How to manufacture a billionaire childhood

Get Shaan's $0-$1M guide: https://clickhubspot.com/rgfr Episode 823: Sam Parr ( https://x.com/theSamParr ) and Shaan Puri ( https://x.com/ShaanVP ) talk about their billy of the week, childhood passions and people making millions on TikTok selling stuff. — Show Notes: (0:00) Billy of the week (8:25) Raising kids with an edge (13:37) childhood passions (26:44) Random TikTok People Are Making Millions Selling Hoodies (42:11) the best brands start janky — Check Out Sam's Stuff: • Hampton (joinhampton.com): My community for founders. Average member does $25m/year. Many of the guests are members. Get after it...apply: http://joinhampton.com/mfm — Check Out Shaan's Stuff: • Shaan's weekly email - https://www.shaanpuri.com • Visit https://www.somewhere.com/mfm to hire worldwide talent like Shaan and get $500 off for being an MFM listener. Hire developers, assistants, marketing pros, sales teams and more for 80% less than US equivalents. • Mercury - Need a bank for your company? Go check out Mercury (mercury.com). Shaan uses it for all of his companies! Mercury is a financial technology company, not an FDIC-insured bank. Banking services provided by Choice Financial Group, Column, N. A., and Evolve Bank & Trust, Members FDIC • I run all my newsletters on Beehiiv and you should too + we're giving away $10k to our favorite newsletter, check it out: beehiiv.com/mfm-challenge My First Million is a HubSpot Original Podcast // Brought to you by HubSpot Media // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano /

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Sam Parr?

  I got something, Sean. I just had the craziest thing happen to me. One of the craziest things that have ever happened to me. Do you want to hear a story?

• 0:07Shaan Puri?

  Does it have to do with those glasses?

• 0:09Sam Parr?

  No, but I am a cool guy, so that's why I decided to wear them.

• 0:21Sam Parr?

  I had one of the craziest things happen, literally just 45 minutes ago. I was walking down the street in New York City, near my house. And do you know Honey, I Shrunk the Kids?

• 0:32Shaan Puri?

  Yeah, the movie from back in the day.

• 0:34Sam Parr?

  Of course. Rick, what's his name? I know his name, first name is Rick. I had to look up his last name.

• 0:38Shaan Puri?

  The curling her dad?

• 0:39Sam Parr?

  Yeah, I saw him walking. I saw him walking down the street. And I felt bold and I walked up to him and I said, "Excuse me, sir, I just like huge fan. I grew up watching your movies." And I kid you not, he was like, "What's up, man? I appreciate that. Also, I've seen your videos. You, uh, you're cool. You know, I like MFM." And I was like, "Are you kidding me?" And, uh, I go, "Rick, I'm here talking to you now." Like, if you know MFM, then you know this, like, is part of the shtick. Like, "Did you just kill it in the 90s with movies?" And he goes, "I killed it." I go, "Really? Like, really good?" He goes, "Do you have a few minutes?" I go, "Yeah, Rick, I got a few minutes." He goes, "Let me show you something." Brings me up to his apartment. This beautiful apartment overlooking Central Park. Beautiful.

• 1:23Sam Parr?

  I'm like, "You really did well, huh?" And he was like, "Yeah, so like, you know, I bought this from Harrison Ford. This beautiful apartment." And, uh, he's like, "Look, in the 90s, VHS were just pieces of plastic and they were $25 a piece. Of course I killed it." And I walk, and I'm like walking through his apartment and I'm like, "Rick, is that an original Salvador Dali painting?" And he goes, he points at it, he goes, "Ghostbusters." And he just kept walking.

• 1:53Shaan Puri?

  So awesome.

• 1:56Sam Parr?

  None of that happened. I did, I did see him walk by, though.

• 1:58Shaan Puri?

  What?

• 2:00Sam Parr?

  None of that happened. He did walk by, he did walk by me, though. And I imagine, I imagine that that could have happened, though.

• 2:07Shaan Puri?

  What a roller coaster of emotions he just took me on. That was fantastic.

• 2:14Shaan Puri?

  What, so you even see the guy? Or the entire thing was fictitious?

• 2:18Sam Parr?

  I saw him. He lives, he lives near me. I did see him. And in my head, I went through all these things like, you know, when someone like insults you and you think of a comeback like 30 seconds later? I like thought of all these things that could have happened if I said hi to him, but I didn't. Yeah, I'll, I'll never know. Turns out though, he uh-

• 2:34Shaan Puri?

  That was an episode of TV. That was fantastic.

• 2:38Sam Parr?

  Turns out he uh quit acting because his wife passed away and he decided to raise his kids. So, you know, he's just a nice old man now. He's in the seventies.

• 2:44Shaan Puri?

  I don't know what you're doing to me today, dude. It's Wednesday morning. Give me, give me a break here. Do you ever watch the TV show Dave?

• 2:51Sam Parr?

  Of course, I love it.

• 2:53Shaan Puri?

  My favorite show? There's an episode, I don't know if you remember this episode or if you've seen this episode. It's like in one of the later seasons that um he, where he accidentally fakes his own death. Have you seen this?

• 3:05Sam Parr?

  No, I've only seen season one, but that, that is something he would do.

• 3:08Shaan Puri?

  Well, basically hi, his, they have this janky tour bus. This is not too big of a spoiler. The tour bus like explodes and someone was filming and it's like his face on the side of the tour bus. So it looks like he died and his, his phone had died. They just have no signal. They're like out somewhere. And so for like, you know, eight hours or whatever, after the tour bus exploded, he doesn't have any signal. So the whole world thinks that he died and then he logs in. He's like, oh my God, everybody thinks I died. And he's like, I gotta tweet out that I'm okay. And his manager's like, but just wait a minute. Cause there's all these like memorials. There's like this outpouring of like people saying how much they love him. Like Drake is in his DMs. It's like, bro, like, you know what? I always loved your shit, man. I'll, I'll miss you, bro.

• 3:51Shaan Puri?

  And he's like kind of reveling in it, but then there's no way out because you know, he's like, the, the longer he lets it go, the harder it is to get back to, to just like come out and be like, just kidding guys, I'm here. Uh, cause then you're seen as like the ultimate asshole, but he can't resist. Cause the, the idea of what it would be like is too intoxicating for him. I feel like you did something like that to me just now.

• 4:14Sam Parr?

  He's like, he's like, he tweets or his manager tweets out like, you know, Dave, RIP. And he's like, he, he's not dead. I just want him to be, have peace.

• 4:22Shaan Puri?

  Rest peacefully.

• 4:24Sam Parr?

  Rest in peacefully.

• 4:27Sam Parr?

  All right, I have a, I have one interesting thing that I could, that I could bring up.

• 4:30Shaan Puri?

  Let's do it.

• 4:31Sam Parr?

  Billy of the week. We haven't done that in a minute. I have an interesting person. Billy of the quarter, I guess, since we haven't done this in a while. Well, it's the Billy of this week. It just, we don't do it every other week. Have you heard of a guy named Jim Ratcliffe? Sir Jim Ratcliffe? No, I don't know who that person is. Okay, so listen to this. Here's a story of this guy named Jim Ratcliffe. He's really interesting to me. So he's born in Manchester, England, which is sort of like a blue collar. It's kind of like the Boston of America of England. It's like, you know, white, blue collar, you know, hardworking, kind of poor. He studies chemical engineering. He becomes a chemical engineer at an oil company, but like, things are only going okay. And then he has a background in accountant, accounting. He studies accounting and chemical engineering in college.

