AI transcript
0:00:05 All right Sam in the next hour. I am going to flood you with business ideas
0:00:11 I am going to create an absolute lunchroom food fight slinging business ideas at you
0:00:15 You were gonna be drenched and covered with ideas. Are you prepared for this?
0:00:27 Great analogy the lunchroom one did you just make that up?
0:00:33 Yeah, that was very good. I’m by the way all of these ideas very half baked came to me
0:00:35 You know, I would say 75% of them
0:00:41 I thought of this morning because we had a guest cancel and we said let’s record anyways and how about we do some business ideas
0:00:45 Let’s give the people what they want ’tis the season of giving and we’re gonna give the people what they want
0:00:52 Which is fun business ideas. Well the first one you actually have a lot of intel on right you have to use this
0:00:58 The first one I have some bets. I have some bets on horses and those horses are currently paying out
0:01:03 And I haven’t been talking too much about it, but I think it’s time so
0:01:06 Tick-tock let’s talk about tick-tock
0:01:11 Tick-tock right now if you open up your phone do you have tick-tock on your phone? No
0:01:17 Okay, for some of you you might have trouble opening the app because there might just be millions of dollars jammed in the app
0:01:21 And it’s a little bit like stuck so it might be hard to open up because there was so much money
0:01:28 Available in tick-tock right now. Do you use tick-tock as a user? Of course. I’m a tick-tock addict
0:01:33 Oh, that’s why I don’t use it. I had it and I deleted it. I I love tick-tock. I have a lot of fun on it
0:01:37 But I also have a couple of business bets that are doing really well in this space
0:01:40 And I think right now people are sleeping on it when you say
0:01:45 Business bets do you mean things that you own or investments of other people? I own
0:01:51 Equity and companies that are doing this. That’s what I’m asking. Okay, so you invested in companies that are doing this not
0:01:56 Something you fully own and are operating because because I’m trying to operate anything at this point
0:01:59 Yeah, cuz that like insight is a little bit different. Yeah, yeah
0:02:05 But these are all like there is something in between so there’s like angel investing which is right to check sort of passive
0:02:07 You’re on the outside. I would say you’re on the other side of the fence
0:02:15 They lob you updates over the fence and then there’s things where you own, you know, 10 20 30 40% of the company and you’re active
0:02:19 You’re more actively in the loop. You’re not active day-to-day with your hands, but you’re active with your ears in your mouth
0:02:25 All right, so anyways right now on tick-tock tick-tock today is a little bit like Facebook was maybe
0:02:29 2012 to 2014
0:02:32 and if you remember you at that time were working out of a place called Founders Dojo and
0:02:41 There was a guy who used to work there named Moisa Lee and Moisa Lee today is more famous because he started a brand called native deodorant
0:02:47 You want to give the like two seconds of what he was like being at the Founders Dojo when he was creating native
0:02:50 Basically, it was this guy who went to Harvard Harvard law
0:02:58 I think and so he was like clearly smart and he had a small e-com startup that he sold for like four million dollars or something like that
0:03:04 So very promising but still like, well, you know, he was young and he’s like, what am I gonna do in the Founders Dojo?
0:03:07 Which was like my little 10 person office that I shared with some other guys
0:03:10 He was looking for something to sell he thought mattresses
0:03:15 He thought a few other things eventually he landed on deodorant and right in front of us literally every day
0:03:18 He learned how to use Facebook ads and in a very short amount of time
0:03:22 Scaled his deodorant business from zero to just an idea to
0:03:29 Something like 30 or 40 million in revenue in literally 18 months eventually sold it for a hundred million dollars in cash in like 24 months
0:03:31 All right in front of us. Yeah, two and a half years end-to-end
0:03:38 From time of start to time of exit a hundred million dollars sold to partner. Okay. So why did he do that one?
0:03:45 He picked a interesting category, but he was doing something that not every not a lot of other Harvard graduates smart people were doing and
0:03:49 At that time on Facebook you could get traffic for very cheap
0:03:53 You could get sales for very cheap and he was able to build up a consumer base at the right place at the right time
0:03:58 Basically, by the way, I saw his sheet. We wrote an article on it and he like sent it to me
0:04:04 I think he was spending four dollars and the each customer who we spent four dollars to acquire was then spending
0:04:08 14 dollars with him. I believe that was the numbers. So it’s like a money-making machine
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0:04:39 Okay, yeah, I’m not sure of the math, but it was something like that
0:04:43 It was sort of like, you know, four to one five to one six to one payout on on every dollar
0:04:46 Okay, so which is very hard to achieve today today. Yeah, you know
0:04:51 1.5 is the new four to one right? So basically you put in a dollar you get a dollar fifty
0:04:55 Oh that that same machine used to give you four dollars for every dollar man. Those are the good old days
0:05:00 Well, the good old days are right now on tiktok and so what’s actually happening?
0:05:06 So here’s the breakdown of how this actually works. So you create a product of whatever type could be digital could be physical
0:05:11 Great product. Now. I want you to look at something go down on our sheet
0:05:17 There is on page for there’s an info graphic and it’s from a brand called goalie
0:05:20 You know what goalie is it’s apple cider vinegar gummies
0:05:27 So they just sell gummies like gummy vitamins, but specifically ACV apple cider vinegar, which was kind of like a health wellness trend and craze
0:05:31 Now goalie dude first of all you could put anything in a gummy
0:05:38 I guess like in it like it started with weed understood then like I do creatine that way now
0:05:42 You could do the last thing that I thought you could possibly do in a gummy which is vinegar
0:05:47 Yeah, yeah, and actually if you drink apple cider vinegar tastes horrible the goalie gummies tastes great
0:05:50 It’s like, you know, it’s apple cider vinegar without the pain
0:05:55 Okay, so goalie itself was a business that grew like crazy from zero to hundreds of millions in revenue
0:05:57 I think they ran into financial trouble
0:05:59 They think they had to sell bankruptcy something like that
0:06:02 They were like they got way out of their skis the group that bought it has basically
0:06:06 Restarted it and one of the main things that they’re doing is this tick tock creator
0:06:12 Method that I’m talking about so look at this info graphic. This is a rewards program for tick tock creator
0:06:15 So if you’re a tick tock creator, not only do you get a little kickback on what you sell?
0:06:22 But if every month you hit a certain sales target, you can get something so low tier, you know 1500 GMV
0:06:28 You can get an iPad. All right, cool 4,000 GMV meaning you sell $4,000 worth of product. You get an iPhone. All right
0:06:30 Let’s keep going up
0:06:33 15,000 in GMV you get an all-inclusive trip to Aruba
0:06:41 50,000 you get a Rolex – and more you get the Aruba trip the iPad and you get the Rolex right there stacking
0:06:44 And now let’s go to the high tiers. There are people that have done a million dollars
0:06:51 They get a condo in Miami if you do a million dollars. I think this is in a month of your GMV target
0:06:56 It’s a they’re going to creators to say hey, do you want this condo in Miami? It could be yours
0:07:00 So creators is one way that you can make money on tick tock
0:07:05 So you don’t even have to do the brand or service you could just say I am going to sit here and figure out how
0:07:07 The fuck to sell
0:07:13 Apple cider vinegar gummies and if you get a month if you get a million they give you a Lamborghini
0:07:18 Yeah, oh my god, and there’s people who have achieved these targets. Okay, so this is their program right now
0:07:22 So this is who you’re competing against if you’re going and trying to recruit these creators
0:07:25 It’s like you’re a division one college basketball program
0:07:29 And you’re trying to go get McDonald’s all-americans to come play at your program like there are guys
0:07:33 It’s like oh man, there’s this kid in Wichita. This guy’s just a creative genius
0:07:37 He’s he just sits in his bedroom and he just figures out the best hooks the best angles and
0:07:43 Brands are putting them on retainer 10 20 30 thousand dollars a month in order to get this guy to create for them
0:07:48 This is what’s happening right now in the creator space. How many views do the big videos have?
0:07:52 I mean millions tens of millions of views they can get they can get like a million likes on a video
0:07:55 So you get a million likes you might have had five million views or six million views
0:08:00 This is crazy. Like there’s a guy dressed up in scrubs talking about it
0:08:05 I have no idea if he’s actually works in the medical industry, but because he’s wearing scrubs. I’m like all right
0:08:07 I’m what do you what do you got to say? Okay, so?
0:08:09 Golly did this grew Nanda
0:08:15 Teeth whitening. Are you familiar with this? I think the teeth whitening area is
0:08:20 Full of scammers and I think that you are not a scammer for using tiktok shop
0:08:25 But I think a lot of these scammers use this shit this like tiktok thing like this way
0:08:29 And so it doesn’t surprise me that a teeth whitening company would be using it
0:08:32 I’m not by the way. I’m not saying these guys are scammers at all, but you know what I mean
0:08:37 Yeah, but I’m also not saying that right no no no no I have no idea about this brand
0:08:42 But I know I’ve seen a lot of like bullshit teeth whitening companies and I like like it in the research
0:08:46 I’m like, oh, this does nothing. Yeah, I don’t know the effectiveness of any of these things
0:08:48 All I know is that these they’re selling a lot of product
0:08:50 I think the guru Nanda teeth whitening is the number one
0:08:56 selling product on all of tiktok and tiktok is the number like kind of the most used app in
0:09:02 The country basically right so you have this like top selling product on the top selling network
0:09:07 It’s pretty insane. And so if they’re the top on tiktok, how much revenue do you think they do? I?
0:09:11 Have tried to back into this. I don’t I don’t know the exact
0:09:15 I don’t want to say a number that’s gonna be way off on this like would it be crazy to say like five million bucks a month
0:09:19 I don’t think that would be crazy. No, okay. Let me put it that way
0:09:24 The brands that are doing this strategy well are doing really well and you and the by the way
0:09:28 This creates a halo effect right so you you sell the products directly off that one video
0:09:33 But then people hear about it and then when they see their ad the ad performs better because I’ve heard about this product before
0:09:34 Oh, yeah, I’ve seen ten ten videos about this product
0:09:38 So now when you put the paid ad in front of me those ten organic impressions
0:09:43 Paid off or I go search for it on Amazon Amazon then takes that signal and says wow
0:09:47 People really are searching for this name. Maybe we should surface it higher or Google says wave
0:09:52 We should surface this higher people are searching for this keyword brand so with that product category
0:09:54 So in that product category give it more rank
0:09:56 So there’s this multiple of multiplier effect of this
0:10:00 I have to imagine this is fairly mainstream though because
0:10:06 Marketers are like piranhas like when there’s like flesh in the water like they all like one person tells one person
0:10:12 And they all flock to it and they eventually ruin it so how much life does this still have and how mainstream is this amongst brands?
0:10:16 Let’s say it’s in the red zone still so basically
0:10:22 It’s not as good as when I first discovered it and I didn’t want to talk about on the pod because it’s too good
0:10:26 Right like when something’s just like absolute gangbusters right and unfair advantage
0:10:28 You feel like you know a secret nobody else knows
0:10:30 It’s not there
0:10:33 However, more importantly, it’s still in a spot where you can go do this today
0:10:35 It would still work if you just go and do this today
0:10:39 So still works, but you’re not the only one doing it right both both are true
0:10:48 I have you and like ten other friends in the ecom world and every business they complained about a variety of things with software
0:10:49 It’s churned whatever
0:10:54 With ecom the complaint oftentimes is cashflow and inventory. You’re saying huge numbers
0:10:57 Let’s say hypothetically five million a month sixty million dollars a year
0:11:02 But is that actually a good business when you’re doing this or is this one of those things that if you get big you still are broke
0:11:05 Look, if you’re bad at business, you’ll find a way to lose money in any business
0:11:12 Even the goalie example I gave you right hundreds of millions of dollars and basically went bankrupt along the way
0:11:16 So there are ways to lose to just not defeat from the jaws of victory
0:11:23 There are also people that are absolutely printing profitably with this and so I’ve seen but I’ve seen both examples
0:11:24 I don’t think it’s about the model
0:11:29 I think it’s about how well you actually run your business and how much common sense you use one of the great things about this from a
0:11:33 Cash flow perspective is normal ecom business you put up the money for the ad
0:11:39 You put up the capital at risk in order to get users with this you only put up free product at risk
0:11:43 So you send inventory to the affiliates the affiliates create the content
0:11:47 You pay nothing for that ad until it does sale is generated dude
0:11:49 So if you’re a digital product you crush it here
0:11:54 Exactly, so I have a couple of examples of digital products as well in my list. So okay, here we go
0:11:56 that’s a long set up for
0:12:03 Five ideas that I think you could take on to tiktok a crush with right now number one
0:12:04 So I want you to watch this video
0:12:08 It’s a go scroll down and look at this link that says Botox
0:12:13 So the video starts says face taping is my jam and then the other podcast goes tell me about this and she goes if you had
0:12:19 Told me 14 months ago that I would not be doing Botox and I would be taping my face instead
0:12:23 I would have said you’re effing out of your mind and so that what a hook, right?
