AI transcript
0:00:02 Support for the show comes from Farragamo.
0:00:05 It’s the holidays and gift giving is top of mind.
0:00:08 And now you can give the season a taste of luxury
0:00:10 with Farragamo’s innovative wrapping service
0:00:12 where every present is wrapped like delicious candy.
0:00:15 Each carefully wrapped gift tells a story.
0:00:16 And under that wrapping,
0:00:19 you can find some truly iconic signature Farragamo items.
0:00:21 Join Farragamo in celebrating the spirit of the holidays
0:00:23 with a collection that promises to evoke wonder
0:00:24 in every recipient.
0:00:27 From small leather goods to the iconic hug handbag
0:00:29 or Farragamo loafers and belts,
0:00:32 visit Farragamo.com to discover the best holiday gifts
0:00:34 for the entire family.
0:00:43 Support for this show comes from Constant Contact.
0:00:46 If you struggle just to get your customers to notice you,
0:00:49 Constant Contact has what you need to grab their attention.
0:00:52 Constant Contact’s award-winning marketing platform
0:00:55 offers all the automation, integration,
0:00:57 and reporting tools that get your marketing running
0:00:59 seamlessly.
0:01:02 All backed by their expert live customer support.
0:01:04 It’s time to get going and growing
0:01:07 with Constant Contact today.
0:01:09 Ready, set, grow.
0:01:13 Go to ConstantContact.ca and start your free trial today.
0:01:17 Go to ConstantContact.ca for your free trial.
0:01:20 ConstantContact.ca.
0:01:24 Support for this show comes from Seven Rooms.
0:01:26 For the restaurant operators out there
0:01:28 who want to create more regulars on the regular,
0:01:30 check out Seven Rooms.
0:01:33 Seven Rooms is an all-in-one CRM marketing
0:01:36 and operations platform that helps you make more money
0:01:38 and more magic for your guests.
0:01:40 It gives your staff the tools to deliver service
0:01:43 that keeps your guests coming back for more,
0:01:46 from direct reservations to smart table management
0:01:48 to targeted text and email marketing.
0:01:51 Seven Rooms helps you grow your brand and your covers
0:01:53 and not your workload.
0:01:55 Learn more at SevenRooms.com.
0:01:58 Seven Rooms, make magic, make money.
0:02:01 – Welcome to the Propgy Pods Office Hours.
0:02:03 This is the part of the show where we answer questions
0:02:05 about business, big tech, entrepreneurship
0:02:06 and whatever else is on your mind.
0:02:07 If you’d like to submit a question,
0:02:09 please email a voice recording
0:02:10 to OfficeHours@PropgyMedia.com.
0:02:12 Again, that’s OfficeHours@PropgyMedia.com.
0:02:13 Just a little bit of background,
0:02:15 a little bit of texture on the dog.
0:02:19 I’m in Brazil, in Sao Paulo.
0:02:20 I took an overnight here.
0:02:21 I couldn’t sleep this morning.
0:02:23 I took a Xanax, which made me sleep very hard
0:02:25 for about three and a half hours.
0:02:28 And I have been podcasting for five and a half hours straight.
0:02:31 I am so cooked right now.
0:02:33 So with that, let’s throw a bunch of meaningful,
0:02:36 deep life lessons at me or questions.
0:02:38 And I don’t know, this is either gonna go very well
0:02:39 or very poorly.
0:02:40 First question.
0:02:43 – Hi, Prof. G.
0:02:45 I’m Sarah from New York.
0:02:47 I run a startup in the retail marketing space
0:02:49 and I’m super curious to hear your thoughts
0:02:52 on Perplexity’s new Buy With Pro feature.
0:02:54 What does this mean for the retail industry?
0:02:56 – Thanks.
0:02:58 – We had to come in hot with a hard question.
0:03:00 Buy With Pro is a way to shop online with AI.
0:03:04 The platform now allows its paid users
0:03:07 to search, compare, and buy products all in one place.
0:03:09 It’s a chat-based assistant that includes visual search,
0:03:10 similar to Google Lens.
0:03:12 So, okay, a couple of things here.
0:03:13 I say this a lot.
0:03:15 The biggest mistake we’ve made in marketing
0:03:17 is that consumers don’t want choice.
0:03:19 They want fewer choices presented,
0:03:22 but want to be more confident in those choices
0:03:23 served up to them.
0:03:24 That’s the whole basis, especially retail.
0:03:26 Not 32 toasters at Walmart, the right two
0:03:28 from William Snow, but from a woman
0:03:31 who has better taste in kitchen electronics than you do.
0:03:33 Perplexity isn’t alone here.
0:03:34 Google, Amazon, eBay, and Klarna
0:03:36 are all getting into the shopping game.
0:03:38 How could this affect the industry?
0:03:40 It’s already challenging traditional affiliate
0:03:41 marketing models.
0:03:42 Platforms, including Perplexity,
0:03:45 are partnering with publishers to share ad revenue,
0:03:47 but it’s unclear how much these relationships
0:03:49 will shift the balance of power.
0:03:52 So, alongside the launch of these tools,
0:03:55 I think Perplexity is rolling out a merchant program,
0:03:58 and that is retailers who enroll have a better chance
0:04:00 of being featured in recommendations
0:04:05 and get free API access to power search on their own sides.
0:04:07 When asked if Perplexity makes any money
0:04:09 from sales through the buy with pro button,
0:04:11 spokesperson there said not at the moment,
0:04:13 but I think if they create enough traffic and attention,
0:04:16 they will be able to monetize it.
0:04:20 Look, I like this, and we’re talking about the balance of power.
0:04:22 The balance of power is just shifting from the analog
0:04:24 or from capital to IP.
0:04:25 What do I mean by that?
0:04:26 You don’t want to manufacture cars.
0:04:29 You want to create a layer of software on top of them
0:04:29 to sell them.
0:04:31 You don’t want to be in the business of fast fashion.
0:04:33 You want to be in the business, that’s Airbnb.
