#168 - How to Reverse Engineer Businesses, The Indonesian King of Coal & the Story of Adida‪s‬

Want to be featured in a future episode? Drop your question/comment/criticism/love here: https://www.mfmpod.com/p/hotline/ Support the pod by spreading the word, become a referrer here: refer.fm/million --------- --------- Sam Parr (@TheSamParr) and Shaan Puri (@ShaanVP) discuss: * (2:07) Jake Paul, Bill Clinton, the Pope and a Prince * (13:30) TurnedYellow and the IP licensing business * (22:42) Cronyism and the Indonesian King of Coal * (33:48) "Business is the Art of Copying" * (47:53) Are robo-pets the future? * (53:33) The amazing story of the founding of Adidas --------- --------- Have you joined our private Facebook group yet? Go to https://www.facebook.com/groups/ourfirstmillion and join thousands of other entrepreneurs and founders scheming up ideas.

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

• 0:00Sam Parr?

  This Chinese Indonesian guy was a politician?

• 0:03Shaan Puri?

  No, he was the guy, he was the middleman. So what he realized was, um, cause I was like, okay, cool. We have this coal. What do we do with it? He's like, oh, we just sell it immediately. As soon as we sign the paper, we have the coal, we sell it to Exxon. And I'm like, oh, okay. So how does that work? He's like, well, I bought all this coal for 2 million. And then we like, I bought all the coal for 2 million and then we sell it in blocks for 20 million each. I'm like, well, that's like 400, 500 million. How are we, we're turning 2 million into 500 million? And he's like, yeah. I'm like, well, what? That's amazing. Like, why didn't Exxon, why don't they just go in directly by this?

• 0:37Speaker 02

  I feel like I could rule the world. I know I could be what I want to. I put my all in it like my days off on the road. Let's travel, never looking back.

• 0:47Shaan Puri?

  I just got vaccinated.

• 0:50Sam Parr?

  Um, uh, that's pretty cool. I got a new toy. Do you want to see?

• 0:54Shaan Puri?

  Yeah.

• 0:59Shaan Puri?

  Oh, nice. Sam's holding up a gun.

• 1:04Sam Parr?

  I was, uh, I just drove by a, a Bass Pro shop and I walked in and I was like, I was just walking around just to look at like beef jerky or something. And I just saw it. And I've never even remotely owned anything like that. And I was like, hey, those are cool.

• 1:21Shaan Puri?

  You didn't need to like, get certified or like do a background check or something? You just walk into a Bass Pro shop and buy a gun?

• 1:28Sam Parr?

  Um, well, yeah, I mean, I just walked up to the counter and I go, oh, those are handguns. Those are neat. What's the deal? Like, how do you buy one of those? And they go, well, just give us your driver's license and we'll run a background check and you can walk out in five minutes. And I go, huh, sick. I'll take that one.

• 1:42Shaan Puri?

  You just held it up, by the way, like you didn't hold the gun part. You held it with two fingers and like it was pointed sideways.

• 1:51Sam Parr?

  Yeah, I still have to learn how to use it. I don't even have ammo for it and I have like a lock on it. I'm like, pretty paranoid. I gotta figure out how to use the damn thing.

• 2:00Shaan Puri?

  Very Texas of you.

• 2:01Sam Parr?

  So we have something, we have, well, I'm a, I'm a, I'm a Texas resident, resident now. We have something cool happening on Wednesday.

• 2:08Shaan Puri?

  Yeah.

• 2:09Sam Parr?

  We are going to interview Jake Paul, which might be, in terms of just like, famous people, might be the most famous person we've ever interviewed.

• 2:18Shaan Puri?

  Probably the most famous person I've ever met.

• 2:21Sam Parr?

  I met the Pope once.

• 2:24Sam Parr?

  And I met Bill, I met Bill Clinton when he was in office.

• 2:27Shaan Puri?

  Alright, you peaked.

• 2:27Sam Parr?

  So, but Jake, Jake, I did that, both of those when I was, like, eight years old. So Jake Paul's like, number three, but Jake Paul's coming on.

• 2:36Shaan Puri?

  What does that mean? You saw the Pope? You, you shake hands with the Pope? What is, what does it take to meet the Pope?

• 2:41Sam Parr?

  Uh, shake hands and said hi in a busy crowd.

• 2:44Shaan Puri?

  Not, oh, that's pretty good. Alright, you shook hands. Let's see, who is the most?

• 2:47Sam Parr?

  Or did we, like, more like a high five? It was more like a high five. Bill Clinton, Bill Clinton, I shook his hand and like, said, hey, uh, what's your, what's your real first name? And he goes, William. And I go, hey, why, why do you have white hair? He goes, because I'm old. And that was, so I met him.

• 3:04Shaan Puri?

  Oh, wow.

• 3:04Sam Parr?

  And he asked my name. So I actually, I actually met Bill Clinton.

• 3:06Shaan Puri?

  You really shot your shot with Bill Clinton?

• 3:10Sam Parr?

  Well, I was, like, six years, what year was that? What year, 92, whatever it was. I was like four or five.

• 3:14Shaan Puri?

  Was it pre Lewinsky, post Lewinsky? What was going on?

• 3:17Sam Parr?

  Uh, pre.

• 3:18Shaan Puri?

  Pre, yeah, pre, pre. Back when he was still young Bill. Alright, um, that's pretty good. I met, uh, the, the closest thing I ever got to that probably was, well, I have this really long Orlando Bloom story that's very funny, but I'm not gonna tell it. But it's like, if you're my friend, you've heard me tell the story 10 times, because it's just a go-to, it's just a winner of a story. You know, the, the stories that you just like, you just have in the bank, if you ever need to be like, you know, the life of the party.

• 3:43Sam Parr?

  To impress someone.

• 3:44Shaan Puri?

  But then I also, you know, the, you know, the Duke, uh, Duke Andrew or something like that? I forgot his name is, Duke Andrew, I don't know how you say his name.

• 3:54Sam Parr?

  I know the name. Is he the guy, did he get in trouble with Jeffrey Epstein?

• 3:56Shaan Puri?

  Yeah, he just got in trouble, uh, for that, or maybe for other things. I don't know. Something, something happened that's not great for him. But he was doing a tour of Silicon Valley. And so we got word that, oh, the Duke is coming to our office. Prince Andrew, Duke of York. Yeah, that's right. He was the Duke of York. So I got word, oh, in the morning, the Duke of York is coming to the office today. Can you give a presentation? I didn't know what the Duke of York was. Still don't really know what the Duke of York is. He's just like not in the Prince lineage, but whatever. So anyways, he first, a full security detail comes, sweeps the whole office, you know, the morning, just to make sure. They get the whole layout. They know where the entrances are. They know where the exits are.

• 4:37Shaan Puri?

  And they're like, okay, this place is secure for the Duke. And he shows up at 4pm and I've got this like presentation I've been working on. I threw my whole day away and I just started working on this presentation for the Duke and explaining what we do and why it's so great. I'm like, I gave my all. And the presentation, you've been to our office. Our office has like couches, not like kind of chairs. So very comfortable couches. So he sits down on one of our couches and is just flanked by security guards. And I fire up the first slide on the big projector and I start talking and I see that he's asleep. He is passed out by the, before the first slide even starts, he has fallen asleep in his chair. And now I don't know what to do because I'm giving this presentation to this one guy who's asleep. It's all my

• 5:22Shaan Puri?

  employees who know what the heck we do. They don't need this presentation. They all see that he's asleep. I see that he's asleep. The security guards are kind of like not saying anything. They're not doing anything. And so I give the presentation to the sleeping Duke of York for the first 20 minutes.

• 5:40Sam Parr?

  Oh, my God. I'm cringe.

• 5:42Shaan Puri?

  I was so lame. I just-

• 5:44Sam Parr?

  That's actually really cringe.

• 5:46Shaan Puri?

  Well, I'll finish the story with one thing because it's kind of relevant to what we do. So at the end, because we were an idea lab and like this podcast about brainstorming business ideas and talking about, shoot the shit about business ideas. So we, I basically paused at the end and I was like, okay, I could keep going, but like, it'd be more fun if you actually joined us in doing what we do and you kind of brainstorm some business ideas. And so we asked him a bunch of questions. We were like, do you guys, like what apps do you guys use? And he was like, we don't have phones. We're like, what? He's like, he's like, we don't get to use our, our like personal cell phones. I guess at that time, I didn't know exactly what he was saying, but there's some limitation where they don't have, they don't just have like iPhones with normal apps and they could do whatever they want. It's like very like pre-installed, use this phone, use what it has. And like, if you want

• 6:30Shaan Puri?

  more, go to IT and they'll, they'll help you or something like that. And, and then I go, what business ideas you have? He goes, There needs to be a fact checker. So politicians can't lie. I was like, what? He's like, we need to hold politicians to, to what they say. There's so many politicians that just lie and we need them to, and everything should be on the right, everything should be like on the record. It'd be fact checked at all times. It should be public if you're lying. That was his idea. Number one. And then he had something else. I was like about like, I don't know, like digitizing paperwork or something like that. And I was like, all right. Thanks, Prince. See you.