0:12:28 So the girls basically saying I used to boat use Botox and now I use this and
0:12:31 I would have thought this is crazy and then the other girls like tell me more
0:12:34 So this video itself has a quarter million likes
0:12:38 How many views is this by the way they have it so usually it’s like bros
0:12:42 It’s dudes like disgusting stuff in a podcast setting that that becomes like the meme
0:12:47 This is like two pretty women. Is this even a real podcast or this one is a lot of people fake these
0:12:55 Podcasts so that video has five five point four million views. Okay, so and they’re not selling a product to be clear a lot
0:13:01 I mean look at the comments every single comment is what’s the brand anyone know the brand because she says there’s this Japanese
0:13:03 Face tape and then you say
0:13:08 Japanese face tape versus just face tape already elevated and
0:13:13 Everybody’s asking for the brand nobody knows what the heck’s going on tell people are criticizing. It’s a polarizing thing
0:13:16 It’s a visual thing. These are good things when you want to sell on tiktok
0:13:24 So idea one is Botox face tape. I think you can make $50 million in top-line revenue. I’ll say
0:13:30 15% margins. So, you know, whatever that comes out to in the next 18 months
0:13:34 Okay, okay, let’s be more conservative of 24 months if you hit this well
0:13:36 So you can make you know seven and a half million dollars profit
0:13:41 you could build a brand because there’s a lot if you look at the market, there’s a lot of people that are
0:13:44 On tiktok that obviously care what they look like aka everybody
0:13:51 There’s a lot of people who are Botox curious but never gonna pull the trigger because it’s either too expensive like individual Botox treatments are like
0:13:53 thousands of dollars or
0:13:59 They just feel like it’s too extreme and they’re crossing that threshold into plastic surgery and they don’t want to do it for that reason
0:14:03 Maybe some maybe they’ll be judged. Maybe self-respect. Maybe they have to go somewhere. It’s uncomfortable
0:14:04 It’s like hymns, right?
0:14:07 This is a bunch of various reasons why you wouldn’t do it dude
0:14:11 I looked up if this works on chat GBT the answer is no
0:14:13 Who knows right?
0:14:20 It’s like one of these things right like I don’t do those little do those little like fate Jade face rollers work
0:14:25 You know do this putting cucumber slices on your eyes and I’m doing this like already came on here the other day
0:14:29 I was like are you’re glowing? She’s like I did a chemical peel and I was like, I don’t know what that is
0:14:32 Tell me more. There’s a whole world of beauty treatments that like have some
0:14:39 On the spectrum of effectiveness and cost they you know, they land somewhere. All I’m saying is that I think this could work
0:14:43 I don’t know if red light therapy is gonna change your skin in your hair, but you know
0:14:47 It’s it’s selling and this is kind of my point right now. I’m not a doctor. I can’t make health claims
0:14:49 I have a friend who is
0:14:52 When is a doctor and anyway?
0:14:57 She does Botox for people and she was at my house and she had her kit with her and she was like
0:15:00 I need to like test this out and we were like did you get Botox curious?
0:15:03 I was like look at her. I was like whip that whip that sucker out baby
0:15:08 Let’s do this and so she gave me a little injection like six weeks ago. Where?
0:15:10 In my forehead
0:15:13 Like like I was like, you know, I was like, I don’t even know if I want to do this
0:15:18 But like I’m a guinea pig, you know, you got a needle you got drugs like I’m gonna try
0:15:20 I would love to hear this excuse you’re about to make right now
0:15:22 You’re like I like science and I just thought you know
0:15:25 I wanted to be a supportive friend of hers and I want it’s more small businesses
0:15:29 What are your other reasons that you did Botox? Tell me just a list of Sam’s reasons
0:15:36 Besides I wanted to look better. Go ahead looking dope naked. I mean there’s like that’s the only reason why anyone does anything
0:15:38 right
0:15:41 But it was I got so many compliments afterwards
0:15:45 Yes, I got so many compliments and it was free your forehead
0:15:50 They can someone says you look really young people get me saying I looked young and I was like
0:15:55 It made me self-conscious on how I used to look like and did your hook
0:16:01 Have you ever you would never do that? You’re not into that. No dude. Come on. Would you what would you say if your wife wanted to do it?
0:16:02 I
0:16:03 Think my wife does want to do it
0:16:10 But she’s in that that boat where she’s like, I don’t really want to do it, but I wanted to I’m curious like it’s the same
0:16:13 I bet you if somebody was at the house and had the kit and was like, yeah, I can do it right now
0:16:17 I think she would be like you and I think her forehead would start looking yeah
0:16:21 Smooth or whatever it does. Yeah, like she was right here. And I was like, yeah
0:16:25 I mean if the needle is right there like just stick it in me like let’s let’s do the damn thing
0:16:27 So I’m into Taco Bell right now
0:16:34 If it brings it to me, I wouldn’t not eat it if it’s there. So yeah, I guess you could say I’m Botox curious
0:16:45 All right, what’s the next one all right next one another one of the beauty space and a theme here beauty things are
0:16:49 Tap into a core human desire. They are visual by nature
0:16:54 They can have before and afters and they obviously are you know high-margin great businesses when you could build them
0:17:00 and so I want to take anything that worked in the D to C in the in the prior waves of
0:17:06 Ecommerce and I want to see if I can build a tiktok native distribution strategy around it
0:17:09 That’s a lot of fancy words to say if it worked with Facebook ads
0:17:13 I’m gonna see if it worked with tiktok videos. Okay, so one of the big winners
0:17:17 I think she spoke at your conference was yeah, I’m the best and read dude
0:17:20 There’s a location right on the street from my house. I think they do really well
0:17:24 Yeah, so Madison Reed is built a real empire around hair color and I don’t know the full story
0:17:27 But basically, you know hair color is not a new idea. They exist
0:17:31 You know, there were many brands that existed my mom has been buying this ever since those little kid
0:17:34 You know, she would go to Target and buy you know dark brown
0:17:38 She didn’t want graying hair or shoot in my sister if she wanted to try it damn
0:17:41 We’re gonna do your mom like that. Oh dude, I do it if I’m great up
0:17:44 You don’t think my mom’s great up like obviously obviously and so, you know
0:17:48 My sister would if she wanted to try having lighter hair for a season whatever go buy hair color
0:17:53 So Madison Reed basically built a you don’t kind of online first distribution strategy
0:17:56 So a bunch of Facebook ads had built a huge brand in this space. I think Madison Reed
0:18:02 I don’t know what they’re worth, but I would not be surprised. I just looked it up top line revenue grew 20% last year to
0:18:10 150 million dollars in revenue. Yeah, so the valuation something like 500 million plus so huge success
0:18:17 I think you could do a new Madison Reed on tiktok. I think that’s just a bet worth taking which is same idea
0:18:20 Maybe you have some new novel angle. Maybe it’s that it’s easier to apply
0:18:25 Maybe it’s that it’s less messy in your cleanup. Maybe it’s less harsh chemicals
0:18:30 so it doesn’t damage your hair the same amount whatever come up with your your reason why this is new and
0:18:36 Build the brand off of tiktok and I think you could do this again with creators who are gonna
0:18:43 Use the product show the customers build trust build your brand get people searching for your brand because there’s not
0:18:47 There’s always gonna be a new wave of people who are interested in this, right?
0:18:50 So there’s either people who are whose hair is starting to gray
0:18:54 There’s always gonna be a new generation. And so whatever the old whatever
0:19:01 Whatever media they you consume is where you need to be in order to sell that right like remember like touch of gray or whatever like men’s
0:19:06 Whatever the men’s hair color one, you know, they did it on TV ads and the Madison Reed did it with Facebook ads
0:19:11 Whatever the next generation is they’re probably gonna get sold to over tiktok and Instagram reels
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0:20:07 And you know, it’s funny is you said there’s a new generation that wants to stuff
0:20:11 But you know, it has not changed and will always be the same is the hooks that worked in
0:20:19 1910 will still work today. So for example, there’s this Wall Street Journal ad that tells the story of two young men one young man when they both
0:20:24 When they both graduated college one young man got a Wall Street Journal subscription and because of that
0:20:27 He got a better career or whatever and they tell us a story
0:20:35 There are so many ads that replicate that story or that idea successfully because if you Google like best Wall Street Journal ad of
0:20:39 All time they cite that ad and so what I like to do is
0:20:48 Find old ads from as late as the 30s the 40s like it could be like print magazine ads and just see like what’s like an interesting line
0:20:52 Yeah, what’s like the human nature vibe of this and just rip it
0:20:59 So like for example, there’s this one very famous ad where it says they laughed at me sit when I sat down
0:21:01 But then when I started to play the piano
0:21:07 Dot-dot-dot and that’s called the curiosity gap, which is do you remember the brand, you know, uh buzzfeed and then
0:21:09 What was the other one called upward?
0:21:15 It was like it was like, uh, you know 10 reasons why blank. You’re not gonna believe number seven
0:21:20 That’s the same hook as that piano ad and so it’s really fun to find old ads and feel like what’s the
0:21:25 Human nature element of this and just replicate it on tiktok. Exactly. Exactly. Great way to find hooks
0:21:30 Okay, here’s an here’s a different uh different category. So I did beauty. Let me give you a different one
0:21:37 Self-help. So one of the top-selling products in the last year is something called the shadow work journal. Have you heard of this?
0:21:41 No, but uh, that’s a great name shadow works
0:21:47 So you get a if you if you go look on amazon or i’ve seen this i have seen this
0:21:55 So the the amazon listing for this currently has over 5000 ratings and this is like a self published type of book
0:22:01 And this journal on tiktok has sold over a hundred thousand copies, you know, you know rare
0:22:08 It is for a book to sell a hundred thousand copies and like the first year that it ever existed with no other promotion
0:22:10 um, so
0:22:12 This was a it was a huge success and basically it was like
0:22:17 um people on tiktok would they’d have the book open they’d be like
0:22:20 Like the gasp I gasped when I read this line
0:22:28 Anyway, all right. What’s the line and then they’ll read you this like kind of heavy emo ish quote from this journal and then it’s like
0:22:34 Or they’d be like, you know, um, I finally figured out that my like my my true shadow
0:22:36 Just what and it’s like, you know, it kind of gets into like this whole like
0:22:40 You know, like the gypsy girl type of vibe
0:22:43 It’s like there’s a whole like group of people that love therapy
0:22:49 That love like horoscopes. It’s like these like weird venn diagrams that you can find where it’s like people who are really into
0:22:53 Sort of the mystic self and so this book capitalized on that
0:22:55 I think today if you were to write
0:23:00 I don’t know why I said you I sort of said me if I were to write
0:23:03 a modern day version of
0:23:09 You know, Tony Robbins book at least tomorrow within or mark mansons book the subtle art of not giving a fuck
0:23:12 I think if I wrote a modern version of those and I just pumped
0:23:15 let’s say
0:23:17 nine months and a quarter million dollars of effort
0:23:18 into
0:23:22 Seating it on tiktok. I think I could have a by far a best seller
0:23:26 I think I could sell, you know millions of copies of a book. This isn’t a book, right?
