My First Million - 6 Retro Business Ideas That Could Be As Big As LEGO ($11.8B)

Episode Date: January 31, 2024

Episode 545: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) brainstorm $100M retro business ideas: LEGO for adults, Tamagotchis for millennials & MORE. No more... small boy spreadsheets, build your business on the free HubSpot CRM: https://mfmpod.link/hrd — Show Notes: (0:00) Intro (2:30) Sam auditions a 7,500 sf house (5:00) LEGO for adults (13:00) Kidult market trends (20:00) Tamigachi babies for millennials (21:30) K'nex 2.0 (23:30) Easier Rubik’s cube (25:30) Candle pouring kits (29:00) The rabid community behind Rebrickable (35:30) The fascinating legacy of BrickLink (46:00) Grow like Fanfiction (51:00) Build the reverse funnel (58:00) Palworld's $200M week (1:03:00) Midwit strikes again — Links: • Calm - http://calm.com/ • Rebrickable - http://tinyurl.com/4tt7974b • BrickLink - http://tinyurl.com/yjzhja28 • Kim Jung-ju - https://en.wikipedia.org/wiki/Kim_Jung-ju • Wattpad - https://www.wattpad.com/ • Palworld on Steam - http://tinyurl.com/2tus5wfz — Check Out Sam's Stuff: • Hampton - https://www.joinhampton.com/ • Ideation Bootcamp - https://www.ideationbootcamp.co/ • Copy That - https://copythat.com • Hampton Wealth Survey - https://joinhampton.com/wealth Check Out Shaan's Stuff: • Try Shepherd Out - https://www.supportshepherd.com/ • Shaan's Personal Assistant System - http://shaanpuri.com/remoteassistant • Power Writing Course - https://maven.com/generalist/writing • Small Boy Newsletter - https://smallboy.co/ • Daily Newsletter - https://www.shaanpuri.com/ Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more. — Other episodes you might enjoy: • #224 Rob Dyrdek - How Tracking Every Second of His Life Took Rob Drydek from 0 to $405M in Exits • #209 Gary Vaynerchuk - Why NFTS Are the Future • #178 Balaji Srinivasan - Balaji on How to Fix the Media, Cloud Cities & Crypto • #169 - How One Man Started 5, Billion Dollar Companies, Dan Gilbert's Empire, & Talking With Warren Buffett • ​​​​#218 - Why You Should Take a Think Week Like Bill Gates • Dave Portnoy vs The World, Extreme Body Monitoring, The Future of Apparel Retail, "How Much is Anthony Pompliano Worth?", and More • How Mr Beast Got 100M Views in Less Than 4 Days, The $25M Chrome Extension, and More

Transcript
Discussion (0)
Starting point is 00:00:00 All right, this is a fun episode. Sam started doing Legos, and that sent us down this rabbit hole where he discovered two businesses that I'd never heard of. I guarantee you never heard of it. They're awesome businesses in the Lego niche of all things. And then we brainstormed other things that people could do around these passionate niche audiences that most people overlook. Love it. This is an MFM classic, MFM special. If you like this podcast, you're going to love this one. And I also had like an epiphany about 45 minutes in that kind of changed the way I think about this podcast. So that's what I got out of this episode. Sam, what did you get? So while researching this stuff, there is a ton of twist and turns to the story, the background story of how these companies started. I want you guys to listen to them. It doesn't happen. It's the second story involving Lego. You'll know exactly what I'm talking about when we get there. It's about two thirds of the way into the episode. I got emotional researching this. And I actually want you guys to listen to the topics and the companies that we brought up. I want you to go to their websites and see what I'm talking about. You'll know exactly what I'm talking about when you get to the part of the episode. And let us know in the YouTube comments if this actually got to you like it got to me. I dug it.
Starting point is 00:00:58 It was tons of weird parts of the stories that I did not expect to happen. Anyway, check it out. Let us know in the YouTube comments if you actually dug this because I think you will and which parts of the stories
Starting point is 00:01:08 you like best. I feel like I can rule the world I know I could be what I want to. I put my all in it like no days off. What is up? Sean here with Sam. Your boys who are stuck
Starting point is 00:01:21 at 399,000 YouTube subscribers. They said we'd never get to 400. In fact, they're still saying we'd never get to 400. Sam, do you see this tweet that went viral that goes, all my haters said I wouldn't make it. I didn't make it. They were right. Honestly, good call by the haters.
Starting point is 00:01:41 That's like a legendary tweet. I love that stuff. Yeah, we're at 399. I read every YouTube comment. Do you? Read and reply, bro. Not to everyone, but I reply like, it's like a, I'm in line
Starting point is 00:01:56 at a coffee shop, I'll just go through and go through a whole episode and try to reply as many as I can. Yeah, so if you're listening and you're not on YouTube, do your boys a favor and just click subscribe. It means a lot to us. It costs you nothing. And we've got a good episode today. Last time we talked, we both had the same topic written down. We did it again. It happened again this time. Before we get into the episode, I got to tell you something. How big is your house, square footage? Uh, 5,600. I'm in a house. right now, visiting family. So I rented an Airbnb for two weeks. My home, my normal home in Austin is just a little over 2,000 square feet. It's not big. It's nice, but it's not big.
Starting point is 00:02:38 I'm currently renting a 7,500 square foot house. I am losing so much stuff. This is such a big house. I think that even 55 would be too big for me. Do you like having a big house like that? Yeah, it's great. What's not to love? I'll tell you. One, the utility bill here, If I had to guess, it's like $2,000 a month. What's your utility bill? Well, you're in California, so you don't really use too much. I don't even check it. I don't look.
Starting point is 00:03:04 Everything's on autopay and I don't even want to look. It's probably like $1,500, $1,500, I guess. Wow. Okay, so that's expensive, but whatever. But the other thing, things break all the time. Like, there's seven bathrooms here. And, like, one of the, the guy has like a jacuzzi thing in one of his bathrooms. It's not working.
Starting point is 00:03:22 I don't even going. Are you going and using all seven bathrooms? You don't use half the shit. the shit, that's the trick. That's how it breaks. That's how it breaks. You just don't use it. Anyway, I wanted to buy a big home eventually, and I'm happy I'm testing this out.
Starting point is 00:03:36 It's such a big house. I understand the downsides to it. I'm just like fixing things. It's a pain in the butt. Well, here's my, here's my rule. Number of humans plus two. That's how many beds. That's how many bedrooms I want in my house.
Starting point is 00:03:50 Number of humans plus two bedrooms. And one of those bedrooms turns into Man Cave. like where I have this studio here right now. This is one of the bedrooms are just converted and the other ones in guest room. Now, my kids are small right now, so they're like all sleeping in the same bed
Starting point is 00:04:03 and stuff like that. It doesn't really help. But as they get older, that rule is going to come into effect. Yeah, and I think maybe my needs will change, but I just wanted to test out a big house. I'm shocked by how much I dislike it so far.
Starting point is 00:04:16 I like how much you test lifestyle things. Most people don't do this at all, and you do it a lot, which is where do I want to live? How do I want to live? Do I want to live in a city? You don't live in the suburbs. You don't live in a big house, small house, near water.
Starting point is 00:04:28 You know, what matters to me? Because I think a lot of people have these predefined ideas that are completely based on nothing, no evidence. And I really take a lot of inspiration from the way you test out lifestyles. You prototype, like, how you want to live. And more people should do that, for sure. I do it all the time. And the reason I do it is because if you think about it, so renting a really fancy Airbnb for a week, it could be expensive. Let's just say it's $1,000 a night or more.
Starting point is 00:04:56 So let's just say, let's round up and say it's 10 grand for a week. That's expensive. But you know what's more expensive? Buying a home that you only see for 24 hours or through a one-hour tour and being like, cool, this is my place now for the next 10 or 20 years. That's way more expensive. Andrew, honestly, you start to lose a little trust in yourself. It's like, oh, I thought this would make me happy.
Starting point is 00:05:15 It turns out I didn't even like this, right? I'm not listening to that guy anymore. And by the way, you don't have to be rich to do this lifestyle testing. Like I was doing this when I had, you know, no money because, well, I didn't have, it's all relative to where you're at, right? So where do I want to live? I would move to, like, I would do a road trip, but we would drive to another place, live on a friend's couch. But we would live there for two weeks and just kind of see, okay, what's it like in this place? Like where I tried in Chicago, then I tried in Colorado.
