00:00
Alright. Someone asked me an incredible question today. They said if you had to pick one idea
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that could make you a million dollars this year, and it can't be
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just a newsletter or a blog or an agency, which are usually our go tos? What would it be? What would you do? One specific idea that you would do. And then he also said, And I wanna hear one specific idea that you would do to try to make a billion dollars. That's a good question, and me and Sam are gonna answer that. Right now on this episode of my fulfillment.
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Alright. What's up? We're doing our Q and A, and we got one question that we really love. But is the question Sean, is it a billion dollar in net worth or a company that's worth a billion dollars?
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I'm gonna say it's a company that's worth a billion dollars, so you and then, you know, you own a big chunk of it. Okay. And what's a bill what's a billion here or there? Okay. Look, the company's worth one billion. You're worth one billion. It's all a billion. It changes dramatically. So I know a guy who sold company for nine hundred million dollars nine hundred and ninety million dollars. You know how much he made after the sale? Three million dollars. That's how much he made. He had he had four co founders,
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or maybe five, and he raised a ton of money, and they sold it. And he made three million dollars. That's that's insane. Right? And I don't I think that's an extreme case. I think there's many cases where you create a billion dollar business, and you actually walk away with, like, eight percent of the company Right. Which is still a ton of money. But
01:26
It's a that's a wild experience. That's like a small ton.
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It's a small ton. It just as big of a ton as people think you get when you're when you make a company that big Yeah. It's just the the the numbers change things a little bit, but let's just get right into it. The million dollar one. What do you The million dollar one. Alright. So,
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you go first for this one. So
01:45
a million dollars
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in is it net worth? Like, in what do we say? Three or four years to do it? You got a couple years to do it. You're gonna make a million dollars
01:55
in profit. So to make a million so I think that there if you wanna make a certain amount of money, quickly, you have to ask yourself, is it gonna come through annual cash flow, or is it gonna come through selling something, like selling a business? So, for example, if you have a business that's earning let's say, three hundred thousand dollars a year. You in year one, you do fifty thousand, year two, you do two hundred thousand, year three, you do three hundred thousand. That's not gonna add up to a million dollars. However, you could sell that business for maybe nine hundred thousand dollars and maybe a million dollars. So collectively, you can come up with a million bucks. I think the easiest thing to do would probably be to sell the business if you wanna make that amount of money in a certain amount of time in, like, three years. What I would do
02:37
So first, do you know Quiet Light brokerage?
02:39
Yes.
02:40
So if I wanna make a million dollars in, let's say, three years, I'm probably not gonna invent anything new. I'm just gonna copy what works, and I'm gonna try maybe not even do it better. I mean, there's four almost four hundred million people in America. Like, I can kinda just figure out someone that already is doing something. And copy it, but put it slightly differently. Ladies and gentlemen, we're not gonna be better, faster, or cheaper. We are simply gonna be also
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in the business of three. Yeah. Yeah. That old. It's an old old old strategy.
03:11
Yes. The me too strategy. What this is. Like Me also. That's a different thing. We don't want me to. We don't want me to.
03:17
Sorry. The me also strategy. That's what we'll call it. The the me also strategy.
03:22
So I would probably go to Quiet Light Brokerage. The Quiet Light Brokerage, I've had a couple of friends sell and buy businesses through this. I've had, one friend sell a business via Quiet brokerage for ten million. I had another buddy buy a company for three hundred thousand that ended up making
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eighteen million a year in revenue.
03:40
And I know those guys at Quiet Light Brokerage, and I've talked to them. And basically, Quiet Light Brokerage is a website where you buy and sell businesses. It's a brokerage, meaning it's not exactly automated. But what you can do is you can see anonymous descriptions of companies that are for sale You can see what the earnings are. You can see what the revenue is. You can enter in your email, and they'll send you all the financials to the business. All you gotta do is say I'm interested in this business. And then they send you a packet of information about that business, including the name, who the owner is, where it's incorporated,
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how they got their first customers, how where they get the customer mix today, what are the areas for growth, they do this fantastic little interview with the person, which is if you're buying the business, very useful,
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But also if you're gonna executing to me also strategy,
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it is brilliant. And in fact, we have a friend who did this. We have a friend who was looking at one of these websites.
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Saw a business for sale for, I think, like, a hundred and twenty, a hundred and fifty thousand dollars. One of the smallest
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business for sale, maybe on FlipPA somewhere or something like that.
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And
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he was like, well, I don't have a hundred and fifty thousand dollars, but I do have a lot of time
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to pick your brain. And so he picked the brains of a bunch of people, and then they were like, cool. You wanna buy it? He's like, no. But you could, you know, you convince me how easy this is. So, see you and went and recreated that and sold her for many millions more. And,
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that literally did that. And I think Once I heard that, I realized, oh,
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there are easier ways and harder ways to make ten million dollars. And the easier way is you go look at businesses that are already successful and you reverse engineer, which one you could you could create and copy. And and by the way, I don't think think they make you sign an NDA or something like that. So I think you could get sued if you just rip it off entirely. But I think but and and that's not exactly what I'm suggesting. I'm suggesting be inspired by and do something exactly like it, but slightly different.
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I can't find this client info. Have you heard of HubSpot?
05:33
HubSpot is a CRM platform, so it shares its data across every application. Every team can stay aligned, though out of sync spreadsheets or dueling databases.
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HubSpot grow better.
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Well, let's just look at it right now. So, for example, I'm scrolling. You go to quite light or you could use any of these brokerage sites. We we both, like, quite like, because it's a little curated. So it's it's less filled with junk, even though, honestly, a lot of these businesses on here are absolute junk. So let me show you one of these junk businesses. So,
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you go down to the kind of, like, for sale for two million bucks. Two million bucks is a nice number. Right? You could be even a little bit worse in this business and, and and still make a million bucks. You could if you sold it for two million after taxes, you have a million dollars. Alright. So Here it is. It's a FBA
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business, fulfilled by Amazon. It's a money counting machine. Does that mean that they're literally selling a money counting Like, I like any business that could be called a mini money printing machine, a money counting machine. In this case, they'd literally so this says, launched in twenty twenty. So three years ago, It says this business sells money, counting machines, and counterfeit bill detectors to local businesses, government agencies, restaurants, financial services, banks, if I manage your companies and nonprofits. Is it one like this? Like this money counting machine that I have seen on my desk? Have that right now.
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So I have No. For those now Give it a run. You give it a run. That sounds Well, I don't have it I don't have it plugged in. But so
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I have I literally have a money counting machine here with counterfeit money on it. When I sold my company, Jack Smith, my best friend, he bought me this as, like, a congratulations.
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It's a hundred dollars. I've never used it, but I just, like, keep it there. And when I have friends that do something interesting, like, they sell a company that close a big deal, I send it to them and I say, this is either gonna be a huge, like, paperweight or you're actually gonna use it. Good luck.
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And it's a nice gift. I I think this cost two hundred dollars.
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That's actually great. We should do that for the for any fan. If you're going through the process of you're gonna sell your business,
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just email us, and we'll send you the counter as the good luck as our good luck charm from us to you.
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And then when I have, like, my cleaning lady here, I'm, like, just so you know, the fake money. Don't even think about it.
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Watch this. Rich it up. Yeah. I was like, it's fake. The all the this it's a hundred grand in cash that costs five dollars a month. That's a great trust test. You should, just leave it out and see, like, you know what?