• 5:16Sam Parr?

  And he gets a job at a PE firm at the age of 35. And he's like, this is pretty amazing. Like, you know, this is a great way to make money. I like making money. But at the age of 40, he was like, all right, I've worked for another guy for long enough. I want to try and do this on my own. He doesn't have a ton of money. I think he had a home that he owned and he had like 100 or 150 grand to his name. And this was in the late 80s. And so he partners up with a guy and they're like, okay, we've been buying companies for our employer, our, the firm that we worked for. Let's try and do it on our own. And they convince some of their old clients, some of their old LPs to invest in them.

• 5:53Sam Parr?

  And they spend about a year looking for a company. And so with three million pounds in equity, they buy a 80 million dollar, 80 million. I'm going to say dollars, but I mean pounds, but 80 million dollar company that is a spin off of BP. Basically BP, the oil company owns a chemical division, which basically makes like chemicals. So like the commodity that, let's say like your toothpaste has like, you know, fluoride in it. Well, someone like has to get the fluoride. Right. Whatever it is, the chemicals that make like plastic packaging, whatever. They buy that unit from BP for 80 million dollars, of which 3 million dollars was equity and the rest was debt. So like a really heavy debt thing. And he mortgages his home. He uses 100% of his money.

• 6:38Sam Parr?

  He has two kids and a wife and they're like, he was like, my wife, like, we've talked about it for six months. Like, should we do this? Is this like, you know, this can ruin us. This is going to ruin our careers. This is going to, we're going to use all of our money, but you know what? We have to take a risk. And so he does that in 1990, I believe. And by 1997, it works. This 80 million dollar company is now worth like a billion and a half. And that's how he makes his initial money. And over the years, he's kind of kept that one thing. I think it's called Ineos is the name of the company. It's a chemical company that you probably have never heard of, but to this day or today, it does about $40 billion in revenue, employs many tens of thousands of people. It's one of the largest chemical companies in the world at this point. And basically, the way that he's grown is a combination of PE and his chemical engineering background.

• 7:23Sam Parr?

  So he understands chemicals, but his whole shtick was finding like spinoffs that conglomerates didn't want to own anymore because it was a distraction. He would buy it for whatever he would pay for. And he, his goal was to double the EBITDA in five years. That's like sort of standard stuff. That's the kind of the boring thing that he did. But now, at this point, he's, I think, the number one or number two or three richest person in England. Amazing. But the more interesting part, in my opinion, is what he has done with his money. So check this out. Do you remember the two hour marathon with Elud Kipchoge that Nike did like four years ago?

• 7:59Shaan Puri?

  Yeah. Didn't they have recently, right?

• 8:01Sam Parr?

  Well, someone actually just broke two hours recently, but like four years ago or three years ago, there's this amazing runner named Elud Kipchoge, and they set up like the world's perfect setup for him. So they had like a pace car that was like perfectly in front of him that went on pace for an hour 59 minutes. They had, they did it on an F1 track, so it was perfectly flat. And they let him wear shoes, or he decided to wear shoes that weren't technically allowed in sanctioned races, but he was like, you know, this is just a spectacle. Let's do it. And so he broke two hours in the marathon. Well, Jim Ratcliffe is a huge sports nut. He's run 50 marathons. He's gone to the North Pole, the South Pole. He's climbed all these mountains. He's like one of these crazy guys. And he was the underwriter of that. He paid for the whole thing, just because. He also

• 8:43Sam Parr?

  owns a ton of different sports leagues. So he owns Team Sky Cycling. So that's the team that won the Tour de France eight times. He has, he owns one third of Mercedes F1 team. He owns one of the best America Cup sailing team. He owns 25% of Manchester United soccer team. He used to own Chelsea, which is, you know, a big soccer team. But the really cool thing that he's done recently, have you heard of a car, I think it's called the Grenadier? Have you seen this car? Google this car and tell me if you've seen this. It looks like a G-Wagon or a Defender.

• 9:14Shaan Puri?

  Yeah, yeah, it looks a lot like a G-Wagon.

• 9:17Sam Parr?

  Okay, so check this out. So in 2016, this guy Jim, he loves Defenders. Now, the thing about Defenders is Land Rover, and I think Land Rover is owned by Jaguar. So Jaguar still makes the Land Rover. But the real famous ones are the old ones, the ones from like the 80s and late 90s. Those are really cool. They're really boxy. But although enthusiasts love them and they pay sometimes hundreds of thousands of dollars for these cars, you can't really buy new parts anymore because Jaguar just quit manufacturing it. And he is a huge enthusiast of this, of the Defender. He loves it. And he's a rich guy, so he was able to get a meeting with someone high up at Jaguar. And they go to a bar called the Grenadier Bar.

• 10:00Sam Parr?

  And Jim is like trying to persuade them like, hey, you know, I'll even help pay for the tooling. Is there a world where like, I think it could be for shits and giggles, it would be fun. Let's remake some of the parts for the Defender. Because the Defender is the most comfortable off-road car. But unlike a lot of new cars, it's still got a little edge on it, you know? It's got like, it's like, it feels not too luxurious. It feels like a proper off-road car. And they're like, no, man, this doesn't make sense. We're not gonna do it. So he's like, you know what? Fine. I'm just gonna create a car company. That's what we're gonna do. And so within his chemical business, they create this thing called the Grenadier. It's a SUV that you just saw. I think it sells for like 80 or 90 grand. It has a small cult following in America. I think it's pretty big in Europe as well. And he's like, screw it. We're gonna make a car company.

• 10:45Sam Parr?

  Just because I love these cars so much, but they don't make them anymore. So I'm gonna make what I think it should be, the way it should be done. And so there's this famous line where, just to give you an idea of what he's like, he said, "It's the most comfortable off-road vehicle bar none." And the journalist says like, "Yeah, but like those late models, they don't like feet, they don't like fit the environmental standards of today, nor are they really that safe." And he was like, "What's wrong with that?" And he's like, he goes, what's wrong with that? They're effing great cars. And so he starts making these cars and that's where we are now. So these cars have a huge following in America. A bunch of like my car nerd buddies like them. They're known for being like, kind of sparse in the interior.

• 11:28Sam Parr?

  So if you look at the interior, they've got these like, the switches look like switches from like a tank a little bit. Like it's like all mechanical stuff. And they're kind of a pain in the ass. And the truth is, is that it's a horrible business. Since 2018, he has lost $2 billion on this car company. Last year, the company was negative $300 million in profit. It's not going so good. But it's awesome.

• 11:56Shaan Puri?