Starting point is 00:05:43 And that, you know, I just tested out different places in order to see where do I want to be. And I think that's a very smart way to go about things. You want to talk about Legos, my man? Let's talk about Legos. Can I introduce this category, which is the following? You text me and you go, dude, I'm playing a ton of Legos. What? Yeah, every night I'm playing Legos.
Starting point is 00:06:02 Do you do this? And I was like, no, I don't do this. But I know a bunch of other people that do. And it caught my attention because I'm not sure if you know this, but this is kind of becoming this, like, trendy thing. So there's a bunch of like NBA players that kind of came out of the closet saying, yeah, this is what I do at night. Yeah, I'm not like, you know, represent.
Starting point is 00:06:19 Yeah, the reputation for NBA players. We're all out at the strip club after games and whatever. And there's like this guy, Miles Turner. He's like, I'm building like replica Star Wars, like, you know, Death Stars with my Legos at night, four or five hours a night. And I got kind of interested. So I looked at it. By the way, in college, I lived with the basketball team in college.
Starting point is 00:06:37 They were the biggest nerds of all the athletes. Like they didn't go out of... You're just giving them wedgies, six, seven wedgies? Well, like a Friday night was playing video games. Like, it was like, they were. the least party animal of all the athletes. That's probably fair. So do you know what this category is called?
Starting point is 00:06:57 Is it the acronym that starts in the A? No, no, no. They call people like you kiddults. The toy industry, they call you guys cadults. And cadults or eldertainment is the name of this group of people that are adults buying kids' toys. And that sounds like a pretty fringe thing, but it actually makes up 25% of all toy sales. So billions and billions of dollars. One out of every four people that go buy,
Starting point is 00:07:25 let's say a set of Legos, is going to be an older teenager or adult. But you know what they call for Legos, specifically for Legals, it's called, I don't, it's one of those words that I've seen, but I don't know if you're supposed to, how you're supposed to say it, but A-F-O-L, adult fan of Legos. That's, you're self-identified as an AFLO. Actual fucking old Lego maker. Yeah.
Starting point is 00:07:49 So this category, like, it makes up all the growth in the toy industry. So toy industry, if you look at how fast it's growing, 60% of all the growth is just coming from this one segment. So it's like this kind of this segment that's growing really fast. At first I didn't understand it, but then they did some surveys, right? Because all the toy companies were like, what's going on here? This is not what we planned for. So several years ago, they commissioned a bunch of studies.
Starting point is 00:08:16 And they went and asked, why are you doing this? I'm curious if you're going to say the same thing because 90% of the adults all said the same three reasons that they do it. What are your reason, Sam? Bonding with my family. In my family, it's my wife. No screens. And we can just sit at the table and do it together while we're just talking. And maybe there will be TV on in the background, but it's basically bonding without screens sitting at the table.
Starting point is 00:08:40 And it reminds me in my childhood. That's exactly right. The three word, nostalgia, which you just said. anti-lonliness, so bonding with whoever you're doing it with, and detoxing from phone as well as kind of like an anti-anxiety angle to it. Like is a relaxing, a relaxing activity. Because I'm following directions. I'm just following the directions.
Starting point is 00:09:02 I'm not making any decisions. I'm doing what I'm told. That's interesting. Oh, okay. I thought it was kind of the hands part of it, but you're saying as an adult, I'm constantly having to make decisions and think, and it's so nice to not make decisions and just be told,
Starting point is 00:09:14 put this blue thing over here. Yeah, it's like a, it's like a PG-rated dominatrix. You know, like, instead of spitting in my mouth, it's telling me to, like, connect these two pieces. Yeah, some people, you're into that stuff, all right? To each his own. And so this is fascinating to me. So I want you to tell me I have some more ideas around, like,
Starting point is 00:09:38 more examples around this trend and some ideas of what I think people could do. But before we do that, I just want to know, what are you actually doing? So you're buying Lego kits, like which ones? And what do you do? So Lego is this huge company. So I think they do about $10 billion a year in sales. It was started in like the 20s by just an engineer. And now they have got movies, characters.
Starting point is 00:10:03 It's like a Marvel almost. It's like a whole franchise. I particularly like the line called Technics. And Technics is cool because it's basically you'll build cars or tractors or a bridge and there's gears within the machine. And so I'm learning how like, you know, like in the snow when old cars, when you spin your tires, only one tire would spin some time. That's because of a rear differential.
Starting point is 00:10:29 That's like a mechanical piece. And so I'm like building that and I'm understanding how transmission works. I'm building, I built a land rover that has six speed transmission. And I see how gears work. And so it's really fascinating to me to see these moving parts. So I build techniques. I've probably spent $1,500 on them so far. Each one is between $150 and $350 and $3.50, and I buy only the Technics one.
Starting point is 00:10:51 That's my thing. And you're, you finish them in one sitting or these are like multi-week? No, no, I want a week. So, but it'll take, I'll sit for two hours. And if my wife's not with me, I'll listen to a podcast or something and I'll just sit there for two hours assembling it from like nine to 11. Just you and the voice of Scott Galloway? Yeah, I'm just like, I'm listening to like some war. story. So it's like, just like
Starting point is 00:11:16 me and Benito Mussolidi as I build this land rover. Like this like six inch tractor. Yeah. I love by the way how you're like, yeah, I built a six, you know, a six speed transmission.
Starting point is 00:11:30 It's like, no, no, no, you didn't. You really didn't. I feel like you got a lot of confidence from this. That like, I could. Came down to it. I now could. And I don't think you're good, man. So, all right, so you were doing this. Is this a fad or you think this is like a lifelong hobby for you?
Starting point is 00:11:46 What are you thinking? Lifelong. I could see it being lifelong. Oh, wow. Yeah. And what do you do with them when you're done? You finish the six speed tractor or whatever. What are you going to do with this?
Starting point is 00:11:56 So one of the companies that I'm going to bring up, but basically you can tell this company that I'll break down and explain what sets you have and you destroy them and you rebuild them using different plans. And so you can make alternative items out of them. And so that's what I intend to do. Ah, okay. All right. They're not going to sit on a shelf.
Starting point is 00:12:13 I'm not going to be like the 40 old virgin and have like dolls and packages still unused. No, it really is a enjoy the journey type of thing. So once I'm done with it, I'm like, I don't care about it. Okay, good. So I wanted to bring up a couple other examples because I saw this and I was like, oh, that's weird. That's interesting about Legos. And I was like, no, there's something to this like kidult behavior, right?
Starting point is 00:12:39 where adults buying and doing kid things that is, you know, anti-phone, anti-loanliness, and nostalgic. And I'm going to give you some examples of trends that are like this. So the first is Calm. We're both friends with the founders of Calm, Alex and Michael. And I don't know if you remember this, but back in the day, Calm was really struggling. Today, Calm is like kind of very popular. It's a multi-billion dollar company.
Starting point is 00:13:05 But back when we were living in San Francisco and hang out with Alex, Com was like small. It was a slow grower. It was not sexy. Nobody wanted to invest in. Well, it was kind of a joke. Like a meditation app. Are you kidding me?
Starting point is 00:13:17 And Alex is very jokey. And the other things he built like million dollar homepage were all jokes. So it's kind of like, oh, cool. And the other guy built like a stuffed animal business before that. Yeah. So they were definitely like non-serious, serious entrepreneurs. They, but I remember one time talking to Michael. So Michael came to visit from London.
Starting point is 00:13:36 And he's like, I was like, so what do you do with Com? because you're not even here full time. Alex is sitting in his apartment grinding away at this thing that's not really going too fast, growing too fast. What are you doing? And he's like, oh, I work on new products. And I'm like, dude, this is not like, you know, he looks at Richard Branson. I was like, this is not Virgin Atlantic. What new products?
Starting point is 00:13:54 He's like, no, no, no, I got a great one. He goes, I want to do bedtime stories for adults. And I was like, what? He's like, no, no, I was like, that's, okay, whatever, marketing stunt, I guess. He's like, no, no, I think this is going to be a thing. he goes, people are going to, like, he's like, a lot of adults, they listen to things before they sleep to help them relax and help them actually like fall asleep. But they're not done very well. Do you?