07:56
Not only did you steal fake money, but you're out of a job too. Well, that's actually a test I do when I have, like, new, like, vendors at my house is sometimes I'll leave, like, hundred dollars there, and I know exactly how much is there. And I was, like, what's gonna happen? In the candy bar, and see what happens.
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So someone's selling literally a money money counting machine, one point eight million in revenue, six hundred twenty five thousand dollars of net income net profit. So they're selling it, here. And then if you go and you you a husband and wife duo.
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They says they spent the this is a classic on quiet light. This is, like, the
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I don't know what Tinder profile nowadays. I don't know what the kids are doing, but I know that, every business for sale. Do you understand five to ten hours a week?
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It just don't have enough time and energy to devote to growing the business that anybody who steps in could do.
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Alright. So anyways, I would look at businesses like this, And, seems like what you're saying is you would probably look at what, like, not one, but, like, maybe twenty to thirty of these just to get a good idea, get enough data points. And I would find out which fits my interest. So for example,
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Sean, click where they have membership.
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So they have a membership category. They've got media, which I know about media. So I would do that But membership is interesting. I think the reason memberships are interesting
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is I think you could have a really, really, really niche community
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where you solve a very specific problem, and I'll give you two examples.
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So for, like, one could be so if you are if you have a job, you maybe work
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you work in whatever industry, and you know something, but you have this problem called the knowledge complex where you think, well, everyone knows this. Therefore, it's not that interesting to teach. And I think that's actually crazy. I think for, like, two examples are
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automations
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for HVAC owners. Another one is outbound sales for, like, chiropractors or, for, architects.
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And I think what you can do with things like this is you can charge pretty high amounts. You could charge five hundred dollars a month where you get access to content that you update on a regular basis.
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And then you have a community where all the other participants can share tactics and ideas that they're using to overcome the the problem that they've all signed up for. Another example is,
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a community where you have a database with all the right people who you need to contact
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at a certain within a certain niche in order to get a sale done. So for example, let's say you're an agency, it could be like, here's all of the buyers of media at the these companies
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that you update regularly, and then you could have a community where people are discussing tactics and strategies in order to accomplish that task. And I think
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when you look at, like, what the the the problem or you're, like, you're thinking about what the customer's going through when they're gonna buy this, which is if I spend three thousand dollars a year on this, if I only get one sale, this is worth it for me, and I get a positive ROI. And I think that sale is significantly easier than selling to consumers where you're having to do a lot of guess work. With this, if you do three thousand dollars a year in order to get to a million dollar sale, you'd have to look at what those multiples are, but I think the multiples on a member sites are like five times profit. So you get to a million. You need two hundred fifty thousand dollars in profit to get to it two hundred fifty thousand dollars in profit on a three thousand dollar year service. It could be just you and a part time employee or one full time employee. I don't know what that math is, but you don't need that many customers in order to hit that target. And so I would do that over a consumer product because I can just talk to my customers, and they could tell me exactly what they want. And I'm basically providing a service that they're requesting on a regular basis in order to keep them So here's the specific example of that, exit five, I think, is the name of it.
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Exit five is like a a community of b to b marketers.
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And, I don't know what they pay per year. It's it's a little bit less than what you just said, but I think they could be charging, you know, more like twenty five hundred or three thousand dollars.
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But the big idea here is go get a hundred people paying you three grand a year. And then you can even make it exclusive. Be like, this is a community for only a hundred and fifty of the top b to b marketers in the world, we're gonna we're gonna invite you in, and then you're gonna share ideas plus we have this database
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of whatever, whether it's ad creative that works. We have this database of vendors that are, you know, buyers with their contact info, and we all openly share here. It's a it's a sort of give to get you know, model.
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And, yeah, the thing is probably worth two, three million bucks right now that that this guy's made and and, you know, five hundred to a thousand members. And the reason if you're starting from scratch is you don't need that particularly big of an audience. You don't need a you'd you'd cold email people. You would also build an audience But in order to get to a let's say you have an audience of five thousand people, which is very attainable to get particularly if you give it a year, you only need about a hundred to two hundred people to buy what you're selling in order to hit that target. And you can so your podcast doesn't need to be huge, your Twitter handle, your cold email outbound strategy doesn't need to be huge. And so that's probably what I would do to get to a million dollars. What do you think about that? Well, you have you basically sent two ideas. Right? That was a two for one special. You had go to Quiet Light or a business brokerage
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and find a business that you can either reverse engineer or
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legitimately so, you know, reverse engineer, we kinda say and that's I would say a little bit
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generously. Let's call it scrappy. The scrappy way to do things. You don't have any money you, you know, you need to get, I you, you know, rather than just try to come up with an idea from scratch when you're kind of a beginner, the better way is to go learn what businesses actually work, how they work, why they work. Go look at thirty to fifty. That's like a real world NBA that you picked up. And then find one of those that you think you could mimic and put your own twist on. Right? That's that's idea one you had. By the way, with that comes, also you could just buy the business. So for a lot of these, even a two million dollar business, you can,
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go get an SBA loan.
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A lot of these will say that they're SBA loan eligible. So let's say that you're in the United States, you can go get an SBA loan, put down ten to fifteen percent. So if you can go get two hundred grand, you could buy a two million dollar business that's doing six hundred six hundred k of profit, per
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year. And so you could actually go buy that business and just try to grow it. Because actually,
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getting a business from zero dollars in revenue to two million in revenue we'll put eight million in revenues pretty hard relative to taking a business that's at one point eight and getting it to three point one million, for example. Like, you know, adding an extra million of revenue to a business already working is actually much easier than going from zero to one. For sure. I think you got both options on the table there. It's just more risk.
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Well, yeah. There's there's a little bit more risk because you're personally liable for the for the for the loan there. So, you know, you have to buy a good business. You have to you have to be able to know what a good business is. And that's where maybe so mentors could help.
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The other business the other idea you said was basically a membership service,
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a membership site a membership community for some niche. Right? That's kind of like a separate idea. It has to solve a specific problem. So a lot of these, like, you'll see a lot out there that are memberships for launching a business. That's not that's not nearly specific enough. It's got us to be geared towards employees,
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and and, like, there's a clear beginning middle and end, and there's an outcome.
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And there's a clear ROI as opposed to, like, accountability or whatever it is. You know what I mean? Right. Right. Right. Nothing soft and fluffy.
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Alright. So those are good. I think those are really good. In fact, I think the first one you said is, I think, the right answer.
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That's what I would in reality, that's what I would go do. But to make it fun, I'm gonna come up with some other ideas. So is that what you had?
15:03
That's what I would it's like if it was my cousin and my cousin's like, yo, how do I do this? I'd be alright. Look. This is what we're doing.
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You need to do this. Worst case scenario, you're gonna go learn what a bunch a bunch a bunch of blueprints successful businesses, and maybe you don't pull the trigger on any of them, but still was a good use of your time. And best case scenario, you find one of these that you say, I could do that and either you buy it or you're gonna, like, remix it and create your own version of that. So that is, I think, the right answer. The second right answer would be the e commerce committee because it's not hard to build an e commerce brand, either on on Amazon or or on Shopify
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that can sell for a million dollars, but kind of, again, a boring answer. So I'm gonna give you a more fun answer. So
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Here is,
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here's one idea.