• 7:04Sam Parr?

  So there's actually, I could riff on that. There's this thing called politico, politico. What is it? I actually don't know how you pronounce this. Oh God, everyone makes fun of me for not being.

• 7:13Shaan Puri?

  Politico?

• 7:13Sam Parr?

  No. Politi, P O L I T I. Fact. Politifact?

• 7:20Shaan Puri?

  Politifact. Okay.

• 7:21Sam Parr?

  Have you ever heard of that?

• 7:24Shaan Puri?

  No.

• 7:25Sam Parr?

  So what it does is it looks at, like when there's a big, a big election, they analyze all the major speeches done by some, by someone. So in the case of Trump or Biden, when they were doing their debates, they would, they have a meter that is, says true, mostly true, half true, false.

• 7:50Shaan Puri?

  Right. Okay. I've seen this.

• 7:51Sam Parr?

  Pants on fire. And they actually check all the stuff they say. And they say, this is or is that true? Here's why. And it's kind of cool. Politifact, I guess it's called. It's by the.

• 8:02Shaan Puri?

  I like that it goes to pants on fire. That's, that's a nice touch.

• 8:05Sam Parr?

  It's pretty cool. I like that. So your, your boy was on to something. Not a great business, but it, it does exist. There is something that does this.

• 8:12Shaan Puri?

  Right. Okay. Wait, one more thing. You said, we got on this tangent because you said Jake Paul's coming on Wednesday. So why is Jake Paul coming on? And what are we going to do about it?

• 8:23Sam Parr?

  So Jake Paul, okay. So I am basically copying Sean and I started investing in some companies and Jeffrey Wu is a friend of mine. I think he's a friend of yours too.

• 8:35Shaan Puri?

  Yeah.

• 8:35Sam Parr?

  I'm mildly close friends with him and he saw that I was investing and I saw that he was investing and he goes, and we were just shooting the shit. I go, what are you doing? And he said, what are you doing? And we exchanged ideas. He goes, hey, just. Want to do a phone call? I'll bring on my partner Jake. And I was like, oh, aren't you partnering with Jake Paul? He goes, yeah, yeah, yeah, I'll bring him on. And I go, all right, sounds good. So we just do a Zoom and I'm sitting there with Jeffrey and or Jeff and Jake. And Jake's like, hey, what's your cell? Let's just have a text chat, like a group thread. And by the way, I love my first million and I know the hustle. Like, can I come on the podcast? Or I was like, yeah, sounds good. So here we are. It's kind of weird, but kind of funny.

• 9:20Shaan Puri?

  That's pretty legit. I also want to know from him. Well, I'm going to ask him, but like Jeff is like a tech founder, sold a company. Started like a company backed by Andreessen Horowitz. It's like a keto company. And and then somehow, somehow like partners with Jake Paul. Like, I don't even know how they became friends. It's like, how did this Asian dude from the tech world? Become like good enough friends with Jake Paul where they'll start a business together? Like, do you know that?

• 9:47Sam Parr?

  No, I don't. I know that Jeff moved Miami and Jeff's like a manly man. Like Jeff's into guns and fighting and big muscles and whatever. Men are supposed to be into and like Jake, I assume is also into that stuff. So they they must have met and Jeff's real, real smart and savvy. And I have a feeling that it's a good shtick, which is like Jake's the famous one gets access and Jack is Jeff is a straight man who. You know, makes make sure the.

• 10:16Shaan Puri?

  Knows how to do it.

• 10:16Sam Parr?

  Yeah. And that's historically a great partnership. It's actually, well, there's this guy named Brian Lee who does this and he's partnered with Shapiro. I forget Shapiro's first name, but Shapiro was the lawyer for OJ Simpson. And they started Legal Zoom together and Shapiro was like the celebrity. And then he did it with Kim Kardashian and they started shoe dazzle together.

• 10:39Shaan Puri?

  Was it Kardashian's dad? Kardashian's dad was the lawyer.

• 10:43Sam Parr?

  Well, OJ had like eight lawyers. Robert Shapiro is his name. OJ had like eight lawyers. So it was like Kardashian. It was Johnny Cochran. It was, uh, whatever, yada, yada, yada.

• 10:53Shaan Puri?

  And was, was he the one who also partnered with Jessica Alba for the Honest Company?

• 10:57Sam Parr?

  Yeah. So this guy named Brian Lee, uh, I guess he's Korean. He's a Korean American. And I guess Lee's Korean, I think. And, uh, he partnered with Shapiro for legal Zoom. And Shapiro was supposed to be like the face and the famous person. Turns out Shapiro, I mean, he's a really successful, he's a savvy business guy. So Shapiro goes, let's do this with some more celebrities. So they partner with Kim Kardashian and they do Shoot Azul, which raised a bunch of money, but I think kind of flamed out. Uh, but then they do it with one other company. And then eventually they do it with Jessica Alba and Honest Co., Honest Company. And it's the same thing. Jessica Alba was supposed to be like Shapiro, kind of like the face, the famous person. Turns out she's pretty savvy, apparently, uh, and good at, uh, you know, whatever, whatever it is she's good at. I guess running a business. I don't know what her role is, but she's great.

• 11:40Sam Parr?

  And that's what he does. Uh, and so partnering with celebrities can actually work out quite well.

• 11:45Shaan Puri?

  This company is a, it's a big company. That's like a, that's like a big, that's like a billion dollar company, I think. The Honest Co.

• 11:51Sam Parr?

  I think, I think many.

• 11:52Shaan Puri?

  What do we want to talk about today? I got a bunch of random, random topics. Do you want me to start? Did you have one you wanted to start with?

• 11:59Sam Parr?

  Well, I actually was researching a fair bit of your things, um, because I found them to be a little bit interesting. Do you want to talk about Turned Yellow? Is that interesting? Or how about you lead? I'll let you lead everything and I'll, and I'll follow. But I researched all your stuff.

• 12:12Shaan Puri?

  Okay. We can talk about Turned Yellow. So we'll start there. Um, this is a cool business. So this is in a category that, uh, our friend Ryan Beagleman said this word. He was the first one I ever heard say this. I don't know if he started it or he picked it up somewhere. But it's the term drop servicing. So people have heard of drop shipping, which is basically like you market on Facebook or wherever else you sell a product to a customer, but it's a product that you don't hold in inventory. As soon as you get the order from a customer, you place an order with your manufacturer. The manufacturer ships it directly to the person. So it's a way to do e-commerce without having to buy and hold inventory, because you're just directly shipping to customers straight from the factory.

• 12:53Shaan Puri?

  And typically kind of like lower margin, but it's a great way to get started if you don't have any money in e-commerce. That's kind of like the idea.

• 12:59Sam Parr?

  And Turned Yellow is actually one of Jack Smith's, uh, favorite things. Jack might be an investor, but I, uh, I know he's a huge customer of Turned Yellow.

• 13:10Shaan Puri?

  Right. So what Turned Yellow does is similar. It's a drop servicing company. So instead of shipping you a physical product, they do a service for you kind of on demand. So Turned Yellow, actually, a friend of ours, I don't know if you know the guy Alex who's behind it, but he bought the company recently. And I won't share any like the numbers or anything like that, but

• 13:30Sam Parr?

  Alex who?

• 13:31Shaan Puri?

  Really cool. Volodarsky or something like that. V O L O is how you start the spelling of his last name. You can find him on Twitter. He's at Volodarsky or something like that. And he also started this like 90s theme, kind of like a party or parade or thing that used to happen, like 90s Jam Fest or something like that. It was all nostalgia, which I thought was cool. That's why I first reached out to him. And then I found out that our mutual friends Xavier and Siava invested in him when he bought Turned Yellow.

• 14:02Sam Parr?

  Oh, sorry. It wasn't Jack. It was Siava. I'm an investor and see if it's fun. That's how I heard about this. Yes. Okay.

• 14:08Shaan Puri?