0:04:35 You want to be in the business of having software
0:04:37 that observes the traffic on your site
0:04:39 and then sends out orders to whatever factory
0:04:41 can do this most elegantly,
0:04:44 and then put in place a transportation system.
0:04:45 You don’t want to own any assets,
0:04:48 and this to me feels like, again,
0:04:50 more assets and shareholder value
0:04:53 are transferring from the people who own stores,
0:04:56 the people who insert themselves in between them.
0:04:59 If I could invest in any AI property right now,
0:05:02 hand-to-hand CEO, please call me, I’d like to invest.
0:05:05 It would be perplexity because I like the positioning.
0:05:06 I like perplexity.
0:05:08 This is whether this application works or not,
0:05:10 it’s already worked ’cause we’re talking about it.
0:05:11 It signals innovation.
0:05:14 Yet another person getting in between the consumer
0:05:17 and the retailer, and if they build enough traffic,
0:05:20 this is a model, overspend, no one can compete with you.
0:05:23 Don’t charge anything, start getting big traffic.
0:05:24 And then slowly but surely,
0:05:27 once you have one, 10, 50% of traffic,
0:05:31 start implementing real fees and onerous fees.
0:05:33 Anyway, thanks for the question.
0:05:35 Question number two.
0:05:38 – Hi Scott, this is Noah in Nevada.
0:05:40 As a branding expert and visitor,
0:05:44 do you think any city or product has marketed itself
0:05:49 as effectively as Vegas, turning a hot, gray,
0:05:52 isolated desert crossroads into the global hub
0:05:55 of entertainment, opulence, and networking?
0:05:58 Appears to be a contender for number one masterclass
0:05:59 in branding.
0:06:01 How do you see Las Vegas adapting and faring
0:06:03 over the next decade or so?
0:06:04 Thank you for your consideration
0:06:07 and enjoy your time in the desert.
0:06:09 – Noah, that’s such an interesting point.
0:06:13 Hands down, best managed brand in municipal cities
0:06:17 or in metros or whatever the term is for a city.
0:06:18 Hands down, what is brand?
0:06:20 Brand means differentiation, right?
0:06:21 You got 10 brands of cereal,
0:06:22 which one do you pull off the shelf?
0:06:24 You got 10 super cities.
0:06:26 Actually, two thirds of all economic growth
0:06:27 is gonna take place in about 25 super cities.
0:06:31 I don’t think Las Vegas qualifies as a super city.
0:06:34 But I think LA is a little bit like Sydney.
0:06:37 I think that New York is a little bit like London.
0:06:39 They’re kind of analogs to almost every city.
0:06:42 I would argue that Orange County or Southern California
0:06:43 is a little bit like Cape Town.
0:06:44 Cape Town is on my brain
0:06:45 ’cause I’m going there later in the month.
0:06:48 Reminds me of what I think California was like in the ’60s.
0:06:52 There’s always sort of an analog, except for Vegas.
0:06:54 Vegas is singular.
0:06:55 In addition, the brand positioning
0:06:57 of what happens in Vegas stays in Vegas.
0:06:59 I just think it’s fucking genius.
0:07:00 I know this firsthand.
0:07:03 I was in Vegas 15 hours ago.
0:07:04 And what am I doing in Vegas?
0:07:05 I’m gambling.
0:07:06 I’m yelling when I get blackjack.
0:07:10 I’m getting way too fucked up and it’s okay.
0:07:12 I thought about going to a strip club last night.
0:07:14 I haven’t been to a strip club in 10 years.
0:07:17 That’s just not my vibe.
0:07:18 But it felt natural.
0:07:21 It felt like, oh, wait, we just gambled.
0:07:23 We made some money, we’re fucked up.
0:07:24 Oh, we should definitely go to a strip club.
0:07:25 No, I shouldn’t.
0:07:27 Why on earth would I go to a strip club?
0:07:30 But you have license to just go kind of,
0:07:34 just to just sin a little bit and it’s legal.
0:07:35 But you would never do,
0:07:37 I would never go to a strip club in any city I live in.
0:07:38 By the way, general rules,
0:07:39 general decent rules for life.
0:07:41 Don’t go to strip clubs or eat fast food
0:07:42 in the cities you live in.
0:07:45 I do eat fast food, but only when I’m traveling.
0:07:46 And I’m trying to screen that out of my life
0:07:48 ’cause I’m getting older and that’s just shitty food.
0:07:52 Anyways, the branding around Vegas is singular.
0:07:53 These people are very smart.
0:07:55 And it’s amazing how it survived.
0:07:58 And granted, it’s down a little bit from post COVID
0:08:01 because gambling is so ubiquitous now.
0:08:03 But they have done an amazing job.
0:08:05 So a singular brand, high margin revenue
0:08:07 because it taps into an addiction.
0:08:10 And the result is just an incredible offering.
0:08:13 By the way, let’s talk a little bit about Vegas hotels.
0:08:14 I used to get 40 bucks from ready teller
0:08:16 when I was in college and we get ridiculously stoned
0:08:18 and they go, I know, let’s go to Vegas.
0:08:21 And I get in my friend’s red Jetta.
0:08:22 Of course, he did not drink hand drive.
0:08:24 We’d go to Vegas for the night.
0:08:27 Golden Nugget, Steven Wynn, 999 best buffet.
0:08:28 So we’d have 30 bucks.
0:08:31 I’d play blackjack at a $1 table.
0:08:33 Boom, I remember because I used to wear
0:08:34 my mom’s boyfriend’s cardigan
0:08:36 ’cause he was rich and had good taste.
0:08:38 And he gave me a cardigan that I always used to wear.
0:08:41 And then I upgraded to the Tropicana
0:08:44 with the toucans with those birds, 19 bucks a night.
0:08:46 And then I got really fucking crazy
0:08:48 and started going to the, oh my God,
0:08:50 what was the one with the tigers?
0:08:51 Treasure Island?
0:08:52 No, wait, I don’t know where.