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The four most beautiful letters in the English language are
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q s b s. Alright. So what's the q s b s idea? You're gonna create a q s b s advisory firm
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Well, what is that? That's super niche. Technically, this might be considered an agency, but but I think we'll allow it because it's so specific in niche here, not an off the beaten path.
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What here's what you're gonna do. Now when any company starts, a tech company starts, that's going to be Q SBS eligible. That Q SBS eligibility is You have to say what Q SBS is. Oh, sorry. Q SBS is a tax treatment
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for qualified small business stock. What that means is that if you're a business that fits like these five
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criteria,
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which most tech companies fit, then when you sell, if you've held the stock for five years or even if it's a little bit less than that, you can still kind of roll it over.
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Your first ten million dollars of your gain are gonna be tax free. Not only most tech companies, most new C Corp
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that hold for five years? Well, it would would fall on There are some exceptions, like, you can't do it if you're a doctor or lawyer or real estate. Like, there are things that are excluded. But again, that's kind of the point here. It's QBS Advisory. We're gonna help you figure out. Are you eligible or not, and we're gonna provide a letter that says
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we attest to the, you know, the belief that this is gonna be qualified small business stock. Now why is this easy to do? Why is my strategy this? Well, if I'm trying to make money,
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kinda like you described with the membership. I need to create ten times more than I'm taking. Right? This is a general rule of life. That's probably a good rule of life. Create more value than you're trying to take. And
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that's what I'd be trying to do here. So I was looking for something where
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with a small amount of work, I could create a lot of value for my customer. Well, or that sounds generic, but, like, in this case,
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If my stock is gonna be QSBS,
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eligible,
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that might save me ten million dollars down the road. And that's a pretty big, huge benefit.
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So would I pay
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five thousand dollars or ten thousand dollars for,
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you know, in legal fees in order to an advisory fees in order
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to, protect my possible ten million dollar gain.
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I would And I think a lot of people do. And so what what I would do here is I would build a advisory firm that says, we are QSBS experts.
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We know the ins and outs of QSBS were respected.
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I would hire maybe lawyers or accountants that have done this before. And I would say, hey, on a as needed basis, I'm gonna when I get a customer, I will pay you whatever, three hundred dollars an hour, five hundred dollars an hour for your time. To do an assessment and write a letter that basically assesses the eligibility you think for Q SBS. Now, Q SBS is not like a black and white thing.
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It's not like a QBS is basically when you when you get the sale, you declare, you say this falls under QSBS.
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But if you ever got audited, you'd have to be able to protect, you know, defend that. Why did you say it was QSBS eligible? And so what companies and individuals do is they will go go get a letter that basically says
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We, as experts,
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have looked at this business, and we believe that this is gonna be QSBS. This is qualified from all business stock. You know, like, the four zero nine what's it called? The four zero nine. Yeah. Four zero nine so when in order to do a bunch of stuff with your business, you a lot of times tech companies have to get valued every year for purposes.
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Every year you should get valued. And then that also is necessary when you wanna issue new stock or whatever.
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For employees or for investors,
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you usually set a benchmark for nine eight. But there's a lot of companies that do this as a service where you spend you spend five or ten fiverr to ten thousand dollars. And you don't actually give them that much information. You give them your financials. And then they ask you to submit, like, ten publicly traded competitors
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And then they just, like, say, alright. We think that your valuation is blank. And you you spend five to ten thousand dollars, I think, for that. You're basically want it to be low, usually. Usually what you're trying to do is get a low four nine a so that everybody's options are priced low.
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And so it's, like, you're not not even, like, you're trying to justify a high valuation. You're actually trying to justify a low valuation in most cases. And it's kinda crony capitalism a little bit. Like, they'll be like, yeah. Yeah. Yeah. We'll make it low and they or we'll we'll be fair and then they won't get you. And they, like, set it really low. But,
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yeah, basically, you're you're what you're suggesting is doing the same thing for QSBS. Which is Yeah. And four zero nine a is an equally valid idea. But what I would do is I would I would create this room. What I like about the QSBS thing is it's a little bit higher ticket. So typically, these people will charge, let's say, ten to fifteen thousand dollars for the initial at a at a station letter. I don't know if I'm saying that word. Right?
20:22
But then on top of that, you could even charge kind of like an ongoing fee because there are all these, like, foot faults. So it's not just like, there is some genuine help. So for example,
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Oh, you're gonna sell secondary. There's things you might do wrong when you sell secondary that could disqualify you. There's disqualifying events.
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And so, you know, you can't bill for revenue in specific ways. If it's categorized as x, it might take you out of QSBS eligibility.
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And so it's just an insurance policy. It's to cover your ass. It's a legal thing. It's something people don't wanna do themselves. Just too high risk to do yourself.
20:54
And you literally can't do it yourself because you can't write the letter for yourself.
20:57
And so, you don't have to have it, but it is a nice to have. And what I would do is I would go scare the living shit out of every tech company that I find on crunchbase.
21:06
And I would say, don't you want this ten million dollar exclusion for you?
21:10
Person, by the way. It's not per company. So it's per tax return. So let's say there's a company with, that's gonna be gonna be big. Every single one of those executives is gonna want
21:21
their stock to be QSBS eligible. And so I would go to them and I would scare the living shit out of them that they might get this wrong. And I would tell them, don't worry, we can cover this for you. And here's how we'll cover it for you. Pay us, whatever.
21:33
Either the lump sum upfront or a monthly recurring fee or an annual recurring fee, fifteen hundred fifteen hundred dollars a year, two thousand dollars a year, and we will, kinda make sure we're your advisory on that so that, you know, you're covered. At the end of the day. That's a pretty brilliant idea, actually. You know, if you just think about it, right, how do you get to, let's say,
21:51
we talked about to sell a company for over a million dollars. Let's just round up and say you gotta have three hundred thousand dollars
21:58
of
21:59
of annual net profits. So how do you get to three hundred thousand of annual net profits
22:04
if you're charging, you know, roughly
22:06
ten thousand dollars a year, you only need thirty customers a year. Thirty customers a year? I've taken shits bigger
22:14
than Come on. If you can't get to a million dollars this way, you can't get to it anyway. Right? I think what holds a lot of people back would be there's not gonna be a bunch of these. So this this is not, like, you can't bring up ten thousand of these, like, you know, social media marketing agencies. There can be a million of those.
22:28
You have to have some expertise or partner with people who have expertise. So they sent, you know, some of the some of the
22:33
the mechanics of how to do it.
22:35
But, man, there's niches and riches. And, like, that's not that hard to do to get to the numb many upsells to that. Which is like the key to selling a company is they say, alright. Well, how does this grow? And you say, well, do these companies also need a four zero nine four zero nine eight? Do they also need these other legal services? Do they, of course, they do. That's how you do it. And you and you sell the dream a little bit of what the expansion revenue comes from. And the key here is great. I don't need to be a law firm. So there's rule all all kinds of rules around who can own a law firm. You don't actually have to be a law firm to do this because it's not legal work. It's advisory.
23:09
And it's like some blend of, like, legal accounting and just advisory. And so I think because of that, you don't need to be a law firm if you do this. By the way, I I've worked with somebody who does this. If everybody actually needs this letter, feel free to email me. I'll I'll I'll route you to the guide. You can you can actually use What are you gonna be like the mob and take a cut from making an introduction?