  Exactly. So what Turned Yellow does is they basically, it's a great gift. So you can submit a picture of your family or your friend, and they'll send you a drawing, like an illustration of that same photo or that same person turned into what looks like kind of like a Simpsons character, like Turned Yellow, like, you know, all the Simpsons characters are yellow. So they make, they cartoonize any picture for you. So it's like you, you went and got this custom made for your friend. So it's this great gift and simple, simple business. They basically on one side, they have a whole bunch of artists who can crank out these like illustrations in this one art style. And on the other side, they just advertise on Facebook or whatever. And their,

• 14:50Shaan Puri?

  their number one advertisement is this like picture of Howie Mandel, holding up his Turned Yellow, where he got Turned Yellow. And that ad probably has made them millions of dollars.

• 14:58Sam Parr?

  There's so many replicas. So if you keep your ads on and type in Turned Yellow. So there's turnedyellow.com, which is, I guess, I think the original. Then there's Simpson Simpsonify me. Then there's Art of Yellow. And they are all complete total rip offs. The exact same website practically. And that's kind of interesting. I would have thought this would have, you would have had to have had some type of licensing or blessing from Simpsons.

• 15:25Shaan Puri?

  I think it operates in a slightly gray area because they don't say anything about The Simpsons, but the art style does evoke that idea, that look, and I think that's part of why people are buying it for sure.

• 15:34Sam Parr?

  It's 100% The Simpsons. I mean, they're sitting in front of the cat.

• 15:37Shaan Puri?

  He's my friend, so I'm trying to say it a little bit softly here. But anyways, the cool thing, what they were doing was they bought the company, the company was doing well, had all these competitors because everybody was kind of doing the same, everybody was trying to clone them. And then they brought on this badass licensing guy who has been like in the licensing business for decades. And the idea is that he was gonna go and actually talk to all the different IP holders of Simpsons and Futurama and Harry Potter and any other brand and basically say, hey, we would love to cut a licensing deal with you so that we can do this and do it like totally above board. You make some money from this. We lose a little bit of money, but we can kind of like knock out all these competitors who are doing this and they don't want to work in the above board. They all want to be under the table here.

• 16:21Shaan Puri?

  And so that was the business plan. And I don't know exactly how it's going now, but I thought this was really cool. It's a cool business that does very good revenue. And there's a whole bunch that are like this. And right now, what people do is they just do this for every popular theme. So it's like, you can do one, like a lot of people like Rick and Morty. That's like a cult phenomenon now. So people are doing this with the Rick and Morty art style, and then people are doing this with another art style. And this reminds me of what our friend Suli did where he got the rights to Family Guy and made the Family Guy mobile game. And he made a version of Candy Crush that was themed Family Guy. So he took a proven game, Candy Crush, that's like super addictive, amazing at monetizing,

• 17:04Shaan Puri?

  and he just skinned it with the Family Guy branding and got Family Guy to help promote it. And Family Guy got millions of dollars in revenue from the success of this game.

• 17:11Sam Parr?

  And then eventually, yeah.

• 17:13Shaan Puri?

  And then they did the same thing with Harry Potter.

• 17:13Sam Parr?

  Yeah, he did the same thing with tons of stuff. But how do you think you even, like, I wouldn't even know the first thing, what do you do? Do you find someone who happens to know someone who knows someone and they introduce you to someone at Fox? I mean, like, I don't even know, that seems really hard to make happen.

• 17:32Shaan Puri?

  Yeah, well, I think that's why they brought on a guy who's done decades of licensing because he has the connections already. He maybe worked with these same brands to do a different licensing deal, maybe putting faces on T-shirts for Bud Light or whatever, right? Like, so I think that's one thing is like, there is a network aspect to it where you can get your foot in the door. But I don't know, did you ever listen to the first episode of this podcast with Suli, where he explained how he got the Family Guy rights?

• 17:54Sam Parr?

  No.

• 17:54Shaan Puri?

  Kind of insane story.

• 17:55Sam Parr?

  Yeah, I listened to the episode, but that was two years ago now. What happened?

• 17:59Shaan Puri?

  Ages ago, yeah. Basically, he was like, all right, first, why did he need this? They were just making normal mobile games, but distribution costs kept going up and up and up because Facebook was getting more and more expensive to advertise on because all the game developers were all competing against each other, bidding the prices up. So he's like, shit, we need a way to stand out. We need a way to acquire users without paying for as much in ads. We need a more efficient way to acquire users. So he had seen that The Simpsons did a mobile game with EA and they made like Simpsons, like the Quest, you know, I don't even know what it's called, like some Simpsons game with EA. And he's like, oh, that's genius. That's what we need to do. And this is before the Kim Kardashian mobile game and before others started copying this playbook. So he's like, okay, what's the next franchise that we can

• 18:42Shaan Puri?

  get? Family Guy. So Family Guy is also owned by, I think, Fox.

• 18:46Sam Parr?

  Yeah.

• 18:46Shaan Puri?

  And so they have, they have Simpsons and they have Family Guy. So they go to, they, they get in touch with, you know, Google around, they get in touch with the person to who, who's in charge of the stuff. And they're like, yeah, like, okay, I don't know. I've never heard of your startup, but we're going to probably just go with EA. I mean, we just did The Simpsons with them. It was pretty successful. Like EA is like a big name, trustworthy. You don't get fired for going with EA. I might get fired if I go with you guys. So they're like, okay, you know, fair enough, but they didn't give up. And so what he said was every, he had decided, like, the company was screwed if they didn't find, like, pull a rabbit out of a hat. So he just put all his chips into this one strategy. And it was like, okay, every morning when we come into the office, we're just have a whiteboard. The whiteboard says, how do we go get the Family Guy rights? I was like, what can we do? And they would just come up with some ideas and

• 19:30Shaan Puri?

  then they would try it that day and then they would like fail and they would come back again the next day and like the next day. And then eventually his number two, it was only him and two other people who knew about this plan in a company of like 50, 60 people, I think. And so the number two guy was like, dude, we've exhausted. We've, we tried this, we tried this, we, you know, blah, blah, blah. And so eventually Mark Andreessen was on their board. He was their investor. So they had asked Mark Andreessen, hey, do you, you're super well connected. Do you know, know the guy? He said, yeah, I'll make a phone call. So he makes a phone call. They get the meeting, but the meeting again is like, I don't know, guys. So he says, all right, how do we pull this off? He goes, first, we're going to economically make this like a ridiculous deal for them. So like, we're going to offer them this ludicrous upfront guarantee of X millions of dollars of, you just get that money from day one.

• 20:14Shaan Puri?

  Number two, you're going to get this like awesome fat royalty on the back end if this game is successful. And so that was kind of lucrative and they were like, okay, we're into that. And by the way, he didn't have the money to make, like, he didn't have the money to give them.

• 20:24Sam Parr?

  Yeah, it was a bluff.

• 20:25Shaan Puri?

  Promised it and was like, I'll go raise the money if they say yes, was his plan. And, um, and then the last thing was they found out that the guy, the main guy who's the decision maker, his like mentor or was like a family friend of Mark Andreessen or something like that. And so he's like, oh, talk to the mentor guy. So they talked to the mentor, the mentor is like, okay, guys, I hear what you're saying. I like your spunk, like, um, I'll, I'll help you out. And they put him on the board of their company. They're like, dude, we'll give you shares, we'll put you on the board. And he was like, guys, don't need it. It's okay. And he put in the word and basically that, that got the guy to like lean their way of like, yeah, give these guys a chance. They're legit. Don't worry about like that. They're not a big household brand. In fact, these guys will go all out for you.

• 21:10Shaan Puri?

  It's life or death for them. And that's what you want in your partner. And so that's how they ended up getting the pitch to work and got the rights to Family Guy and saved the company.

• 21:16Sam Parr?

  Do you ever think, at least I, I mean, I think of this and do you?

• 21:21Sam Parr?

  When I think of stories like this, I think to myself like, why wouldn't you just go to this person with the job and just be like, and just say all the obvious, which is dude, you don't want to get fired. You also hate your job.

• 21:39Sam Parr?

  I'll give you a hundred thousand dollars personally. Why are you a hundred grand? Can you please just like, like what's stopping just like total cronyism? I mean, I guess that what's stopping it, maybe I should rephrase this. It's pretty mind boggling that that's not more like,

• 21:53Shaan Puri?

  That there's not more.

• 21:54Sam Parr?

  There's not more of that.

• 21:55Shaan Puri?

  So, okay, so what, let's, let's answer both. What's stopping it? Well, usually the person you want to bribe is in a pretty high up position. So they're doing well already. They're not hard up for money.

• 22:04Sam Parr?

  Maybe. How much do you think the person makes a year who's like in charge of licensing for Family Guy? I bet you not.

