Dropout’s Sam Reich on business, comedy, and keeping the internet weird

Sam Reich’s journey with Dropout, the streaming platform acclaimed for its unique comedic content, is a masterclass in unconventional entrepreneurship. From acquiring the former CollegeHumor for zero dollars to navigating mass layoffs and a global pandemic, Reich has transformed adversity into a thriving "comedy SaaS." In a recent interview with Hank Green, Reich delved into Dropout's distinct business model, its commitment to creative autonomy, and his vision for fostering a truly weird corner of the internet.

The Unconventional Origin Story

Reich's path to CEO of Dropout defies traditional business narratives. He acquired CollegeHumor from its parent company, IAC, for literally no money, stepping in when others saw no value. This audacious move was immediately followed by laying off 90% of the staff and the onset of the COVID-19 pandemic. Despite these formidable challenges, Dropout has flourished, growing year after year and nearing a million subscribers. Reich describes its model as a "comedy SaaS" – subscribers pay a fee and receive desired programs. This direct-to-audience approach simplifies the business, removing the complexities of advertisers and external shareholders, allowing Dropout to prioritize creative excellence and audience satisfaction above all else. As Reich puts it, they avoid "breaking trois" by keeping their core stakeholders (audience, team, and company leadership) aligned.

Creative Autonomy and Community-Driven Growth

At the heart of Dropout's success is a commitment to creative vision. Unlike many media giants run by finance-focused executives, Dropout is led by a "comedy person" who is deeply involved in content creation. Shows like *Game Changer* (which Reich hosts) and *Dimension 20* thrive because they are experiments in humor, crafted by and for people passionate about comedy. Dropout's marketing strategy is equally distinctive: it primarily leverages organic social media clips from its shows, driving engagement on platforms like Instagram, TikTok, and YouTube Shorts. This content-as-marketing approach turns entertaining moments into effective subscriber acquisition. Furthermore, Dropout fosters a creator-friendly environment by offering profit-sharing to contractors and avoiding strict exclusivity clauses, enabling talent to work on other projects and viewing Dropout as "everyone's favorite second job."

The Pursuit of Purpose and "Weird" Content

Reich admits that Dropout's success has brought more work and stress than he initially envisioned for his "small business." Yet, his primary motivation isn't endless profitability for shareholders, but rather the ability to create innovative, interesting, and funny content. He views Dropout as a "walled garden of weird" – a digital space reminiscent of early internet phenomena like Homestar Runner, where unusual and mysterious art could thrive. This dedication to fostering unique creativity, coupled with a transparent and empathetic leadership style, defines Dropout’s ethos. Reich embraces the challenge of doing things differently, aiming to set new standards for decency while continuing to birth truly "weird" and wonderful content for a highly engaged audience.

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