23:27
You should. I gotta get my be quick too. Alright?
23:33
That's actually
23:34
better than my idea, by the way, because I actually think this is simpler because it's already a service others are providing, and you're just basically
23:41
connecting.
23:42
Yeah. Yeah. So, I would look for things like that. I had, like, five other ideas that would fit this. But, okay, for this exercise, we're doing one. Now let's move on to the main event.
23:51
The billion dollar idea. By the way, do I get a thrill of the shill before we get to the billion dollar idea? Oh, hold on. What time is it? It is time for the thrill of the shill. Sam, you are up. Your first time providing the thrill of the shield for those who don't know. This is where we shamelessly chill one of our companies. But We have to do it in a thrilling way. Meaning, we gotta provide some value, some entertainment, some insight. We gotta provide something, a little something. We gotta if we're gonna do this. Here we go. Three of the shots. I'm gonna try and keep this one
24:19
short because this short this might be a short episode. But, basically, I remember in two thousand and seventeen, I went to NerdWallet nerd wallet dot com went to their office. Tim Chen was the CEO and founder. He invested in the hustle. And I remember being like, Tim, I'm freaking out, man. My expenses went up because of payroll from thirty thousand to eighty thousand dollars a month. And at the time, they had just rented Twitter's old office. And they were, you know, they probably had a payroll of three million dollars a month, or maybe even five million dollars a month. And I remember he looked at me funny, and he was, like, trying to be empathetic, and he was nice and he and he kinda, like,
24:51
was nice by saying, oh, wow. Wow. Yeah. I understand. And I was like, Tim, I'm so stressed out about this. And what he said to me was, basically,
24:58
Look, you kinda have to detach yourself and your payroll needs to just you just it's just a number on an Excel sheet. And you just have to, like, figure out do I deploy this much money here and what's my outcome going to be and what's my profit going to be? And that didn't sit well with me until
25:14
about twelve months ago. So I launched this company called Hampton,
25:18
joinhampton.com. It's like a community for founders who are doing at least a million in revenue, but the average member is, like, twenty five million a year. And I remember,
25:27
like, that freaking me out forever. We had a team retreat last week. I went out there. And right now, we've got sixteen full time employees or fifth fifteen, including me. And then we've also employed, I think fifty facilitators now. So in, like, eighteen months, we've created,
25:42
what's that, seventy or sixty five jobs, something like that.
25:46
And I am so not stressed about it this year. This is the only time I've not been stressed about
25:51
payroll and providing people because the way that we've looked at it is exactly how Tim has explained, where it's just like, what's my input, what's my output, and this idea of being like a capital allocator. I've never had that. Where it's, like, been as clear cut as, well, I hired this person. I get this much out after three months. It's completely changed how I've,
26:13
how I've run this company, and it's made me so much more relaxed. And I don't know what made that shift other than his conversation, but you know what I'm talking about? Have you ever, like, been through this for you? Well, we both used to be kinda like, oh, for an entrepreneur, you're a product maker. And, like, we'd be sitting there writing you know, you're writing the hustle. And, you know, I'm sitting there in in designing things and working with it and just trying to make a product But there is an up level of that, which is
26:35
at as at once you build the product, and the product has part which Hampton does, has product market fit. People like it. They use it. They they're in it. Now you're a capital allocator. Basically, you're taking you're you're just deciding where resources go. So,
26:48
I need to be able to Like, you can't be tight on money because money is your job. You have to deploy that in a way that's gonna get more output than the input.
26:56
And sometimes you'll miss you're not gonna be a hundred percent. But No. Knowing that that's the job makes it easier, and it sounds like
27:03
having
27:04
the right conversation at the right time from somebody who's
27:07
a peer of yours was the key?
27:10
Yeah. And that's, by the way, what hope what the whole one of the whole things about Hampton is that you have peers with other entrepreneurs that are of similar sized company
27:18
that that that you have. And, anyway, that, like, learning, I remember having our team off-site at previous companies, and I'm like, how, like, this person just had a baby. Basically, I just had a baby. How am I gonna create enough revenue in order to, like, provide for this kid? Because that's how it feels at first. Or you're, like, No. You didn't.
27:38
I didn't remember. Yeah. Like, I am the one who did that. Hey, Jess. When's our baby shower?
27:46
And
27:47
this year, it's been or or you'll be like, this person costs two hundred and fifty thousand dollars. There's no way that's a fair salary. Right? It's like, well, that's not It's a house where I'm from. Are you yeah. Like, that
27:57
yeah. Can I live in you? Do you have three beds in a bath?
28:01
I'm not paying you two hundred fifty thousand dollars.
28:03
So that's been my biggest takeaway this year with Running Hampton. So anyway, if you're particularly if you're listening to this and you do at least fifty million in revenue, we're building groups for join him to dot com. Alright. Let's do, the billion dollar one. You want me to go first? Can I go first? Okay. Go. Alright. I'm gonna steal one of your lines. So Sean, what if I told you I had an idea.
28:24
This is your line. I'm leaning. What if
28:26
what if I told you, I had an idea that Elon Musk himself would be bigger than Tesla.
28:31
Would that interest you?
28:33
I'd be fairly interested. Can you keep going?
28:36
Do you know who, I think his name Kai fu Lee. Do you know who that investor is? He's the, No. Sounds awesome though.
28:42
He's a a famous Chinese investor lee, one of the early guys at Apple, early at Google, he wrote a great book about why China's amazing,
28:49
in terms of, like, why they're gonna beat America. And he was saying that this thing
28:54
is going to replace forty percent of jobs inside the next twelve years. Would that interest you? I would love to replace forty percent of jobs in the I think about that often.
29:05
Now if you're thinking of talking about AI, you're wrong. Here's it. Here here's what it is. It's humanoids.
29:11
Humanoids,
29:12
that's what that's the technical term. Basically,
29:14
imagine robocop or imagine
29:17
machines.
29:18
And I think that those whole,
29:21
business of humanoids, which is robots to automate a lot of processes. But a lot of people think, like, just blue collar jaws, but that's not entirely true. It's, like, every type of job So Elon Musk said that,
29:32
that Tesla has is working on humanoids. I think it's called Optimists. It's what it's called. And he went on to say that, like, at a recent investor call, he was like, not a lot of you people are talking about Optimists or robots, but I think that's crazy because this is actually gonna be bigger than our car business bigger than self driving, bigger than solar. It's gonna be bigger than everything. And I don't think you guys realize how big this is going to be. I invested in this company,
29:54
in a space called Figger. And I talked to Brett Adcock. We had him on here, and he basically has me convinced that this is gonna be, like, the biggest industry
30:02
mover or the in the next, like, ten or fifteen years. And I think that
30:07
what I would do invested in figure?
30:09
Yeah. Is that is that I tell you that the thirtieth time? No. No. No. No. I've never told you that. That's funny. But, what valuation?
30:18
Three hundred million dollars, I think. Okay. That's not bad. And I invested It's not that bad. Well, I invest and I invested a lot for me, which I think is around sixty thousand dollars.
30:29
Well, yeah. He's like your hero. So, you know, you actually just paid for some time. Yeah. I paid for access. I paid for him to reply to a tech
30:37
But, basically, that that was a lot of money for me. I I don't normally invest that much. But my reasoning is is, like, this could I could see it going out of business, which is incredibly likely. I could see it selling for three billion dollars or I could see it becoming, like, a fifty billion dollar company.