• 22:09Shaan Puri?

  I bet that guy's. I bet you that guy's easily pulling in $300, $400,000.

• 22:13Sam Parr?

  Okay, so that's not stupid money, but that's good money.

• 22:18Shaan Puri?

  Good money, right? So he's not like, you know, he's not desperate. Let's put it that way. Second thing, uh, you know, in a big company, I don't know if you've had yours yet now that you got acquired, but there is like a whole like anti bribery training you have to do. They really put it in your head like, hey, look, even just like taking any gift over $50, tickets to a game, you know, a dinner, you need to report it. It could be bribery, blah, blah. So you get it gets put in your head and you start to think, okay, do I want to risk it all? Cause if I actually got caught doing this, I would basically not be able to have a career anymore. So you kind of have to pay me so much that I'm, I'm willing to risk the odds of me getting completely blacklisted from my profession where I've worked so hard to become a VP after 30 years.

• 22:58Sam Parr?

  And I'm not saying, I'm not saying, by the way, I'm not even remotely implying that I'm into this. I'm just saying, I'm actually.

• 23:04Shaan Puri?

  Of course, you're saying some other guy might be into this.

• 23:07Sam Parr?

  What I'm saying is I'm surprised that this doesn't, I'm surprised it doesn't happen more. It's just crazy that we all agree that was, uh, we, we mostly all agree what's right and what's wrong. And we kind of stick to it. Um, because like if Sule would be like, look, man, I'm going to give you this deal. If you get fired, I'll give you a job.

• 23:27Sam Parr?

  But I'm going to pay, I was going to pay your company $10 million. I'll give you just a million of that. I'm shocked that doesn't happen.

• 23:33Shaan Puri?

  One is, somebody said this the other day. They go, so how many employees does Amazon have? How many employees does Facebook have? How many employees does Google have? Huh? I wonder how many foreign spies work at these companies.

• 23:44Sam Parr?

  A lot.

• 23:45Shaan Puri?

  It's like, sounds crazy like foreign spy. Like, what is a movie? It's like, no, no, of course it's not zero. Like, of course there are people working for China, for Russia, for different countries as foreign agents. And there's actually been like cases of this where guys basically took the, you know, like the, the machine learning model out on a USB stick out of Google and like basically went back to Russia or like, that's like a thing that has been, has been found, um, to have, to be happening in these companies. So one is, it's crazy that that's actually happening that, you know, I've probably worked with somebody who is actually like a foreign agent, which is just like a bizarre thing to do.

• 24:19Sam Parr?

  Agent on behalf of Google. I mean, how many times do you think that there's someone who is a Facebook employee? And they're like, hey, look. I'm gonna fire you and we're gonna act like we're not friends anymore. I need you to get a job at Snapchat and I'm gonna funnel you money and I need you to tell me everything.

• 24:37Shaan Puri?

  That everything.

• 24:38Sam Parr?

  Yeah, that totally exists, which is kind of funny.

• 24:40Shaan Puri?

  That has to happen.

• 24:41Sam Parr?

  We don't talk about that.

• 24:42Shaan Puri?

  So then, so, okay, so then, then I was exactly that. So I've had this experience where I thought, honestly, I didn't think anything was wrong with this. But again, this is where maybe my moral compass is a little screwed up. But I was like, oh, for example, when we got acquired, we had talked to five other companies while we got acquired. And for each of them, they're laying out their map, you know, how, what's their strategy? How they're gonna win, how we fit into that strategy, you know, where they're strong, where they're weak, what the numbers are. So when we finally got acquired, I was, I walked in and I was sort of like, guys, congratulations. You got me, you got my team, you got our code base, but you also got a little bit of intel.

• 25:18Sam Parr?

  No, they were.

• 25:19Shaan Puri?

  Like I talked to, they had no interest. I didn't even say anything, but I was like, nobody asked me anything? That's insane. And I was like, I know I would have, if I was in that company's shoes and I acquired somebody who had talked through the strategy with the CEO of all these different companies. I would have been like, so like, what'd they say? What do they plan? Like what, how do they view the world?

• 25:37Sam Parr?

  Well, that's dude, most people are.

• 25:39Shaan Puri?

  Tell me their secrets. It's just like, what were they saying? It's like not, it doesn't even seem wrong to me, but the fact that nobody asked me tells me, huh? Maybe they do think that would be wrong to ask. And maybe my just compass is screwed up. What do you think?

• 25:51Sam Parr?

  Well, this is my whole point, which is mo, and, and, and I just want to say this again, incredibly clear. Like I'm not saying I do this or support it. I'm just saying, I'm surprised it doesn't exist. But the moral of the story is most people are actually quite ethical. And particularly if you're in a room full of people, they're gonna be extra ethical. And so I know, I'm not surprised that they didn't do that.

• 26:13Shaan Puri?

  And I told.

• 26:13Sam Parr?

  But as an owner, I would have been like, hey. Come here. What?

• 26:19Shaan Puri?

  Exactly.

• 26:20Sam Parr?

  I wouldn't.

• 26:20Shaan Puri?

  Especially when I was like at a startup.

• 26:22Sam Parr?

  I act, but I wouldn't ask you.

• 26:23Shaan Puri?

  Nothing to lose and I have everything to gain.

• 26:25Sam Parr?

  But I wouldn't say like, tell me their numbers. I would say like, I would, I would just be like, what do they like? What motivates them? Are they cool? Does it seem like they have their act together? Like these like fluffy questions and then if you.

• 26:35Shaan Puri?

  Okay, I can say honestly, I totally would have asked for their numbers. I would have been like, how big is it? How much revenue are they doing? I was guessing, you know, 500 million. Is it 500 million?

• 26:45Sam Parr?

  You have to ask those other questions first. You gotta like, see if they're gonna bite the.

• 26:48Shaan Puri?

  You gotta see if the person's cool with it or not.

• 26:49Sam Parr?

  Yeah, you don't wanna make them uncomfortable, but I am a bit, I am surprised. We, you and I know someone who was involved in a lawsuit because they were hired at one company, a large tech company. And previously they had worked at the competitor and.

• 27:08Shaan Puri?

  Dude, we can, we can say the names. This is public information.

• 27:10Sam Parr?

  All right. It was Anthony Popliano. He worked at Facebook. This is all public. This is, you can read the deposition or I believe it's deposition.

• 27:18Shaan Puri?

  He didn't tell us. I read, I read the deposition like a nerd and that's how I know.

• 27:22Sam Parr?

  Yeah. And basically according to the records that we read, he worked at Facebook. He decided to work at Snapchat and they said something like, here's a piece of paper, write down the, um, the organization chart. Tell us how it works and then go and recruit those people. And he, according to the deposition said, no, that's, I'm not a chance. And they fired him. Snapchat did, or, or they like butted heads or something like that. And so, yeah, I do.

• 27:46Shaan Puri?

  Yeah, they butted heads over that. Yeah.

• 27:47Sam Parr?

  I, I think this stuff happens actually a fair bit, but I'm actually shocked it doesn't happen more.

• 27:53Shaan Puri?

  Right. I, I, my only concern in that situation would just be, I don't wanna make my own person, my teammate uncomfortable. If they don't feel like sharing or they don't, they don't wanna share, they feel like that's wrong. Okay, no problem then. But if they were down to share, I would 100% be asking all the questions. I'm thinking from my startup brain, at a big company, you sort of have more to lose. It's not really worth it. You're not like in a like sort of, you know, life or death situation of a company, like you don't need the information. But I really have been surprised. Like we will hire people who are like from YouTube or whatever. And they and wherever we're at, we're like hypothesizing like, well, you know, like, how do other companies handle this? Blah, blah, blah. What can we try? I'm like, that dude worked there. Why don't we just ask that guy like, hey dude, what did you guys do? How did it work? What was it like?

• 28:37Shaan Puri?

  Is this retention number good or bad relative to what you saw like? And nobody asked the question, which is like, maybe it's just not in the big, big meeting settings, but I have been surprised at that. And I know if you're working like overseas, there are other companies that don't have that same credo. I worked for a guy in Indonesia. My first, first job I ever had, it's kind of like a summer job. And my dad hooks me up with this guy. He's like, oh yeah, this guy is known as the king of coal in Indonesia. He owns like all the coal of Indonesia. I'm like, oh, sweet. Okay. So I'm like, I go do the summer job with this guy.

• 29:08Sam Parr?

  Was he an American or an Indonesian?

• 29:11Shaan Puri?

