00:00

Yeah. Actually, call him right now and put it on speaker phone.

Yeah. Actually, call him right now and put it on speaker phone.

00:06

Yo.

Yo.

00:07

Preston, you're live on the podcast right now.

Preston, you're live on the podcast right now.

00:09

What's going on?

What's going on?

00:20

Alright. We're live, Sean. I've got a weird thing for you. Do you remember, like, twelve months ago, I told you about Craig Folar. You know who Craig Foller is? Yeah. He's,

Alright. We're live, Sean. I've got a weird thing for you. Do you remember, like, twelve months ago, I told you about Craig Folar. You know who Craig Foller is? Yeah. He's,

00:29

freight waves. Right? Yeah. So freight waves, it's a data product for people, I guess, who are freight brokers, something like that. And they're pretty big. For some reason, if you go they run their company like they're publicly traded in that you can Google them and see all their revenue and profit And so I don't know the exact numbers, but you guys can just Google a FreightWaves revenue, and they put out, like, quarterly statements, which is interesting. But it's like a large like, sixty or eighty million dollar a year software business or or subscription data business. Anyway,

freight waves. Right? Yeah. So freight waves, it's a data product for people, I guess, who are freight brokers, something like that. And they're pretty big. For some reason, if you go they run their company like they're publicly traded in that you can Google them and see all their revenue and profit And so I don't know the exact numbers, but you guys can just Google a FreightWaves revenue, and they put out, like, quarterly statements, which is interesting. But it's like a large like, sixty or eighty million dollar a year software business or or subscription data business. Anyway,

00:55

Craig is an interesting entrepreneur, and I told you about how he bought this thing called flying magazine.

Craig is an interesting entrepreneur, and I told you about how he bought this thing called flying magazine.

01:01

And what he did was he, was a big fan of flying, and he's wealthy on paper, but I don't know how wealthy is liquid in I think this was like a big deal for him, but he bought Flying Magazine, and then he also bought a seven million dollar, like, three hundred acre plot of land in Tennessee and was turning that into basically a flying club where you it's kind of like a country club where you, like, own a home on a golf course, except now you own it around an airplane strip and an airplane hangar, and they used the magazine to sell plots of land. It was like a neighborhood. And, basically, they were like, you could buy a house it's gonna be it's it's, you know, the middle of this neighborhood is basically the airstrip. So where you're gonna be able to take off if you if you like, you know, if either flying your own plane or private private flights. And so they were like, we're gonna that's the vision. That's the field of dreams. We're gonna start doing this. And I think it was working extremely well.

And what he did was he, was a big fan of flying, and he's wealthy on paper, but I don't know how wealthy is liquid in I think this was like a big deal for him, but he bought Flying Magazine, and then he also bought a seven million dollar, like, three hundred acre plot of land in Tennessee and was turning that into basically a flying club where you it's kind of like a country club where you, like, own a home on a golf course, except now you own it around an airplane strip and an airplane hangar, and they used the magazine to sell plots of land. It was like a neighborhood. And, basically, they were like, you could buy a house it's gonna be it's it's, you know, the middle of this neighborhood is basically the airstrip. So where you're gonna be able to take off if you if you like, you know, if either flying your own plane or private private flights. And so they were like, we're gonna that's the vision. That's the field of dreams. We're gonna start doing this. And I think it was working extremely well.

01:51

I have an update. I will tell you how it's going.

I have an update. I will tell you how it's going.

01:54

So Craig has now acquired thirty oh, sorry, forty four different magazines.

So Craig has now acquired thirty oh, sorry, forty four different magazines.

02:00

And they are gonna do roughly fifty million dollars this year with eighteen percent EBITDA, and it's his prediction by two thousand and thirty, this side business that he started, he says, I think we can get to a billion dollars in revenue with thirty percent profit margins.

And they are gonna do roughly fifty million dollars this year with eighteen percent EBITDA, and it's his prediction by two thousand and thirty, this side business that he started, he says, I think we can get to a billion dollars in revenue with thirty percent profit margins.

02:16

And so that's an update on this guy, what he's doing. And he tweeted out recently his quarterly revenue. I think last quarter, q four, of two thousand twenty four was fifteen million in revenue, and he's doing it profitably. And here's what he does.

And so that's an update on this guy, what he's doing. And he tweeted out recently his quarterly revenue. I think last quarter, q four, of two thousand twenty four was fifteen million in revenue, and he's doing it profitably. And here's what he does.

02:29

So he finds an old title, like, an old magazine,

So he finds an old title, like, an old magazine,

02:33

where it's around a expensive hobby.

where it's around a expensive hobby.

02:37

So I think he has a boating one. He's got, I think he is even looking at, like, RC planes and RC cars and things like that. So where there's an expensive hobby,

So I think he has a boating one. He's got, I think he is even looking at, like, RC planes and RC cars and things like that. So where there's an expensive hobby,

02:47

and he uses this thing that he calls negative CAC. Meaning people pay for the magazine. And so that is how he acquires a customer.

and he uses this thing that he calls negative CAC. Meaning people pay for the magazine. And so that is how he acquires a customer.

02:56

Of course, they are paying for magazine, not him trying to advertise to get the the user. And then he goes, I wanna create commerce products to sell to the audience. And so the media businesses

Of course, they are paying for magazine, not him trying to advertise to get the the user. And then he goes, I wanna create commerce products to sell to the audience. And so the media businesses

03:07

pay for the company. They pay for the audience creations. And then they help bootstrap other businesses that I can sell to this audience. And at this point,

pay for the company. They pay for the audience creations. And then they help bootstrap other businesses that I can sell to this audience. And at this point,

03:15

he's buying companies for three to five times EBITDA, which is I think that's pretty cheap, but it's a dying it's a dying medium. So maybe that's not that cheap. It does require some sophistication in order to, like, turn them around.

he's buying companies for three to five times EBITDA, which is I think that's pretty cheap, but it's a dying it's a dying medium. So maybe that's not that cheap. It does require some sophistication in order to, like, turn them around.

03:27

But it's really fascinating that he's pulling this off, and this is his side like his side hustle. This is his side business. His main business is freightwaves.

But it's really fascinating that he's pulling this off, and this is his side like his side hustle. This is his side business. His main business is freightwaves.

03:35

Well, couple of questions. So he bought this personally, not it's not a part of Freight waves. No. It's its own thing. So that's why I said it was, like, kind of a big deal for him because I don't know Craig's personal situation, but I don't think he's sold any of freight waves other than taking on venture capital to build the company. This is wildly impressive. So first of all, it's called Firecrown. So firecrown dot com, and if you go to their brand section, you can see all the things that they bought Fire Crown. Great name. They've got forty four brands. You're right. Basically, it's a bunch of things about private flight. It's a bunch of things about boating and sailing and fishing and yachting. And wakeboarding,

Well, couple of questions. So he bought this personally, not it's not a part of Freight waves. No. It's its own thing. So that's why I said it was, like, kind of a big deal for him because I don't know Craig's personal situation, but I don't think he's sold any of freight waves other than taking on venture capital to build the company. This is wildly impressive. So first of all, it's called Firecrown. So firecrown dot com, and if you go to their brand section, you can see all the things that they bought Fire Crown. Great name. They've got forty four brands. You're right. Basically, it's a bunch of things about private flight. It's a bunch of things about boating and sailing and fishing and yachting. And wakeboarding,

04:09

and then there's things like classic toy trains,

and then there's things like classic toy trains,

04:12

garden railways,

garden railways,

04:14

trains dot com, and then some, like, astronomy stuff as well, looks like. So this is a lot of things that he he rolled up. He must have found a

trains dot com, and then some, like, astronomy stuff as well, looks like. So this is a lot of things that he he rolled up. He must have found a

04:23

a kind of repeatable rinse and repeat model. It says here that he buys them for three to five x EBIT as his typical range.

a kind of repeatable rinse and repeat model. It says here that he buys them for three to five x EBIT as his typical range.

04:30

And

And

04:30

Was he using debt? Was he using revenue from the business? What what was he, our cash flows from the business? How was he buying these? I think he got a bunch of friends to invest. But I don't know exactly. He's gonna come on the pot. I asked him to come on to explain this strategy. But what he did was there's a bunch of companies that own tons and tons of magazine titles. So

Was he using debt? Was he using revenue from the business? What what was he, our cash flows from the business? How was he buying these? I think he got a bunch of friends to invest. But I don't know exactly. He's gonna come on the pot. I asked him to come on to explain this strategy. But what he did was there's a bunch of companies that own tons and tons of magazine titles. So

04:47

Meredith Corporation

Meredith Corporation

04:48

owns owns, like, Martha Stewart magazine. And then I think there's, like, Rodale, Rodail, and then there's Bonner. And there's all these companies that old family companies that have been in business since the thirties or forties, whatever. And they've got these publications that are just sitting there, and they're like,

owns owns, like, Martha Stewart magazine. And then I think there's, like, Rodale, Rodail, and then there's Bonner. And there's all these companies that old family companies that have been in business since the thirties or forties, whatever. And they've got these publications that are just sitting there, and they're like,

05:03

just take them. And and and so he could buy them, like, five or ten at a time, or, you know, I think he's tweeted out that he's bought, like, thirteen the other day. And so he buys them in bulk a little bit.

just take them. And and and so he could buy them, like, five or ten at a time, or, you know, I think he's tweeted out that he's bought, like, thirteen the other day. And so he buys them in bulk a little bit.

05:12

I mean, this is super impressive. The the side hustle that's now fifty million a fifty million a year profitable,

I mean, this is super impressive. The the side hustle that's now fifty million a fifty million a year profitable,

05:20

really, really specific.

really, really specific.

05:22

You know, expensive hobby magazines.

You know, expensive hobby magazines.

05:24

And then basically has a better business model. Sounds like. Right? So it sounds like the old business model was It's a media business, so we make money on the media. He's like, no. No. It's a media business. So we're gonna use media to acquire customers for a much more valuable

And then basically has a better business model. Sounds like. Right? So it sounds like the old business model was It's a media business, so we make money on the media. He's like, no. No. It's a media business. So we're gonna use media to acquire customers for a much more valuable

05:37

business model, you know, for example, with the flying thing, you know, they're selling these homes on this plot of land for, like, a couple million bucks each. I think you said what? Seven million bucks to buy that that three hundred acre bottle. Something like that. Yeah. So roughly, you know,

business model, you know, for example, with the flying thing, you know, they're selling these homes on this plot of land for, like, a couple million bucks each. I think you said what? Seven million bucks to buy that that three hundred acre bottle. Something like that. Yeah. So roughly, you know,

05:52

let let's even round it million bucks to buy the thing, but then they're selling each home at two million bucks. They sold fifty homes. Right? It's not, you know, just rough numbers.

let let's even round it million bucks to buy the thing, but then they're selling each home at two million bucks. They sold fifty homes. Right? It's not, you know, just rough numbers.

06:00

I don't know how many they sold, but they sold enough that it's worthwhile. And it's a beautiful place, piece of land. And on flying magazine, they're they're also if you follow Preston Holland, He's the CEO of Fly Magazine.

I don't know how many they sold, but they sold enough that it's worthwhile. And it's a beautiful place, piece of land. And on flying magazine, they're they're also if you follow Preston Holland, He's the CEO of Fly Magazine.

06:11

Yeah. He's brokering

Yeah. He's brokering

06:12

jets. He's selling jets. He's like, alright. Yeah.

jets. He's selling jets. He's like, alright. Yeah.