0:08:55 And then when I started to make some money, hello ladies.
0:08:57 And I started going to the Rio.
0:08:58 Do you remember the Rio hotel?
0:09:01 The hook, I love a cab driver.
0:09:02 So I would say I’m going to the Rio and then go.
0:09:05 The Rio where it’s hooker friendly.
0:09:06 Anyways, love the Rio for a while.
0:09:08 Then I was at the palms for like a hot minute.
0:09:09 And then when I started making some money,
0:09:11 I started staying at the Cosmo.
0:09:13 Say to the Bellagio, too high end for me.
0:09:15 Felt like I was in a Frank Sinatra film.
0:09:17 I was waiting for the ass cancer from all the meat.
0:09:19 I’m partying with Angie Dickinson later tonight.
0:09:21 By the way, did I tell you I did Xanax last night anyway?
0:09:23 So then when I started making real money,
0:09:26 I went to the Cosmo with your older and have some money
0:09:28 and you want to hang out with younger people.
0:09:29 Really interesting concept.
0:09:32 Take the coolest brands, Beauty and Essex, Milosh,
0:09:34 license it, bring in there.
0:09:37 Then I went to the Aria, newer, higher end,
0:09:40 kind of like a Lexus sort of feel, more modern,
0:09:41 was a fucking disaster for the developers,
0:09:42 but they finished it.
0:09:43 It was nice.
0:09:46 And now, now I stay at the win because even though it’s
0:09:49 a bunch of rich people from Texas and not my vibe,
0:09:51 I just like good service and they do the best job.
0:09:54 The win in the encore and my impression are hands down.
0:09:55 The best casino.
0:09:56 There you go.
0:09:57 There’s a story of my hotels in Vegas,
0:10:02 but see above a singular city resulting in unearned margin.
0:10:03 Thanks for the question.
0:10:06 We have one quick break before our final question.
0:10:07 Stay with us.
0:10:15 Support for the show comes from Betterment.
0:10:17 Do you want your money to be motivated?
0:10:19 Do you want your money to rise and grind?
0:10:22 Do you think your money should get up and work?
0:10:24 Don’t worry, Betterment is here to help.
0:10:26 Betterment is the automated investing and savings app
0:10:28 that makes your money hustle.
0:10:29 Their automated technology is built
0:10:31 to help maximize returns.
0:10:32 Meaning when you invest with Betterment,
0:10:35 your money can auto adjust as you get close to your goal.
0:10:38 Rebalance if your portfolio gets too far out of line
0:10:41 and your dividends are automatically reinvested.
0:10:43 That can increase the potential for compound returns.
0:10:46 In other words, your money is working like a dog
0:10:50 while you can be sleeping like one and snoring like one too.
0:10:53 You’ll never picture your money the same way again.
0:10:55 Betterment, the automated investing and savings app
0:10:57 that makes your money hustle.
0:10:59 Visit betterment.com to get started.
0:11:00 Investing involves risk.
0:11:02 Performance is not guaranteed.
0:11:05 Support for PropG comes from Vanta.
0:11:06 If you’re a startup founder,
0:11:09 finding product market fit is probably your number one priority.
0:11:11 But to land bigger customers,
0:11:13 you also need security compliance.
0:11:17 And obtaining your SOC2 ISO 2701 certification
0:11:19 can take a valuable time and energy,
0:11:21 pulling you away from building and shipping.
0:11:23 That’s where Vanta comes in.
0:11:25 Vanta is the all-in-one compliance solution
0:11:27 helping startups like yours get audit ready
0:11:29 and build a strong security system.
0:11:31 Helping startups like yours get audit ready
0:11:33 and build a strong security foundation
0:11:35 quickly and painlessly.
0:11:37 Vanta automates the manual security tasks
0:11:39 that slow you down, helping you streamline your audit.
0:11:42 And the platform connects you with trusted VC SOEs
0:11:43 to build your program auditors
0:11:45 to get you through audits quickly
0:11:48 and a marketplace for essentials like pen testing.
0:11:50 So whether you’re closing your first deal
0:11:53 or gearing up for growth, Vanta makes compliance easy.
0:11:54 You can join over 8,000 companies,
0:11:57 including many Y Combinator and Techstar startups
0:11:59 who trust Vanta.
0:12:01 If you want to simplify compliance and get $1,000 off,
0:12:05 you can visit vanta.com/profg.
0:12:09 That’s V-A-N-T-A.com/profg.
0:12:15 Support for this show comes from Seven Rooms.
0:12:16 What’s the recipe for taking your restaurant
0:12:18 to the next level?
0:12:20 Well, restaurant operators know a key part of it
0:12:23 is making more money and making sure it keeps coming in.
0:12:26 That’s why you want to bring Seven Rooms to the table.
0:12:29 Seven Rooms is an all-in-one CRM marketing
0:12:31 and operations platform that helps you make more money
0:12:35 for your operation and more magic for your guests.
0:12:37 It equips your staff with the tools you need
0:12:39 to deliver service that keeps your guests
0:12:40 coming back for more.
0:12:43 You can wow diners with a host of tools
0:12:45 that let you create personalized experiences,
0:12:50 organize unforgettable events, and deepen patron loyalty.
0:12:53 From direct reservations to smart table management
0:12:54 and targeted email marketing,
0:12:57 Seven Rooms helps you grow your brand and your covers
0:12:59 and not your workload.
0:13:02 Learn more at SevenRooms.com.
0:13:05 Seven Rooms, make magic, make money.
0:13:09 Welcome back, question number three.
0:13:10 Hi, Prof. G.
0:13:12 I’d appreciate some parenting advice.
0:13:14 I have an ambitious high school senior
0:13:17 who has been accepted to a high-status university,
0:13:21 Michigan, and a lower-status university, Montana State.
0:13:25 He plans to double major in mathematics and computer science.
0:13:27 My son fell in love with the lower-status campus
0:13:31 and its outdoor recreation, skiing, fishing, mountain biking,
0:13:33 all of which he loves.