  He's a Chinese guy living in Indonesia, a fifth grade dropout. Can't speak like any English, pretty much like very broken English. I, he had four women just doing his email on giant TV screens in his office. Cause I don't think he could even type. And he was just like, or he was like, or like, he would just say out loud what he wants to reply to every email. And, and that's how he'd do his business. And so I like, as I get there, I'm like, oh, cool. You're the king of coal. Like, how'd that happen? What'd you do? And basically, what I realized pretty quickly was this guy's entire business model was big companies like Exxon and BP and Chevron, they all wanted land in Indonesia. And the land was owned by the local, like city province. They had the rights to it.

• 29:55Shaan Puri?

  So they, so they had the thing. And the local guy would just only like, the only way to do business with this guy was to bribe him. Like, that's the only thing the guy wanted was a bribe. The local politician wanted a bribe. If you give him the bribe, you can have the land rights.

• 30:08Sam Parr?

  So this, this Chinese Indonesian guy was a politician?

• 30:12Shaan Puri?

  No, he was the guy, he was the middle man. So what he realized was, because I was like, okay, cool. We have this coal. What do we do with it? He's like, oh, we just sell it immediately. As soon as we sign the paper, we have the coal. We sell it to Exxon. And I'm like, oh, okay. So how does that work? He's like, well, I bought all this coal for 2 million and then we like, I bought all the coal for 2 million. And then we sell it in blocks for 20 million each. I'm like, well, that's like 400, 500 million. How are we, we're turning 2 million into 500 million? And he's like, yeah. I'm like, well, what? That's amazing. Like, why didn't Exxon, why don't they just go in directly by this? He's like, haha, like, well, if they could, they would, but they can't, so they won't. And basically what he was saying, like, those companies couldn't get their hands dirty. They could not risk bribing foreign, like, politicians.

• 30:54Shaan Puri?

  So what they did was they let this guy bribe the foreign politicians, get the rights, and then they would cut a commercial deal with him. And this guy knew nothing about the coal. Like, I'd be like, oh, is this a good asset, bad asset? He's like, it doesn't matter. We get the paper, they pay for the paper. Like, we don't have to do any of the work. We don't have to, like, extract it, mine it, don't have to do anything. And now, by the way, this guy's in jail, like, you know, that's the, the end of the story.

• 31:17Sam Parr?

  What, can you say his name?

• 31:20Shaan Puri?

  Yeah, his name, well, I, I don't want to risk personal harm by outing this guy, you know? We're a world away, but, but this guy's kind of a gangster, so I'm not going to say his name, but you could, you could use what I said in Google.

• 31:31Sam Parr?

  Dude, your dad, your dad got you an internship with a gangster?

• 31:36Shaan Puri?

  Yeah, me and my sister, by the way, both of us.

• 31:40Sam Parr?

  That's crazy.

• 31:40Shaan Puri?

  Like, I remember we were, we were in his office one time and he had a friend come in and his friend is like, kind of like, you know, when it's his friend, because it's just like alcohol, like, starts pouring, women start showing up at the office, like, what's going on here? Who are you trying to wine and dine? And it's this one sleazy looking dude. And I was like, oh, like, what's, what's your business? He's like, I work in Singapore. I help companies on the Singapore Stock Exchange. And literally, this was just straight insider trading. So I'm sitting there and I'm just hearing this guy be like, yeah, these are the three companies you need to like buy, they're like dirt cheap right now, but they're gonna like, they're about to announce XYZ and they're gonna pop. And then they would just like toast their whiskey and then they would buy this stock on the Singapore Stock Exchange or Hong Kong Stock Exchange. And like, sure enough, the numbers would go crazy.

• 32:23Shaan Puri?

  And I was just sitting there being like, wow, this is like insanity, that this is how like Lucy Goosey these guys are with business.

• 32:30Sam Parr?

  Well, what I was gonna say was, I think that like in a Even though like people make Amazon or whatever to be like evil. You just said, no, like, we would never even ask this ex Googler about X, Y, and Z. And I was gonna say, that's like a very American thing. I have a couple of friends who I worked with, who run Chinese companies, or, you know, they're Chinese, and they're either based in China, or are now American, or they're Chinese-American now. And I have a bunch of Indian friends. And they're like, yeah, we don't, we operate differently than you. Our opinion of the right and wrong ways is a lot different than you. And it is far more unadulterated capitalism of just, well, why is copying wrong? Like, and, and they're kind of right, right?

• 33:15Sam Parr?

  Like, why is it wrong? But anyway, it is quite interesting.

• 33:19Shaan Puri?

  Yeah, totally. Anyways, I don't know how we got on that.

• 33:20Sam Parr?

  Do you want to talk about first versions?

• 33:22Shaan Puri?

  We can go back to.

• 33:25Shaan Puri?

  Yeah.

• 33:25Sam Parr?

  What, what is that?

• 33:26Shaan Puri?

  I saw this website, my guy, Chris, Chris, who's my apprentice right now for content. He sent this to me, and I've actually spent a ton of time on it, but go to firstversions.com. Check that out. And I'm pretty fascinated with this. I think you are too. We both are like internet archaeologists. We like to go find the OG thing. What did, I did this blog post that got like tens of thousands of views once, before I had any audience. It just went viral because it was, what did the first webpage look like for these 10 big companies? And this is kind of like some common to do, like Uber's homepage back in the day, Snapchat's homepage back in the day, the first Facebook homepage, the first eBay homepage, first Amazon homepage.

• 34:07Shaan Puri?

  And these things look like, you know, so basic and rudimentary, and like, really just, it makes you realize, like, dude, you need to launch. And there's that quote, "If you're not embarrassed by V1 of your product, you launched too late." And all these companies definitely like fall into that category. So I thought firstversions.com was a cool little like archive of stuff like this.

• 34:26Sam Parr?

  I think this is so cool. So I actually just sent you a link to an article that I wrote. I think I wrote this in 16, 2016, years ago, 15, October 15. And I, you could.

• 34:40Sam Parr?

  It probably doesn't even work entirely. But anyway, what I love to do, and I've always loved doing this, is I use, there's a few different websites. Web Archive is the easiest. And what I like to do is I will get a Google Doc and a spreadsheet and I'll map out the, the whole journey of a company. So I'll look at what, when Airbnb started and then I'll read all about them of like, all right, here's when they announced they had this many users. Here were they, here's where they announced this much funding. Here's where they said they had up their first 50 employees. And then from 50, they actually went to a thousand in only two years. And then I'll take screenshots of their website. And in doing that, you can actually see what, like how the, the evolution.

• 35:21Shaan Puri?

  So progression.

• 35:22Sam Parr?

  Yeah. And I'm just starting, I'm just making this up with Airbnb, but it could be like, it started as Airbnb breakfast and it was about renting cots inside of a living room. Then, oh, wow, they actually changed their, their positioning to travel like a local and they started taking higher end pictures. I don't know what it is, but, uh, and, and when they started actually taking higher end pictures, that was actually right when they, right before they raised their hundred million dollar funding. And so anyway, you can actually track the progression really nicely by doing this. And I love doing that. I love it. And so you can actually see, oh, Uber, ubercab.com, they were only black car services. Oh, when they raised all this money, they actually got rid of the black car. The black car became secondary. So actually the black car didn't work. So they switched to this, you know what I mean? And so it's kind of cool.

• 36:06Shaan Puri?

  Yeah, you can totally reverse engineer a lot of the stuff. So some of the tools we use to do this, the Wayback Machine, which is the Internet Archive. So just Google Wayback Machine. That lets you put in any domain name and then you go back in time and they took screenshots of what the website looked like on June 12th, 2010. And then that, you can go back, you can see Uber's, what did Uber's homepage look like back then? How were they describing themselves? Another one I do is TechCrunch. I go to TechCrunch, I search for a company's name and then I reverse sort it by the earliest mention of it. So like you can go Twitter, you can see the very first article is, you know, Mike Arrington being like, you know, the buzz at the party this week was about Twitter spelled without the, you know, without the vowels. Basically it's like the short messaging service was kind of fun.

• 36:50Shaan Puri?

  You do, do this, but you know, who cares? You know, people are just tweeting about, or they're just tweeting about their breakfast and it was all through SMS. Like, then you could just kind of see what was going on then. So I like that one. That's, that's a useful one. Another one I'll do is I'll go on Twitter and you can Twitter advanced search. So you can type in anyone's name and you could do things like. Twitter doesn't make this obvious how to do it. There's like a format of how you write these in, but you write like at the Sam Parr before 2011. And then you say minimum 300 likes. And I can kind of go see your most popular post at that point in time. What were you talking about? What was working for you? What wasn't? So I've done this with a whole bunch of people and I kind of like, I really am a big reverse engineer type of guy. And it's not that you could copy it, but it's just data points.