06:16

On Twitter, He goes, we've got this jet for sale. It's seven million dollars. He's a good dude. We text all the time. And, like, he almost gets me to buy a plane Like, I'm like, dude, do you stay away from me, man? I'm not gonna buy a plane just because you, you know, you've made a funny joke in this day. Dude Nick Huber, I'm gonna do a this is a Hampton plug. Nick Huber and and Craig are in the same Hampton group, they bought a plane they bought a plane together. And so the now Nick owns the plane, I guess they, like,

On Twitter, He goes, we've got this jet for sale. It's seven million dollars. He's a good dude. We text all the time. And, like, he almost gets me to buy a plane Like, I'm like, dude, do you stay away from me, man? I'm not gonna buy a plane just because you, you know, you've made a funny joke in this day. Dude Nick Huber, I'm gonna do a this is a Hampton plug. Nick Huber and and Craig are in the same Hampton group, they bought a plane they bought a plane together. And so the now Nick owns the plane, I guess they, like,

06:41

I don't know how you buy a plane together, but they did it. But they but Preston's selling these, like, ten million dollar jets online. It's or on Twitter. It's crazy. Nick shared the economics of buying these small planes, by the way. We should we should ask him for permission to, to share the numbers like. We bought it for X, Here's how much it costs to do each flight. Here's how the rules work because it's kind of a time share. It's like him and six other guys or whatever bought the plane. And,

I don't know how you buy a plane together, but they did it. But they but Preston's selling these, like, ten million dollar jets online. It's or on Twitter. It's crazy. Nick shared the economics of buying these small planes, by the way. We should we should ask him for permission to, to share the numbers like. We bought it for X, Here's how much it costs to do each flight. Here's how the rules work because it's kind of a time share. It's like him and six other guys or whatever bought the plane. And,

07:04

And so you pay for, like, the pie the pilot and the fuel when you need it, but then you just pay, like, an ongoing basis. But then you got this tax benefit of buying a plane And so how how how does it what does it all work out to? What does the cost per flight ultimately work out to? He's he's shared the numbers with me before. So we should we should do a segment on here talking about that. But isn't this crazy that this is this guy's side thing and how amazing it is? It's pretty I don't think it's about to be his main thing. It's what I'm hearing. Well, what's crazy here's kind of a takeaway, which is alright. So most people couldn't imagine this being their main thing. When you get into business like him and you have some success, with freightwaves. And you start seeing, like, how things work. It's like you get these, like, weird, like, unlocking moments where you don't see certain things as risk. So I've never bought a business before. I see buying a business. I'm like, that's really risky. But he's like, no. Like, I've done it enough times that I know how to unlock value. And I don't think this is risky because we're gonna do this, this, this, and this. And it really is a confidence game as much as it is a knowledge game. But it's pretty amazing how he's been able to pull this off. I'm super impressed by this. This is one of my favorite, kind of, like, businesses that you brought to the to the pod, to the people's attention,

And so you pay for, like, the pie the pilot and the fuel when you need it, but then you just pay, like, an ongoing basis. But then you got this tax benefit of buying a plane And so how how how does it what does it all work out to? What does the cost per flight ultimately work out to? He's he's shared the numbers with me before. So we should we should do a segment on here talking about that. But isn't this crazy that this is this guy's side thing and how amazing it is? It's pretty I don't think it's about to be his main thing. It's what I'm hearing. Well, what's crazy here's kind of a takeaway, which is alright. So most people couldn't imagine this being their main thing. When you get into business like him and you have some success, with freightwaves. And you start seeing, like, how things work. It's like you get these, like, weird, like, unlocking moments where you don't see certain things as risk. So I've never bought a business before. I see buying a business. I'm like, that's really risky. But he's like, no. Like, I've done it enough times that I know how to unlock value. And I don't think this is risky because we're gonna do this, this, this, and this. And it really is a confidence game as much as it is a knowledge game. But it's pretty amazing how he's been able to pull this off. I'm super impressed by this. This is one of my favorite, kind of, like, businesses that you brought to the to the pod, to the people's attention,

08:11

and, really, really impressive what he's done. Where do you think this goes? What what do you think he's gonna do? And and what does he do for the boating ones? Like, is he doing the same thing? He's selling boats? Or what what is he doing to make the business work out of those?

and, really, really impressive what he's done. Where do you think this goes? What what do you think he's gonna do? And and what does he do for the boating ones? Like, is he doing the same thing? He's selling boats? Or what what is he doing to make the business work out of those?

08:24

I don't know. I mean

I don't know. I mean

08:26

I don't think he knows yet. I'm not sure. He hasn't shared it publicly, but I guess you could do similar things where you have a marina. I mean, have you ever, like, like, my parents used to have boats? And I know that they they would spend, like, five hundred to a thousand dollars a month on a on a boats slip rental. And it became it became a community where we would hang out and stuff like that. I something like that. I I'm not sure what he's gonna do selling boats. I mean, not sure how he's gonna pull it off, but there's, like, plenty of options. Alright. Everyone really quick. If you've heard this podcast before, you know that Sean and I think that the most important skill set you need in business is copywriting. And so what we did was we went through all of the podcasts that we've done. It's like hundred of them, and we found all the best copywriting tips, our resources, our frameworks, our templates. We aggregated all of them into one simple document so you can it all and get everything that we've ever talked about with copywriting. It's in the link below. It's awesome. Check it out. Should we call this Preston guide right now? Just get him on here to, to explain this. Yeah. Actually, call them right now and put it on speaker phone. Yo.

I don't think he knows yet. I'm not sure. He hasn't shared it publicly, but I guess you could do similar things where you have a marina. I mean, have you ever, like, like, my parents used to have boats? And I know that they they would spend, like, five hundred to a thousand dollars a month on a on a boats slip rental. And it became it became a community where we would hang out and stuff like that. I something like that. I I'm not sure what he's gonna do selling boats. I mean, not sure how he's gonna pull it off, but there's, like, plenty of options. Alright. Everyone really quick. If you've heard this podcast before, you know that Sean and I think that the most important skill set you need in business is copywriting. And so what we did was we went through all of the podcasts that we've done. It's like hundred of them, and we found all the best copywriting tips, our resources, our frameworks, our templates. We aggregated all of them into one simple document so you can it all and get everything that we've ever talked about with copywriting. It's in the link below. It's awesome. Check it out. Should we call this Preston guide right now? Just get him on here to, to explain this. Yeah. Actually, call them right now and put it on speaker phone. Yo.

09:28

Preston, you're live on the podcast right now. What's going on?

Preston, you're live on the podcast right now. What's going on?

09:33

Dude, we are talking about flying, and we're talking about Firecrown, and I'm blown away. I didn't know about Firecrown. I only knew about flying, and Sam is telling me about the the growth of this thing. I got two questions for you.

Dude, we are talking about flying, and we're talking about Firecrown, and I'm blown away. I didn't know about Firecrown. I only knew about flying, and Sam is telling me about the the growth of this thing. I got two questions for you.

09:46

Number one, when you guys started this, was this the plan, or you guys sort of stumbled into, oh, wow. This might be bigger and better than we thought.

Number one, when you guys started this, was this the plan, or you guys sort of stumbled into, oh, wow. This might be bigger and better than we thought.

09:55

So when Craig called me

So when Craig called me

09:57

in twenty twenty one, it was a lifestyle

in twenty twenty one, it was a lifestyle

10:00

side help, basically side hustle. He's like, hey. You wanna come out and run this? I asked him, I was like, why about a magazine?

side help, basically side hustle. He's like, hey. You wanna come out and run this? I asked him, I was like, why about a magazine?

10:06

You know, I can't tell you last time I read a magazine. And,

You know, I can't tell you last time I read a magazine. And,

10:10

He was like, well, it's just gonna be kind of like a side hobby, Freeways is really my business, but,

He was like, well, it's just gonna be kind of like a side hobby, Freeways is really my business, but,

10:15

yeah, keep it small. And,

yeah, keep it small. And,

10:18

But if you if you know anything about Craig as a person, he can't he that's not in his nature. So all of a sudden, it, you know, we started

But if you if you know anything about Craig as a person, he can't he that's not in his nature. So all of a sudden, it, you know, we started

10:26

rolling stuff up as we saw opportunities. And, you know, now it's ballooned up into, I mean, we're two hundred and fifty seven employees.

rolling stuff up as we saw opportunities. And, you know, now it's ballooned up into, I mean, we're two hundred and fifty seven employees.

10:34

The side hustle has two hundred fifty employees. Alright. Amazing.

The side hustle has two hundred fifty employees. Alright. Amazing.

10:37

And,

And,

10:38

tell can you can you give a little bit of the a peek of the because Sam has a bunch of the numbers of FireCrown because I think Craig tweeted out. But can you talk about the thing you guys did where you basically bought the the land and then you started building a neighborhood on top of it? So really, what we did was we let the content inform,

tell can you can you give a little bit of the a peek of the because Sam has a bunch of the numbers of FireCrown because I think Craig tweeted out. But can you talk about the thing you guys did where you basically bought the the land and then you started building a neighborhood on top of it? So really, what we did was we let the content inform,

10:55

the commercial decisions that we made. Right? So

the commercial decisions that we made. Right? So

10:58

we

we

10:59

had an idea to kind of build an airport. We're like, that'd be cool.

had an idea to kind of build an airport. We're like, that'd be cool.

11:03

You know, we there's it's hard to find hangar space around Chattanooga, and so as we were looking at I I always tell myself that too. Where's the where's the hanger space in Chattanooga?

You know, we there's it's hard to find hangar space around Chattanooga, and so as we were looking at I I always tell myself that too. Where's the where's the hanger space in Chattanooga?

11:13

Yeah. Right. Exactly. Well, so we've got three airports and each of them have a waitlist of, like, seven to ten years long. And so we're like, well, I guess we're gonna have to build a airport if we're gonna be able to get hangar space for any airplanes

Yeah. Right. Exactly. Well, so we've got three airports and each of them have a waitlist of, like, seven to ten years long. And so we're like, well, I guess we're gonna have to build a airport if we're gonna be able to get hangar space for any airplanes

11:26

you know, that we

you know, that we

11:28

get on demo or whatever, build we we wanted to build a a a media center on a runway. And you know, every airport was like, yeah, good luck. It's gonna take at least ten years. So we said, hey, let's build her in runway.

get on demo or whatever, build we we wanted to build a a a media center on a runway. And you know, every airport was like, yeah, good luck. It's gonna take at least ten years. So we said, hey, let's build her in runway.

11:41

To build a runway, we should you know, do something unique.

To build a runway, we should you know, do something unique.

