#213 - How to Build a Community

In this episode Shaan (@ShaanVP) and Sam (@theSamParr) break down community businesses and different ways you can build a community. They also talk about the law of reciprocity, the ad Sam wrote that competitors have stolen, and the importance of user generated content for digital ads. They end the episode talking about how technology will change construction sites and share a few Instagram accounts worth following. --------- * 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: https://refer.fm/million * 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. --------- Show notes: * (1:00) The law of reciprocity * (6:51) What is Friends with Benefits * (12:56) Why communities can be great businesses * (14:58) How big can token backed communities be? * (17:33) Soho House went public * (19:45) Should MFM make a social token? * (22:46) Set your data free * (29:36) Communities of communities can be big businesses * (30:54) User generated content & Sam's great ad copy * (36:45) The hot girl side hustle * (46:33) The future of construction sites * (53:41) Remote arcade games * (57:02) Some accounts to spice up your Instagram feed * (1:00:01) The man behind Telegram

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

• 0:00Shaan Puri?

  The dominant way to advertise is not super high production value, finely produced content. It's what we call selfie content, right?

• 0:22Sam Parr?

  All right, let's do it. We're here. What's going on?

• 0:25Shaan Puri?

  What's up, man?

• 0:27Shaan Puri?

  Okay, you want to jump in a little bit of tic-tac? How you want to do it?

• 0:30Sam Parr?

  I want to tell you a quick story. So our friend, can we, the guy who emailed hotels and asked for discounts, can we name them or not?

• 0:38Shaan Puri?

  No.

• 0:39Sam Parr?

  Okay. Well, he's our friend. He emailed hotels for a European trip and he got some crazy good deals. He got like a $3,000 room for like $350. So I'm in New York. I need a place to stay from September 1st to September 25th. I made a list of 20 hotels and I emailed them. And these hotels probably would cost me maybe 15,000 to 20,000 for that period. So like $1,000 a night. I'm getting some at like 350 bucks, $400 a night. It's working.

• 1:11Shaan Puri?

  That's amazing. And what's the, what's the gist of the email?

• 1:14Sam Parr?

  I have something that's unfair. So I say, hey, my name's Sam Parr. I am in town for three months, but I need a place to stay from September 1st to September 21st. I need a relatively big room because I record this podcast called My First Million. And we have about, I say like a million listeners a month and we record it with video. So I needed to look really nice. I also write this daily email that goes out to 2 million people. And so like I need a comfortable place to work from my home.

• 1:42Shaan Puri?

  Right.

• 1:43Sam Parr?

  My budget is $350 a night. Can you help me?

• 1:48Shaan Puri?

  And, and that works. So why aren't they giving it to you for free, bro? That's big influencer shit. You should be getting it for free.

• 1:55Sam Parr?

  I don't know. I I'm happy to pay for I don't want to be a total mooch. I just want a discount.

• 2:00Shaan Puri?

  It's not mooching. You're gonna give them a shout, right?

• 2:04Sam Parr?

  No, no, I won't. I wouldn't give them a shout out just because they get me a place to stay. I'd only give me. Do you shout people out? Because I mean, I get given stuff all the time. And when people give me stuff and they and then they ask for a shout out, I I say, I don't know, F off.

• 2:17Shaan Puri?

  Yeah, actually, the other day, um, there's a company that I'm using their product. So I reached out to him. I was like, hey, I can name, I can, I think I can name, I think it should be fine. So so basically, I use this thing called Passport. It's like international shipping company. So you just say you have a brand, you want to ship products to France, or UK, or Australia, or whatever. Each country has its own little problems with shipping, with customs, with tax, with, um, you know, finding the right carrier to to get a low, low shipping cost there, all that. So these guys take care of it. So I'm like, oh, this is a great product, great idea. So I emailed, um, the CEO Alex and I was like, hey, man, like, uh, this is great. We're gonna use it. But how do I invest also?

• 3:00Shaan Puri?

  And he's like, oh, like, you know, we're not really raising a round right now. And I was like, please. And he was like, is it, you know what, like, I think you've already been pretty helpful because you made some intros. I think you can do some more. I think you can do more. He's like, I don't want to fuss with paperwork. Like, honestly, it's just a big headache. How about I just give you some free shares? And I was like, I was like, ah, perfect. Like, that's amazing. Because this is like a legit company. It's not like, oh, here's advisor shares in my no name, no revenue, no no user company. Like, this is a real company. And it's a very small amount. But I was like, he's so smart, because he sent me an email. He goes, hey, dude, sad to have you on board. Just signed us, return it. He goes, here's kind of my expectations. Like, what would make this a win for me is A, B, and C. And they're all like totally reasonable requests, but he just made it clear what he wants. And I was like,

• 3:45Shaan Puri?

  Dude, you couldn't have paid me to do these things, but just by giving me something free, I feel the need to reciprocate by like over delivering on this for you. I would have rather, in retrospect, I would rather just buy my shares and not have any obligations. But, uh, cool. I'm glad we did it this way. This is gonna be more fun and ultimately a smart move by you.

• 4:04Sam Parr?

  So that's called the law of reciprocity. So, um, there's been a lot of studies on this. And if you read the book, uh, Influence by Robert Cialdini, it's a, uh, it's basically been proven through a lot of different studies. So a great example is if we're next door neighbors and I say, hey, uh, Sean here, you know, I, I, I had, I ordered pizza and they, and they gave me two. Here's an extra one if you'd like.

• 4:24Shaan Puri?

  Right.

• 4:25Sam Parr?

  Uh, okay. So I did something for you. I gave you something. The next day I go, hey, Mike, I don't have a car. Can I borrow your car for an hour? You are actually incredibly likely to let me borrow the car, even though those two favors are not at all equal.

• 4:40Shaan Puri?

  Right.

• 4:41Sam Parr?

  In order to make like this rule works regardless of if they're equal or not. It just, if someone owes you one, you want to pay them back in some capacity and you'll do it when the first possible chance you have. So it's actually a great rule. And when I used to buy stuff, so when I would buy cars, I would always come with two. I wrote a blog post. I would come with two cans of Coke and I would have one like a Diet Coke and I'd be like, hey, uh, I, you know, they, they had a sale. I, and they had a sale. You, you want, you thirsty? Want something to drink? And, uh, I would get discounts like that through buying stuff.

• 5:09Shaan Puri?

  Dude, that's great. That, the Coke can hack is awesome. Uh, yeah, I actually now I'm so like aware of it that I have to fight my inner tendency to want free shit. So like, if somebody wants to send me something, I'm like, not only do I not want to give out my address anymore, I'm just like, I don't want to feel like I need to reciprocate anything to you. So like, it's, it's actually not worth it for me to take these things. Uh, like this is different because I think this company is going to be really big and I really respect the founder. But, uh, but now I'm like, somebody hands me that Diet Coke? No, no, thank you, sir. Uh, right. Like I, I, it's not like, it's not like I think they're trying anything. It's just, I don't want to have any, uh, on my inner balance sheet, I don't want to have any debts. I only want assets on that inner, my internal balance.

• 5:53Sam Parr?

  I completely agree. I completely agree. I did the exact same thing. If someone offered, or if they offered me something and I do want it. For example, someone sent me something for my dog because his hips were hurting. And I was like, just so you know, I'm not going to give you a shout out. If I, if I think that things like life changing, I'll talk about it just casually, but like in no way are you, you're just doing me, you're giving, this is a gift, not a, a payment.

• 6:12Shaan Puri?

  Exactly. All right. So let's, let's jump into some ideas or some topics. What do you want to talk about?

• 6:18Sam Parr?

  I want to talk to you about a couple of things. I want you to teach me about something that, do you want to talk about this? Two things, friends with benefits. Are you prepared to discuss that?

• 6:30Shaan Puri?

  Yeah, yeah, we could talk about it.

• 6:32Sam Parr?

  Cause this is your realm, but this is, it's totally your world, but it's the first time I've seen something in this space that actually interests me. And I think it's like, well, okay, so first explain what it is and then I'll tell you, but basically, and I'll tell you why I'm interested, but basically it's like, uh, uh, the, the first time I've seen this technology used in a useful way that isn't just gimmicky.

• 6:54Shaan Puri?