• 37:35Shaan Puri?

  It's a way to fast forward experience because experience the hard way is slow. It takes like decades to get good at things and to learn and to like, figure out what's normal, what's not, what's fast, what's slow, what's good, what's bad. And a better way to do it is to like, download a whole bunch of data points quickly. And it's not perfect experience, but it's better than being blind and just kind of like going off only your personal experience. So those are some ways.

• 37:59Sam Parr?

  I would actually go as far to say you can copy it. You can, you actually can copy a lot of stuff and I think you should sometimes. So for example, this first, by the way, firstversions.com, this is a wonderful website. This is such a good website. I, this is so cool. I wish, they don't even.

• 38:19Shaan Puri?

  And by the way, what they do is not just internet, like what we're talking about is homepages. That's a kind of our niche, but they'll be like, this is the, yeah, this is the first version of Tom and Jerry, like the very first pilot. And like last night, I don't know why, for whatever reason, before I went to bed, I was watching the very first pilot episode of Curb Your Enthusiasm before it was even a show. And I was, I just love seeing that OG OG, the first pilot of Always Sunny in Philadelphia where they're using the handheld camera. Like I like seeing that because it just, as somebody who is frequently starting things, it's important to go see that your favorite things started with very humble, simple, kind of shitty beginnings. And, and then, you know, you sort of can see how much better they got over time.

• 39:00Sam Parr?

  This is so good. I love this. I'm going to link to you some, link something to you. So in 2000 13. I created this thing I called the CEO doc. It was a stupid name, but I sent it to you and you could actually see that it's so funny that you do this because I mean it's so funny that we're similar and we've been doing this for years. So I created, oh wait, is it not working? I created this document where I would take, I think I had a list of 500 people. And I would make timelines for each of their lives and I would say started their, it was broken into apprenticeships.

• 39:38Sam Parr?

  First hit and then the self-actualization mode. So for example, Jack Dorsey started apprenticeship at age 22. From 22 to 28, he basically was like this poor nobody who worked as a dispatch service for a taxi cab company. 28 to 31, started Twitter at 28. It actually became a pretty big hit really soon at 29. And so I have timelines and I have average ages, average age for each person. And so I love doing that stuff and it works so good for just seeing like what's possible.

• 40:14Shaan Puri?

  Right.

• 40:14Sam Parr?

  So we're actually quite similar. I've been doing this as well for a while.

• 40:19Shaan Puri?

  Yeah, it's great to nerd out about this kind of stuff. Okay, so first versions is cool. I have another kind of cool thing. Okay, here's a, here's an idea. I would say this is not a business. It's probably a very bad idea. Maybe this is something that this is, you reminded me of it because this thing that we're doing is like the thing we're talking about is extremely nerdy and probably most people don't, don't do what we're describing, like kind of like go back and map out the evolution of companies or people or whatever it is. So similarly, I, I want a tool that I'm calling Business Pocket. So Pocket is this Chrome extension. It's this app or service where you like, if you see an article you like, but you don't have time to read it, you just hit Pocket and it's like you put it in your pocket for later.

• 41:00Sam Parr?

  Do you think?

• 41:01Shaan Puri?

  I think it used to be called Read It Later.

• 41:02Sam Parr?

  You think Pocket is going well? I bet you it's going pretty badly. I bet you that'd be a cool company to buy.

• 41:07Shaan Puri?

  Yeah, I don't think it's going well. It got really big and it raised a bunch of money and then like it's just been around for so long without like an exit that. You wonder, did it just get like, become obsolete somehow along the way? But anyways, it was just a way to save articles. Now, I actually own something what I'll call Business Pocket. So I have this bookmark thing in my Chrome that's called Companies to Watch. It's basically like, anytime I stumble across a company I find interesting, I've been doing it. It's like, this thing is like 10 years old now. I find an interesting company, and before it used to be, I want to see if this will be successful. Or, maybe I should, if I was an investor, I would invest in this. So I want to like, flag this, and then I'll come back later in three years and I'll see how it turned out, whether I would have made money or lost money on this thing. And so I've just been collecting this for a long time.

• 41:51Shaan Puri?

  Now, in reality, I hit, I bookmark it, and then I like, never go back and go recheck those, because who's got the time? But I would love a service that's almost like a programmatic newsletter, where I can just flag either people or companies that I say, I want to keep a watch, I want to keep watch on this company or this, this, this individual. And like the CEO, or maybe this company, the startup. And then I want it to like, basically take the 10 that I've flagged, and send me anytime there's interesting news about them with some filter, like, you know, they raised new funding, they got a new job, they, they announced this thing, they're on TV, whatever. And, and you know, my 12 that I'm tracking might be different than the 12 that you're tracking, but like, we might have three that are the same.

• 42:34Shaan Puri?

  And so this company that's underneath that would just need to set up like a, kind of like a programmatic way to like, watch for the news around certain names, and then turn it into an automated newsletter. That was kind of just like a random idea. I don't think it's a business, but I think it would be cool.

• 42:47Sam Parr?

  I disagree. I think it's a business. When we were getting ready to decide if we wanted to launch Trends, or launch something new, I wrote a landing page for this product. I forget what I called it, but something involving the word "spy", and I put like, the headline was like, "Where are your secret spy, spies that track your competitors and tell you everything that they do? So you know, and we deliver it to you via email." And I think this actually could have worked wonderfully. And the reason I came up with this idea was I had a friend who worked at Rocket Internet. Rocket Internet, Google it, it's a, it's a guy, it's three brothers named Ali, Alex, and something else. Samware Brothers and they started this thing called Rocket Internet. And basically, the way it works right now, it's a large publicly traded company.

• 43:31Sam Parr?

  They had this like guy named, he was like the chief scientist. And what they would do is they would research fast growing companies in America. And they would clone them and they would deploy that company in Africa, in Asia, different parts of Europe, things like that.

• 43:47Shaan Puri?

  Brazil.

• 43:47Sam Parr?

  Brazil. And so they cloned Uber, but in Mexico, they cloned Pinterest, but for Germany, they cloned Zappos, but for Germany, they did. Amazon for Thailand.

• 43:59Shaan Puri?

  They own like the Amazon for Brazil, I think.

• 44:01Sam Parr?

  Yeah. And they also owned the Amazon for Thailand and they would pick a variety of companies. They would do like the Wayfair for Nigeria or something like that. And they had this guy who's who was called the chief scientist and all the clones of the Amazon of this country, that country, that country. There'd probably be like eight clones and he would send an email every day. This is the story I heard. I don't know if it's true. He would send an email every day and it'd be like, hey, everyone, Amazon actually just moved on their homepage. They moved the clothing from eight or 100 pixels to the left. It probably means that clothing is a little bit more popular now than furniture.

• 44:40Sam Parr?

  So, all right, make sure you move your clothing thing or hey, they they're changed their color of this button from this yellow to this orange. Go ahead and do that. And I thought, that's pretty awesome. I would love to have that. I would love to track my competitors because I would do research on my competitors. I would say, oh, which ads are they using? Oh, I wonder why they're using this ad. Maybe, maybe they're using this ad for this one, this reason, that reason, that reason. I'm going to go and copy it. And I would use a variety of similar web, Facebook ad archive.

• 45:10Sam Parr?

  HA refs and a few other things. And I would, I would just, I would like, oh, here's where they're succeeding and here's why they're succeeding. I may copy them. I may not copy them and I just, I just know what's working. And I think that that 100% could be a service that you pay 100 grand a year for. And you get, and you, and they'll tell you the five nearest competitors. And every month you meet with their team and you say, all right, your competitors, they're doing this, they're doing that, they're doing this. Here's what's working. Here's what's not working. Here's a hypothesis, hypothesis as to what all this means. And I think actually you could charge a six figure annual contract for all of it. And I think it'd be a really cool company.

• 45:49Shaan Puri?

  Right. Yeah, I told you about my friend who I nudged in this direction to do this for for e-commerce. I'll give him another shout out here. He said he got a bunch of sales last time I mentioned it. So I'll do it again. Shopify Sales Data.com. Basically, a way to track your competitors and how much they're selling and what new ads they're running and stuff like that. And just in the niche of e-commerce. And it's, you know, I don't know, a hundred bucks a month or something like that. And I pay for it. I'm like, this is great. You know, it's a valuable service. And so you could do it in a niche, or you could do it, you know, more broadly. But yeah, I think that's cool. Let me give you a different topic.

• 46:27Sam Parr?

  You want to do one more? Did you want to do the pets thing? You've had that here for two weeks.