0:23:28 Is this like one of those things where it’s like a journal
0:23:35 It’s like two or two pages three pages of of of writing and then a week’s worth of like no no no
0:23:39 This is not like a planner. It’s not like a daily planner. It’s I mean, I haven’t read the whole thing
0:23:43 But like it’s basically it’s a lot of text content
0:23:47 But then there are like fill-in-the-blanks or like what’s that for you in a box and you write it in your box
0:23:52 But it’s not like it’s not like just it’s not just days and you you you need a journal in it yourself
0:23:55 Have you seen design your life? Is that what it’s called? Yeah designing your life
0:24:00 It’s like a book by like, you know, it hits all the check marks where it’s like a Harvard psychologist
0:24:04 Who spent 30 years studying happiness in lifestyle design Stanford? I think yeah
0:24:07 Yeah, like writes a book on this and then it’s a it’s a cool book
0:24:11 I read it and then now they have like a journal that goes along with it and
0:24:14 You could just look at this and be like what works and what doesn’t work
0:24:21 But yeah, and by the way, I don’t know if this angle would work with you because did you have you googled the author
0:24:25 Of that shadow. Yeah. Yeah. She’s very aspirational
0:24:32 Very aspirational little bit. That’s not nobody knew nobody could see that when they’re when they’re buying the when they’re just
0:24:36 Watching a tiktok because it it wasn’t like it didn’t look like a commercial for the book
0:24:41 It was just somebody saying how this line in this book really spoke to them or how this book
0:24:44 Changed the way they view things like there’s a whole
0:24:49 Hook on tiktok. That’s very famous the way they say some it starts with somebody saying
0:24:51 Um, do you have any book recommendations?
0:24:54 And then they zoom the camera in really closely to their nose and their eyes
0:24:57 They go, I have books that will change the way you even like look at the world
0:25:01 I have books that won’t be so good. You will never be able to look at a man again
0:25:06 And they’re like romance books or whatever like I have books that will melt the frontal lobe of your brain
0:25:10 And they go like really intense with it and that’s a that’s like a common like memed hook that they use
0:25:16 So the first it’s like the first video by the way. I like how you were like, I don’t know if you could do this
0:25:19 This girl’s hot was the thing you basically just tried to tell me
0:25:26 Well, she’s a 25 year old like I’m looking at the New York Times article. By the way, 25, which is this amazing
0:25:28 She’s like a 25 year old like really pretty woman
0:25:33 And that’s like tiktok’s demographic like, you know, you’re like you’re a great
0:25:36 You’re a great bush in tiktok world the videos are not her
0:25:41 The videos are whatever the videos are from the creator the creators just looks how the creator looks they don’t look like her
0:25:43 and
0:25:46 This is amazing. By the way, you know, I think at one point you were like
0:25:50 I feel like i’m riding a horse like a few years after henry ford invented the car
0:25:56 Uh, like it’s just like it’s you you can’t compete when I see these videos and these plans
0:26:01 I think to myself I can never compete in this world of become this is just insane
0:26:05 Like the way that they stuck like the way that you were describing zooming in on someone’s eyes
0:26:10 If I were in that meeting and trying to figure out how to do it or in my bedroom like at night trying to like figure out
0:26:15 Like how do I write this script? I would have been like, this is like this is like cringe like I can’t do this
0:26:21 Do you know what I mean never be able to push post. Yeah, I feel like I I can’t you know what I mean
0:26:25 It’s really hard. I totally get what you mean and I by the way, I’m not saying that these are easy to do
0:26:30 I don’t I don’t mean to say that I just mean that somebody’s gonna do these and I think the way to think about this is
0:26:32 What are your attributes? So for you and me at this point?
0:26:36 If we want to do something that’s going to be, you know successful
0:26:40 We have other attributes like well, I could just use capital. I have a lot of capital
0:26:43 I could just invest in things that are already working. That’s an easy way to make money
0:26:48 Um, I have a good network. I have a unique network where I know a lot of people
0:26:51 Who are doing interesting things and they will uniquely let me into something
0:26:55 Okay, that’s cool. Maybe I have this audience from the podcast
0:26:59 So I have attributes if your attributes are I got a shit ton of time
0:27:01 I have nothing to lose
0:27:07 And I have pretty shameless with my phone right now. I’m like 24 and I grew up like mastering this stuff
0:27:10 Yeah, I’ve just been effing around on tiktok or I understand the metagame here
0:27:16 Better than whoever is the brand marketing manager or the head of paid acquisition
0:27:18 For madison reed or whatever these things are
0:27:22 Then you’re the one right moys
0:27:27 It’s like I get that I can go to facebook ads and tinker on this all day in a way that proctor and gambles
0:27:32 The head of the head of marketing is not going to do they’re going to be buying super bowl ads
0:27:35 They’re not going to be sitting here in facebook ads manager every day and doing that
0:27:37 But but you know, you get what I mean, right?
0:27:42 Like you have different advantages than the incumbents do and I think if your advantage is that you’re you grew up on these networks
0:27:46 Or you you’re willing to hustle with with in a way that they’re not
0:27:49 You’re willing to sit there and slide into dms and send out free product to do all this stuff
0:27:54 You can win and you can win in in in these categories that already exist when I was with moys during that
0:27:56 I mean when I say with him like he was just
0:27:59 You know, we weren’t like we were we’re just acquaintances
0:28:01 But I would just see him on his computer and he’s like everyone check this out
0:28:07 And you like he would track the numbers every single day in this spreadsheet and be like
0:28:12 We just changed this number from a one percent to a one point two five percent
0:28:16 And then it was like now that one point two five. That’s the standard for that day
0:28:18 Now we’re going to add in this one new change
0:28:23 We’re going to add a yellow or a red arrow pointing at this one thing. Boom
0:28:26 We just got that one point two five to one point four tomorrow
0:28:30 We’re going to do that like it was like a methodical like it was basically like I would joke
0:28:32 I just call me I was like dude
0:28:36 We’re all just spreadsheet monkeys because like all we’re trying to do is he was just doing was just staring at the spreadsheet turning
0:28:40 One point four to like one point six. You know what I mean, right?
0:28:45 Well, I think by the way, he’s not he wasn’t just like that kind of at the beginning and now he’s
0:28:50 Like oh, he’s made it so he’s different. No, he’s he’s still the same way, dude
0:28:54 I had a question for him about our e-com business like hey, here’s our work keeping track of this
0:28:57 We’re trying to use this. I don’t know if I should trust this or if I should trust google analytics
0:29:01 Or if I should try to triple whale or fish. I should trust Shopify analytics
0:29:04 They’re all giving me slightly different numbers like how do you how did you do it?
0:29:07 And I just figure I just figured he’d be like, you know, I just
0:29:09 You know, I just kept it simple
0:29:13 I just did this and he goes he did say I just kept it simple and I was like, oh, okay, cool
0:29:17 So which one did you just you just picked one and he goes no, I just kept it simple every day
0:29:22 I went in and I wrote down the numbers for all the platforms every single day. Here’s my sheet and he was still doing it now
0:29:28 This is like 10 years later. The guys are just an economic animal. Yeah, a hundred million dollars later
0:29:31 And he wakes up in the morning and he sits down and he triangulates and he tracks
0:29:34 He goes, yeah, they never drift between you more than four percent, but I just do it anyways
0:29:38 I’m just like it’s kind of like a almost like a daily practice almost like uh
0:29:42 Like it’s almost like a religious act he would do every day a spiritual act
0:29:45 He would do like an offering to the economic gods
0:29:48 If you’re a chef at a bakery and you’ve worked there for 20 years
0:29:54 You know that if you leave the dough out for an hour versus 45 minutes before you put it in the oven
0:29:59 You’re gonna have a very minor difference because you’ve done that thousands of times and that’s basically like the same thing
0:30:04 You know what I mean? Like you notice these very small differences. I admire his um
0:30:12 Tenacity uh towards things. I don’t think he does anything in a not tenacious way. Uh, all right. Let me continue
0:30:14 I got two more ideas for you
0:30:18 Okay, so I did the beauty stuff. I did a book or self-help and by the way
0:30:22 That’s how mark manson made subtle art of not giving a f like tens of millions of copies sold
0:30:28 He was blogging before that and built a blog audience and he used the blog audience to launch the book and that was
0:30:32 Dude, a blog audience seems like so old school
0:30:36 Uh like when I’m hearing this because a blog takes 10 years
0:30:42 And hundreds of thousands of words and potentially hundreds or thousands of posts
0:30:46 Dude, I’ve told the story before about my tell it again because there’s a lot of new listeners
0:30:49 There was a time when I was building and I did about you know
0:30:54 Five to ten years ago where I was building an app that we thought would be a big hit in high schools
0:30:56 Oh, two teens teens will love this app
0:31:02 So I said, well, what are we doing? We’re all just 20 to 30 year old guys sitting in this office. You gotta let’s
0:31:04 Let’s go show this to some teens
0:31:09 So we went first we stood outside of a chipotle and we said free burrito if you test our app
0:31:12 They looked at us like we were creeps, but they took our free burritos tested the app
0:31:15 So, all right, we need to get more people saying yes right now
0:31:20 Only one out of 10 is willing to take a risk. I said, how do we just go to where they’re a captive audience
0:31:22 They’re trapped. So we went to a school. We said, hey
0:31:28 I’d love to come in and teach a class on business in it and at the end I’m gonna tell them about our new app
0:31:32 Is that okay? So they said, yeah, sure we came and we basically got to be a substitute teacher
0:31:34 and I remember
0:31:37 Going up in front of the class. I think this is like a ninth or tenth grade class
0:31:41 And I was like, uh, we’re telling them about their app. They’re like, all right, like we’ll try it
0:31:43 Like just give us the app
0:31:46 I was like cool. So, um, you just got to get the test flight and we put a
0:31:51 Link on the uh, so can we just pull up the link and then you guys just go to this go to this url
0:31:56 Uh, just go to this link and then you’ll get the app and there’s a link along with it
0:32:02 Was it like shawndocom slash it was like jkl 498 whatever. I was like just write it down
0:32:09 It’s just to just do this link and the guy in the back just looks up and his phone was all like cracked and whatever
0:32:10 He just looked at me and he just goes
0:32:12 links are gay
0:32:19 And I can tell you there was no recovering from that and he said that the whole class just stopped typing
0:32:24 They’re like, yeah, he’s right links are gay. That’s what’s like today blog
0:32:28 It’s like if I said, hey, I’m starting a blog because I really want to use this as kind of like building my audience to promote
0:32:33 A book i’m gonna do they’d be like blogs are gay is what like that ninth grader would have shouted at me
0:32:35 Just like absolutely humiliating me
0:32:39 But what’s old is new again. It’ll come back eventually
0:32:42 hopefully, hopefully uh, all right, so
0:32:48 Two last ideas candy candles click this link and uh, if you’re on youtube, you’ll see this on on our video screen
0:32:52 It’s important to look at these because these are you’re selling a visual product
0:32:58 So go down and see where I put candles. Just watch that video right there. Oh my god. It’s all right a mason jar
0:33:00 Holy crap
0:33:02 Wait, those are not are those real orio?
0:33:08 So it’s a mason jar with a lady dipping what looks like orios and animal crackers as if she’s making like a
0:33:11 Oreo smoothie with whipped cream in a mason jar
0:33:14 Exactly, but the but instead of the smoothie it’s wax
0:33:18 That’s wax. I know that was real because this is a candle. No, this is a candle
0:33:23 That’s wax. I don’t know if the orios are real or not. I can’t tell but that’s what I’m saying
0:33:28 I can’t of course. It’s not real look at the numbers on this video. All right. It has 600 000 likes
0:33:30 Holy shit
0:33:33 How many views does this have? I don’t know this so this woman has
0:33:39 And she’s just like a lady. She’s just like a baker. She just made that video
0:33:41 So I saw that video and I was like, oh man
0:33:44 Um, this could be a product. Why do I believe this?
0:33:48 So what just like I said, I wanted to take things that worked in the facebook ads
0:33:52 Hey, day and be like, could I translate this into with the new distribution engine?
