Podcast Summary
Focusing on underestimated areas can lead to significant rewards: Exploring less crowded areas, even with a small audience, can lead to profitable businesses and disproportionate rewards.
Exploring less crowded areas, whether it's in a pond or in business, can lead to significant rewards. I learned this from an episode with Ben and my friend Noah Kagan, the founder of AppSumo. AppSumo started as a simple email list where Noah negotiated deals with software companies and offered them to his subscribers. Over the years, it grew into a multi-million dollar business, with Noah owning most of the company and having around 150 employees. Despite having only 300,000 people on his email list, some partners made over $1,000,000 in a single day. This shows that even a small audience can be profitable if they are highly engaged and offered valuable deals. The business model, which is similar to Groupon or Woot, has been successful for over a decade, and they pay out around 30% of their revenue to their partners. This story is a reminder that going against the conventional wisdom and focusing on underestimated areas can lead to disproportionate rewards.
The Power of Email Marketing and Industry Trends: Email marketing remains a crucial tool for businesses, with success stories like AppSumo and Product Hunt. HubSpot's report offers insights on marketing trends, while Mr. Beast's innovative approach underscores the importance of staying updated and creative.
Email marketing can be a simple yet highly valuable tool for businesses, as demonstrated by the success of companies like AppSumo and Product Hunt, which started as email lists and grew into multibillion-dollar businesses. HubSpot's "2,024 State of Marketing Report" provides valuable insights into current marketing trends to help businesses optimize their strategies and stay competitive in the ever-changing tech and Internet marketing landscape. Additionally, Mr. Beast's innovative approach to marketing, as seen in his recreation of the popular Netflix show "Squid Games," highlights the importance of staying up-to-date with trends and finding creative ways to engage audiences. Overall, the discussion emphasizes the significance of email marketing, staying informed about industry trends, and innovative thinking in business success.
MrBeast's Squid Games Event: A Content Creation Masterclass: Creative content and strategic partnerships can lead to massive reach and significant returns. MrBeast's Squid Games event, inspired by Netflix's show, gained over 130 million views and $2.6 million in earnings in the first week.
Creating engaging and unique content can lead to massive reach and significant returns. In this discussion, we learned about an event organized by YouTuber MrBeast, inspired by the popular Netflix show "Squid Games." He invited 456 players to compete in games with a prize pool of over $1.5 billion, including a grand prize of $456,000 for the winner. The event gained over 130 million views in just seven days, making it potentially more popular than the actual Netflix show. MrBeast paid for the event with sponsorship from Brawl Stars, a mobile game, and earned additional revenue through YouTube ads. This investment resulted in an estimated $2.6 million in earnings in the first week alone. This event demonstrates the power of creative content and strategic partnerships to attract a large audience and generate substantial revenue.
Aiming for epic projects leads to disproportionate rewards: Aiming high can lead to significant rewards such as attracting talent, sponsors, and viewership despite equal effort required.
Aiming for epic projects, despite the perceived challenges, can lead to disproportionate rewards. Mr. Beast's 10,000,000 new subscribers in a week is an impressive example of this concept. This massive growth not only solidifies his position as a content leader but also attracts talent, sponsors, and viewership. The effort required to achieve such success is equal to that of smaller goals, but the excitement and inspiration generated by epic projects can lead to significant rewards. As more creators attempt to replicate Mr. Beast's success, it's essential to remember that the journey to greatness involves putting in the reps and staying one step ahead of the curve. Mr. Beast's story is a reminder that aiming high, even when it seems daunting, can lead to extraordinary results.
Investing back into content and businesses: Successful YouTubers reinvest earnings, maintain thin margins, and stay committed to growth for substantial wealth and influence.
Successful YouTubers, like MrBeast and Meet Kevin, invest a significant amount of their earnings back into their content and businesses, maintaining razor-thin margins. MrBeast, for instance, reportedly spends around $2-3 million per month on content creation. Their dedication to perfection and constant growth is exhausting but effective, leading to substantial wealth and large followings. Meet Kevin, for example, has amassed a $50 million net worth by age 29 through real estate investing and documenting his journey on YouTube. Despite having a smaller following than expected for a successful YouTuber, he came close to winning a California gubernatorial recall election. Their stories demonstrate the importance of reinvesting earnings and staying committed to growth in order to build substantial wealth and influence.
Exploring the Viral Content Treadmill: Creating viral YouTube content can lead to success, but it may require a lot of effort and can be exhausting. Some creators choose to focus on content that aligns with their interests and values instead.