11:45

These fine communities are interesting. And we started writing about it and realized that, like, there's really

These fine communities are interesting. And we started writing about it and realized that, like, there's really

11:50

high performing content, like, user, you know, from a from a Google analytics standpoint, it's like, you know, we could see the the content

high performing content, like, user, you know, from a from a Google analytics standpoint, it's like, you know, we could see the the content

11:58

being engaged with, and we're like, okay. People actually care about this. They care about air parks. And so we said, okay. Well, let's let's go ahead and let's build an air park. We announced it. On the land, fifty hundred acres,

being engaged with, and we're like, okay. People actually care about this. They care about air parks. And so we said, okay. Well, let's let's go ahead and let's build an air park. We announced it. On the land, fifty hundred acres,

12:09

about forty five minutes outside of Chattanooga, Tennessee,

about forty five minutes outside of Chattanooga, Tennessee,

12:12

and through advertising in our own magazine and said, alright. Well, will probably be like a five to seven year project before we get started,

and through advertising in our own magazine and said, alright. Well, will probably be like a five to seven year project before we get started,

12:21

you know, kind of underwriting and

you know, kind of underwriting and

12:24

we had we we basically met our three year kind of pro form a in pre reservations in, like, the first three months. So we're like, alright, there's there's definitely demand here. And so, so, yeah, so we're set to break ground. We just finished,

we had we we basically met our three year kind of pro form a in pre reservations in, like, the first three months. So we're like, alright, there's there's definitely demand here. And so, so, yeah, so we're set to break ground. We just finished,

12:40

some regulatory

some regulatory

12:41

stuff that the government loves to tell you where water should go. And so we just finished that and, are set to break ground promptly here in the next thirty days. Can you give us a sense of the numbers? What what can you share on the numbers? So, like, you know, how much do you guys buy the land for? How'd you finance this whole, like, big construction endeavor?

stuff that the government loves to tell you where water should go. And so we just finished that and, are set to break ground promptly here in the next thirty days. Can you give us a sense of the numbers? What what can you share on the numbers? So, like, you know, how much do you guys buy the land for? How'd you finance this whole, like, big construction endeavor?

12:58

Yeah. For sure. So the,

Yeah. For sure. So the,

13:01

we bought the acreage around fifteen hundred dollars, fifteen hundred one five in, in acre.

we bought the acreage around fifteen hundred dollars, fifteen hundred one five in, in acre.

13:08

So it was, you know, it was really a cheap land. It's also in an opportunity zone. So there's a lot of tax incentives for making investments in that area.

So it was, you know, it was really a cheap land. It's also in an opportunity zone. So there's a lot of tax incentives for making investments in that area.

13:17

And then we are

And then we are

13:19

we've taken twenty five million dollars of pre deposits

we've taken twenty five million dollars of pre deposits

13:22

So that's people basically sending us a percentage of the deposit.

So that's people basically sending us a percentage of the deposit.

13:27

You basically funded it through the pre the the deposit. Kinda like how Tesla does with the trucks and all that before they before they build the trucks, they they take the deposits and they use that to to basically finance the the manufacturing.

You basically funded it through the pre the the deposit. Kinda like how Tesla does with the trucks and all that before they before they build the trucks, they they take the deposits and they use that to to basically finance the the manufacturing.

13:38

If you if you've got those deposits, it proves to the banks, you can go to the bank and basically say, okay. Look, we've got you know, twenty five million dollars of of these lots pre sold to, like, you know, that represents future cash flows of twenty five million dollars. And they say, oh, okay. So let's say, you know, using round numbers, let's say round one of the infrastructure costs, I don't know, ten or fifteen million dollars. Thanks gonna go, oh, okay. Well, you've got twenty five million dollars represented of of future sales.

If you if you've got those deposits, it proves to the banks, you can go to the bank and basically say, okay. Look, we've got you know, twenty five million dollars of of these lots pre sold to, like, you know, that represents future cash flows of twenty five million dollars. And they say, oh, okay. So let's say, you know, using round numbers, let's say round one of the infrastructure costs, I don't know, ten or fifteen million dollars. Thanks gonna go, oh, okay. Well, you've got twenty five million dollars represented of of future sales.

14:08

So that, you know, ten to fifteen million dollars of phase one infrastructure

So that, you know, ten to fifteen million dollars of phase one infrastructure

14:12

is a super low risk bet for them.

is a super low risk bet for them.

14:15

Nice. And then are you guys,

Nice. And then are you guys,

14:17

bootstrapped, or did you raise money to to buy all these magazines? How did you do it?

bootstrapped, or did you raise money to to buy all these magazines? How did you do it?

14:22

Yeah. So we have we've been really fortunate. You know, since we've gotten some private capital behind us,

Yeah. So we have we've been really fortunate. You know, since we've gotten some private capital behind us,

14:28

that is patient, which is really key. Right? It's not venture.

that is patient, which is really key. Right? It's not venture.

14:32

It's, it's more, you know, patient capital that says, okay, you know, we're gonna take a fifteen year time horizon, twenty year, thirty year time horizon,

It's, it's more, you know, patient capital that says, okay, you know, we're gonna take a fifteen year time horizon, twenty year, thirty year time horizon,

14:41

and then actually go and grow this thing. We got some capital behind us, but we didn't have to go raise, you know, venture

and then actually go and grow this thing. We got some capital behind us, but we didn't have to go raise, you know, venture

14:48

or, you know, private equity or anything like that that's kinda Yeah. How we don't have a ticking time. Basically, we don't have a ticking time bomb waiting for us to sell in seven or ten years that have hundreds of valuation. Is the, you know, you talked about the Google Analytics. Is this actually a print business, or is it it's a online, you know, a media site, a blog that has print as, like, a vanity piece. Which which one what is the business actually?

or, you know, private equity or anything like that that's kinda Yeah. How we don't have a ticking time. Basically, we don't have a ticking time bomb waiting for us to sell in seven or ten years that have hundreds of valuation. Is the, you know, you talked about the Google Analytics. Is this actually a print business, or is it it's a online, you know, a media site, a blog that has print as, like, a vanity piece. Which which one what is the business actually?

15:13

So when we buy these when we buy these BD assets,

So when we buy these when we buy these BD assets,

15:18

What we have to do is we we Joe in it, and and it really is a shift in mindset

What we have to do is we we Joe in it, and and it really is a shift in mindset

15:23

and a shift in product velocity at a lot of these companies.

and a shift in product velocity at a lot of these companies.

15:27

We are we tend to buy print magazines that happen to have a website where it's like, okay, we take our print content and then we post it online.

We are we tend to buy print magazines that happen to have a website where it's like, okay, we take our print content and then we post it online.

15:37

And so, you know, when when you go in and you acquire these, you kinda have to, you know, kind of level set with everybody and say, look, you know, digital is its own product.

And so, you know, when when you go in and you acquire these, you kinda have to, you know, kind of level set with everybody and say, look, you know, digital is its own product.

15:46

And it's gonna, you know, we we split out the P and Ls, right, so digital has its own P and L and print has its own P and L, and we make P and oh, we, you know, we make print a product as opposed to

And it's gonna, you know, we we split out the P and Ls, right, so digital has its own P and L and print has its own P and L, and we make P and oh, we, you know, we make print a product as opposed to

15:57

the the core business. If that makes sense, Gotcha.

the the core business. If that makes sense, Gotcha.

16:01

So it's like and and the other thing here's the thing. And it's and look,

So it's like and and the other thing here's the thing. And it's and look,

16:04

we came in either Craig and I, day one, we're like, alright. We're killing print because, like,

we came in either Craig and I, day one, we're like, alright. We're killing print because, like,

16:10

I I don't know. Sean Sam, I don't know if you guys have a lot of print magazines, but, like,

I I don't know. Sean Sam, I don't know if you guys have a lot of print magazines, but, like,

16:16

I didn't. I don't have I don't have a lot of print magazine subscription. That's just, you know, not I'm thirty years old. Like, I you know, that's that's not how I consume media.

I didn't. I don't have I don't have a lot of print magazine subscription. That's just, you know, not I'm thirty years old. Like, I you know, that's that's not how I consume media.

16:25

And so, you know, we went in to shut down print, but there's something about being in print that Neil Vogel talks about this at doc dash Meredith. Well that he's had a similar experience. So it's not you know, this is not a unique perspective. Like, we're we're not the only ones that are thinking this, but There's something about having a long a feeling of longevity and a perception of longevity in having a print product, whether that's with advertisers,

And so, you know, we went in to shut down print, but there's something about being in print that Neil Vogel talks about this at doc dash Meredith. Well that he's had a similar experience. So it's not you know, this is not a unique perspective. Like, we're we're not the only ones that are thinking this, but There's something about having a long a feeling of longevity and a perception of longevity in having a print product, whether that's with advertisers,

16:49

or it's with audience or readers

or it's with audience or readers

16:52

that you just don't get with a blog. You don't it doesn't feel and and, you know, you think about a brand like dwell

that you just don't get with a blog. You don't it doesn't feel and and, you know, you think about a brand like dwell

16:59

is a great example. Like, they have a print magazine, and it, for some reason, feels more legitimate

is a great example. Like, they have a print magazine, and it, for some reason, feels more legitimate

17:05

than

than

17:06

architectural

architectural

17:07

blog x y z dot com. Right? Because it has a magazine. So it's like we we use it as kind of a staying power, but, you know, we also recognize the, like, the world's going to show. Yeah. You also mentioned you, like, you leave the you you custled your way to get the magazine in every, like, private chartered plane, right, just to get get the right rich people to be reading the thing. Because you, like, left it on the table in in those planes. Is that right?

blog x y z dot com. Right? Because it has a magazine. So it's like we we use it as kind of a staying power, but, you know, we also recognize the, like, the world's going to show. Yeah. You also mentioned you, like, you leave the you you custled your way to get the magazine in every, like, private chartered plane, right, just to get get the right rich people to be reading the thing. Because you, like, left it on the table in in those planes. Is that right?

17:32

Yeah. Exactly. So we we send them unsolicited

Yeah. Exactly. So we we send them unsolicited

17:37

to a lot of FPOs across the country. Some are solicited. You know, there's about eighteen hundred or so that are solicited that we've got an agreement with the distribution company

to a lot of FPOs across the country. Some are solicited. You know, there's about eighteen hundred or so that are solicited that we've got an agreement with the distribution company

17:46

But the other ones are not solicited, but they they feel like we've created a product that has so much value

But the other ones are not solicited, but they they feel like we've created a product that has so much value

17:52

that they feel as though it's something that they want to play on the tables. People go and pick them up. And I mean, we've had conversations with,

that they feel as though it's something that they want to play on the tables. People go and pick them up. And I mean, we've had conversations with,

18:00

you know, some pretty wild folks that were like, oh, yeah. I was in the FBO, and I read your back as yet, and I wanna collaborate on your real estate project.

you know, some pretty wild folks that were like, oh, yeah. I was in the FBO, and I read your back as yet, and I wanna collaborate on your real estate project.

18:09

And so it's like,

And so it's like,

18:10

Okay. Like, how do you how do you quantify, like, an ROI on that? Like, I'm, you know, hard hard to, like, do your last touch attribution, except for, like, Oh, yeah. You read about our project in our magazine that we put in the FBO,

Okay. Like, how do you how do you quantify, like, an ROI on that? Like, I'm, you know, hard hard to, like, do your last touch attribution, except for, like, Oh, yeah. You read about our project in our magazine that we put in the FBO,

18:22

and now we have, you know, really cool partners,

and now we have, you know, really cool partners,

18:25

you know, on the real estate project.

you know, on the real estate project.

18:27

Gotcha. Well, Preston, you're the man. This is a crazy business. Thanks for,

Gotcha. Well, Preston, you're the man. This is a crazy business. Thanks for,

18:31

the, on the on the spot, call in.

the, on the on the spot, call in.

18:34

Yeah, man. Long time listener, first time caller. So,

Yeah, man. Long time listener, first time caller. So,

18:38

first first ever caller we've ever had. Yeah. First ever caller, actually. Alright, man. Take care. Alright, too, man.

first first ever caller we've ever had. Yeah. First ever caller, actually. Alright, man. Take care. Alright, too, man.

18:44

That was awesome.

That was awesome.

18:47

Alright. We changed the show.

Alright. We changed the show.

18:49

That was cool. I like him. Alright. Well, I mean, we got our information. That's awesome. Congratulations to Craig and Preston. I'm happy that he was transparent.

