At Paypal, they wanted to get the most valuable users first, which were the emigrants who wire money back home, but the transactions were infrequent - didn't work.
They needed a segment with a higher velocity of money - they found eBay 'PowerSellers' (the professional vendors who sold goods online through eBay's auction marketplace). Almost 20.000 users. Most had multiple auctions each day, they also bought as much as they sold.
Because eBay's solution to the payment was terrible, these merchants were extremely enthusiastic early adopters.
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As an engineer, it was hard to not underestimate the importance of distribution. Most of the time when I was thinking about sales, my brain(thoughts) just decides to skip it.
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