30:52
But it like, any any angel investment, I think the likelihood of it going out of business is incredibly high. But, basically, here's my reasoning.
31:01
If you or why reasoning why I think this would be a big company. I think this is gonna be, like, one of the biggest things that happens in the next fifteen years. I think that the people who are working on this space are typically like hardcore,
31:12
hardware engineering nerds. And I think that I could spend a year going to every meetup, going to Carnegie Mellon, which I think a lot of these folks come from, And I think I could find a handful of people and do a really good job of organizing these people around a company. I think that I could do a good job of
31:30
cold emailing the Brett Adcox of the world and getting in with them as well as some of the older guys in the space and making them, like, open up to me and say, what are tangentially, like, the areas that you're not attacking that are interesting. I think I can get them to explain to me,
31:43
these problems.
31:44
I think that
31:46
I think this is so big that there's gonna be more of these robots than there are humans.
31:51
And I also think that when you in order to create a billion dollar company or a company that can net you a billion dollars, That's just you have to go huge. And you I think that the odds are what I'm doing personally in my life, I don't have a goal becoming a billionaire, but I think that could happen is I'm creating companies that sell for a small amount of money, and then I'm letting compounding
32:11
kinda, like, do the rest. That's gonna take me fifty or eighty years. Who knows how long that's gonna take me? But if you wanna make it a short amount of time, you pretty much have to raise VC
32:19
and you have to do it in an industry. That's like tidal wave where you're just trying to catch that wave. If you wanna do it in, like, ten years, rather.
32:26
And so I think I would go into the humanoid space. What do you think about that?
32:31
Well, as you know, I love that idea because I was gonna say that idea. And you said, no, can I say that idea today? And I said, alright. That's not what I said.
32:38
I said I said, I've literally written that out already. Can I have that? Will you send me that? And I'll say it with my lips? And I was like, alright. Fine, bro.
32:47
Well, let me tell you something interesting. Alright. Let me add to it. So, obviously,
32:50
a hundred percent agree. I think I I actually was specifically thinking, like,
32:55
warehouse robots. Like, I would even just kinda narrow it down and be like, alright. If I was really gonna do this, I would try to figure out what job in a warehouse I can eliminate
33:04
by using a robot. Which is what, like, packing boxes. Basically, I would look at the minimum wage labor class, and I would say,
33:11
Nobody wants minimum wage, essentially. The workers don't wanna be minimum wage. The employers don't wanna pay minimum wage. And get, like, kind of a flaky output.
33:20
And so I had a friend once that was telling me he's, like, I invest in companies with no product market fit risk, because my friend, Michelle.
33:28
And I said, what do you mean? I've never I just thought every startup has product market fit risk. That's the whole point. You're trying to get to product market fit. He goes, no, I invest with no product market fit I never heard that before. And he goes, I'm just looking for technical risk. Meaning,
33:41
if you could build it, the job is done.
33:44
And he's like, of course, you'll still go sell it, but, like, there it will be so easy at that point. The market will obviously absorb this if it can actually do it. There are many things like this. So, like, self driving. If you could actually make self safe self driving cars, cars that do not crash that are, you know, self driving. And, obviously, there's always the edge cases. But There's infinite market demand for people not to want to be driving and sitting in traffic and having their car parked instead of having it go run around and earn the money by dropping people off. And so he his idea, you know, he invested in this pizza robot company. So it was, like, basically Which was awesome. Zoom.
34:18
Yeah. Well, there was there was, like, a few of time. I don't think any of them worked out. There's always, like, these waves, and it's, like, it was too early that tech wasn't there, and all the companies crash and burn, but, like, the next wave should start right now. And, actually, that's maybe where I would go with this. So he's like, you know, if you're Domino's,
34:32
do you wanna pay, you know, whatever? I don't know what they pay. Fifteen dollars an hour for somebody who's gonna call in sick. They're gonna be checking their phone. They're gonna be goofing off. They're gonna be eating pepperonis off the pizzas.
34:43
They're gonna, you know, they're gonna get in fights with the other people there. And, you know, then they leave, and then you have to replace them, and then you have to train that new person,
34:51
or would you rather buy one machine that prints a perfect pizza every single time, twenty four seven never calls in sick, never complains, never ask you for more money, never ask for a raise, never spits in the food, never doesn't. Would you rather have that? It's like, oh, of course. You would always have the robot that makes the perfect pizza. And he's, like, making a pizza is incredibly, like, it's a it's a sandbox
35:11
thing. It's, like, not, like, a robot that can do anything.
35:14
It's a
35:15
specific robot that can make a pizza. It can flatten the dough into a perfect circle, apply the cheese, apply the sauce, whatever, bake it for a certain time, and then put it in the box and cut it. And, like, that's what that needs to do. And I'm gonna, you know, so so what I would do is I would go and do exactly what you said, like, go to MIT, go to Carnegie Mellon and and be, like, hey, guys. We're building a pizza robot. And when we do, there's whatever. How many pizza chains, you know, how many pizza restaurant location? How many pizza chains in the US?
35:43
And by the way, there was a company called zoom. Zoom zoom. I forget that went out of business and people made fun of them. They're like, in the headlines, they got totally
35:49
mocked
35:52
they raised five hundred million dollars.
35:55
That was cool. And that definitely could've worked. I think they screwed it up. They, like, went they, like, made restaurants that you could go to. That that was not right. There's eighty thousand pizza chain, pizza restaurants in the country. Eighty thousand.
36:06
And you would start with the chains because the chains actually have the most to gain by doing this. Right? And they would just help
36:10
you. They'll they'll they'll sign letters of intent. Like, I remember when boom, supersonic, the airplane company came out at YC, and they were like, yeah. We have a hundred million dollar purchase order from like, Richard Branson.
36:22
If we could build this plane, they're gonna buy it. So now the question is, do you think me and this pack of nerds behind me can build this plane? That's the bet. And, like, whether you do or don't believe it, that was the bet. And I like that idea.
36:34
Me too. I'll tell I'll tell you another thing about the robotics thing before, like, test I like tech risk a little bit more than,
36:40
like, demand risk for sure. Yeah. Yeah. I agree. Me me too.
36:46
Even though that's not at all how I've, you know, thought about it before. But if I was gonna go try to build a billion dollar company, I would go try to build one with only tech risk and not demand risk.
36:56
So there's here, I'm gonna tell you a little little story here. So shout out to this guy Abe. You probably don't know Abe, but his boss
37:05
Kevin Ryan came on the pod. So Kevin Ryan comes on the pod. He's fascinating.
37:10
But, like, he had this aura of I'm a badass who does bad ass things. I'm kinda busy.
37:15
And so,
37:18
of course, Ben applied Ben's law. So the the Ben's law for those who don't know is You don't try to contact Sean. You contact Ben. Ben is the faster, more approachable, smarter, better, better human beings to to approach and get the insight on and and get in touch with me than trying to go to me directly. And so Ben applied Ben's law. Ben goes and he finds Kevin Ryan's Ben. And so he finds the number two that's, you know, like there. And so he finds this guy Abe, Abe Murray. And, I was I'm subscribed to Abe's newsletter, and he just had a good one, which he goes,
37:49
He goes, why the consensus view of robotics is wrong? And he goes, I think that most people think of, you know, the the future of robots is this humanoid. And maybe a humanoid that walks and has arms and legs,
38:02
is the is the eventual solution.