Starting point is 00:14:20 Yeah, I do sometimes. I have like, I have like a version of white noise that I sometimes listen to or I'll just listen to a podcast and fall asleep, which is not the same thing. But there's like a relaxing, people who want a relaxation thing. In fact, I think one of the top podcasts in the world is just like 18 hours of sleep sounds. And it's like, I'll put me all of us. I listen to a family guy when I go to bed. And I just hear like, Peter, like I just hear that. Oh, I'm going to sleep.
Starting point is 00:14:44 Yeah. I'm a family guy. You're just checking to sleep. Exactly. And so he's like, I'm going to do the thing. They ended up being sleep stories. And sleep stories were one of the things that really let calm take off. It like exploded after sleep stories.
Starting point is 00:14:57 In fact, I would say that calm is, it's less about meditation. It is more about the state of being calm. And really the number one product is the sleep stories. And they got Matthew McConaughey to narrate. this like bedtime story and he was hosting I don't know if you remember this in San Francisco to prototype this he was hosting parties
Starting point is 00:15:13 in San Francisco where you would go to this woman's house and you would lay down on her carpet and you would have like a pillow and they would like set the mood and then she would just talk and put you to sleep and then everybody would go to sleep and it was the most San Francisco thing ever and that was like a party
Starting point is 00:15:29 it was like a networking event it was like it was amazing but you think calm is going to have toy Or you're saying the toy is the bedtimes. This is part of the same thing. Like adults using kids product basically. So bedtime stories for adults, that's another version of adults using Legos. My family member, I have family members.
Starting point is 00:15:48 I won't even say who they are. They might be embarrassed who go to sleep to calm bedtime stories. What's embarrassing about that? It's awesome. I don't know. I don't know. You never know. I'm not going to out someone.
Starting point is 00:15:59 So there's also like moon pals and squish mellows. Have you seen these? Yeah. I know moon pals. They're like basically giant stuffed animals, but they're geared more towards adults than they are for kids. And you see like, you know,
Starting point is 00:16:11 24 year old girls in the Bronx who like have like a, you know, like a moon pal that they carry around. Or like safety blanket. Funko pop. Is that what it's called? What's the funco? Funko is a publicly traded company.
Starting point is 00:16:23 You know that? No. They're like a $400 million dollar market cap company. During the, during COVID when everybody was stuck at home and people started just spending money collecting or buy crypto or do whatever. Funko was like over a billion dollars because they were selling so many of these
Starting point is 00:16:38 figurine dolls. That's all it is. Yeah, it's just like a little toy figure, action figure, no action, I guess, just toy figurine that has an oversized head. And we talk that's funny. We had talked about mini brands as well, like the company
Starting point is 00:16:57 mini brands that makes miniature I don't even like Coke cans. Those are insane too. Another one. Have you ever been to Build a Bear? Dude, they kill it. Yeah, I've taken a nephew there. So, Buildabar is like this thing in the mall where you go build a teddy bear.
Starting point is 00:17:14 It's usually like, you know, it's four kids. You know that 40% of their revenue now comes from adults? That's insane. That's insane. And they call it Buildabar after dark. They basically like open up at late hours and let adults come in and basically like, you know, do it as a date night activity and stuff like that. It's crazy.
Starting point is 00:17:31 There's more. Same with American Doll. You know, I don't know. know if you had a sister, so you would know American Dow. But I bet Ari knows American Dowell or had an American doll. American Dolls still crush it. You know what American doll is? No, is that not Barbie? That's something else? It's different. It's a doll that's maybe three foot tall. Back then, they would cost $150. So it was a big deal. And it was sort of like GI Joe, but for girls. And there was like an American doll student. And so it looked like
Starting point is 00:18:00 a little girl who was going to Harvard or American Doll astronaut or something like that. So if you look up American doll, you'll see it's like, it was like fiend, but they were supposed to be more high end than a Barbie and more collectible, I think. American doll OnlyFans creator. Oh, they have like new new genres. That's great. So they, um, so, uh, there's, there's just like, like even Barbie by the way. Do you know how the Barbie movie came about?
Starting point is 00:18:28 Because like the Barbie movie is not, not geared towards kids, right? Like if you've seen it, it's not a, it's not a kids movie, really. it's an adult. It's like to hear towards adults. And this is the reason why. They actually, Barbie, the company actually created an internal movie production company to create this movie geared towards adults to help sell more dolls into this kidult, like, segment. And so there's a marketing stunt for that, which is kind of crazy when you think about it.
Starting point is 00:18:56 I didn't realize that about the Barbie movie. But like there's also tabletop gaming. So you know those guys from Churnin, they've made it like big bets on tabletop gaming, is basically board games that adults play. They have like exploding kittens and they have some other ones, but that's another genre. Even McDonald's came out with an adult happy meal. I don't know if you saw this last year.
Starting point is 00:19:15 They made a bigger box with full-sized fries and an adult toy. And they did this last year and it was like this viral marketing stunt that went crazy because everyone was like, oh, dude, I want to go get one. And it went viral on TikTok and stuff like that. Brands are really capitalizing on this. So I have a few ideas. I want to pitch it, pitch you. I want you to tell me,
Starting point is 00:19:35 You can just give me a genius or idiot on these. This is sort of like a mini drunk ideas episode for you. All right. First one. You've seen the stats how millennials are just like not getting married and not having babies. Like it's like a lower rate than ever before. Yeah. Tomogatchez for babies.
Starting point is 00:19:56 So basically you give that 28 year old who's single and whatever, you give a tomogachi that's a baby that they got to keep. they got to raise and they got to take care of. Like, Tomogacchi's, I think we're pets. Screw it. We're just doing an actual human baby. You got to take care of this thing. And it literally is the same level of, like, same hourly needs as a baby. And let's see what you got.
Starting point is 00:20:21 So Tomogachi for babies, that's my first one. So the problem with these ideas is if you would have told me about the things that are successful now, that they, like, this is good to work. I would have said those are all horrible ideas. So this is like a really challenge. challenging categories. That's why I prepped you by telling you all the ones that worked before I told you my bad ideas just to kind of like frame you, like prime you for like, hey, I don't know,
Starting point is 00:20:42 man, anything's possible. So do I think Tom, yes. I think I think there'd be legs for Tamagachi. What happened to the company? Dude, I have no idea. What's Tamagachi? It's a Japanese business. Yeah, it's based in Japan. Yeah, I'd believe that a Tomoggi for babies. It's a standalone device that's going to replicate having a baby. All right, that's number one. Number two, do you ever use Kinex? Yeah, I love Kinex. You ever build a big Ferris wheel?
Starting point is 00:21:08 No, because Kinex were hard. And I had a cousin. I have a cousin who's the same age as me, looks like me, last name, Puri. And this guy's way smarter than me. And I'm pretty sure the reason he's way smarter than me is that his dad bought him Kinex when he was a little kid. And he was just making Kinex all day, every day after school.
Starting point is 00:21:26 I was playing Dreamcast and he was building Kinex. Guess what he does now? I have a podcast. He builds like, self-driving cars. This guy is a genius. So, like, I'm pretty sure Connects is the, you know, the number one contributing factor to this guy being a genius. Dude, listen to this. Connects was sold in 2018 for only $21 million. I know. I know. Crazy. How is Lego like a $50 billion company and Connects sold for $21 million? Like, what happened here? And when you were describing the
Starting point is 00:21:55 Lego techniques, it's very similar. So Connects, the difference was that it was more kind of like a STEM kid thing where it's like sciencey and mathy. it's like you have these like little rotating wheels and it's almost like a motor that you're creating it's like a high functioning version of Legos. That's how I describe you by the way. You're a
Starting point is 00:22:14 high functioning version of a Lego. That's basically you. I take that as a compliment. And so I think Kinex should just like, somebody should just reboot Kinex targeted at as for adults that want to do Legos basically.
Starting point is 00:22:30 The guys like you. Literally connects for Sam Parr. That's my next idea. Go ahead. Yeah, I'm in. That's a, that's a no-brainer. I'm in. So Connect's was acquired in 2019, and they're basically not that existence anymore because of, because of a bunch of tariffs, something like where they couldn't import them. But, uh, yeah, I'm in. I think Connect's awesome. And I think they sold a bunch through like Toys R Us and then Toys R Us went bankrupt. And I think they lost a bunch of revenue there. So I think it's just, hey, a little bad luck.
Starting point is 00:22:58 You know, unfortunate bounce of the ball there. And I feel like Connect still has a good opportunity. All right, here's my next one. All right, what else? Easier Rubik's Cube. Can you do a Rubik's Cube? No, I can't. I cannot. Can you?