  All right, let's take a quick break. This podcast is called My First Million, and it's probably the question we get asked the most. How do I go from zero to making my first million? And so I did an episode a little while back where I broke down exactly the sort of philosophy and frameworks that I would use. So things like finding your white belt business or identifying your bear on a unicycle advantage. The core way that your two skills can overlap. Or why maybe starting a service business is better than starting a software business for your initial businesses to make that first million. And so the team at HubSpot has created a guide that took the stuff I said in that episode. They laid it all out for you. You can get it for free in the description below. Just click that link and it's all yours. All right, back to this episode.

• 12:35Shaan Puri?

  What do you love most about this guy?

• 12:37Sam Parr?

  He's got a you attitude that I really dig. I really like, if you Google him, you'll see that he's wearing a barber wax jacket, which is sort of like an adventurer's like jacket. It's like what like, kind of like rough and tumble, blue collar, like guys wear. It's like work wear. And I appreciate that he still has a little bit of edge to him, even though I think he's like the 90th richest man in the world. And so I really appreciate that. And I also appreciate that he does shit just cuz.

• 13:07Shaan Puri?

  Yeah, there's something great about the, I don't know if you want to call it side quests or the just because or the F you attitude. But I think both of us love that. I have this thing that I keep running called the Side Quest Hall of Fame. And it started because Palmer Lucky was on Joe Rogan.

• 13:26Shaan Puri?

  You know, Palmer created Oculus. He created the leading VR headset, sold it for a few billion to Facebook. Then he created Anduril, the leading, you know, the first kind of like significant tech company that was doing defense stuff. It's worth like, whatever, a hundred billion dollars, whatever it's worth right now. And he goes on Rogan and he says, "Oh, you know what I want to do next?" And I'm expecting him to say a company, like another startup. And he's like, "I want to create like a privately funded version of the X-Files." He's like, "I just want to go hunt for aliens." And he's like, "I'll fund it and we'll go find them. We'll figure out what's going on." He's like, "I feel like the government's not telling us everything."

• 14:07Shaan Puri?

  I was like, "Well, that would be an epic use of this person's talent and money." And, you know, since then, he's done, uh, he did this thing where he like basically brought back the Game Boy.

• 14:17Sam Parr?

  I owned one. I was about to bring that up. He's done N64 and Game Boy.

• 14:20Shaan Puri?

  Yeah, he's got Mod Retro. And so he's just, he just does cool shit. And then, you know, he's kind of like these, you know, dresses eclectically, all this stuff. And I saw this video recently that, you know, I thought a more endearing side to him. Did you hear the, the, the video about why he wears the Hawaiian shirts?

• 14:37Sam Parr?

  No. Would someone make fun of him one time and he like was going to do it out of spite?

• 14:41Shaan Puri?

  Well, he was like, we grew, he's like, "I grew up really poor and so I didn't have any, we didn't have any money for new clothes, so I had to wear my dad's old Hawaiian shirts every day." Like, that's just all I had. My wardrobe was like seven of these. And I wore them and I got made fun of, but that's all I had, so I wore them. And he's like, and then when I sold my company, uh, you know, he says something where it's like, "I got like, I got some money and I tried to change, and then he's like, basically reverted. He was like, "Actually, I'm just going to wear the shirts that like I like and I know, and like, this is what I'm all about. And I don't need the fancy clothes to like validate me as like I've done it." And I love that. I just think he, he carries that FU energy with him pretty much everywhere.

• 15:23Sam Parr?

  A thing that he has that I don't find him to be, um, A hard O. I don't find him to be insufferable. I find him to be someone who's confident in his opinion. And you could challenge him and he's open to new ideas, but he's very confident. I find him like at a very young age. I mean, when we talked to him, I think he was thirty three and he was like saying like, here's the thing about defense contractors. They're doing this wrong. That's a very bold thing to say, right? And I appreciate that about him. And I used to meet these people and I used to think, how do I become like that? But now I think, how do I raise children that are that way? How do you raise kids that are that confident at such a young age, but not in an insufferable way? And also in a way where I think they've backed it up by studying whatever they're gonna say.

• 16:08Sam Parr?

  Have you ever thought about what do you think his parents were like? I guess he said he was raised poor, so he had a not a wealthy family. And yet they still were able to like instill the sense of like, you can do it and you can figure this out.

• 16:23Shaan Puri?

  Well, I'm not sure how much it is watering the plant versus the soil you grow up in. So for example, there's a reason that the most successful people on earth typically come from disadvantaged backgrounds. You go and look at, you know, why is your sort of dyslexia so common amongst successful people? It's like, it is disproportionate. You know, you would expect it to be the proportion of dyslexia in the population. But no, it's a higher percentage in successful people. Or, you know, why are, you know, so many athletes come from, you know, poor families and single, single mother homes? And there's things like this, like, you know, they don't have all the training and the advantages and the best gear and the best anything, right?

• 17:05Shaan Puri?

  But like they have the one thing that can't be bought, which is like this sort of insatiable hunger. And so I think that confidence is a byproduct of the adventure and adversity you've faced in your life. So you don't just say be confident. Actually, the advice to somebody who wants to be confident is go have more adventure and adversity. It will make you will get hardened by confidence over time. Because the more adventure you do, where you put yourself in unfamiliar situations, or the more adversity you face, and you come out still surviving, even if you didn't win, you survived. Then the next thing doesn't seem all that scary. You sort of think to yourself, well, I did all those things. Of course I can go into this new unfamiliar situation and thrive as well. And so I think that the confidence is not so much like.

• 17:49Shaan Puri?

  You know, his parents told you, but, but like, you know, the environment, like if you grow up and you're poor, but you're tinkering or you're nerdy or you have access to certain books. You know, it's, it's kind of amazing how these very small things make a difference. There's a story I read this morning, actually, about Dan Brown. You know who Dan Brown is, the author? He wrote The Da Vinci Code and like,

• 18:08Sam Parr?

  Oh, okay.

• 18:09Shaan Puri?

  A bunch of other like thriller adventure books.

• 18:11Sam Parr?

  Yeah.

• 18:12Shaan Puri?

  Where a hero goes on a quest, they're sort of a puzzle, they gotta figure it out. Growing up, Dan did not find Christmas gifts under his Christmas tree as a child. His father, Richard Brown, a math teacher, instead put a treasure map under the tree. And Dan would have to follow the treasure map to have for a trail of clues all over the house and sometimes all over the neighborhood, until he finally found the present. This sparked a deep love of solving puzzles, cracking codes and hunting treasures. He channeled this into The Da Vinci Code, Angels and Demons, and other thrillers that have sold more than 200 million copies. All about cracking ciphers, untangling coded messages, which is, which is the heart of his books. A lesson from this, a childhood obsession can be a source of infinite inspiration. If you want to seek a meaningful quest as an adult,

• 18:56Shaan Puri?

  look towards the childhood toys and games that you couldn't get enough of. There, there may be clues in there.

• 19:01Sam Parr?

  It's so funny, that's the, that sounds like a cute thing, but there's been so many times, and I wonder if there's actually like research that verifies this, but there's been so many times, we had Robert Greene on MFM a while ago, and that was really great. And he said, to find the thing that you want to dedicate your life to, you have to do something that sounds easy, but it's really challenging, which is you have to revert back to what you were like as a 12 year old, before you had people who put pressure on you, before you realized that something was stupid or uncool. And before you got jaded and when you were excitable. And you have to ask yourself, what was that thing? And I've heard people talk about this constantly of like, in order to be great as an adult, you have to do this challenging thing of pretending to be a kid.