0:13:36 My instinct screams take the higher-status option,
0:13:39 but compelling him away from his first choice
0:13:43 runs the risk of resentment, burnout, or dropout.
0:13:45 Look, I hate this bullshit of,
0:13:47 just where he’s gonna go where he’s gonna be happy.
0:13:48 This is a bottom line.
0:13:50 College is just fucking amazing, all right?
0:13:53 He’s gonna have four amazing years.
0:13:56 And there’s just no getting around it.
0:13:58 We tell ourselves this myth
0:13:59 that it doesn’t matter where you go to school,
0:14:01 as long as you get a good education.
0:14:02 It’s not true.
0:14:05 We have a caste system in our society.
0:14:06 In Europe, it’s your family name.
0:14:08 In the US, it’s the college you went to.
0:14:10 And then the first few firms you work for,
0:14:12 your economic trajectory in your 20s
0:14:14 largely sets the economic trajectory for the rest of your life.
0:14:17 And the thing that sets your economic trajectory right out
0:14:19 at 22 is the university you went to.
0:14:22 The big name brand state school you’re talking about
0:14:24 is just gonna offer more opportunity.
0:14:26 There’s very few brands that stick with you
0:14:29 the rest of your life and say something about you.
0:14:32 And unfortunately, that’s your university.
0:14:35 My son, I had a similar situation with my son.
0:14:39 My son applied to a bunch of boarding schools in the UK.
0:14:40 One was lesser prestigious.
0:14:42 He got in and he got into another one
0:14:44 that was kind of like iconic.
0:14:47 And I think he was a bit intimidated by the iconic one.
0:14:49 And we said, “Look, you have agency here.
0:14:50 “What do you want to do?”
0:14:53 And he said, “I wanna go to the kind of the second tier,
0:14:54 “but good one.”
0:14:55 And I took him on a long walk
0:14:56 and this is what I said to him.
0:14:59 I said, “You know I’m smart, right?”
0:15:01 I literally said that and he’s like, “Yeah.”
0:15:03 And I said, “And you know I love you, right?
0:15:04 “Yeah.”
0:15:06 I wanna make really good,
0:15:08 I wanna help you make really good decisions.
0:15:11 And I want you to trust me on this one.
0:15:13 I think you’d be better off here.
0:15:14 I think this will set you up
0:15:17 for a better education and more opportunities.
0:15:19 And I was really lucky.
0:15:21 He was silent for a second and he said, “Okay.”
0:15:24 And I don’t know if you have that kind of relationship
0:15:26 with your son, but I wanna be clear.
0:15:29 I think you’re more doors.
0:15:32 I just talked to a kid who got into a mediocre university
0:15:33 where he could play basketball.
0:15:36 And to MIT where he wasn’t gonna play basketball.
0:15:38 And he chose the mediocre school.
0:15:40 And my advice was dude,
0:15:43 go to MIT and buy a fucking basketball team in 20 years.
0:15:45 Would you like to own a basketball team someday?
0:15:47 I mean, you’re not going to be an NBA player.
0:15:48 There’s just no getting around it.
0:15:51 Your son would be better in terms of prospects.
0:15:52 I mean, if he hates it
0:15:54 and he’s gonna be depressed, fine.
0:15:56 But the school you’re talking about
0:15:58 is an amazing school.
0:16:01 He’s got a great time for turning sororities, football games.
0:16:03 So I hate to say this,
0:16:05 but I would just happen and say,
0:16:08 “Look boss, I love you, I’m smart.
0:16:10 “Can you defer to me on this?
0:16:11 “Can you trust me on this?
0:16:12 “And if you don’t like it,
0:16:16 “you can easily transfer from this school to this one.
0:16:18 “You know, on this one, can I cash in some chips?
0:16:20 “Let me finish with the following.
0:16:23 “You and your partner have clearly done a great job.
0:16:24 “This is what you call a great problem.
0:16:26 “If your son is into both these schools,
0:16:31 “it means you have raised a thoughtful, disciplined young man.
0:16:33 “And at the end of the day, that’s the headline news.
0:16:34 “Well done.”
0:16:37 That’s all for this episode.
0:16:38 If you’d like to submit a question,
0:16:39 please email a voice recording
0:16:41 to officehours@proppgmedia.com.
0:16:44 Again, that’s officehours@proppgmedia.com.
0:16:46 (upbeat music)
0:16:53 (upbeat music)
0:16:55 – This episode was produced by Jennifer Sanchez
0:16:56 and Caroline Shagren.
0:16:58 Drew Burroughs is our technical director.
0:16:59 Thank you for listening to the Prop G Pod
0:17:01 from the Box Media Podcast Network.
0:17:04 We will catch you on Saturday for No Mercenial Mellis,
0:17:05 as read by George Hawn.
0:17:07 And please follow our Prop G Markets Pod
0:17:10 wherever you get your pods for new episodes
0:17:11 every Monday and Thursday.
0:17:16 Support for this episode comes from AWS.
0:17:19 AWS Generative AI gives you the tools
0:17:20 to power your business forward
0:17:22 with the security and speed
0:17:24 of the world’s most experienced cloud.
0:17:28 (upbeat music)
0:17:30 – Autograph collection hotels offer
0:17:34 over 300 independent hotels around the world,
0:17:37 each exactly like nothing else.
0:17:39 Hand selected for their inherent craft,
0:17:41 each hotel tells its own unique story
0:17:44 through distinctive design and immersive experiences
0:17:48 from medieval falconry to volcanic wine tasting.
0:17:51 Autograph collection is part of the Marriott Bonvoy portfolio
0:17:54 of over 30 hotel brands around the world.
0:17:58 Find the unforgettable at AutographCollection.com.
0:18:00 (upbeat music)
0:00:05 It’s the holidays and gift giving is top of mind.
0:00:08 And now you can give the season a taste of luxury
0:00:10 with Farragamo’s innovative wrapping service
0:00:12 where every present is wrapped like delicious candy.