38:05
But that might be too far out right now. And, actually, we should look at the most successful robot in the world today.
38:11
What is it? The dishwasher.
38:14
It's installed in everybody's home already. It's a robot dishwasher. Replace that job of having to wash dishes for, you know, the majority of homes goes, it doesn't have arms and legs. It doesn't look like a human. It is a purpose built robot that solves one specific need. And they have some company called Renovate Robotics.
38:30
And the picture is basically it's a robot that sits on a roof that does roofing jobs. So it'll go and it'll replace a roof, basically. It just goes up and down your roof you know, or, like, not replace, but, like, you know,
38:43
lay down the roof or whatever, like, you know, install a roof on a on a home.
38:47
And he's like, if this works, it's gonna be he's like, we just did the first robotically installed roof. If this works, again, you have lower cost
38:55
higher quality, more, like, consistency,
38:58
more availability, you know, for for roofing companies. And so I like this idea of
39:04
these purpose built specific robots, the equivalent of dishwashers, and pizza mason's, and roofing robots.
39:11
If I was gonna do the billion dollar idea, that's what I would do. But I'll give you their homepage. The homepage is labor is the biggest challenge for roofers. Our robots make roofers twice as productive, and improve safety by reducing work at height. Easy. That's an easy sale. Another and I'll wrap this up. Another reason why robots are interesting is You are only working within the laws of physics. In the laws of physics, I find I find those to be a bit
39:36
easier to work in
39:38
compared to, say, creating the next
39:40
Louis Vuitton,
39:42
like to creating a brand or consumer product I actually think it's more complicated than just saying, well, I, like, because that's an infinite number of options. Within hardware, it's just
39:52
Like,
39:53
it's just like so much simpler and straightforward versus generating demand or creating a brand that people love, or you're creating a social product that people love, which is so much more rare and more challenging. Have you heard that Elon Musk, quote,
40:06
the the only real laws are physics, everything else is a recommendation?
40:10
No. But that's brilliant.
40:12
Alright. So that's a great idea. I think these, purposeful robots
40:17
That's a great idea I came up with. It says you.
40:20
Well, I don't know what I'm saying. That's these these these this robot idea, I think, is is the right idea.
40:26
By the way, here's a way to, like, create more luck like this. Our buddy furcon,
40:30
has this space in San Francisco called a founder's inc, f dot inc,
40:34
And what he did, I was like, so what's the plan? He's like, oh, I'm just gonna recruit, like,
40:39
the smartest hackers I can find and just be like, hey, here's a free office. Here I'm gonna help you out. And invest in you before you even know what the hell you're doing. And, I'm gonna help you get these off the ground. I was like, well, that's great. But how are you gonna get the best hackers? Because I'm a give them toys. So what do you mean toys? He goes, I took this first floor of the entire office. There's no desks. It's just a hardware robotics lab. He's like, so I'm buying, like, three d printers,
41:02
drones, laser cutting equipment,
41:05
robotic arms,
41:06
stuff that the average hacker can't buy, you know, the average, you know, twenty two year old
41:10
engineer can't go buy this, you know, fifteen thousand dollar thing or thirty thousand dollar thing.
41:16
But FERC can't buy it. And he's like, I'm just gonna make it available for free and come in here and work on And so now he's got in that lab. There's a guy who's got a brain device that, like, you put on your head, and it, like, makes you more focused. There's a guy who's there's a company called Orangewood Labs that basically they have this robotic arm that can,
41:34
do whatever you program it to do. So when I went in there, they were like, watch. Gonna make it, you know, make a margarita. Watch this. We can make this on the the application they're doing is painting or, like, I don't know, powder coating or something like that. Powder coating. You ever done powder coating? And I was like, no. That's really dangerous too. I was like, no. Stop asking me questions. And they're like, well I think everything is powder coated. Yeah. It's basically like how you you know, all you do it on floors, you do it on any metals or whatever, like, for a car or something like that. So they were like, yeah, this thing can powder coat basically better and faster, like, automatically.
42:06
And so we could do jobs at, like, you know, one fifth of the price of a human being. Because we just give them the robot. The robot just goes and does it, and then it comes home. And that's it. And so I was like, oh, interesting.
42:17
But there's a lot of people building stuff this. And one way to increase serendipity is to, like, go to these kinda hardware labs or go find out where they hang out and just go talk to people, see what they're what they're building. And then a lot of these people who do this commercializing.
42:28
They're not
42:29
they're not a lot of them don't care about business. A lot of them are unorganized. It's like the the typical, like, scientist wears, like, who forgets to put one sock on and only wears, like, one sock or, like, their shoes on on the wrong foot. It's, like, they're just, like, these brilliant people who don't necessarily care about And I think if you could be the organizer, you can win. What do you have? Alright. So my path to a billion.
42:51
Do you want the dark idea? Or you want the light idea? Do you want the the good idea or the evil idea? Which one do you want?
42:58
Oh, I don't know.
43:00
That's I wanna go dark, I think, but Okay. Is it realistic. Maybe both, but I'll do the dark one fast. So here's the here's the big pitch for the dark idea.
43:09
And a real for some other country.
43:12
You
43:13
could
43:13
figure
43:14
the
43:15
rest out from there.
43:17
What Palmer Lucky has done with Andrew for the US defense department?
43:21
Do it for Israel. Do it for,
43:24
do it for another country. Go find a country that wants
43:27
you know, advanced weapons technology, and be like, cool. I'm gonna recruit the brightest minds, and we're gonna give us, like, you know, a fifty million to a hundred fifty million dollar contract and we'll get started Dude Palmer's on a tear lately. And I would literally go look at the road map for Andrew. I'd be like, oh, they built this, like,
43:42
missile that can fly its self, you know, and lives in this, like, vending machine. I don't know if you saw that video of, like Yes. It's amazing, man. He's on a tear. Pocket inside.
43:50
I'd be like, cool. Do you pick from the Android menu? We're gonna figure out how to build those, and you guys will own the IP. That's what I would do if I really had to, you know, if I was if I wanted to go into more of the the gray or dark areas where it's, you know, there's a bit of war and destruction involved. But here's the light idea. Here's another idea.
44:10
We're buying a university. Okay. So what are we doing? There are a lot of colleges for sale, more than you would
44:17
think. Are they on go to a website? They're on deal stream. So go to a, website called deal stream. Come on. That was kinda funny.
44:24
Well, they could be. Deal stream is literally likewise light. It's just
44:28
different name. It's the same idea. It was a business brokerage.
44:31
But if you look colleges for sale, they're they're there. And they're not that expensive. You could buy colleges for, like, five million dollars ten million dollars. So to do this, you're gonna need a lot of money. But the good news is that universities are worth a lot of money. Like, what would you peg the value at Let's start at the top end. Like, what do you think Stanford or Harvard is worth? Somebody really if if mega billionaire genius wanted to buy Stanford or
44:53
Harvard
44:54
Well, what would it even cost? Could it I don't even know. Would it be would it be, like, a harvard
45:00
a hundred plus billion dollars? I mean, the endowment alone, I think, is, like, what, the endowment alone is almost a hundred billion dollars. Right? So Yeah. It's hard to even it's hard. It's hard. It's gotta be
45:10
five hundred billion. It might, like, These are companies that are worth they're uncertain. Universities are essentially properties that are worth,
45:17
you know, a Facebook.