0:33:56 Another version of that is take anything that sells well in an mlm
0:34:01 Because tiktok kind of works the same way tiktok is basically you
0:34:05 You give your product to a bunch of people they go and then shill it to their network in their community
0:34:11 That’s how an mlm kind of works without the the pyramid part of the scheme, but this lady’s work is so good
0:34:17 Like I’m clicking there or something. It’s like it’s like frappuccinos and shit like coffee
0:34:21 That looks like it’s makes me I want to eat it. I want to drink it, but it’s a candle
0:34:25 I want to eat it drink it smell it. I want all of it, right? And that’s what I’m doing
0:34:30 It’s a basically a sensory overload and that’s if I see that I think this will perform
0:34:36 This will perform if we if we armed creators with this and we had enough volume this content will always perform
0:34:38 It has this oddly satisfying
0:34:42 Sort of delicious thing and people who like candles
0:34:47 Love candles. There’s actually I said that wrong. There’s nobody in between you either don’t use candles or you love candles
0:34:49 There’s nobody who just kind of likes candles
0:34:55 That’s a candle purchaser. And so that’s why if you go look up successful mlms and I did this one night
0:34:57 I should have done an mfm episode on it
0:35:02 But like you can go break down successful mlms and you could try to figure out what product categories are they in because those are
0:35:08 Categories that you could go into and be successful with if you just took out the mlm the same product has the same desire
0:35:13 But use a huge engine oils. Yeah, there’s a bunch of them. And so like candles is a huge one
0:35:19 So I think I think candy candles could be a category that somebody goes into and I’ll give you one last one
0:35:20 um
0:35:22 23 and me
0:35:26 So 23 and me was this like really interesting company. It got really big
0:35:32 But the company is blown up. It is like self imploded. It still does 300 million dollars a year of revenue
0:35:38 But they’ve basically the board all resigned. They quit the company is losing money. The stock is in the tank
0:35:41 It’s like worth nothing now. Dude. They had a major hack too
0:35:47 I remember they lost 6 million people’s DNA. My dumb ass. I did it when they first launched
0:35:50 And like it’s been on there forever and I get an email saying
0:35:54 Your shit’s like hacked like someone else has all your email. Yeah
0:36:01 Yeah, it was horrible. Like it was like the war that’s probably has to be the second worst hack behind besides your bank account
0:36:07 Yeah, it’s terrible. But I think and there’s others in this space ancestry has an ancestry DNA product
0:36:11 I think you could sell that through this network. And so I think a new way of acquiring customers
0:36:13 I think that type of product, which is a
0:36:17 Kind of a mix of a digital and a physical product a subscription product. Have you seen the food ones?
0:36:23 Well as allergy or what is it? Yeah, so you can so the science behind this stuff is iffy
0:36:27 It’s not, you know, a lot of people debate if it’s legit, but that never
0:36:34 Ever sensitivity is what yeah where it’s like. Yeah, where it’s like which foods are you sensitive to based off of your DNA and based off
0:36:40 Your saliva, which like that it might be bullshit. I actually think it is but a ton of people do myself included
0:36:43 I think it’s bullshit. That’s why I do it
0:36:47 To your annual subscription
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0:36:58 I made most of my money from a newsletter business
0:37:02 It was called the hustle and it was a daily newsletter at scale to millions of subscribers
0:37:08 And it was the greatest business on earth the problem with it was that I had close to 40 employees
0:37:13 And only three of them were actually doing any writing the other employees were growing the newsletter
0:37:16 Building out the tech for the platform and selling ads and honestly
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0:37:40 [Music]
0:37:44 Yeah, so I think there’s a huge opportunity. This is five ideas
0:37:48 I thought of this morning, but I do think that uh the the upside of it is I think
0:37:50 that
0:37:54 Unlike the cliche, you know people the cliche is that you can’t get rich quick, you know, blah blah
0:37:57 There are actually ways that you could get rich quick, you know moist selling
0:38:01 Native for in two and a half years for a hundred million dollars. That’s pretty quick
0:38:04 It’s the best way to get rich is quick as moist says
0:38:09 And so I think that it is not and I and by the way, I’ve seen this firsthand in a couple of the companies that we’ve started
0:38:11 Or or incubated that have been in this space
0:38:16 I guess what I’m saying is the growth here is quicker than I’ve seen pretty much anywhere else
0:38:21 Um, I don’t think it’s easy to do. I think it’s I think you’re competing in like you said sort of
0:38:27 Sharky waters. It’s not that a lot of people are competing but all the people who are competing here are very smart
0:38:29 and very very scrappy
0:38:33 But there’s a lot of categories out there and if you can find a category
0:38:37 Where the traditional incumbents aren’t doing this. I think there’s a lot of money to be made
0:38:42 Dude, listen to this story really quick. So do you remember that there’s this company called elite daily? Do you remember elite daily?
0:38:44 It’s like a blog, right?
0:38:50 Yeah, so elite daily it was a blog launched maybe in 2012 and within one year
0:38:53 They scaled elite daily. It was basically a blog that said like
0:38:58 um, a lot of stuff they said was like controversial. So it was like
0:39:02 You know why men should do this or women should do that, you know
0:39:05 And I can’t which the controversy will take and then sometimes it was like just a variety of lists
0:39:10 But the the guy who started it his father was jake up the jeweler. You remember jake up the jeweler the rapper
0:39:13 The guy who like yeah, that was his applied the rappers, right? Yeah supply the rapper
0:39:18 That was his kid and so he started this blog when he was 22 and this was when millennials were the genziers
0:39:22 So millennials were the young guys and within one year
0:39:28 It got to be the most popular blog on the internet when it was getting something like 100 million monthly uniques
0:39:31 They did it in one year about 18 months in or something like that
0:39:36 I went to their office in new york city and their office was a bunch of like new york kids
0:39:41 Like 22 year olds who are being paid like 15 or 18 dollars an hour or something like that
0:39:47 And they had just rows and rows of cheap ica tables and everyone just sitting there on their computer
0:39:52 Just like banging out headlines to articles and then they would like write just a couple words
0:39:55 They would see which ones like they would post it on elite daily because they had so much traffic
0:39:58 They would see which ones get a little bit of traffic and then they would go and write out the articles
0:40:02 And then eventually the company sold for 60 million dollars, which in the media world
0:40:06 It was like the biggest thing on earth and so elite daily if you google like elite daily acquired
0:40:11 It was like it was just like how fast was that how many how many years this was like 10 years ago
0:40:15 So I don’t remember but I think it was something like two years like it was like really fast
0:40:17 Like they were doing like tens of millions in revenue
0:40:22 literally within 12 months like it was almost overnight and
0:40:27 I remember going to their office and I thought that this was like a legit publication
0:40:30 It was just like these like they built like some software that like
0:40:35 Guests what was going to go viral and they were just banging them out in this room
0:40:38 And it was crazy because it was crazy. It was an example of people
0:40:41 Who find one little hack and they go all in on it
0:40:45 They dedicate their lives to it and they end up building a business that is huge
0:40:47 Like this is kind of what this tick-tock thing which is like
0:40:50 Oh, you’re telling me if I just like get this one mom to share this thing
0:40:56 Oh, I’m gonna build a whole infrastructure all around this where a lot of outsiders look at this and like that’s it crazy
0:40:58 Like what are you doing? That’s like ridiculous like you can’t do that and they’re like
0:41:03 But why can’t I like the math says that this one work therefore I’m going to go get 300 of them
0:41:09 And uh, this elite daily thing it was insane to see this firsthand and I got to talk to those guys. It was all wild
0:41:15 This is like the new version of that and so I got to see these guys sort of like I wasn’t
0:41:18 Particularly friends with the founders. I was friends with some of these employees
0:41:26 So I get to see from that angle they got rich overnight basically and it was like the exact same thing of just like finding a little tiny thing
0:41:32 And going all in on it. Yeah, I think uh, it’s not it’s not for everybody and it’s not easy and all that
0:41:37 My disclaimers would be why why am I am I not doing this? Well besides the fact that I don’t really want to be
0:41:44 You know running businesses anymore, but but even if I even if I could even if I wanted to here’s why I wouldn’t do this
0:41:48 It’s a really frenetic and stressful space to be in that’s
0:41:52 changing like every day and so I don’t like to
0:41:56 I don’t know what the right analogy would be but it’s sort of like sprinting on quicksand
0:42:00 and um, I just I wouldn’t really want to do it right but
0:42:04 But if I had no other choice or if I was wired that way where that’s fun for me
0:42:07 Okay, great. Uh, I’m not really wired that way
0:42:11 It’s also age age age makes you different
0:42:15 Yeah, the second thing is that most businesses like the terminal value
0:42:18 You know the exit value is in
0:42:22 How durable how sustainable how sticky is this and by definition?
0:42:26 This is not super sticky super durable super sustainable
0:42:32 You get the upside which is a fast spike that’s sort of more than you could otherwise get organically
0:42:35 but the downside is
0:42:38 18 months from now, I don’t know if any of this will work. You might fall off a cliff
0:42:43 And so I think that’s the the upside in the downside of this and then also for a lot of these it’s physical products
0:42:49 It’s e-commerce, which is just its own beast in and of itself. You have supply chains. You have fulfillment. You have
0:42:51 inventory risk and you have
0:42:56 Shitty margins generally and so like I think digital products and software
0:43:01 Even if it doesn’t grow as fast can still be a better bet to make and getting able to go there
0:43:06 So and getting big fast is not necessarily bad as long as you have the right mindset
0:43:09 So for example, a lot of people don’t talk about this, but jeff bezos
0:43:17 Um amazon they got huge very fast. They were also google’s biggest advertiser when google first released
0:43:19 advertising
0:43:24 And they got big on the back of google and it worked because they were like we’re going to use this to make ourselves huge
0:43:27 And also we know that the customer is always first
0:43:30 So we have to provide the best customer service with the best product
0:43:34 So if you combine all those things you can create something amazing
0:43:37 Yeah, exactly. I do think also, um
0:43:41 one last, uh, I guess like important caveat on this is
0:43:47 If you do this, there’s sort of a um better and worse ways to do worse way to do it and I would say
0:43:55 The most important variable in something like this is just the repeat purchase. So how much how much of a true brand and
0:44:00 Long-term customer can you build? There’s a lot of people that I see doing this for products that you would only ever buy once
0:44:05 It’s like man, you’re going to go through all the mental gymnastics to get somebody to buy one time and
0:44:08 The product is not a consumable. It’s not something you’re meant to buy again
0:44:12 And you’re going to have to release a new product in order another
0:44:15 A second product or a third product of a whole different type in order to get there
0:44:21 That’s playing the hard game on extra hard mode don’t I wouldn’t recommend doing that. I think that reason is if I remember correctly
0:44:25 I’m just remembering this from like years ago. I think that’s why moise said he didn’t do mattresses
0:44:29 I think he was like looking at mattresses and this was right when casper became a thing
0:44:33 But he was like, yeah, like a mattress has $400 and literally everyone in america needs it
0:44:34 Which is great
0:44:38 But you only buy one every eight years, right? So like of the products I mentioned the botox thing
0:44:45 The it’s that’s a constant once you get on that treadmill of you know, sort of like face improvement. Yeah, it’s hard to get off
0:44:48 Tell me about it. Yeah, I know I know you’re feeling burn right now
0:44:51 Come a little closer to the camera. Let’s take a look at that puppy
0:44:57 Um hair color you got to keep doing it candles you burn them they melt you got to get another one, right?
0:45:02 So like these are things that are consumables that uh that have reapy purchase in them
0:45:05 Do we want to end there and save your last one for another one?
0:45:08 Yeah, I had a bunch of other ideas not in the tiktok game
0:45:13 But I think we got excited and used the whole episode for tiktok. So if you like this
0:45:16 We probably have two more episodes worth of just pure ideas
0:45:21 Go on youtube or tweet at us and just comment on if you’re gonna comment on youtube
0:45:27 Just be like, you know more ideas and tell us your favorite idea of these. All right. Thank you. That’s it. That’s the pod
0:45:31 I feel like I can rule the world. I know I could be what I want to
0:45:37 I put my all in it like no days off on a road. Let’s travel never looking back
0:45:38 ♪ Rock ♪
0:45:40 (upbeat music)
0:00:11 I am going to create an absolute lunchroom food fight slinging business ideas at you
0:00:15 You were gonna be drenched and covered with ideas. Are you prepared for this?
0:00:27 Great analogy the lunchroom one did you just make that up?
