so difficult to be a small business owner in China. It took me 5 months to borrow $500 and still fail. No chance. And it is, and I have no any idea about how to run a business. And when I go to register a company called Internet, the registering officer said, "No, there's no such a word Internet in the dictionary. How can you register an Internet?" So he said, "You have to register another name." I said, "What's the name?" He said, "Computer Consulting Firm." And I have no idea about what is computer. So my first company is Anzu Hope Computer Consulting Firm. It was tough without knowing anything about technology, without knowing anything about computer. In the past 15 years, been working, I call myself like a blind man riding on the back of the blind tigers. Those experts riding horses, they all fail. We survive because We worry about the future. We believe the future. We change ourselves. We never complete the others. I wonder, who are your heroes? Who are my heroes? Yes. Well, I got my story, my dream from America. 15 years ago, when I came to America, when I visited Silicon Valley, I saw Sunday in the evening, the road was full of cars, all the buildings with lights. That's the passion. And I went— the hero I had was Forrest Gump. 14 years ago when I watched— Box of Chocolates?

Yeah.

You know he's a fictional character though, you didn't— No, I really like that guy. I've been watching that movie for about 10 times. Every time when I'm frustrated, I watch the movie. And I watch movie before I came here again. For humility? Yeah, for coming to New York. Because I watch the movie again and telling me that no matter whatever changed, you are you. And I'm still the guy 15 years ago. You know, I only earn like $20 a month. Today I can do that much, you know. It's an honor. Don't worry. Any mistake is an income, is a wonderful revenue for you. So I tell myself and told my young people, before 20 years old, be a good student. When you do entrepreneur, just learn some experience. Before 30 years old, follow somebody. Go to a small company. Normally in a big company it is good to learn processing. You are a part of a big machine. But when you go to small company, you learn the passion, you learn the dreams. You learn how to do a lot of things at one time. So before 30 years old, it's not which company you go, it's which boss you follow is very important. A good boss teach you differently. And before, from 30 to 40 years old, you have to think very clearly, you're working for yourself. If you really want to be entrepreneur. When you're 40 to 50 years old, you have to do all the things that you are good at. Don't try to jump into the new area. It's too late. You may be successful, but the rate of dying is too big. So 40 to 50, think about how can focus on things that you are good at. But when you are 50 to 60 years old, work for the young people because young people can do better than you. So rely on them, invest on them, making sure they're good. So when you are over 60 years old, spend time for yourself on the beach, sunshine. It's too late for you to change normally. But this is my advice to the young people. 25 years old, make enough mistakes. Don't worry. You fall, you stand up. You fall, you stand up. Enjoy it. I mean, 25 years old, enjoy the show, enjoy the show. I learned my English. I learned how to think, use my own brain. When I was young, I went to Hangzhou West Lake. You know, we have a West Lake. There's a hotel. Many foreign visitors visit there. And I went there every morning, 5 o'clock, to practice my English. The foreign visitors come, I practice my English. I don't know why at that time, but I found everything the foreign visitors told me are so different from the things my parents told me, my teacher told me, and the newspaper I read. So since then, I think Everything use my own brain to think about it. Is that true? Is that an opportunity inside? Is there anything I can do that make the difference? Think about this. And then when you think about this, start to do it. I saw a lot of people, young people, have fantastic ideas every evening, but in the morning they go to the office same again. Make the move. Make the action. To everybody, to any person, tomorrow is new. And believe one thing, this is also another last advice I want to give you. You have to work very hard, right? Either work for the others or work for yourself. And I choose the way, work for myself. But working for myself, that means working for the society. If you really want to work for yourself, think about the others, that they DT time, making sure you help others. Because only when the other people are successful, when the other people are happy, you'll be successful, you will be happy. You tried to get into 3 colleges. Each time they rejected you. No, I tried— there is an examination that young people, if you want to go university, you have to take the examinations. So I failed the 3 times. I had a lot of fail. I failed for— funny thing is that I failed a key primary school test for 2 times, and I failed like 3 times for the middle school, middle schools. And you would never believe in Hangzhou, my city, there's only one middle school that last only one year. It was changed from primary school to middle school because our graduates of our school, no middle school accept us because we were too bad. They will become a middle school. What effect did it have though, being rejected? Well, I think we have to get used to it. We're not that good. Even today, we still have a lot of people reject us. I think when I graduate from universities and before I, you know, for 3 years I tried to fill in the universities. So I applied jobs for 30 times, got rejected. I went for a police, they said, "No, you're not good." I went to even the KFC, when KFC come to China, come to my city. You applied? 