0:00:15 Each carefully wrapped gift tells a story.
0:00:16 And under that wrapping,
0:00:19 you can find some truly iconic signature Farragamo items.
0:00:21 Join Farragamo in celebrating the spirit of the holidays
0:00:23 with a collection that promises to evoke wonder
0:00:24 in every recipient.
0:00:27 From small leather goods to the iconic hug handbag
0:00:29 or Farragamo loafers and belts,
0:00:32 visit Farragamo.com to discover the best holiday gifts
0:00:34 for the entire family.
0:00:43 Support for this show comes from Constant Contact.
0:00:46 If you struggle just to get your customers to notice you,
0:00:49 Constant Contact has what you need to grab their attention.
0:00:52 Constant Contact’s award-winning marketing platform
0:00:55 offers all the automation, integration,
0:00:57 and reporting tools that get your marketing running
0:00:59 seamlessly.
0:01:02 All backed by their expert live customer support.
0:01:04 It’s time to get going and growing
0:01:07 with Constant Contact today.
0:01:09 Ready, set, grow.
0:01:13 Go to ConstantContact.ca and start your free trial today.
0:01:17 Go to ConstantContact.ca for your free trial.
0:01:20 ConstantContact.ca.
0:01:24 Support for this show comes from Seven Rooms.
0:01:26 For the restaurant operators out there
0:01:28 who want to create more regulars on the regular,
0:01:30 check out Seven Rooms.
0:01:33 Seven Rooms is an all-in-one CRM marketing
0:01:36 and operations platform that helps you make more money
0:01:38 and more magic for your guests.
0:01:40 It gives your staff the tools to deliver service
0:01:43 that keeps your guests coming back for more,
0:01:46 from direct reservations to smart table management
0:01:48 to targeted text and email marketing.
0:01:51 Seven Rooms helps you grow your brand and your covers
0:01:53 and not your workload.
0:01:55 Learn more at SevenRooms.com.
0:01:58 Seven Rooms, make magic, make money.
0:02:01 – Welcome to the Propgy Pods Office Hours.
0:02:03 This is the part of the show where we answer questions
0:02:05 about business, big tech, entrepreneurship
0:02:06 and whatever else is on your mind.
0:02:07 If you’d like to submit a question,
0:02:09 please email a voice recording
0:02:10 to OfficeHours@PropgyMedia.com.
0:02:12 Again, that’s OfficeHours@PropgyMedia.com.
0:02:13 Just a little bit of background,
0:02:15 a little bit of texture on the dog.
0:02:19 I’m in Brazil, in Sao Paulo.
0:02:20 I took an overnight here.
0:02:21 I couldn’t sleep this morning.
0:02:23 I took a Xanax, which made me sleep very hard
0:02:25 for about three and a half hours.
0:02:28 And I have been podcasting for five and a half hours straight.
0:02:31 I am so cooked right now.
0:02:33 So with that, let’s throw a bunch of meaningful,
0:02:36 deep life lessons at me or questions.
0:02:38 And I don’t know, this is either gonna go very well
0:02:39 or very poorly.
0:02:40 First question.
0:02:43 – Hi, Prof. G.
0:02:45 I’m Sarah from New York.
0:02:47 I run a startup in the retail marketing space
0:02:49 and I’m super curious to hear your thoughts
0:02:52 on Perplexity’s new Buy With Pro feature.
0:02:54 What does this mean for the retail industry?
0:02:56 – Thanks.
0:02:58 – We had to come in hot with a hard question.
0:03:00 Buy With Pro is a way to shop online with AI.
0:03:04 The platform now allows its paid users
0:03:07 to search, compare, and buy products all in one place.
0:03:09 It’s a chat-based assistant that includes visual search,
0:03:10 similar to Google Lens.
0:03:12 So, okay, a couple of things here.
0:03:13 I say this a lot.
0:03:15 The biggest mistake we’ve made in marketing
0:03:17 is that consumers don’t want choice.
0:03:19 They want fewer choices presented,
0:03:22 but want to be more confident in those choices
0:03:23 served up to them.
0:03:24 That’s the whole basis, especially retail.
0:03:26 Not 32 toasters at Walmart, the right two
0:03:28 from William Snow, but from a woman
0:03:31 who has better taste in kitchen electronics than you do.
0:03:33 Perplexity isn’t alone here.
0:03:34 Google, Amazon, eBay, and Klarna
0:03:36 are all getting into the shopping game.
0:03:38 How could this affect the industry?
0:03:40 It’s already challenging traditional affiliate
0:03:41 marketing models.
0:03:42 Platforms, including Perplexity,
0:03:45 are partnering with publishers to share ad revenue,
0:03:47 but it’s unclear how much these relationships
0:03:49 will shift the balance of power.
0:03:52 So, alongside the launch of these tools,
0:03:55 I think Perplexity is rolling out a merchant program,
0:03:58 and that is retailers who enroll have a better chance
0:04:00 of being featured in recommendations
0:04:05 and get free API access to power search on their own sides.
0:04:07 When asked if Perplexity makes any money
0:04:09 from sales through the buy with pro button,
0:04:11 spokesperson there said not at the moment,
0:04:13 but I think if they create enough traffic and attention,
0:04:16 they will be able to monetize it.
0:04:20 Look, I like this, and we’re talking about the balance of power.
0:04:22 The balance of power is just shifting from the analog
0:04:24 or from capital to IP.
0:04:25 What do I mean by that?
0:04:26 You don’t want to manufacture cars.
0:04:29 You want to create a layer of software on top of them
0:04:29 to sell them.
0:04:31 You don’t want to be in the business of fast fashion.
0:04:33 You want to be in the business, that’s Airbnb.
0:04:35 You want to be in the business of having software
0:04:37 that observes the traffic on your site
0:04:39 and then sends out orders to whatever factory
0:04:41 can do this most elegantly,
0:04:44 and then put in place a transportation system.