0:00:33 Yeah, that was very good. I’m by the way all of these ideas very half baked came to me
0:00:35 You know, I would say 75% of them
0:00:41 I thought of this morning because we had a guest cancel and we said let’s record anyways and how about we do some business ideas
0:00:45 Let’s give the people what they want ’tis the season of giving and we’re gonna give the people what they want
0:00:52 Which is fun business ideas. Well the first one you actually have a lot of intel on right you have to use this
0:00:58 The first one I have some bets. I have some bets on horses and those horses are currently paying out
0:01:03 And I haven’t been talking too much about it, but I think it’s time so
0:01:06 Tick-tock let’s talk about tick-tock
0:01:11 Tick-tock right now if you open up your phone do you have tick-tock on your phone? No
0:01:17 Okay, for some of you you might have trouble opening the app because there might just be millions of dollars jammed in the app
0:01:21 And it’s a little bit like stuck so it might be hard to open up because there was so much money
0:01:28 Available in tick-tock right now. Do you use tick-tock as a user? Of course. I’m a tick-tock addict
0:01:33 Oh, that’s why I don’t use it. I had it and I deleted it. I I love tick-tock. I have a lot of fun on it
0:01:37 But I also have a couple of business bets that are doing really well in this space
0:01:40 And I think right now people are sleeping on it when you say
0:01:45 Business bets do you mean things that you own or investments of other people? I own
0:01:51 Equity and companies that are doing this. That’s what I’m asking. Okay, so you invested in companies that are doing this not
0:01:56 Something you fully own and are operating because because I’m trying to operate anything at this point
0:01:59 Yeah, cuz that like insight is a little bit different. Yeah, yeah
0:02:05 But these are all like there is something in between so there’s like angel investing which is right to check sort of passive
0:02:07 You’re on the outside. I would say you’re on the other side of the fence
0:02:15 They lob you updates over the fence and then there’s things where you own, you know, 10 20 30 40% of the company and you’re active
0:02:19 You’re more actively in the loop. You’re not active day-to-day with your hands, but you’re active with your ears in your mouth
0:02:25 All right, so anyways right now on tick-tock tick-tock today is a little bit like Facebook was maybe
0:02:29 2012 to 2014
0:02:32 and if you remember you at that time were working out of a place called Founders Dojo and
0:02:41 There was a guy who used to work there named Moisa Lee and Moisa Lee today is more famous because he started a brand called native deodorant
0:02:47 You want to give the like two seconds of what he was like being at the Founders Dojo when he was creating native
0:02:50 Basically, it was this guy who went to Harvard Harvard law
0:02:58 I think and so he was like clearly smart and he had a small e-com startup that he sold for like four million dollars or something like that
0:03:04 So very promising but still like, well, you know, he was young and he’s like, what am I gonna do in the Founders Dojo?
0:03:07 Which was like my little 10 person office that I shared with some other guys
0:03:10 He was looking for something to sell he thought mattresses
0:03:15 He thought a few other things eventually he landed on deodorant and right in front of us literally every day
0:03:18 He learned how to use Facebook ads and in a very short amount of time
0:03:22 Scaled his deodorant business from zero to just an idea to
0:03:29 Something like 30 or 40 million in revenue in literally 18 months eventually sold it for a hundred million dollars in cash in like 24 months
0:03:31 All right in front of us. Yeah, two and a half years end-to-end
0:03:38 From time of start to time of exit a hundred million dollars sold to partner. Okay. So why did he do that one?
0:03:45 He picked a interesting category, but he was doing something that not every not a lot of other Harvard graduates smart people were doing and
0:03:49 At that time on Facebook you could get traffic for very cheap
0:03:53 You could get sales for very cheap and he was able to build up a consumer base at the right place at the right time
0:03:58 Basically, by the way, I saw his sheet. We wrote an article on it and he like sent it to me
0:04:04 I think he was spending four dollars and the each customer who we spent four dollars to acquire was then spending
0:04:08 14 dollars with him. I believe that was the numbers. So it’s like a money-making machine
0:04:17 Hey, let’s take a quick break because what all your marketing team does is put out fires
0:04:20 They’re gonna burn out and with HubSpot. They can achieve their best results without the stress
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0:04:39 Okay, yeah, I’m not sure of the math, but it was something like that
0:04:43 It was sort of like, you know, four to one five to one six to one payout on on every dollar
0:04:46 Okay, so which is very hard to achieve today today. Yeah, you know
0:04:51 1.5 is the new four to one right? So basically you put in a dollar you get a dollar fifty
0:04:55 Oh that that same machine used to give you four dollars for every dollar man. Those are the good old days
0:05:00 Well, the good old days are right now on tiktok and so what’s actually happening?
0:05:06 So here’s the breakdown of how this actually works. So you create a product of whatever type could be digital could be physical
0:05:11 Great product. Now. I want you to look at something go down on our sheet
0:05:17 There is on page for there’s an info graphic and it’s from a brand called goalie
0:05:20 You know what goalie is it’s apple cider vinegar gummies
0:05:27 So they just sell gummies like gummy vitamins, but specifically ACV apple cider vinegar, which was kind of like a health wellness trend and craze
0:05:31 Now goalie dude first of all you could put anything in a gummy
0:05:38 I guess like in it like it started with weed understood then like I do creatine that way now
0:05:42 You could do the last thing that I thought you could possibly do in a gummy which is vinegar
0:05:47 Yeah, yeah, and actually if you drink apple cider vinegar tastes horrible the goalie gummies tastes great
0:05:50 It’s like, you know, it’s apple cider vinegar without the pain
0:05:55 Okay, so goalie itself was a business that grew like crazy from zero to hundreds of millions in revenue
0:05:57 I think they ran into financial trouble
0:05:59 They think they had to sell bankruptcy something like that
0:06:02 They were like they got way out of their skis the group that bought it has basically
0:06:06 Restarted it and one of the main things that they’re doing is this tick tock creator
0:06:12 Method that I’m talking about so look at this info graphic. This is a rewards program for tick tock creator
0:06:15 So if you’re a tick tock creator, not only do you get a little kickback on what you sell?
0:06:22 But if every month you hit a certain sales target, you can get something so low tier, you know 1500 GMV
0:06:28 You can get an iPad. All right, cool 4,000 GMV meaning you sell $4,000 worth of product. You get an iPhone. All right
0:06:30 Let’s keep going up
0:06:33 15,000 in GMV you get an all-inclusive trip to Aruba
0:06:41 50,000 you get a Rolex – and more you get the Aruba trip the iPad and you get the Rolex right there stacking
0:06:44 And now let’s go to the high tiers. There are people that have done a million dollars
0:06:51 They get a condo in Miami if you do a million dollars. I think this is in a month of your GMV target
0:06:56 It’s a they’re going to creators to say hey, do you want this condo in Miami? It could be yours
0:07:00 So creators is one way that you can make money on tick tock
0:07:05 So you don’t even have to do the brand or service you could just say I am going to sit here and figure out how
0:07:07 The fuck to sell
0:07:13 Apple cider vinegar gummies and if you get a month if you get a million they give you a Lamborghini
0:07:18 Yeah, oh my god, and there’s people who have achieved these targets. Okay, so this is their program right now
0:07:22 So this is who you’re competing against if you’re going and trying to recruit these creators
0:07:25 It’s like you’re a division one college basketball program
0:07:29 And you’re trying to go get McDonald’s all-americans to come play at your program like there are guys
0:07:33 It’s like oh man, there’s this kid in Wichita. This guy’s just a creative genius
0:07:37 He’s he just sits in his bedroom and he just figures out the best hooks the best angles and
0:07:43 Brands are putting them on retainer 10 20 30 thousand dollars a month in order to get this guy to create for them
0:07:48 This is what’s happening right now in the creator space. How many views do the big videos have?
0:07:52 I mean millions tens of millions of views they can get they can get like a million likes on a video
0:07:55 So you get a million likes you might have had five million views or six million views
0:08:00 This is crazy. Like there’s a guy dressed up in scrubs talking about it
0:08:05 I have no idea if he’s actually works in the medical industry, but because he’s wearing scrubs. I’m like all right
0:08:07 I’m what do you what do you got to say? Okay, so?
0:08:09 Golly did this grew Nanda
0:08:15 Teeth whitening. Are you familiar with this? I think the teeth whitening area is
0:08:20 Full of scammers and I think that you are not a scammer for using tiktok shop
0:08:25 But I think a lot of these scammers use this shit this like tiktok thing like this way
0:08:29 And so it doesn’t surprise me that a teeth whitening company would be using it
0:08:32 I’m not by the way. I’m not saying these guys are scammers at all, but you know what I mean
0:08:37 Yeah, but I’m also not saying that right no no no no I have no idea about this brand
0:08:42 But I know I’ve seen a lot of like bullshit teeth whitening companies and I like like it in the research
0:08:46 I’m like, oh, this does nothing. Yeah, I don’t know the effectiveness of any of these things
0:08:48 All I know is that these they’re selling a lot of product
0:08:50 I think the guru Nanda teeth whitening is the number one
0:08:56 selling product on all of tiktok and tiktok is the number like kind of the most used app in
0:09:02 The country basically right so you have this like top selling product on the top selling network
0:09:07 It’s pretty insane. And so if they’re the top on tiktok, how much revenue do you think they do? I?
0:09:11 Have tried to back into this. I don’t I don’t know the exact
0:09:15 I don’t want to say a number that’s gonna be way off on this like would it be crazy to say like five million bucks a month
0:09:19 I don’t think that would be crazy. No, okay. Let me put it that way
0:09:24 The brands that are doing this strategy well are doing really well and you and the by the way
0:09:28 This creates a halo effect right so you you sell the products directly off that one video
0:09:33 But then people hear about it and then when they see their ad the ad performs better because I’ve heard about this product before
0:09:34 Oh, yeah, I’ve seen ten ten videos about this product
0:09:38 So now when you put the paid ad in front of me those ten organic impressions
0:09:43 Paid off or I go search for it on Amazon Amazon then takes that signal and says wow
0:09:47 People really are searching for this name. Maybe we should surface it higher or Google says wave
0:09:52 We should surface this higher people are searching for this keyword brand so with that product category
0:09:54 So in that product category give it more rank
0:09:56 So there’s this multiple of multiplier effect of this
0:10:00 I have to imagine this is fairly mainstream though because
0:10:06 Marketers are like piranhas like when there’s like flesh in the water like they all like one person tells one person
0:10:12 And they all flock to it and they eventually ruin it so how much life does this still have and how mainstream is this amongst brands?
0:10:16 Let’s say it’s in the red zone still so basically
0:10:22 It’s not as good as when I first discovered it and I didn’t want to talk about on the pod because it’s too good
0:10:26 Right like when something’s just like absolute gangbusters right and unfair advantage
0:10:28 You feel like you know a secret nobody else knows
0:10:30 It’s not there
0:10:33 However, more importantly, it’s still in a spot where you can go do this today
0:10:35 It would still work if you just go and do this today
0:10:39 So still works, but you’re not the only one doing it right both both are true
0:10:48 I have you and like ten other friends in the ecom world and every business they complained about a variety of things with software
0:10:49 It’s churned whatever
0:10:54 With ecom the complaint oftentimes is cashflow and inventory. You’re saying huge numbers
0:10:57 Let’s say hypothetically five million a month sixty million dollars a year
0:11:02 But is that actually a good business when you’re doing this or is this one of those things that if you get big you still are broke
0:11:05 Look, if you’re bad at business, you’ll find a way to lose money in any business
0:11:12 Even the goalie example I gave you right hundreds of millions of dollars and basically went bankrupt along the way
0:11:16 So there are ways to lose to just not defeat from the jaws of victory
0:11:23 There are also people that are absolutely printing profitably with this and so I’ve seen but I’ve seen both examples
0:11:24 I don’t think it’s about the model
0:11:29 I think it’s about how well you actually run your business and how much common sense you use one of the great things about this from a
0:11:33 Cash flow perspective is normal ecom business you put up the money for the ad
0:11:39 You put up the capital at risk in order to get users with this you only put up free product at risk
0:11:43 So you send inventory to the affiliates the affiliates create the content
0:11:47 You pay nothing for that ad until it does sale is generated dude
0:11:49 So if you’re a digital product you crush it here
0:11:54 Exactly, so I have a couple of examples of digital products as well in my list. So okay, here we go
0:11:56 that’s a long set up for
0:12:03 Five ideas that I think you could take on to tiktok a crush with right now number one
0:12:04 So I want you to watch this video
0:12:08 It’s a go scroll down and look at this link that says Botox
0:12:13 So the video starts says face taping is my jam and then the other podcast goes tell me about this and she goes if you had
0:12:19 Told me 14 months ago that I would not be doing Botox and I would be taping my face instead
0:12:23 I would have said you’re effing out of your mind and so that what a hook, right?
