Podcast Summary
From Disneyland to gaming: following passions and embracing the unexpected: Bing Gordon's diverse career includes Disneyland, commercial fishing, gaming, and venture capital. Passion for virtual worlds led him to Electronic Arts (EA), where memorable moments included daughters playing games and predicting gaming's rise to popularity.
Key takeaway from this discussion with Bing Gordon is that passion and curiosity have led him to various industries and experiences throughout his career, from Disneyland and commercial fishing to gaming and venture capital. One pivotal moment was when he became enamored with the concept of virtual worlds and eventually joined Electronic Arts (EA). Looking back, the most memorable events at EA were not major milestones but rather personal moments, such as his daughters playing and providing feedback on the games he worked on. Another significant moment was when he predicted that games would eventually surpass movies and music in popularity, which was initially met with skepticism but ultimately proved to be true. Throughout his career, Bing has demonstrated the importance of following one's passions, making good choices, and embracing the unexpected.
Sticking to a vision despite initial doubts: Success often comes from understanding your audience and staying committed to your vision, even when faced with initial skepticism.
Successful marketing campaigns often require a deep understanding of the audience and a refusal to listen to experts who may doubt the potential of a project. The speaker shared stories of the early success of EA Sports and the John Madden Football game, where initial doubts from retailers and executives were overcome by a commitment to the vision and a focus on the specific audience. The importance of creating products for oneself initially but then for a specific audience later was also emphasized. Additionally, the speakers discussed the surprising growth of the gaming industry, which exceeded initial expectations and became bigger than imagined. Technology, as Regis McKenna famously said, takes off slower than expected but ultimately becomes bigger than imagined. This lesson can be applied to various industries and creative projects.
The Freemium Model in Gaming: Pay to Play More: The freemium model allows users to play games for free while paying for additional features, leading to valuable customer insights and data for companies and a shift in power dynamic from caveat emptor to vendor emptor.
The intersection of gaming and commerce has led to innovative business models like the freemium model, which allows users to play games for free but pay for additional features or benefits. This model has been successful because people only pay when they're happy with the product, leading to valuable customer insights and data for companies. The gaming industry has been at the forefront of utilizing this data to create engaging and addictive experiences for users. Additionally, the freemium model has the potential to shift the power dynamic in commerce from caveat emptor (buyer beware) to vendor emptor (seller beware), as companies must ensure customer satisfaction to generate revenue. This shift towards digital businesses and the vast amounts of usage data they generate is a trend that is likely to continue shaping the future of commerce.
The Challenge of Monetizing Creativity: Creators in various industries face the challenge of producing high-quality content while figuring out a sustainable business model. Innovation and adaptability are key to providing value to audiences and generating revenue.
Creators, whether in the gaming industry, art, literature, or digital platforms like Twitch, have always faced the challenge of producing high-quality content while figuring out a sustainable business model. This discussion highlighted the historical parallels between creators in various industries and their need to monetize their work. A notable example from the tech industry is John Doerr and his involvement in the creation of Amazon Prime. During a bike ride with Doerr, Tony Robbins suggested the idea of a loyalty program for Amazon customers, which eventually led to the development of Amazon Prime. This anecdote underscores the importance of creators and their ability to adapt and innovate in order to provide value to their audience and generate revenue.
The power of a unique and valuable idea: Having a unique and valuable idea can lead to unexpected opportunities and personal growth. Be prepared, confident, and seize opportunities to build relationships and expand your horizons.
Having a unique and valuable idea, presented in a thoughtful and prepared way, can lead to unexpected opportunities and even significant personal growth. The story of Raine Wilson and his encounter with Jeff Bezos illustrates this idea perfectly. Wilson, who had never before presented a document of ideas to a business leader, was surprised when Bezos invited him to lunch after being impressed by his ideas. This encounter ultimately led Wilson to become a member of Amazon's board. This story highlights the importance of being prepared, having confidence in one's ideas, and seizing opportunities when they arise. It also underscores the value of building relationships with industry leaders and being open to new experiences. In the business world, as in life, having a unique and valuable idea can open doors and lead to unexpected opportunities.
