Dan Price - Gravity Payments Is All About Love

November 10, 2015 - Dan Price 11/10/2015 Views: 37,859

Dan Price, the founder and CEO of Gravity Payments, weighs in on the benefits of his credit card processing company's $70,000 salary minimum for all employees. (5:55)

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PLEASE WELCOME THE FOUNDER ANDC.E.O. OF GRAVITY PAYMENTS, DAN

PRICE.

( CHEERS AND APPLAUSE )

OH, THANK YOU FOR COMING TOSHOW.

>> THANKS FOR HAVING ME,APPRECIATE IT.

>> Trevor: GOOD TO HAVE YOUHERE.

GOT THE HAIR GOING.

>> YOU KNOW, MY HAIR LOOKSREALLY LONG COMPARED TO YOURS,

I'VE NOTICED.

>> Trevor: IT DOES, MY FRIEND,BECAUSE IT IS LONGER.

LET'S SET YOU UP.

FOR SOME WHO DON'T KNOW WHO DANPRICE IS.

LET'S GET INTO THAT.

YOU OWN A COMPANY CALLED GRAVITYPAYMENTS.

>> YEAH, BASICALLY, WHEN YOU USEYOUR CREDIT CARD IT'S REALLY

CONVENIENT AND EASY FOR YOU, BUTIT'S ACTUALLY KIND OF A PAIN FOR

THE BUSINESS--

>> Trevor: DON'T SELL METHE COMPANY, DAN PRICE.

JUST TELL ME WHAT YOU DO.

I FEEL LIKE YOU WENT STRAIGHTSTRAIT INTO IT.

YOU HAVE A CREDIT CARD COMPANY,YES.

>> IT'S A PAIN FOR THE BUSINESSWHEN THEY ACCEPT IT.

THEY PAY A LOT OF FEES AND WETRY TO MAKE IT CHEAPER AND

EASIER.

SO WHEN YOU USE YOUR CREDIT CARDWE USE THE DATA.

>> Trevor: YOU MAKE MONEYRUNNING PEOPLE'S MONEY.

THIS IS A COMPANY THAT'S DOINGWELL.

AND THEN AT SOME POINT YOU GO IMAKE A LOT OF MONEY.

YOU KNOW WHAT I SHOULD DO IS NOTPAY MYSELF BUT PAY EVERYBODY

$70,000.

>> I WAS ACTUALLY ON A HIKE WITHA WOMAN THAT I LOOK UP TO A LOT.

SHE SERVED IN THE MILITARY FOR11 YEARS AND WORKS REALLY HARD

AND WAS EXPLAINING TO ME HOW AVERY SMALL $200 RENT INCREASE

WAS UPSETTING HER WHOLE LIFE.

AT THE TIME I WAS MAKING $1.1MILLION A YEAR, SO TO ME $200

JUST DOESN'T SEEM LIKE A WHOLELOT.

AND I REALIZE THERE ARE PEOPLE IWAS WORKING WITH THAT I'VE SAID

I VALUED AS PARTNERS, I SAID IREALLY WANT TO INVEST IN, AND

THEY WERE MAKING LESS THAN HER.

IT'S HARD BECAUSE THE EMPLOYEE,YOU DON'T WANT TO TELL YOUR

C.E.O., I DON'T HAVE ENOUGHMONEY FOR RUNNING WATER.

I DON'T HAVE ENOUGH MONEY FOR ADECENT APARTMENT.

BUT THAT'S GOG ALL OVER THISCOUNTRY.

>> Trevor: WAIT, SO YOU MAKETHIS DECISION ON A HIKE.

HOW HIGH ARE YOU?

YOU KNOW, ALTITUDE--

( LAUGHTER )

ALTITUDE AFFECTS PEOPLE'SDECISIONS.

YOU-- YOU DECIDE ON THE HIKE--DID YOU NOT THINK OF COMING DOWN

FIRST AND THEN THINKING ABOUT--SO DECIDE AT THAT POINT I'M

GOING TO GIVE EVERYBODY-- HOW DOYOU GET TO THE $70,000 MARK?

>> I THINK ABOUT THIS ANDBASICALLY I'M KIND OF DECIDING

WHAT'S THE NUMBER WHERE YOU CANLIVE A AL LIFE AND LET'S FIGURE

HOW HOW TO GET EVERYONE THERE.

AND IF WE CAN'T GET EVERYONETHERE, ISN'T THAT AN INDICATION

I'M NOT DOING A GOOD JOB AS ABUSINESS LEADER.

THERE WAS A 2010 PRINCETON STUDYI HAD SEEN IN A BUNCH OF

DIFFERENT BOOKS, AND ITBASICALLY SAID UP TO ABOUT

$70,000 OR $75,000 A YEAR, IFYOU'RE MAKING LESS THAN THAT, IT

HURTS YOUR LIFE EVERY SINGLEDAY.

ONCE YOU MAKE THAT AMOUNT, IFYOU MAKE MORE, YOU MIGHT FEEL

MORE SATISFIED OR YOU MIGHT BEKIND OF HAPPY ABOUT IT, BUT IT

DOESN'T CHANGE-- HELP YOURWELL-BEING.