0:04:45 You don’t want to own any assets,
0:04:48 and this to me feels like, again,
0:04:50 more assets and shareholder value
0:04:53 are transferring from the people who own stores,
0:04:56 the people who insert themselves in between them.
0:04:59 If I could invest in any AI property right now,
0:05:02 hand-to-hand CEO, please call me, I’d like to invest.
0:05:05 It would be perplexity because I like the positioning.
0:05:06 I like perplexity.
0:05:08 This is whether this application works or not,
0:05:10 it’s already worked ’cause we’re talking about it.
0:05:11 It signals innovation.
0:05:14 Yet another person getting in between the consumer
0:05:17 and the retailer, and if they build enough traffic,
0:05:20 this is a model, overspend, no one can compete with you.
0:05:23 Don’t charge anything, start getting big traffic.
0:05:24 And then slowly but surely,
0:05:27 once you have one, 10, 50% of traffic,
0:05:31 start implementing real fees and onerous fees.
0:05:33 Anyway, thanks for the question.
0:05:35 Question number two.
0:05:38 – Hi Scott, this is Noah in Nevada.
0:05:40 As a branding expert and visitor,
0:05:44 do you think any city or product has marketed itself
0:05:49 as effectively as Vegas, turning a hot, gray,
0:05:52 isolated desert crossroads into the global hub
0:05:55 of entertainment, opulence, and networking?
0:05:58 Appears to be a contender for number one masterclass
0:05:59 in branding.
0:06:01 How do you see Las Vegas adapting and faring
0:06:03 over the next decade or so?
0:06:04 Thank you for your consideration
0:06:07 and enjoy your time in the desert.
0:06:09 – Noah, that’s such an interesting point.
0:06:13 Hands down, best managed brand in municipal cities
0:06:17 or in metros or whatever the term is for a city.
0:06:18 Hands down, what is brand?
0:06:20 Brand means differentiation, right?
0:06:21 You got 10 brands of cereal,
0:06:22 which one do you pull off the shelf?
0:06:24 You got 10 super cities.
0:06:26 Actually, two thirds of all economic growth
0:06:27 is gonna take place in about 25 super cities.
0:06:31 I don’t think Las Vegas qualifies as a super city.
0:06:34 But I think LA is a little bit like Sydney.
0:06:37 I think that New York is a little bit like London.
0:06:39 They’re kind of analogs to almost every city.
0:06:42 I would argue that Orange County or Southern California
0:06:43 is a little bit like Cape Town.
0:06:44 Cape Town is on my brain
0:06:45 ’cause I’m going there later in the month.
0:06:48 Reminds me of what I think California was like in the ’60s.
0:06:52 There’s always sort of an analog, except for Vegas.
0:06:54 Vegas is singular.
0:06:55 In addition, the brand positioning
0:06:57 of what happens in Vegas stays in Vegas.
0:06:59 I just think it’s fucking genius.
0:07:00 I know this firsthand.
0:07:03 I was in Vegas 15 hours ago.
0:07:04 And what am I doing in Vegas?
0:07:05 I’m gambling.
0:07:06 I’m yelling when I get blackjack.
0:07:10 I’m getting way too fucked up and it’s okay.
0:07:12 I thought about going to a strip club last night.
0:07:14 I haven’t been to a strip club in 10 years.
0:07:17 That’s just not my vibe.
0:07:18 But it felt natural.
0:07:21 It felt like, oh, wait, we just gambled.
0:07:23 We made some money, we’re fucked up.
0:07:24 Oh, we should definitely go to a strip club.
0:07:25 No, I shouldn’t.
0:07:27 Why on earth would I go to a strip club?
0:07:30 But you have license to just go kind of,
0:07:34 just to just sin a little bit and it’s legal.
0:07:35 But you would never do,
0:07:37 I would never go to a strip club in any city I live in.
0:07:38 By the way, general rules,
0:07:39 general decent rules for life.
0:07:41 Don’t go to strip clubs or eat fast food
0:07:42 in the cities you live in.
0:07:45 I do eat fast food, but only when I’m traveling.
0:07:46 And I’m trying to screen that out of my life
0:07:48 ’cause I’m getting older and that’s just shitty food.
0:07:52 Anyways, the branding around Vegas is singular.
0:07:53 These people are very smart.
0:07:55 And it’s amazing how it survived.
0:07:58 And granted, it’s down a little bit from post COVID
0:08:01 because gambling is so ubiquitous now.
0:08:03 But they have done an amazing job.
0:08:05 So a singular brand, high margin revenue
0:08:07 because it taps into an addiction.
0:08:10 And the result is just an incredible offering.
0:08:13 By the way, let’s talk a little bit about Vegas hotels.
0:08:14 I used to get 40 bucks from ready teller
0:08:16 when I was in college and we get ridiculously stoned
0:08:18 and they go, I know, let’s go to Vegas.
0:08:21 And I get in my friend’s red Jetta.
0:08:22 Of course, he did not drink hand drive.
0:08:24 We’d go to Vegas for the night.
0:08:27 Golden Nugget, Steven Wynn, 999 best buffet.
0:08:28 So we’d have 30 bucks.
0:08:31 I’d play blackjack at a $1 table.
0:08:33 Boom, I remember because I used to wear
0:08:34 my mom’s boyfriend’s cardigan
0:08:36 ’cause he was rich and had good taste.
0:08:38 And he gave me a cardigan that I always used to wear.
0:08:41 And then I upgraded to the Tropicana
0:08:44 with the toucans with those birds, 19 bucks a night.
0:08:46 And then I got really fucking crazy
0:08:48 and started going to the, oh my God,
0:08:50 what was the one with the tigers?
0:08:51 Treasure Island?
0:08:52 No, wait, I don’t know where.
0:08:55 And then when I started to make some money, hello ladies.
0:08:57 And I started going to the Rio.
0:08:58 Do you remember the Rio hotel?
0:09:01 The hook, I love a cab driver.
0:09:02 So I would say I’m going to the Rio and then go.
0:09:05 The Rio where it’s hooker friendly.