Creating viral content on YouTube can lead to significant attention and potential success, but it often requires a lot of effort and can be exhausting. Some creators may use this strategy to build their brand and gain momentum, but others may prefer to focus on content that aligns more closely with their interests and values, even if it may not be as viral or lucrative. The speaker in this conversation expresses gratitude for the creativity and innovation of YouTube creators like Mister Beast and Graham Stephan, but acknowledges that he doesn't want to get caught up in the "treadmill" of creating viral content himself. Instead, he finds fulfillment in creating content for his podcast, which allows him to have a more relaxed and ongoing creative process.
The Cost of Prioritizing Content Creation: Focusing solely on content creation can lead to lost relationships and personal sacrifices, but creating content for enjoyment and growth can bring fulfillment and potential financial success.
Creating content with the sole focus on views or engagement can come at a personal cost. The speaker shares his experience of prioritizing content creation over relationships during his daily vlogging years, leading to lost friendships and a nearly divorced marriage. On the other hand, creating content for enjoyment and personal growth, like fitness or real estate projects, can bring fulfillment and potential financial success. The speaker's real estate project example illustrates this, as he bought a rundown property next to his house, intending to build a modern home, documenting the process for potential profit. By researching the market and finding properties that matched his desired price per square foot, he secured a great deal and minimized risk. This experience underscores the importance of balancing content creation with personal relationships and well-being.
Building houses next door: Cost savings, convenience, and profits: Building a house next to one you've sold can lead to significant cost savings, convenience, and potential for high profits. Smart investments and innovative solutions can generate substantial returns.
Building a house next to an existing one you've sold can lead to significant cost savings, convenience, and potential for high profits. The speaker shared his personal experience of replicating a successful house design next door, which resulted in a 50% savings in time and headache. Additionally, the proximity of the houses offered benefits such as easy management, shared resources, and increased frequency of interactions with family or friends. The speaker aims to make over $1,000,000 in profit from this real estate project, but it required a substantial investment upfront. Another intriguing example he mentioned was a Google Chrome extension company that made $25,000,000 in revenue with just two people. These stories highlight the potential for smart investments and innovative solutions to generate substantial returns.
Former Google Engineer's Success Story with Adblock Extension: A former Google engineer, Michael Gunglak, created Adblock extension in 2009, amassing around 20 million users and tens of millions in annual profit as a sole employee. Despite concerns over security risks, his success story highlights the potential profits in the tech industry.
Michael Gunglak, a former Google engineer, created the popular Chrome extension, Adblock, in 2009, which grew to have around 20 million users. He was the sole employee of the company and reportedly made tens of millions of dollars in profit each year. Adblock's competitor, Adblock Plus, is a larger company based in Europe with around 20-30 employees and significant revenue and profit. Gunglak's personal website, sorryrobot.com, reveals his background in engineering and his creation of Adblock. The extension's success came from Gunglak's dislike of ads and his ability to capitalize on that desire among internet users. While the exact sale price of Adblock is unknown, it's estimated that it could have fetched hundreds of millions of dollars. However, the sale in 2015 also raised concerns about the security risks associated with Chrome extensions, as they have access to all data on users' browsing activity. Despite his success and the continued popularity of Adblock, Gunglak remains a private figure, making him an intriguing example of entrepreneurship and the potential profits to be made in the tech industry.
Building profitable businesses on niche platforms through extensions, plugins, and apps: Niche platforms offer opportunities to create or acquire extensions, plugins, or apps, generating substantial revenue with minimal upfront investment, but potential risks include platform changes and dependence on a single platform.
Niche platforms, such as Google Chrome, Shopify, Salesforce, Zoho, and even gaming platforms, offer opportunities to build profitable businesses through the creation and acquisition of extensions, plugins, and apps. These businesses can generate significant revenue, sometimes reaching into the millions, with relatively low upfront investment. However, there are risks involved, including potential platform changes that could negatively impact sales, and the fact that these businesses are often dependent on a single platform. It's essential to carefully consider these risks before entering this business model. Chrome extensions can be dangerous if they fall into the wrong hands, but platforms like Google Chrome, Shopify, Salesforce, Zoho, and gaming platforms provide opportunities to build lucrative businesses by creating or acquiring extensions, plugins, or apps. These businesses can generate substantial revenue with minimal upfront investment, but they come with risks, such as potential platform changes that could negatively impact sales and dependence on a single platform. It's crucial to weigh these risks before pursuing this business model.