Starting point is 00:23:11 You kind of wish you could? Yeah, I mean, what we used to do is just take the stickers off. You take the stickers off and then you put them all back in the right place and you can brag that you did it. Oh, okay, gotcha. You can all just buy it new and it's done. So what's the easiest party trick you could do? Like, I can juggle. Can you do anything like that?
Starting point is 00:23:32 Yeah, if I smoke a cigarette, I could blow smoke out my ear. Really? I swear to God, yeah. I've had all these surgeries in my ear, and so some pipes got rerouted, and I used to be able to blow smoke out my ear. Dude, how do we not start every podcast with that? Come on.
Starting point is 00:23:54 We would be at 400,000 subscribers. Solving a Rubik's cube is a close second, though. All right, easier Rubik's Cube. So I think Rubik's Cube, fun little idea. It's kind of like a fidget spinner anyways, the way that the Rubik's Cube feels. However, too hard, way too hard. And we get it.
Starting point is 00:24:11 If you could do a Rubik's Cube, that's fantastic. That's chess. Where's checkers? I need a checkers of Rubik's cubes. And so here's what I'm thinking. Letters on the outside. And it's kind of like Wordle. Wordle is a very fun game, simple game.
Starting point is 00:24:25 You play every day. You could build a daily habit. I think somebody needs to take the concept of wordle, but put it in the form factor. of a Rubik's cube where every day you get a notification on your phone or there's a website that posts the starting letter combination and then you got to rotate it to make the word and it should take like five minutes it's like you know do you play the new york times mini crossword no do you every day this thing's amazing it's such a fun it's 60 it's literally like a 60 second break
Starting point is 00:24:53 it's a game it's a crossword crosswords are kind of fun but a real crossword crossword crossword is pretty hard and time consuming and that when new york times made this mini it that thing drives like millions of dollars. It's like, I don't know, 10% of New York Times' revenue comes from this little game app and it's mostly the New York Times mini crossword. This thing is an absolute hit product. All right,
Starting point is 00:25:13 I have two more. Candle pouring kits. So another thing that is highly tactile, highly satisfying, leaves you with a result, a candle. Candle pouring is something I see a lot on TikTok. I don't know exactly how it goes or how it works, but I'm pretty sure this could be
Starting point is 00:25:30 another adult, arts and crafts relaxation thing that is accessible to many. And results in you actually having something that's not just clutter and junk in your house because you could just light the candle, use it, melt it down, and then you're done. So I think a candle pouring kit company could do pretty well. Dude, I'm in on that one because you'd want to buy one. You'd want to continually buy them if you got into it, right? Yeah, and candles make a ton of money.
Starting point is 00:25:55 Like, go look at the candle MLMs. If you want to know what products work, go look at what MLMs. L.M's work and work backwards from there. So there are several multi-level marketing schemes that are based around candles, which tells me there's a giant market for candles. Tell me one more, and then I want to blow your mind with the Lego story. Okay. I'm now seeing what I wrote here, and I have no idea what this means.
Starting point is 00:26:18 So I'm going to just take this as a blank canvas for myself, relaxation puddle. I don't know what I meant when I wrote this. This is late last night. I think what I, oh, I think what this is, is. like my kids, one of the things you do with kids is you give them something called sensory play.
Starting point is 00:26:36 So you buy this like box and you put in like orbies or you put in these like gel circle things. You put your hand in it's kind of this cool sensation. It's like, it's like very cold. They're like these like balls that you can kind of like, you know,
Starting point is 00:26:50 you can touch a feel, but they're not like, it's like slime. You know, slime's really popular for kids. There's like all these things that are very tactile, Plato. And so I think what I was thinking here is,
Starting point is 00:27:00 It's very relaxing if you put your hands in this thing. What if you could put your whole body in this thing? I think is what I was thinking. It's more like those sensory deprivation tanks that people like to do in San Francisco and maybe other places as well. I'm not sure. But something you could just go lay in and it's like a super nap is really where my head was going. I'm trying to yes and you, but it's really hard when the premise is a relaxation puddle.
Starting point is 00:27:26 The word puddle is so underrated actually. sounds great has all kinds of jokes and commentates, a very memeable word and I think that's what you want with any of these. You want the idea to be so stupid that you get memed
Starting point is 00:27:40 into popularity. You understand what I'm saying here? Yeah, yeah, yeah. You're going to do it. It's going to sound ridiculous and 95% of America wants to make fun of you but then those articles go out,
Starting point is 00:27:53 those memes go out, and then 5% of people are like, I don't know, I'd try it. Right? Like, you remember when that thing, happened that like guys were laying on their back and they were like sun tanning their butt hole. Yeah, that's the new thing.
Starting point is 00:28:06 I don't even think that was a thing. But I think there was someone behind that that was like, you know what? We'll get ridden up everywhere automatically overnight. If I say that this is a thing. I've got this friend Chris who would send me so many photos of you just see his legs as if he's not very closed with his legs in the air. And he's like, just like, say his last name.
Starting point is 00:28:25 He deserves it for doing that. Just being healthy. Crocks are like this, right? They're intentionally ugly. They're intentionally so ugly you have to talk about them. And the design like stands out in a not so good way, but the result of it is that, you know, gets talked about. Yeah, like you just got to figure out what the fuck a relaxation puddle is first.
Starting point is 00:28:49 You're just starting with the words. Let me tell you two crazy stories. The second one is in particular crazy. And I think you're actually going to dig it because it's going to, revolve around your world. So, I'm a Lego fan. I like doing Legos now. It's my new thing. There's this website called Rebrickable. So Rebrickable is this amazing website. It was clearly started by an engineer. I think his name is. I actually don't know what the guy's name is who started it. Nathan. I think his name's Nathan. So Nathan was just an engineer at some company,
Starting point is 00:29:18 normal job in Australia. He started this website that he, it's actually quite complicated. And what you do, there's tens of thousands of Lego kits, you know, and it's been around for a hundred So there's probably hundreds of thousands of different types of Lego kicks. You tell it what type of Lego sets you have. And then other designers, so people who are Lego fans, have created directions on how to build their own creations. It's called an MOC, My Own Creation. And it's a whole community of people who build MOCs.
Starting point is 00:29:46 And he has roughly 30,000 people who have uploaded a variety of MOCs that you can buy from $10, probably all the way up to $100. And what's interesting about this guy, There's so many crazy business implications here. But what's interesting about this guy is, A, he's an engineer. And the people who listen to this podcast was a bunch of engineers out there. There's a huge overlap of end diagram of Lego enthusiasts. And this guy adds a third circle to that bend diagram of business people.
Starting point is 00:30:15 And so basically, he reveals all of his stats online. And you can go to his blog and you could see it. He started this company, I think, in 2010. And it was just a project. I looked at his LinkedIn. He worked at a full-time job. since 2000 until 2020. And he reveals every year how much page views that the website has had,
Starting point is 00:30:35 how many registered users it's had, how many people are selling products on there. So it's basically a marketplace. And so in 2023, he had 11 million users create an account on his website, which is huge. And so if you account for, let's say, 3% of people buy something,
Starting point is 00:30:51 that's 330,000 people or sales who bought an MOC. So someone's directions are building something. Say the average sales about $15, that's about $5 million in revenue that he's collected. And of course, he gives a lot to most of it, to the designer. But there's people who have whole stores on the website. And it's really fascinating. And his page views last year, 2003,
Starting point is 00:31:12 were around 160 million page views. And if you look at his website, he blogs every year, and he says what his stats are, how many page views he has. And it's a very interesting blog to read because, A, he's being transparent about the business. and B, you could see how to build like a rabid community. So on his blog, and it's clearly a self-built blog, he's not even using WordPress. He built everything from scratch.
Starting point is 00:31:35 You'll see the comments saying, I love this community. I'm so into rebrickable. Like, Nathan, you're the man. Like, people are rabid about this niche. It's incredibly fascinating. And this type of guy, I'm just going to stereotype him, he's not a business savvy person, or at least he doesn't want to be. Like, he's not out there trying to milk this dry and make as much money as possible.