  Right. Yeah. Okay. I know. I know what you mean. And ironically, this is the one that I think I'm interested, but I'm like, I don't really get it. And then I like move on. So, so it's cool. We're on the other end of this. Okay. So what is this? Friends with benefits is a, it's basically a community. It's a membership club that was created by this guy in LA that, um, you know, he was a, he was a co-founder of this company called Brood and they, they make Lil Mikayla, that Instagram influencer who's a, who's just like a digital avatar. It's like, it looks like a, kind of looks like a, a real girl, but like clearly it's kind of digital. And so they're using like Disney Pixar style technology to make influencers on Instagram. That's the company. So he creates friends with benefits. He's basically like, all right, this is like a digital Soho house, basically.

• 7:37Shaan Puri?

  We're going to invite only cool people in, and you basically buy the friends with benefit token in order to enter. So you buy this token called FWB. And, uh, so there's a million FWB out there and you buy in and in order to get access to the, to the, to the club, which is basically just a Discord group, right? It's not like, there's nothing, there's no physical place to go. There's no like perks or discounts or whatever. It's basically, it's literally like you get to go into our Discord and talk to other members here. And, um, And so they were selling this thing. It was like 75 tokens or something to join at the beginning.

• 8:09Sam Parr?

  Yeah.

• 8:10Shaan Puri?

  Which was like, I don't know exactly what it was, but I think it was more like a hundred dollars when it started. And now that thing is, that's like a $4,000 membership to join that same, because the token has appreciated like crazy. So the, the token, even just since, we were going to talk about this last podcast and I was like,

• 8:27Sam Parr?

  Ninety one dollars.

• 8:29Shaan Puri?

  Hang on, I'm going to talk to somebody who knows about the stuff. Let's do it in the next episode. It's up 46% since last week's and when we talked about this.

• 8:38Sam Parr?

  And so that, that, that means it's 68, 6825 dollars.

• 8:45Shaan Puri?

  Yeah. So the membership is roughly seven grand now and to join. And, um, you know, like Equinox, which is like, you know, a high end gym in, in LA, New York SF, where you get to go to this like fancy gym where it has spa, steam room, members, whatever.

• 9:01Sam Parr?

  Equinox.

• 9:01Shaan Puri?

  Equinox. Equinox is $2,400, I think. Three, $2,400, maybe $3,000. So, so this is double that now. To get into the Discord. So obviously you can tell I'm a little bit skeptical. Just to put some more numbers around it, just to give you a sense of how big this is. So basically this is now a $90 million market cap community. I think the founder's tokens are like, I don't know exactly how much he holds, but roughly, I think the guy has like 40 or 50 million dollars of his token. Now, the fun, the, the thing that's, that's which is, you know, exciting, but you can't sell. That's the real problem. You can technically go sell on the market, but on Uniswap, you can go, you can go sell this thing.

• 9:39Shaan Puri?

  But you, practically speaking, if the founder started to sell, because he's like, sweet, I want to bank 10 million from this. I think it would A, crash the price and B, send a negative signal, or as they call in the crypto world, like it's a, it's a rug pull. You pull the rug out from under the people who believed in you and bought into this thing and you basically screw them all over. And so this is like, when I bought your BitClout and then you sold all your BitClout. And it's like, oh, fuck, now I'm holding this empty bag that Sam cashed out of. I bought his token. I believed in him.

• 10:12Sam Parr?

  Sorry. I didn't know you did that.

• 10:13Shaan Puri?

  So that would be, I don't even know. I don't know if I actually did, but, but, uh, but plenty of people did. And, uh, you know, right now on BitClout, let's say I have, I think my token, I have like $50,000 of my own token. Cool. My current usage of BitCloud is pretty low. My belief in it becoming the next big thing is, you know, it started off like a long shot and now I'd say it's a longer shot. So I would love to go sell that, but doing so would basically screw over the people who invested in my tokens. I'm not going to do it. I'm in it for the long haul. So I think that's the challenge with this model is on paper, you get this big gain. But in reality, I don't know how much they're going to, how much value they can reap out of this. So that's the high level. Tell me, tell me some things.

• 10:52Sam Parr?

  Yeah. So I'm going to tell you why I think this is actually incredibly interesting. Friends with Benefits itself, it's not, that's not interesting to me. Basically, if you look at it, it's just like really good looking dudes and ladies who are like going like and hanging out. Like it's like a hip, young LA, New York type of thing. I don't really have too much faith in those types of businesses that are, they're more jokes to me than they are actual real businesses. Would you say that's accurate?

• 11:19Shaan Puri?

  Uh, why is it a joke?

• 11:21Sam Parr?

  Because I don't know if this is run like a, like when I, when I see it, I'm like, oh, you're just going to run this like a, like an art project. Um, not necessarily like.

• 11:30Shaan Puri?

  Are you a party promoter? Uh, is this a nightclub? So either it's a fad, right? Because the problem with cool exclusive things is when you try to grow them, they become less cool and less exclusive because you're letting more people in, um, who, you know, so it becomes, it becomes less, less tight knit. The other thing is, um, are you doing this because you want to be a cool guy? Or are you doing this because it's actually like a really solid business underneath it? I think that's kind of the other thing you're talking about, which is like.

• 11:56Sam Parr?

  My point.

• 11:57Shaan Puri?

  What are your sort of intentions with this thing? Do I take it seriously or no?

• 12:01Sam Parr?

  But, and here's the but, so the thing about communities, communities are great companies. Um, the problem with them though, is that they're challenging to scale. The more people who join, oftentimes the worst it gets. That's like.

• 12:15Shaan Puri?

  So that's, yeah, that's the law of communities. But why are you saying that communities are great businesses? Cause I would say communities are not great businesses. What communities do you think are great business?

• 12:26Sam Parr?

  Well, let's define.

• 12:27Shaan Puri?

  I mean, these are all generalizations.

• 12:29Sam Parr?

  Let's define how we mean great. When I say great, I don't mean, it's really hard to be huge, huge, like. North of a hundred, north of a billion dollars. But like they could make someone 10 to 20 million in sales a year at a pretty good profit margin. And you can use that profit to build more stuff. So for example, trends, I didn't realize it at the time, but had I still owned it or the hustle, we could have turned that into trends as a paid community. We could have turned it into an investment vehicle to invest in cool startups, things like that. And so that's why it would, it would have been great for me to own, even though it may not be huge in itself. It would have led to opportunities and it could have been quite profitable. You know, I could have paid myself millions of dollars a year because of it. So that's my definition of great.

• 13:11Sam Parr?

  Now, what's interesting about friends with benefits is they use a software called Collabland. Have you looked at Collabland?

• 13:16Shaan Puri?

  Yeah, well, actually they used to use a different platform. They used to use, uh, Roll, I think. Uh, so Roll was their old platform, then it got, Roll got hacked. And so all the, all the tokens that were built on all the social tokens that were built on Roll crashed. Uh, when that happened, and so I guess they switched over to Collabland.

• 13:36Sam Parr?

  So Collabland is cool because the thing about communities is the more people who join, the, uh, sometimes the worst it gets. And so why this is interesting to me is that people are incentivized to stay and make the community valuable because their value goes up, even if they don't necessarily want to sell it. Well, I actually do think that like one or two people could sell their, their thing, their, their token. And if they want to bail, but they're incentivized to make the community better. And I think that's a great model. I really actually think this model is amazing.

• 14:05Shaan Puri?

  So, so, so I thought about this, uh, two, two different ways. So let's first do, let's first do, uh, let's break it into three parts. There's what is this and why is this interesting? There's how big could this be? And then there's what other shit could you do like this? What do you think the future looks like? So let's do what is this and how big is it? So, so I would say we, we, we kind of explained friends with benefits. It's a social token. It's used to create a membership club. The membership cost now $7,000. It's really appreciated like crazy. You know, if you're friends with benefits, if you hold that token, like Ben, Ben is a member. So Ben got in at like probably 100 or a couple hundred bucks membership. He never uses it. So he's like, God, the Discord is super noisy. Like, I'd have to like really go spend time in there to like make friends and do all this stuff.

• 14:49Shaan Puri?

  He's like, I'm too busy for all that. So like, I never, I basically never go in there. Um, but he's like, it's cool because I hold this token. It's going up. So I have this like seat in the club and uh, I could sell that if I wanted to, or I could use it if I wanted to. So he's like, it's kind of cool. He, he bought it kind of like just to, just to play with the technology, just to play with like this new experiment. So these are called social tokens. The idea is that, you know, any creator, any set of creators could create one of these. So, you know, the Paul brothers, I think have had like the Maverick Club. I think the Milk Boys have their own club. And these are just like, you know, traditional, you pay a monthly subscription and you get access to insider content. So this is basically owning instead of renting.

• 15:32Shaan Puri?

  So instead of renting your spot in the club through a monthly fee, you own your spot in the club and there's a limited number of spots. And then that's an asset that you could then flip later to somebody else. If you want to get out of the club and you want somebody else to take your spot.

• 15:44Sam Parr?

  And that one, everyone's aligned. And everyone's aligned.

• 15:49Shaan Puri?

  Everyone is aligned and it becomes, instead of an expense, it becomes an investment. So I think that is a switch that gets flipped, right? Instead of a nine, nine dollars a month, okay, cool. I paid $900, but I own this thing. And if I was correct in betting that, like, let's say we made one for my first million, right? If, if we, if they were correct in betting that this, like, let's say nine months ago, they're like, oh, I think this podcast is going to get bigger. Well, guess what? It did. And if there was only, whatever, a thousand spots in our, in our private club, in our private group, where we're sharing either insights, deals, making introductions between people, that sort of thing. It's a cute community of people. That could be pretty valuable, right?

• 16:27Shaan Puri?

  Like, there's a pretty strong case why we should create one of these for the like, kind of fans of the show that are like hardcore members, right? Um, and then they own it and then they say, all right, cool. The more popular Sean and Sam get, the more people are going to want to get into this club. And my thousand dollar seat, I'm going to get value from it today. And then I might flip it for three grand or 10 grand two years from now or a year from now. That's like the promise.

• 16:51Sam Parr?

  Yeah, and, and I think that's a great idea. Now, let me put something in perspective. So, did you know that Soho House went public recently?

• 16:58Shaan Puri?

  I saw you put this here, so I started doing some research on it. Pretty, pretty fascinating. Break it down.

• 17:03Sam Parr?

  Yeah, so Soho House, it doesn't have to be a bad business, but it is. So Soho House is basically a members-only club. It's basically a country club, but instead of a golf course, you get access to like a library. It's feeling building, like with a bar and a restaurant and maybe a pool. Maybe sometimes they have a gym and it's basically in New York, LA, probably Paris, London. It's in where all like rich, cool, young people live. It costs about $2,000 or $3,000 to join, depending on how old you are. And they have 100,000 members and they recently went public at a $3 billion market cap. And the reason why their business isn't great is they took on a lot of debt. Covid really hurt them and I think maybe it's slightly mismanaged, but it's not a bad company.

• 17:45Shaan Puri?

  Putting some numbers around that, I think they had like $900 million of debt. From, because they're buying real estate in the most prime locations, right? They're, they have real estate or either leases or own, I don't know which one. In like, you know, Manhattan, LA, not San Francisco right now, London.

• 18:03Shaan Puri?

  So they had 870 million, I think, of debt. And then during Covid, they furloughed 90% of their workforce, I think. So they furloughed 90% of the workforce, but they only churned 10% of members. Because A, the members are kind of wealthy and whatever. And B, they like offered other perks, like kind of like digital perks. They tried to come up with other ideas because you couldn't go into the building and, and do your Soho House like, you know, you know, mingling or whatever, whatever people do at these places.

• 18:29Sam Parr?

  And so the reason why Friends of Benefit interests me is I don't care about this. I don't care about that company. Like I said, I don't think that they're going to run it like a proper company. But if you were going to, I think I would do the Soho House model. Or I try to have buildings that are really nice and you really want to come and it's ran like a proper company. I would 100% do it this way. That takes a lot of risk, you know? Like I gotta make sure that these members, the membership stays valuable. But it incentivizes me to make my, make it great for my members. And I could use some of that money to buy buildings. And I think, so I think that I would use this model for a Soho-style membership.

• 19:07Shaan Puri?

  Yeah, so, so what do you think about us doing it? Why, why would you or why wouldn't you do it?

• 19:12Sam Parr?

  I think that it makes a ton of sense. There's really only one reason why you wouldn't do it, which is, do you want more work?

• 19:18Shaan Puri?

  Yeah.

• 19:20Sam Parr?

  Pretty much the only reason.

• 19:21Shaan Puri?

  And it's like the thing we were talking about the very beginning, like reciprocity. If somebody gives you a Diet Coke, you feel like you kind of, all right, cool, I'll kind of hook you up. As soon as somebody becomes a member of your club, you feel obligated to make a really fucking awesome club. You're like, I will not sleep until this club is, until you feel like you're getting the edge on this deal by 10x. Unfortunately, that's the way my personality is wired. And I think you're the same. And so it's like, oh, good. Do I want to over deliver on something right now? I don't know. I gotta, I gotta think before I commit to that because I've committed to that before.

• 19:50Sam Parr?

  That's the only reason why you wouldn't do it. But if you wanted to run this like a company and you wanted to create a coworking space and you wanted to do it with this model, I think that's a, that's a, I wouldn't say easy, but it's a very interesting path to build something quite big.

• 20:02Shaan Puri?

  Yeah. And I don't know if I agree with you that it has to have a physical space. I don't really think it's that. It's more like, you have to have value. So, okay, so Soho House is valuable because it's a place you can go. It's kind of like a third place. You can see, you know, you know that everybody else who's there is cool. So I think for this, like, the idea of having a digital community, a Discord, Slack, Facebook group, whatever, where everybody's cool, like you've seen this with trends, that's pretty valuable. People, people dig that. They think about that. Like with trends, you produce research reports, right? So you're going to get access to intel, intelligence about the market. That's interesting to you. Cool. That, that works too. There's also other stuff like, for example, I think that being able to access deals and deal flow is like pretty important to people.

• 20:48Shaan Puri?

  Or at least a certain set of people who have more, more sort of money than, than good investments and good investment opportunities around them. And then the last piece is, you could also do this with, you could sort of like auction off time in a way. So like, there's a world where we basically would say, all right, we create a friends with benefit token. And with that token comes, you're going to get access to me and Sam. Like, right now, that token gets you one hour with me and Sam. And so we create basically a thousand booked out, bookable hours when we mint these tokens. But you also know that our time is going to become more valuable and you want to use it when you, when it's really important to you. And so that's going to appreciate in value over time as our, you know, Elon Musk in 2000,

• 21:31Shaan Puri?

  his time was easier to book than it is today. Today, it's basically priceless. You basically cannot pay any amount of money. There might be some huge amount of money that you would have to pay to get an hour of his time with him not getting anything else in return. And so I think that's the other thing you could offer of value is basically time with people of value. And that time could be like an investment. You're basically betting today that I want to, I want to hold a block of Sam's kind of like advice or coaching or, you know, just hangout time because I think that's going to go up in value over time.

• 22:03Sam Parr?

  Yeah. So anyway, it interests me. And I agree. I think we're aligned there. Can I tell you about one more interesting thing that is related to rich people?

• 22:12Shaan Puri?

  Yes.

• 22:13Sam Parr?

  Have you ever heard of this company called WealthX?

• 22:16Shaan Puri?

  No. What is it?

• 22:17Sam Parr?

  Okay. So every year WealthX is, WealthX is a company, is a database company. And what they do is they basically use publicly available records. So property records and sometimes you can get people's tax returns, things like that. And they look for people who are ultra high net worth. Ultra high net worth is defined as $30 million in assets. And they create this massive database. I believe there's 800 to 700,000 people in the world that are considered ultra high net worth. And all they do is they comb through loads of different data. And then they have independent researchers who work their hardest to verify that this is true. And the reason why I discovered this is for years WealthX is famous. Every year they put together a study that says, here's how the wealthy are investing their assets. And they create this end of year asset allocation. And they say wealthy people

• 23:01Sam Parr?

  have this much in gold, this much in real estate, whatever. And I think that this is an interesting business. And it was actually recently acquired by a publicly traded company. So I was able to look back at their, at their numbers. And I actually think that a company like this is shockingly easy to start. And I think this company undersold. So they sold for $20 million in cash. They were doing about 12 million in revenue with $800,000 in profit. If I was the founder of this company, I never would have sold. They sell this to people for 15,000 or to other companies for $15,000 a year for subscription access. And they basically are selling it to people who manage people's money. So

• 23:38Shaan Puri?

  Right. Wealth managers.

• 23:40Sam Parr?

  Things like this. But the interesting thing to me and the takeaway to this, if you're listening, I think this model of business, this data business, we've called this, um, I think we said that, that messy data wants to be free. Is that, or sorry, data wants to be free?

• 23:56Shaan Puri?

  Data wants to be free. Yeah.

• 23:57Sam Parr?

  Data wants to be free and, and, and, and, um,

• 24:01Shaan Puri?

  By the way, free doesn't mean free price wise. It wants to be, it's like trapped and it wants to be let free, basically.

• 24:06Sam Parr?

  Correct. And the founder of CB Insights that does kind of like this for publicly or for privately held companies, he told me the same thing. He goes, our whole motto, motto, motto is, uh, there's a bunch of dirty, muddy data out there and we're going to go and find it and just make it really easy to consume. That's what WealthX did. I'm just pretty certain, I read the Glass Tour reviews, I'm pretty certain that this business is amazingly easy to copy and to figure out. So the ways that they get data is they'll, they'll tell you, um, they'll look at who owns a jet. They'll figure out who's donating money. So if you donate money to a nonprofit, oftentimes that's made public. If you're buying personal property, if you have certain hobbies, if you donate-

• 24:48Shaan Puri?

  That's how you get on the list. They don't know how much you have, but they're like, oh, Sam Parr, big donation, must have money. All right, put them on the list.

• 24:54Sam Parr?

  Yeah, they look at, um, they look at what, so if you're part of Tiger Glow, uh, what's it called? Tiger 21. If you, um, if you have certain interests, certain hobbies, if you donate money, that, that's how they get their information. It's just not that hard to build this type of business. Now-

• 25:08Shaan Puri?

  Right.

• 25:08Sam Parr?

  It is hard to sell, but everything's hard to sell. If you're going to get on the phones and you got to call people and you got to sell some 15 grand, that's always hard. But by creating the data out of your blogs, I think this is such a straightforward business if you wanted to make some money.

• 25:23Shaan Puri?

  Um, so, so, so they didn't make a ton of money.

• 25:27Sam Parr?

  No.

• 25:27Shaan Puri?

  And why is that? So this seems like, like CB Insights is a big business. I don't know, I don't know what CB Insights, what was it worth?

• 25:34Sam Parr?

  Close to a hundred million dollars.

• 25:37Shaan Puri?

  Uh, worth that or making that?

• 25:39Sam Parr?

  Revenue.

• 25:40Shaan Puri?

  Revenue. Yeah, exactly. Worth probably closer to a billion dollars then.

• 25:43Sam Parr?

  Yeah, a little bit more.

• 25:45Shaan Puri?

  By the way, founder listens to the pod. Shout out to Anand. I think you think he's a he's a pretty avid listener. So that that business worked in a much bigger way, but same principle, like you're saying, right? Data is there. It's muddy. We go dig it up. We wash it off. We rinse it. We polish it. We package it. We say, here you go. Here's that data you've been looking for. It was here. Like, yeah, you could have gone and got it yourself. But man, you don't want to go scrub through that mud. Well, let us do that for you. Let us organize this whole thing. So you just type in the name you want to know about. Type in the industry you want to know about and bam, here's the info. And so that business worked. Why is it? Is it because financial advisors, there weren't enough of them? No, there's a lot of them. They weren't willing to pay for this info. Why do you think this business didn't work? And what would you do differently?

• 26:27Sam Parr?

  It probably didn't work because they probably just hired a ton of people to make the stuff. So whenever, if you go to the website, you can kind of tell that some of their technology is janky. What I would do is I would use something like import.io or another third-party service like that. And I wouldn't build too much technology. I would only have, uh, my only technology that I would build was a pretty interface that pulls it all together. But I think you could build most of the stuff using Zapier, import.io, Airtable, things like that. I think that you could build like a pretty robust MVP that you could charge money for using things like this. And so I think they probably didn't make money because they probably their staff was just a bloated staff. The company was founded in 2010. So when they launched, a lot of the technology, that third-party technology wasn't available.

• 27:13Sam Parr?

  And so I think they just have a bloated staff that was mostly doing manual work to go and find these types of people.

• 27:19Shaan Puri?

  Yeah, okay, I can see that. This is a cool service. I'd never actually heard of WealthX, so I'm gonna go read the report. I think that's that's pretty dope. By the way, I want to say one other thing on the community side that we were talking about, going back.

• 27:33Shaan Puri?

  I don't think communities are great big businesses.

• 27:36Sam Parr?

  That's what I mean.

• 27:37Shaan Puri?

  Community of communities of communities can be great big businesses. Discord is a community of communities. Reddit is a community of communities. And both of those are like 10 billion-ish sized companies. And so if you can build, and so that's why I actually think Collabland. Like if I was gonna put money somewhere, I'd go put it in Collabland, not in Friends with Benefits.

• 27:58Sam Parr?

  That, that, same page.

• 28:00Shaan Puri?

  The platform you're using to launch all these different communities, that has the potential to be much bigger than any one of these random tokens. I don't know who the fuck is buying friends benefits. This might be a thing that they could just manipulate themselves, by the way. I have no idea. I think these thinly traded things could be potentially. I'm not saying they did. I'm just saying, who the heck is bidding up the price like this? It doesn't make a ton of sense to me. But, but yeah, my main point is that community of communities are better businesses than an individual one.

• 28:28Sam Parr?

  One's a community, one's a technology company. So my point of bringing it up was Collabland, I would rather invest in, but I wouldn't. I think that you can own a community that does 10 or 20 in sales and is profitable. But yeah, you're not, you're not going to knock it out the park with that business. All right. What do you got?

• 28:44Shaan Puri?

  All right, let's do another one. Let's do, okay, I have a little like hot girl side hustle. So we've done blue collar side hustle. We've done teenage, you know, the puberty side hustle. And now this is my hot girl side hustle. So I'm just trying to identify simple things that anybody who's in a certain demographic can do that will generate, you know, 10 to $50,000 a month of profit without big upfront costs or like specific hard skills that you need to have. And I'm not going to say only fans, although that is definitely a hot girl side hustle. So this hot girl side hustle is a little bit different. There

• 29:26Shaan Puri?

  are, I don't know if you kind of follow this too much. Actually, you do, because I think you guys run ads like this. The dominant way to advertise for products now, because you're advertising on social networks, the dominant way to advertise is not super high production value, finely produced content. It's what we call, yeah, it's selfie content, right? UGC is what they call it. I call it selfie because it's UGC. Who the fuck knows what that means? So user generated content, basically.

• 29:54Sam Parr?

  And they're not even doing, companies aren't just doing this on social at this point. If you look at a commercial on TV for Chime, it's the same thing.

• 30:03Shaan Puri?

  Well, yeah, the digital first companies, when they go to TV like Chime, right? First spent $100 million on digital. And now they go do their first TV spot and their whole company has been trained of like, hey, you know what works? When it just looks like a normal person talking, because an ad, people just get sort of blind to an ad that just glaze right over it. And so what works really well, like I see this with, with you guys with Morning Brew, which basically like, It's a TikTok ad and the person's like, you know, my secret to getting my boss to think I'm super smart. And then it's like, I fucking, I subscribe to the hustle. And it's like, that gives me the news every morning and I look really smart.

• 30:39Sam Parr?

  That, that

• 30:40Shaan Puri?

  That ad crashes.

• 30:42Sam Parr?

  That tagline, like, so Morning Brew does it, the skim does it, the hustle does it. All of, everyone who's in the, the email space does that. You know who invented that or who, who first used that line?

• 30:53Shaan Puri?

  No.

• 30:54Sam Parr?

  I wrote that. I wrote that. I wrote that. I stole it from an old ad book. I wrote that in 2016, I think. I stole it from an old ad book of like, um, something about a guy being a piano player. Uh, there was like a piano lesson ad from the 1960s about being a great piano player. He goes, uh, he thinks I'm naturally a great piano player. I'm not. I really just use this, this lesson or this way of learning music. And I took that and I applied, applied it here. Now everyone uses it.

• 31:22Shaan Puri?

  Well, that's kind of genius because that's not even like a word for word, right? That's actually like quite a different thing, but you got inspired by it.

• 31:28Sam Parr?

  Yeah, it's called swipe files. So I keep swipe files. So, um, I keep, uh, uh, digital files of all my favorite, favorite old ads. So for, for example, there's this one great ad about the Wall, from the Wall Street Journal and they, it's made them like $50 million in recurring revenue. And it was launched in like the seventies and it was called like the tale of two young men. And it was like, both of these young men went to the same college. They had similar jobs. Um, one did this and one did that. One earned this, one earned that. What were the difference? One bought the Wall Street Journal subscription their freshman year of college. And, uh, that's like the whole, the story of the ad. And it's like, the headline is like, the, the, why did these two young men do the, almost the exact same thing, but ends so, so much different.

• 32:11Shaan Puri?

  We should run that same ad for the podcast. And we should be like, basically that one listens to, one listens to my first million, one didn't. Uh, one became a millionaire by 30 and the other one, you know, is still, still like hoping that retirement kicks in, you know, at 65. Uh, we should run that same ad and then we should, when you click it, we should tell the backstory of the ad, basically, and, and

• 32:31Sam Parr?

  It's a great ad. It's a great ad. And so I keep a file full of these types of things. So anyway, go ahead.

• 32:36Shaan Puri?

  By the way, if people want to see, uh, go to swipefile.com. Our friend Neville owns swipefile.com, which is a great little domain to have. And he's built like a pretty fucking awesome WordPress. Digital swipe out. I wish mine was like that. My, mine is like in my notes app and I have a Slack channel. That's where I keep my swipes. But like, if I could, I would, I would have on like that. But he's got tons of great stuff there. Um, okay, going back to, actually, this marketing thing, by the way, that I kind of want to give you more props. That's kind of a genius way to market the hustle, right? So how would a normal person approach this? It would say, Hustle, it's a daily newsletter. So I'm going to say, sign up for our daily newsletter. Get the news delivered to you every morning. Right? Like that, they would focus on the product and you focused on

• 33:19Shaan Puri?

  basically the happy ending. And even the happy ending, you didn't just say, and now you're informed, because that doesn't like get people emotionally to like register at all. Right? What you're basically saying is, what's the outcome you want? You want to look smart in front of your boss? You want to look smart at work. We help you look smart at work. You know, read the hustle if you want to look smart at work. You like drew this line. Is that how you think about it? That's how I think about it. How do you think about, or what's your framework for that?

• 33:43Sam Parr?

  Exactly. Basically, um, one user told me one time that they were in a job interview for Lyft, and they brought up a certain line, like a certain story at the end of an interview that wasn't going well. And that created a relationship with this person interviewing her. And it's like, okay, great. I'm in this person's head. We were able to have a chit chat. Thank you, Hustle. You made me look smart. And so the idea here is, um, I wanted a story, uh, but I, I only wanted to be able to tell that story in like 200 characters. And so I believe the original ad was like, my boss thinks I'm a smart parentheses, I'm not. Um, the hustle's my secret weapon to trick them, though. It's working wonderfully. Try it. Or something like that. And so that was the whole idea behind, behind the ad.

• 34:25Shaan Puri?

  That's amazing.

• 34:25Sam Parr?

  That ad has reached, uh, 300 million people, I think, at this point.

• 34:30Shaan Puri?

  Yeah. And then everybody copied it. But you know, whatever, you can, you do what you gotta do. So, uh, okay. What was I talking about before this? I was talking about, oh, TikTok. Okay. So, so, uh, you know, uh, what I was trying to get to was basically that my hot girl side hustle. The what I was trying to get to is,

• 34:48Shaan Puri?

  Almost all digital advertisers have realized that this selfie style content that looks like native content, if you're on TikTok, it's got to look like it's going to be a funny or cute or interesting or amazing video. Or if it's on Instagram, it's got to look like an Instagram post. If it's on Facebook, it's got to look like a Facebook post. Those perform better than your professional commercials, your professional ads that look highly polished. People just skip past the polished stuff because they're looking for entertainment. So you have to look like the type of entertainment that looks like, that's native on the platform. So this has created a shortage of people who can create great on-script, on-brand selfie

• 35:28Shaan Puri?

  content. And so I know this for our brand, but many, many brands, everybody's trying to farm this out to either influencers or agencies. The agencies are like, "Look, we can run your ads, but like making this creative takes a lot of time and energy and thought and like, we don't have actors and like a place, a nice house to do this in." So, the hot girl side hustle is this, there's this girl on Twitter, her name's Social Savannah. If you go look her up, she's like a kind of like a, "I'll help your brand grow through Facebook ads, through TikTok ads." And she's, what she's not doing, or what she does some of, but it's not the important part, is like, "I do brand strategy, I do advertising strategy." Well, guess what? A lot of, a lot of agencies pitch that same thing. "We will, we will manage

• 36:11Shaan Puri?

  your, we'll run your ads, we'll be your ad agency." What she does that's different is she basically is, it's her, and I think she has like a couple of other like girls with her that do this. They're like, "Send us the product and then we'll take a bunch of these selfie videos and we will be the actor in your content." And because I know what ads work, I know what to say on here. And I just look like an average person and that's why this ad's going to work, because I just look like an average person. I'm not like, I, like, I have, I'm, I can make, I can get somebody's attention when they're scrolling, but I don't look like an actor in a set with a professional camera and a professional background. I look like a girl in our house. So this is my, if you're a college student, if you're a college girl specifically, there are a huge number of brands

• 36:54Shaan Puri?

  that will pay you. Don't try to become Instagram famous, become Instagram ad famous. And what that means is- Be the person who can take any product and just do a demo, a sales pitch and a testimonial and create branded ad content and you can charge thousands of dollars a month. And you can charge even a percentage of the ad spend for this, which is kind of insane. If you're good.

• 37:19Sam Parr?

  How much do you think Flo from the progressive commercial gets paid a year?

• 37:24Shaan Puri?

  Oh my God, I don't even know. It depends how good her agent is, but you know, they're spending tens of millions easily on that campaign. She's like a branded part of it. Like if you switched out Flo, it'd be like, hey, wait, that's not Flo. Who the heck is that? It's like, you don't know this, but there's this children's cartoon that's like the second most watched video on YouTube. It's called Blippi. Have you ever heard of Blippi? It's like Baby Shark, but like Blippi is this guy. What he does is he goes into like toy stores after they're closed and he films a video of himself playing with all the toys. And it's like mesmerizing for like my daughter. She can't look away when like Blippi can play for an hour. And it's like, you're playing with the toys. You're just watching him. And then like halfway through like the YouTube channel, they just switched the guy.

• 38:08Shaan Puri?

  And all the parents are like, who the hell is this guy? Like this guy's, you could just switch Blippi. Like I could see his face. It's not like there's a new Barney under the hood. It's like, so kids can't tell. Or at least like at the age, my daughter, she's two, like she can't tell. Maybe like a four year old can tell or something like that. But, but the parents always have to sit there with it. And so like, there's tons of online forums where people are like, uh, did you see that? They tried to just switch Blippi on us like that? Like whatever. So basically, yeah, I don't know if they can switch Flo at this point. Maybe they can, maybe they can't. Like the Old Spice guy, the Dos Equis guy, these become like part of the actual, like they become like non-fungible, you know, parts of the, of the, of the ad.

• 38:50Sam Parr?

  I think this is great for this woman. How much money do you think she should make in this, this, what's her name?

• 38:55Shaan Puri?

  Social Savannah? I have no idea. I mean, if you told me she's making 50 to $100,000 a month, I'd say, yeah, that sounds about right. If you told me spending a little bit less, I'd say she's probably going to be at 50 to 100,000 a month soon. Why? Because brands need this content. I don't want to have to arrange photo shoots or put myself in front of the camera. I just want to send, you know, product to this person once a month and they sit there in their bedroom and they record a new ad every day. And then I have 30 pieces of creative at the end of the month, by the end of the month that I'm testing on Facebook. And I'm saying this one works, this one doesn't do more like this. And that's what I want.

• 39:31Sam Parr?

  This woman is perfect. She is perfect. This is, so here's why.

• 39:36Shaan Puri?

  That's the full quote.

• 39:38Sam Parr?

  Here's why she's perfect. Uh, she's perfect because, so I've run, uh, my team had, we've run eight figures in ads, a lot of ads. I personally have probably ran five million, maybe eight million. So like a fair amount of, um, when we first started, I ran a lot of them. And my, our podcast, we've gotten accused of being bros. I'm just gonna say what I'm gonna say, but don't like hate me for being a bro.

• 40:02Shaan Puri?

  For a second here.

• 40:03Sam Parr?

  This is just the truth. Okay. This is just the truth. Okay. So we would have three different types of ads. Well, actually four, a hot guy, like a good looking, but not like hot, like an everyday next door type of guy.

• 40:15Shaan Puri?

  Right. Jim from the office.

• 40:17Sam Parr?

  Yeah. The, the equivalent for a woman. So like a, a pretty girl next door woman. And then like a smoking hot, like traditional.

• 40:25Shaan Puri?

  A 10.

• 40:25Sam Parr?

  Yeah. Or at least like the stereotype of like this, like, you know, whatever you like.

• 40:30Shaan Puri?

  What a model, what you think a model looks like. If you're gonna make a, have a model for your brand.

• 40:34Sam Parr?