45:19
They're crazy. They're crazy. Harvard endowments is is fifty three billion. So, yeah, I don't know. The it
45:24
a hundred to two hundred billion, three hundred billion, something like that. Yeah. Like, so big hard to understand. Hard to even fathom. Right? Not for sale. Can't be bought, essentially. Same thing with Stanford. Now let's even go to, like, a Belmont. Right? So, like, let's just do some quick math here. I went, Belmont. You went to Belmont. What's the tuition at Belmont?
45:41
Back then, it was thirty thousand. Let's see what it is now. Belmont University tuition, thirty eight thousand dollars. Alright. So thirty eight thousand dollars. And how many students go to Belmont? Let's say five thousand.
45:53
A thousand,
45:54
per year per car or the whole whole university? You could say, let's say eighteen hundred per year. Alright. So let's go. Let's round up to two thousand. So even a small small private school, where where is Belmont? I don't even know where it is. Nashville, Tennessee. It looks like they have seventy three hundred student. So two thousand per class, let's say. Cool. So seventy six million dollars top line.
46:13
That's not counting endowments. That's not counting grant grants and research. It's not counting the facts that tax free that it's, has, like, all these other benefits. Like, we So you can actually see see the numbers, by the way. The Belmont's
46:25
annual
46:26
revenue is four hundred and sixty four million dollars. Their expenses are
46:30
three hundred fifty million dollars. So they make a hundred million dollars a year in profit. They only have two hundred million dollars in liabilities, they have one point five billion dollars in asset.
46:39
And that's for a
46:41
middle of nowhere
46:42
at university.
46:44
So that's the game plan. We're we're building one of those. Now what are we gonna do? So we're gonna go buy one. What are we buying? We're essentially buying two things.
46:51
I want the campus,
46:53
and I want the liquor license. And by liquor license, I mean, the accreditation.
46:57
As long as it's already accredited, I don't have to go through that process.
47:00
Now
47:01
why do I want a campus? Because I want the land. I want the buildings. I want the depreciation. I want a physical place because I think it adds to the prestige.
47:09
We will have a large online component, but whatever.
47:12
Now
47:13
the main goal goal here is we gotta brand this school.
47:16
And so what are we gonna do? We're gonna make it a bit of a luxury product, meaning
47:21
it's gonna be only for the elite of the elite. So,
47:25
Yeah. We have to have a lower acceptance rate than Harvard.
47:28
We have to be known for we're gonna sponsor competitions for, like, you know, mathlete type of competitions.
47:34
Hardcore science competitions,
47:36
we are going to go around the country to high schools and basically be like, we're going after gamers, programmers,
47:42
and hardcore math kids.
47:44
And we're gonna sponsor a ton of competitions. Guess what those sponsors cost?
47:48
Pizza.
47:49
The currency is essentially provide free pizza. There is no competition. When I was doing our e sports company that we sold to Twitch, I was like, alright. We wanna create the world's biggest high school e sports league, and we did in, like, less than a year. That's what it costs.
48:02
Like, four hundred fifty pizzas is what it costs me to, like, sponsor these programs.
48:07
It costs nothing. And so we're gonna go and we're gonna first gonna get in front of them. Now, when I why did I go to Duke University? I went because I in fifth grade. Duke did something called the nationwide talent identification
48:18
program.
48:19
And I'll be damned if my mom didn't wanna find out if her kid was talented. And so we take this test, and we take this test, and it's It's only good Indian version of, like, a, like, one of those model competitions they have at the mall when you're at twelve. Yeah. It's a beauty bag. It's like sports, but for brown people.
48:36
My mom puts me in this. I really I see I think every kid in my school took it. They just went to the school, and they were like, hey, we're trying to identify the most talented, gifted and talented kids. Also, parents, can you put your,
48:46
income on the statement as well? So Exactly.
48:52
Is that impacts your IQ a little bit? And, you know, we gotta get paid. So I got a score back in a goodie bag. And literally, the goodie bag was a Rubik's cue. And I I don't know what the hell was going on, but whatever that is, I'm gonna go find the marketing coordinator that did this Duke calendar day for his program. We're stealing that. We're gonna go get them while they're young, fifth, sixth grades. We're gonna be identifying these special,
49:12
you know, special gift and towels at kids.
49:14
So make it a super prestigious,
49:16
you already know the name's gonna have some old money shit. Right? You know, you know, you know, we're going
49:22
I've already done this before with the private school names. Yeah. It's gonna be like Bridgemont Oakland. Waldorf.
49:29
You
49:30
know. Kennedy Excelsior.
49:32
Yeah. Exactly. So we're we're definitely going that way. We're gonna have our own entrance exam. So we don't take the SATs because we're not peasants. And so you're gonna,
49:42
we're gonna go from city to city And we're gonna have our own entrance exam. It's gonna be a six point exam. I don't know what that means, but I let's just say that's what it is.
49:51
Now what else are we gonna do? You know, these speaker bureaus where you could go pay, like, fifty thousand dollars for Obama to speak? Yeah. We're doing that. More like two million dollars for Obama. But, yeah, Okay. Well, we're we got a budget. Alright? And the budget's gonna be, like, we have, like, a six million dollar speaker budget. So when I'm raising this money for this, I'm gonna basically raise to seventy five million dollars, maybe a hundred million dollars for this. And a lot of that is front loaded in brand building. And one of the things we're gonna do is about five to six million dollars a year at speaker fees. And so I'm basically gonna pull the Sam Bankman free without the fraud. So, you know, Sam Bank for free took the money and basically was like, how do I Tom Brady, wash everybody that FTX is, like, a thing, and it's legitimate. He's, like, Tom Brady,
50:31
Larry David, Steph Curry, this arena,
50:34
Oh,
50:35
this guy is, like, a super connector in Hollywood. I'm gonna put a hundred million dollars into his fund. And now he's gonna make He's gonna get me, you know, dinner with Bill Bill and Hillary Clinton. And, like, that's what he literally did.
50:46
And although he did a bunch of screwed up things,
50:48
Honestly, it's kind of inspiring the way he just threw his weight around using money to, like, build a brand.
50:55
If he had not literally stolen money from customer deposits to do so, that would have just been an incredible,
51:02
approach by an entrepreneur. Like, it actually would have been very, like, lauded of how he did it the same way that, like, you know,
51:08
Uber is is sort of praised for the way it just, like, brute forced its way into to different cities and actually, like, built a huge global brand.
51:14
So that's what I would do. So I have speaker fees. Those are going on the website. Those are going viral,
51:19
to get those people to do, like, kind of speeches to our kids.
51:23
And we're gonna also spend a ton of money on direct marketing. So no university really goes D2C except for the low end University of Phoenix type of shit.
51:31
That's crazy. And by the way, they are amazing at it. They are really good at it. They built up their, like, five billion dollars in your business doing it. In the world of, like, direct response, there's, like, financial newsletters,
51:42
then there's, like, Omaha stakes who, like, crushes it in the stamp stock around the world.
51:48
All this function. And then, like, video game people,
51:51
and then universities.
51:52
University of Phoenix
51:54
crushes it. I think I think them and, like, full sale are in the top, like, twenty of spenders on Google.