• 46:32Shaan Puri?

  Um, so this is actually like a really, what I thought was a really random idea. And then I saw an ad, I saw a commercial for it on TV yesterday. And it's like totally a thing. So it's just gonna sound stupid because it was like, a stupid, basically, I was like, uh, kids love having pets. Pets are like a pain in the ass maintenance wise. And you know, a kid wants it, but they're not going to maintain it. And I was thinking about like, that's why people get fish because it's kind of like self-contained in this little tank. And you don't have to do anything. Most of the time, just feed it. A fish die all the time. It's really sad for the kid. And so I was like, why is there not just like AI pets? Why aren't there just like robo pets for kids? And I was like, oh, a fish would work because it just needs to swim around sort of aimlessly. You don't touch it. So even if it was mechanical, it wouldn't feel cold like a mechanical dog. I don't

• 47:17Shaan Puri?

  think will feel great. But

• 47:19Sam Parr?

  Dude, that is so

• 47:20Shaan Puri?

  You know, mechanical fish.

• 47:21Sam Parr?

  You, you hit home runs. This is such a dud. This is such a dud. You, you're a home run hitter. Today's a strikeout. This is a stupid, stupid idea. You are

• 47:31Shaan Puri?

  Well, I saw the commercial for it was called robo fish yesterday. And I was like, oh, this exists. No way.

• 47:35Sam Parr?

  Oh, my God.

• 47:36Shaan Puri?

  So I'm gonna go check. See if you can see, does robo, I think it's called robo fish. I saw the commercial. Tell me they do a hundred million dollars a year and prove that this is not a dud. So anyways, that was one. And then there's a related one, which was, there's a medical thing that's going on for, you know, like pets are sometimes labeled as like, kind of like a emotional support dog or whatever. It's like anti-anxiety, that sort of thing.

• 47:57Sam Parr?

  You know, that's total bullshit, too, right?

• 48:00Shaan Puri?

  Well, I know most people use it for bullshit. I don't know if there's any medical like, like, there must be some like cases where it helps or something like that.

• 48:08Sam Parr?

  No, I agree that in some cases it is true, but a lot of like, like people like, oh, they're certified in emotional, like, there's not like a certification process.

• 48:17Shaan Puri?

  Yeah, there's no, yeah, exactly. This dog did not get trained. But, but anyways, I saw this company that was doing this with, for, for people with dementia and Alzheimer's. They were giving them this weighted, it's the equivalent of a weighted blanket, but it's a pet. So it's a pet that sits in your lap. It's heavy and like a weighted blanket, but it feels like a pet and it moves like a pet. Now, if you're like totally, if you're just like an adult who's has no health conditions, you'll be like, oh, this is like clearly a robot. This blink is like not really fully natural and, you know, this dog's obviously not running anywhere. It's not a real pet. But to somebody with, you know, dementia or Alzheimer's, they found that this like is extremely comforting to them. Now they're really expensive right now. They're like thousands of dollars for this like really kind of like realistic feeling thing.

• 48:58Sam Parr?

  What's it called?

• 48:58Shaan Puri?

  But, but they're gonna bring the price down. I don't know. I met this guy who, through my wife, she, she was consulting for this company that was doing it. And she was showing me the videos and stuff like that about this thing. So I thought that was kind of cool, too. But I think that we will see more and more either genetically engineered pets or just straight up kind of like mechanical AI pets. Because if you can get 60% of the benefits with 0% of the work and maintenance, I think there's a whole class of people who would take that trade that today just don't own pets because it's just too much cost and too much work.

• 49:32Sam Parr?

  So, man, I called your thing totally stupid. I think for the average.

• 49:36Shaan Puri?

  Oh yeah, hold on. Receipts. Bray, you come in and tell Sam, tell Sam about the robo fish.

• 49:42Speaker 03

  I mean, I don't know if this is what you were talking about, but this company in 2012, they sold 15 million of these at eight bucks a piece in the first year.

• 49:50Sam Parr?

  Well.

• 49:50Shaan Puri?

  First year. That's right.

• 49:52Sam Parr?

  All right. I'm both, I kind of take back and I don't take back. So you're wrong in that you're saying like, oh, pets are so annoying. Just give them a robot pet. Like, yeah, I think that's actually silly. I don't doubt that people buy a robo fish. I think that's just like a cute little widget that's fun to have, but.

• 50:10Shaan Puri?

  Dude, you were the one who was like, oh, these AI girlfriends are great. It's the same idea. It's the same premise.

• 50:17Sam Parr?

  Okay. Well, look, I'm open minded enough to like, uh, challenge my views. But I, you started talking about this Alzheimer's thing and that's actually quite interesting. I just Googled it. I wanted to see which ads come up. I like, cause like, so I Googled this thing, I'm. It's kind of, I don't really like looking at this. I feel a little sleazy, but there's this, oh, I actually don't like the name. There's a name called, I just sent it to you, the Allz, Allz Store. So A L Z Store, and it stands for the Alzheimer's Store, and they call it the Allz Store. And they sell like these Liv Strong bands that have your name on it. So if you, when you forget your name, and they actually have a robotic therapy dog. And this website

• 50:59Sam Parr?

  actually looks like it's like a entrepreneur who's just looking for a money-making niche, which a little weird with, with this type of thing, but people seem to love it. It's a whole store dedicated to Alzheimer's products. I have zero idea if this is like actually what Alzheimer's patients love and need, but this is incredibly fascinating. And I'm looking at their similar web traffic. No, I actually think this is legit. They have videos of them of the founder talking on like the Today Show about selling all types of products for Alzheimer's stuff. And I'm looking at their similar web traffic, and it's incredibly popular. What a fascinating business, all about Alzheimer's. Yeah, no, this is a legit company. I'm looking

• 51:43Sam Parr?

  at the about page. This, they have a good background story of the, the father has Alzheimer's, so now they create all these products, yada, yada, yada. It's looks pretty interesting. Can you believe that this exists, the Allz Store?

• 51:53Shaan Puri?

  Right. That's wild. I had no idea. But makes sense, I guess. I guess it does make sense. I have one more. Can I do last two minutes? A Billy of the Week story?

• 52:04Sam Parr?

  A second Billy of the Week story.

• 52:06Shaan Puri?

  I learned this. I tweeted this thing. I tweeted this out, and it kind, this kind of blew my mind. Okay, so I was doing some, you know, Shoe Dog is like super popular about the founding story of Nike?

• 52:17Sam Parr?

  Yeah, you did one on Adidas.

• 52:19Shaan Puri?

  I did one on Adidas. And I was, I was like, okay, Nike, great. What's the story with Adidas? Where did that come from? And so I just started Googling for a second, and I didn't go so in depth, but okay, here is the 60 second version of Adidas. So for, tell me if you knew these things. Just give me a yay or a nay if you knew it or not. So Adidas, when you were a kid, did, did you not hear that this stood for all day I dream about sports?

• 52:43Sam Parr?

  Yeah, soccer. All day I dream about soccer.

• 52:46Shaan Puri?

  Soccer. Yeah, yeah, that's right. Not true. Basically, you know, the guy's name was Adolf Dassler, who started it, and he went by Adi Dassler.

• 52:54Sam Parr?

  Dude.

• 52:55Shaan Puri?

  So it's just Adidas.

• 52:56Sam Parr?

  I was in Germany at one time and someone, a German was like, do you like Adidas? I'm like, I don't know what that is. Is that like a German brand? They're like, oh, no, it's Adidas. You don't know Adidas? I goes, no, I've never heard of it. And they started laughing at me. That's Adidas, I guess. Yeah.

• 53:09Shaan Puri?

  Right. You, I'm sure you corrected him about his own hometown.

• 53:14Sam Parr?

  I go, oh, you mean Adidas? Yeah, I know. That's not, I don't know what Adidas is.

• 53:19Shaan Puri?

  So, okay, so the story is kind of crazy. So two brothers, basically dad owns a leather shoe factory. The two sons are like, okay, shoes are cool, but we want to do sports shoes, not these like leather shoes. And so they spin out and they create the Dassler Brothers Shoe Factory. And what they do is they're like, we're gonna, you know, Adi, you're gonna design the shoes. And Rudy, you're gonna sell the shoes. You'll do sales and marketing. Two brothers, they do that, right? It's like a 10 year grind, you know, building this thing up. They're growing, but they're growing slowly. And then finally, 1936, the Olympics come to Germany and they are, a whole bunch of the athletes from Germany are wearing Adidas.

• 54:00Shaan Puri?