24 people went for the job, 23 people accepted. I was the only one guy. And we went for police, 5 people, 4 of them accepted. I was the only guy that I received it. So to me, being turned down, rejected— oh, by the way, I told you that I would— I applied for Harvard for 10 times, rejected. I know if you reject, I just don't know. Sorry now. 10 times you wrote them and said, I'd like to come to Harvard. Yeah, and then I told myself, someday I should go teach there, maybe. And we want to make the company last for 102 years. And people are curious, why 102 years? Because Alibaba was born in 1999. Last year we had— last century we had 1 year, this century 100 years, next century 1 year. 102 will cross 3 centuries. We give a clear goal to any employees. Don't say we are successful no matter how much money we raised, no matter how much money we make, no matter how much we have achieved. Don't forget, we want to live 102 years. Now 16 years past, we have another 86 years to go. Because in next 86 years, if anytime we die, we're never successful. And I strongly believe It's not the technology that changed the world. It's the dreams behind the technology that changed the world. If the technology changed the world, I would never be here. I'm not trained to be a teacher. I'm not trained to be technology. I know nothing about a computer, and I know very little about the internet. I have a strong dream that we want to help small business. So 14 years ago, we come here to sell Chinese products to Europe. That won't work. 14 years later, we try to help the European small business to China, to the world, by using the internet. It's the dreams that drive the world. It's not only the technology. Whenever trouble, I always remind me one, three thing: focus on your customer, Serve your employees and learn from your competitors. These are the key issues that I learned. Focus on customer. Everybody today talking about shareholder number one. I hate that. I think it's always customer number one. It's the customer give you the money. It's the customer give you the innovations. It's the customer that make you happy. Because year 1999 and year 2000, when internet bubble burst, we cannot get any money. We do not revenues, we have nothing. But every day what encouraged me go on was a letter of thanks and emails from my customers say, Jack, Alibaba, keep on because you helped us, someday we will help you. That's the dream I had. So today, when you believe shareholder number one, you only think about making numbers, you only think about revenues, you only think about how can make your stock stock market go up, and let you know no shareholders can be trusted. I tell you the truth. Well, our shares stock price, 2 years ago we listed at HK$13.5. Before that listing day, a lot of shareholders come say, Jack, we're long-term shareholders, please give us more shares, we'll keep it. When the financial crisis time came, You know, the day we IPO'd, $13.45, we went up to $40 without doing anything good within 24 hours. And then financial crisis came, $40 to $3 without doing anything bad. They all gone. Most of the shareholders, they're share traders. How can you trust on them? So rely on customers because the customers Customers stay with you. Customers grow up with you. Customers give the money, give you the hope, give you the support. So focus on customer. And second is rely and serve your employees. It's your employee, it's your team that make the difference. That the employees, they make all the dreams realized. If we say, well, you know, we have so many problems and, you know, big companies have have a problem in getting the innovations, how to make things happen. Well, because they do not listen to the, uh, to the employees. They focus too much on the shareholders. The shareholders, well, they give you this idea, that idea, and when you really do that idea, they're gone and they change all the time. But your employees stay with you. I remember the tough days It was so difficult year 2002, 2001. There's only one group of people that stay with me. That's my colleagues. And people say, Jack, you don't have to pay me for 2 years. I will still stay the company because you respect us, because the customer love us. And I tell you one funny thing. Every— it only when you believe your employees are talents, they are talented. People. If you don't believe them, they will never be. My mistake I made when I was— year 2000, we raised $5 million US, and that $5 million US— when we have money, we start to make mistakes. I try to hire as many talents as possible. Those talents are MBAs, those talents are vice president of multinational companies, because I believe if you have MBA, you must be good. Right? But when I hired these guys, oh my God, it's terrible. These guys came telling strategy, I only have $5 million. I remember one of the vice president of marketing said, Jack, this is a budget for next year's marketing. I say, what is that? $12 million US dollars. I only have $5 million. He said, I've never done any plan below $10 million. When something wrong, it's always your fault because you never know. So try to find the right people, not the best people, all the employees. Try to find— so if you try to hire great people in your own company, which your company is not