0:09:06 Anyways, love the Rio for a while.
0:09:08 Then I was at the palms for like a hot minute.
0:09:09 And then when I started making some money,
0:09:11 I started staying at the Cosmo.
0:09:13 Say to the Bellagio, too high end for me.
0:09:15 Felt like I was in a Frank Sinatra film.
0:09:17 I was waiting for the ass cancer from all the meat.
0:09:19 I’m partying with Angie Dickinson later tonight.
0:09:21 By the way, did I tell you I did Xanax last night anyway?
0:09:23 So then when I started making real money,
0:09:26 I went to the Cosmo with your older and have some money
0:09:28 and you want to hang out with younger people.
0:09:29 Really interesting concept.
0:09:32 Take the coolest brands, Beauty and Essex, Milosh,
0:09:34 license it, bring in there.
0:09:37 Then I went to the Aria, newer, higher end,
0:09:40 kind of like a Lexus sort of feel, more modern,
0:09:41 was a fucking disaster for the developers,
0:09:42 but they finished it.
0:09:43 It was nice.
0:09:46 And now, now I stay at the win because even though it’s
0:09:49 a bunch of rich people from Texas and not my vibe,
0:09:51 I just like good service and they do the best job.
0:09:54 The win in the encore and my impression are hands down.
0:09:55 The best casino.
0:09:56 There you go.
0:09:57 There’s a story of my hotels in Vegas,
0:10:02 but see above a singular city resulting in unearned margin.
0:10:03 Thanks for the question.
0:10:06 We have one quick break before our final question.
0:10:07 Stay with us.
0:10:15 Support for the show comes from Betterment.
0:10:17 Do you want your money to be motivated?
0:10:19 Do you want your money to rise and grind?
0:10:22 Do you think your money should get up and work?
0:10:24 Don’t worry, Betterment is here to help.
0:10:26 Betterment is the automated investing and savings app
0:10:28 that makes your money hustle.
0:10:29 Their automated technology is built
0:10:31 to help maximize returns.
0:10:32 Meaning when you invest with Betterment,
0:10:35 your money can auto adjust as you get close to your goal.
0:10:38 Rebalance if your portfolio gets too far out of line
0:10:41 and your dividends are automatically reinvested.
0:10:43 That can increase the potential for compound returns.
0:10:46 In other words, your money is working like a dog
0:10:50 while you can be sleeping like one and snoring like one too.
0:10:53 You’ll never picture your money the same way again.
0:10:55 Betterment, the automated investing and savings app
0:10:57 that makes your money hustle.
0:10:59 Visit betterment.com to get started.
0:11:00 Investing involves risk.
0:11:02 Performance is not guaranteed.
0:11:05 Support for PropG comes from Vanta.
0:11:06 If you’re a startup founder,
0:11:09 finding product market fit is probably your number one priority.
0:11:11 But to land bigger customers,
0:11:13 you also need security compliance.
0:11:17 And obtaining your SOC2 ISO 2701 certification
0:11:19 can take a valuable time and energy,
0:11:21 pulling you away from building and shipping.
0:11:23 That’s where Vanta comes in.
0:11:25 Vanta is the all-in-one compliance solution
0:11:27 helping startups like yours get audit ready
0:11:29 and build a strong security system.
0:11:31 Helping startups like yours get audit ready
0:11:33 and build a strong security foundation
0:11:35 quickly and painlessly.
0:11:37 Vanta automates the manual security tasks
0:11:39 that slow you down, helping you streamline your audit.
0:11:42 And the platform connects you with trusted VC SOEs
0:11:43 to build your program auditors
0:11:45 to get you through audits quickly
0:11:48 and a marketplace for essentials like pen testing.
0:11:50 So whether you’re closing your first deal
0:11:53 or gearing up for growth, Vanta makes compliance easy.
0:11:54 You can join over 8,000 companies,
0:11:57 including many Y Combinator and Techstar startups
0:11:59 who trust Vanta.
0:12:01 If you want to simplify compliance and get $1,000 off,
0:12:05 you can visit vanta.com/profg.
0:12:09 That’s V-A-N-T-A.com/profg.
0:12:15 Support for this show comes from Seven Rooms.
0:12:16 What’s the recipe for taking your restaurant
0:12:18 to the next level?
0:12:20 Well, restaurant operators know a key part of it
0:12:23 is making more money and making sure it keeps coming in.
0:12:26 That’s why you want to bring Seven Rooms to the table.
0:12:29 Seven Rooms is an all-in-one CRM marketing
0:12:31 and operations platform that helps you make more money
0:12:35 for your operation and more magic for your guests.
0:12:37 It equips your staff with the tools you need
0:12:39 to deliver service that keeps your guests
0:12:40 coming back for more.
0:12:43 You can wow diners with a host of tools
0:12:45 that let you create personalized experiences,
0:12:50 organize unforgettable events, and deepen patron loyalty.
0:12:53 From direct reservations to smart table management
0:12:54 and targeted email marketing,
0:12:57 Seven Rooms helps you grow your brand and your covers
0:12:59 and not your workload.
0:13:02 Learn more at SevenRooms.com.
0:13:05 Seven Rooms, make magic, make money.
0:13:09 Welcome back, question number three.
0:13:10 Hi, Prof. G.
0:13:12 I’d appreciate some parenting advice.
0:13:14 I have an ambitious high school senior
0:13:17 who has been accepted to a high-status university,
0:13:21 Michigan, and a lower-status university, Montana State.
0:13:25 He plans to double major in mathematics and computer science.
0:13:27 My son fell in love with the lower-status campus
0:13:31 and its outdoor recreation, skiing, fishing, mountain biking,
0:13:33 all of which he loves.
0:13:36 My instinct screams take the higher-status option,
0:13:39 but compelling him away from his first choice
0:13:43 runs the risk of resentment, burnout, or dropout.
0:13:45 Look, I hate this bullshit of,
0:13:47 just where he’s gonna go where he’s gonna be happy.