  But they also get a little bit, you know, they go and they hustle and they get their Adidas shoes in the hands of some non-German athletes also. One of whom is Jesse Owens. Jesse Owens goes on to win, I think, four gold medals at those Olympics. And so Jesse, Jesse Owens is a black guy who basically wins gold and beats the Germans in front of Hitler, who's like promoting white supremacy at the time. And so it's like, you know, a big deal for, for that victory at the time. And he's wearing Adidas. And this is kind of considered the first time that an entrepreneur used sports to promote their products or their businesses. And he kept doing this, right? Like you see photos of Ali versus Frazier, they're both wearing Adidas. Because he was like hell bent on getting Adidas into the hands of all the iconic athletes that they could,

• 54:44Shaan Puri?

  which Nike went and took that strategy and did even better with that strategy over time. And so they, you know, business is going great that, you know, after that Olympics thing where they get all this exposure, next three years, they sell like, I don't know, 600,000 pairs of shoes, business is great, 1940 hits and World War, World War II starts and the factory just gets seized by the German military. They're like, this is now a war factory. We need to produce war goods here. No more shoes. And hey, you two brothers, join the armies. They get, they get enrolled in the army. So the business just goes on break. Adidas just goes out of business for the whole world war. Okay. World War II

• 55:24Shaan Puri?

  ends. The brothers come back. Uh, you know, Adi's like, all right. He gets 50 people together. He's like, we're restarting the factory. We're going to do this again. And somewhere along the way, the two brothers break up. So I didn't know this part.

• 55:36Sam Parr?

  Yeah, I know.

• 55:37Shaan Puri?

  Other brother goes on to start Puma.

• 55:39Sam Parr?

  Yeah.

• 55:40Shaan Puri?

  So one brother starts Adidas, the other brother starts Puma, which I just thought was like, you know, the most baller shit. You knew that already?

• 55:45Sam Parr?

  Yeah, I know that they got in an argument.

• 55:48Shaan Puri?

  Well known?

• 55:49Sam Parr?

  Yeah. Uh, well, I don't know. But I mean, you're talking to me. Uh, I think that, uh, yeah, they got into an argument. One of them started Puma. For some reason, I thought that the he, he like, did he move to Africa and start Puma? Is there any part of that?

• 56:03Shaan Puri?

  No, I think he like literally moved across the river and like started a competing factory within like earshot. That's, well, that's the way I read it. Maybe I read that wrong.

• 56:10Sam Parr?

  Yeah, I knew. And, and the two brothers, because they got into a disagreement on how to do, oh, Bray said Reebok started in Africa. So I guess I'm getting confused. But, uh, yeah, yeah, I knew that.

• 56:20Shaan Puri?

  So they, they restart the factory after the war and now they're using all the war, like leftover war materials in the shoes, like rubber for the soles and like certain design, like the look of camouflage and different things like that. They come up with the three striped logo. And so anyways, business does good. And then like, there's this crazy run of deaths. So the Puma brother dies. Four years later, the Adi dies, you know, from Adidas, he dies. His wife takes over. She dies six years later. The son takes over. He dies three years later. So there's just like this run of early deaths. It's like, you know, the defense against the dark arts position. Nobody can like hold this thing. And so the finally, now the two daughters own the thing. They sell it for pennies on the dollar because Adidas has just been declining for years now at this point. You know, they

• 57:05Shaan Puri?

  didn't have the right people running it, I guess. And so they sell it for $500 million. You know, to this French guy, French guy tries to turn around, he can't do it. It's on the verge of bankruptcy. And then they sell it to this guy. This is the, actually the Billy of the week. It's this guy Dreyfus and I think his name is Robert Dreyfus.

• 57:22Sam Parr?

  Oh, do you know who, you know, who this person's related to, right?

• 57:27Shaan Puri?

  No. Uh. His dad was rich, but I don't know why he's rich.

• 57:31Sam Parr?

  Uh, I believe it's Elaine from Seidenfeld. That's her.

• 57:37Shaan Puri?

  Uh, Julia Dreyfus?

• 57:38Sam Parr?

  Yes, I believe, uh, I believe that's her grandpa.

• 57:43Shaan Puri?

  Wow. Okay. That's crazy. So this guy grows up kind of rich, goes to like Harvard or whatever, uh, buys this thing. His, his tagline, I love it. He goes, I'm a gambler and I like turnarounds. That was kind of like his business philosophy. So he takes a gamble, takes the lead role at Adidas. And he basically is like, all right, we're doing three things. Moving the factory to Asia. We're cutting the payroll. We're cutting jobs, cutting two thirds of the jobs in this company. So we can get profitable. And lastly, we're going to take that money we were spending on people. And we're going to spend a shit ton of it on marketing. And, you know, they were like, wow, you know, you took it from the brink of bankruptcy. 3% market share. And it came roaring back and became the number two brand. How'd you do it? You know, you must be a genius. And he goes, you know, he was in Time Magazine. He, the quote is, it didn't take a genius.

• 58:28Shaan Puri?

  You just had to look at what Nike and Reebok were doing and do that. He goes, it was just easier for somebody outside the company to see what was obvious than somebody inside the company who had all this baggage and they couldn't do it. And, uh, you know, so he, he turns it around, retires a billionaire, you know, in his 50s, I think. And, uh, and that is, you know, the crazy story of Adidas today. I thought that was wild. I had no idea.

• 58:49Sam Parr?

  So there's two takeaways of this for me. Um, the first is a question that I should start asking myself. And, and you don't actually need to follow through, but how would a PE firm run your company? I actually think that's a great question to ask yourself, which is, what would a PE firm do if they were, if they owned us right now? And that's kind of an interesting way to get ideas because you kind of say to yourself, oh, man, I'm being such a punk, like, I could be so much better. The second thing.

• 59:18Shaan Puri?

  And, and the opposite. And the opposite would be, what would, you know, Larry Page do? So Google's, you know, CEO and founder at the time.

• 59:27Sam Parr?

  Yeah.

• 59:27Shaan Puri?

  Like, but yeah, they took this small thing and they just kept expanding it like, no, we need to do Google X, we need to do moonshot projects, self-driving cars, you know, satellites into the sky, giving people internet, like, they had like unbridled, you know, ambition and were like, what if you just like blew the top off this thing and ambition? And then the other one is the PE, the ruthless operator way, what would they do? I think both are valuable questions for your business.

• 59:50Sam Parr?

  And the second thing, and this is actually something that I've been thinking a lot about, because I've been thinking about Louis Vuitton. Not that I don't even own one Louis Vuitton thing, I'm never going to own a Louis Vuitton thing, but it's pretty fascinating that I, in my head, I stereotyped fashion brands as just like trendy and they, they're going to come and go like, but in reality, it, I would bet that some of these fashion brands like Adidas, Puma, Louis Vuitton, they're actually some of the longest lasting companies I imagine I could think of. And that's pretty fascinating that a brand like Adidas that went through near bankruptcy, went through multiple owners, is still relevant and kicks ass. And that's actually pretty cool to create something that can last that long.

• 1:00:34Sam Parr?

  And it's kind of cool. I think that's actually inspiring, that something withstood all of that nonsense, like it succeeded in spite of itself.

• 1:00:43Shaan Puri?

  Especially in fashion, especially in fashion where everybody wants to do it and fashion like literally is kind of like in and out of fashion. It's like a fad type of, type of business where things are in and out of style so quickly. So just to last there is pretty impressive.

• 1:00:55Sam Parr?

  But what I'm saying is there's some stuff that it just, it has lasted for many, many decades. So Louis Vuitton luggage, I imagine existed at the turn of the century in the 1900s. Same with the, right now I'm wearing Nike Cortez. I just looked at the, the website that we were talking about earlier, first versions, and the first version of Nike was a Nike Cortez, and I'm still wearing the same damn model. And it's kind of interesting and inspiring to create something that can last 50, 100, 200 years. And that's kind of a cool part of that.

• 1:01:24Shaan Puri?

  That's how I feel about like Altoids or Coca-Cola.

• 1:01:28Sam Parr?

  Yeah, I guess you could do it. I mean, you could do it with a lot more than fashion, but there are a bunch of fashion brands that have done it successfully. And I think that's pretty damn cool. You know, like a Rolex or Tiffany's Diamonds or something like that. It's kind of neat.

• 1:01:45Speaker 02

  I feel like I can rule the world. I know I could be what I want to. I put my all in it like my days off. On the road, let's travel, never looking back.

• 1:01:56Speaker 02

  Feel like the world, I don't want to hide it. Ain't nobody telling me no more. Get your feels wherever I go. Yeah, yeah, yeah. Feel like I can rule the world.