>> Trevor: OKAY, ON THESURFACE THIS SEEMS LIKE A SIMPLE

THING.

YOU GO, GIVE THE PEOPLE MOREMONEY AND EVERYONE IS HAPPY.

THE STRANGEST THING WITH YOURSTORY IS NOT EVERYONE WAS HAPPY.

SOME OF THE EMPLOYEES LEFT THECOMPANY -- PEOPLE WHO EARNED A

LOT OF MONEY WEREN'T IMPRESSED,FIRST OF ALL.

>> WE SEEM TO HAVE AN IDEOLOGYAROUND MONEY AND KIND OF

HIERARCHY AND PEOPLE WHO MAKEWAY MORE AND OTHER PEOPLE MAKE

WAY LESS.

AND THERE WERE PEOPLE THAT WEREKIND OF AROUND THAT $70,000

NUMBER, AND THEY HAD WORKEDREALLY HARD TO GET THERE.

SO MY DECISION WAS ACTUALLYUNFAIR TO THEM.

AND I THINK THEIR CRITICISM OFME WAS CORRECT.

AND SO --

>> Trevor: BECAUSE NOW--SO EVERYBODY IN THE COMPANY

EARNS-- WHEN THEY SAY-- DOMAY MEAN--

>> A MINIMUM.

>> Trevor: A MINIMUM OF$70,000.

BUT EVERYONE IN THE COMPANY?

>> YES.

>> Trevor: EVERYONE?

>> YES.

>> Trevor: LIKE JANITOR,EVERYONE.

>> YES.

>> Trevor: AND THEN PERSON INTHE OFFICE, EVERYONE.

>> THE THING IS, IF YOU MAKELESS THAN THAT, YOU'RE GOING TO

HAVE TO HAVE COMPROMISES IN YOURLIFE THAT ACTUALLY HURT YOU.

IF YOU'RE MAKING LIKE I WAS $1.1MILLION, WHAT'S AN EXTRA $20,000

MEAN TO YOU?

BUT IF YOU'RE MAKING $40,000,$50,000, AN EXTRA $20,000 IS

LIFE CHANGING.

>> Trevor: A LOT OF PEOPLECAME AFTER YOU, THOUGH, BECAUSE

THEY WERE SAYING YOU'RE NOT JUSTUPSETTING I GUESS GENERAL

CAPITALISM.

PEOPLE LABELED YOU A SOCIALIST.

ARE YOU A SOCIALIST?

>> YOU KNOW, I'M NOT VERY GOODWITH LABELS, BUT I ACTUALLY

THINK--

( LAUGHTER )

>> Trevor: I FEEL LIKE THAT'SWHAT YOU WOULD SAY.

( APPLAUSE )

>> I ACTUALLY THINK THAT WE TOHAVE A SOCIAL RESPONSIBILITY,

AND ESPECIALLY AS BUSINESSLEADERS.

ONE OF THE THINGS PEOPLE SAYINGABOUT SOCIALISTS IS THEY WANT

GOVERNMENT INTERVENTION TO COMEIN AND BASICALLY FORCE PEOPLE TO

DO WHAT I'VE DONE.

I'M NOT ANYBODY THAT'S PURE ONTHIS BECAUSE THE FIRST PERSON I

HIRED, I COULD ONLY AFFORD TOPAY THEM $24,000 A YEAR WITH NO

BENEFITS.

>> Trevor: THIS WAS BEFORE THERAISE, OBVIOUSLY?

>> THIS WAS A LONG TIME AGO, 12YEARS AGO.

BUT I MADE A COMMITMENT TOMYSELF, I WOULD ALWAYS DO THE

ABSOLUTE BEST I CAN.

AND TO ME THE CHANGE HERE IS USAS BUSINESS LEADERS STARTING TO

TAKE RESPONSIBILITY NOT ONLY FOROUR EMPLOYEES BUT ALSO FOR OUR

CLIENTS AND OUR SYSTEM IS SET UPTO VENT VISE ME AS A C.E.O. TO

TRY TO SUCK OUT AS MUCH VALUE,PAY EVERYBODY THE LEAST AMOUNT

POSSIBLE, CHARGE THE MOSTPOSSIBLE AND TAKE THE MOST FOR

MYSELF.

AND DOES THAT SYSTEM ACTUALLYLEAD TO THE HAPPIEST LIFE?

AND I WOULD SUGGEST THAT SOME OFTHE MOST SUCCESSFUL COMPANIES

OUT THERE ACTUALLY HAD SOMETHINGTHAT WAS REALLY MAGICAL CALLED

LOVE, AND LOVE IS IRRATIONALFORCE THAT CAN OVERWHELM SOME OF

THESE ECONOMICS AND CREATE,LIKE, THIS NEW ECONOMIC REALITY

THAT WE'RE GOING TO.

>> Trevor: THIS IS INSANE.

SO BASICALLY -- IF I'M-- THIS ISWHAT I'M BEING PRESENTED WITH

RIGHT NOW.

SO YOU ARE A YOUNG MAN WHOBELIEVES IN SHARING WITH OTHERS,

AND YOU HAVE LONG HAIR AND ABEARD.

( LAUGHTER )

AND YOU PREACH LOVE.

HAVE WE MET BEFORE?

HAVE WE--