• 19:42Shaan Puri?

  Where were you weird as a child?

• 19:44Sam Parr?

  Yeah.

• 19:45Shaan Puri?

  What, what would it be for you? So if you think back to that era, what were you doing? You're 12, 13, 14, you know, let's, let's take this window, eight to kind of 14 years old.

• 19:53Sam Parr?

  Skateboarding a ton. I was skateboarding a ton and I was always taking apart. Remote control cars and building them back to building them in interesting ways to get out doing chores. For example, I spent a whole six months trying to rebuild a remote control car. So it had a mop on it because I hated sweeping the floor. And I distinctly remember doing that and being obsessed with it and building model airplanes, like assembling things that had clear instructions. I love doing.

• 20:23Shaan Puri?

  So I mean, in a way, you're you chose to build things instead of doing nine to five, instead of doing a job.

• 20:28Sam Parr?

  Yeah, well, I also loved. I had a huge passion for selling CDs. I remember I used to make like $30 selling like $3, you know, burned CDs. And I loved doing that. And for the longest time, I thought I was going to be in the entertainment industry. My hero was Ari Gold from the TV show Entourage. And I went to Belmont University because they had this degree called a music business degree, which I made it through three years. And then I was like, I'm gonna drop out of school. Just give me like, the easiest degree I can get, like with the credits that I got. So I didn't get to complete that degree. But the reason I got into media, and the reason why I probably enjoy doing this and working in the content game is because I wanted to work with entertainment people. But then I realized that Hollywood is full of idiots and I hated them. But I can build

• 21:13Sam Parr?

  my own little world like that.

• 21:16Shaan Puri?

  Yeah, I don't know how much of this is like horoscopes or whatever, where you just sort of, you try to back test and fit fit anything into it. But I just was in Austin yesterday, and I did a podcast with Monish Prabhan. Monish has this thing where he tells these stories about Buffett. And he says, his his theory is basically that a huge percentage of your personality is pretty hardwired and baked by the time you're five years old. And you don't want to spend your whole life fighting your your nature. That's the first thing. And then he says that for kids, we do pretty much the opposite thing we're supposed to do. So he says, the human brain, if you just look at brain science, is that there's a golden window between, I think he says, the ages of eight to 18.

• 22:01Shaan Puri?

  So there's this 10-year window where a child's brain is developing in such a way that it can specialize and do some incredible things if you specialize during that window. And the people who do, and if you go look at like, oh, Bill Gates when he was coding, or Mark Zuckerberg when he picked up programming, or Mr. Beast when he started doing YouTube videos at age 12, like, it's often that these people who become the extreme performers, that they were doing something pretty specialized during this golden window. And he's like, in school, we tell them to do the exact opposite. Hey, go to school, spend 30 minutes in eight different subjects. Don't, you know, go an inch deep in each one, don't care about anything, you know, don't specialize, become this like super generalist. That's the factory model that we have. So he's like, we're doing them kind of a disservice.

• 22:46Shaan Puri?

  He's like, your job as a parent is, you know, by five, their nature is somewhat baked. You observe it. And eight to 18, if they show an interest or an obsession at anything, feed it. Let them go crazy with it, let them get obsessed. And lastly, like, get them around as good of a peer group as you can. Those are really the only things you're gonna be able to do, is kind of his opinion. I don't know if I fully read that, but I think it's interesting. And then he tells a story of Buffett. And he's like, you know, when Buffett was a kid, he did all kinds of little hustles, right? Like, he would buy a thing and he would sell it, right? So Coke bottles and pinball games inside of barber shops. But one of the things he loved to do was he would go to the racetrack. He would watch other people betting. And he didn't bet, he was a kid, but he would watch other people betting.

• 23:31Shaan Puri?

  He would watch the horses, study the track. And then what he would do is, at the end of the day, he would go collect all of the discarded betting slips that the, you know, people go to the horse track, they drink, they watch the thing, they're having a good time, they just chuck away their betting tickets. And he would see that, oh, actually, this wasn't a, this wasn't a losing ticket. That, actually, they got a third place payout here, they didn't realize it. Or they got a second place payout here, they didn't realize it. He would collect all the, and, you know, 80, 90% of it's trash. But if even 5, 10%, he could make some money, then he would ask his aunt to go cash the tickets for him, and that's how he made money. And like, it's not that different than what value investing is, right? He would go look at a thousand companies, a thousand tickets, you know? Most of them are rubbish.

• 24:14Shaan Puri?

  But when he found one that had like hidden value, he would pounce on it and he would make money. And that's essentially how Warren Buffett, you know, invested for the first, you know, whatever, 10, 15, 20 years of his, of his investing career. And he bought his first stock when he was seven and, you know? So he was doing things in this kind of golden window as well, which I think is interesting, especially, you know, for you and I, we have kids, not at that exact age yet, but, you know, I think about that stuff. Uh, I don't know to what extent you can control it or you want to try to control it, but it does seem like it's worth knowing that and looking out for the right signals rather than being blind to it.

• 24:46Sam Parr?

  There's this, um, I'm not religious, but I grew up going to Catholic school and you gotta read the Bible a lot. And there's this biblical story where it's like someone's by a volcano or something. Um, I forget what it is, but if there's like a loud like earthquake or like a natural disaster. And then, um, they're told like, you have to listen to God, what God's telling you. And they're like, well, I hear this really loud noise, but it doesn't like, I don't hear like a person talking to me. And they're like, even when things are really loud, the whisper or the God talking to you, it's gonna sound very faint in a whisper. And that's the challenge is you have to like, you know, like really pay attention when there's a lot of loud noise, because the most important stuff is just gonna be a really faint whisper. And you have to like try and hear it.

• 25:28Sam Parr?

  And I don't really care about the message when it comes to God on that one, but I do think that like one, that's what this thing is because it's like that, that whatever you're being told what to do or you feel compelled to, it's a lot of times it's not a yell. It's like this really small whisper that you have to like, and that's like quite challenging. It's really hard to try and listen to like where you're being drawn to, you know, like, or where your energy is pulling you to. It's not a push. It's a very, very, very small, like faint nudge.

• 25:56Shaan Puri?

  Right. Yeah, there might be false positives along the way. And it's only obvious in hindsight. Like when I was thinking about that, like, what was I doing when I was 12? Cause I wasn't, and I used to actually be like, kind of insecure about this. I was like, I wasn't really selling lemonade as a kid. And, um, you know, flipping CDs and sneakers and whatever, like the, the pattern I see now that I invest in a lot of founders. I'm like, I didn't really have that, like the light bulb didn't come on for me, at least in terms of like trying to do business until I was, you know, 21. And frankly, like, I don't think I'm the best entrepreneur or CEO anyway. So like, maybe that's, that's true that that was the signal. But there were a couple of, couple of signs that I, when I did think back and I actually like, took more time to think about, I was like, what the hell was I doing back then?

• 26:40Shaan Puri?