  Yes. For both men and women, the pretty next door girl worked significantly better, significantly. It always works. And so that shocked me. It worked amongst both men and women. And when I look at this woman, I'm thinking in my head, this is, she's like, kind of exactly the, the, the ads that, that we run. They look like this woman, the, the ones that won at least.

• 41:00Shaan Puri?

  Exactly. Uh, that's exactly it. So even though I called it my hot girl side hustle, it's really not a hot girl side. It's actually, should be called more like, the reason, actually the way I was thinking about this was.

• 41:09Sam Parr?

  Approachable.

• 41:11Shaan Puri?

  Yeah, girl next door side hustle, basically. And if you, if you are like cute, basically, that's the bar. Because you have to get somebody's attention when they're scrolling. And the way the social media works, whether people like this or not, if this is a controversial statement, like, get over yourself. The way social media works is people react to, or they stop, or they pause when they see somebody attractive in their feed, right? We're like monkeys just scrolling through our feed. And so, so that's why I think you have to be certain level of attractiveness. But really, the most important part is, the thing has to look like somebody just like posting something from their, their account, not a branded thing. And that works the best. So anyways, I think this is an easy way to get to $5,000 to $10,000 a month easily.

• 41:54Shaan Puri?

  And I think the upside can be $100,000. If you're going to manage a group of people, like, there's some people who are on college campuses that are smart. They know how to put other people on campus to work for them. You could easily get this to six figures a month of income, and it's almost all profit.

• 42:10Sam Parr?

  I, I don't know this woman, but we run in the same circles. So this woman, I'm looking it up now. So there's a guy named Taylor Holiday, and I forget the other person's name, but they're listeners of the podcast. They follow both of us on Twitter. And they used to run this company called Common Thread Collective. And I think it's just an agency, right? It's just an agency?

• 42:28Shaan Puri?

  Yeah.

• 42:29Sam Parr?

  They seem like great guys. And I looked up Social Savannah on LinkedIn. So her name's Savannah Sanchez, this woman. And she used to work at that company as a paid manager.

• 42:38Shaan Puri?

  Yep.

• 42:39Sam Parr?

  And I imagine what happened when she was there was, they were like, hey, we gotta create these ads. And then somehow it came to like, oh Savannah, you're like, you're, you're like, good looking, and you're charismatic, and you're creative, like, let's just use you. And she was like, okay, fine. And then she actually kind of learned how the business worked a little bit while she was there. And this is how she started this agency. This is amazing. I'm totally on board with this.

• 42:59Shaan Puri?

  Yeah, it basically unbundles the ad agency. So the ad agency does, they do creative, but then when they usually, when they do creative, they usually farm it out to a photographer, videographer, another, another creative ad agency, whatever. They'll do media, like, strategy, like, what's your buying strategy? How much are you gonna, how are you gonna structure your campaigns? What's your budgets, et cetera? Uh, they do like reporting, client reports, all that bullshit. Then they're like, oh, you need to be on Google, Facebook, Snapchat. We'll, we'll manage all those. We'll put it all in one place for you. We'll keep it all organized. And the smart thing is if somebody had just unbundled and said, man, the most important part of this whole thing is the ad creative. That's also the part where you don't have to do almost any of the like client services and that undifferentiated stuff.

• 43:40Shaan Puri?

  And, um, and the good part about this is that if you are good at it, um, it's like sandwich video where basically you get known as the, the group to go to. That's who the D to C companies go to. So I think there's like an opportunity in that to become like the sandwich video for, for D to C.

• 43:54Sam Parr?

  And look at the link I just sent to you in, in ZenCaster of the people who work there.

• 44:00Shaan Puri?

  All right, let's take a look.

• 44:03Shaan Puri?

  Uh, please, three employees. Yeah, okay. Yeah, they all look, they all fit the profile.

• 44:08Sam Parr?

  Yes.

• 44:11Sam Parr?

  I love this company.

• 44:13Shaan Puri?

  Yeah, exactly. Like if I could invest in this company, I'd be like, hey, great. Just, I don't want to, not long-term, like give me a monthly dividend out of this company and I'll be very, very happy. I think I'll make my money back in six months.

• 44:23Sam Parr?

  God, this is great. All right, you want to do one more thing?

• 44:25Shaan Puri?

  Yeah, let's do one more. All right, all right, let's do, I'll, I'll do a more high-tech one. Okay, so we did the bro, bro-science one. I'll give you kind of like a, a cool, um, technology one. So a cool technology one is more blue collar, actually. There's a whole bunch of blue collar jobs around construction sites like forklifts, um, whatever the big, I didn't even know what they're called, like tractors, like the things that dig up dirt, cement trucks, whatever.

• 44:51Sam Parr?

  Dude, you didn't even know who Dolly Parton was. Did anyone email you and say like, what the fuck's your problem?

• 44:56Shaan Puri?

  No, they, nobody emailed me because nobody else knows about Dolly Parton either, unless, unless you come from a certain part of America. No, I'm just joking. I think a lot of people do know and they were just like rolling their eyes like, how, how is this guy not know this? Um, so the, the thing I was going to bring up is on construction sites, you have a lot of these, uh, heavy machinery drivers, basically. So drivers of forklifts, drivers of cranes, things like that. And these are really expensive labor and it takes skill and it's also dangerous. Right. And so I think what's going to happen is if you just fast forward 10, 20 years from now, I think all of this gets replaced with this technology that's it's not self-driving. It's more like self-operating, which is basically like remote or what they call tele-operated.

• 45:40Shaan Puri?

  So have you ever seen a tele-operated thing? Have you ever seen a demo of this?

• 45:44Sam Parr?

  Yeah. So I forget what they're called, but basically I remember about in 2015, I went to my friend's office, AJ, and it was called EyeCracked. And he had an office in New York and an office in San Luis Obispo, or sorry, San Francisco and New York or something like that. And he had this like thing, you know, remember like a hoverboard, like the two wheels? And he had like a stick coming up from it and then an iPad. And basically what you could do is you could use your iPhone and you could be remote and you could have this like screen hover around the office and you could be looking at it from your phone and talk to people. So you can go into like different rooms, things like that. And they also have them at stores now. So some stores are fully operated by those things.

• 46:26Shaan Puri?

  Yeah, there's a, there's a, we used to have one at our office. It was kind of like a, nobody really used it, but it was like, it was like a segue, but it's like an iPad on top of it. And anybody who's not there could like roll around the office in theory. So it's a similar sort of idea, but basically there's a set of technologies that say, hey, look, self-driving, like full AI, that's hard and far away. But what we can do is we can basically have a, we can do kind of like a labor arbitrage. So you can have like a driver, you know, instead of being in Los Angeles where labor might be expensive, you can have a driver in Santa Fe or a driver in the Philippines.

• 47:01Sam Parr?

  Yeah, that's badass.

• 47:02Shaan Puri?

  And basically the driver can basically drive and you could drive a full car. So there's just like eight cameras. The driver is basically looking at it like it's a video game. Like they have three monitors. The front monitor is the front windshield. The left monitors, if you looked out the left window and looked at your rearview mirror, and the right one is the right one. And basically they just drive and like the, they've gotten this down low latency where you can have a, I can go sit in a car. I've done this. I sat in a car that was being driven by somebody at a computer somewhere else that I had never met, that I never knew. And he drove me around the parking lot, no problem, parked the car and I got out. And I was like, oh, that's cool. That's Uber, but the driver's not here. The driver is a video game player somewhere else. And then that gets even better because, okay, that's that takes advantage of geography,

• 47:44Shaan Puri?

  right? Maybe I make $25 an hour here and I can pay $12 an hour in another city. But still, that's like kind of a lot of technology and risk for just saving, you know, $12 an hour. So then they go next level. They say, well, you know, we really only need the driver when they're at an intersection trying to make a left turn or trying to park. So but like on a highway or, you know, in a straight road, very simple stuff, the computer can just do it.

• 48:08Sam Parr?

  Fascinating.

• 48:09Shaan Puri?