Starting point is 00:31:55 But this type of business that he has, once you get users to a passionate following like this to your website, you can sell them anything. And so what Andrew Wilkinson calls us is an airport business. So once you're there, while you're here, we can sell you this, we could sell you that. People are here to learn and they're ready to buy. And the reason why this is fascinating is because with Legos, they cost hundreds of dollars sometimes. And you want to buy a new one every month, every couple months. And so the market is actually quite big to build a big business. This is like a type of company that if you want it to be a business, you know, if you want it to be a business,
Starting point is 00:32:25 PE guy, which I don't think you should, because this is like a work of art to me. But if you wanted to be a PE guy and buy a business that you could milk for tons of profit and you don't actually have to do that much innovation, this is one of those websites. Dude, what a great find. This is such a cool, cool business. Yeah, 10 million users. And by the way, look at this. I went to top designers. We got to put this on the screen so that our 399,000 YouTube subscribers can see this. The Chinese restaurant, this thing is insane. This is insane. Who made this up? This is so crazy. This is insane. And the technology to build this stuff is amazing because, A, you could just buy an MOC from someone and they'll tell you what parts are kits that you need and they'll sell them. Or you could, there's this crazy algorithm that they have where you upload hundreds of different kits that you have and then you click like submit and then you see like a wheels turning and it takes like 60 seconds as if it's like doing heavy like calculations. And then it'll give you a huge. list of hundreds or thousands of different MOCs that others have uploaded that you can create with
Starting point is 00:33:29 the parts that you have and it'll say you have 100% of the parts need for this or you have 50% of the parts. Here's the other 50% that you have. You can buy them here. It's really fascinating. It's quite complicated I would imagine to build that. You found like dork mecca. This is great. It's the best. Not only adults doing Legos, adults doing Legos who need custom made The Lego like designs. This is insane. Yeah, this is cool. This Chinese restaurant,
Starting point is 00:34:00 like 2,000 pieces, 10 bucks for the MOC. What a steal. It's amazing. And there's people, like there's people in the forums saying that they're close to making a full-time living, selling their MOCs.
Starting point is 00:34:14 And so when you have a rabid base like this, it's crazy fascinating to see what types of businesses you can build. Now, this particular model is very unique to Lego, but you could look at, what the sneakerheads have done with shoes. That was considered silly a few years ago. There was a small group of people and they created marketplaces for it. But this is a perfect example of how this is executed well, of these niche followings and going all in on them and building them for the community. And what's interesting is check this out. So in year one, he had a million
Starting point is 00:34:42 people come to the website. So in year one, so it's 80,000 people a month. That's pretty good. But it's not crazy. That's pretty good. His page used for 11 million. And he started that, I think, in 2015. I said most recently, in 2023, he had 11-exed it. So we had 11 million users and 160 million page use. And you could see how slowly these types of businesses build. And it would be very hard to break this company down.
Starting point is 00:35:07 They have a true moat. Yeah, 100%. Should we help them with like a marketing slogan maybe? Dude, this guy, this guy's, this guy's killing it, man. Whatever he's doing, I want to be part of it. But let me tell you about an even create. Let me tell you, even crazier story. This actually should be a movie. So there's a website called Bricklink.
Starting point is 00:35:27 So go to Bricklink for me. Bricklink was started in the year 2000. So one of the early, early, early first website businesses, first internet companies. So Bricklink, it originally started as Brick Bay. The guy who started his name is Dan J-Z-E-Z-E-K. So you spell that last name, J-E-Z-E-K. Do you mean a favor and type in Dan Jesnick on your Chrome and go to his personal website. You see his personal website? It looks like a Geo City
Starting point is 00:36:00 website. Is he dead? Why is like a... He's dead. He's dead. Okay. So let me tell you this story. So Dan started, Dan was a, they didn't explicitly say this, but it sort of sounded like he was a hacker type of guy. And so he was kind of like a little
Starting point is 00:36:17 bit gray hat where he was a type of guy who probably like would break in to like different websites and things like that. That's the vibe that I got from him. But he was fascinated with Legos. And so he built this website called Brick Bay. It was called Brick Bay at the time because he lived in Hawaii on a bay. Eventually he got sued by eBay.
Starting point is 00:36:34 They're like, you can't use Bay. So we changed it to Brick Link. And he was kind of like reading about him, I kind of got vibes of Ross Ulbrick, the guy who started Silk Road. It was one guy. He was anonymous. And he would blog about all the changes he was making to the website. But it was under the name, Admit.
Starting point is 00:36:50 He never used his real name. name. And it was just him. And he had a handful of volunteer admins who helped him run the site. And he ran it like a community. And what a Bricklink does is you can buy and sell different types of Legos. And so the thing about Legos is if you build a thing, you don't have any more joy for it sometimes. So you can pack it up in the boxes and you can sell it and just get a little bit of your money back and then keep going or buy rare or interesting pieces. And so he ran this for 10 years. And it became a good business. However, he died tragically. No one online actually says how he died. We don't know. A lot of people suspected a drug overdose, but we don't know. But he was working on
Starting point is 00:37:25 this website full-time, 24 hours a day, seven days a week. It was like a full-time gig. When he died, his mother, imagine like a cute old lady who like bakes cookies. That's what his mom looks like. And when he died, his mom loved, you know, she loved her son and she was so passionate about the community that he made that she was like, well, I can't let this community go away. And so her and her husband, Dan's stepdad, took over the website. But because it was just one guy running it. They didn't even have the passwords. They didn't even know how it was run. And so they eventually called the web hosting site or the web hosting service. And they're like, hey, here's what happened. Can you help us? They gave them the passwords. And they just spent
Starting point is 00:38:00 three years figuring this out and try to make the community thrive again. And it did. And the community stepped up and they're like, we got to do this for Dan. This community is too good. We can't let Brick Link go away because we love buying and sell Lego's here. And so they run this business for three years. And it becomes a good business. Now, Dan dies. They're running it. Three years later, a billionaire named J. Kim bought it. Have you ever heard of J. Kim? No. So, J. Kim, if you click his Wikipedia, obviously, J. Kim's not his real name. It's Jim Kim Jong-Jun. I don't even know if I'm pronouncing that correctly. He's a Korean guy, but he was famous in Korea because if you Google J. Kim, you'll have to type in like
Starting point is 00:38:39 J-Kim gaming Korean billionaire. J. Kim was basically kind of like the Mark Pinkis of Korea. So in the 90s, he was early in the internet and he created games and he became the biggest gaming company in Korea. Then he was a billionaire. So he starts this family holding company where he buys a bunch of interesting companies. And Bricklink was one of the companies that he loved. Another one, now this is where it kind of comes into your world. By the way, he says at the time of his death, he was the third wealthiest person in all of Korea. Yeah, he's a big deal.
Starting point is 00:39:10 He's a big deal. But Jay Kim, he was like a steward for this website. So they basically, they didn't change much. But one of the reasons why he bought it, and one of the things that makes this interesting, and I'll read this excerpt from basically Dan, the original Bricklink owner's mom, wrote this beautiful tribute. So if you go to Danjcizek.com, wrote this amazing tribute where they show pictures of Dan and him growing up and working on Bricklink. So she wrote this amazing thing, and I'll read part of it. And she said, not long before he died, he developed an international monetary exchange engine called Bricklink that allowed sellers almost anywhere in the world to sell in their own.
Starting point is 00:39:46 own currency and their customers could buy in their own currency as well. And every two hours, this system that Dan built, it would update. And so you can buy cross country or across the world and your currency would automatically be updated. And so everyone was getting a fair shape. He built that in 2010, which is pretty fascinating. And Jay Kim also owns a BitStan. Have you heard of bit a BitStan? Yeah, crypto exchange, right? One of the largest crypto exchanges in the world. And so the reason why this guy, Dan, and this whole story is fascinating, is there's actually some weird crypto implications here where you see this overlap of like, wow, what this guy Dan was doing is actually like in the same world of this whole crypto thing. And he was pretty early to it.
Starting point is 00:40:30 And these Lego fans, and if you go to Bricklink and see the comments, they're all similar. It's all a similar type of people. And this business, Bricklink, it's fascinating. And oddly, Jay Kim also died under mysterious circumstances in his 50s in Hawaii where Dan died. And so there's a bunch of weird things going on with the story. But Bricklink is a very fascinating company. And most recently, Jay Kim, after he died, Lego, the company bought the website. And they openly said, we bought this website because we want to carry on this tradition. We don't want anyone messing with it.