  What was I really into in a way that like, or what was I naturally pretty good at? That I didn't maybe pay as much attention to, but now I can think about it. And the two that came to mind was I randomly, uh, like entered a, like improv class and improv competition. When I was like in sixth or seventh grade and we like made it to like the Texas state finals or whatever. For like what we were doing, it was like a duo's improv, which like, that's what this is. This is duo improv, what me and you do twice a week. And like, that actually did come pretty easily. I did have a lot of fun doing it. I didn't triple down into it because I, you know, whatever life happened. My parents didn't, didn't help me and I didn't know to ask for it.

• 27:20Shaan Puri?

  But like, maybe there was a signal there of like, hey, you kind of like this making things up, thinking on your feet, riffing off a partner. If there was another way to do that, what would that look like? And, you know, I don't think I could have predicted podcasting, but it does make a little bit of sense now that I look back on that one.

• 27:34Sam Parr?

  The other day and someone asked about you and I was like, in another lifetime, or maybe even this lifetime, Sean's going to be, uh, either like a comedian or something in show business.

• 27:45Shaan Puri?

  I was in a movie or two when I was like a little, like in same, same era, sixth, seventh, eighth grade, something like that. And then the other one that I noticed was I love video games, which is pretty common, you know, boys love video games. But the way I played video games was a little bit weird. And so if I said, hmm, what was, let's pay attention to the weird. You know, I used to play Madden or NBA 2K, but I would basically never play the games. I would only do franchise mode. Which is just where you're the general manager, you're building the team, drafting the players. You're basically making bets, you're invest, essentially like scouting, investing, simulating to see the result. And I would just simulate like decades in these games without ever playing the actual game. And my sister would make fun of me like, are you ever gonna play this game? Like, what is this like fantasy roster you're building? But yeah, I don't know. I think, I think it's interesting to go look back.

• 28:30Shaan Puri?

  I, I'm not sure again, how much of it is like forced narrative versus reality, but maybe there's something to it. I've now heard this enough times where I kind of gotta take it somewhat seriously. And I think it is important because uh, it's like when you are screwing a screw into the wall or whatever. And if you start out crooked, right, if you're at the wrong angle. No matter really how hard you push, it's just constant friction, right? You're just like breaking the wall, breaking the screw and breaking your own wrist, trying to make it go in. And then if you get things like aligned, right, it's like, oh, just, you know, four spins to the right, click. And I feel like a lot of my life was pushing screws into walls at the wrong angles. You know, trying stupid projects, trying things that weren't really in my nature, trying to be somebody who I wasn't.

• 29:16Shaan Puri?

  And man, life got a lot easier and it got a lot more successful when I sort of figured out like, oh, what do I actually like naturally pretty inclined to doing? Well, do you think you figured it out? Yeah, I think like what we do is like probably the closest approximation to it. Like if I look at what I do today, I get to nerd out on topics, which has always been something that I would do. Like I would always go down these like rabbit holes. And then this kind of duet improv type of thing, like being able to riff on topics and being generative with ideas. Has always been good. And then the other side of it is investing. I don't want to like play the game, but I like being the GM. I like being the, the sort of the, the franchise mode of doing this.

• 29:56Shaan Puri?

  And so I've had way more success, um, you know, investing or even incubating companies with other CEOs as operators now, right? Like I think in our portfolio is probably like, forget like angel investing, just like in the companies we own a big chunk of. There's like four companies or so where there's four CEOs. And I don't do any of the day to day work and it's performing so much better than, you know, back when I used to do my own startup and I was all in on it, right? So it's a better fit for me to do that. I didn't know you had four. You're doing shit that you don't even talk about. Well, I want to talk about some of them soon. Um, and hopefully I will have some news sometime in the next few months that I can, I can come on and, and maybe start to tell these stories.

• 30:37Shaan Puri?

  All right, let's take a quick break and I got a question for you. When a buyer asks AI for a solution like yours, does your business come up? Most companies have no idea. And by the time they found out, they've already lost the deal to another company that did. HubSpot has AEO, which helps you show up in the moments when the right buyers are looking for a company like yours. Before the first click, before they fill in the form, that is the moment HubSpot AEO is built for. Check out hubspot.com, the agentic customer platform for growing businesses.

• 31:04Sam Parr?

  What did you think of Austin?

• 31:06Shaan Puri?

  Austin is a funny place.

• 31:09Sam Parr?

  A funny place.

• 31:11Shaan Puri?

  I went to my like hotel room and I walked in and housekeeping was in there. But I was surprised and I came out and I told Ben, I go, y'all got white housekeepers here?

• 31:24Sam Parr?

  I had a white housekeeper that my wife hired and I was like, I bet you she's going to be a drug addict. And I was right, she was a drug addict. I don't hire these guys anymore.

• 31:35Shaan Puri?

  It's like, there's this great standup bit where, I forget who it was, like Aziz or if it was Hussain or I forget who it was. Like an Indian comic was talking about like how they made it. And they were like, I'm gonna go adopt a white baby.

• 31:47Shaan Puri?

  Just bring a white baby to like events and like stunt on people because it's like, yeah. I adopted a white child. So I don't know, Austin's a fun place. I mean, one interesting thing is because we're, I mean, you know, I mean, Austin, which is much more populated city. And we were just sitting like in a coffee shop, basically working all the time. So many people came up that love the podcast. That was fun.

• 32:07Sam Parr?

  That's crazy, right?

• 32:08Shaan Puri?

  And then they would tell me their story, right? And it's like, oh, wow. And so you, you know, it's almost like you get a lot of ideas for the podcast, just talk to these people. Like this guy came up and he's like, I'm all in on social selling, social commerce. I know those two words apart, like what is it together? What is, what does that mean? And he's basically like, you know, people who are making, you know, hundreds of thousands, if not millions of dollars, just making TikTok videos for products and they're just getting affiliate fees, just making content. And they're not influencers, they're not famous people, but they make like the best way to sell this soap, this teeth whitener, this, you know, these leggings, this hoodie.

• 32:49Shaan Puri?

  And that they're generating, you know, 40,000 a month, 100,000 a month, you know, 200,000 a month, 400,000 a month.

• 32:55Sam Parr?

  What platforms?

• 32:57Shaan Puri?

  On TikTok and whatnot. So like there's the lot, there's like live selling. Uh, that's like whatnot and, and TikTok. And then there's like just short form video. And I mean, I'm not, I wasn't like unfamiliar about this concept. We use it in our e-commerce brand, but it's amazing just to hear the individual person stories. Yeah. She worked at this like hair salon. And then she just took the product from the hair salon and started talking about it on TikTok. She doesn't have a following, but the way TikTok works is any video, you know, it's like America's funny. Some videos, any, any video gets to have its, you know, its day on the for you page. And she realized like, wow, if I just get good at kind of like authentically, and I use quotes because it's like, obviously not authentic, but like they tend, they don't look dressed up. They're not in a fancy place.

• 33:42Shaan Puri?

  They're in their bedroom. They look like they're just talking informally to you like they're, hey y'all, just want to tell you about, oh my God, this or like whatever this thing is. And they're just making a killing on it. And so, you know, this guy was like, trying to build the, the agency around it and a podcast around it.

• 33:56Sam Parr?

  What's an example of product soaps you said, just anything?