That was cool. I like him. Alright. Well, I mean, we got our information. That's awesome. Congratulations to Craig and Preston. I'm happy that he was transparent.

18:57

Yeah. Really cool. Alright. What else we got?

Yeah. Really cool. Alright. What else we got?

19:00

You got one. You got one? Yeah. Let me do one. Okay. Let's stick to the print Let's stick to the print idea,

You got one. You got one? Yeah. Let me do one. Okay. Let's stick to the print Let's stick to the print idea,

19:06

but take a different angle. So

but take a different angle. So

19:09

the New York Times.

the New York Times.

19:11

The New York Times you think about it, you think this prestigious newspaper, it's all about the news. They'll they want you to think it's all about the truth that's their marketing.

The New York Times you think about it, you think this prestigious newspaper, it's all about the news. They'll they want you to think it's all about the truth that's their marketing.

19:21

The New York Times has more in common with Zinga than it does the truth. New York Times is a games company,

The New York Times has more in common with Zinga than it does the truth. New York Times is a games company,

19:27

and

and

19:28

this is the the numbers behind the New York Times and their gaming products is pretty amazing. So I don't know. Do you ever play their games? I I'm a, like, a pig subscriber to their games? Well, I know they have wordle, and I played that one. They bought wordle.

this is the the numbers behind the New York Times and their gaming products is pretty amazing. So I don't know. Do you ever play their games? I I'm a, like, a pig subscriber to their games? Well, I know they have wordle, and I played that one. They bought wordle.

19:41

The guy had made, like, like, made wordle for his girlfriend or something like that, then it took off, and then they ended up buying it. But, like, I have a twenty two days twenty two day street going right now on the crossword puzzle, on the mini crossword, and we're

The guy had made, like, like, made wordle for his girlfriend or something like that, then it took off, and then they ended up buying it. But, like, I have a twenty two days twenty two day street going right now on the crossword puzzle, on the mini crossword, and we're

19:55

I think it's, like, six ninety nine a month or something like that. And what's the revenue on that?

I think it's, like, six ninety nine a month or something like that. And what's the revenue on that?

19:59

Take a guess. A hundred million dollars.

Take a guess. A hundred million dollars.

20:03

A lot more than that. So the New York Times, just in q four,

A lot more than that. So the New York Times, just in q four,

20:08

their digital only subscribers

their digital only subscribers

20:10

was two hundred eighty nine million, which is most all their games. It's a little bit of their cooking product as well, but it's, like, mostly their games revenue.

was two hundred eighty nine million, which is most all their games. It's a little bit of their cooking product as well, but it's, like, mostly their games revenue.

20:17

And so that's three hundred million in the quarter.

And so that's three hundred million in the quarter.

20:20

Their their,

Their their,

20:22

gaming basically has pushed their annual subscriptions over a billion dollars a year for the first time ever. And they released this chart that was basically, like, the New York Times bundle. So you have

gaming basically has pushed their annual subscriptions over a billion dollars a year for the first time ever. And they released this chart that was basically, like, the New York Times bundle. So you have

20:33

the news.

the news.

20:34

You have their cooking section, their cooking product. You have the athletic, which is their sports, the sports thing they bought, and then you have games. So take a look at that that chart right there. You could see that games you know, few years ago My god. Few years ago games was roughly fifteen percent of time spent. Now it's over fifty percent of the time spent. In their bundle is on the games product, which is pretty wild. It's more time spent on games than on news. It has overtaken news.

You have their cooking section, their cooking product. You have the athletic, which is their sports, the sports thing they bought, and then you have games. So take a look at that that chart right there. You could see that games you know, few years ago My god. Few years ago games was roughly fifteen percent of time spent. Now it's over fifty percent of the time spent. In their bundle is on the games product, which is pretty wild. It's more time spent on games than on news. It has overtaken news.

21:01

And so you have this thing that is,

And so you have this thing that is,

21:03

just fascinating. It was, like, you know, they used to in the newspaper have a little crossword section, a little Sidoku section.

just fascinating. It was, like, you know, they used to in the newspaper have a little crossword section, a little Sidoku section.

21:10

And what they did was as they transformed the product, they unbundled it. They made it a standalone thing. And what's cool about it is almost every game on my phone is just trying to, like, It's, like,

And what they did was as they transformed the product, they unbundled it. They made it a standalone thing. And what's cool about it is almost every game on my phone is just trying to, like, It's, like,

21:22

needy. It's like, how do I take all of your time and all of your money? And the New York Times thing is works way different. It's you have one a day. There's one mini crossword a day, one crossword a day, and one,

needy. It's like, how do I take all of your time and all of your money? And the New York Times thing is works way different. It's you have one a day. There's one mini crossword a day, one crossword a day, and one,

21:33

you know, one wordle a day. You do that every day?

you know, one wordle a day. You do that every day?

21:37

Every day. Me and my daughter do it together. We play wordle together and then I do the crossword on my own. The crossword limiting crossword literally takes under one minute. Like, my average time is about fifty seven seconds to finish It's a very short game. And so I'm able to, like, play a game and have that dopamine to hit without it, like, taking away from my life by being like, oh, great. Now I'm getting hours on this. Hey, baby. What's the it starts with an e. What's the disease that brought down Chipotle in two thousand and nine?

Every day. Me and my daughter do it together. We play wordle together and then I do the crossword on my own. The crossword limiting crossword literally takes under one minute. Like, my average time is about fifty seven seconds to finish It's a very short game. And so I'm able to, like, play a game and have that dopamine to hit without it, like, taking away from my life by being like, oh, great. Now I'm getting hours on this. Hey, baby. What's the it starts with an e. What's the disease that brought down Chipotle in two thousand and nine?

22:02

Oh, you're right. Ebola. That's it.

Oh, you're right. Ebola. That's it.

22:05

Yeah. Well, she plays wordle with me, and, she gets to type, and then I come up with the words. And,

Yeah. Well, she plays wordle with me, and, she gets to type, and then I come up with the words. And,

22:11

And so, you know, these the games are really fun. It's a really well done app, and it's shocking to me how successful this thing has been. And so wanna just read you a couple things. So it says, basically, a few years ago, the time spun off cooking crossword offerings to sandal and products. Meaning, you could subscribe to either without being a New York Times new subscribers seemed like an odd choice because the internet already had millions of games and millions of free recipe apps. But what they did was they

And so, you know, these the games are really fun. It's a really well done app, and it's shocking to me how successful this thing has been. And so wanna just read you a couple things. So it says, basically, a few years ago, the time spun off cooking crossword offerings to sandal and products. Meaning, you could subscribe to either without being a New York Times new subscribers seemed like an odd choice because the internet already had millions of games and millions of free recipe apps. But what they did was they

22:35

just digitized decades of old crossword puzzles and old cooking recipes that they already had. So it's just kind of like remnant inventory that they weren't using.

just digitized decades of old crossword puzzles and old cooking recipes that they already had. So it's just kind of like remnant inventory that they weren't using.

22:42

And they took that stranded asset, and they turned it into, like, a viable asset, a live asset, and then they just, like, modernized this. They put it in an app. They made it, like, work really well.

And they took that stranded asset, and they turned it into, like, a viable asset, a live asset, and then they just, like, modernized this. They put it in an app. They made it, like, work really well.

22:52

And,

And,

22:52

super simple app, and it basically breathes new life into the company. The company has has grown like crazy. So now there's, like,

super simple app, and it basically breathes new life into the company. The company has has grown like crazy. So now there's, like,

22:59

Now between Crossword and cooking, check this graph out. So we just start calling the New York Times a gaming company? Yeah. Exactly.

Now between Crossword and cooking, check this graph out. So we just start calling the New York Times a gaming company? Yeah. Exactly.

23:06

You guys run those great games. Did you have, like, a sick blog that you talk about, like, the trump trial? I love that too. The side hustle? Yeah.

You guys run those great games. Did you have, like, a sick blog that you talk about, like, the trump trial? I love that too. The side hustle? Yeah.

23:13

I love that little blog you guys They have over and this was in twenty twenty. So this is years ago. They had one point three million paying subscribers that paid on average, you know, forty dollars plus a year.

I love that little blog you guys They have over and this was in twenty twenty. So this is years ago. They had one point three million paying subscribers that paid on average, you know, forty dollars plus a year.

23:24

On the on the games and cooking product, which is mostly games. And they're not alone. So that so that's the New York Times.

On the on the games and cooking product, which is mostly games. And they're not alone. So that so that's the New York Times.

23:30

Then I saw,

Then I saw,

23:31

know, I opened up the YouTube app. I don't do you use the YouTube app? Because I opened it up, and I saw some, like, barely use that. Yeah. Did you see their new games product?

know, I opened up the YouTube app. I don't do you use the YouTube app? Because I opened it up, and I saw some, like, barely use that. Yeah. Did you see their new games product?

23:39

Geek of this.

Geek of this.

23:41

If I open up YouTube,

If I open up YouTube,

23:43

these are games. And it says play now, and you don't have to download anything. Right? So it's like, I click play. And now I'm just I'm gonna be in this game. And this is a popular mobile game. This, this thing called States.

these are games. And it says play now, and you don't have to download anything. Right? So it's like, I click play. And now I'm just I'm gonna be in this game. And this is a popular mobile game. This, this thing called States.

23:55

It's like a little, like, risk type of game.

It's like a little, like, risk type of game.

23:58

And so they have, like, twenty of these games. It says, instant games, no no downloads. So YouTube's doing it now. And then LinkedIn the other day, announced

And so they have, like, twenty of these games. It says, instant games, no no downloads. So YouTube's doing it now. And then LinkedIn the other day, announced

24:07

LinkedIn games. So they have three games on top of LinkedIn.

LinkedIn games. So they have three games on top of LinkedIn.

24:11

There's, like, a wordle variant. There's, like, a whatever. There's, like, they they took popular games. They just kinda made their remix of it. And if anybody needs engagement, like, real engagement, it's LinkedIn. Right? LinkedIn's got a billion users.

There's, like, a wordle variant. There's, like, a whatever. There's, like, they they took popular games. They just kinda made their remix of it. And if anybody needs engagement, like, real engagement, it's LinkedIn. Right? LinkedIn's got a billion users.

24:23

And, you know, but, like, There's not a lot of good content on on LinkedIn to do, but this is cool because they basically made it where they have their Sidoku, they have their trivia, they have their word game, And, basically, you can you can see how other people in your company do. So it's, like, they already have the social graph of who's in your company and who are you connected to. When you play the game, you could see how you compare to people you already know because they already have that social layer built in of, like, you know, kinda competing among year. Who do you think they stole this from? Because, like, imagine

And, you know, but, like, There's not a lot of good content on on LinkedIn to do, but this is cool because they basically made it where they have their Sidoku, they have their trivia, they have their word game, And, basically, you can you can see how other people in your company do. So it's, like, they already have the social graph of who's in your company and who are you connected to. When you play the game, you could see how you compare to people you already know because they already have that social layer built in of, like, you know, kinda competing among year. Who do you think they stole this from? Because, like, imagine

24:54

imagine, like,

imagine, like,

24:56

the the meeting where they're bringing this up. It's, like, Hey, Sharon. You got any ideas. What if we,

the the meeting where they're bringing this up. It's, like, Hey, Sharon. You got any ideas. What if we,

25:02

we call it LinkedIn influencers and we get famous people to post? I've been there done that. And then this other person is like, hey, Charlie. What do you got? What if we just put, like, risk in the feed of LinkedIn. You know what I mean? Like, how would you justify doing that? So I don't know if they acquired a company that was doing this. Or if they,

we call it LinkedIn influencers and we get famous people to post? I've been there done that. And then this other person is like, hey, Charlie. What do you got? What if we just put, like, risk in the feed of LinkedIn. You know what I mean? Like, how would you justify doing that? So I don't know if they acquired a company that was doing this. Or if they,

25:20

or if there was just, like, I imagine some product manager that looks like he just got back from NAM, and he's like, I had an idea.

or if there was just, like, I imagine some product manager that looks like he just got back from NAM, and he's like, I had an idea.