Starting point is 00:41:03 We don't intend to do too much with it. We just want to keep it going because this is for the people. Wow. That's pretty cool. Very fascinating. on this guy's website on this guy's website it says here's a quote from him about what he
Starting point is 00:41:15 wants to do after he there's a subject there's a post on the forum that said it was called afterlife question mark who jkim or or dan dan dan he goes after I die here and go to heaven this is how I imagine it to be a place where there's infinite amount of bricks and an
Starting point is 00:41:31 infinite amount of time to build them with to build with them there would be all kinds of bricks for all themes so that I could get so that I got bored of building a castle, I could move on to a town or a pirate ship. There would be lots and lots of other Lego maniacs to share ideas and build with.
Starting point is 00:41:48 Isn't that? It's fascinating, right? It's so great. And if you read this guy, Dan, both Dan and Nathan from the other website, they use these just like, what was the name, dread pirates? What's the Silk Road guy?
Starting point is 00:42:00 Yeah. Whatever. It's a marketplace, but it's a weird movement, and it's a weird diary, and it's like a cult, and there's a very particular leader, and he's leading the charge.
Starting point is 00:42:11 It's a really... And nobody do his name. He was just admin. Admin. He was just admin. No one... They kind of knew it was Dan, but he never, like,
Starting point is 00:42:17 revealed his name. And it was just, oh, admin's doing this. And it's just this weird. Like, it all stems from like, you know, remember like the phone freaks?
Starting point is 00:42:25 Like people who would like hack into, um, uh, pay phones. And then there was, uh, the internet and they were doing things like that. Now there's crypto. Like,
Starting point is 00:42:32 it's this weird chain where it's actually all quite similar. It's this weird underground community. And so as a business person, I, see these, I see these things and I'm like, what other products cost a lot of money, have a passionate, nerdy following, and where you can build a large audience and then eventually sell them everything. And Lego fits that perfectly. I think there's a few others. You've named a few, but it's, it was actually challenging for me to find other things that
Starting point is 00:42:58 were at like this, but like sneaker heads are kind of one of them. But there's, it's just really fascinating how big I think these businesses can be, even though they appear quite niche. Oh, dude, I forgot. Thrill of the Shill. So, first of all, the thrill of the shill is one of the chef's kiss, best inventions we've had. And unlike the gentleman's agreement, which we kind of stole from somebody else, the Thrill of the Shill is actually an original. But I have a different thing I want to try today.
Starting point is 00:43:23 Are you down for it? Yes. The Thrill of the Shill, by the way, came up literally 30 seconds before we hit record a few weeks ago. And we said, how do we promote interesting stuff? And you were like, well, we've got to tell them valuable content. And then hopefully they'll buy whatever we're selling. just call it the thrill of the shill. So congratulations.
Starting point is 00:43:39 Let's hear it. Yeah. So that was good. But now I want to try something different. Have you ever read this thing that is like this, the famous Hemingway story? I'm sure you have because you're a copywriter guy, which is the six-word story.
Starting point is 00:43:50 Do you know this? About the guy outside holding the poster board? I don't know if it's that exactly. But basically there was a challenge, which was a six-word story contest. So it was, how do you tell a story in six-word? You only have six words. The lore is that they told us to Ernest Hemingway.
Starting point is 00:44:09 And he came up with the six-word story, and he won, which was, for sale, baby shoes, never worn. Six words, tells a deep story. It hits you in the emotions. There's another story like that where there's a homeless guy sitting outside, and he says, like, I'm blind, please help. And a famous copywriter writes, he goes, let me help you. And he goes, it's spring outside. Or it's springtime. And then I'm blind.
Starting point is 00:44:35 please help. And so I have a six word challenge, six word thrill of the show that I'm going to hit you with. So I'm going to do my Hemingway. I'm going to do this whole ad in six words. There we go. Business for sale. Owner never hired. And it's about this business. It's a story about a business that failed and it's up for sale now. And then why? Because the owner never hired. He tried to do it all himself. And he just never made the key hires that he needed to scale the business because he didn't go to. to support shepherd.com and find amazing talent overseas to hire at a low cost, five times less than the United States. Boom! How was my story? That was beautiful.
Starting point is 00:45:13 That was beautiful. Dude, the Hemingway one was quite good too. I'm still thinking about that one. What is it? Maybe I shouldn't have put Hemingway before my one that I made up one minute ago. Maybe I should have done the all-time best against mine. What was the line?
Starting point is 00:45:30 Business for sale, owner never hired. Just like the shoes for sale. Business for sale. Owner never. hired. I thought it was good. Supportshepard.com. That's the, that's the chill. The thrill was a beautiful line. There we go. Back to the episode. You know the other one that's most like this is fan fiction. So Wattpad reminds me a lot of this where Wotpad and there's also another one that's like some wiki, it's like a Wikipedia, but fandom. Yeah, I think fandom like bought them or something like that. But there's another one that's just straight the
Starting point is 00:46:04 Wikipedia part of it. But fan fiction. So people get super, super, super passionate about Harry Potter and about, you know, different books. And then they kind of spin out their own, their own world, right? Like I remember MuggleNet, which was started by that guy Emerson Sparts and, you know, or Spatz. I don't know. I don't know how you say it was last name. They built such a huge, huge website just around fans of Harry Potter.
Starting point is 00:46:30 It was very much like, you know, Bricklink or whatever. And on that, I remember I used to go on there and read people because, we'd be waiting for the last book to come out, and people would write their own versions of that last book. And you would just read like a full-length book that somebody just wrote in their spare time for fun. And that led to some big things. Like, you know, 50 Shades of Gray came out of a fan fiction post
Starting point is 00:46:52 just like that. Like it was written originally as a fan fiction post around Twilight. And so fan fiction and a few people who were surprised that Wattpad was giving like hundreds of millions of visitors every month. Like one of the most popular websites in the world, world. I think they sold for $600 million to a Korean company recently. Two years ago, maybe. Yeah, and they weren't making any money, but they weren't making much money, but the passion and the usage was there. It was off the charts. And then, you know, you don't have to do much marketing because the people who are passionate about it are just going to search the internet for every nook and cranny to find, you know, other people who are as fanatical about it as them. So there's a few attributes here that I'm just thinking about the top of my head. So attribute number one is they seem like,
Starting point is 00:47:35 jokes at first. So, like, it's kind of silly, like, almost embarrassing. Like, what do you do for living? Oh, I run a Lego blog. Like, it seems silly when you talk about it at first. But if there's enough people, it could be pretty great. The second thing is, I actually think, I think these types of companies, you shouldn't build quickly. These are slow-burred businesses where you don't want to get too big, too fast. Otherwise, the nerds, the passionate ones will be like, oh, this is lame. This is too big, too mainstream. It's getting commercial. But number three is, if you do it right, they have huge moats and they're very, very hard to kill. People get very loyal to them.
Starting point is 00:48:15 But just like actually New York Times cooking actually had this a few years ago. So New York Times cooking is a similar community like this, passionate fans. They had a revolt because in their Facebook group, someone made a change, an admin made a change. And they revolted. I don't know if you remember this about two or three years ago. they had 60,000 people in the New York Times cooking. They changed something where you had to get your post approved as opposed to posting on your own, a change like that.
Starting point is 00:48:43 People revolted. And so these communities, you're basically a steward of the people. You're not all the time a dictator. You have to be very, your fans are temperamental. And so there's pros and cons of these types of companies. But I do think they're very, very valuable because of how hard they can be to ruin. The, do you think, not to be self-serving, but just real, real discussion.
Starting point is 00:49:09 Do you think we can kind of do this? I kind of think that we have the makings of doing something like this, but we also might F it up by trying to. Yes. Grow it too fast. So, for example, one of the best tests, I remember talking to Ben once, and one of the best tests for will somebody like MFM is this experience. Do you ever go to a restaurant and then you can't help it, but your brain is like trying
Starting point is 00:49:32 to calculate how much is this restaurant making? You basically start counting the tables and then you can't, you know, you just count the tables. You figure, oh, this many meals per hour. What's our bill? Our bill is this much. Okay, average ticket is this. And you end up with like, what's the eat bit of this restaurant? And that, if you're like that, you're probably going to like this podcast.
Starting point is 00:49:48 It's a very high, like, you know, overlap. But being like that is weird, right? That's not a normal way that people are. Most people just go to the restaurant. They look at the menu. They order the food. And if you're sitting down with four other people, no one else at that table is going to nerd out with you.