Profitable opportunities in seemingly insignificant online businesses: Identify and invest in simple online businesses with high traffic for potential profits, even if revenue and profits may not initially seem substantial.
There are profitable opportunities in simple, seemingly insignificant online businesses. The example given was Emojipedia, a website that allows users to look up and copy emojis. With up to 5 million visitors a month, the site could potentially make between $50,000 to $150,000 a month in profit. Such businesses, often overlooked, can be valuable investments if owned. Zedge, a public company with a market cap of $130 million, is an example of a company that has capitalized on these opportunities by buying up various apps and websites with high traffic. Although their revenue and profits may not appear substantial on paper, these businesses could be generating significant profits. The key is to identify these opportunities and consider the potential payback period before making an investment.
Live, impartial advice for high-ticket item purchases: Providing live, impartial advice for consumers looking to buy high-ticket items like saunas could improve the buying experience with trust and efficiency
There's a potential business opportunity in providing live, impartial advice for consumers looking to purchase certain high-ticket items, such as saunas. The speaker had a disappointing experience with an infrared sauna and wished there was a live, third-party source to guide him through the buying process. Mark Laurrie, the founder of Jet.com, also identified this concept as a potential business idea, which he called concierge shopping. The current process for purchasing a sauna involves calling a sales representative, but the convenience and trust-building potential of a live, impartial advisor could make the buying experience more efficient and effective for consumers.
Asking the right questions can lead to valuable insights: Curiosity and asking the right questions can reveal valuable business information, leading to informed decisions and a competitive edge.
Being curious and asking the right questions can lead to valuable insights. In the discussed scenario, the speaker was able to gather information about a sales network by asking seemingly innocuous questions, revealing details about sales volume, number of reps, and commission structure. This intel helped the speaker understand the business model and even inspired him to implement similar strategies in his own e-commerce business. Asking questions, even if they seem bold or intrusive, can provide valuable information that can be used to make informed decisions or gain a competitive edge. Additionally, being open-minded and curious can lead to unexpected discoveries and learning opportunities.
Learning from Different Sales Strategies: Effective communication and understanding various sales strategies can lead to significant business growth. Be open-minded and adaptable to different approaches, and remember the importance of transparency in business.
Effective communication and understanding different sales strategies can lead to significant business growth. During a recent interview, the interviewee shared that while they focused on e-commerce sales through Shopify, the interviewer's business relied heavily on phone sales, which accounted for 30% of their closures. This data point challenged the interviewee's assumptions and opened up a new learning opportunity. Another topic discussed was the importance of transparency in business, specifically in regards to revenue and profitability. The interviewee mentioned how some entrepreneurs might be hesitant to share such information, but it's crucial for building trust and understanding within the business community. Additionally, the conversation touched upon the idea of using creative methods to showcase revenue and goals, such as Peter Levels' unique use of a meter on his Twitter profile to represent his annual earnings. Overall, the discussion highlighted the importance of being open-minded and adaptable to different business strategies and approaches.
Creating Profitable Businesses from Unique Ideas: Identify trends, create simple websites, offer valuable services, and leverage data to optimize for success.
Peter Levels, the creator of Nomad List and various other websites, is an artist who turns his unique ideas into profitable businesses. He identifies trends and creates simple, semi-viral websites to cater to them. For instance, his latest project, rebase, focuses on helping people relocate to Portugal and take advantage of its tax benefits. By offering onboarding calls, setting up Portuguese residency, and handling taxes, Levels has created a successful business model. His creativity, prolific nature, and ability to execute ideas effectively are things that many aspire to. The discussion also highlighted Levels' use of data to understand his business metrics and optimize his websites. Overall, the conversation underscores the importance of creativity, adaptability, and data-driven decision-making in entrepreneurship.
Creating unique websites like a music producer: A talented individual crafts personalized websites with innovative features, setting himself apart from larger companies and resonating with users.
The person being discussed is a creative and talented individual who produces high-quality websites, much like a music producer creates hit songs. He adds unique and personal touches to his work, making each website a reflection of his personality. Instead of seeking mass appeal or a one-size-fits-all approach, he focuses on creating "dope beats" in the form of innovative and functional websites. His dedication to providing value and unique features sets him apart from larger, more bureaucratic companies. These personal touches and attention to detail make his websites stand out and resonate with users.