25:27

And I got it through. I got the I got the I got my manager to approve. My manager's manager. It went all the way up to the product org. It went through the committee. And it happened, they all said, yes. I get to launch this thing, and, like, in six months, it's gonna die. But I actually think this is actually a good start opportunity.

And I got it through. I got the I got the I got my manager to approve. My manager's manager. It went all the way up to the product org. It went through the committee. And it happened, they all said, yes. I get to launch this thing, and, like, in six months, it's gonna die. But I actually think this is actually a good start opportunity.

25:43

I think that if somebody built the third party LinkedIn games app, like, I don't know fully. I haven't explored the LinkedIn API and, like, what's all possible.

I think that if somebody built the third party LinkedIn games app, like, I don't know fully. I haven't explored the LinkedIn API and, like, what's all possible.

25:51

But if you can hook in and if you could build a game on top of LinkedIn,

But if you can hook in and if you could build a game on top of LinkedIn,

25:55

that's just like a total greenfield opportunity, and LinkedIn will buy it. If you do a good job, if you build the actual games product that's getting engagement there, and you're you don't have to invent the games, just steal the games. And you're basically just saying proven game

that's just like a total greenfield opportunity, and LinkedIn will buy it. If you do a good job, if you build the actual games product that's getting engagement there, and you're you don't have to invent the games, just steal the games. And you're basically just saying proven game

26:09

in new new social graph.

in new new social graph.

26:11

And that's that's the whole business model here.

And that's that's the whole business model here.

26:14

That's pretty insane. I did not see that they were doing this, and that is actually quite smart LinkedIn is that's the behemoth that somehow always works. And so it's quite wise that they're doing this. Yeah. The one that the one that I don't believe in is Netflix is doing games. I don't know if you've ever seen, like, They have a games thing in, like, there's a trivia game you can play in Netflix, but also if you go to the app store and you search Netflix as the game producer,

That's pretty insane. I did not see that they were doing this, and that is actually quite smart LinkedIn is that's the behemoth that somehow always works. And so it's quite wise that they're doing this. Yeah. The one that the one that I don't believe in is Netflix is doing games. I don't know if you've ever seen, like, They have a games thing in, like, there's a trivia game you can play in Netflix, but also if you go to the app store and you search Netflix as the game producer,

26:36

They have, like, fifty game titles. Is I pretty insane how many mobile games that they have? I don't understand this. I don't think it's gonna work. I don't understand the tie between this. But You know, basically secrets out. It's like, yo, games make a lot of money, and people use it all the time.

They have, like, fifty game titles. Is I pretty insane how many mobile games that they have? I don't understand this. I don't think it's gonna work. I don't understand the tie between this. But You know, basically secrets out. It's like, yo, games make a lot of money, and people use it all the time.

26:51

Maybe we too should be in the games market. And that's wild. And I mean, that's what they're trying to do.

Maybe we too should be in the games market. And that's wild. And I mean, that's what they're trying to do.

26:57

That's awesome. Kudos to those guys. I've I've not seen that. I will. Let me do a quick thrill of the shoe. I wanna I wanna promote something, but I'm gonna try and make it extra thrilly. Have you ever thought while you're building stuff? You think to yourself, am I doing this right? Like, I remember being in San Francisco, and I thought, well, you know, Sean's got a fancy office therefore, we have to have a fancy office. Or, you know, this particular CEO said you have to focus on this one thing. So I have to focus on this one thing. So to grow Hampton, we came up with this podcast called MoneyWise, and MoneyWise is basically like a personal finance podcast, but for high net worth people. And I've done eight or nine of the episodes as, like, the temporary host. And I wanna tell you what my biggest takeaway, which is to get wealthy,

That's awesome. Kudos to those guys. I've I've not seen that. I will. Let me do a quick thrill of the shoe. I wanna I wanna promote something, but I'm gonna try and make it extra thrilly. Have you ever thought while you're building stuff? You think to yourself, am I doing this right? Like, I remember being in San Francisco, and I thought, well, you know, Sean's got a fancy office therefore, we have to have a fancy office. Or, you know, this particular CEO said you have to focus on this one thing. So I have to focus on this one thing. So to grow Hampton, we came up with this podcast called MoneyWise, and MoneyWise is basically like a personal finance podcast, but for high net worth people. And I've done eight or nine of the episodes as, like, the temporary host. And I wanna tell you what my biggest takeaway, which is to get wealthy,

27:41

even to spend the money once you're wealthy, there's no one way that people are doing it. There's a lot of different ways that people are doing it. And I've already, like, recorded, I think twelve or fifteen of these. And I had to do nine already for the the the, first season. Dude, it's first of all, it's insane that people reveal all this information. We basically what we do is we have people come on and they reveal their income, their expenses,

even to spend the money once you're wealthy, there's no one way that people are doing it. There's a lot of different ways that people are doing it. And I've already, like, recorded, I think twelve or fifteen of these. And I had to do nine already for the the the, first season. Dude, it's first of all, it's insane that people reveal all this information. We basically what we do is we have people come on and they reveal their income, their expenses,

28:06

exactly what their portfolio looks like. And then, like, we'll dive deep on one topic like parenting order. Are they anonymous or they put their name on it? I have I haven't listened to it. Half and half. So sometimes they're anonymous. And what we do is we change the name, and we and we actually change the voice. And so there's a bunch of people who you who you know of that have been on, but they changed the voice. But then, sometimes, like, the guy from Simple Modern came on, and he's completely,

exactly what their portfolio looks like. And then, like, we'll dive deep on one topic like parenting order. Are they anonymous or they put their name on it? I have I haven't listened to it. Half and half. So sometimes they're anonymous. And what we do is we change the name, and we and we actually change the voice. And so there's a bunch of people who you who you know of that have been on, but they changed the voice. But then, sometimes, like, the guy from Simple Modern came on, and he's completely,

28:26

open about it. And he'll say, here's exactly how much I have in my, bank account. Here's what we have in my index,

open about it. And he'll say, here's exactly how much I have in my, bank account. Here's what we have in my index,

28:32

or in my portfolio. Here's how much income I have. It's insane. That people reveal this amount of information. It's almost scary. And so

or in my portfolio. Here's how much income I have. It's insane. That people reveal this amount of information. It's almost scary. And so

28:41

my big takeaway is one, there's no one way to do it. Two, I'm shocked. That people reveal all this information.

my big takeaway is one, there's no one way to do it. Two, I'm shocked. That people reveal all this information.

28:48

And number three, the more money you get, the more intentional you have to become, because these people will make literally a hundred million dollars and they don't spend any of it. And they're like, I I don't even know what to do with this money. What's been a,

And number three, the more money you get, the more intentional you have to become, because these people will make literally a hundred million dollars and they don't spend any of it. And they're like, I I don't even know what to do with this money. What's been a,

29:01

lesson learned either in

lesson learned either in

29:03

probably in the spending side. So how what is some what's something somebody said about how they spend that you were like, oh, that's a good idea. That's a cool intentional way of going about We talked about giving money away last time. You can't use that one. Use a different one. So I I firmly believe that owning more than one home is a massive pain in the ass. And that's a dream that people wanna have. They wanna have a second or third or sometimes fourth home that a lot of these people have. I think that is a huge Right. Pain in the ass. Place the word home with problem. I have a second problem in Tahoe. I have a third problem in Florida that I go visit once a year.

probably in the spending side. So how what is some what's something somebody said about how they spend that you were like, oh, that's a good idea. That's a cool intentional way of going about We talked about giving money away last time. You can't use that one. Use a different one. So I I firmly believe that owning more than one home is a massive pain in the ass. And that's a dream that people wanna have. They wanna have a second or third or sometimes fourth home that a lot of these people have. I think that is a huge Right. Pain in the ass. Place the word home with problem. I have a second problem in Tahoe. I have a third problem in Florida that I go visit once a year.

29:37

Nice problems.

Nice problems.

29:38

Dude, it's such a pain in the ass is to have that. And and and unilaterally, people seem to regret having multiple homes. And so being intentional about spending money, seems like a huge deal. One rich person one of the very few rich people things that I think is totally worth it, flying private.

Dude, it's such a pain in the ass is to have that. And and and unilaterally, people seem to regret having multiple homes. And so being intentional about spending money, seems like a huge deal. One rich person one of the very few rich people things that I think is totally worth it, flying private.

29:55

I think that is the one thing where actually might live up to the hype when people I think buying a plane, sorry Preston. I don't know if that's worth it, but I think charging a jet as much as you can when absolutely worth it. And, so we're doing this podcast, whatever. It's called money wise. You guys should look it up. I'll tell you quick, quickly.

I think that is the one thing where actually might live up to the hype when people I think buying a plane, sorry Preston. I don't know if that's worth it, but I think charging a jet as much as you can when absolutely worth it. And, so we're doing this podcast, whatever. It's called money wise. You guys should look it up. I'll tell you quick, quickly.

30:11

I, I had this premise to make a hit podcast. I think you need one or more of the following. You either need great production. You need great delivery. You need,

I, I had this premise to make a hit podcast. I think you need one or more of the following. You either need great production. You need great delivery. You need,

30:20

a unique perspective. So unique perspective is, like, LeBron James talking.

a unique perspective. So unique perspective is, like, LeBron James talking.

30:24

Great delivery is typically, like, comedians, and then great production is, like,

Great delivery is typically, like, comedians, and then great production is, like,

30:28

cereal or whatever, like, these, like, wondery things.

cereal or whatever, like, these, like, wondery things.

30:31

My gap in the market that I wanted to exploit was the first one. I think you and I do number two and number three. And I wanted to do number one. And so so far, it appears to be working.

My gap in the market that I wanted to exploit was the first one. I think you and I do number two and number three. And I wanted to do number one. And so so far, it appears to be working.

30:41

So if you're a creator, those are the three the three ways I think to do a podcast. And that's my little pitch on MoneyWise. Congrats. That was good good thrill of show. I liked it.

So if you're a creator, those are the three the three ways I think to do a podcast. And that's my little pitch on MoneyWise. Congrats. That was good good thrill of show. I liked it.

30:51

Alright. Let's do let's do some other ones. Do you have another good one or can I do my AI camera one real quick? Do your AI camera one because I have something funny to tell you. Alright. AI cameras. So I play in this basketball league in San Francisco,

Alright. Let's do let's do some other ones. Do you have another good one or can I do my AI camera one real quick? Do your AI camera one because I have something funny to tell you. Alright. AI cameras. So I play in this basketball league in San Francisco,

31:04

shout out to Ruben Torrenberg, who who hosts this league. He's been hosting it for, like, ten years.

shout out to Ruben Torrenberg, who who hosts this league. He's been hosting it for, like, ten years.

31:08

And,

And,

31:09

It's basically, it's called SFTech hoops, I think it's called. And, basically, it's like people from the tech industry that like to play play basketball.

It's basically, it's called SFTech hoops, I think it's called. And, basically, it's like people from the tech industry that like to play play basketball.