0:13:48 This is a bottom line.
0:13:50 College is just fucking amazing, all right?
0:13:53 He’s gonna have four amazing years.
0:13:56 And there’s just no getting around it.
0:13:58 We tell ourselves this myth
0:13:59 that it doesn’t matter where you go to school,
0:14:01 as long as you get a good education.
0:14:02 It’s not true.
0:14:05 We have a caste system in our society.
0:14:06 In Europe, it’s your family name.
0:14:08 In the US, it’s the college you went to.
0:14:10 And then the first few firms you work for,
0:14:12 your economic trajectory in your 20s
0:14:14 largely sets the economic trajectory for the rest of your life.
0:14:17 And the thing that sets your economic trajectory right out
0:14:19 at 22 is the university you went to.
0:14:22 The big name brand state school you’re talking about
0:14:24 is just gonna offer more opportunity.
0:14:26 There’s very few brands that stick with you
0:14:29 the rest of your life and say something about you.
0:14:32 And unfortunately, that’s your university.
0:14:35 My son, I had a similar situation with my son.
0:14:39 My son applied to a bunch of boarding schools in the UK.
0:14:40 One was lesser prestigious.
0:14:42 He got in and he got into another one
0:14:44 that was kind of like iconic.
0:14:47 And I think he was a bit intimidated by the iconic one.
0:14:49 And we said, “Look, you have agency here.
0:14:50 “What do you want to do?”
0:14:53 And he said, “I wanna go to the kind of the second tier,
0:14:54 “but good one.”
0:14:55 And I took him on a long walk
0:14:56 and this is what I said to him.
0:14:59 I said, “You know I’m smart, right?”
0:15:01 I literally said that and he’s like, “Yeah.”
0:15:03 And I said, “And you know I love you, right?
0:15:04 “Yeah.”
0:15:06 I wanna make really good,
0:15:08 I wanna help you make really good decisions.
0:15:11 And I want you to trust me on this one.
0:15:13 I think you’d be better off here.
0:15:14 I think this will set you up
0:15:17 for a better education and more opportunities.
0:15:19 And I was really lucky.
0:15:21 He was silent for a second and he said, “Okay.”
0:15:24 And I don’t know if you have that kind of relationship
0:15:26 with your son, but I wanna be clear.
0:15:29 I think you’re more doors.
0:15:32 I just talked to a kid who got into a mediocre university
0:15:33 where he could play basketball.
0:15:36 And to MIT where he wasn’t gonna play basketball.
0:15:38 And he chose the mediocre school.
0:15:40 And my advice was dude,
0:15:43 go to MIT and buy a fucking basketball team in 20 years.
0:15:45 Would you like to own a basketball team someday?
0:15:47 I mean, you’re not going to be an NBA player.
0:15:48 There’s just no getting around it.
0:15:51 Your son would be better in terms of prospects.
0:15:52 I mean, if he hates it
0:15:54 and he’s gonna be depressed, fine.
0:15:56 But the school you’re talking about
0:15:58 is an amazing school.
0:16:01 He’s got a great time for turning sororities, football games.
0:16:03 So I hate to say this,
0:16:05 but I would just happen and say,
0:16:08 “Look boss, I love you, I’m smart.
0:16:10 “Can you defer to me on this?
0:16:11 “Can you trust me on this?
0:16:12 “And if you don’t like it,
0:16:16 “you can easily transfer from this school to this one.
0:16:18 “You know, on this one, can I cash in some chips?
0:16:20 “Let me finish with the following.
0:16:23 “You and your partner have clearly done a great job.
0:16:24 “This is what you call a great problem.
0:16:26 “If your son is into both these schools,
0:16:31 “it means you have raised a thoughtful, disciplined young man.
0:16:33 “And at the end of the day, that’s the headline news.
0:16:34 “Well done.”
0:16:37 That’s all for this episode.
0:16:38 If you’d like to submit a question,
0:16:39 please email a voice recording
0:16:41 to officehours@proppgmedia.com.
0:16:44 Again, that’s officehours@proppgmedia.com.
0:16:46 (upbeat music)
0:16:53 (upbeat music)
0:16:55 – This episode was produced by Jennifer Sanchez
0:16:56 and Caroline Shagren.
0:16:58 Drew Burroughs is our technical director.
0:16:59 Thank you for listening to the Prop G Pod
0:17:01 from the Box Media Podcast Network.
0:17:04 We will catch you on Saturday for No Mercenial Mellis,
0:17:05 as read by George Hawn.
0:17:07 And please follow our Prop G Markets Pod
0:17:10 wherever you get your pods for new episodes
0:17:11 every Monday and Thursday.
0:17:16 Support for this episode comes from AWS.
0:17:19 AWS Generative AI gives you the tools
0:17:20 to power your business forward
0:17:22 with the security and speed
0:17:24 of the world’s most experienced cloud.
0:17:28 (upbeat music)
0:17:30 – Autograph collection hotels offer
0:17:34 over 300 independent hotels around the world,
0:17:37 each exactly like nothing else.
0:17:39 Hand selected for their inherent craft,
0:17:41 each hotel tells its own unique story
0:17:44 through distinctive design and immersive experiences
0:17:48 from medieval falconry to volcanic wine tasting.
0:17:51 Autograph collection is part of the Marriott Bonvoy portfolio
0:17:54 of over 30 hotel brands around the world.
0:17:58 Find the unforgettable at AutographCollection.com.
0:18:00 (upbeat music)
Scott discusses Perplexity’s new ‘Buy With Pro’ feature, specifically what it means for the future of the retail industry. He then speaks about Las Vegas and its singular brand positioning. He wraps up with advice to a parent who is struggling with his kid’s college decision.
Music: https://www.davidcuttermusic.com / @dcuttermusic
Subscribe to No Mercy / No Malice
Buy “The Algebra of Wealth,” out now.
Follow the podcast across socials @profgpod:
Learn more about your ad choices. Visit podcastchoices.com/adchoices