52:01
Yeah. Yeah. Exactly. And, you know, IT technical institute running TV ads and stuff like that. That's what I would do. So I'd basically go through
52:08
podcasts. I'm gonna blanket them. Every every intellectual podcast that the parents listen to, I'm gonna blanket it with with ads for this. And the ads aren't apply.
52:17
Apply now. Come here.
52:19
The ads are gonna be about how hard it is to get in. About it's gonna be more native stuff about controversy
52:26
Is it right or wrong that the school is so hard to get into that it's only for the gifted and talented that they're discriminating and only allowing the smart kids in? And I would actually drum up controversy
52:36
around that in order to, to build the brand because there's no better brand than a brand that of something you can't get into. So there's this amazing article that says lessons you can learn from for profit universities on cost per click advertising. The University of Phoenix
52:50
in the last five years has spent three billion dollars in marketing.
52:55
On Google alone, it's estimated they're spending roughly five million dollars a month, and they re receive roughly seventy thousand to eighty thousand clicks per month off of Google app. That's insane.
53:06
That's as insane.
53:08
That's wild. What else would I do? Okay. So I'm spending a ton of money on ads
53:12
I hired the best branding agency in the world. I'm spending money on the speaker's fees. Again, I'm spending spending spending. Now how do I make money? Okay. Well, obviously, you have things like intuition.
53:21
But I actually think there's another another way you could do this. It involves my good old friend NFTs.
53:27
Okay. So, hear me out. Here me out. You're gonna respect this idea when you're here.
53:31
Have you ever seen when a stadium launches that they sell something called PSLs? Do you know what those are? Is that, like, season ticket holders for a certain period of time? Or, like, finding club members. We think you're paying twenty five, fifty thousand dollars. Oh, you must be getting
53:45
tickets.
53:46
No. No. No. You got a personal seat license.
53:49
And the license just allows you to buy the ticket. You can't even buy the ticket without the license. So literally imagine every chair in the stadium, And they basically have their own license. Each one has its own license. You have to buy the license in order to buy the tickets. Once you buy the ticket, now you can now you can sell it, now you can sell the license, you can sell whatever Right? They use this to fundraise. So I kinda had this idea about universities, which was if I wanted to start a university, let's say it was gonna have
54:14
you know, five thousand or ten thousand students a year.
54:17
Well, why wouldn't I sell ten thou why wouldn't I meant a ten thousand NFT pack
54:22
around this. And again, I built the brand up. I have a real story here. Unlike most NFTs have a real story. And the story is this.
54:28
What would it be worth to buy a seat at Harvard?
54:32
To own one seat in every admissions class at Harvard. You could use it for your own kid, you could gift it out as a scholarship,
54:39
or you could sell it to somebody who wants to go to Well, yeah. Because the the the the value the rental property.
54:45
The value of a good diploma
54:47
it should go up every decade. So, like, at Belmont University, they don't have any street cred. So, like, my value isn't going up. A Harvard, a Stanford, it goes up. But then if they have a controversy, like, Penn State did. It goes down.
54:59
Correct. And so I wanna have ten thousand
55:02
admissions licenses, essentially,
55:04
So this is a a a ticket you buy. There's one of one. You own it. You could decide if you use it, if you gift it, or if you rent it out to a student that year, and it's gonna pay your rent You're gonna get a piece of the revenue or a piece of the profits from the from the, from the from the tuition.
55:18
Now
55:19
I think that you could sell these for
55:22
Probably at least twenty five thousand, if not fifty thousand each. Right? So, like, I think that's a low end for what you can do if you can tell the story properly.
55:30
And I your boy's a good storyteller. So let's say we get we end up getting to fifty thousand dollars a piece. We sell ten thousand of these.
55:38
I just raised five hundred million dollars. Okay. So, yeah, that's a that's a pretty big initial set of funding. But I think you could do that to get this off the ground without having to go get rich VCs or billionaires to fund this thing. And so I think what you could do is do maybe ten thousand or twenty thousand dollars per per seat here. Sell ten thousand of these. And, you know, we're gonna price these all in eath. That's just five eath. Five eath that you own, you know, a seat at this prestigious university. So I don't know if I would do it year one, but maybe year two, I would move to that once I've built a little bit of the brand momentum. And I would say, you're gonna own something that's gonna pay you back every single year. So you might have spent ten grand on it, but you're gonna get back, you know, two grand a year or a thousand dollars a year in an income plus you own this prestigious asset that's gonna appreciate over time, and you could sell your whole seat later.
56:24
I think you answered the shout of this question.
56:29
I think that's in that's the it's a very compelling argument. I would probably do normal tuition, but I understand that You do normal tuition in addition. That's the beauty of these PSLs.
56:38
You do normal tuition tuition on top of selling this initial seat. It's just that person gets a rev share of the tuition.
56:44
The biggest thing that's wild here is is that you can go on to deal stream, which I am, and I'm looking at universities that you can buy. Here's the university for eight point five million dollars that you can purchase fully accredited, which I don't know what the value of that is.
56:59
And you get a campus.
57:01
Yep. This particular university had peak enrollment in two thousand seventeen with two million in revenue.
57:07
This is wild. This is wild. Fully accredited university Southern California.
57:11
A fully accredited university in SoCal. Alright? Twenty five million
57:15
It's accredited. Its degree is recognized all around the world.
57:19
They get the school can offer f one visas so you know we're getting that international student money because you know who likes being accepted into a hard to get into program in the United States more than a US citizen,
57:29
somebody in China. And so we are gonna go ham on international students. We're gonna you know, that's gonna be a big part of the marketing. So this says this the school has about nine hundred students enrolled in undergrad, MBA and DBA programs,
57:43
There's one physical campus and one branch campus.
57:46
So they I think this particular one has it's as title nine is possible. And I think with Title nine, I think that means you get government funding for sports.
57:55
Yeah. Yeah. Exactly. You're eligible for for getting funding from it. And this is crazy. Right? So I would, you know, I would just
58:02
keep my eyes peeled for about a year. I would go around and, you know, one thing that every rich person likes is the idea of, like, fixing education,
58:09
and I would just go tell him this is a school that you would have wanted to go to. Right? It's a school that is,
58:16
you know, based around people who actually build things and make things, it's gonna be a school that prioritizes projects over lectures. It's a school that is
58:24
you know, it's,
58:26
it's competitive. And it is And it's not online. It's not online, and we're trying to, build the next brand. These old brands, like, you know, even the best, you know, the the Harvard, the Stanford's, or whatever,
58:37
there hasn't, you know, what where is the new one? These are like hundreds of years old. An opportunity to build something fresh, and we want you to be a part of it. You know, I think that that pitch would get a lot of people excited to cut, you know, a million dollar checks. I think that was a nine point five out of ten pitch. Think you did pretty good. You did a great job by starting it off of what do you think Harvard's worth? And I'm like, I I don't even know unlimited money. Not it's it's it's not even sellable probably. It's not even viable, rather,
59:02
what's Stanford worth, what's University of Penn? I, like, it's I don't know. It's they're they're it's invaluable almost.
59:09
That's a that's a very good pitch, Bravo. Alright. Well, that's that's the episode that is the how to make a million bucks and how to make a million dollars
59:17
from from your boys at my first million. A million and a billion. That's the pot.
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