  Super accurately. So what they do is it's like the Deep Sentinel. It's like the security company that you invest in where one security guard monitors 100 different doors because for a security guard, they only need to look when there's a when there's a person at the door. If there's no person at the door, the screen's off. And so what's Deep Sentinel did with smart was they made it where like you have like a super, a super agent who instead of just a bodyguard monitoring or a security officer monitoring one location, they can monitor 100 at a time. Similarly, with this technology, you have things driving. And then only when the computer is confused or gets into a defined situation that's like, hey, this is a left turn. We only trust humans to do left turns right now. Then it pops up

• 48:52Shaan Puri?

  on the driver's screen. The driver says, great, I will take over from here. They do the left turn and then they say back to autopilot and then the thing drives off again. And so that's called human in the loop technology where there's it's mostly AI, but then there's a human in the loop of doing the process. So human in the loop is super interesting. Most people view it as like a just a Band-Aid, like a bridge until we get to full AI. But I think there's going to be big companies that just do human in the loop stuff. And one of the human in the loop things that I think is going to happen is remote operated heavy machinery on construction sites. Because if you take the people away, you reduce a lot of the danger. You reduce the skill requirement. And then maybe you you only need an operator to do certain high skill tasks. And they just like basically load in like a video game.

• 49:37Shaan Puri?

  They do the task and then they leave and then they go do it again. So one driver can be like, working on 10 construction sites every day. I think that's going to be pretty cool because that person will make they'll make three times more.

• 49:49Sam Parr?

  What's the name of the company doing this?

• 49:50Shaan Puri?

  Yes. So there's a couple of different companies that are doing this. There's some that are doing this with. Construction, I don't know their names. Then there's a company that's just doing tele operation as a service. So basically it says, hey, you want to, you want to create a company doing tele operated forklifts? Cool. Or cranes? Great. Put our kit on your, on your crane and it'll work. Put our software kit.

• 50:12Sam Parr?

  Wow.

• 50:13Shaan Puri?

  This is, this is what your driver sitting somewhere else is going to use is our, our camera kit, basically. And that's a company called, I want to say it's like Shadow or something. Let me see.

• 50:24Sam Parr?

  That's pretty great.

• 50:26Shaan Puri?

  As a service, Phantom, phantom-auto is a, is one of the companies. Now, I don't, I've heard some, you know, mixed things. I don't know if it's a great company. This is a former YC partner left to go start this. They raised a bunch of money.

• 50:38Sam Parr?

  Who?

• 50:39Shaan Puri?

  They're trying to do it for self-driving cars. What'd you say? Who?

• 50:44Sam Parr?

  Who?

• 50:45Shaan Puri?

  Ah, I gotta look them up. Phantom Auto founder.

• 50:48Sam Parr?

  And what were the mixed things?

• 50:51Shaan Puri?

  Well, some people are just like, you know, anybody who's going to do this, they end up building this in-house. They don't actually, like, self-driving is, you have so many engineers, you're working on this so hard and your, your, your use case might be different. And so they're skeptical that a third party can provide the software that every one of these companies is going to use because it's not like there's going to be millions of companies that need this. It's more like dozens of companies today that need this and all dozens of those companies are probably going to do this in-house. I want to say Phantom was done by the YC guy. Maybe it's something else, but maybe I'm thinking, maybe I'm mixing up two of these.

• 51:27Sam Parr?

  No.

• 51:28Shaan Puri?

  I think I'm mixing up two of these. There was a different YC founder doing this.

• 51:32Sam Parr?

  So really quick, there's this company called Winner Winner. So winnerwinner.com. Have you ever been there?

• 51:38Shaan Puri?

  Yep. And I've, I've checked it out, but explain it because it's pretty cool.

• 51:42Sam Parr?

  It's pretty cool. So Joe Spicer, you know, our friend, he's maybe a co-founder or helped get it going. But basically what they do is they have a warehouse in Las Vegas. Well, so how cheap is a Las Vegas warehouse? You would know more than I do. Do you know?

• 51:57Shaan Puri?

  I mean, it's dirt cheap.

• 51:58Sam Parr?

  So like you could have like, I think Ramon had a massive, like many tens of thousands of square feet for like 20 grand a month. And then these guys, so these guys rented this massive warehouse and then they filled it with claw machines and you could play a claw machine. Like you see the camera, there's a camera on it and you could play this claw machine virtually from your phone. And then when you pull a gift, I actually don't know. You've done it? What happens when you win a gift?

• 52:25Shaan Puri?

  They'll mail it to you. So like you basically you buy credits and then you like play the thing. And then if you win the toy, you can you can basically like pay. I think you I think you have to be at a certain level to get the free shipping. But otherwise you like pay to have the the toy shipped to you. And so it's it's a it's an arcade you can play from far away and it's a tele operated little claw that goes down and picks up the items. It sounds silly, but these are actually really popular games, both in the US, but also in Japan. I think there's like a pretty big market for this, either in Korea or Japan. And then winner winner, their numbers were pretty like decent as well. Like they're doing they're doing very well. I think you guys invested, right?

• 53:03Sam Parr?

  No, we haven't, but they're thinking about we don't know if there's going to be a a conflict of interest. We're trying to figure it out. But they're investable, you know, like it's getting to that size.

• 53:14Shaan Puri?

  Yeah, it's it's a really cool concept. It's definitely worth like playing with once just to see it kind of like makes you think more is possible than you thought of, right? Like it's kind of a crazy idea to be like, hey, you know, that little like $2 thing where you can like maybe win an iPhone or like a stuffed animal like? Yeah, what if you could just play that from your phone?

• 53:32Sam Parr?

  I don't think this is that hard to set up either.

• 53:35Shaan Puri?

  Like, no, I don't think so either. They say like, because little things do matter, like latency or like if I push right and it doesn't go right until like it lags. But by then I pushed right three more times. Now it goes right three times. And I'm like, you can easily just get frustrated through your phone and be like, this is stupid. So there's definitely some tech you have to do to smoothen that out. But that's getting better and better every day. And, you know, any any group of smart people can solve that. That's a lot easier than, you know, self driving cars or whatever. But I think this whole space to watch is tele operation, remote operation, remote drivers, remote arcade games, remote, you know, construction, remote cleaning. There's there's a whole bunch of things where the machine can do 80% of the stuff.

• 54:20Shaan Puri?

  The machine can't do the last 20%. So instead of just waiting until the machine is perfect, you say, cool, we're going to put a human in the loop. The human will take over when that 20% needs to be done, when a decision needs to be made, when an adjustment needs to be done or whatever. And then the machine goes back to doing it. And now you have humans that are. Working remotely, they make more money than they would if they were just working on one site and the cost of the thing goes down too because you don't need so many humans working on stuff to make it work. So I think it's like a win, win, win. That's going to be more popular, but people don't really talk about that today.

• 54:52Sam Parr?

  Do you follow, do you know how much Onnit sold for? Do you know Onnit?

• 54:57Shaan Puri?

  Yeah, Joe Rogan's like thing. You had told me something. They sold for a couple hundred million, right?

• 55:03Sam Parr?

  Dude, someone told me like $200 million.

• 55:06Shaan Puri?

  Right.

• 55:07Sam Parr?

  Is that crazy? So Onnit's owned by this guy named Aubrey Marcus. Do you follow him on Instagram?

• 55:12Shaan Puri?

  No, should I?

• 55:14Sam Parr?

  This guy is nuts. I've heard some crazy stories about this guy. I like, I don't met, when I say nuts, I don't, I think he's a fine guy, but he's just like an oddball. I've heard some stories about him that basically one time he went to this rural area and went into an isolation area, but it wasn't like an isolation tank. It was like a, a room with no sound or no light and he stayed there for like four or five days. I've heard other stories about how he goes to this area. It does massive amounts of LSD. I've heard stories about how he had an open relationship with his wife and it didn't work out. And she was like, I believe her name's Whitney. I think she's like a, a former Miss America,

• 55:56Sam Parr?

  something like that. And they had an open relationship. This guy is wild. If you follow him on Instagram and he's like, he's like a hunk, like he's like, looks really good looking, like he's good looking.

• 56:06Shaan Puri?

  I've heard the word hunk in a long time.

• 56:08Sam Parr?

  Dude, he's like a hunk. He's like ripped. He's huge. He's good looking. He's got like cool tattoos. This guy, you gotta follow this guy on Instagram. It's wild. This is like some weird shit.

• 56:18Shaan Puri?

  I'm watching him, I'm watching him work out with a steel mace.

• 56:23Sam Parr?

  Yeah, that's what they sell. And there's like videos of him with like war paint on. And then this guy, he, this is the most, this guy's so fascinating to me.

• 56:34Shaan Puri?

  I love the founders of all these companies. So like, if you want to see interesting founders, look at the founders of supplement companies, you know, like energy drink companies, like, go look at the guy from Bang Energy.

• 56:45Sam Parr?

  Dude, weird.

• 56:45Shaan Puri?

  Tell me that's not a good time. Tell me that's not a good time on Instagram. Go look at the guys who do supplements.

• 56:51Sam Parr?

  The Bang Energy guy is like legit weird.

