This guy built a $1B+ brand in 3 years. The product? You'd never guess

Get Shaan's guide to go from $0 to $1M: https://clickhubspot.com/etpc Episode 817: Sam Parr ( https://x.com/theSamParr ) and Shaan Puri ( https://x.com/ShaanVP ) talk to Chad Janis ( https://x.com/chadjanis ) who just sold his gummies business for $1b+ in less than 3 years. — Show Notes: (0:00) Intro (1:28) origin story (8:11) $30K to $230K in 1 month (10:33) Naming Gruns (13:14) remixing formats (20:28) only looking for $10b ideas (29:25) 10-minute ecom Marketing Masterclass (41:26) $1b Idea: ACH distribution layer (48:17) Access is everything (57:16) Where Chad is going to spend his money — Links: • Gruns - https://gruns.co/ • Replo - https://www.replo.app/ • Monarch - https://www.monarch.com/ — Check Out Sam's Stuff: • Hampton (joinhampton.com): My community for founders. Average member does $25m/year. Many of the guests are members. Get after it...apply: http://joinhampton.com/mfm — Check Out Shaan's Stuff: • Shaan's weekly email - https://www.shaanpuri.com • Visit https://www.somewhere.com/mfm to hire worldwide talent like Shaan and get $500 off for being an MFM listener. Hire developers, assistants, marketing pros, sales teams and more for 80% less than US equivalents. • Mercury - Need a bank for your company? Go check out Mercury (mercury.com). Shaan uses it for all of his companies! Mercury is a financial technology company, not an FDIC-insured bank. Banking services provided by Choice Financial Group, Column, N. A., and Evolve Bank & Trust, Members FDIC • I run all my newsletters on Beehiiv and you should too + we're giving away $10k to our favorite newsletter, check it out: beehiiv.com/mfm-challenge My First Million is a HubSpot Original Podcast // Brought to you by HubSpot Media // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano /

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

• 0:00Sam Parr?

  Zero to over a billion dollars in 32 months. Maniacal.

• 0:03Speaker 01

  We're quite literally just getting started.

• 0:05Shaan Puri?

  Where do you think is that gap to really jump from average or good to great?

• 0:09Speaker 01

  If you want to have the greatest odds of success, it's by creating a new format. New formats win.

• 0:14Shaan Puri?

  You obviously spotted one really great opportunity. I'm curious what other opportunities you spotted.

• 0:18Speaker 01

  I think there's an idea that no one else is going to be able to run out. There's a $10 billion business idea.

• 0:23Sam Parr?

  You should just say it now and we'll bleep it out.

• 0:25Speaker 01

  We'll talk about that. I think that's the biggest opportunity for founders.

• 0:28Sam Parr?

  What are the inputs necessary to get to 100 million in revenue for an e-cop brand in three years?

• 0:32Speaker 01

  Here's what I'll say.

• 0:43Shaan Puri?

  Here's, here's three things I'd love for you to deliver. One, I want to know the origin story, like how the hell did you have the idea? And why did you have the confidence in the idea? We're going to go there. Two is you sent us a thing about your marketing funnel, which is like, you know, what does world-class marketing look like in this scenario? And then the last part, I want to riff with you, brainstorm on like, where to from here? You obviously spotted one really great opportunity. I'm curious what other opportunities you spotted.

• 1:07Speaker 01

  Yeah, let's do it.

• 1:08Shaan Puri?

  Okay, sweet. Um, dude, I've been, I've been taking groons for, I don't know, six, six to 12 months now because it's like, it's basically like eating candy. It's like you open up a pack of gummy bears and then you eat them and then you're like, I just had vegetables.

• 1:23Speaker 01

  Totally.

• 1:24Shaan Puri?

  I ate gummy bears, but I, I think I just had vegetables, maybe?

• 1:27Speaker 01

  Totally.

• 1:28Shaan Puri?

  And so I want to know, where were you sitting when you were like, you know what? What if we did this?

• 1:32Speaker 01

  Yeah. So, um, I like to describe myself as a entrepreneur who had short stints in private equity and investment banking. So I've, I've started three companies. This is my third company. And I actually didn't want to start a company. So I was on my way from Boston at a private equity firm called Summit Partners. And was leaving that investment firm to go get my MBA at Stanford. And I told myself, look, I just want to have like a normal MBA experience for two years. I'm not going to start anything. Maybe I'll do an internship in the summer. And then it was like two weeks before going out to Stanford. I was at my parents' place in, in Utah and just doing some work and I'm drinking a greens powder.

• 2:14Speaker 01

  And in my dad's office, I just remember looking up like super vividly in the, in the corner of the room being like, there's no way I'm keeping this habit past 30 days. Like I'll, I'll do it because I always finish what I started, but like. I'm not going to stick to this habit post 30 days. And it wasn't just the taste. For me, it was like, you know, you got that weird frothy sediment at the bottom of the drink. And the biggest thing for me that I think this is probably unique is I remember staring at the bottle sitting on the countertop on like the drying rack. And I remember being, and I'm sort of an OCD person. I remember just being like, if I commit to this habit, I've got to like stare at that bottle on the countertop for the rest of my life. Right? Like, there's, there's just no way that's going to happen. And, and so that got me thinking about, hey, how do I take a, a comprehensive supplement nutrition

• 2:59Speaker 01

  and put it in some format? I didn't know it'd be gummy at the time when I had the idea. How do I put it in some format that gets people looking forward to it? Like they'll go to bed at night being like, I can't wait to have that the next day, which, which is a complete pivot, I think, to how people sort of think about supplementation.

• 3:14Sam Parr?

  Can we like roll it into a blunt now?

• 3:16Speaker 01

  Yeah, exactly. Look, hey.

• 3:19Sam Parr?

  Smoke your greens.

• 3:19Speaker 01

  Well, we'll talk about that. I think, I honestly think that's the biggest opportunity for founders. Like people just want to rip on the formats that work. But I, I think if you want to have the greatest odds of success, it's by creating a new format. Right? So if it's a blunt, awesome. If it's these little zen pouches that people are doing now and making those like focus, it's non nicotine, great. Like new formats win.

• 3:43Sam Parr?

  Did you think that, um, I mean, just it's, it's maniacal. 32 months to a, a, or a billion dollar exit is maniacal. Did you call your shot and you're like, that's where we're going to go? Or were you like, who knows? I mean, what, where was your mindset when you started it?

• 3:59Speaker 01

  This is a bit shocking to hear, but we've basically met the forecast that we put in place since the very beginning. You have to appreciate, I was, I talked with like thousands of entrepreneurs when I was at Summit Partners. I, I looked at the proprietary data sets. I don't have them obviously anymore, but I have a very visual memory. So I know the LTV, the CACs of hundreds of brands. And so like for me, it's weird. Like I could tell you I won't, but I could tell you what like every big brands, LTV, the CAC and margin looks like, all the brands that we know of today. Now, I didn't really forecast beyond a hundred million of revenue because that would be pretty pointless.

• 4:37Sam Parr?

  Like, I'm not a sociopath.

• 4:39Speaker 01

  Yeah.

• 4:40Sam Parr?

  There's a fine line between ambition and being just absolutely batshit. So you're, you're sitting there now, I want to ask you something about.

• 4:48Shaan Puri?

  In between when you're like, oh, like, I don't really enjoy this warm factor. What if there was another? And you said you didn't have gummies, you know, right away as like a, it's not like you immediately had the fully baked idea. But I'm curious, like, what were the either companies or products you had like admired? Cause I sort of have this, this thing, which is like, what you admire becomes a little bit of your destiny, right? Your, your, your admiration becomes your destination. And if you think about like a lot of a great, great entrepreneur, Steve Jobs famously, who did he admire? What products he admire? And then you steal little elements of that. They sort of bleed out into your final products years later. Same thing with comedians and movie makers. What were the products and companies that you thought were kick ass? That you feel like inspired some of the result of Gruen's?

• 5:32Speaker 01

  Yeah, look, I sat on the border, observed the boards of great brands like Ruggable, Dr. Squatch, Brooklyn and Chubbies, Solo Stove, Thuma, 12 different businesses. And so I learned a lot from the unique problems and frankly, the recipes that worked for each of them. I would say that the brand that I think we most closely resemble in terms of execution is Dr. Squatch.

• 5:55Shaan Puri?

  Is that deodorant?

• 5:56Speaker 01

  It's the, the cold processed soaps, the bar soaps that, for men.

• 6:02Shaan Puri?

  I've seen like the marketing, but I think I have the deodorant, but I don't know. What's the, what's so special about it? Like, is there something cool about it?

• 6:08Speaker 01

  So what's cool about it is, so they just sold the Unilever like last year for 1.5 billion. And in that business, what's cool about it is one cold processed soap is more natural, I would say. So it's, you're not getting all the chemicals and stuff in, and it's a very clean product. But because of the branding, the approach, the partnerships they do, I mean, they've done partnerships with like Harry Potter, Star Wars, SpongeBob, all sorts of really cool, like fun partnerships. They've taken an approach where you as a consumer relate to the brand, right? And so prior to Dr. Squatch, I don't even know what I was using. I was probably using whatever my wife was buying and stocking in the shower. But, but they were the inspiration for us. I think that what they've done within the personal care space, making it a joy

• 6:51Speaker 01

  for the consumer is what we aspire to do within supplementation where, I mean, we all spend time on social media. You get one ad and it's like, oh my goodness, Sean, Sam, I don't know how old you guys are, but you're blank years old and you've never heard of creatine? What the hell are you doing with your life? Like, you're gonna die tomorrow. And then you get a colostrum ad. What are you doing with your life? Like, you need to be taking colostrum right now. It does a blank percent increase in blank body metric. And I just think that the way that we have approached and took inspiration from Dr. Squatch is to take that and make our supplementation a lifestyle, something that people look forward to. They feel like it resonates with who they are and how they live their lives.

• 7:32Shaan Puri?

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

• 8:11Sam Parr?

  How much money did you raise to get to your first million in revenue? And how fast did it come?

• 8:15Speaker 01

  Yeah, month one, we did like 30,000 in revenue. And month two is already like 230,000. So I guess we like, in month two, a month into the business, we had already crossed the 1 million run rate, probably 2.5, 3 million at that point. I've never really looked at the business that way. Maybe you've heard me talk about LTV to CAC.

• 8:35Shaan Puri?

  Yeah.

• 8:36Speaker 01

  I would say we burned, we probably burned through like $8 billion of capital until we reached profitability. That could have been less if we slowed down growth a little bit, but just the way it worked out is that I think we burned through about $8 million of primary capital before we hit profitability.

• 8:54Shaan Puri?

  You mentioned like focusing on LTV to CAC. For you, what's good and what's great?

• 9:01Speaker 01

  Yeah, I think table stakes for businesses that need to be acquired, you need to be at least three. The best I saw, I won't obviously disclose where we're at, but during the COVID era, I would see brands in the four to five range. You know, those brands are probably two and a half to three times right now.

• 9:17Sam Parr?

  But when you say LTV, are you referring to, so LTV, lifetime value is for, for an econ brand, does value mean your contribution margin?

• 9:27Speaker 01

  Yeah, let me describe that the way that I always look at it. I use a three-year period. So 36 months and LTV is fully burdened gross profit, meaning Sam orders our product. What is the, what are the total costs stripped out of that value to get it to Sam's door? So you've got product cogs, you've got discounts, returns, you've got fulfillment, shipping, merchant processing fees, like you've got all of that that gets it to the door. That's your lifetime value over a three-year period. How much contribution gross profit are you getting from the consumer over a three-year period?

• 10:03Sam Parr?

  And you use three years, not because that's how long someone subscribes to Groons. You just said three years for everyone should use three years.

• 10:08Shaan Puri?

  Because you can't do a lifetime.

• 10:09Speaker 01

  Yeah, I think, I think it's like just a productive way of looking at it to optimize against. I mean, we obviously look at three months, six months, 12 months and try to make adjustments based on that. But yeah, I mean, we've got consumers who are, you know, are 32 months old. So we haven't hit that 36 month mark, but like there's very clearly going to be consumers who are around purchasing into, I guess, quote perpetuity.

• 10:34Shaan Puri?

  And you picked a name that if you had told me, I would have been like, hey, brother, do you want to win? Or are you going to put a umlaut over one of the letters and nobody knows how to say it? And then you won. So I'm an idiot. What, what, what's this, what gives?

• 10:50Speaker 01

  So what I always say here is, and Sam botched Groons at the start, he said Gruns, which is totally fine. What I tell people is, what I tell people is, I do not care how you pronounce our name, as long as you're buying. So like you can call it Gruns if you want, you can call it Groons, which is correct. It's Groon.

• 11:07Shaan Puri?

  But, but did, did you think it was a good name and you knew something none of us do? Or did you just not care about the name? And how the hell did you arrive at that name?

• 11:15Speaker 01

  Yeah. So the word Groons with an S, I guess I can show you here, with an S at the end, actually doesn't mean anything in the German language. The word glue means green in German, but once you throw an S on it, there's actually no meaning to it. And so when I threw an S on it, it just seemed to be like kind of fun and playful. You've got this like natural smiley face. It felt like something that we could brand over time really well. And it's, it's simple. But you're right, like at least in America, very uniquely in America, like 70% of consumers don't know how to pronounce it.

• 11:48Sam Parr?

  That'd be like your argument to the team, like, no, guys, it makes a ton of sense. Now, it may not make sense in America, but like, you know, Sean, we had a, we had this guy, David, on who runs a company called Lexicon, and his whole job is naming companies. He's named Swiffer, Fabreeze, Sonos, BlackBerry. Sean, what do you think David would say about that name?

• 12:09Shaan Puri?

  Well, it's hard to know, right? Because he's got this little AI computer brain where he's like, yes, no. And it's almost like a sommelier describing the taste of a wine. And then you just have to nod along like an idiot, be like, yeah, I sense the notes that you're talking about there. I thought notes are for music, but I definitely sense it. And so, you know, I think it's hard to know, but I would have guessed love, right? You're talking about like, doesn't make much sense in America, the market we're going after. But you did it anyways. What was runner up name? Or, you know, in the brainstorming process, sometimes you start with like, here's what we're definitely not going to call it. Because it kind of guides you away from maybe some typical areas.

• 12:46Speaker 01

  Honestly, like, I hit it pretty quick. So I guess I didn't mention this. I served, I grew up Mormon. So I served it to your mission in Germany, Switzerland, Austria. So like, I am fluent in German. And so when I had the thought.

• 12:59Sam Parr?

  Pretty sick assignment.

• 13:01Speaker 01

  Yeah, totally. It's literally called the Alpine German Speaking Mission.

• 13:04Sam Parr?

  Yeah, like, you know, someone else could have been assigned to like, you know, Redding, California, or.

• 13:09Speaker 01

  Yeah, totally. That wouldn't be too bad. That wouldn't be too bad. There's worse.

• 13:14Shaan Puri?

  All right. So you have the ideas. How long did it take you to go from idea in your head? To I know what the product is gonna be and I have my first batch and then I go for sale? Like, what was that timeline like?

• 13:27Speaker 01

  Yeah. So coming up with gummies took about a day. I grew up, you're gonna think this crazy, you know, those like big, like, I guess they call them like single day servings of Sour Patch Watermelon slices? Yeah, yeah. I would eat those gummies, one of those every day in college, like a full 450 calories every day. I've always been a gummy fiend. And so now I get to obviously have like a productive health gummy every single day. And there's a ton of them that we sell. I have a ton of ideas always circulating in my head and this Notion doc I have. And typically I sit on those ideas for about a year. This one, I was like, it's so obvious. I gotta do this. I'm the right person to do it. And so I started working on it immediately. Getting it to launch, now to answer the question there.

• 14:13Speaker 01

  I immediately, like within a week of having the gummy sort of connection, said, okay, why hasn't somebody done this in gummy form? Right? Like, you've got a ton of gummies. Why hasn't somebody put comprehensive nutrition in a gummy? And the big aha moment for me was the entire gummy industry is built around these 60 or 30 count bottles, transparent bottles with a cap on the top. That is as gummy exists. So I asked the question, what, what would need to change? What would it need to look like to have gummy be comprehensive nutrition? And then that's when I went down the path of like, okay, if it's a, you know, a pack, how big's the pack? How many gummies are in it? What's the flavor of the gummy?

• 14:54Shaan Puri?

  Right.

• 14:54Speaker 01

  What's the total?

• 14:55Shaan Puri?

  This is important, Sam. Sam, you've never taken the product, right? No, I'm gonna buy it now, though. So the way it works is, this is a good point you just brought up, which is, you don't like, when we say it's a gummy, you think it's a, it's a gummy. No. A single serving, you eat eight of these things. So it's literally like having a pack of Sour Patch Kids, which I think was, you know, seems fine, whatever. But it's actually pretty non-obvious. And if I'm reading between the lines or if I'm understanding what you're saying, you're saying one of the reasons nobody had done the comprehensive gummy was because the gummy would need to be like, you know, four inches large to contain everything. But what if we made it, what if we made it where it's not a gummy a day? It's a pack of eight.

• 15:34Speaker 01

  Exactly.

• 15:35Shaan Puri?

  We packaged them as little pouches of eight. And that's how, that's how we can do this when other people may not have tried to do this.

• 15:41Speaker 01

  Yeah, it's, it's, our packs are, it's about eight. We go off of gram weight, which is about 20 grams. And some grams are smaller, bigger than others. But yeah, it's a, it's a full, every gummy is identical in terms of nutrition. It's sort of the total of the eight in this case that make up the full desk.

• 15:58Sam Parr?

  I just think that it's insane that I asked you a question that I thought was going to be ridiculous about like you pointing like Babe Ruth and saying like, you know, we're going to get to this. And you're like, yes, that was part of the plan. I mean, it's pretty audacious to say, I'm going to get to 100 million in revenue in less than three years. For the people listening, what are the inputs necessary to get to 100 million in revenue for an e-comm brand in three years?

• 16:21Speaker 01

  So it doesn't have to be consumables. I think everybody points at consumables these days and they're like, ah, supplements. It's like, it's a better business. It's not necessarily a better business because if you're selling a hard good, like bed sheets or furniture, your margins are going to be worse. It's going to be more difficult to ship. Like, there's a lot of things in there. But you theoretically make money on day one. In supplements, you don't. You got to make that money on the retentions. That's a new lever you got to pull to make the business work. So to answer it directly, Sam, I think first and foremost, you've got to have a good product. And good product doesn't mean like make a better version of ruins. Like, that's not going to work for people. What's going to work is finding that product category, that white space. Good product equals new white space.

• 17:03Speaker 01

  So you've seen, I'm sure you guys have seen these like nicotine pouches, the whip and like ultras of the world.

• 17:09Sam Parr?

  Like, and energy, it's basically, looks like a zen, but it's not tobacco or nicotine, it's energy.

• 17:16Speaker 01

  Yeah, it's like, like caffeine and other things, like the nicotine pouches.

• 17:23Speaker 01

  Amazing. Not because I'm a believer in the product, but amazing because now you're taking a new format, a form factor that doesn't have competitors. And so I think anybody looking at it and be like, oh, I'm going to do it too. Like you might find a little bit of success, but you're not going to sell your business. You're not going to be the winner here. Go find a new product format. Symbiotica, I came out with these little liposomals. Who else have I seen that's created new? Oh, you've got like, do you know the product dose? It's like the liver health product. It's like these little shot classes. It's like, it's like a concentrated liquid. That's another one. I wouldn't

• 17:55Sam Parr?

  Wait, a concentrated liquid of what? Liver?

• 17:58Speaker 01

  Like their supplement is a concentrated liquid for the liver. So look up, I think it's dailydose.co is the website. That's another product that has like a unique format. Another one for you. You guys know Mary Ruth Organics or Ro Nutrition, RHO?

• 18:15Sam Parr?

  Uh huh.

• 18:16Speaker 01

  So those are like, I'm not sure if they're liposomal, but they're like liquid vitamins, right? Like their approaches were the liquid vitamins. I'm shocked there's not more competition doing that. Like, these are big businesses. Every single one of the ones I just mentioned is a big business doing really well.

• 18:31Sam Parr?

  So the framework of this is taking a thing that everyone knows, or many people know, and just slightly changing the form, the way you consume. But everything that you've named so far has been a consumable.

• 18:42Speaker 01

  Correct. Because that's the space that I'm like most familiar with and people typically are looking at right now. But like, it would be the same thing. Like, do you know how big Cozy Earth is? Their whole thing was bamboo sheets, right? And I don't, if you ask me, I'm sure other businesses sell bamboo sheets, but like, that's their thing. And like, they're a big business as well. And so I could give you examples across all sorts of categories. Obviously, supplementation is the easiest for people to visualize.

• 19:10Shaan Puri?

  Wow. So the step one you're saying is good product, but let's say that less generically, what you're saying is the right product. And the right product is a category that's not already super saturated. And you either, either you take an existing category, you change the form factor to make it new, or you find a new pain point, new problem, new supplement, new whatever, and you're going to do it. You need some point of key difference. Differentiation, your vitamins, but your liquid, your sheets, but your bamboo, your, you know, your greens, but your gummies. And you find that key point of differentiation, which gives you new category. All right, that's step one.

• 19:43Speaker 01

  Exactly. And to be clear, a couple that I've just seen recently, and then I'll tell you the step two. I've seen jelly beans is a form factor. I've seen lollipops, right? Like people are, it, it, do I think that those businesses are going to be huge? Probably not. Like it's a little bit niche, but like they're probably going to be more successful than somebody making a gummy like us.

• 20:02Shaan Puri?

  Hey, stupid question. You started this by saying Sour Patch Kids.

• 20:06Speaker 01

  Yeah.

• 20:06Shaan Puri?

  How come none of the gummies are sour? Why doesn't anybody be like, it's sour vitamins?

• 20:11Speaker 01

  TBD, TBD. We might, we might give you something like that, Sean. I'm a sour fiend as well. And I'm going to hit that. Don't worry.

• 20:19Shaan Puri?

  Sometimes I want to start the business and then sometimes I realize, oh, I know, I'm just hungry. And I just want to eat that thing and I don't need to start. And this might be the category, or maybe I'm just hungry.

• 20:28Sam Parr?

  Wait, you actually said something interesting. You said it's too niche. Is there a, what's your, to get into a hundred million in revenue, is there, okay, so you said, take the form factor. And then the second, or I don't know if it's the second thing, but there, there is a TAM related thing here. Is there like a threshold where you're like, this has legs?

• 20:46Speaker 01

  Look, like I'm, I'm, I'm a bit psycho, right? Like all I've seen around me is businesses getting to hundreds of millions of revenue quickly. So like my gauge for success is in, in the business I started, the first business I started, I literally sunset six months in, it was at a hundred thousand of revenue and 90% EBITDA margins. And I sunset it because I said, this isn't big enough. Like this is it. But that's how I'm wired, right? Like if somebody wanted to get to a $5 million cash flow business and run that, like that's, that's massive success. So I'm, I'm not going to like deter people from.

• 21:16Sam Parr?

  But I want to know your, your threshold.

• 21:19Speaker 01

  Yeah, my threshold, well, I mean, my, my sites are even bigger now, right? Like I'm still working on grooms and nutrubes and juice and these products you see behind me. We have more than just grooms now. Happy to talk about that. But I, I mean, at this point, I'm looking only at stuff that can be one $10 billion outcomes, somewhere around there.

• 21:39Sam Parr?

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• 22:13Shaan Puri?

  So let's, let's keep going in your formula. What's, what's, uh, did we do step two or not?

• 22:16Speaker 01

  Number two, and this is the end of it, is LTV to CAC. So if you're, if your business has an LTV to CAC of three times plus, you are golden. Anytime people talk about profitability, anytime people talk about M E R, I'm not sure if you're familiar with that. It's like marketing efficiency ratio. The way that you think about it is like, if you're, if you spend 20% of your marketing or of your revenue on marketing, then the inverse of that is a five X M E R. Right? So one divided by 20%.

• 22:47Shaan Puri?

  All you're saying is I want a machine where I can buy a customer for a dollar. And I know that in 36 months, that customer will pay me back $3. And I'm going to dump as much dollars as I can into the front of that funnel as long as that's possible. And I'd say the key here is most people, I don't know, maybe, maybe I'm just wrong. But I think a lot of people think lifetime revenue, lifetime value as just revenue. And what you're saying importantly here is it's the, you know, totally fully loaded gross profit. So to get to three, you're probably actually doing $6 of revenue on that customer. Close to a five, five to six to get three bucks of gross profit off that, of that customer.

• 23:21Speaker 01

  Correct. Whatever your margin is, but yeah, that's correct. You've got to do, but if you hit that three times fully burdened gross profit LTV divided by your CAC and that equals three or more, you've got a business.

• 23:34Sam Parr?

  How did you know that Groons was going to be one to three?

• 23:38Speaker 01

  Um, I didn't. I've seen enough to know how it might play out, but we, we came out with a CAC. Everybody in our company since day one knew what our CAC ceiling was that would result in a three times or greater LTV to CAC.

• 23:52Shaan Puri?

  Can you say what that number is or no?

• 23:54Speaker 01

  When I first started, I mean, I can't really tell you, but what I'll tell you is it's 2X higher today than it was on day one of launching the business. Why? It's not because we magically got better LTV. It's because I set the CAC so low to ensure that we'd be able to hit it.

• 24:09Shaan Puri?

  So what does that mean then? Your ads need to be extra catchy? In order to make extra catchy ads, you need like a super good offer or a super good story or a super like, you know what I mean?

• 24:19Speaker 01

  It's all of it. It's kind of all of it. And that, that's where like, I think this gets so difficult is people are like, you know, sometimes I see the shadow figures that are running these drop shipping companies and they're like, Grun's ads are bad. Like they're not even good. They're so like non-creative and that's because we're like a reputable company that doesn't say we can cure cancer or do these things that some of these shadow figures do. I like, that's not creative. That's just actually like bad to do as a human. Um, but like to answer your question, like it's not just like creating good, good ads. You gotta have the good offer. You've got to have the good retention. You gotta have a good product, right? You have to have a product that people actually want to take. Um, like our Amazon LTV to CAC is phenomenal. Like, and that's on a platform where we're not advertising the way that you do on Meta. We're not like, you don't have your subscription

• 25:04Speaker 01

  portal in a certain way. It's like a one click cancel button. And that's like leagues beyond what I've seen with other brands in terms of Amazon economics.

• 25:12Shaan Puri?

  D2C is one of these funny spaces. Like I, I think I DM'd you.

• 25:17Speaker 01

  I, I read our DM, Sean, uh, from like, oh man, it would, it would have been like in 2023, like three months into the business, you're asking about the landing page.

• 25:25Shaan Puri?

  Yeah. So three months into the business, I was, I think I just sent you a compliment. I was like, hey, I think your landing page is really great. Yeah. I guess the interesting thing is you were really, you were quiet, right? Cause there's this weird, um, paradox and I would call it the drop shipper's paradox, which is the sort of the louder somebody tends to be about their e-commerce success. I sort of, I sort of, um, proportionally increased my skepticism and I feel like you were very quiet and you built a killer business. And then now, once you've kind of like, you know, reached a, a big exit and a mountain top, sure, you could talk a little bit more about it. You're doing a little bit, spending a little more time. What do you think about that? What do you see when you look at it, the landscape of like people who are, are quite vocal, quite loud on, on D2C Twitter and other places?

• 26:07Speaker 01

  You know, I want to have sympathy for how others run their businesses. And so what I will say is like, I've had chats with some of these people who are louder, who are running, you know, these businesses that they, they're little shadow businesses. Like you don't know what their business is, but it's doing a hundred million of revenue or whatever. And what I've come to realize is some of these people just don't know yet that what they're doing is inappropriate, right? That the ads they're running is inappropriate, are inappropriate. They don't really understand the consequences. They're, you know, they're fist bumping their friends about the Lamborghini they just bought. And so what I would say there is like, I think it's less about how loud people are. I think it's about the natural evolution that we all go through as we learn what it

• 26:47Speaker 01

  means to be like a reputable business person, running like a clean business. And that comes with time. I happen to learn most of it through amazing brands that with the great executive teams that I learned from who are mentors and friends. And, and I think for some of these people, they're learning and it's going to take a little bit of time.

• 27:05Sam Parr?

  So from the outside, I look at you and I think, well, you seem really, I've only known you for 30 minutes. You seem very calm. You seem very well balanced. You seem like a lovely person. The success has been off the charts. And I think, well, everything's perfect. This guy's just had it all. Of course, that's not the reality. So what has, what has sucked about this journey?

• 27:24Speaker 01

  You know, it's funny, the team, we have this joke internally that I'm the chillest guy we know. And it's like, sort of kind of true. Like I am actually a pretty calm person and I think mistakes are all part of the learning. Like no business is perfect. A perfect business is one that learns quickly from the mistakes that it makes and people aren't to blame for that. What I'll say is I, you know, I could give you an example of actually like a really rough day we had on January 29th of 2024. And I'll, I can tell you a little bit about that. But I would say the hardest thing about building a business like this that folks just don't appreciate is Just how difficult it is to build a team of all-stars and more difficult than

• 28:06Speaker 01

  that unleash them, give them the space to play and run and execute according to their abilities. And that's really been our unlock is one getting amazing individuals. I think if you look at our executive team, if you look at our entire team, right, the 130 people plus of this company, I think people would be like, that is a stacked team. And they're not going anywhere. We're having a good time. Like, we've got a lot ahead of us that we want to do. And the culture here allows for them to excel in a way that they wouldn't be able to do elsewhere.

• 28:34Sam Parr?

  Can you dive deeper on that? Because people always say hire the best people and all that. And I say that too. And but it's that's, I hate when I give that advice or when I receive it, because I'm not trying to hire the worst people. Like, I am, I am trying. So what is the best people actually mean? What is, what do you look for? What attributes?

• 28:50Speaker 01

  Yeah, you know, it's so funny about this, Sam. I've heard people be like, oh, well, like, somebody could be the best for your role. And I'm like, no, no, no, there's like legit people who are the best. Like, you're probably just not able to hire them if you're saying like, well, we got the best for this, like narrowly carved out role. So when I say like, the best is what we're looking for is people who have confidence to make decisions, right? So everyone has the ability to be essentially a CEO. And frankly, I would not be surprised if we're talking five years from now. And a lot of the folks here at Grun's have started companies that are really successful because they've had that skillset, that repetition of making decisions as if they're the CEO. And so I would say that

• 29:31Speaker 01

  it comes down to just being like reps, experience, training, and whatever function, if you're a marketing person, a retention person, if you're a product person. And then the hardest part, again, and this is where I think the people listening to this who might be founders or CEOs have to check themselves is, how do you unblock these people? How do you get out of the way to ensure that everybody together is building something massive?

• 29:58Shaan Puri?

  I want to ask you about your marketing because I think you did world-class marketing. Like we said years ago, I compliment, first thing I ever said to you was, yo, nice landing page. That's the highest form of of respect I give. You, I want to actually open up here, let me screen share. I want to show you your Facebook ad library and I just want you to talk us through a sort of a 10-minute masterclass on marketing. Yeah, I want you to tell me what you see because you know, the average person will look at this. They don't really know what to take. I want you to point out what's interesting here. Let me see if I can zoom this a little bit. What's interesting here, what to notice, what to learn from that would apply to other people in their businesses, how to think about marketing, the way you guys thought about marketing.

• 30:39Speaker 01

  Yeah, I mean, the first thing I see when you go back up is like, what does it say? Poop more like what other supplement brand do you know that's like being a little bit sassy with commentary like that? Now you see it a little bit more from these brands that are like just talking about their clinicals all the time, which nothing against clinicals, like we do clinicals too. And we do, we test our product electively well beyond what's sort of required. But like, we just don't talk about it because that's not fun. It's like what I would say here is like, these are fun ads, right? This is like, if somebody sees that, they're probably laughing a little bit. Like if you scroll down, you know, we spent some time on GLP-1 as an angle. And I'm really proud the day that we decided to do this because everyone around us, and I don't spend enough time on Instagram to know,

• 31:19Speaker 01

  everyone around us is like, nature is Ozempic or like they, they'll say something like that, which is like objectively wrong. Like you're not supposed to say that. We've never taken that approach. We are, well, we would say the best friend to Ozempic, to Zepetide, Zepbound, whatever the sort of GLP-1s are.

• 31:37Shaan Puri?

  So you were able to kind of surf that wave. You were able to hijack some of the momentum of that product and position yourself not as a replacement, but as a companion.

• 31:48Sam Parr?

  Wait, why did you, why do you have an Ollie Pop? Okay.

• 31:50Speaker 01

  Well, the GLP-1's new crush ad was an Ollie Pop image on it. And so we're running a limited time offer right now with Ollie Pop.

• 32:00Shaan Puri?

  So this is.

• 32:00Sam Parr?

  It's like the flavor, it's an Ollie Pop flavor.

• 32:02Speaker 01

  Yeah, so this is. This is Gruen's, which I guess you can see right here. I'm pointing to it in the video. Maybe people are on audio, but we've got Gruen's sort of original. And then, you know, every month or two months, we do these limited time offer drops with, in this case is Ollie Pop Strawberry Vanilla Flavor. You know, the first one we did was like a Gruene Smith Apple, like Granny Smith Apple flavored. We did a Grinch Sour Grinch Punch last year in November. So we do these, this, again, back to the whole like, how do we make this fun? Like you tell me one other supplement brand that's doing like drops in, in making it actually fun to, to take the product each day.

• 32:37Shaan Puri?

  So it looks like you've got different angles. So you've got, hey, we're, we're, you know, Ozempic's best friend. You've got Poop More, you've got Nurse, you know, the nurse here who's

• 32:48Speaker 01

  Probably talking about nutrient gaps.

• 32:50Shaan Puri?

  Nurse Jackie talking about nutrients. So you have these different angles and I'm guessing that these each lead to a landing page that aligns with that message, correct? So it's like, yeah, five, six different angles, each to a tailored landing page that continues that message. And then you're, are you doing that just to experiment to find one winner? Or you're like, no, we're going to keep running five or six of these because there's just different markets of different customers who have different mindsets. And we're going to try to get all of them.

• 33:13Speaker 01

  Yeah. To, to make this super applicable for people, you should test ads in high volume. So find new angles, test all over the place, find what sticks with an eye towards being a good human, right? Don't, don't say that you like, you're going to make somebody's sex better if your product doesn't actually do that. Like actually do the science validation if your product could help with certain things. Once you've identified an angle that seems to be running, then you build the entire funnel around it. So you've got, you've got static ads that talk to that angle. You've got UGC sort of hoist the camera angle, ads that run at that. You've got like more like cinematic type shoots that run at that angle.

• 33:53Speaker 01

  Everything that you're just plowing all sorts of ad concepts to, or sorry, ad structures to that angle. From there where people land is really important. What people receive as a pop-up is really important. What people receive as email and SMS is really important. Everything is tailored to that message. So if you came in on a gut health ad, we want everything tailored to, hey, you know, Sam just expressed interest in the gut health ad. Great, then Sam's probably interested in gut health. Let's give a pop-up that helps them understand what about gut health is he interested in? That pop-up informs what messages we send on email and SMS towards Sam's expressed concern. That page is dialed for Sam's intent. And then on the back end of that, once people have purchased, this is something that we're

• 34:38Speaker 01

  trying to put into process now is how do we talk to Sam long-term? He may have started on gut health, but how would he, how do we get Sam to understand that there's so much more to this product than just gut health? And do that over time, building on sort of the foundation of why this product was that important?

• 34:53Sam Parr?

  Most everything you're saying, it's sort of like when I read the book, How to Win Friends and Influence People, I'm like, oh yeah, this is obvious, makes sense, makes sense. But the hard part is execution. And it seems like you're ruthlessly, in a kind way, executing. What's, so I'm going to ask a bunch of questions that I think you can answer in one, in one go. How many ads and landing pages per month are you putting out? And I think you only said you had a 30-person team. That seems like a lot of output for a relatively small team. Can you talk about like, who's doing the work?

• 35:24Speaker 01

  Yeah, we're probably putting out hundreds of ads a month, cycling in and out, just trying to find that next, you know, unlock. We try to create new concepts pretty consistently. So it's not just about ad volume. It's actually structured around like, how much of that is like business as usual ads that we already know, or structure, or sorry, concepts, themes that we know already work? And how much of that is like, we're trying to find new frontier of applicability? In terms of the team? You know, when Sean reached out to me in December of 2023 saying, hey, nice landing page, that was me, right? Like, I was the guy that built that landing page. We didn't use an

• 36:05Speaker 01

  agency. I think I even said that in the message because you asked. That was me from the beginning. And, you know, you see our buy box, that place where you do the add to cart, which then people ripped that over the last three years, copying that buy box. And if they only knew that random dude named Chad, who's not like an e-comm expert, you know, broadly across D to C, I know quite a bit. Like, I'm not an e-comm guy who builds these sites. The whole industry is mimicking this, this format. Yeah, it's really interesting to see that. I think people need to test around. And since then, we've found new formats that work. But talking about the team, we've got people across, we've got like three folks on the retention team who do the emails, SMS, who set up all the flows that allow for our consumers to have a good experience. So they're focused on after

• 36:49Speaker 01

  order one, what does that journey look like through order hundreds, right? We've got a large team doing paid, so creating ads, the actual creatives, we have probably four plus, maybe five or six creative strategists who actually create the ads. And then we have people who design and do the video edits. And then we have the people who actually manage the ad accounts, right? There's probably four or five of those who actually like are looking at the analytics, evaluating, passing back to the creative strategist, saying, here's what's working, iterate on that. We've got an e-comm team that's absolutely dialed. The velocity coming out of e-comm now, so landing page designs, iterations on the cart, checkout, post purchase, like all of that good stuff, we're constantly iterating on. I mean, it's so fun to see, right?

• 37:33Speaker 01

  Like, it used to be me throwing up a quick website against an ad angle. And now we've got like a full infrastructure around it.

• 37:41Sam Parr?

  Still, that's crazy. I just not seem like a lot of, that doesn't seem like a big operation for creating hundreds of millions of dollars of revenue and hundreds of ads.

• 37:49Speaker 01

  It doesn't require a lot. And I would tell people that they can do it themselves, right? You create a template in, you know, shout out to Replow is the platform that I used. And I think you can do hundreds of millions of revenue on Replow. I think it's replow.app is the website, and it's a Shopify plugin. I mean, it's such a good platform. You could just create a template. The only thing you need to swap out is like the headline, whether it says gut health or it talks about pick your other ad theme, substitute the like little blocks on the page with the new ad copy. It's like, it's not that hard. Like in a day, you can create a completely new ad funnel that is going to have incremental performance against a sort of general landing page.

• 38:27Sam Parr?

  That guy's got to clip that clip and make that net. Get ready to see your face on a Replod ad.

• 38:32Speaker 01

  Look, and I have no problem. They don't charge. I mean, I've told them before, they don't charge enough. It's stupid how much value you can get out of that. And I would say this about a lot of our platforms. They're just getting a shout out because it's relevant here.

• 38:47Sam Parr?

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

• 39:31Sam Parr?

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

• 40:18Shaan Puri?

  What do you see when you look at average marketing versus world-class marketing? What do you think if I'm somebody who's got a brand or a company and I have a landing page, I got ads, I'm doing all the things. He said, "Test creative," I'm testing creative. He said, "Test landing," I think I'm doing that. What is the most typically missing when you either advise a founder or you go look at somebody else's brand and you're like, "Oh, man, they're just not doing this one thing, these two things well enough to really jump from average or good to great?"

• 40:45Speaker 01

  Have a better product is typically what it comes down to, which is like so unhelpful because it's like you gotta cut your losses. But like a lot of the people who are trying to like find these hacks, they're doing it with like a mailed-in product. Like they like didn't, we took a year to develop our product. It's custom blends.

• 41:04Shaan Puri?

  Well, how did you know that it worked? Because a lot of times when I take vitamins, I don't necessarily know if it's working. Did you like get your blood tested a bunch?

• 41:10Speaker 01

  This is the beauty of this industry is if you go to PubMed, Pam, are you familiar with PubMed?

• 41:15Sam Parr?

  It's a public, it's a where studies are, right?

• 41:18Speaker 01

  Yeah, all the studies are published there. I mean, if you put vitamin C in your product and there's thousands of studies about what vitamin C does, sure, maybe I don't know the precise outcomes of 120-person, blind sample survey, placebo-controlled trial. But like, I can pretty much guess what the outcomes are going to be based on the thousands of other published studies against vitamin C. So to answer your question, Sam, no, I didn't. Prior to launching, I hadn't done those tests. But like, I looked through thousands of articles to land on what I believed the right formulation would be for our product. And that's also what I tested with consumers pre-launch is, what's your perception of this label? What's your perception of this mini gummies, the size of gummy,

• 42:03Speaker 01

  this flavor of gummy, all of that stuff?

• 42:05Shaan Puri?

  What's on your ideas list, but you're not gonna actually go do it? So you can riff with us here of brainstorming other brands, other ideas that you think are interesting, may not, may or may not work, but interesting.

• 42:17Sam Parr?

  Yeah, and also you mentioned that you have a Notion doc if you, if you're comfortable.

• 42:21Shaan Puri?

  If you want to pull up your bank balance, we can also just do that.

• 42:25Speaker 01

  Tell you wiring instructions too. On here's what I'll say. One thing that I that I disagree with is people say ideas aren't worth anything. Oh, man, do I disagree. I I think ideas are worth so much in the right hands. And in my hands, they're in the right hands, I believe. And every founder should believe that about themselves. Um, and so there's certain ideas I can't share because I'm like, guys, like, I legit have an idea that years from now, like, I've still got a lot I want to do with Grun's like, like, actually, there's a lot I want to do with this business. I'm not done here. But like years from now, I think there's an idea that no one else is going to be able to run it. There's a $10 billion business idea and I'm

• 43:06Sam Parr?

  You should just say it now and we'll bleep it out and we can react. Yeah, totally. Give us like a code word or something so we can, we can at least give you credit for it. Uh, years later. Hey, look, we're the wrong heads.

• 43:16Speaker 01

  When, when you see it, you'll know, you'll see it and you'll go, oh yeah, this is a bill. This is a big business idea. Um, so, and I don't think anybody's going to do that in the meantime. Uh, while I'm finishing my chapter here, uh, at Grun's and doing what I set out to do.

• 43:31Sam Parr?

  Okay, well, what, what, what are some other ideas that if in the right hands are great? That, that aren't your hands?

• 43:37Speaker 01

  I had this idea one time, it has nothing to do with consumer. Um, and I actually almost ran with it around the time I was starting Grun's and I still think it's a good idea. But I'm not going to be the one to do it, so I'm happy to share it. Right now, there is no way to direct the money that you have coming in from like direct deposit. So that direct deposit hits your checking account. And then we've all got to have the willpower to decide, oh, put 10% in savings and put this against your bills and do this over here, blah, blah, blah. What if you become the essentially the distribution layer of ACH transfers? So it hits this distribution layer and before that person has to have the willpower to decide what they're going to do with it. And this is helpful for so many people in their lives, right? It, it gets wired out to the, the rent that they have.

• 44:22Speaker 01

  It gets wired out to their car payment. It gets wired out to blank over here, over here into their investment. And so what actually hits their account that they're spending against is 500 bucks for groceries or whatever it is. And I, the technology exists to do this, right? It hasn't been structured. I, I can't remember what platform allows for it, but there's a platform that can facilitate what I just described to you. So like this idea could be done tomorrow.

• 44:45Sam Parr?

  That's a great idea. Um, even whether it's for consumer or for businesses, have you ever read the book Profit First?

• 44:51Shaan Puri?

  No. Somebody recommended on the podcast and they go, it was like the time when my girlfriend bought me the book, the game before I went to college and we were gonna break up and it's like, you need to learn how to talk to girls. And I was like, oh, thank you. It was like, it was a gift, but it was also a message. And my friend told me about this book Profit First. I think it was a gift and a message. And the message was, hey, you're running this business. I mean, you've been doing it for years, but you're not pulling out any profits and you don't know where all the money's going. It's profitable on paper, but like you're not getting money out of this. And that's a very common business owner problem. And there's this book called Profit First, which has this philosophy, which is basically you preset the budget. So what most people do is they say, I have this much revenue.

• 45:33Shaan Puri?

  Then they have all their expenses and then they, it's kind of like, surprise, whatever's left over, that's your profit. And you're usually quite disappointed with that surprise. The better way, what this guy advocates for is like, you just set a budget for your P and L. You say, oh, I'm gonna spend 25% on OpEx. I'm gonna, I need to reserve 20% for taxes, so I'm not stressed out every tax season. So I just want to put that. And you basically literally just create four separate accounts. You create a tax account, a checking account. So automatically 20% gets, goes in there and that's waiting for, it's in a, like a money market account until tax season. You have your OpEx account. And so now your team has to run on a budget. It's like, this is how much you have to spend. You don't get to just spend whatever and keep eating out of profits.

• 46:14Shaan Puri?

  And you set a profit threshold where you say, I want to have 50% profit. So it basically pre-allocates to your, as every dollar comes in, 15 cents will go to the profit bucket, 25% 25 cents will go to the OpEx bucket. And it's, it's actually kind of a life-changing idea because it forces, it forces discipline. You think you're running pretty lean until you actually have a hard cap on expenses. And then you realize like, oh, actually there was way more fat I could trim. I actually could have been this profitable yesterday. I just, I let it be an output rather than an input. But, but unfortunately, there's not an easy way to do this. A very, you have to like, set up seven accounts with your bank and then you have to tell your accountant, hey, keep doing these sweeps every two weeks.

• 46:51Sam Parr?

  Have you guys heard of Simp? Do you guys remember Simple? I loved Simple. It was really cool. I don't, I think it's gone. It got, it was one of the very first Silicon Valley. Banking. Neo banks. Company, yeah, neo banks. And it was, I don't even think neo bank was a description.

• 47:06Speaker 01

  It's like the envelope system where you like put digitally money into different envelopes.

• 47:10Sam Parr?

  Yeah. And like, I didn't, I didn't make a lot of money at the time. And I was like, but I want to like fly home to St. Louis to see my family. And so like, it's going to take me four months. And so I automatically, when it would come into my bank account, the way it would visualize it, it was still one bank account. It was like, well, this is, this is how much is left, you know, that you have 350 bucks in your uh, spending account, but you have another 400 in your vacation account. So like, don't touch that money. It was pretty cool.

• 47:34Speaker 01

  So, so Sam, the, here's what I love about this idea. And Sean, you're bringing up actually why I think this is even potentially more compelling for businesses, because if you're changing the way that the P and L works, I mean, venture capital firms want that. Because now there's more discipline around the money that they're giving.

• 47:49Sam Parr?

  Totally.

• 47:50Speaker 01

  The, the small founders who are making five million a year who want to pull 500,000 out. They want it because now it's like, oh, well, I'm forcing myself into that discipline to pull 500,000 out every year. It's like, that's a huge use case that I wasn't thinking of. In terms of personal, the problem with budgeting today is it's done. I, I grew up in a family where at the age of six, I was in Quicken. And like, I had to take every receipt, scan it, type it in, back in the, you know.

• 48:14Sam Parr?

  Your mom and dad made you do that?

• 48:16Speaker 01

  My dad taught me budgeting. Yeah.

• 48:18Sam Parr?

  That's awesome.

• 48:18Speaker 01

  And, and like, we were still against dad and everything else, but I had like, it was so, it was awesome until there was an imbalance at the end of the month. And I had to go search for the 20 cents that was off.

• 48:28Sam Parr?

  Is that like a Mormon thing? Because I've, I've, I think I've met a bunch of Mormon buddies who are very disciplined with their monthly budgeting.

• 48:35Speaker 01

  Yeah, it might be, honestly. It might be, um, something that's, I mean, there's a lot of like financial discipline in general. But, but to put, put the headline on it, to me, what I love about this idea is it solves what I think sucked about the granularity of like wasting hours a, a month, a week on like typing in all my stuff.

• 48:53Sam Parr?

  Right.

• 48:53Speaker 01

  And it also solves the other end, really, people, they get to the end of the month and it's like, and that was actually a hassle to do. Did I change any of my behaviors based on it? I don't know. And then the other end of it's like mint. Back before that got acquired or whatever. And I think the other one today is Monarch, which I like Monarch now that I have more money. It's like, it's helpful to see, but like, Monarch's not really like a proactive platform, right? It's like, I'm just like getting information.

• 49:17Shaan Puri?

  It's like, I'll tell you how bad you're doing at it versus, hey, let me just fix it for you.

• 49:22Speaker 01

  Totally.

• 49:22Shaan Puri?

  What you wanted to fix it for me, uh, solution. I really wonder whether, you know, with agents or, you know, you take the popularity of like Mercury or the kind of all the popular neo-banks that are pretty product first.

• 49:34Speaker 01

  Yeah.

• 49:34Shaan Puri?

  And they're more programmable. I wonder if either somebody could build it on top of one of those banks, or if they'll end up releasing something like this themselves.

• 49:42Speaker 01

  I think you get acquired. I, I think if you run this business, you're going to be acquired for 500 million to a billion in like two years. If you execute this right, like somebody out there listening right now, feel free to send me a DM when you do it. Like this, this idea, the infrastructure exists to be able to do this. If you execute it correctly, you, you are one, they can get massive impact in millions of people's lives. And two, you will have a financial outcome.

• 50:06Sam Parr?

  What would be cool is if in 12 months, we have to say, hey, everyone, we did this podcast with Chad here. Here's what he said. And then we aired this clip that you just said. And then we're like, here's the update. Uh, because this is, this is fantastic. This is really cool. We, we, we do this segment all the time. This is, um, this is a top tier idea.

• 50:23Shaan Puri?

  You, uh, you have a couple of quotes that you sent us or like kind of philosophies. We always ask people, what are your, what are the philosophies you live by that you think are not, not something everybody does, or not everybody believes in. You said one, one of them that I liked, you go, access is everything. And you explained how you didn't have a ton of access early on, but you know, through Summit and Stanford, like, can you explain your access is everything philosophy?

• 50:46Speaker 01

  Yeah. Um, I think access and the privilege of having access in the world is something that when you don't have it, surround yourself with people who do and do good work for them. And you will get access every time. And then when you do have it, like the privilege I now have, I see it as your obligation, my obligation to give that back to others.

• 51:05Shaan Puri?

  So explain what you, what you mean by access. What's the personal story where, where this kind of resonates?

• 51:10Speaker 01

  Yeah. You know, like, I'm a dude named Chad. I, I worked in private equity. What you see today would not have existed without people leaning in and giving me access every time incrementally and me doing good work for them. So like if you go back, I mean, I was always curious on this because I think you get asked in those questionnaires like, are you, are you middle income, high income, low income? And like, I was aware of sort of wealth. But if I looked at sort of the income that my parents had and I have seven, there's seven of us kids, so six siblings. And our income, I think I was like bottom, middle class is like how it was defined. And I'm not saying that from a standpoint of like ashamed, like I'm grateful

• 51:49Speaker 01

  to have lived in this area and seen these people because I think you can solve a lot by just giving awareness to kids about what's possible. It's like the grasshopper moment. Once they know, it's like, oh, now you can go get it. So I get, I was recruiting for the big three consulting, McKinsey, BCG, Bain. Through a contact who put me in touch. I didn't get it, but I landed through another mentor, this gig at Lazard. I did really good work and Lazard's an investment bank. So in New York City, one of the top premier investment banks, working on mergers and acquisitions. That mentor, I'm still close to him, I went and visited him, right? So he gave me access and that access then landed me at Summit Partners.

• 52:29Speaker 01

  At Summit Partners, I did phenomenal work for them. I deployed, I literally invested like 30% of that fund. A $5 billion fund, like I invested that, I sourced the deals that made them the money behind that. I did really good work. And there's this moment when I got into Stanford, that I was like, oh man, like, should I feel bad? Because I know how this works. Like, I only got in. Like, yeah, I've had a ton of accomplishments. I had a 3.95 GPA, I've worked at great places, but it's white dude named Chad, like, should I feel bad about this? So I got into Stanford and what I came to appreciate is like, no, I shouldn't feel bad, knowing that the reason why I got in is because, you know, two people who are very close to the Stanford folks sent a text and a nice letter of recommendation for me. I shouldn't feel bad about that because they're not just doing that.

• 53:15Speaker 01

  Right? They're doing that because I did good work for them. I made their lives easier. I earned their trust. And so maybe I wasn't born into that access where my dad can send a text to Stanford and say, let my son in. But you can earn that by doing good work for the people who do have that access. And they're so eager to help you have that sort of accomplishment. So that's how I think about access. And it's part of when, you know, I got asked recently, like, what's your legacy that you want to leave on the world? And I'm like, you know, like 33 years old. But the way I think about it is like, I want to give that that access that I've sort of like, either been granted or earned over the last many years. And I want to ensure that more people have access to that, who spend their lives working with me and putting good work.

• 53:58Sam Parr?

  Dude, you're awesome. You are so cool. I think that when I was younger, I met this really successful guy named Scott Belsky, who was the chief product officer of Adobe and an amazing entrepreneur, maybe a billionaire. And he used this word with me that I'd never heard before, this idea, he used, he said, I'm going to invest in you and you need to be a steward of my capital. And I was like, I don't know, what is that word steward? I'd never heard of that. It's just like this idea that you need to be the vehicle that protects and passes on like, a little bit of greatness. That's kind of how I interpreted it. And you are that person. So my friend, Austin Reeve, do you know Austin Reeve?

• 54:36Speaker 01

  He's the, one of the Morning Brew.

• 54:39Sam Parr?

  Yeah. So he started and sold the company for hundreds of millions of dollars when he was 30 years old. He was texting me about this new idea that he was working on or brainstorming. And I was like, do you think it's going to be successful? He goes, it can be successful if I want it to be. And I love that because what you and him both said something very similar. You have this similar mindset. But I find myself being around him and people like you, and it's contagious.

• 55:04Speaker 01

  Yeah, you know, I've thought about whether I should be. I've tried to figure out whether my impact on the world is more narrowly focused on the people who spend hours, thousands of hours with me, working inside of groups, or if I should have more of an impact publicly, trying to relay some of this message. It's hard, though, you know, like to relay all of this, these experiences that I've had in a public forum that allows for millions to learn. But you're totally right, Sam. Like, at the end of the day, why was I able to build what I built? It's because I knew it was possible, right? Like, I saw it done many, many times by others. And if I ever had a question, I could go ping those people. And so, network, experiences, awareness of what's possible.

• 55:47Shaan Puri?

  I think there's a, maybe a different way to say what you just said. You know, the way you just said it was kind of like, hey, I was pretty fortunate that these things happened, and I did my part, but they did their part. This happens a lot with entrepreneurs, is we sort of stumble and fumble our way to success. Then afterwards, you can actually look back and realize, like, oh, it wasn't complete random. It wasn't complete chance. And in fact, you could recreate the conditions of success more reliably, knowing what I know now. And so, I would just point to three words that you just said. The first one is exposure. You really can't imagine what you've never seen. Your brain won't go anywhere if you don't have any exposure to things. I was talking about this with Ben, my business partner, about my kids. I said, my kids have never been exposed to so much in the world,

• 56:32Shaan Puri?

  right? Like, we literally keep going to the same resorts. And I was like, they've never seen a third world country. They've never seen... I started bringing them to just do adult stuff with me, because I used to do kid stuff with my kids. And now what I realize is, let me just bring them along for life. And kids actually love it. They like doing laundry. They like cooking. They work out with me now in the gym every day. They like going with me to meetings. They like, you know, they actually kind of enjoy that, because they're getting exposed to new stimulus that they've never really seen before. And even if they're five years old and they can't fully grok it, there's some part of it that just breaks some fence that they had around what the world is, and it starts to poke holes, and it lets new things in. Growing up, I didn't know any entrepreneurs. I didn't know anyone.

• 57:15Shaan Puri?

  In my entire family, my mom has nine siblings, my dad has four. Out of all of them, there were zero entrepreneurs. Every single one of them was an engineer, like typical Indian family. And so the highest calling was you get a good job. What's a good job? A six-figure job that has health insurance. So that was all I knew. I was always exposed to if what was possible. And then my senior year of college, I took a class called Getting Rich. And in the very first class, she brought in a speaker and there was a girl who started a T-shirt company. And then the next class, she brought in a guy who started his own hedge fund. And I just thought, oh, I looked at them and I said, why are these guys having all the fun? This sounds awesome. Maybe I could do that instead. I was finally exposed to the thing, you know, when I was 21 years old and it changed the trajectory of my life. Had I not had the exposure, it literally would have just not happened. And so the first is exposure.

• 58:00Shaan Puri?

  How do you get yourself in a position to see new things or help other people see new things? The second is access. And then you, the way I would put it for you is earned access. Cause you said something very casual. You're like, I did good work for them. You know what? I bet if we peeled back, there probably is a lot there. I bet you overdelivered. I bet you didn't get paid proportional to what you did and you didn't whine about it. These are my guesses. You tell me if that's true or not, but the access is earned through showing that you're somebody who deserves greater opportunities and greater access. And you sort of delay the payoff of those actions and you just have faith that I'm gonna just, I'm gonna kill it right now. And I trust that, you know, the ball will bounce my way over time. And I don't need to immediately tit for tat, measure what I'm getting versus what I'm putting in.

• 58:44Speaker 01

  Yeah, I think, I think it's true. And frankly, I think, you know, I'm young, I'm 33 years old. I think about the impact I want to have on this world. I think it's that first one, exposure. How can I facilitate exposure to everyone, right? Young, young kids, how do they get exposure? That honestly, I think that's where my wife and I want to make an impact is making it possible through some, some effort in the next chapter of my life to ensure that the random kid who's six years old or 10 years old in a place that would never get exposure to this, at least knows what's possible because if they know it's possible, maybe they'll go after it themselves over time.

• 59:21Sam Parr?

  Hey, can I, let me ask you a question that you might not feel comfortable answering. When you're wired hundreds of millions of dollars, what do you, what do you decide to do with it? Where did you invest the money? And that includes like, did you decide to give any away?

• 59:34Speaker 01

  Yeah, TBD on it, but I, one of the hardest things I have is I've thought about my, my impact. Like it's the same as, I don't even know if I'll invest in other companies. And it's not because I don't believe it's like, what's the next best use of a dollar? It's gonna, it's gonna take a lot to convince me that it's something other than what I can go after and do. And that doesn't mean it's always business profit centered. Like, I don't always have to make money. Like, can I, Sam, go out and make, make an impact on the world by taking my own funds and building like something special out of it, right? That has an impact on whether it's mentorship, exposure, or whatever it is. So TBD, I mean, as you

• 1:00:16Speaker 01

  know, when, when you receive money, you spend a lot of time thinking about deploying and you don't want to rush into anything. But, but I would expect that the more meaningful deployment of my capital is going to come through some personal effort in my life that I do to, to make an impact.

• 1:00:33Sam Parr?

  So, well, first of all, can we, let me ask a boring question. Where'd you invest it? The, the current money, where'd you invest? Is it just boring index funds? Is it?

• 1:00:39Speaker 01

  Well, you, you know, I, there's a difference between signing and closing. So you have to go through anti-regulatory. So we've signed, but the closing happens as soon as it's been approved by government.

• 1:00:50Sam Parr?

  So you don't have a yet?

• 1:00:51Speaker 01

  The money hasn't, the money's not been wired yet, but the deal's signed.

• 1:00:53Sam Parr?

  I don't know what that, I, I've not had a deal that was larger.

• 1:00:55Shaan Puri?

  There's a threshold.

• 1:00:56Sam Parr?

  Yeah.

• 1:00:57Shaan Puri?

  My first acquisition, they just Venmo'd me.

• 1:00:59Sam Parr?

  Yeah, we've not, I've not, I've not dealt with the, with the Department of Justice yet. So that's pretty cool.

• 1:01:07Speaker 01

  Ah, it's funny.

• 1:01:09Shaan Puri?

  Yeah, there's a crazy, there's a crazy story. You know the company AppLovin?

• 1:01:12Speaker 01

  Yeah, yeah.

• 1:01:13Shaan Puri?

  Yeah, my, my co-founder was the co-founder of AppLovin at the time. So he's sitting next to me at the office and they'd signed this deal. And I'm like, oh my God, you just sold, they sold the company for, I think, 1.2 or $2 billion. I forgot which, what the number was, but $1 or $2 billion. And I was like, wow, dude, you did it. You sold a company for $1 billion, $2 billion. That's amazing. And I was like, should we go, dinner's on you? What's up? He's like, dude, we haven't got the money. It's gonna be like months. He's like, if it's over, I forgot what the number is, 750 million, a billion dollars, whatever it is. Like, literally, like, the government, you know, the way he put it was like, it's gonna sit on Trump's desk until he stamps it. The crazy thing was they sold to a Chinese company. So there was actually a lot of risk. And so he didn't know this at the time. He thought, you know, it's over.

• 1:01:53Shaan Puri?

  Well, nine months go by, a year almost goes by, and the deal is still not approved. But they've been running the company. They've doubled revenue in that year.

• 1:02:02Speaker 01

  Yeah.

• 1:02:03Shaan Puri?

  And so instead of waiting for the approval, what they did was they went and renegotiated. They were like, hey, here's what the $2 billion gets you instead. And now it gets you 25% of the company instead of whatever, 85, 100%. So they renegotiated the deal because the business had grown. So it was the best thing that ever happened. And so they took a minority investment, got some liquidity, it kept growing the thing. It's now, it was a $100 billion company in the last, last year. Right? So it went 100X since then.

• 1:02:27Sam Parr?

  A quick Google, so I haven't had time to read all this. I believe it's $130 million is the threshold where the DOJ has to.

• 1:02:34Speaker 01

  Interesting.

• 1:02:35Shaan Puri?

  130?

• 1:02:36Sam Parr?

  You have to notify the DOJ and the FTC, anything north of $133.9 million.

• 1:02:43Shaan Puri?

  Dear DOJ, I'm rich. What do you notify?

• 1:02:47Speaker 01

  There's like an official form and then they, they're just reviewing it as they should to make sure that it's not bad for the consumer.

• 1:02:54Shaan Puri?

  Dude, that's cool.

• 1:02:54Sam Parr?

  That's awesome.

• 1:02:55Shaan Puri?

  Thanks for coming on, man, and congrats again on, on building something pretty epic. I remember when I saw the product, it just seemed like, oh, that's it. I mean, the best products actually are simple like that where the proposition is easy for the customer to understand. It makes sense in the world. It was almost like hidden in plain sight, I feel, in a way. And, you know, to your credit, you, you ran with that, you acted on it and you, you built something pretty incredible.

• 1:03:21Speaker 01

  Of course. And thank you for having me on. My hope is that three years from now, we're talking and you guys are like, geez, dude, we didn't realize there was that much ahead of you. We've got so much this team wants to do and so eager to, to show the consumers what we've got for them. New products, new innovations, new fun, limited time offers.

• 1:03:39Shaan Puri?

  What's the best thing on that shelf I should buy?

• 1:03:41Speaker 01

  Um, so have you tried the Holly Pop? We've got some products here that are launching soon, but have you tried the Holly Pop? That's actually really delicious.

• 1:03:47Shaan Puri?

  I've only ever had the original. I didn't even try anything else. I just got the original like subscription.

• 1:03:51Speaker 01

  So yeah, you, you may know this, but we've got Grooves, which is the comprehensive nutrition greens, multivitamin, fiber. We've got Nutrups, which is a Nutraceuticals product. We've got Immune, which is like a, almost like an immunity shot, like the two ounce bottles, but in gummy form. And then we've got Juiced, which is this one right here, which is like a pre anything energy product. So, I mean, we've got like 12 innovations in the pipeline. That's what I'm saying, like. It's so exciting. We've like done something so big, but like we're like maybe five miles into a marathon.

• 1:04:22Shaan Puri?

  Good, man. Thank you so much for coming on. You have an open invite whenever you want. You're, you're, you're a wonderful guy. We're, we're so happy for your success and it feels, makes us feel good to promote you. So thank you for coming on. That's it. That's a pod.

• 1:04:33Speaker 03

  I feel like I could rule the world. I know I could be what I want to. I put my all in it like no days off. On the road, let's travel, never looking back.

• 1:04:45Shaan Puri?

  Hey, let's take a quick break to tell you about our sponsor. It is a podcast that we want you to check out. It's called D to C Pod. It's hosted by Ramon Barrios and Blaine Bolus. And this is a podcast about all things direct to consumer, D to C. It's e-commerce stores. It's how you optimize your brand and they're talking with founders, marketers and the platform creators about all kinds of things that you need to know for D to C, you know, website conversion, paid ads, Facebook ads, consumer trends, email marketing. If you want to know the stories behind your favorite brands, this podcast is for you. So check it out. Listen to D to C Pod wherever you get your podcasts.