• 33:59Shaan Puri?

  Anything dude. I don't know if you've seen, have you, are you like, are you tapped into this like wave of what's going on?

• 34:04Sam Parr?

  No, no, no. So I don't, I, I, I don't have a TikTok and I've seen whatnot, but I, I buy a ton of stuff off eBay. So like, I know about like buying used stuff.

• 34:13Shaan Puri?

  I'm not stupid. And so I don't know what you're talking about.

• 34:20Shaan Puri?

  I read.

• 34:21Sam Parr?

  It's not part of the eBay trend, right? Like this is all new shit.

• 34:25Shaan Puri?

  eBay, I should say eBay.

• 34:27Sam Parr?

  What I mean is social commerce, like it's all like new products. It's not, uh, like it's just commission based. Like they're selling someone else's stuff and they're getting an affiliate fee. They're not selling like.

• 34:36Shaan Puri?

  And it's without permission. So it's not like they needed to cut a brand deal, right?

• 34:39Sam Parr?

  Got it.

• 34:40Shaan Puri?

  You just grab the product from the shop and then you sell it and then brands start, and then brands can see if you move product, right? You move weight on your corner and then they start sending you free shit to try their stuff. And then you could send, you could try to sell their stuff. And if it works, it works, right? Like, and if your video is good, then the brand puts ads behind it. So like, there was a good, a really good podcast, uh, by, um, our buddy Sean Frank. Uh, I think their podcast is called the operators podcast, like e-commerce specific podcasts. He did one with the CEO of Comfort. Have you heard of BMFRT?

• 35:11Sam Parr?

  I see that guy and I see this other guy named Greg Louvecki, who started a thing called Bloom, which I think is energy drinks. But I'm seeing these guys all over the place and they're using phrases that I've never heard before. Like, I knew what UGC was, but like, they're using it in way different phrasing. And they're also like implying that they have like tens of thousands of people making this content on their behalf. And this is a totally foreign concept to me. And so this company Comfort, as far as I could tell, as a total outsider, went from something like zero to $500 million a year in revenue in like five years. And I went to their website, it's just like a fleece hoodie, I think, right?

• 35:46Shaan Puri?

  Yeah, super basic hoodie. But yeah, so they're, they're a good example of this.

• 35:52Sam Parr?

  How big did they get to?

• 35:53Shaan Puri?

  So the model is this, the model is you have a product. The old way of selling it was, the old way, as in the last 10 years, was you run Facebook ads and you run Google ads. And for both of those ads, you, your team makes the content. You typically will have an ad creative team in-house, one, two, 10, 15 people. Their job is to come up with concepts, they do photo shoots, they do scripts, they do static images, give it to the designer, the editor, you make it, you run it, you see what works, you're putting paid ads. That's what's been working. Well, there was a new game in town. And if you remember, I kind of hinted at this maybe a year or two ago, where I said, I invested in this company and it's gone zero to 30 million in revenue in like a few months.

• 36:36Sam Parr?

  What was it? Can you say what it was?

• 36:38Shaan Puri?

  Uh, I can't, I don't want to say the exact brand. So the, the brand blew up, it was in a bad way, not the good blow up. It was a supplement brand, it was crushing it. The product was all fine, but they got banned off Amazon because they were like, like manipulating like reviews of other companies or stuff like that, like of other brands or something. And so Amazon was like, oh, you guys were the ones who wrote a bad review about them? Boom, shut down your ad account.

• 37:03Sam Parr?

  They weren't playing by the rules.

• 37:05Shaan Puri?

  Ruined the company. But, and I think I even told you at the time, I go, this is growing faster than any ecommerce brand I've ever seen. And, um, you know, zero to 30 million in a couple of months. And, and I think I told you, I was like, I hope I can come on in a year or two and say the playbook that they use. Well, the playbook is, is more or less out now, now two years later, which is that what ecommerce brands do. Is you basically gift or, you know, called seeding. You seed your product out to not one, not 10, not even 100, but maybe 1,000 creators that are out there. And these creators are everyday people, non-famous people, so not influencer, not micro-influencer, not influencer, person with time on their hands, who has been on TikTok

• 37:49Shaan Puri?

  and reels enough to know what type of content could work. And those people will make sometimes just like, you know, one video, but what ends up happening is that they realize, oh, I should just make 30 to 40 videos a month. I should make a video every day and I'll have multiple accounts and I'll post it and so they basically rapidly test content. And so now you've got, instead of having an in-house team of a couple of people doing 10 to 20 creative assets a month and usually just thinking inside the box, because it's like, this is my job, this is what I do, I work at the company, we have a way of doing things, you're just letting the market, letting the crowd figure this out. You're crowdsourcing your creative and that's, UGC means user-generated content.

• 38:34Shaan Puri?

  So you're getting in a given month, 3,000, 5,000 different pieces of content that go out there, most of which get absolutely no views, but a few of which pop off. And then, and then all of them look at you, then you tell all the creators who are like, you know, on board, you say, look at this content. This worked. And then they all start to remix and then the hive mind gets smarter every single month and they keep trying to do it, they keep trying to sort of one-up themselves. And brands like Goalies, Goalies is a gummy, like vitamin brand. I don't know if you've seen their like commission structure for this. They, they started out with apple cider vinegar gummies and grew it to like, you know, whatever, 500 million or something in revenue in very short order. What? And then they got slapped on the wrist and they kind of tanked and they're coming back, whatever.

• 39:17Shaan Puri?

  But like, point is, they were pretty aggressive on this model. So what they were doing was, as they found good creators who were good at making this content, they started incentivizing them, more than the commission. So there's a default like commission on these platforms, right? 15%, 20%. You set your commission. What's a platform? TikTok, TikTok shop.

• 39:35Sam Parr?

  Oh, so, so, so you find all your influencers on TikTok?

• 39:38Shaan Puri?

  Usually, yeah.

• 39:39Sam Parr?

  Wow.

• 39:40Shaan Puri?

  And, and so you, what you do is you go to those TikTok influencers. Again, sorry, not influencers, TikTok creators. And they get, they get a commission. And so again, just to describe the system, it's crowdsourced, it's way higher volume. So you're talking about thousands of pieces of content a month instead of, you know, maybe a hundred. You don't control it, you don't operate it. In many cases, you never even met them. They just pull, pull your product and your shop listing and they just decide, you just say, I'm, if you're an affiliate, use this, use this tag so that you get paid if you sell product, right? That's the core idea. Now, what happens is, on top of that, goalie started going crazy. So they were like, yo, if you do $10,000, you get 15% commission. If you do $100,000,

• 40:23Shaan Puri?

  you get, you know, a trip to Miami. You do a million dollars, you get a million dollars in a month. You get this condo in Miami, you get this Lamborghini. They started giving away crazy shit. I'm making up the tiers, right? The, the math made sense for them. But they have this like, I have this like one cheater that goalie was giving creators and like the top thing was a condo in Miami. The next thing was a Lambo. And then it goes all the way down to just like, oh, you get like a bracelet. Um, you know, like you go to Chuck E. Cheese and there's the prize wall. And like, you know, you end up with the shitty rubber frog, but like up there is like, you know, the Nerf blaster. And they, this is basically the model that they were doing. And so there's been several brands that, I mean, several, hundreds of brands that have aggressively used this strategy and, uh,

• 41:07Shaan Puri?

  yeah, it works, it works very well.