31:16

And for a long time, Rubin, basically, he runs the league with some real heart, and I really appreciate that. Meaning,

And for a long time, Rubin, basically, he runs the league with some real heart, and I really appreciate that. Meaning,

31:23

He makes the teams, he has the league, the the there's the table stakes, what you expect, teams, jerseys, referee score board. Great. But then what he does is every week he writes an email recap with gifts and whatever. He faces like team one took on team three. They were led by Sam Parr. He scored thirteen points. And he had a great buzzer beater blah blah blah. But then in the second half, this is what happened. And so he writes these great updates from the commission. So he writes his own, like, internal newsletter for the thing. The second thing he does is He

He makes the teams, he has the league, the the there's the table stakes, what you expect, teams, jerseys, referee score board. Great. But then what he does is every week he writes an email recap with gifts and whatever. He faces like team one took on team three. They were led by Sam Parr. He scored thirteen points. And he had a great buzzer beater blah blah blah. But then in the second half, this is what happened. And so he writes these great updates from the commission. So he writes his own, like, internal newsletter for the thing. The second thing he does is He

31:50

films it he used to film it, basically, put two tripods with the iPhone on each side, and he would try to afterwards go through and cut a highlight. And highlight is a really generous term because you're talking about out of shape tech dudes.

films it he used to film it, basically, put two tripods with the iPhone on each side, and he would try to afterwards go through and cut a highlight. And highlight is a really generous term because you're talking about out of shape tech dudes.

32:03

Like, I'm I made a game winning shot last week. And in my head and if you asked anybody that I talked to afterwards, this was fucking

Like, I'm I made a game winning shot last week. And in my head and if you asked anybody that I talked to afterwards, this was fucking

32:10

Jordan against the Cavs in eighty nine or whatever. I was I was flying through the air

Jordan against the Cavs in eighty nine or whatever. I was I was flying through the air

32:15

you know, hit the shot at the buzzer. It was amazing. It was, like, just and then I watched the clip, and I was, like,

you know, hit the shot at the buzzer. It was amazing. It was, like, just and then I watched the clip, and I was, like,

32:22

like, you could literally you couldn't fit a book under my feet where I jumped. I was, like, this is ridiculous. This looks slow. This looks terrible. This is, like, a game loser, not a game winner. So highlight is a little bit generous, but either way, he puts the the, you know, the TLC into running the sleep. So he just bought this new thing that

like, you could literally you couldn't fit a book under my feet where I jumped. I was, like, this is ridiculous. This looks slow. This looks terrible. This is, like, a game loser, not a game winner. So highlight is a little bit generous, but either way, he puts the the, you know, the TLC into running the sleep. So he just bought this new thing that

32:41

This is a game changer.

This is a game changer.

32:42

And he bought this AI based camera call. I think it's called VEO. There's a and there's a bunch of these. There's, like, four companies doing this. But VEO, check this out. Basically, it's one camera that you, it's a, like, a smart camera that you post on a on a tripod, tripod.

And he bought this AI based camera call. I think it's called VEO. There's a and there's a bunch of these. There's, like, four companies doing this. But VEO, check this out. Basically, it's one camera that you, it's a, like, a smart camera that you post on a on a tripod, tripod.

32:57

And it does a couple of very basic things. Things that sound trivial, but make a huge difference. So he used to have two iPhones because you needed to record both sides of the court. And, basically, for one iPhone, half the time, when when everybody runs to the other side court, it's just empty.

And it does a couple of very basic things. Things that sound trivial, but make a huge difference. So he used to have two iPhones because you needed to record both sides of the court. And, basically, for one iPhone, half the time, when when everybody runs to the other side court, it's just empty.

33:11

And so then to he could never have, like, a full video of the game because he couldn't get the camera to follow it. Right? He'd have to hire somebody to manually, like, swivel their head and do this. But now with AI, basically, it's one camera that just tracks the ball at all times. So this works in soccer. It works in basketball. It works in football. It just it just tracks the ball and the players and just keeps everything in the center of the frame without having to have a human doing it. The second thing it does is it uploads it all to the cloud. The third thing it does is it live streams at all, which is cool, because now people can watch your games, which like, you know, friends and family could watch games.

And so then to he could never have, like, a full video of the game because he couldn't get the camera to follow it. Right? He'd have to hire somebody to manually, like, swivel their head and do this. But now with AI, basically, it's one camera that just tracks the ball at all times. So this works in soccer. It works in basketball. It works in football. It just it just tracks the ball and the players and just keeps everything in the center of the frame without having to have a human doing it. The second thing it does is it uploads it all to the cloud. The third thing it does is it live streams at all, which is cool, because now people can watch your games, which like, you know, friends and family could watch games.

33:40

The forward thing it does is it could try to cut highlights. So it could basically try to identify

The forward thing it does is it could try to cut highlights. So it could basically try to identify

33:45

a cool moment and then cut the highlights or keep track of stats. Is just getting better and better. These are all software updates from here. The hardware is just camera

a cool moment and then cut the highlights or keep track of stats. Is just getting better and better. These are all software updates from here. The hardware is just camera

33:52

with the with enough, you know, enough of a chip inside that can connect it to the internet, connect it to the AI software. And so these companies are crushing it. Like, they've raised over a hundred million dollars in funding. And it's like some European company. There's four or five competitors. All of them have raised raised a bunch of money. And I think they're all doing really well. So I noticed this at our game.

with the with enough, you know, enough of a chip inside that can connect it to the internet, connect it to the AI software. And so these companies are crushing it. Like, they've raised over a hundred million dollars in funding. And it's like some European company. There's four or five competitors. All of them have raised raised a bunch of money. And I think they're all doing really well. So I noticed this at our game.

34:12

And then my brother-in-law who's got a kid that that plays, like, competitive soccer. She's like, you know, seven years old. And I was like, dude, have you seen this thing? He's like, bro, it's on every field. Like, this is, like, you can't go to youth soccer now and not, like, every single field has one at And so I think the same way that, you know, Steve Jobs had, like, the vision. Oh, I think it was Jobs or maybe it was Bill Gates, but it was, like, a computer on every desk I think it was gates. There's a computer on every desk, was the was the goal, a personal computer.

And then my brother-in-law who's got a kid that that plays, like, competitive soccer. She's like, you know, seven years old. And I was like, dude, have you seen this thing? He's like, bro, it's on every field. Like, this is, like, you can't go to youth soccer now and not, like, every single field has one at And so I think the same way that, you know, Steve Jobs had, like, the vision. Oh, I think it was Jobs or maybe it was Bill Gates, but it was, like, a computer on every desk I think it was gates. There's a computer on every desk, was the was the goal, a personal computer.

34:38

And I think now it's gonna be basically a camera on every field.

And I think now it's gonna be basically a camera on every field.

34:41

Alright? And it's like every single high school, every single middle school, every

Alright? And it's like every single high school, every single middle school, every

34:46

au game, every, you know, travel team,

au game, every, you know, travel team,

34:49

They're gonna use these things because why not? Well, somebody's gonna make the investment one time. They're really it's not one time. So, alright. So for the the most popular version, a thousand dollar one time expense, and then it's a hundred and thirty dollars per month. Yeah. The most expensive one. I think there's, like, cheaper ones than that. I I don't think you have to get the the crazy one, but, yeah, like, It though, that price is gonna go down. Like, the thousand dollar hardware is gonna go down, but the, you know, hundred a hundred bucks a month is gonna stay there. But if you're, like, a team or really, you don't even have to buy it per team. It's like the league needs to have it. Right? So it's like the the venue needs to have it. And I just predict that every venue is gonna have these. Like, they will get whoever wins is gonna get these into every single field, every single court. And it'll just be that way, tennis, wrestling, like, every fringe sport.

They're gonna use these things because why not? Well, somebody's gonna make the investment one time. They're really it's not one time. So, alright. So for the the most popular version, a thousand dollar one time expense, and then it's a hundred and thirty dollars per month. Yeah. The most expensive one. I think there's, like, cheaper ones than that. I I don't think you have to get the the crazy one, but, yeah, like, It though, that price is gonna go down. Like, the thousand dollar hardware is gonna go down, but the, you know, hundred a hundred bucks a month is gonna stay there. But if you're, like, a team or really, you don't even have to buy it per team. It's like the league needs to have it. Right? So it's like the the venue needs to have it. And I just predict that every venue is gonna have these. Like, they will get whoever wins is gonna get these into every single field, every single court. And it'll just be that way, tennis, wrestling, like, every fringe sport.

35:35

There's people who wanna watch. It's the family, the friends, the athletes themselves, and their coaches.

There's people who wanna watch. It's the family, the friends, the athletes themselves, and their coaches.

35:40

And, there's enough motivation to do this. Their website is so good that it makes me wanna play soccer. It's sorta like it's sorta like GoPro where I, like, the the footage is awesome that, like, I gotta get into snowboarding

And, there's enough motivation to do this. Their website is so good that it makes me wanna play soccer. It's sorta like it's sorta like GoPro where I, like, the the footage is awesome that, like, I gotta get into snowboarding

35:54

right now just so I can go and, like, live a life worth recording. Dude, that's all. When you were talking about the magazine stuff, I was like, Yeah. The wind blowing through my hair my hair as I'm on this boat. Yeah. Maybe I do want that lifestyle.

right now just so I can go and, like, live a life worth recording. Dude, that's all. When you were talking about the magazine stuff, I was like, Yeah. The wind blowing through my hair my hair as I'm on this boat. Yeah. Maybe I do want that lifestyle.

36:05

Yeah. Do I wanna be a boater? That's how I feel when I when I go to their website. This is a, this is awesome. B, I'm shocked at how large this is. I guess it's not a surprise,

Yeah. Do I wanna be a boater? That's how I feel when I when I go to their website. This is a, this is awesome. B, I'm shocked at how large this is. I guess it's not a surprise,

36:15

but it's sort of as a surprise that there's multiple companies that have raised nine figures to build this. I think these are doing, you know,

but it's sort of as a surprise that there's multiple companies that have raised nine figures to build this. I think these are doing, you know,

36:22

fifty million plus a year in revenue minimum,

fifty million plus a year in revenue minimum,

36:25

you know, the the the leaders of this space. I don't know the exact numbers, but, like, ball parking, I would I would be surprised if it was under that. This is absolutely insane. I never in a million years would have thought that this would become a thing. Well, I have the opposite opinion, which is This is an obvious idea.

you know, the the the leaders of this space. I don't know the exact numbers, but, like, ball parking, I would I would be surprised if it was under that. This is absolutely insane. I never in a million years would have thought that this would become a thing. Well, I have the opposite opinion, which is This is an obvious idea.

36:39

It's obvious that it's working, but it's not obvious that, like No. Like, this is obvious before, dude, when,

It's obvious that it's working, but it's not obvious that, like No. Like, this is obvious before, dude, when,

36:46

Like, why didn't you start it? Well, because the idea this idea has been around for a long time. So, for example, in NBA stadiums,

Like, why didn't you start it? Well, because the idea this idea has been around for a long time. So, for example, in NBA stadiums,

36:53

they there's like an enterprise version of this called Second Spectrum.

they there's like an enterprise version of this called Second Spectrum.

36:56

And, there's a company called Synergy Sports that basically there's, like, cameras that they install in the,

And, there's a company called Synergy Sports that basically there's, like, cameras that they install in the,

37:03

in the NBA Vanier that tracks all the players and all the motion, and it keeps track of certain specific advanced stats for the teams.

in the NBA Vanier that tracks all the players and all the motion, and it keeps track of certain specific advanced stats for the teams.