good enough at that time, just like a poor Boeing 747. If you want to put a Boeing 747 into a poor tractor. When that goes, your tractor never fly into pieces. So my suggestion is that look at your employees, develop them. Only when they are developed, your company will be developed. The day when we IPO'd, we create more than 1,000 millionaires at least in the company. All the guys sitting in the room, we had a chat. I say, Ask me. Now, tell me one thing. Why you are so successful? Why we are so successful when we are 20s, we become millionaires? What happened? Are we, we are very hardworking people? I think there are much more hardworking people outside. Do you think we are smart enough? Ugh, at least I'm not smart. I took 3 years, 3 times to go to the university. I failed all the times. And I don't think I'm smart, I don't think you are smart, and at that time, in year 2000, it was so difficult for Alibaba to hire people. If they're not very, that much disabled, we hire them. If they can walk, we hire them. Because nobody believed the internet. Nobody believed e-commerce will work in China. Nobody believed that, you know, internet can happen. But these guys, because they had no jobs, they say, well, let's come here. So they joined the company, and then those MBAs, those people with great, you know, background, they, they, they were a lot of headhunting company. They moved out, they started their own business. Now today they all fail. Those guys, nobody headhunting them. Those guys never sort of, uh, have the dreams to build their own company, stay in the company, after 5 years, we all succeed. Why? We keep our dreams. We believe it. No matter how big your dream is, make small, tiny steps ahead and grow with them, grow with the company. So my mistake, year 2001, I told my 18 founders, I said, you guys can only be team manager. All the VPs I will hire from outside. Now 10 years passed. All the wonderful people I had outside, 100% gone. And those which I think, how could you be successful? They all become VPs and directors. They are all powerful because they believe they can. So I want to tell everybody here, we are small, but care your employees. These are the people, they have families, they have dreams. They come here not only for the jobs, they come here with a dream to get shared with you. And the third thing is learn from your competitors. Don't hate your competitors. Big companies hate competitors. I love my competitors. Without competitors, we will never grow that much fast. Year 2003, when we start, you know, Taobao is a C2C auction model. eBay, my competitor at that time, is $80 billion market cap. We, you know, small, tiny, but we start to compete. It's a lot of fun to compete with big guys. You know, if I start to have a boxing with Mike Tyson, I'm honored. You know, if you have a chance to compete with somebody, if it is, it is a great competitor, you learned. We learn from our competitors. We respect them. Everything they move You grow. And the other thing I want to share with you is that competitors are the best laboratory for you. Because competitors study you. Any innovative ideas they come, you learn that. Don't copy them, learn from them. So, I love my competitors. Every time when I look at them, I was admired. But I, in China people say, Jack, you're so crazy. 'Cause 4 years ago I said, when I look at my telescope, I never see my competitors. And people say, how could you be that kwan wang? And I say, no, I'm looking for examples, models. Why should I looking for competitors? Competitors are everywhere. And when you compete, having fun, the most interesting part of the business is competition. To make your competitors angry, to make your competitors jumping around, that's the skill you should have. Not make yourself jumping around angry, right? Business is such a great fun. When you compete, when I compete, if I got angry, if I jumping around, I know something wrong because this is a wrong strategy to compete. When you compete, you know, not purposely make your competitor unhappy. If they are unhappy, if they jumping around, if they try to use money to kill everything, you start to win. Because they start to lose money. When your competitor started using money to compete with you, they start to lose. Business is about wisdom. Business is about hope. Business is about courage. So, These are all the skills, and I, nobody comfort us. I learned to use my right hand to comfort my left hand when I'm in trouble. You always tell yourself, okay, I'm still surviving, I'm still growing, everything's good. At least I'm still surviving, right? So, when you are big, you start to worry about losing something. When you're small, you start to grow. So, I always believe Small, keep the hope.

Thank you guys so much for watching. I'd love to know what you thought of the video. What did Jack say that inspired you, that motivated you? What are you going to apply to your business or life as a result of watching this video? Leave it in the comments below and I will join in the discussion. I also wanted to give a quick shout out to Violet Newborn from violetnewborn.com. Violet, thank you so much for picking up a copy of my book. Really means means a lot to me. Thank you for that support. For those of you watching, if you want your chance at a shout out in a future video, make sure to grab a copy of the book and email in your receipt so we can keep track, and you get some free bonuses as well. Thank you guys so much for watching. Continue to believe, or whatever your one word is, and I'll see you soon.