• 41:09Sam Parr?

  What? I'm looking, I just Googled it. It said that they went from zero to $4 million a month in 30 days.

• 41:14Shaan Puri?

  Oh, they got way higher than $4 million a month. They, they, maybe they did in 30 days, but they went way high, way past that.

• 41:20Sam Parr?

  Okay. So let me ask you a bunch of questions. This is so fascinating to me. One, is this stuff profitable? So a company like that, like, that got however big, so four times 12 is 36 million. So they, they're, they were at least doing 36 million a month. They were probably doing hundreds of millions a month. If you're doing that amount of money, are you actually creating a valuable company?

• 41:40Shaan Puri?

  Well, you asked two different questions. Is it profitable and is it a valuable company?

• 41:44Sam Parr?

  When I say profitable, I'm gonna say cash flow positive.

• 41:46Shaan Puri?

  Should be profitable. Here's just basic math. Let's say you're giving a 20% commission. So a way to think about that is you outlaid no cash upfront. Okay, so no ad spend. This is, they take the risk of making the content. If they sell, then you pay. So you pay out of the revenue, not upfront, the way that normal ads work, right? I go to Facebook, put 10 grand in, I have no guarantee I get anything out. So with this, I only pay when they sell. I pay a fixed percentage of the revenue that they sold for. So let's say it's 20%. Well, that means my marketing spend is 20% of revenue. Now, a normal ecommerce brand is spending somewhere 20 to 50%, depending on their level of aggression, what phase of the business that they're in, et cetera, et cetera.

• 42:29Shaan Puri?

  Usually, at the beginning, they'll run 40%, 50% aggressively to go get a big customer base. And then those customers hopefully will repeat buy. And that's where the profits come from those customers. And then, you know, over time, your ad spend as a percentage of revenue shrinks because you have all this returning revenue coming in. But at the beginning, you have no returning revenue. So it starts out pretty high. So is it profitable? Yeah, it should be profitable. I mean, it doesn't take a lot of, it doesn't take a lot to make something unprofitable. So, but you should be able to do this profitably. Now, are these companies valuable? That's a different question.

• 43:01Sam Parr?

  Hold on. When we say profit, I'm actually saying like, can the owner pay themselves a huge sum? If you're making...

• 43:07Shaan Puri?

  Yes, but it depends on when you're at, where you are in your lifecycle. Year one, no. Year two, maybe also no. But also, could be yes, if you just decide to grow slower, right? So it's like, up to you how much you want to prioritize taking market land and like going for the opportunity.

• 43:24Sam Parr?

  Because Sean Frank will always say like, you could have a business, he's put the numbers out there. I forget exactly what he said, but it was something like a hundred million dollars a year. And like, the two owners are barely drawing seven figures a year.

• 43:36Shaan Puri?

  E-commerce is like saying, is like startups where the spectrum of outcomes ranges from everything to, you know, you can go from loser shirt to, oh my God, this person is rolling in profit. I know people on all ends of that spectrum, there's operational excellence. How are you gonna run? And so there's no like rule. What I'm saying, though, is that... In some cases, it's like, let's take startups, for example. Startups, you're fighting gravity. Almost every startup fails, even the ones by smart people, even the ones by smart people who work hard, who are like, doing all the best practices of management, right? They'll still probably fail. Because building a billion-dollar startup, which is usually a novel idea or disruptive company, like the venture startup game, I'm not talking about like, a person who starts a barber shop. I'm talking about venture startups.

• 44:20Shaan Puri?

  It's such a hard game, the gravity is that you're gonna fail. E-commerce is not like that. E-commerce is, the gravity is you should be able to succeed if you're, you know, smart and hardworking. And so, same thing here. Now, are these companies valuable? No, not really. Because value is typically based on defensibility, and a buyer of this business doesn't know how long this channel, this tactic is gonna last. And if this is what's driving all your growth, then you're gonna trade at a much lower multiple.

• 44:47Sam Parr?

  This is for the folks out there who have a business that does at least $3 million a year in revenue. Because around this point, that's when you're able to look up, after being heads-down for years building your company, and you realize two things. One, you've done something great, but you're still a long way from your final destination. And two, you look around and you realize, "I am all alone. I've outrun my peers." Which means, you're now making $10 million decisions, alone, by yourself. And that is when mediocrity can creep in. My company, Hampton, we solved this problem by giving you a room of vetted peers, of other entrepreneurs, who are gonna hold you accountable, call you out on your nonsense, and help show you the way. Because the fact is, is that there's only a tiny number of people in your town who know what you're going through and who have been there.

• 45:31Sam Parr?

  And they're hard to find. And if you can't find them, it's hard to have this explicit time, this explicit place where you sit down, where the rules are clear that we are here to help each other and to be one another's board of directors. The biggest risk is not failing. You have a company and it's working. You're gonna be fine. But the biggest risk is waking up 10 years from now and saying, "Shit, I barely grew, in business and in life." And for people like you who are ambitious, wasted potential, and regret is what we want to help you to avoid. We have made so many of these groups, and we have 1,000-plus members. And I know this stuff actually works, whether you work with Hampton or you get your own group on your own. But having a group like this, a group of people who you meet with in real life, once a month, it can change your life. It changed mine, and I know it will change yours. So, check it out. JoinHampton.com

• 46:18Sam Parr?

  It seems like you could start off being a nobody company and you sort of have a get rich mentality. I do think you can, it's better to start off like thinking my brand should be amazing. My product should be amazing and that's how I should grow and I add ads and all these tactics on top of it. But I think that some companies do start off doing these like stupid things early on and they, and they swap. They, they can switch. Like I don't know anything about Ridge, but like there's a world where this was like a silly dumb thing. And then he switched it. I'm just hypothetically making this up. It could have switched to like, oh, this actually product is good and we are going to invest in our brand.

• 46:55Shaan Puri?

  I mean, have you seen like original athletic, have you seen the original Athletic Greens?

• 47:01Sam Parr?

  No, was it lame?

• 47:03Shaan Puri?

  This is, you know, one of the early days landing pages of Athletic Greens.

• 47:12Shaan Puri?

  I mean, it's like, this is late night. Beach body MLM infomercials, right? Dude with six pack, girl eyeing him. All your vital nutrition in 30 seconds or less, money back guarantee, 100% satisfaction, limited time offer, act now. Giant orange arrow, rush my order is the name of the button for buying it. The world's number one superfood cocktail, antioxidant rich with great sweet taste. Okay. So that's like, you know, an old version of that. That's not even the original version. That's the old version, right? And you go look at it today, right? If I go to like the AG1 website.

• 47:46Sam Parr?

  Yeah, it looks great. It looks like.

• 47:48Shaan Puri?

  And you have Hugh Jackman drinking from a glass vase. His daily, you know, green nutrients, right? With clinical trials and blah, blah, blah, blah. And like, you know, who knows? Who knows what if this shit works or not, but you know, yes, you're right. Like you can absolutely start a little janky. A little move fast and break things, a little, little, you know, fake it till you make it. And then you can adapt and you could like, you know, go, go, go more and more legit over time. You can improve your formula. You can improve your packaging. You can improve your sales methods. You can get off one hacky sales tactic and get more diversified, right?