0:12:28 So the girls basically saying I used to boat use Botox and now I use this and
0:12:31 I would have thought this is crazy and then the other girls like tell me more
0:12:34 So this video itself has a quarter million likes
0:12:38 How many views is this by the way they have it so usually it’s like bros
0:12:42 It’s dudes like disgusting stuff in a podcast setting that that becomes like the meme
0:12:47 This is like two pretty women. Is this even a real podcast or this one is a lot of people fake these
0:12:55 Podcasts so that video has five five point four million views. Okay, so and they’re not selling a product to be clear a lot
0:13:01 I mean look at the comments every single comment is what’s the brand anyone know the brand because she says there’s this Japanese
0:13:03 Face tape and then you say
0:13:08 Japanese face tape versus just face tape already elevated and
0:13:13 Everybody’s asking for the brand nobody knows what the heck’s going on tell people are criticizing. It’s a polarizing thing
0:13:16 It’s a visual thing. These are good things when you want to sell on tiktok
0:13:24 So idea one is Botox face tape. I think you can make $50 million in top-line revenue. I’ll say
0:13:30 15% margins. So, you know, whatever that comes out to in the next 18 months
0:13:34 Okay, okay, let’s be more conservative of 24 months if you hit this well
0:13:36 So you can make you know seven and a half million dollars profit
0:13:41 you could build a brand because there’s a lot if you look at the market, there’s a lot of people that are
0:13:44 On tiktok that obviously care what they look like aka everybody
0:13:51 There’s a lot of people who are Botox curious but never gonna pull the trigger because it’s either too expensive like individual Botox treatments are like
0:13:53 thousands of dollars or
0:13:59 They just feel like it’s too extreme and they’re crossing that threshold into plastic surgery and they don’t want to do it for that reason
0:14:03 Maybe some maybe they’ll be judged. Maybe self-respect. Maybe they have to go somewhere. It’s uncomfortable
0:14:04 It’s like hymns, right?
0:14:07 This is a bunch of various reasons why you wouldn’t do it dude
0:14:11 I looked up if this works on chat GBT the answer is no
0:14:13 Who knows right?
0:14:20 It’s like one of these things right like I don’t do those little do those little like fate Jade face rollers work
0:14:25 You know do this putting cucumber slices on your eyes and I’m doing this like already came on here the other day
0:14:29 I was like are you’re glowing? She’s like I did a chemical peel and I was like, I don’t know what that is
0:14:32 Tell me more. There’s a whole world of beauty treatments that like have some
0:14:39 On the spectrum of effectiveness and cost they you know, they land somewhere. All I’m saying is that I think this could work
0:14:43 I don’t know if red light therapy is gonna change your skin in your hair, but you know
0:14:47 It’s it’s selling and this is kind of my point right now. I’m not a doctor. I can’t make health claims
0:14:49 I have a friend who is
0:14:52 When is a doctor and anyway?
0:14:57 She does Botox for people and she was at my house and she had her kit with her and she was like
0:15:00 I need to like test this out and we were like did you get Botox curious?
0:15:03 I was like look at her. I was like whip that whip that sucker out baby
0:15:08 Let’s do this and so she gave me a little injection like six weeks ago. Where?
0:15:10 In my forehead
0:15:13 Like like I was like, you know, I was like, I don’t even know if I want to do this
0:15:18 But like I’m a guinea pig, you know, you got a needle you got drugs like I’m gonna try
0:15:20 I would love to hear this excuse you’re about to make right now
0:15:22 You’re like I like science and I just thought you know
0:15:25 I wanted to be a supportive friend of hers and I want it’s more small businesses
0:15:29 What are your other reasons that you did Botox? Tell me just a list of Sam’s reasons
0:15:36 Besides I wanted to look better. Go ahead looking dope naked. I mean there’s like that’s the only reason why anyone does anything
0:15:38 right
0:15:41 But it was I got so many compliments afterwards
0:15:45 Yes, I got so many compliments and it was free your forehead
0:15:50 They can someone says you look really young people get me saying I looked young and I was like
0:15:55 It made me self-conscious on how I used to look like and did your hook
0:16:01 Have you ever you would never do that? You’re not into that. No dude. Come on. Would you what would you say if your wife wanted to do it?
0:16:02 I
0:16:03 Think my wife does want to do it
0:16:10 But she’s in that that boat where she’s like, I don’t really want to do it, but I wanted to I’m curious like it’s the same
0:16:13 I bet you if somebody was at the house and had the kit and was like, yeah, I can do it right now
0:16:17 I think she would be like you and I think her forehead would start looking yeah
0:16:21 Smooth or whatever it does. Yeah, like she was right here. And I was like, yeah
0:16:25 I mean if the needle is right there like just stick it in me like let’s let’s do the damn thing
0:16:27 So I’m into Taco Bell right now
0:16:34 If it brings it to me, I wouldn’t not eat it if it’s there. So yeah, I guess you could say I’m Botox curious
0:16:45 All right, what’s the next one all right next one another one of the beauty space and a theme here beauty things are
0:16:49 Tap into a core human desire. They are visual by nature
0:16:54 They can have before and afters and they obviously are you know high-margin great businesses when you could build them
0:17:00 and so I want to take anything that worked in the D to C in the in the prior waves of
0:17:06 Ecommerce and I want to see if I can build a tiktok native distribution strategy around it
0:17:09 That’s a lot of fancy words to say if it worked with Facebook ads
0:17:13 I’m gonna see if it worked with tiktok videos. Okay, so one of the big winners
0:17:17 I think she spoke at your conference was yeah, I’m the best and read dude
0:17:20 There’s a location right on the street from my house. I think they do really well
0:17:24 Yeah, so Madison Reed is built a real empire around hair color and I don’t know the full story
0:17:27 But basically, you know hair color is not a new idea. They exist
0:17:31 You know, there were many brands that existed my mom has been buying this ever since those little kid
0:17:34 You know, she would go to Target and buy you know dark brown
0:17:38 She didn’t want graying hair or shoot in my sister if she wanted to try it damn
0:17:41 We’re gonna do your mom like that. Oh dude, I do it if I’m great up
0:17:44 You don’t think my mom’s great up like obviously obviously and so, you know
0:17:48 My sister would if she wanted to try having lighter hair for a season whatever go buy hair color
0:17:53 So Madison Reed basically built a you don’t kind of online first distribution strategy
0:17:56 So a bunch of Facebook ads had built a huge brand in this space. I think Madison Reed
0:18:02 I don’t know what they’re worth, but I would not be surprised. I just looked it up top line revenue grew 20% last year to
0:18:10 150 million dollars in revenue. Yeah, so the valuation something like 500 million plus so huge success
0:18:17 I think you could do a new Madison Reed on tiktok. I think that’s just a bet worth taking which is same idea
0:18:20 Maybe you have some new novel angle. Maybe it’s that it’s easier to apply
0:18:25 Maybe it’s that it’s less messy in your cleanup. Maybe it’s less harsh chemicals
0:18:30 so it doesn’t damage your hair the same amount whatever come up with your your reason why this is new and
0:18:36 Build the brand off of tiktok and I think you could do this again with creators who are gonna
0:18:43 Use the product show the customers build trust build your brand get people searching for your brand because there’s not
0:18:47 There’s always gonna be a new wave of people who are interested in this, right?
0:18:50 So there’s either people who are whose hair is starting to gray
0:18:54 There’s always gonna be a new generation. And so whatever the old whatever
0:19:01 Whatever media they you consume is where you need to be in order to sell that right like remember like touch of gray or whatever like men’s
0:19:06 Whatever the men’s hair color one, you know, they did it on TV ads and the Madison Reed did it with Facebook ads
0:19:11 Whatever the next generation is they’re probably gonna get sold to over tiktok and Instagram reels
0:19:23 All right, my friends, I have a new podcast for you guys to check out. It’s called content is profit and it’s hosted by Louise and Fanzi
0:19:31 Kameo and it’s brought to you by the HubSpot podcast network after years of building content teams and frameworks for companies like Red Bull and
0:19:35 Orange Theory Fitness Louise and Fanzi are on a mission to bridge the gap between
0:19:42 content and revenue in each episode you’re gonna hear from top entrepreneurs and creators and you’re gonna hear them share their secrets and
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0:19:59 So you can check out content is profit wherever you get your podcast
0:20:07 And you know, it’s funny is you said there’s a new generation that wants to stuff
0:20:11 But you know, it has not changed and will always be the same is the hooks that worked in
0:20:19 1910 will still work today. So for example, there’s this Wall Street Journal ad that tells the story of two young men one young man when they both
0:20:24 When they both graduated college one young man got a Wall Street Journal subscription and because of that
0:20:27 He got a better career or whatever and they tell us a story
0:20:35 There are so many ads that replicate that story or that idea successfully because if you Google like best Wall Street Journal ad of
0:20:39 All time they cite that ad and so what I like to do is
0:20:48 Find old ads from as late as the 30s the 40s like it could be like print magazine ads and just see like what’s like an interesting line
0:20:52 Yeah, what’s like the human nature vibe of this and just rip it
0:20:59 So like for example, there’s this one very famous ad where it says they laughed at me sit when I sat down
0:21:01 But then when I started to play the piano
0:21:07 Dot-dot-dot and that’s called the curiosity gap, which is do you remember the brand, you know, uh buzzfeed and then
0:21:09 What was the other one called upward?
0:21:15 It was like it was like, uh, you know 10 reasons why blank. You’re not gonna believe number seven
0:21:20 That’s the same hook as that piano ad and so it’s really fun to find old ads and feel like what’s the
0:21:25 Human nature element of this and just replicate it on tiktok. Exactly. Exactly. Great way to find hooks
0:21:30 Okay, here’s an here’s a different uh different category. So I did beauty. Let me give you a different one
0:21:37 Self-help. So one of the top-selling products in the last year is something called the shadow work journal. Have you heard of this?
0:21:41 No, but uh, that’s a great name shadow works
0:21:47 So you get a if you if you go look on amazon or i’ve seen this i have seen this
0:21:55 So the the amazon listing for this currently has over 5000 ratings and this is like a self published type of book
0:22:01 And this journal on tiktok has sold over a hundred thousand copies, you know, you know rare
0:22:08 It is for a book to sell a hundred thousand copies and like the first year that it ever existed with no other promotion
0:22:10 um, so
0:22:12 This was a it was a huge success and basically it was like
0:22:17 um people on tiktok would they’d have the book open they’d be like
0:22:20 Like the gasp I gasped when I read this line
0:22:28 Anyway, all right. What’s the line and then they’ll read you this like kind of heavy emo ish quote from this journal and then it’s like
0:22:34 Or they’d be like, you know, um, I finally figured out that my like my my true shadow
0:22:36 Just what and it’s like, you know, it kind of gets into like this whole like
0:22:40 You know, like the gypsy girl type of vibe
0:22:43 It’s like there’s a whole like group of people that love therapy
0:22:49 That love like horoscopes. It’s like these like weird venn diagrams that you can find where it’s like people who are really into
0:22:53 Sort of the mystic self and so this book capitalized on that
0:22:55 I think today if you were to write
0:23:00 I don’t know why I said you I sort of said me if I were to write
0:23:03 a modern day version of
0:23:09 You know, Tony Robbins book at least tomorrow within or mark mansons book the subtle art of not giving a fuck
0:23:12 I think if I wrote a modern version of those and I just pumped
0:23:15 let’s say
0:23:17 nine months and a quarter million dollars of effort
0:23:18 into
0:23:22 Seating it on tiktok. I think I could have a by far a best seller
0:23:26 I think I could sell, you know millions of copies of a book. This isn’t a book, right?