Leadership principles at Amazon: Effective leadership and alignment of values are crucial for company success. Amazon's leadership principles, like focusing on enduring ideas and strong communication, help ensure a strong team fit and mission commitment.
Effective leadership and alignment of values are crucial for the success of a company. Amazon's operationalization of their leadership principles sets an example for other organizations. The best learners, like Jeff Bezos, reduce complex ideas to first principles and focus on what endures. Interviewing candidates based on these principles ensures a strong fit and commitment to the company's mission. Effective communication, clarity, and alignment are essential for reducing friction and confusion within the organization. While Bezos' skill set may be replicable and learnable, it requires motivation, a focus on enduring principles, and a strong mental model of learning.
Learning from Data Drives Business Growth: Successful founders and CEOs prioritize personal learning, focusing on inputs like milestones and people to drive growth, even if past records show failure.
Continuous learning is essential for founders and CEOs to scale their businesses. Having access to data is important, but the ability to learn from that data and use it to improve products and conduct experiments is what drives growth. Successful founders and CEOs are often described as learning machines, and investors should prioritize personal learning when assembling a board. Amazon, for instance, has shown that even companies with a history of failure can eventually achieve success. The key is to focus on the inputs, such as milestone deliveries and quality of people, rather than just outputs like revenues. A good example of this is Amazon's Prime Gaming feature, which offers free games to Prime subscribers, recognizing that people are willing to pay for snippets of entertainment in the form of games. Ultimately, the ability to learn and adapt is what sets successful businesses apart.
From Justin TV failure to Twitch's success: Identifying new markets and needs from failures led to Twitch's success in live streaming video game play through community engagement and understanding streamers' desires.
The failure of Justin TV led to the creation of several successful companies, including Twitch, through the identification of new markets and needs. Justin TV's founders, Amit, Mike Siebel, and Emmett Shear, recognized the potential in live streaming video game play and turned it into a business. Emmett focused on making it work for streamers, understanding their desire for money, fame, and love. Twitch's success lies in its community aspect, where streamers and viewers engage in real-time conversations, creating a sense of belonging and a participatory media experience. Additionally, the discussion touched upon the potential of virtual reality (VR), with Todd Moore mentioning that people are more immersed in flat screens than curved ones due to pixel accuracy collisions. Despite the previous flood of investment in VR, the hardware and technology are now at mass market levels, making it an attractive space for investment once again.
VR technology strives for immersion but faces challenges: VR and AR need killer apps to justify high costs and overcome limitations, like Pokemon Go for AR and John Madden Football for VR
Virtual reality (VR) technology aims to provide a more immersive experience by fooling the inner ear and making users feel as if they're truly in a different environment. However, achieving this level of immersion comes with trade-offs, such as sacrificing pixel accuracy. The current state of VR technology, including hardware and software, still faces challenges in delivering a seamless and realistic experience for consumers. Despite these challenges, innovations like location-based VR and augmented reality (AR) have shown promise in enhancing the user experience. However, for VR and AR to reach their full potential, they need killer apps that justify the high costs for consumers. For instance, the success of the Sega Genesis was largely due to games like John Madden Football, which made the investment worthwhile. Similarly, AR games like Pokemon Go, with its 2D mapping of the world, have demonstrated the potential of this technology to make the real world a more engaging and interactive place. Ultimately, the future of VR and AR lies in overcoming the current limitations and delivering experiences that truly transport users to new worlds.
Exploring the Future of Technology: VR, AR, and Innovative Solutions: VR and AR offer immersive experiences, but face challenges like collision accuracy, nausea, performance, and pixel resolution in VR, and power, clarity, and brightness in AR. Moore's Law helps improve technology, and companies like iFlex and Public.com offer innovative solutions. NFTs and digital currencies are expected to transform gaming.