Starting point is 00:50:00 Like, look how packed. this place is like, wow, how much you think of one of these servers is per hour and look how much the meal. Like, you know what I mean? No one, you're going to dork out with that, but no one's like, dude, shut the fuck up and just eat your chicken parm. Exactly. And so in the same way that most of Lego people, if they went to school, could not find somebody as, or they go to, in this adult one, you go to work, you're not going to find people who are trying to build this 2000 piece Chinese restaurant that they bought the blueprint for for $10. Like, you're not going to find your people there. And so you find your people elsewhere. You find it on bricklink. You
Starting point is 00:50:29 find it on rebrickable or whatever. I think for us, it's the same thing. That person who's at that dinner, the six people they're at the dinner with, your family, your friends, they might not want to dork out about it. But you find us in the community of people that like this, and you're like, these are all people who want to know the eat bit of the restaurant. And so it becomes this like glue and you find your people. And I think I've been tempted in the past to try to grow this faster.
Starting point is 00:50:55 And the things you do to grow it faster are sort of like dilutive. You sell out a little. You sell out a little, right? It's the cringy YouTube thumbnail face. It's the talking about a topic that might not be the thing you would actually want to dork out about. I like that this episode is basically 90% us dorking out about these niche Lego websites versus things that might be more mainstream. You know, talking about the Super Bowl next week or whatever. But it will attract the right people.
Starting point is 00:51:27 I thought the Super Bowl was in November. I didn't even know that. That's news to me. So, okay, that's one thing. The second is like a business principle I saw. So somebody said this, I thought was really good. They go, if you want to build like a truly, a truly strong business, build like a reverse funnel. I was like, oh, that's interesting.
Starting point is 00:51:51 So like I always think of every business as a funnel, but I always think about it from top to bottom. What do you mean, audience first? Yeah, top of the funnel is people. who don't know you, they come to your website for the first time. They hear your podcast for the first time. They hear about your product for the first time. And that's like, you know, they become aware of you. And then they might get interested.
Starting point is 00:52:05 Then they might actually sign up as a user. Then they might sign up for the paid account. And the paid account is always at the bottom. And I always just thought of a funnel as top to bottom. And what this person was saying was there go, yeah, you actually want the reverse, you want to build as a reverse funnel, meaning you want to find like the 10 people who are most interested and passionate about what you're doing to where, you know, these are your extreme hardcore users who absolutely love.
Starting point is 00:52:27 love that you're doing this. And they will use it every day and give you feedback. They'll annoy you with their feedback. They'll tell all their friends. Their friends won't even listen. It doesn't matter. And they're your power, power users.
Starting point is 00:52:35 And then you sort of go one rung up and you go to like the next hundred people who care a lot for sure, but less than those 10 who were like really nuts. And then you go to the thousand people, 10,000 people, 100,000. And you stack the funnel from the bottoms up is a way to think about building an enduring product because you're really going to find the people who need it the most, who love it the most.
Starting point is 00:52:55 They're going to give you the best feedback to give you to get the product to be, you know, better. And you're going to find, you know, the people who love it versus everybody else who's kind of like, oh, that's cool. And I thought, oh, that's actually a good principle, too, when it comes to how to build something. I don't know, when you built Hampton, did you do that? Yeah, for sure. Yes. How did you think about who the first, let's say, 10 to 20 people should be? How did you decide that? So at first, I was like, let me figure out who wants this most. But then I, and I had ideas as to who that would be. And then what I found was, I was like, wow, there's a lot of entrepreneurs in Tennessee, Iowa, Idaho, Delaware,
Starting point is 00:53:32 some of these forgotten areas that aren't on the coast. And I'm shocked at how lonely they are and how much they need this. Let's go get more of those people. And so that's what we did is I thought it was going to be like cool New York or San Francisco people. And turns out it was cool Kentucky guys too. But like I just didn't even, they weren't even part of my like, they weren't even part of my vernacular.
Starting point is 00:53:51 I wouldn't even have thought about them. And so that's what we did. I think with this podcast, I think it's good that you and I have other businesses that A, pay us money and B, can grow faster because there's been very, there's been, it's been very tempting to try to do things that are inauthentic, but we know they will get more views. And actually, we've done a good job of sticking to like being authentic. But this is the, this is a very, that was a really good point of yours is that this podcast as well as a handful of other ones. They're like these nerdy things
Starting point is 00:54:23 that a small group of people are really passionate about. Like for example, did you see the meetups that people were doing for MFFM? I was just about to bring that up. That's an example. Dude, do you know they're still meeting? Like, they're still meeting. That's exactly right. So we thought, I guess the first mind-blowing thing was,
Starting point is 00:54:40 oh, if me and Sam say we're going to go to someplace do a live show, wow, we could feel like, you know, a thousand or two thousand people in a, in a, whatever, a theater to come watch us. And it's a ton of work. What's that? It's a ton of work. We were both just like, all right, let's not really do this. Yeah, I don't want to find a Toronto.
Starting point is 00:54:56 And, you know, cool, we had the moment where it felt good, but like, I don't know if that's what we want to do on an ongoing basis. And then somebody came to us. I forget her name. I thought about Rachel. Rachel River. River. And she's like, hey, our product does this.
Starting point is 00:55:09 She's like, our product is for creators who have a community, let your community meet up without you. And I was like, key word, without you. Love it. And I was like, actually, that kind of makes sense. Because again, while it feels good to maybe be like, you know, the center of attention, doesn't really feel good. And also, that's not actually what makes something really valuable.
Starting point is 00:55:30 What we'd rather do is use our content as a magnet as a honeypot to bring in the cool guy from Kentucky and the cool girl from Illinois who they all do the restaurant thing where they start calculating restaurant revenues when they walk into a restaurant and get them together because they're going to hit it off, but it'd be hard for them to find each other. And so if all we serve as is basically the finding function for those people to meet, and what's cool is that they did the first meetup, but then now they've just been meeting on a monthly basis, that tells me that we did something right.
Starting point is 00:55:59 I don't know, we didn't intend to do that to be very clear. Like that was not, none of this was intentional, but that means something went right. I phacemed a few of them. Like they was like, hey, we're doing this thing. I was like, all, face time and just say hi. And there was people. And by the way, we have, like, there's no like monetary thing. I think it's completely free.
Starting point is 00:56:14 If you Google MFM and then River Meetup. you'll see like the landing page. I talked to people. They were like, yeah, I drove six hours to come to this one because I'm looking for a husband or a wife. Like I want to meet someone who has these similar values that for some reason
Starting point is 00:56:28 MFM is a proxy for. And so I thought that was like super fascinating. And they told me to go, oh, we're still actually doing monthly meetings. We just want to hang out with other dorks like us. And I thought that was awesome. By the way,
Starting point is 00:56:39 our, my tagline for people that will like this is just business nerds with a sense of humor. That's the whole thing. If you're a business nerd, meaning like you do business, but you also, in addition to the business you run, you actually kind of nerd out about more business stuff. You can't really get enough.
Starting point is 00:56:53 It doesn't feel like work to you to think about business or to read about businesses or learn more business stuff. And then with a sense of humor, because there's probably people that are more experience in us that share more tactical stuff that are, you know, whatever. They're smarter, better. They're more to the point. But I think the one thing we do is we have a lot of fun while we do this
Starting point is 00:57:12 and that rubs off. And so that's the capture of like who is the audience for us. So we just dorked out on like niche, niche passionate things. I think that this Lego shit is crazy fascinating. You'll have to go to the Danjcc site, danjc.com, just to look at this. And maybe you guys will dork out over this like I did. And by the way, if you made it this far into the pod, you're definitely one of these nerds. Just go ahead.
Starting point is 00:57:39 This is my one sellout. Go ahead and click subscribe on the YouTube page because you made it this far. And you could actually make fun of us in the comments or let us know what you think about this niche stuff. I have one more quick one that's like kind of in the theme of kids, stuff, games, toys. Have you seen the thing called Pal World? I know you're not a gamer, but do you know about this? No, what is Powell World? Pal World is currently like the most popular PC game in the world.
Starting point is 00:58:01 So it's on Steam? Tell me what Steam. I still don't understand exactly what Steam is. Steam is like an app store, but for computers? The company that makes CounterStrike, they, in order to let people come download the new version of Counterstrike and buy it, they created Steam. It's like a store to sell. CounterStrike, but it also sold all the other games, right? So now anybody can list their thing there.