37:09

And so,

And so,

37:10

idea of, like, oh, wow. Couldn't you either install cameras or use computer vision to

idea of, like, oh, wow. Couldn't you either install cameras or use computer vision to

37:16

to track stats? That's that's interesting. Then there was flow flow sports. Which was basically live streaming niche sports, like, you know, jujitsu competitions, wrestling competitions, and they were doing tens of millions a year in revenue. Yeah. Their offices here is in Austin, and I've been to it and it's sick. It's really cool. It's a big company. And you for those, those are for more official competitions, like, you know, the Texas state you know, karate championships or whatever. Not, like, you know, little Susie's soccer game, which, like, you know, Susie's, parents, and grandma, whatever wanna be able to watch. Like back in college, I remember,

to track stats? That's that's interesting. Then there was flow flow sports. Which was basically live streaming niche sports, like, you know, jujitsu competitions, wrestling competitions, and they were doing tens of millions a year in revenue. Yeah. Their offices here is in Austin, and I've been to it and it's sick. It's really cool. It's a big company. And you for those, those are for more official competitions, like, you know, the Texas state you know, karate championships or whatever. Not, like, you know, little Susie's soccer game, which, like, you know, Susie's, parents, and grandma, whatever wanna be able to watch. Like back in college, I remember,

37:48

my my roommate Trevor, he would always watch his little sisters basketball games, and he'd be on his computer and he's watching this grainy

my my roommate Trevor, he would always watch his little sisters basketball games, and he'd be on his computer and he's watching this grainy

37:55

footage. And I'm like, who the hell's streaming this ninth grade girls, Wyoming,

footage. And I'm like, who the hell's streaming this ninth grade girls, Wyoming,

38:00

basketball,

basketball,

38:01

regular season game?

regular season game?

38:03

And he's like, He's like, I pay for this thing because, like, we pay, and then this guy films it. And then he's, you know, he uploads it later. It's not live stream, but he pay uploads it later, and I watched shitty footage, but, like, I really wanna see my sister's play. Like, that matters to me. I'm willing to pay, like, my price sensitivity. It's like, I will pay the equivalent of a Netflix monthly subscription. But instead of giving me, like, all the world's best content, I get my my niece's games. And it's, like, there's an emotional reason to do that. So idea was around for a long time. I've I've noticed this, but

And he's like, He's like, I pay for this thing because, like, we pay, and then this guy films it. And then he's, you know, he uploads it later. It's not live stream, but he pay uploads it later, and I watched shitty footage, but, like, I really wanna see my sister's play. Like, that matters to me. I'm willing to pay, like, my price sensitivity. It's like, I will pay the equivalent of a Netflix monthly subscription. But instead of giving me, like, all the world's best content, I get my my niece's games. And it's, like, there's an emotional reason to do that. So idea was around for a long time. I've I've noticed this, but

38:34

it needed a technology inflection.

it needed a technology inflection.

38:36

And it needed the AI camera. You don't have to hire somebody quality is now good enough where it's actually fun to watch. You can live stream it, record it, cut highlights all that shit. And so now I feel like the idea it's an idea whose time has come. And,

And it needed the AI camera. You don't have to hire somebody quality is now good enough where it's actually fun to watch. You can live stream it, record it, cut highlights all that shit. And so now I feel like the idea it's an idea whose time has come. And,

38:48

we were, I was talking to my buddy, Luke about the AI,

we were, I was talking to my buddy, Luke about the AI,

38:52

like, the AI wave. He's in my, like, AI tutoring group we we, like, learn about AI together every week once a week. And he's like, you know, whenever there's a new technology shift, he goes, I always think back of, What he was I asked the question, what is the restaurants on the, of menus on the internet of this wave? Like, of menus on the internet. What do you mean? He goes, well, when the internet first came out, The very first obvious startup idea was like, well, let's just take, like, restaurant menus and put them on the internet. He's like, before we could do DoorDash and online ordering, like, all the next gen shit, The first thing you do is you just put the menus on the Internet, just a picture of the menu. And he's, like, for every tech wave, there's always, like, the, like, Very obvious. It's kinda not where the thing is gonna go, but it's like immediate value add, no brainer, like,

like, the AI wave. He's in my, like, AI tutoring group we we, like, learn about AI together every week once a week. And he's like, you know, whenever there's a new technology shift, he goes, I always think back of, What he was I asked the question, what is the restaurants on the, of menus on the internet of this wave? Like, of menus on the internet. What do you mean? He goes, well, when the internet first came out, The very first obvious startup idea was like, well, let's just take, like, restaurant menus and put them on the internet. He's like, before we could do DoorDash and online ordering, like, all the next gen shit, The first thing you do is you just put the menus on the Internet, just a picture of the menu. And he's, like, for every tech wave, there's always, like, the, like, Very obvious. It's kinda not where the thing is gonna go, but it's like immediate value add, no brainer, like,

39:34

wave one of what people do on these It's, like, for for the iPhone. Remember it was, like, the beer app, the flashlight app, the calculator app. Like, that was the menus on the internet. And now with AI, there's some things like this that are, the menus on the internet version of of what you can do with with AI. So your AI tutoring person, it's now worked into a studying group.

wave one of what people do on these It's, like, for for the iPhone. Remember it was, like, the beer app, the flashlight app, the calculator app. Like, that was the menus on the internet. And now with AI, there's some things like this that are, the menus on the internet version of of what you can do with with AI. So your AI tutoring person, it's now worked into a studying group.

39:53

Oh, yeah, bro. It's growing. What is it? I'm

Oh, yeah, bro. It's growing. What is it? I'm

39:57

I don't even wanna tell you. It's like fight club. It's like fight club with no fighting,

I don't even wanna tell you. It's like fight club. It's like fight club with no fighting,

40:02

just screen sharing on Zoom.

just screen sharing on Zoom.

40:04

But is it, like, a group of you who meet and you just come, like, with the homework and questions?

But is it, like, a group of you who meet and you just come, like, with the homework and questions?

40:09

It's

It's

40:10

three of us who people I think are awesome that I wanted an excuse to hang out with. So it's me, it's Matt Mazzio, and it's my buddy, Luke. And I'm like, I wanted to hang out with these people more anyways. They're also in AI. They're investing. They may be, you know, start companies in the space, whatever.

three of us who people I think are awesome that I wanted an excuse to hang out with. So it's me, it's Matt Mazzio, and it's my buddy, Luke. And I'm like, I wanted to hang out with these people more anyways. They're also in AI. They're investing. They may be, you know, start companies in the space, whatever.

40:24

And is like, hey, let's just do this together. That way, it's a little study group where you, you know, you see something and then one person says something. And then the other person pushes back and is like, well, I don't know. What about this? And it everybody gets a little smarter for for doing it. What are your biggest takeaways now with AI then? Because I don't know much about it. So Sam Altman recently said something. He goes,

And is like, hey, let's just do this together. That way, it's a little study group where you, you know, you see something and then one person says something. And then the other person pushes back and is like, well, I don't know. What about this? And it everybody gets a little smarter for for doing it. What are your biggest takeaways now with AI then? Because I don't know much about it. So Sam Altman recently said something. He goes,

40:45

there's two types of companies in AI.

there's two types of companies in AI.

40:47

There's the companies that

There's the companies that

40:50

can't wait for us to release a new model. And there's these companies that can't sleep at night knowing we're gonna release a new model. Meaning He he's like, we're gonna crush you. They're not saying this, but the way they've architected their business is

can't wait for us to release a new model. And there's these companies that can't sleep at night knowing we're gonna release a new model. Meaning He he's like, we're gonna crush you. They're not saying this, but the way they've architected their business is

41:02

if we make GPT five better than GPT four and we improve a bunch of capabilities, the model gets smarter. It gets better at doing all the things it's doing, which is, like, by the way, that's exactly what's gonna happen, duh, like, insane to bet against that. He's, like,

if we make GPT five better than GPT four and we improve a bunch of capabilities, the model gets smarter. It gets better at doing all the things it's doing, which is, like, by the way, that's exactly what's gonna happen, duh, like, insane to bet against that. He's, like,

41:15

they risk being, like, you know,

they risk being, like, you know,

41:18

you know, blown up. Like, they, you know, they're they become obsolete when that happens. I'm pretty sure he goes, we're gonna steamroll that. Yeah. He goes, we'll they they will do those companies will get steamrolled.

you know, blown up. Like, they, you know, they're they become obsolete when that happens. I'm pretty sure he goes, we're gonna steamroll that. Yeah. He goes, we'll they they will do those companies will get steamrolled.

41:27

Yeah.

Yeah.

41:28

Sure. This is not a good thing.

Sure. This is not a good thing.

41:32

That that is amazing. So then the other companies, he's like, the other companies are begging us. Can't wait for the next model to come out because it's just gonna make their product better. What's an ex so then the the group we were talking through, like, okay. What does that really mean? Who are the companies that fall into group a and fall into group b? There's an interesting discussion around that, but I'll just give you, like, a simple example. Let's say you're some company that you do transcription, translation, and whatever in, you know, four companies

That that is amazing. So then the other companies, he's like, the other companies are begging us. Can't wait for the next model to come out because it's just gonna make their product better. What's an ex so then the the group we were talking through, like, okay. What does that really mean? Who are the companies that fall into group a and fall into group b? There's an interesting discussion around that, but I'll just give you, like, a simple example. Let's say you're some company that you do transcription, translation, and whatever in, you know, four companies

41:57

that are rev dot com. But not rev dot com. So rev dot com says, pay us. Rev dot com is a good example of the steamroll type of company. So it's basically, it's like Got pay us. We do transcription really good. We have human transcribers. They're great. It's like, well, guess what? It's gonna be better than the human transcribers? GPT five. It's gonna be awesome. It's gonna be way cheaper than rev dot com. It's gonna, like, drive your price to zero and be better. So that's like rev dot com is in trouble.

that are rev dot com. But not rev dot com. So rev dot com says, pay us. Rev dot com is a good example of the steamroll type of company. So it's basically, it's like Got pay us. We do transcription really good. We have human transcribers. They're great. It's like, well, guess what? It's gonna be better than the human transcribers? GPT five. It's gonna be awesome. It's gonna be way cheaper than rev dot com. It's gonna, like, drive your price to zero and be better. So that's like rev dot com is in trouble.

42:21

Then you have a company that's like, cool. We do transcription translation in the context of

Then you have a company that's like, cool. We do transcription translation in the context of

42:26

This certain health care thing, this workflow where doctors need to transcribe their notes on the go, and it needs to be really high fidelity. And today, that transcription is done by a human, but, like, whatever. It's like, They have a full, like, enterprise workflow. And if the transcription capabilities get better, they're like, awesome. Our product got better. But the product was, like, open AI is never gonna build the thing that integrates in with the the doctors, you know, like,

This certain health care thing, this workflow where doctors need to transcribe their notes on the go, and it needs to be really high fidelity. And today, that transcription is done by a human, but, like, whatever. It's like, They have a full, like, enterprise workflow. And if the transcription capabilities get better, they're like, awesome. Our product got better. But the product was, like, open AI is never gonna build the thing that integrates in with the the doctors, you know, like,

42:50

whatever you know, health care record system that they use. Like,

whatever you know, health care record system that they use. Like,

42:53

they embed themselves in a workflow,

they embed themselves in a workflow,

42:56

and that's, like, ninety percent of the product. And the ten percent improvements to the the the AI, the the transcription, the translation, the whatever it is,

and that's, like, ninety percent of the product. And the ten percent improvements to the the the AI, the the transcription, the translation, the whatever it is,

43:04

if those get better, great. Our product got more effective. It didn't make our product obsolete because we have this ninety percent that we've built around it that are that is really specific to a certain use case, certain workflow.

if those get better, great. Our product got more effective. It didn't make our product obsolete because we have this ninety percent that we've built around it that are that is really specific to a certain use case, certain workflow.

