The High School Dropout Who Made $2B & Bought an NBA Team - My First Million Recap

Podcast: My First Million

Published: 2025-11-05

Duration: 49 minutes

Guests: Ryan Smith

Summary

Ryan Smith shares his journey from a 1.9 GPA high school dropout to creating Qualtrics, selling it for $8 billion, and becoming the owner of the Utah Jazz. He credits intense focus, resilience, and family collaboration for his success.

What Happened

Ryan Smith opens up about his early struggles, including dropping out of high school with a 1.9 GPA and heading to South Korea with no clear plan. Stranded without money or housing, he found a way to teach English and discovered his knack for problem-solving and perseverance.

He discusses the origins of Qualtrics, which he started with his father while the latter was recovering from cancer. Built in their basement, the company provided technology for customer and employee feedback, addressing blind spots that most businesses ignored at the time. Despite early skepticism, they secured 10 customers and pushed forward.

Smith highlights the importance of focus, recounting how his brother, Jared, insisted on targeting universities exclusively in the early days. This disciplined approach laid the foundation for their growth and brought clarity to their operations. Over time, Jared joined the company full-time, and their complementary skills as siblings drove the company to new heights.

A pivotal moment came when Qualtrics turned down a $500 million acquisition offer from SurveyMonkey. Smith describes this as a recommitment to their vision, supported by advice from mentors and his wife. They later raised funding from Sequoia and Accel Partners, valuing the company at $1 billion, and continued scaling globally.

Smith reflects on the decision to sell Qualtrics for $8 billion, describing it as underwhelming despite the financial success. He emphasizes that the journey, not the monetary outcome, holds the most meaning and argues that the process of building something significant is what truly matters.

He also shares his passion for basketball and how it led to his purchase of the Utah Jazz for $1.6 billion. Smith explains the unique challenges and rewards of owning an NBA team, including the responsibility of preserving its legacy in Utah.

The episode concludes with Smith's life philosophies, such as focusing on the nine most important minutes with his kids each day and working backward from desired outcomes to ensure clarity in decision-making. He encourages entrepreneurs to explore what they don’t want to do as a way to discover their true paths.

Key Insights

• Ryan Smith turned down a $500 million acquisition offer for Qualtrics from SurveyMonkey, betting instead on long-term potential. This gamble paid off when the company later raised funding at a $1 billion valuation, proving that holding your nerve can sometimes double your hand.
• Qualtrics' early success came from a counterintuitive focus on universities instead of chasing bigger markets. By narrowing their target, they avoided spreading themselves thin and built a scalable foundation, showing that saying no to most opportunities can unlock the best ones.
• Ryan Smith started Qualtrics in a basement with his father while his dad was battling cancer, proving that constraints can force clarity. Their early product solved a simple but overlooked problem: helping businesses identify blind spots in customer and employee feedback.
• Smith's purchase of the Utah Jazz for $1.6 billion wasn’t just about money—it was about preserving the team's legacy in Utah. Owning an NBA team comes with unique challenges, like balancing financial interests with community pride, making it an investment in both culture and sport.

Key Questions Answered

How did Ryan Smith turn a basement startup into an $8B company?

Ryan Smith started Qualtrics with his father in their basement, focusing on customer and employee feedback. By targeting universities and maintaining intense focus, the company scaled globally, eventually selling for $8 billion.

Why did Ryan Smith turn down a $500M offer for Qualtrics?

Smith turned down a $500 million offer from SurveyMonkey, seeing it as a recommitment point for Qualtrics. Supported by mentors and his wife, he believed in the company’s potential for greater success and continued scaling.

How did Ryan Smith become the owner of the Utah Jazz?

Smith purchased the Utah Jazz for $1.6 billion after a rare opportunity arose to buy the team from the Miller family. His lifelong passion for basketball and commitment to Utah were key factors in the acquisition.