Starting point is 00:58:20 But I can't do it on Apple? Well, no, because you're playing on a, you know, a Razor PC or something like that. Got it. So what do you need to the Apple App Store for? That's not going to work. So it's the Apple App Store, but for computer games. And huge, by the way, like a multi-billion dollar product. So the number one game on Steam right now is Pal World.
Starting point is 00:58:41 Pal World in like seven days has done $200 million in revenue. What? When games hit, they hit like none other. And by the way, this thing was made like on a $10,000 budget. So it was like a very, very low-cost game. What's interesting about this, right? So the game is basically, the game to me, the reason I wanted to bring this up, not because I'm not even playing the game.
Starting point is 00:59:01 It's not like you play games. We don't have a lot to talk about here. But I do think it's an example of the midwit meme strikes again. And this is basically that the best ideas, the absolute best ideas are simple. And they're not just simple. they're simple to the point of sounding dumb. Okay? So simple to the point of sounding dumb.
Starting point is 00:59:20 What does that mean? So to me, this is, let's see, simple to the point of sounding dumb is Snapchat, the next big social app. It wasn't started as this like grand intellectual theory on the future of communication. It was like, what if you could send someone a picture that would like disappear in 10 seconds? Nudes. It's like college nudes. Right? And people are like, what would you do with that?
Starting point is 00:59:44 I don't know, stupid shit. Why stupid shit? Because it's going to disappear in 10 seconds. So I have no filter, right? And then after the fact, it becomes this thing that people intellectualize and they're like, well, see, the thing is that, you know, impermanence is actually the greatest form of permanence. Like, what are you talking about? And people start to get intellectual about it.
Starting point is 01:00:03 But that's not where the best ideas come from. The best ideas come from really, really simple things that can be described in just a couple words. Where it's Pal World, if you go look at this game, oh, what's the game? the game is Pokemon with guns it's like what it's like yes and then literally
Starting point is 01:00:19 the CEO he says this he goes I'm not a visionary I don't know how to do that I just try to make whatever people want and I knew that Pokemon
Starting point is 01:00:29 he didn't say Pokemon because he didn't want to get sued but he's like yeah I had this idea of like you know you could run around and capture these little monsters but then we added guns
Starting point is 01:00:37 because you know Americans love to shoot things that's insane that was like the core idea and he was like They're like, so what was the decision to do this art style? He's like, oh, I didn't even want to do that, actually. I wanted to do the like cool 3D thing, but I didn't even know that to do that.
Starting point is 01:00:52 You have to have like an animation rig and all this stuff. He's like, so I made one. And I was like, God, that was hard. There's no way we could do this with like 10,000 characters. Like, impossible. He's like, so we had this artist that we had rejected and then we like hired her later. And they're like, oh, they're like, what did you tell her to do? It's like, I don't know, like whatever our programmer could make.
Starting point is 01:01:11 Like, that was her mandate. They're like, what was your budget? He's like, I don't know. We had like $10,000, but we didn't really set a budget. He's like, you know, I guess if we needed more, I would have probably just gone and borrowed some more. They're like, tell us about the developers on your team. He's like, one of my developers is a guy at a convenience store, this kid. He's like a teenager.
Starting point is 01:01:29 But like, he told me he could code. So I told him to come by and, you know, he works on the game. He's pretty critical for the game. So the founder has written this like really amazing blog posts where he like explains everything that you're talking about. And he's like, he's kind of, he's like a shithead in the best possible way. And he's like, he basically says, he goes, this game shouldn't even exist. It's the antithesis of proper game development.
Starting point is 01:01:52 And he says, he goes, we had no budget. No same company would ever start developing a game without a budget. But pocket pair, which is the developer, is not a sane company. And he just talked about, so I started asking myself, what's the budget? When the balance of our bank account reached zero, we could always just borrow money or release money just before the company went bankrupt. We had about two years of runaway, and I decided just to keep working without stressing about budget, because all I was worried about was getting the game done as fast as possible. And he's quite not like a corporate CEO.
Starting point is 01:02:22 This is like pretty awesome. He's in Japan. Is this a Japanese guy? Yeah, it's a Japanese game. He basically made some money in crypto and then took the crypto money and was like, all right, I'm going to start a game studio with this, even though he kind of wasn't like, you know, equipped to do that. Like right now on Steam, it's the number one game. Right now, as we're recording this, there are over one million people concurrently playing the game.
Starting point is 01:02:45 That's insane. The second. Like the highest was two million at a time we're playing the game just concurrently. It's the number one. More than Dota, more than Counterstract, more than PubG, more than all of them. He was like this one lady applied, but I didn't think her designs were that good, so I rejected her. But then three months later, she sent me a DM, and I was so amazed that she was bold enough after I rejected her to keep messaging me. So we hired her.
Starting point is 01:03:08 like he just has like story every story of like that doesn't make sense so let's do it but the meme where it's like you know the idiot the Jedi kind of think the same thing right like just make the game as fast as possible right or like you know if you're out of money just try to get some more um you know what should you make it what if Pokemon had guns that would be cool right it's like versus people who are like you know trying to over overly intellectualize and overanalyze everything. And I just see this trend over and over and over again. I truly believe,
Starting point is 01:03:44 I didn't tell you about the midwit thing I'm trying to do. No, what? I truly believe this midwit meme explains so much of my own life. And I want to see it every day as a reminder to don't overthink it. Just keep it simple. And just what's the obvious answer? What's the obvious answer is like, it's always there.
Starting point is 01:04:01 But it gets fogged up by my own stupidity trying to overly over architect things. Or like, want to be an intellectual. And so George Mack, our friend, you know, George, he's awesome. Yeah. He's a great dude. Very interesting thinker.
Starting point is 01:04:15 And so he had this idea for a, like to do a super glossy like coffee table book high end, but of just like 100 midwit memes. And I heard this idea and I was like, that's genius. I can't wait. And so I messaged him. And then like months later,
Starting point is 01:04:29 I was like, dude, what happened to the book? And he's like, oh, well, I didn't want to do it because, you know, um, you know, I was going to have to do 365. his original thing was 365. Like, what a day.
Starting point is 01:04:39 365 midwit memes. He's like, I didn't know if I get to 3165. And I thought, well, the cost of this might be a little high. I'm not sure if I'm going to be able to make my money back. But then,
Starting point is 01:04:47 you know, he's like, and really a bestselling book is something that has these attributes. And I went and studied all the best selling books. And I learned all these commonalities between atomic habits and this and this is this. And I just sent him the midwit meme back after his like, thousand word like, what's that message?
Starting point is 01:05:00 And I was like, make the book. It'll be fun. Right? Like, it's obvious. I just make the, just do it. It'll be fun. Who cares?
Starting point is 01:05:06 You don't have to do all these things. It might lose a little bit of money. It's okay. Right? Like, the people who will buy something cool will come with this. There's no big deal. And so I'm trying to convince him to do this, to do this book with me. I'm like, let's just make this book. It'll take us like two weeks. And it'll be fun. And like, anybody who actually buys this thing is going to be the exact type of person I want in my life. Just do it on your own.
Starting point is 01:05:30 I'm looking for an excuse to do a project with George because I really like him. And also, this was his idea. So I don't want to steal his idea. want to convince him to do this with me. If he really refuses, I'm going to say, all right, can I just do this myself? And I don't do it myself. It's Monday. I think this episode goes live on Wednesday.
Starting point is 01:05:44 I forget when. But whenever it goes live, give him, he has seven days. If this doesn't get him to do it, he has seven days. Just tweet at George Mac. His Twitter handle.
Starting point is 01:05:53 George on the Mark. Just tweet at him. Just say, do it. And he's going to have to figure out why everybody's tweeting, do it at him. And I'm sure he will eventually put two to together and know. this is why he needs to do it.
Starting point is 01:06:07 I enjoyed this episode. What do you think? Yeah, this is fun. I enjoyed dorking out over this stuff. I had a great time. Do we rap here? Is that the pod? That's the pod. I feel like I learned something today. Yeah, and I had a great time. That's the midwit. That's the midwit meme of preparing for these things. I'm like, uh, what gets views? What will make more money and what will be more fun? All right. That's the pod.
Starting point is 01:06:35 I want to. I put my all in it like no days off. On the road, let's travel, never looking back.

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