43:15

And,

And,

43:16

And so we're we can't wait for the next model to come out

And so we're we can't wait for the next model to come out

43:19

versus maybe other other companies like rev dot com or companies that are like, we're like Open AI

versus maybe other other companies like rev dot com or companies that are like, we're like Open AI

43:24

But we're better at, like, you know, here's an example of a company I think is at risk. You know, these companies that do

But we're better at, like, you know, here's an example of a company I think is at risk. You know, these companies that do

43:31

voice text to voice. So, like, you know, eleven labs is one. Play HD is another. It's like basically, they're like, we're better than, like, we can do AI. You type in a thing and we can create a human sounding AI. And we're gonna fine tune our model to do that.

voice text to voice. So, like, you know, eleven labs is one. Play HD is another. It's like basically, they're like, we're better than, like, we can do AI. You type in a thing and we can create a human sounding AI. And we're gonna fine tune our model to do that.

43:45

But then open AI releases, like, every every month, they just release a new thing. It's, like, We have text to voice now. Check it out. Here's the demo. The demo's awesome. And so it's only gonna get better. And then it it's just gonna become a standard API for anybody to use to use text to voice.

But then open AI releases, like, every every month, they just release a new thing. It's, like, We have text to voice now. Check it out. Here's the demo. The demo's awesome. And so it's only gonna get better. And then it it's just gonna become a standard API for anybody to use to use text to voice.

43:57

It's, like, I think those companies that are trying to be, like, we have our own proprietary

It's, like, I think those companies that are trying to be, like, we have our own proprietary

44:02

model,

model,

44:03

our own fine tuned use case, they're gonna really struggle because

our own fine tuned use case, they're gonna really struggle because

44:07

They can't compete with the behemoth.

They can't compete with the behemoth.

44:09

How are you taking advantage of this then,

How are you taking advantage of this then,

44:11

from a business point of view, or are you? I would say

from a business point of view, or are you? I would say

44:16

On the investing side, I'm much more

On the investing side, I'm much more

44:19

measured twice, cut once right now, meaning I'm not spraying and printing a bunch of checks into a bunch of random AI companies. I think it's really hard to figure out right now which companies actually have liked. Also, they're all really overpriced. So I have this combination of really high price, really low traction,

measured twice, cut once right now, meaning I'm not spraying and printing a bunch of checks into a bunch of random AI companies. I think it's really hard to figure out right now which companies actually have liked. Also, they're all really overpriced. So I have this combination of really high price, really low traction,

44:34

product is really good in a demo, but not really good in production.

product is really good in a demo, but not really good in production.

44:38

And I don't know if they're gonna become obsolete due to opening ice. There's a bunch of problems there. It's like, actually a better bet was just, like, in the stock market. Just buy companies that have, like, a massive advantage when it comes to ads. So go buy Nvidia, buy Facebook, buy buy a bunch of stocks that are going to benefit from AI, whether they're not just, like,

And I don't know if they're gonna become obsolete due to opening ice. There's a bunch of problems there. It's like, actually a better bet was just, like, in the stock market. Just buy companies that have, like, a massive advantage when it comes to ads. So go buy Nvidia, buy Facebook, buy buy a bunch of stocks that are going to benefit from AI, whether they're not just, like,

44:55

a one random startup that I'm hoping is the one out of a thousand startup that becomes enormous. Well, that's what Morgan Stanley put out this report and they said, they go,

a one random startup that I'm hoping is the one out of a thousand startup that becomes enormous. Well, that's what Morgan Stanley put out this report and they said, they go,

45:04

AI is gonna be a big deal. Unfortunately,

AI is gonna be a big deal. Unfortunately,

45:06

we well, not unfortunately, but we think that it's gonna impact big companies who are already established. It's just gonna make them significant. You're gonna get there's gonna be more value in making those companies better than there is starting new companies. Exactly.

we well, not unfortunately, but we think that it's gonna impact big companies who are already established. It's just gonna make them significant. You're gonna get there's gonna be more value in making those companies better than there is starting new companies. Exactly.

45:18

And they actually said marketing and I the reason I thought it was cool is because I,

And they actually said marketing and I the reason I thought it was cool is because I,

45:23

I own stock in a in a marketing technology company, and they're like, we think that marketing technology in in that type Salesforce, HubSpot, whatever. That's gonna be the biggest

I own stock in a in a marketing technology company, and they're like, we think that marketing technology in in that type Salesforce, HubSpot, whatever. That's gonna be the biggest

45:31

sector that's gonna use this shit to to grow. Well, I think it's good. I think it's a safer bet, and it's a more obvious bet. Well, the I don't I don't think that investing a starbucks right now is a bad idea. I just meant No.

sector that's gonna use this shit to to grow. Well, I think it's good. I think it's a safer bet, and it's a more obvious bet. Well, the I don't I don't think that investing a starbucks right now is a bad idea. I just meant No.

45:42

It's really hard right now, and it's unclear to me, and I haven't put in the time to get a lot of clarity on which which I I don't have a bunch of starters. I'm like, these are gonna be winners in this space. I just haven't been able to get that level of clarity So it's like measure twice cut once. Meaning, first, I'm like, let me just learn this at in more depth. Let me use all these tools,

It's really hard right now, and it's unclear to me, and I haven't put in the time to get a lot of clarity on which which I I don't have a bunch of starters. I'm like, these are gonna be winners in this space. I just haven't been able to get that level of clarity So it's like measure twice cut once. Meaning, first, I'm like, let me just learn this at in more depth. Let me use all these tools,

45:59

which is what we do. So, like, in these sessions, we will just be like, cool. Here's a tool that can do x, and then I he's like, you drive. And I go and I start trying to build a thing that's gonna be useful in one of my businesses.

which is what we do. So, like, in these sessions, we will just be like, cool. Here's a tool that can do x, and then I he's like, you drive. And I go and I start trying to build a thing that's gonna be useful in one of my businesses.

46:10

Are you paying this person? Yeah. Still.

Are you paying this person? Yeah. Still.

46:12

Dude, this is so smart. Because we did it as a group,

Dude, this is so smart. Because we did it as a group,

46:16

like, the sessions are more fun, and it's, like, a pretty valuable network of people to be really tight with. Right? Like, which is ultimately what you want. You want the thing to be so mutually beneficial that the financial outcomes of the thing are so secondary. Like, the primary should be the session is fun, and these people are awesome. And I get to hang with these people. These people I get to basically, you know, iron Sharpen's iron with these people right now. That's, like, what I wanted this to get to. And so I feel really good about that. Dude, that's so smart. More people should do this. I mean, I used to do this with book clubs, but if I had a very specific interest like you have right now. And even if it's just a temporary thing that lasts six or twelve months, that's the way to go. It's so smart. That's a such a smart thing for you to do. As far as people, I think, always did the second crypto. I know people were doing this early on.

like, the sessions are more fun, and it's, like, a pretty valuable network of people to be really tight with. Right? Like, which is ultimately what you want. You want the thing to be so mutually beneficial that the financial outcomes of the thing are so secondary. Like, the primary should be the session is fun, and these people are awesome. And I get to hang with these people. These people I get to basically, you know, iron Sharpen's iron with these people right now. That's, like, what I wanted this to get to. And so I feel really good about that. Dude, that's so smart. More people should do this. I mean, I used to do this with book clubs, but if I had a very specific interest like you have right now. And even if it's just a temporary thing that lasts six or twelve months, that's the way to go. It's so smart. That's a such a smart thing for you to do. As far as people, I think, always did the second crypto. I know people were doing this early on.

46:59

You know, I remember hearing these, like, sessions about south by southwest where I forgot whose room it was, but it was, like, everybody used to go up to, Garrett Camp's room.

You know, I remember hearing these, like, sessions about south by southwest where I forgot whose room it was, but it was, like, everybody used to go up to, Garrett Camp's room.

47:08

And at Southwest Southwest, there's, like, fifteen people that were all kinda, like, loose friends like this, but, like, a lot of mutual expect.

And at Southwest Southwest, there's, like, fifteen people that were all kinda, like, loose friends like this, but, like, a lot of mutual expect.

47:14

And it wasn't like a paid party or some, like, event with sponsors. It was like, no, dude. Like, we're here to basically talk about everybody should have opinions on where they think the puck is going, and then they would debate. And that's how Matt Mazzio actually got in with Chris Sacca, Saka who's this motherfucker that has, like, really interesting things to say? It's, like, he's the agent at CAA in Hollywood.

And it wasn't like a paid party or some, like, event with sponsors. It was like, no, dude. Like, we're here to basically talk about everybody should have opinions on where they think the puck is going, and then they would debate. And that's how Matt Mazzio actually got in with Chris Sacca, Saka who's this motherfucker that has, like, really interesting things to say? It's, like, he's the agent at CAA in Hollywood.

47:34

Like, this guy should be in the tech world, and he recruited him from there. And this is where, like, you know, they were there's a lot of the guys who invested Uber early on, like, Garrett and,

Like, this guy should be in the tech world, and he recruited him from there. And this is where, like, you know, they were there's a lot of the guys who invested Uber early on, like, Garrett and,

47:43

Travis were in the room, and they were, you know, talking about Uber at the time. And Gary V was in the room, and there's a whole like, this is legendary story. I have no idea what actually happened. I remember hearing these stories and being, like, I need to get into rooms like that. What is a room like that? And how do I make a room like that? If I either need to get in or I need to make a room like that? What was the story of the room? I well, I just told told you. Yeah. Ari, was that the second time this episode, Sean Copon Attitude with me? Well, you know, I'm like, I told you the story. You're like, well, so what happened? Like, well, that's the I told you everything I know, bro. I don't know anything else. Does Zoom have, like, a bitch slap animation that I could use? I know they got a thumbs up. Yeah. You know, like, a thumbs up and it, like, starts bubbling hearts behind you. Do they got a middle finger where those Let's see what happens. Yeah.

Travis were in the room, and they were, you know, talking about Uber at the time. And Gary V was in the room, and there's a whole like, this is legendary story. I have no idea what actually happened. I remember hearing these stories and being, like, I need to get into rooms like that. What is a room like that? And how do I make a room like that? If I either need to get in or I need to make a room like that? What was the story of the room? I well, I just told told you. Yeah. Ari, was that the second time this episode, Sean Copon Attitude with me? Well, you know, I'm like, I told you the story. You're like, well, so what happened? Like, well, that's the I told you everything I know, bro. I don't know anything else. Does Zoom have, like, a bitch slap animation that I could use? I know they got a thumbs up. Yeah. You know, like, a thumbs up and it, like, starts bubbling hearts behind you. Do they got a middle finger where those Let's see what happens. Yeah.

48:25

Does that work?

Does that work?

48:26

That's the second thought. I apologize.

That's the second thought. I apologize.

48:29

I'm so sassy today.

I'm so sassy today.

48:31

I could be catty on Wednesdays. I know. Of my bad.

I could be catty on Wednesdays. I know. Of my bad.

48:36

I apologize. Is that the pod? Do we wrap up there? I guess, I think I need to go work on myself.

I apologize. Is that the pod? Do we wrap up there? I guess, I think I need to go work on myself.

48:42

I think I'll meditate.

I think I'll meditate.

48:45

Alright. That's the pod.

Alright. That's the pod.

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