• 56:55Shaan Puri?

  Yeah, all these guys are legit weird dude. And that doesn't mean like, it's not a bad thing, but they're not, you know, they're not like, you know, some corporate, they run big corporations, but they're not corporate. They are not buttoned up. They are, they're a little wild.

• 57:10Sam Parr?

  Yeah, man, this is a good follow. You gotta follow Aubrey Marcus. He like, he does all this spiritual stuff. Like there's, here's a video of him. He's getting like blessed by a spiritual shaman or something. I don't even understand like some of this terminology. And

• 57:25Shaan Puri?

  All right. I have a good follow for you too, on Instagram, of a tech founder. Do you follow the founder of Telegram, Pavel?

• 57:33Sam Parr?

  No, is he, is he a nutty?

• 57:36Shaan Puri?

  Okay, so just type in Pavel, P A V E L. He's the CEO of Telegram.

• 57:42Shaan Puri?

  Telegram, if you don't know, Telegram is basically WhatsApp, but it's made by this kind of like guy who's, he won't sell the company. So he's like, you know, this guy's actually kind of like a genius. I think he started VK, which is the Russian Facebook. It's the only country. Durov, D U R O V. And his handle is just Durov, D U R O V.

• 58:02Sam Parr?

  Yeah, I got him.

• 58:03Shaan Puri?

  So, so this guy's story is pretty nuts. So he starts VK.

• 58:07Sam Parr?

  Damn, he's jacked.

• 58:09Shaan Puri?

  VK is the Russian Facebook. Facebook, the Facebook basically has taken over every other like, oh, I'm Facebook for Brazil. It was like, no, Facebook comes, wins. It's like, oh, I'm Facebook for like Bebo. Bebo was Facebook in Ireland, in the UK, and in Australia. Boom, Facebook won. And then in Russia, they just could never beat VK for like, a combination of like slightly political reasons, but also I've seen interviews with Zuckerberg where he's like, dude, they're engineers. These are like the most brilliant mathematicians ever. And they've just made it their mission in life. As soon as we release anything, they have it copied in 24 hours. Like it's, and it's like pixel for pixel copy. So VK is Facebook, but instead of blue, it's red. It's like a pixel for pixel copy of Facebook, but it's

• 58:51Shaan Puri?

  red and it has withstood Facebook. Facebook has not been able to win in Russia, even after like all this time. But then, You know Putin or whoever the government there, they basically took over VK, they just like took over the company and like demanded certain things he refused. And so this guy had to flee the country. So this guy flees and he creates Telegram, which is this like ideally this like encrypted messaging app. And it's like WhatsApp, but it's not owned by Facebook. So a lot of people like it. I love it. It's a great product. And he basically self-funded it for a long time. Like he's put like 50 million of his own money into like doing, he says, there's no ads, there's no whatever. And then he made a bunch of money when they did ICO, a token sale, but they never actually went through with it.

• 59:33Shaan Puri?

  But they got free money for a while from that. But this dude's Instagram following is hilarious.

• 59:37Sam Parr?

  I'm looking at him now.

• 59:38Shaan Puri?

  You'll never see anyone else in his Instagram feed. No friend, no girlfriend, boyfriend, wife, kid, nothing. It's only him. It's usually him with no shirt on and he's pretty ripped.

• 59:51Sam Parr?

  And he's, he's very ripped. I mean, he looks like Bruce Wayne.

• 59:55Shaan Puri?

  He is always doing like model-esque photo shoots.

• 59:59Sam Parr?

  Dude, he's like Speedo.

• 1:00:01Shaan Puri?

  He's like sitting on a sand dune or he's like riding a horse into the sunset. Like he's in a Speedo in a, under a waterfall. And this guy is just hilarious to follow. I just find this guy to be like an actual character.

• 1:00:14Sam Parr?

  So he's 36 years old, worth $20 billion. And he's got like pictures of him like with his mega yacht. This guy's fascinating. I'm gonna, I'm gonna obsess over this guy.

• 1:00:23Shaan Puri?

  He's the Billy of the week. Pavel, Pavel, you are the Billy of the week.

• 1:00:26Sam Parr?

  So where's he live?

• 1:00:27Shaan Puri?

  Just for, he floats around. He doesn't tell anyone where he lives. He's in Dubai a lot, but he travels around and he doesn't, he can't go back to Russia and he can't go, he can't go back to the state or he can't come to the States, doesn't want to come to the States. And so he just goes to like, you know, beautiful places that are, you know, I don't know if he lives in one place. He's just like always traveling it seems. Sometimes in the US, sometimes in Dubai, Finland, Brazil, wherever, Paris. And then he runs the company sort of like remotely.

• 1:00:55Sam Parr?

  So Wikipedia says, I don't know this word, aesthetic, like, what's that mean, aesthetic? I guess that means you don't know, own much.

• 1:01:02Shaan Puri?

  Yeah, you give up your possessions.

• 1:01:04Sam Parr?

  He promotes freedom of property. So I guess he doesn't own that much stuff.

• 1:01:10Shaan Puri?

  Yeah.

• 1:01:10Sam Parr?

  Wow.

• 1:01:12Shaan Puri?

  Yeah, he rents some nice shit. I'll tell you that much. So.

• 1:01:15Sam Parr?

  Like, he's renting like a mega yacht, probably a hundred million dollar yacht. This guy's fascinating.

• 1:01:22Shaan Puri?

  And his kind of like mission in life is just sort of to be like the anti-Facebook, anti-VK. And so I find him to be cool because he's like an idealist. Like if you use Telegram, he writes the update and he'll be like, we have, you know, 10 million more members. Telegram remains 100% free, 100% encrypted, 100%, you know, like, what's it called? Like, you know, independent. And he's like, you know, we release these new features and he's just like, he definitely has like an idealistic streak around privacy or on freedom. At least that's what he promotes.

• 1:01:57Sam Parr?

  And this company is like a $20 billion company, right? Or like a multi-billion dollar startup?

• 1:02:03Shaan Puri?

  Telegram would be a multi-billion dollar startup. But again, there's no, there's no outside investors and there's no, he'll never sell. So, you know, it's, nobody knows the real value.

• 1:02:12Sam Parr?

  This might be one of the most valuable companies per employee. I'm looking at their jobs page. They only have like five jobs up. A content moderator, a translator, a junior accountant, and assistant to the CEO.

• 1:02:27Shaan Puri?

  Dude, that's a sick job. If you can become, if Pavel's the CEO, that's a sick job.

• 1:02:33Sam Parr?

  That's crazy, right?

• 1:02:35Shaan Puri?

  Yeah, it's insane.

• 1:02:36Sam Parr?

  Interesting company. Does it make money?

• 1:02:39Shaan Puri?

  Uh, no, it doesn't make any money. He doesn't care about it making money. He doesn't want it to make money. They did, they were like pretty pure until they did this ICO thing. They basically, they were like, we're gonna beat Ethereum. We're gonna like build a better version of Ethereum. With all this crazy shit, they released this white paper that was like, we are solving all these impossible computer science things. And people who are smart technically, they were like, all right, well, like if anyone's gonna do it, it's gonna be these guys, but I don't think, I don't think anybody could do this. And definitely nobody could do this in this timeline that they're talking about. Like the crazy sharding schemes or whatever. And basically they, so, so, so they did this ICO. I think they raised like $4 billion or $3 billion.

• 1:03:22Shaan Puri?

  I have some of the details wrong. I didn't read, I didn't prepare for this one. But they raised a few billion dollars and then the US basically said. You can't, that's a security offering. You can't do that unless you follow these regulations. And so they just pulled the plug on the ICO. But for a year, they held everyone's money, saying it's going to get listed at the end of the year, or two years maybe even. They held everyone's money.

• 1:03:41Sam Parr?

  What the hell?

• 1:03:42Shaan Puri?

  So they had like a free float of a multi-billion dollar float for multiple years and then they gave back the money. But for, the deal was so hard to get into that all these middlemen who had allocation, I think you had to buy $20 million slots. That was like the minimum purchase at the time, I think. People would buy the 20 million and then they would sell chunks of it to individual retail investors like me for 30 million, a 40 million total. And so people got back the 20 million, but if they sold it for more than that initial strike price, you were screwed. So a lot of people put in, you know, $100,000 into this thing and got back 72 years later. You know, but that's the risk you take.

• 1:04:19Sam Parr?

  I'm gonna be researching this all day. Alright, that's the episode. I gotta run.

• 1:04:24Shaan Puri?

  Cool. Alright, see you later.