Technology is constantly evolving and finding new ways to enhance our experiences, whether it's through virtual reality (VR) or augmented reality (AR). VR, like the early Xbox vision, offers the possibility of immersive, interactive worlds where we can be the hero. However, challenges like collision accuracy, nausea, performance, and pixel resolution remain obstacles. AR, on the other hand, promises a more connected experience by overlaying digital information onto the physical world. Yet, issues like power, clarity, and brightness need to be addressed. Moore's Law, which doubles logic every 18 months, makes it easier to improve photons than atoms. Companies like iFlex and Public.com offer innovative solutions in their respective industries, with iFlex providing professional assisted stretching and Public.com offering a high yield cash account. Meanwhile, NFTs and digital currencies are expected to make their mark in the gaming world by tapping into the natural urge to collect and adding new dimensions to ownership and value.
The Value of NFTs goes beyond collecting and speculation: NFTs offer creators perpetual royalties, long-term venture capital investment focus, and emotional support for founders
NFTs (Non-Fungible Tokens) represent a unique convergence of collecting and speculation, tapping into the innate human desire to amass and preserve valuable items. This urge, reminiscent of childhood days filled with collecting Pokemon cards or baseball cards, is amplified by the potential for financial gain. However, the true value of NFTs lies in their ability to grant creators a perpetual royalty, ensuring they benefit each time their work is resold. Transitioning to investing, a key insight from the discussion is that venture capital, particularly at firms like Kleiner Perkins, requires a long-term commitment and a focus on substantial returns. This shift from a quick 100% return to a 100x return over several years necessitates a narrow investment focus and a deep understanding of the industry. Additionally, founders value input from investors with relevant experience, making expertise in a specific category crucial for adding value. Lastly, a common challenge faced by founders, as mentioned by Jason Brett, is navigating the emotional and personal aspects of building a company. This includes dealing with setbacks, managing stress, and maintaining a work-life balance. By providing guidance and support in these areas, investors and executive coaches can help founders overcome these hurdles and achieve long-term success.
Transitioning from hands-on roles to leading a team and defining 'forever OKRs': Define 'forever OKRs' to distinguish top performers, focus on leadership skills, and prioritize personal satisfaction and long-term health for success.
Growing a company from a small team to a large organization presents unique challenges for founders, particularly in the areas of leadership and goal setting. As a company grows, founders must transition from hands-on roles to working through other people, and learning essential people skills becomes increasingly important. OKRs (Objectives and Key Results) can be a helpful tool for setting and achieving goals, but it's essential to define "forever OKRs" - the factors that distinguish top performers from good ones in your industry. Additionally, personal satisfaction and success in life are linked to doing something you enjoy, having long-term friends, and avoiding substance abuse and chronic illnesses. For founders, having clear goals and understanding what it takes to achieve them is crucial for success, and setting "forever OKRs" can help guide the way.
Focus on helping founders grow: Successful investors act as consultants, helping founders learn and grow, creating a mutually beneficial relationship for long-term success.
Investors should focus on helping and future-proofing founders by acting as consultants rather than authority figures. According to Bing Gordon, founders are irreplaceable, and an investor's role is to help them become learning machines. This approach was not commonly discussed in public discourse, but Gordon emphasized that successful investors like Reid Hoffman, Ben Horowitz, and Marc Benioff have always been there to help their CEOs grow. By shifting the mindset from valuation and investment to helping the CEOs succeed, investors can create a mutually beneficial relationship and potentially lead the company to a "hall of fame" level of success.
Learn about investing and financial independence with The Investors Podcast: The Investors Podcast provides resources and information to help listeners learn about investing and achieve financial independence through courses, tools, and ongoing education.
Investing in the stock market can be a valuable way to build wealth over time, but it requires education, patience, and a long-term perspective. The Investors Podcast offers resources and information to help listeners learn about investing and achieve financial independence. You can access their courses, tools, and more by visiting investorspodcast.com. Remember, it's important to consult with a professional before making any investment decisions. The podcast is for entertainment purposes only and is copyrighted by The Investors Podcast Network. Listeners are encouraged to subscribe to Millennial Investing for ongoing education and to check out the show notes and transcripts on the website.