0:23:28 Is this like one of those things where it’s like a journal
0:23:35 It’s like two or two pages three pages of of of writing and then a week’s worth of like no no no
0:23:39 This is not like a planner. It’s not like a daily planner. It’s I mean, I haven’t read the whole thing
0:23:43 But like it’s basically it’s a lot of text content
0:23:47 But then there are like fill-in-the-blanks or like what’s that for you in a box and you write it in your box
0:23:52 But it’s not like it’s not like just it’s not just days and you you you need a journal in it yourself
0:23:55 Have you seen design your life? Is that what it’s called? Yeah designing your life
0:24:00 It’s like a book by like, you know, it hits all the check marks where it’s like a Harvard psychologist
0:24:04 Who spent 30 years studying happiness in lifestyle design Stanford? I think yeah
0:24:07 Yeah, like writes a book on this and then it’s a it’s a cool book
0:24:11 I read it and then now they have like a journal that goes along with it and
0:24:14 You could just look at this and be like what works and what doesn’t work
0:24:21 But yeah, and by the way, I don’t know if this angle would work with you because did you have you googled the author
0:24:25 Of that shadow. Yeah. Yeah. She’s very aspirational
0:24:32 Very aspirational little bit. That’s not nobody knew nobody could see that when they’re when they’re buying the when they’re just
0:24:36 Watching a tiktok because it it wasn’t like it didn’t look like a commercial for the book
0:24:41 It was just somebody saying how this line in this book really spoke to them or how this book
0:24:44 Changed the way they view things like there’s a whole
0:24:49 Hook on tiktok. That’s very famous the way they say some it starts with somebody saying
0:24:51 Um, do you have any book recommendations?
0:24:54 And then they zoom the camera in really closely to their nose and their eyes
0:24:57 They go, I have books that will change the way you even like look at the world
0:25:01 I have books that won’t be so good. You will never be able to look at a man again
0:25:06 And they’re like romance books or whatever like I have books that will melt the frontal lobe of your brain
0:25:10 And they go like really intense with it and that’s a that’s like a common like memed hook that they use
0:25:16 So the first it’s like the first video by the way. I like how you were like, I don’t know if you could do this
0:25:19 This girl’s hot was the thing you basically just tried to tell me
0:25:26 Well, she’s a 25 year old like I’m looking at the New York Times article. By the way, 25, which is this amazing
0:25:28 She’s like a 25 year old like really pretty woman
0:25:33 And that’s like tiktok’s demographic like, you know, you’re like you’re a great
0:25:36 You’re a great bush in tiktok world the videos are not her
0:25:41 The videos are whatever the videos are from the creator the creators just looks how the creator looks they don’t look like her
0:25:43 and
0:25:46 This is amazing. By the way, you know, I think at one point you were like
0:25:50 I feel like i’m riding a horse like a few years after henry ford invented the car
0:25:56 Uh, like it’s just like it’s you you can’t compete when I see these videos and these plans
0:26:01 I think to myself I can never compete in this world of become this is just insane
0:26:05 Like the way that they stuck like the way that you were describing zooming in on someone’s eyes
0:26:10 If I were in that meeting and trying to figure out how to do it or in my bedroom like at night trying to like figure out
0:26:15 Like how do I write this script? I would have been like, this is like this is like cringe like I can’t do this
0:26:21 Do you know what I mean never be able to push post. Yeah, I feel like I I can’t you know what I mean
0:26:25 It’s really hard. I totally get what you mean and I by the way, I’m not saying that these are easy to do
0:26:30 I don’t I don’t mean to say that I just mean that somebody’s gonna do these and I think the way to think about this is
0:26:32 What are your attributes? So for you and me at this point?
0:26:36 If we want to do something that’s going to be, you know successful
0:26:40 We have other attributes like well, I could just use capital. I have a lot of capital
0:26:43 I could just invest in things that are already working. That’s an easy way to make money
0:26:48 Um, I have a good network. I have a unique network where I know a lot of people
0:26:51 Who are doing interesting things and they will uniquely let me into something
0:26:55 Okay, that’s cool. Maybe I have this audience from the podcast
0:26:59 So I have attributes if your attributes are I got a shit ton of time
0:27:01 I have nothing to lose
0:27:07 And I have pretty shameless with my phone right now. I’m like 24 and I grew up like mastering this stuff
0:27:10 Yeah, I’ve just been effing around on tiktok or I understand the metagame here
0:27:16 Better than whoever is the brand marketing manager or the head of paid acquisition
0:27:18 For madison reed or whatever these things are
0:27:22 Then you’re the one right moys
0:27:27 It’s like I get that I can go to facebook ads and tinker on this all day in a way that proctor and gambles
0:27:32 The head of the head of marketing is not going to do they’re going to be buying super bowl ads
0:27:35 They’re not going to be sitting here in facebook ads manager every day and doing that
0:27:37 But but you know, you get what I mean, right?
0:27:42 Like you have different advantages than the incumbents do and I think if your advantage is that you’re you grew up on these networks
0:27:46 Or you you’re willing to hustle with with in a way that they’re not
0:27:49 You’re willing to sit there and slide into dms and send out free product to do all this stuff
0:27:54 You can win and you can win in in in these categories that already exist when I was with moys during that
0:27:56 I mean when I say with him like he was just
0:27:59 You know, we weren’t like we were we’re just acquaintances
0:28:01 But I would just see him on his computer and he’s like everyone check this out
0:28:07 And you like he would track the numbers every single day in this spreadsheet and be like
0:28:12 We just changed this number from a one percent to a one point two five percent
0:28:16 And then it was like now that one point two five. That’s the standard for that day
0:28:18 Now we’re going to add in this one new change
0:28:23 We’re going to add a yellow or a red arrow pointing at this one thing. Boom
0:28:26 We just got that one point two five to one point four tomorrow
0:28:30 We’re going to do that like it was like a methodical like it was basically like I would joke
0:28:32 I just call me I was like dude
0:28:36 We’re all just spreadsheet monkeys because like all we’re trying to do is he was just doing was just staring at the spreadsheet turning
0:28:40 One point four to like one point six. You know what I mean, right?
0:28:45 Well, I think by the way, he’s not he wasn’t just like that kind of at the beginning and now he’s
0:28:50 Like oh, he’s made it so he’s different. No, he’s he’s still the same way, dude
0:28:54 I had a question for him about our e-com business like hey, here’s our work keeping track of this
0:28:57 We’re trying to use this. I don’t know if I should trust this or if I should trust google analytics
0:29:01 Or if I should try to triple whale or fish. I should trust Shopify analytics
0:29:04 They’re all giving me slightly different numbers like how do you how did you do it?
0:29:07 And I just figure I just figured he’d be like, you know, I just
0:29:09 You know, I just kept it simple
0:29:13 I just did this and he goes he did say I just kept it simple and I was like, oh, okay, cool
0:29:17 So which one did you just you just picked one and he goes no, I just kept it simple every day
0:29:22 I went in and I wrote down the numbers for all the platforms every single day. Here’s my sheet and he was still doing it now
0:29:28 This is like 10 years later. The guys are just an economic animal. Yeah, a hundred million dollars later
0:29:31 And he wakes up in the morning and he sits down and he triangulates and he tracks
0:29:34 He goes, yeah, they never drift between you more than four percent, but I just do it anyways
0:29:38 I’m just like it’s kind of like a almost like a daily practice almost like uh
0:29:42 Like it’s almost like a religious act he would do every day a spiritual act
0:29:45 He would do like an offering to the economic gods
0:29:48 If you’re a chef at a bakery and you’ve worked there for 20 years
0:29:54 You know that if you leave the dough out for an hour versus 45 minutes before you put it in the oven
0:29:59 You’re gonna have a very minor difference because you’ve done that thousands of times and that’s basically like the same thing
0:30:04 You know what I mean? Like you notice these very small differences. I admire his um
0:30:12 Tenacity uh towards things. I don’t think he does anything in a not tenacious way. Uh, all right. Let me continue
0:30:14 I got two more ideas for you
0:30:18 Okay, so I did the beauty stuff. I did a book or self-help and by the way
0:30:22 That’s how mark manson made subtle art of not giving a f like tens of millions of copies sold
0:30:28 He was blogging before that and built a blog audience and he used the blog audience to launch the book and that was
0:30:32 Dude, a blog audience seems like so old school
0:30:36 Uh like when I’m hearing this because a blog takes 10 years
0:30:42 And hundreds of thousands of words and potentially hundreds or thousands of posts
0:30:46 Dude, I’ve told the story before about my tell it again because there’s a lot of new listeners
0:30:49 There was a time when I was building and I did about you know
0:30:54 Five to ten years ago where I was building an app that we thought would be a big hit in high schools
0:30:56 Oh, two teens teens will love this app
0:31:02 So I said, well, what are we doing? We’re all just 20 to 30 year old guys sitting in this office. You gotta let’s
0:31:04 Let’s go show this to some teens
0:31:09 So we went first we stood outside of a chipotle and we said free burrito if you test our app
0:31:12 They looked at us like we were creeps, but they took our free burritos tested the app
0:31:15 So, all right, we need to get more people saying yes right now
0:31:20 Only one out of 10 is willing to take a risk. I said, how do we just go to where they’re a captive audience
0:31:22 They’re trapped. So we went to a school. We said, hey
0:31:28 I’d love to come in and teach a class on business in it and at the end I’m gonna tell them about our new app
0:31:32 Is that okay? So they said, yeah, sure we came and we basically got to be a substitute teacher
0:31:34 and I remember
0:31:37 Going up in front of the class. I think this is like a ninth or tenth grade class
0:31:41 And I was like, uh, we’re telling them about their app. They’re like, all right, like we’ll try it
0:31:43 Like just give us the app
0:31:46 I was like cool. So, um, you just got to get the test flight and we put a
0:31:51 Link on the uh, so can we just pull up the link and then you guys just go to this go to this url
0:31:56 Uh, just go to this link and then you’ll get the app and there’s a link along with it
0:32:02 Was it like shawndocom slash it was like jkl 498 whatever. I was like just write it down
0:32:09 It’s just to just do this link and the guy in the back just looks up and his phone was all like cracked and whatever
0:32:10 He just looked at me and he just goes
0:32:12 links are gay
0:32:19 And I can tell you there was no recovering from that and he said that the whole class just stopped typing
0:32:24 They’re like, yeah, he’s right links are gay. That’s what’s like today blog
0:32:28 It’s like if I said, hey, I’m starting a blog because I really want to use this as kind of like building my audience to promote
0:32:33 A book i’m gonna do they’d be like blogs are gay is what like that ninth grader would have shouted at me
0:32:35 Just like absolutely humiliating me
0:32:39 But what’s old is new again. It’ll come back eventually
0:32:42 hopefully, hopefully uh, all right, so
0:32:48 Two last ideas candy candles click this link and uh, if you’re on youtube, you’ll see this on on our video screen
0:32:52 It’s important to look at these because these are you’re selling a visual product
0:32:58 So go down and see where I put candles. Just watch that video right there. Oh my god. It’s all right a mason jar
0:33:00 Holy crap
0:33:02 Wait, those are not are those real orio?
0:33:08 So it’s a mason jar with a lady dipping what looks like orios and animal crackers as if she’s making like a
0:33:11 Oreo smoothie with whipped cream in a mason jar
0:33:14 Exactly, but the but instead of the smoothie it’s wax
0:33:18 That’s wax. I know that was real because this is a candle. No, this is a candle
0:33:23 That’s wax. I don’t know if the orios are real or not. I can’t tell but that’s what I’m saying
0:33:28 I can’t of course. It’s not real look at the numbers on this video. All right. It has 600 000 likes
0:33:30 Holy shit
0:33:33 How many views does this have? I don’t know this so this woman has
0:33:39 And she’s just like a lady. She’s just like a baker. She just made that video
0:33:41 So I saw that video and I was like, oh man
0:33:44 Um, this could be a product. Why do I believe this?
0:33:48 So what just like I said, I wanted to take things that worked in the facebook ads
0:33:52 Hey, day and be like, could I translate this into with the new distribution engine?