• 48:30Shaan Puri?

  Like go from there. I mean, Mois, who did Native, I think is one of the best examples of this. I think he's told all this publicly. So I don't think we're saying anything that's out of school here. Here's, here's the timeline that I love. Mois is sitting next to you in a coworking space and he's at some point had this idea of, he looked at Etsy and saw that the number one selling product on there was a natural deodorant. And he realized, oh, wow, that's market validation. Cool. Like that. Contacts a woman on there, says, hey, can I take your natural deodorant? Can I put my label on there? You know, goes outside the office. There's like-

• 49:05Sam Parr?

  Cause it was like, it was like homemade, uh, it was like homemade ammonium. I, or I forget the drug or the chemical, something free, you know, par, par, what's it called?

• 49:16Shaan Puri?

  Parabens and aluminum and parabens.

• 49:18Sam Parr?

  Aluminum free, whatever. And he, and it was like a mom and pop thing. And he was like, let's commercialize this.

• 49:23Shaan Puri?

  Yeah. So he was like, I'm gonna put my label on it. We've both seen right outside where you guys worked, there was a restaurant or something called Native that looked exactly the same with the exact same logo. Somehow that ended up to being his name and his logo. Um, you know, he grew the thing with cheap Facebook ads and grew it like crazy and was like fit packing orders himself on the kitchen table. When she was like, dude, I can't make like 10,000 bars of deodorant in my bathtub anymore. He's like, okay, like can I buy the formula off you and I'll move to like another person and figure that out. He used to put deodorant on his armpits, run around the block, two, two different sticks, two different formulas, run around the block, have his brother smell each one and be like, which one's better? And like, that was his like clinical trial that he was running. And

• 50:07Shaan Puri?

  so, you know, like you do what you gotta do. If somebody asked him, I remember early on, like, uh, he told the story where somebody said like, you're starting a deodorant company. Like Mois, do you know anything about deodorant? And he goes, today I know nothing about deodorant, but in six months, I'll know everything there is to know about deodorant. And that was true. And like, yo, ends up selling the company for a hundred million dollars to Procter and Gamble. And now it's in Target. It's like the best selling thing.

• 50:31Sam Parr?

  Now it's probably a multi-billion dollar company.

• 50:32Shaan Puri?

  Multi billions in revenue, right? Like unbelievable, unbelievable, like sort of story, right?

• 50:38Sam Parr?

  And there's a even better part where Procter Gamble or someone was in the meeting to buy the company. And he was like, well, how do you expand? He's like, well, Can you put the Native logo on a shampoo bottle? And they go, yeah, I go, okay. That's what you do.

• 50:52Shaan Puri?

  Do you think you guys could print it on toothpaste? All right, you'll be fine. And by the way, there's another, there's another great story. People should go back and listen. He, he was like in the first 20 episodes of this podcast.

• 51:02Sam Parr?

  I'm shocked that he says some of the stuff he says. Mois is very good with words.

• 51:06Shaan Puri?

  Oh, he's super entertaining. He tells a story of how when they were trying to sell, they didn't own the trademark for Native. And he's like, shit. Procter and Gamble is not going to buy this if I don't have the trademark for my like consumer, you know, good that's going to be on the shelf of Target someday. And so somebody was squatting on it. And the negotiation story of getting that trademark was great. Like, there's just so many great stories in the, in the, the formation of Native.

• 51:29Sam Parr?

  A lot of people don't realize this, but Mois, now that I think about it, it is. So Mois used to have a company called Casker or Caskers. Which, did you know about this?

• 51:39Shaan Puri?

  It was like a spirits brand, but I don't actually know. What was it? Was it actually a liquor or was it a D to C shop? What was it?

• 51:45Sam Parr?

  It was basically like they would get rare whiskeys and I think wines that only had limited runs and they would do drops. So it was sort of like, this was like during the guilt group or guilt craze where it was like, you know, crazy good deals, but you only have a limited amount of time to buy it. So I think it was basically like a email list of like wine and alcohol buyers of who like rare stuff. And then they would broker deals where they would, you know, send out an email, an email drop of like a rare whiskey. And he sold it. He sold it for, I forget how much, but he, you know, changed his life at the age of 30. But he has this cool blog post that interestingly, it's actually on the hustle, my old website, but it used to be on Medium.

• 52:29Sam Parr?

  But the first, listen to the first few sentences. The Hair of a Dog is a sports bar located in lower east side of Manhattan. Like, like most sports bars in New York, it has an ungodly number of televisions, a beer pong table and 3.5 stars on Yelp. More importantly though, Hair of the Dog has a single dollar price rating, which is really important when your goal is to be drunk by 3pm. It was October 2013. My co-founder and I were in negotiations to sell Caskers, an e-commerce site we founded. Just one and a half years ago that sold spirits, meaning booze, not ghosts, online. Negotiations had already dragged on for a few months and we were days away from our scheduled closing date. And then he goes on to like, explain the story of how he sold. But isn't that a beautiful like first couple of sentences?

• 53:10Shaan Puri?

  That's awesome.

• 53:11Sam Parr?

  And then he like tells, he like gives five lessons about his starting casket. He called it birch box for men, if you ever heard of that. But he's like, says be frugal, be relentless. And then he says, be experimental, be careful. And he gives like all these cool tidbits about it. Last question, can this work for B to B products? Why don't, why do people only do this for consumers?

• 53:33Shaan Puri?

  I think, I think one of the great arbitrages that B to B businesses don't do the proven tactics of B to C companies. So B to C companies are out there fighting for their lives with customers and marketing to try to build their brand. And B to B companies, if they simply borrowed the playbooks from B to C, not everything would work, but way more would work than doesn't work. And it's, I think it's woefully underused. And usually the skill sets, a lot of people who are in B to B don't know this because they don't come from that world. People in consumer tend to stay in consumer or they go to, they go to B to B and they are so scarred that they only bring over like a portion of it. But I think, I think a lot more of it would work.

• 54:13Sam Parr?

  This turned out to be pretty cool. We were supposed to have a guest on. This is a little behind the scenes. They're supposed to have a guest on, something happened last minute and here we are and it turned out to be quite fun.

• 54:23Shaan Puri?

  That whole thing was live and improvised, unprepared. There we go.

• 54:26Sam Parr?

  All right, that's it. That's the pod.

• 54:37Shaan Puri?

  Hey, let's take a quick break. I want to tell you about a podcast that you could check out. It is called The Science of Scaling by Mark Robert. He was the founding CRO of HubSpot and he's a guest lecturer at Harvard Business School. The guy's smart and he sits down every week with different sales leaders from cool companies like Klavio and Vanta and OpenAI. And he's asking about their strategies, their tactics and how they're growing their companies as, you know, head of sales or chief revenue officer. If you're looking to scale a company up, if you're a CRO or a head of sales that's looking to level up in your career, I think a podcast like this could be great for you. Listen to The Science of Scaling wherever you get your podcasts.