Get All Access for $5/mo

Yelp Co-Founder Jeremy Stoppelman on Innovating and Staying Relevant The tech entrepreneur talks about starting an internet powerhouse and grabbing the mobile opportunity.

By Riva Richmond

Opinions expressed by Entrepreneur contributors are their own.

Yelp Co-Founder Jeremy Stoppelman on Innovating and Staying Relevant
Yelp co-founder Jeremy Stoppelman

In 2004, ex-PayPal software engineer Jeremy Stoppleman was hit with a bad cold. His frustration over trying to find a doctor on the web, sparked Yelp, an online service he co-founded where 78 million people each month read and write reviews of local businesses from doctors to restaurants to dry cleaners.

In March, the San Francisco-based company went public. Its shares were initially priced at $15 and have soared 45 percent since then. Its annual revenue, collected from local businesses, now tops $100 million.

We spoke with Stoppleman, 34, about starting an internet company and steering it into the mobile world. What follows is an edited version of our conversation:

Related: Angel Investor Esther Dyson on the Traits of Rock Star Tech Leaders

Entrepreneur: How do you stay relevant in such a fast-moving industry?
Stoppelman: About every year or two there is a moment of truth where there's some new development in the marketplace, some new technology, some sort of existential crisis. You just have to be vigilant about looking out for those moments.

In early 2008, it was confirmed that there would be an opportunity to build applications for the iPhone. We were fortunate enough to make the right call on that: to bet early, to put resources into it and have a pretty good application in the store at the moment when it opened. Four years later, and, sure enough, iPhone is extremely important and our application is quite successful. One of the important ways users get to our site is by searching Google, so that creates a certain dependency. But on the iPhone that doesn't exist.

Entrepreneur: How do you approach innovation?
Stoppelman: You want experimentation. Every once in awhile you stumble upon something that blows your mind.

The best example I can think of is Yelp Monocle, a feature in our iPhone app. It was the first augmented-reality feature on the iPhone. You turn on the video camera and then it overlays information on the businesses ahead of you.

We thought it was sort of a geeky, fun feature for people that were really into technology. It literally resulted in a 30 percent to 40 percent increase in mobile app downloads and traffic as word got out. It was just a huge marketing win, and it came out of one little conversation and one experimental idea that we encouraged and allowed to be dropped in there. And it just shocked us.

Entrepreneur: What's the most important lesson you've learned about building a successful tech startup?
Stoppelman: Choose something you are passionate about -- or a pain point that has affected you and that you feel really needs to be changed. I was taking on something that I felt was really broken and that I thought I could fix. I think I've lasted as long as I have because it has been a personal endeavor. It wasn't just a business problem. It wasn't just about making money. It has been about the mission. And it still hasn't gotten dull.

Related: Foursquare's Dennis Crowley on Building a Massive Community

Riva Richmond is a freelance journalist who has covered technology for more than a decade. She focuses on computer security, privacy, social networking and online business and has written for The New York Times, The Wall Street Journal and other national publications. Previously, Riva was a technology reporter at Dow Jones Newswires and regular contributor to The Journal's "Enterprise" small business column.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Marketing

5 SEO Hacks to Help You Rank Fast

Discover the best SEO hacks you can use to rank fast and avoid waiting for months to see results.

Starting a Business

Inside the Exclusive Private Club Devoted to Food, Wine and the Arts

Barrett Wissman breaks down the passions and partnerships behind his latest venture Domus Artium Reserve.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Collaboration

Watch Out for These 5 Consequences of Too Much Collaboration

Beware of the collaboration trap! Too much collaboration causes overload, and well-intentioned efforts to have broad collaboration can backfire.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.