0:33:56 Another version of that is take anything that sells well in an mlm
0:34:01 Because tiktok kind of works the same way tiktok is basically you
0:34:05 You give your product to a bunch of people they go and then shill it to their network in their community
0:34:11 That’s how an mlm kind of works without the the pyramid part of the scheme, but this lady’s work is so good
0:34:17 Like I’m clicking there or something. It’s like it’s like frappuccinos and shit like coffee
0:34:21 That looks like it’s makes me I want to eat it. I want to drink it, but it’s a candle
0:34:25 I want to eat it drink it smell it. I want all of it, right? And that’s what I’m doing
0:34:30 It’s a basically a sensory overload and that’s if I see that I think this will perform
0:34:36 This will perform if we if we armed creators with this and we had enough volume this content will always perform
0:34:38 It has this oddly satisfying
0:34:42 Sort of delicious thing and people who like candles
0:34:47 Love candles. There’s actually I said that wrong. There’s nobody in between you either don’t use candles or you love candles
0:34:49 There’s nobody who just kind of likes candles
0:34:55 That’s a candle purchaser. And so that’s why if you go look up successful mlms and I did this one night
0:34:57 I should have done an mfm episode on it
0:35:02 But like you can go break down successful mlms and you could try to figure out what product categories are they in because those are
0:35:08 Categories that you could go into and be successful with if you just took out the mlm the same product has the same desire
0:35:13 But use a huge engine oils. Yeah, there’s a bunch of them. And so like candles is a huge one
0:35:19 So I think I think candy candles could be a category that somebody goes into and I’ll give you one last one
0:35:20 um
0:35:22 23 and me
0:35:26 So 23 and me was this like really interesting company. It got really big
0:35:32 But the company is blown up. It is like self imploded. It still does 300 million dollars a year of revenue
0:35:38 But they’ve basically the board all resigned. They quit the company is losing money. The stock is in the tank
0:35:41 It’s like worth nothing now. Dude. They had a major hack too
0:35:47 I remember they lost 6 million people’s DNA. My dumb ass. I did it when they first launched
0:35:50 And like it’s been on there forever and I get an email saying
0:35:54 Your shit’s like hacked like someone else has all your email. Yeah
0:36:01 Yeah, it was horrible. Like it was like the war that’s probably has to be the second worst hack behind besides your bank account
0:36:07 Yeah, it’s terrible. But I think and there’s others in this space ancestry has an ancestry DNA product
0:36:11 I think you could sell that through this network. And so I think a new way of acquiring customers
0:36:13 I think that type of product, which is a
0:36:17 Kind of a mix of a digital and a physical product a subscription product. Have you seen the food ones?
0:36:23 Well as allergy or what is it? Yeah, so you can so the science behind this stuff is iffy
0:36:27 It’s not, you know, a lot of people debate if it’s legit, but that never
0:36:34 Ever sensitivity is what yeah where it’s like. Yeah, where it’s like which foods are you sensitive to based off of your DNA and based off
0:36:40 Your saliva, which like that it might be bullshit. I actually think it is but a ton of people do myself included
0:36:43 I think it’s bullshit. That’s why I do it
0:36:47 To your annual subscription
0:36:55 So here’s the deal
0:36:58 I made most of my money from a newsletter business
0:37:02 It was called the hustle and it was a daily newsletter at scale to millions of subscribers
0:37:08 And it was the greatest business on earth the problem with it was that I had close to 40 employees
0:37:13 And only three of them were actually doing any writing the other employees were growing the newsletter
0:37:16 Building out the tech for the platform and selling ads and honestly
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0:37:40 [Music]
0:37:44 Yeah, so I think there’s a huge opportunity. This is five ideas
0:37:48 I thought of this morning, but I do think that uh the the upside of it is I think
0:37:50 that
0:37:54 Unlike the cliche, you know people the cliche is that you can’t get rich quick, you know, blah blah
0:37:57 There are actually ways that you could get rich quick, you know moist selling
0:38:01 Native for in two and a half years for a hundred million dollars. That’s pretty quick
0:38:04 It’s the best way to get rich is quick as moist says
0:38:09 And so I think that it is not and I and by the way, I’ve seen this firsthand in a couple of the companies that we’ve started
0:38:11 Or or incubated that have been in this space
0:38:16 I guess what I’m saying is the growth here is quicker than I’ve seen pretty much anywhere else
0:38:21 Um, I don’t think it’s easy to do. I think it’s I think you’re competing in like you said sort of
0:38:27 Sharky waters. It’s not that a lot of people are competing but all the people who are competing here are very smart
0:38:29 and very very scrappy
0:38:33 But there’s a lot of categories out there and if you can find a category
0:38:37 Where the traditional incumbents aren’t doing this. I think there’s a lot of money to be made
0:38:42 Dude, listen to this story really quick. So do you remember that there’s this company called elite daily? Do you remember elite daily?
0:38:44 It’s like a blog, right?
0:38:50 Yeah, so elite daily it was a blog launched maybe in 2012 and within one year
0:38:53 They scaled elite daily. It was basically a blog that said like
0:38:58 um, a lot of stuff they said was like controversial. So it was like
0:39:02 You know why men should do this or women should do that, you know
0:39:05 And I can’t which the controversy will take and then sometimes it was like just a variety of lists
0:39:10 But the the guy who started it his father was jake up the jeweler. You remember jake up the jeweler the rapper
0:39:13 The guy who like yeah, that was his applied the rappers, right? Yeah supply the rapper
0:39:18 That was his kid and so he started this blog when he was 22 and this was when millennials were the genziers
0:39:22 So millennials were the young guys and within one year
0:39:28 It got to be the most popular blog on the internet when it was getting something like 100 million monthly uniques
0:39:31 They did it in one year about 18 months in or something like that
0:39:36 I went to their office in new york city and their office was a bunch of like new york kids
0:39:41 Like 22 year olds who are being paid like 15 or 18 dollars an hour or something like that
0:39:47 And they had just rows and rows of cheap ica tables and everyone just sitting there on their computer
0:39:52 Just like banging out headlines to articles and then they would like write just a couple words
0:39:55 They would see which ones like they would post it on elite daily because they had so much traffic
0:39:58 They would see which ones get a little bit of traffic and then they would go and write out the articles
0:40:02 And then eventually the company sold for 60 million dollars, which in the media world
0:40:06 It was like the biggest thing on earth and so elite daily if you google like elite daily acquired
0:40:11 It was like it was just like how fast was that how many how many years this was like 10 years ago
0:40:15 So I don’t remember but I think it was something like two years like it was like really fast
0:40:17 Like they were doing like tens of millions in revenue
0:40:22 literally within 12 months like it was almost overnight and
0:40:27 I remember going to their office and I thought that this was like a legit publication
0:40:30 It was just like these like they built like some software that like
0:40:35 Guests what was going to go viral and they were just banging them out in this room
0:40:38 And it was crazy because it was crazy. It was an example of people
0:40:41 Who find one little hack and they go all in on it
0:40:45 They dedicate their lives to it and they end up building a business that is huge
0:40:47 Like this is kind of what this tick-tock thing which is like
0:40:50 Oh, you’re telling me if I just like get this one mom to share this thing
0:40:56 Oh, I’m gonna build a whole infrastructure all around this where a lot of outsiders look at this and like that’s it crazy
0:40:58 Like what are you doing? That’s like ridiculous like you can’t do that and they’re like
0:41:03 But why can’t I like the math says that this one work therefore I’m going to go get 300 of them
0:41:09 And uh, this elite daily thing it was insane to see this firsthand and I got to talk to those guys. It was all wild
0:41:15 This is like the new version of that and so I got to see these guys sort of like I wasn’t
0:41:18 Particularly friends with the founders. I was friends with some of these employees
0:41:26 So I get to see from that angle they got rich overnight basically and it was like the exact same thing of just like finding a little tiny thing
0:41:32 And going all in on it. Yeah, I think uh, it’s not it’s not for everybody and it’s not easy and all that
0:41:37 My disclaimers would be why why am I am I not doing this? Well besides the fact that I don’t really want to be
0:41:44 You know running businesses anymore, but but even if I even if I could even if I wanted to here’s why I wouldn’t do this
0:41:48 It’s a really frenetic and stressful space to be in that’s
0:41:52 changing like every day and so I don’t like to
0:41:56 I don’t know what the right analogy would be but it’s sort of like sprinting on quicksand
0:42:00 and um, I just I wouldn’t really want to do it right but
0:42:04 But if I had no other choice or if I was wired that way where that’s fun for me
0:42:07 Okay, great. Uh, I’m not really wired that way
0:42:11 It’s also age age age makes you different
0:42:15 Yeah, the second thing is that most businesses like the terminal value
0:42:18 You know the exit value is in
0:42:22 How durable how sustainable how sticky is this and by definition?
0:42:26 This is not super sticky super durable super sustainable
0:42:32 You get the upside which is a fast spike that’s sort of more than you could otherwise get organically
0:42:35 but the downside is
0:42:38 18 months from now, I don’t know if any of this will work. You might fall off a cliff
0:42:43 And so I think that’s the the upside in the downside of this and then also for a lot of these it’s physical products
0:42:49 It’s e-commerce, which is just its own beast in and of itself. You have supply chains. You have fulfillment. You have
0:42:51 inventory risk and you have
0:42:56 Shitty margins generally and so like I think digital products and software
0:43:01 Even if it doesn’t grow as fast can still be a better bet to make and getting able to go there
0:43:06 So and getting big fast is not necessarily bad as long as you have the right mindset
0:43:09 So for example, a lot of people don’t talk about this, but jeff bezos
0:43:17 Um amazon they got huge very fast. They were also google’s biggest advertiser when google first released
0:43:19 advertising
0:43:24 And they got big on the back of google and it worked because they were like we’re going to use this to make ourselves huge
0:43:27 And also we know that the customer is always first
0:43:30 So we have to provide the best customer service with the best product
0:43:34 So if you combine all those things you can create something amazing
0:43:37 Yeah, exactly. I do think also, um
0:43:41 one last, uh, I guess like important caveat on this is
0:43:47 If you do this, there’s sort of a um better and worse ways to do worse way to do it and I would say
0:43:55 The most important variable in something like this is just the repeat purchase. So how much how much of a true brand and
0:44:00 Long-term customer can you build? There’s a lot of people that I see doing this for products that you would only ever buy once
0:44:05 It’s like man, you’re going to go through all the mental gymnastics to get somebody to buy one time and
0:44:08 The product is not a consumable. It’s not something you’re meant to buy again
0:44:12 And you’re going to have to release a new product in order another
0:44:15 A second product or a third product of a whole different type in order to get there
0:44:21 That’s playing the hard game on extra hard mode don’t I wouldn’t recommend doing that. I think that reason is if I remember correctly
0:44:25 I’m just remembering this from like years ago. I think that’s why moise said he didn’t do mattresses
0:44:29 I think he was like looking at mattresses and this was right when casper became a thing
0:44:33 But he was like, yeah, like a mattress has $400 and literally everyone in america needs it
0:44:34 Which is great
0:44:38 But you only buy one every eight years, right? So like of the products I mentioned the botox thing
0:44:45 The it’s that’s a constant once you get on that treadmill of you know, sort of like face improvement. Yeah, it’s hard to get off
0:44:48 Tell me about it. Yeah, I know I know you’re feeling burn right now
0:44:51 Come a little closer to the camera. Let’s take a look at that puppy
0:44:57 Um hair color you got to keep doing it candles you burn them they melt you got to get another one, right?
0:45:02 So like these are things that are consumables that uh that have reapy purchase in them
0:45:05 Do we want to end there and save your last one for another one?
0:45:08 Yeah, I had a bunch of other ideas not in the tiktok game
0:45:13 But I think we got excited and used the whole episode for tiktok. So if you like this
0:45:16 We probably have two more episodes worth of just pure ideas
0:45:21 Go on youtube or tweet at us and just comment on if you’re gonna comment on youtube
0:45:27 Just be like, you know more ideas and tell us your favorite idea of these. All right. Thank you. That’s it. That’s the pod
0:45:31 I feel like I can rule the world. I know I could be what I want to
0:45:37 I put my all in it like no days off on a road. Let’s travel never looking back
0:45:38 ♪ Rock ♪
0:45:40 (upbeat music)
Episode 652: Sam Parr ( https://x.com/theSamParr ) and Shaan Puri ( https://x.com/ShaanVP ) talk about 5 ways you can make millions off of TikTok.
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Show Notes:
(0:00) Intro
(4:34) Idea 1: Creator Rewards Program
(12:19) Idea 2: Botox Face Tape
(16:57) Idea 3: Madison Reed dupe for TikTok
(20:50) Idea 4: Self-help Journal
(32:10) Idea 5: Candy Candles
(34:42) Idea 6: 23andMe reboot
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Links:
• Goli – https://goli.com/
• The Natural Faces – http://thenaturalfaces.com/
• Madison Reed – https://www.madison-reed.com/
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Check Out Shaan’s Stuff:
Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd
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Check Out Sam’s Stuff:
• Hampton – https://www.joinhampton.com/
• Ideation Bootcamp – https://www.ideationbootcamp.co/
• Copy That – https://copythat.com
• Hampton Wealth Survey – https://joinhampton.com/wealth
• Sam’s List – http://samslist.co/
My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano