My First Million - He Turned $300/mo Into $3,750,000/mo From GARDENING

Episode Date: May 31, 2024

Episode 591:  Sam Parr ( https://twitter.com/theSamParr ) talks to Kevin Espiritu ( https://x.com/KevinEspiritu ), AKA The Plant Daddy, about how he turned a side hustle into a $45M business in his b...ackyard. — Show Notes: (0:00) Intro (3:41) $250k playing online poker (6:04) The influence of Pat Flynn (7:43) Cocoa butter cream review site (8:30) Printing on-demand shirts (12:26) From Scribe to $300/mo gardening blog (15:06) Inflection point: The metal raised bed (17:42) Billion-dollar blogs (19:20) Life-changing money (23:56) 5 Languages of the love of money (26:47) Lessons from Ramit Sethi (28:25) Path to $100M through acquisitions (29:19) Buying a seed tray business for less than $500K (33:22) Buying a competing gardening blog (37:00) Acquiring Botanical Interests (42:16) Red and green flags in acquisitions (46:12) The danger of being a celebrity on the internet (48:45) Idea: Branded hybrid plant species (52:38) Floyd Zaiger, the godfather of licenced plants (57:26) The lie behind Blue Zones (1:00:12) The Tesla of chicken coops (1:00:53) Beekeeping (1:04:46) Choosing your hobbies wisely — Links: • Kevin on Youtube - https://www.youtube.com/@kevinmespiritu • Epic Gardening on YouTube - https://www.youtube.com/@epicgardening • The Chernin Group - https://tcg.co/ • The Billion Dollar Creator - https://nathanbarry.com/billion/ • Get HubSpot's Free AI-Powered Sales Hub: enhance support, retention, and revenue all in one place https://clickhubspot.com/sym — 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: Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano

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Starting point is 00:00:00 All right, what's happening, everyone? Today's podcast is with Kevin Espiritu. So Kevin has this company called Epic Gardening. Epic Gardening started as a blog where Kevin would just blog about his hobby as a gardener. He started it in 2016. And in this podcast, he's going to tell us the revenue for every year that he's been doing it. But this year, they're going to do something like $45 million a year in revenue. And Kevin walks through how they got traffic, how he's built the company,
Starting point is 00:00:26 how he bought other companies to make Epic Gardening a big business. It's incredibly fascinating. He's super transparent with all the numbers. So he goes through deal by deal, all the companies that they bought, how much they paid for it, how they found the company, how they found other companies that they didn't end up buying and why they didn't buy it. It's a really fascinating story. This guy is really, really cool. I think in about five years, this guy's going to be a really, really big deal. He's already a pretty big deal. But I think in five years, he's going to be like chippid Joanna. You guys have to listen to this podcast. He's a really fascinating guy. Let me know what you think. All right, check it out. the world. I know I could be what I want to. I put my all in it like no days off on the road. Let's travel. Dude, so it's finally nice to talk to you. I didn't know who you were. And then on the podcast, Sean, like, told your story. And I'm like, oh, I recognize this guy from everywhere. And I didn't realize how big of a business that you'd built. So congratulations. That's insane, right? Yeah. Yeah. It's been a crazy ride. It's been a crazy ride. I just watched one of your YouTube videos where one of your videos had just gotten, I think you said, 70 million views.
Starting point is 00:01:33 And it's just like you kneeling on a like a little kneeling like device. So you can garden on your knees more easily. And you're like, I've been getting notice in the streets because of the silly kneeling video. Yeah. That video might haunt me. I think it's the most viral thing I've ever made. It's a short form video. So I'd seen this little kneeling device.
Starting point is 00:01:54 It was like a Instagram reel of a German trade show. And it was just this little kneeling device where you, kind of popped down it. I think it's made for brick layers. So I saw it and I was like, you know what? I kind of want to try it out just to see. And so I had my team grab one. There was like one in San Diego where I live. And I made that piece of content in like maybe 10 minutes maximum and then edited it up, tossed it out, put it on I think TikTok first and it just started ripping. So I was like, okay, I know this thing. It has some legs. So then I threw it on Instagram and Facebook and then threw it on YouTube. I think it's like 150 million views across
Starting point is 00:02:27 the platform. And the whole logic of doing it was, let me put this product in front of our gardening audience and see if they like it. So then we can either hit up the manufacturer and carry it on our store or we can maybe make some modifications to it that make it a little better suited for gardening. And then it's basically just market validation, right? By the time we went that viral, we hit up the manufacturer, which is a German company. And they're like, we would love to sell you some, but our entire stock in America is gone. So every distributor we already have has sold out so we can't we can't get it to you how much uh missed revenue was that i have no idea what's your guess over or under 10 million oh it's got i think it's under for sure because i think
Starting point is 00:03:08 these things are like 50 bucks maybe i don't know how many we would have sold but i don't think there was some crazy supply in the u.s but yeah it's kind it was kind of a bummer so the only the only thing i've ever gotten out of it is just being memed to to death about it dude so you the reason you're sort of interesting to me is did you start with like an internet marketing background? Because I know that you're interested in search and SEO and stuff. Was it like to be an agency? And then, I mean, were you even into gardening and plants and all that stuff? Or were you like, I'm the plant daddy now because I've got this website. And so like, which came first? What came first was, yeah, I guess designing websites did come first. Because
Starting point is 00:03:46 I came out of college with an accounting degree, but I played online poker to pay for school. And so that kind of like put me off the path of wanting to be an accountant right out of the gate. And you were making money. Yeah, I made like $200, $250,000 probably playing poker in college. So I used that to pay for school and then I had some money to like sit on. Was it all online? Yeah, it was all online. I hated playing in person because it's so slow.
Starting point is 00:04:09 Because when you're playing online, you're playing faster, but you're also playing like more tables. What makes a good online poker player? Because I would think I don't play poker really. I've only played like 10 or 20 times. It's just like it seems like reading body language and things like that is part of the game. But what makes a good? online player, just straight math? Straight math is a big part of it.
Starting point is 00:04:29 So understanding probability theory and understanding the types of hands that someone could or couldn't have in a particular situation. But you're kind of right. Like eventually when you play enough online poker, it gets down to the point where you know the people's screen names you're playing with. And you probably have played with these people like over days, weeks, or months, depending on how often they play. And you can even get down to the point where you know in this particular position,
Starting point is 00:04:53 like I'm sitting on the button, they're sitting in this position, and they wait three seconds longer than they normally do, and it's this person's screen name. A lot of the times, you can develop some sort of weird six cents, and you're like, I'm nearly sure that's a bluff, and you'll call them. And you made $250,000 over four years doing that? Something like that. I didn't track it super well. It was like $200,000, $250,000. That's insane. That is insane. Yeah, yeah. So it threw me off the path of wanting to be an accountant for sure. And then when I got out of school, I played poker for like six more months or something and then quit, but I had nothing to do. So I started playing video games and then I was designing websites to just pay some bills.
Starting point is 00:05:33 And then I got into the marketing thing because I was like, well, once you sell a website, it's sold. So you make your 1500 bucks or two grand or whatever the hell I was charging at that time. So then I got into SEO stuff and I built the gardening blog at the same time because I was getting into gardening. I was doing it with my brother over a summer. But I was like, I need like a digital business card. I need a little calling card. So I built the gardening blog as a way to show the website design clients like,
Starting point is 00:05:58 hey, look, look what I can build. What year was that? That would have been 2013. Dude, I think in the same year, I did the same thing as you. Were you reading like smart passive income? Yeah, yeah. Okay. So, Pat, for those young listeners, I think you and I were on the young side,
Starting point is 00:06:15 probably at the time of his blog. I think you and I are the same age. I'm 34. Yeah, 36. And smart passive income. was like this guy Pat Flynn, who's still quite popular. He was one of the early bloggers
Starting point is 00:06:27 of making money on the internet. And he had a, what did he do? He wrote like a blog in an e-book on how to like get your building like green or lead certified or something like that. And he was making money doing it. And he would display all of his income and revenue online,
Starting point is 00:06:44 which at the time was like insane. And then he did like a food truck, a food truck, like a book on how to create a food truck or something like that. And he was like, I'm going to rank high on search and I'm going to blog throughout the way. So you guys can see how I did do it. I read that. And I created a poison, poison ivy, like how to treat poison ivy website at the same time.
Starting point is 00:07:06 And it was making like $1,000 a day. And I was like copying everything he was doing. And I have a feeling that you were reading that same blog at the same time. I have an even more cringe story around that time. So I was reading Pat like crazy. You just call me cringe. I mean, we all. That first site that you make, it's always kind of weird.
Starting point is 00:07:25 Like, come on, Poison Ivy site. It's so stupid. I have one worse than that for sure. So Pat, to me, was like a god back in the day because he's a half Filipino, half white guy living in San Diego building businesses. Are you half Filipino? I'm half Filipino half white. And we've become a good friend now, which is awesome.
Starting point is 00:07:41 But when I read it, I was like, okay, cool. I see the blueprint. Pat's got this, like, green certification thing. And so my choice was to, I created a website called Cocoa Bucco, And so I go cocauttercream.org. And I start reviewing every cocoa butter cream that's on Amazon. And I was using an alias and like, come on. Like I was like early 20s doing some dumb stuff. And I was Susie Michaels, a mother of two who was like reviewing how all these different cocoa butter worked on me. And then I, you know, you hook into Amazon affiliates. And I remember,
Starting point is 00:08:17 it took me like a month. I made like two bucks on that site. And I was like, oh my God, I made money in a way that's not like someone just paying me, you know? And it kind of blew my mind. Like the whole saying, like, everyone remembers your first dollar in the internet. I wish it wasn't cocoa butter cream, but. And then that's when you got into like internet marketing. But didn't you do like a Kendrick Lamar website too? Yeah, that was, that was, man, that was probably like a couple years later. So the story on that one is my cousin. I was living my cousin at the time. He was like a biomechanical engineer. And I'm over here doing all this weird stuff on the internet, like building sites and stuff. And he's kind of getting intrigued by it. And a
Starting point is 00:08:52 friend hits me up and he was like, hey, I have all these blogs that I need to sell. I just need some money. I have Kendrick Lamar, Rita Orra, schoolboy Q, like all these sort of up and coming artists. And this would have been like 2014, I think, because you want to buy one? And I go, I'm kind of doing my own thing, but maybe I'll have my cousin buy it and we'll do it together. So my cousin, Johnny actually puts up the money for it. And I think I had like 10% equity in this Kendrick Lamar website. And we start like scouring the internet. And we actually, become like the biggest source of Kendrick Lamar news on the internet before he drops his first album, Good Kid, Mad City. And so no one really knows Kendrick. Like, the only super fans know him.
Starting point is 00:09:32 And there was a point where, like, I think Kendrick's manager even called my cousin was like, I like, like, we really appreciate what you're doing for Kendrick. Like you put his name out there, da, da, da, da, da. And the way we monetized that is we were just selling shirts, just like print on demand shirts. I think we probably made like 30 or 40 grand doing that. And then after the album dropped and he blew up all of a sudden he like trademarked his name and we had to shut the site down and stuff but that was another like weirdo internet thing that we did what was the main thing though was it the gardening like gardening websites the whole time no the the gardening thing didn't really start until for real like it was a hobby that I love doing and I've I've done it every every year of my life since
Starting point is 00:10:11 2013 but it was just like a hobby blog until 2016 when I went full time on it and hobby blog in that you were actually like into gardening and you're like, I'm just going to, I'm just going to create content around. But did you see any numbers where you're like, this could be a big company or was it straight joy? No, no, I mean, it was a mix, right? Like, I was gardening for fun and then I would just document whatever I was doing and like make a YouTube video or make a blog post.
Starting point is 00:10:40 And I would try to monetize it. Like I'd make some ad revenue or I'd make some affiliate revenue. But I never thought it could be huge. Like, I remember talking about it. kind of friends that were all kind of doing the same thing at the time. And I was like, man, if this thing could just make two grand a month or if it could make five grand a month, like, that'd be amazing, that I wouldn't have to go get a job. Because I think my mind didn't understand the scale that any, any business could really become at that point in time.
Starting point is 00:11:05 So, yeah, it took a while for me to realize the potential of it. And then you, you kind of like had this. It's a, it's not like a cliche to most people, but for the media world, it's like a cliche at this point. But at the time, when you were doing it, it was like content and commerce was actually like a pretty innovative idea, which is I'm going to build this huge blog. And instead of just making money on advertising, I'm going to sell my own products, which is like, it sounds silly that I'm calling that innovative. But like when you were getting going, that was a thing. I mean, I had a blog and I was like, I don't think that you can like sell your own products. I'd rather just stick to like what I
Starting point is 00:11:43 know, which is content and ads. And I was like totally against selling stuff. But you made the right decision for sure. It's a significantly better business. It's a way better business. And yeah, the brief story on that is 2016, I go full time on Epic gardening. I was at Scribe Media or Book in a Box. It was called before that. It was like a second employee there. So I quit that, go full time on Epic. It was just a blog and YouTube channel. Did you have any revenue when you quit? Yeah, I was making $450 a month. I have this spreadsheet of like what it was making at the time. So at that time, I actually thought I was going to farm, like legit farm. in people's front yards and, like, aggregate all their square footage and, like, sell that
Starting point is 00:12:24 produce to restaurants and stuff like that. I mean, that sounds like really hard. Yeah, it's a really hard way to make a small-ish amount of money, which there's people that do it and I actually respect it a lot, but it's cool. It's cool. Yeah. It's just not scale. So I go, okay, how about I just make this blog make a couple grand a month?
Starting point is 00:12:44 Because it was making $450. So if I could make $4.50, I could probably make two. If I can make $2, I can make $5. And so I started growing it. And I think that year, the blog made 17 grand total, about six months of the year. And then the next year, it was 72,000 revenue. And this is all media because I haven't done any product yet, right? 2018, it was 225.
Starting point is 00:13:07 And then 2019 is where I had that realization that you mentioned, where I was like, wait, why am I just making money from ads and like brand sponsorships? Like, what do the brands want for me when they do a brand deal? they want access to your audience. Well, I have complete access to my own audience. So why don't I just be the brand selling to my own, my own audience? And so what I did is I realized like, well, every piece of content I put out is basically a search for validating demand for whatever is in that content.
Starting point is 00:13:36 And so in all these photos I'm putting out because at this point, I'm gardening in Hillcrest, San Diego in like a very small front yard in a pretty urban part of downtown San Diego. And so I'm like filming my content there. little raised beds in the front yard, which is just a way to grow plants and they're made out of metal. And every time I took a photo of these, everyone's like, what are those? What are those things in the photo? Like, where'd you get those? So I was like, I actually don't know. Like a brand just sent these to me and I put them in the front yard. And so I started emailing this company. They're from Australia. I emailed them like maybe once or twice a quarter for like a year
Starting point is 00:14:10 saying like, hey, can I get these? Can I just like somehow get these to America and sell them? And they're like, no, no, we already have somewhere we're working with. with, like, we don't need to do that. And then the beginning of 2019, they emailed back and said, like, hey, are you still interested in carrying our products? We, like a distributor just isn't working with us anymore. I'm like, yeah, sure, let's do it. And I think I probably had like 70, 80 grand in the business bank account at that point in time. All right. So it's like, it's like promising. You're not rolling in it yet, but it's media. So it's mostly profit. Yeah, it's mostly profit. And it's a small business with with nearly zero employees. So to me, I'm like, I'm making
Starting point is 00:14:47 like a like a mid-level doctor's salary out of this business now, you know? So I'm, I'm chilling. I'm gardening. I'm liking my life. So I hit these guys up and they're like, yeah, sure, like, here's how it works. And I'm like, holy shit, I don't know how buying product works. Because I'm used to media. And so much like the sort of cringe early days, the way I tried to do it was sort of, new. Like I was like, okay, how do I buy the product? And they're like, well, you have to pay us, you know, here's all these different like shipping terms. So I bought a 20-foot container. of these raised beds for, I think, $35,000, which was like half the money that I had. And I go, okay, well, what happens when they get to America?
Starting point is 00:15:27 Like, what are I supposed to do? Like, well, you got to receive it at the port, and then that container has to, like, go somewhere, and then you have to unpack it, and then you have to ship it. And I'm like, okay, cool, like, thanks for that information. So what I tried to do is I tried to rent a storage facility out of a Costco. And, like, just one of the ones that you, like, go to if you're going to move, for a year, you know, and you put all your furniture in there. So I tried to do that.
Starting point is 00:15:51 And I was, like, trying to figure out how to get it for the port to the storage facility. And then I was trying to look up like, well, how do you get internet in the storage facility so you can, so I can print the labels. Oh, and you were going to literally mail these things out yourself. Because I didn't know anything about commerce. I didn't know you could, like, send it to a 3PL or you could send your warehouse. How many, like, units of stuff did you have? I think it was 550 beds at that time.
Starting point is 00:16:15 So like that's a ton, but it's like, all right, I'm just going to go to the post office four times a week and I'll just, I'll figure it out. I mean, that's a lot of work, but I guess it's kind of reasonable. I thought it was reasonable. And the reason why I was trying to do it like that is because when I, when I ordered it and they packed the container in Australia, I was like, okay, cool guys. Like to my audience, I was like, hey, you guys asked where these things were from. I figured it out. I put up a really crappy Shopify store. And I was like, here they are.
Starting point is 00:16:43 and then I sold them out in like four or five days. Oh, no. While they were still getting to America. So I knew it was working, right? And so then what I did is I used that money to buy another container. And then that was on the way. And then that sold out. And then I was like, oh my God, like I think there's something really going on here.
Starting point is 00:16:59 So what was your revenue in 19, the year you started selling stuff? So 19 was like 550 and half of it was the product. So in the year one, like immediately half was product. So I was like, oh my God, I think what I've been building this whole, whole time is the top of a business and not the bottom of it. Like, I thought media was the whole thing. It was like, oh, actually media is right here. And it monetizes, but the bottom is actually where the business lies. And that's like the weird, innovative idea. I remember, so like my friend Nathan Berry has this awesome blog post called like billion dollar blogs. And it's like basically the story of a handful of people
Starting point is 00:17:37 who started out blogging and then built companies around the blogs. And the most famous example is probably Glossier. I think that's what it's called Glossier. It's the women's makeup brand that started as Emily Weiss, I think her name is. She had like a fashion blog. And then she was like, oh, this selling stuff is way better than selling ads. It became a billion dollar company. And he has a few more examples of that. And that's when I first read about that idea. But I still thought this is way too intimidating and like too challenging. And particularly for me at the time, I ran a business website. And I was like, I can't, what am I going to possibly? possibly sell.
Starting point is 00:18:14 Yeah, like what product? Yeah. So like it didn't really make sense for me. But even still, I was like, this is too intimidating, but you were living it and doing it, which is pretty cool. Yeah. I mean, frankly, like, it was quite intimidating to me, but I just was too either dumb or smart to like realize that and just went ahead and did it.
Starting point is 00:18:30 But anyways, like to wrap that up, like, I ended up talking to a friend of mine who was in commerce and he's like, what the hell are you doing? Dude, just get like a 3PL and get a freight forwarder and send the container to there, hook the Shopify to there and then they'll ship it all out for you. And that's what I ended up doing. And so that that was kind of the genesis of selling products at Epic Gardening. And didn't you grow that to like $7 million in revenue with like four people? Yeah. So yeah. I mean, I think 2020 would have been 2.8 in revenue. So almost a six-xing year on year. And then 2021 was 7.3, 7.4 or so. And most of it was product at that point in time.
Starting point is 00:19:08 And that would have been on a team of me, my garden assistant, my actual assistant. My actual assistant, a video editor and a writer. And that was it. That's all we had. On 7.3 in revenue, what could your profit be? Oh, man. It was probably like 50% or something like that. So you're rolling in it. Yeah, yeah. Well, because the thing about it is if you run it like that, and it was with $0 or paid spent, right? And so I have no acquisition cost. My acquisition cost is equal to my media, because that's the only way I was getting the word out, but my media is not a cost. It's a profit driver. And so it's that term negative cac. Like I had negative cac on the business. Why raised money then? I know you raised, I think, $17 million. Why? Because like if you,
Starting point is 00:19:54 the cool thing about booge driving a company is you could do whatever the hell you want. Yeah. And there's like freedom in that. And that's frankly my favorite part about business is like the freedom of like you're creating your own empire. You can do whatever the hell you want. If you want to grow it, you can. If you don't want to grow it, you don't have to. You get all the money. You don't have to answer to anyone. I assume at this point you own, you still own 100% of the company. At least if I'm you, I'm not giving equity to my employees because it's like, I've been doing this by myself for a long time. I'll rather just pay you a high salary. Why even take $17 million? Yeah, I wrestled with it for a long time. Like maybe that deal took
Starting point is 00:20:32 like six months to close, I would say. And at least for the Turner Group, it's not some massive deal for them. Like, that's not, that's not a ton of money for them. It's, it was huge amount for me. Though the logic ended up being, I was like, do I know what I'm going to do in the next couple years? Like, do I understand the complexity of the business I had built? Because that's a really lean team to be at 7.3 with like a commerce business shipping product. Yeah, there's like a bunch of redundancy issues like at that, like anything north of five million. It's like, all right, we've got something here. We've got a seed of something working here. It potentially could be huge. like I should have some I should actually like shift to being a proper CEO and like with being a proper
Starting point is 00:21:13 CEO is like hiring extra employees even if like you know like at that point it's like with with the size that you were everyone was working 110 percent and at that point it's you kind of like almost purposely become a slightly more inefficient because you're like if I get 70 percent of effort from 10 people that's better than 110 percent effort of five people and I'll have some redundancy so people can like chill a little bit or someone gets sick or quits, like, there's actually like some proper CEO work you have to do at that stage, I would think. Oh, yeah. Oh, yeah, totally. I mean, and the operational side, like the hiring, et cetera side, like, I had no clue because I was on a team of me and for contractors. Like, I didn't,
Starting point is 00:21:50 I didn't really have hiring experience. And then on the commerce side, it's not like we got to 7.3 selling like an online course, which would be a lot simpler to fulfill. Like, there's, there's inventory planning. There's like sales tax nexus that you hit in all these different states that you have to file for. So there was a lot of complexity I was like staring down the barrel of that I knew that I didn't know about. I was at least smart enough to know I didn't know what was coming. And then frankly, like that was just a crazy period in the market. Like 2021 was probably still the last best time to do any kind of raising. And and then at the same time, I was like, look, I'm already ahead in my space. Like no one, no creator in gardening is doing what I'm doing.
Starting point is 00:22:31 And so why don't I just make sure that I stay ahead and partner with people who actually understand how these media to commerce businesses are built? And that's what ended up making me do the deal. Were you able to take any money off the table or did the 17 go straight to the balance sheet? I was able to take some off, which was great. Yeah, that's like life changing, right? Yeah, it was life changing. And then like, I had bought a warehouse to start fulfilling. Because eventually, like, I moved off the 3PL. I was like, you know what? I'm paying these guys like 30, 40K a month and fulfillment fees, why don't I just start a separate company buy a warehouse and then become my own tenant and then build equity in the real estate side? And so when we raised, I actually didn't
Starting point is 00:23:12 that warehouse didn't go with it. And so I had the warehouse too. So like the way the whole personal financial math worked out, I was like, the way I live, I'm good now. And I can just like fully focus on trying to win this space. So that was another part of it. Do you have family? Yeah, I have a girlfriend. Yeah. And then a lot of my family lives in San Diego. What's it feel like to be, I don't know if you were single at the time or not, but what's it feel like to be a young guy and you're like, I'm good. I'm good for potentially forever. Yeah, I mean, it's kind of underwhelming, I guess. I don't know. Was it like that for you? I don't know. For me, I had already made quite a bit of money running up through 2021, just sort of solo.
Starting point is 00:23:53 And so it was a huge change, but it wasn't like, you know, $1 million to $200 million net worth or something like that. the way I live, I just don't need it, I guess. And so all it did was eliminate worry about, like, I don't know what if something medical goes wrong or I couldn't even figure out if I wanted to buy anything for a while. I didn't buy anything like fancy to celebrate or whatever. Not having money is the period of my life where I didn't have money was more stressful than the period of my life where I did have breathing room. That I completely agree with.
Starting point is 00:24:29 That I always think like it mitigates all your downsides, but it doesn't, at least I haven't found that it makes you some massively happier person. Yeah. Yeah, yeah, yeah. But you remember that study where it was like $70,000 a year? Right. That's bullshit. That is bullshit.
Starting point is 00:24:47 That I agree is bullshit. Why do you agree that that's bullshit? Okay. So first of all, I think inflation adjusted, isn't it like $160K now or something like that? Yeah. Even I think that numbers might be bullshit. to 160 grand in one of the top five cities, shockingly, doesn't go very far. Doesn't go far.
Starting point is 00:25:05 Yeah, I think that's bullshit because the things, let's say you're making like 200 a year, you can get, like, you can have someone come and clean the house or you can have like meal support or these sorts of things that help you free your time up from things you like genuinely don't like to do. There's things like I love to do that, of course, I could pay for. Like, obviously I grow my own food and I like cook meals and and bake my own bread and stuff like that. I don't have to do that. But like I don't clean my house anymore. Right. And so like things like that I think give me I don't know if like positive joy would
Starting point is 00:25:38 be the way I would phrase it though. It's just like I don't have to do an annoying thing is the way I think about it. Yeah. It's like you remember that book like the five languages of love and it's like, oh, your girlfriend's like an active service woman. So like if I do something nice for she'll feel loved. Yeah. There's like the five languages of love but for money where it's like for me, it's not nice things. But for some people it could be they love. cars. For me, it's the same thing where I've got a cleaner who comes often and I just like genuinely feel happier not having to do my laundry and clean. And so in those like small things, which frankly aren't expensive, uh, it, it, it definitely makes you happier. Like those little small
Starting point is 00:26:15 things. I learned that all from Rame. I learned that all from Rameit is, is just, he has like a surgical team on every single part of his life that he hates, uh, to do. And I was like, you know what, that's actually pretty smart. And so. And he spends big on stuff. I was with me on Saturday. He like always asked these like crazy questions where sometimes I'm just wanting to chill and have fun.
Starting point is 00:26:37 And he's like, Sam, let me ask you a question. What's your rich life? And I'm like, I don't know, man. Like, let's just drink our coffee. He's like, no, no, no. Tell me your rich life. And I'm like, okay. It's not stuff.
Starting point is 00:26:51 It's services. He goes, what would happen if you 10 extra spending on your services? And I was having coffee with him. we had the same conversation with his accent. He goes, he goes, he goes, how big would your staff be if it could be as big as you wanted it to be for your house? And I was like, I don't know. Like, I think I have like a cleaner and maybe like a cook every so often or something.
Starting point is 00:27:13 He's like, oh, man, like, what kind of cook? You know, he gets into the details. He gets into the details. He loves it. He loves it. And when he asks those questions, frankly, it does make me start thinking, A, like, maybe I should do this. And B, like, am I thinking too small?
Starting point is 00:27:25 Like, if I love something, why don't I like get? 10x more of that thing. And so it is like cool to think about. He does do a good job with that of like pressuring me to think beyond like how I'm thinking. And and, Rameet's stuff has actually been life changing for me. Same. How big is a business now? Can you say? Yeah, yeah. We're about 90-ish people. And we're hoping to hit somewhere around like 40, $45 million this year in revenue. That's insane, right? Did you ever think that and are you doing a profit profitably still now that even though you raise money yeah we're we're profitable we're profitable well the first year after i think we were not because you know we hired quite a bit ahead of
Starting point is 00:28:07 of growth because we were like way under hired with me and four contractors and then um this year this year we are you think uh how big how big do you think it's going to get in like five years i mean i think it's like a foregone conclusion to get above a hundred million uh because we have we've made a couple acquisitions we made two small ones and one large one and even just sort of growing those, I think, has a shot at getting us past 100. I don't know how much bigger than that. Why acquire something instead of building it on your own? It's really just speed.
Starting point is 00:28:39 And if you have the competency internally to do it. I mean, you studied accounting, but did you know anything about acquiring a company? Or did Chern and kind of hold your hand? So the big acquisition where we bought the seed company, that was, Churn and led a lot of the diligence on that because it's like way too complex, a 30-year-old business. There's no way I could do the diligence on that. But the two small acquisitions, I led those and they sort of just helped with the legalities of getting it all done. So the very first one was a seed tray. So like when you're gardening, you usually start seeds in like
Starting point is 00:29:14 a little tray. And a lot of these trays are made out of pretty flimsy plastic and they're just like throw away things. And so a friend of mine who was in the space on the media side of gardening, who's like an educator, he was developing these trees. trays and he hit me up and he's like, hey, can I come down to the house and just show you this new tray that I made to start seeds in? And this was early 2021. I was like, yeah, sure, come on down. He comes down. He shows me this tray. And it's like this very super sturdy, durable tray to start seeds in, which solves like some of the problems of them being flimsy. Then he had like cut all these little slits in it. There's like a big hole in the bottom, which if you're a gardener,
Starting point is 00:29:49 you know, it's like, it makes it easier to like pop the seed out and put it out in the garden. So I hold the tray and the second I hold it, because I've been gardening for like eight years now, I'm like, holy shit, this is like the best seat starting tray I've ever seen in my life, like for sure. And he's like, you can stand on it if you want to. So I'm like, I'm like, 220 pounds. So I stand on it with one foot. It doesn't budge. And I'm like, okay, like that thing's durable.
Starting point is 00:30:11 And so I go, well, what do you want to do? Like, I think this is a cool product. Do you want to like, I can put it on my Shopify store and like see if the audience wants it? And he's like, yeah, sure. What do you think? Like, we'll just split the profits 50-50. you have the audience, I have the product and let's go. So I started teasing it in like Instagram or YouTube videos.
Starting point is 00:30:29 And it's an injection molded product. So we can only make so many in a day. You have to like press the mold and like accumulate inventory. So we built up like maybe a week or two of inventory or what we thought was. And then I just put an Instagram reel out. And I was like, hey, this is the coolest tray I've ever seen. And there's a link in my bio to go grab it. And we sold it out.
Starting point is 00:30:48 Like shopify has this live analytics you can look at. It's awesome. It's like it's like it's like a. just the biggest dopamine rush when you said seeing that come in. So I remember I was screen recording just to see, just to kind of flex and record the live screen. And we sold out a couple weeks of inventory in like 25 seconds. How much revenue was that? It was like 25 or 30 grand, I think.
Starting point is 00:31:08 So now that's a, that's an entire line of products we own. It's on our shop. It's called our epic tray line. So if you go to our shop and you go to seed starting supplies, you'll, you'll see all the trays there. So over the next like, over the next like three, four weeks, We just like built up inventory, dropped it, sold it out. Built up inventory, dropped it, sold it out.
Starting point is 00:31:27 And we were just splitting the profits. And then I go to him and I was like, hey, look, not only is this working like really well, like better than I thought, but there's definitely more trays that we could make. There's like different foreign factors and different ideas and like little domes you could put on top to keep humidity in or whatever. And I was like, but I can't make them because that's what you do. And I'm like 95% of your sales. So what if you just joined Epic?
Starting point is 00:31:52 You know, we'd raise some money. I was like, you could be our product lead. Well, I can't really like buy the business based on revenue because that that is, we are your revenue, right? And so how do we structure a deal? And so the deal we came up with without getting into like crazy specifics is we basically paid him for all of the assets, like the molds themselves and the research and development time and a premium on that gave him some equity and hired him as our product lead.
Starting point is 00:32:20 And then we've built that line out to like, I think like 12 or 15 skews going D to C and wholesale now. And it's like, I think, I think we're like up 7X probably on the acquisition price as far as like revenue after the fact. And that wasn't like a big acquisition. It was sub 500,000. So to me, I'm like, that's why you would, that's why you would buy because I. Yeah. And that's a great, that's a great deal for everyone involved. Yeah, exactly. It was a total win-win. What are the other two? So the second. biggest one we did was actually a media acquisition. So that was a blog. So a friend of mine from like the old SEO days had built a gardening blog and we were hiring for a director of
Starting point is 00:33:04 editorial, like just someone to run our blog. And our blog was doing well, like maybe like eight, 10 million sessions a year. And that was monetizing off of display ads. But then hopefully like people will go through and like buy some stuff on our store too. All from search or mostly from search. Yeah, it's like mostly search. I said like 80% search. Um, And so this guy emails me and he's like, hey, look, I saw that head of editorial position. I'm working in SEO right now, but I've also been building a gardening blog on the side. It was called All AboutGuarding.com, which is now redirecting to Epic Gardening. And he's like, I'd like the job.
Starting point is 00:33:39 Like, I'd like to put my hat in the ring for the job, but I kind of have like a competing blog. So to me, I go, look, you've built that blog really fast, way faster than we're currently building ours. but you kind of can't work for us and run that blog. So what if we bought your blog and hired you to run our blog? And he goes, okay. And so what we did is we bought the blog and we migrated his blog into our blog, which was like, call them both like 10 million sessions a year, something like that. So you'd think like 10 plus 10 is 20,
Starting point is 00:34:11 but our blog from an SEO perspective was like super strong. So by migrating his into ours, our blog went to like, we've probably got like a 20, 30% premium on the traffic. So like 10 plus 10 equals 25, right? So then you're monetizing better off of the display ads there. But then we also just made more from the ads themselves. And so effectively, the acquisition financed itself by the increased revenue like month one. So that was another like sort of weird acquisition.
Starting point is 00:34:43 Can you say was that more or less than 500? It was, yeah, it was in between 500 and a million. and the way we structured that one is we paid some upfront and some over a period of time, job plus equity. And this was post-churning? This was post-chern-in. Yeah. So the way that one has ended up working out is we have a awesome leader running our blog at a higher
Starting point is 00:35:04 level than ours was before. Our traffic has over-doubled and we're monetizing at over-double the rate on the traffic. So you know, like YouTube, RPMs, right? It's the same with blogs. Like our blog RPM doubled after doing the acquisition. And so basically we just created like a cash flow that finances the thing that we bought that created the cash flow. Did you read a book about this? I mean, how did you learn about acquisitions like this?
Starting point is 00:35:29 I mean, that's a pretty good one. I just thought, I don't know. I just thought about it. I was like, if I do that, I feel like all these things will happen. And then they did. I don't know. Like my old. You're like, look, I don't make up the rules.
Starting point is 00:35:41 I just think them up and write them down. Yeah. I don't know. I just, I, I, I, well, you know how like people say like there needs to be. one core reason to do something, like an acquisition or a business move or whatever. I agree with that. But to me, the way I mentally underwrote both of those things is I was like, well, the core reason is pretty obvious. Like, I don't have a product. Now I do. Or like, I don't have the traffic in a leader. And now I do. But then I just go, how many other ways could this benefit us? And how many other ways
Starting point is 00:36:11 could it hurt us? And if the ways it could benefit us outweigh the ways it could hurt us, I go, I feel like it'll just, I feel like it'll just work then. And this probably holds true for like acquisitions that are smaller where it's maybe a less efficient market or something like that. I don't know how it would work if you have some sort of big, big deal. What was the third one? Because you're two for two. You're two for two now.
Starting point is 00:36:32 That sounds pretty good. Those ones have worked out. Yeah. Yeah. So the third one was almost like kind of a condition of doing the turn and deal in the first place because they're like, look, like this is not a big amount of money for us. but we want to do some follow-on and see if we can purchase a really awesome company in the space and help power up Epic Gardening. I was like, okay, cool. That sounds good.
Starting point is 00:36:54 Which is, I think, what they did with like meat eater and a few others where they buy, like, they buy the, or they invest in the media company. And then immediately they're like, let's go acquire a company to sell to the audience. Yeah, yeah, exactly. And so we were looking, man, we looked at so many different companies, like maybe 150, 160, different companies in the space. I was like out at a fruit tree farm in Missouri at one point in time. When you say look at 150, does that mean just like put like ideas on paper or does that mean actually contacting 150 people? Oh, it means contacting more than 150. It means like talking or like looking at a deck or inspecting in some way somewhere around 150, something like that.
Starting point is 00:37:40 I mean, that's a shit ton of work. Yeah, this is why this is why having them has been. has been helpful or having an investor on your side has been helpful because like, I'm out here running the business. And I might mention a company and they'll diligence and say like, yeah, this makes sense. This doesn't make sense. And then they'll cold email them or cold call them and be like, hey, it's who we are. I know this is out of the blue, but when this ever entertain you? And then if they say yes, and like, look, why don't you like put together some high level numbers and then send something over and we could talk about it with our team. And then you get some type of like docksen or PowerPoint or you get something. And you're like,
Starting point is 00:38:14 Yeah or nay, like it could go to the next step. Let's actually have a real discussion about this. Is that how the diligence looks like? Pretty much. Yeah. Yeah, pretty much. I remember we were looking at like the top 600 gardening apps at one point in time. And so I got like a sheet from one of the people on the investment team and they were like, yeah, here are like the seven we think make any sense whatsoever. And here's like the 593 that don't make any sense at all. So these guys are doing a lot of the work then. they're helping you. Oh, yeah.
Starting point is 00:38:44 They're pulling their weight. I think so. Yeah, absolutely. So anyway, so the seed company. This is like the big, the big acquisition. This was a company that without me knowing it, it was the first pack of seeds I had ever grown when I first started gardening. So I went into some random nursery with my brother and just picked up like a beautiful
Starting point is 00:39:02 packet of seeds, just cucumber seeds. And lo and behold, turns out to be the seed company we end up buying in the story I'm about to share. So we go out to Colorado. It's this company called Botanical Interests, and they're really well known for having high germination rates. So the seeds sprout really well when you buy them, but also the packet is just beautifully designed. What are they growing? You know, I'm a noob.
Starting point is 00:39:23 I'm a total newb when it comes to this stuff. What are they? What's the output? There's six, I think we stock about 650 varieties of vegetables, flowers, and herbs. So pretty much anything under the sun, anything that you would like reasonably want to grow. We have it. And it's a husband and wife. They've been running it for like 28 years.
Starting point is 00:39:40 They were married. I think they had divorced like a few years prior to that. And they were sort of ready to hand the business off to whoever wants to run it next. But it's like one of those like, quote, boring businesses that people talk about all the time. Who's actually going to be able to buy it? And the seed business is actually fairly complex. There's a lot that goes into it that you have to understand. And so we go out there.
Starting point is 00:40:02 I meet the guy, the husband, and he's like, hey, can I grab a selfie? Like, actually I have a friend who's like a big fan of your YouTube. it'd be amazing if I could show her that we met. And immediately I'm like, okay, maybe I've got a little edge in this process. Like maybe I'm going to be able to get this company. Or you can go either way. It could be like, you have an edge or shit. They know that we have money behind us or something like that.
Starting point is 00:40:25 Could be that too. Yeah, could be that too. But we go through the whole, like the diligence happens. We go on a tour of the place where we're talking through pricing and all this sort of stuff. And so I told my investors, I was like, they gave me all this swag. They gave me like a hat. So I go, I'm just going to wear this hat in every piece of content we make until we either win or don't win this deal. Because I know the guy watches it, right?
Starting point is 00:40:47 And I know like probably his team watches it too. So for the next like this was maybe May for the next six months, which is a great time. Like May, that's spring through summer. I'm cranking YouTube videos out. I'm cranking Instagram reels out, short form, whatever. Hats on 24-7 every single piece of content. And we go through the bidding process. says we win the deal. We were not the highest bid by like quite a bit, I would say. A material amount
Starting point is 00:41:13 for the sellers to like not have in their pocket if they went with us. And we go out to celebrate. And I go, hey, you know, I really appreciate you guys. Like it's truly an honor to be able to carry on the legacy of this company. Like this is the first seed packet I ever grew. And I'm, I'm just being very gracious because I did feel that way. And he goes, you don't know how much wearing that hat helped. And I go, I knew it. Got them. Yeah, got them. Not in like a malicious way.
Starting point is 00:41:39 Sure, sure, sure. I'm using the angle that I have, which is my- Everyone won. Everyone won. Everyone won. Did you, what were some of the red flags and, I guess, green flags or whatever it is for that deal along with a few other deals when you're looking through the financials and the business?
Starting point is 00:41:55 So the seed companies, red flags are that it basically that it is a seed company. Like, that's just a hard, it's a difficult business. Like, there's a ton. Why? Because there's so many different skews? Tons of different skews. There's, you have to do like a non-GMO certification. You have to do germination testing.
Starting point is 00:42:12 You have to do pesticide testing. You're physically purchasing or contracting a grower to, to grow seeds that you then receive, test, repack, et cetera. And so there's just like a lot of, it's not like you're selling like a rug or something like that. And you can just buy rugs from China and then sell the rugs to other people in America. So that was complex. But the part that I think was really good.
Starting point is 00:42:35 green about it is it was far and away one of the best brands in the space. Like I'd loved it for 10 years. And on top of that, they were mostly a wholesale business and the online business they sort of hadn't done a whole lot with. And I was like, okay, well, we're definitely an online first company, media and product. So why don't we just plug those two together? And I think the first year after we did the deal, the online part of the business for the seed company was up like 70, 60 or 70 percent year over year without really doing much. Like all we did was move it to Shopify and tell people we own the company now, and that's pretty much it. What payback cycle were you looking for and what type of multiple do businesses like this
Starting point is 00:43:14 sell for? Man, I don't remember offhand the multiple, but I want to say it was probably 6 to 8x, somewhere like that. Income. Yeah, I think so. And how long until you could pay back the acquisition? That's a good question. I don't know.
Starting point is 00:43:31 Maybe if hopefully like, hopefully like. So, I mean, I think that's pretty fast. Yeah, it's like five. I would say like five, hopefully. Yeah. I mean, more, I mean, if you only, if they only sell for five to seven times, I would think that you'd actually grow it or get that money back significantly faster, I would think, because of kind of like the audience that you have.
Starting point is 00:43:52 The audience and then like just the opportunity because we're, we're carried in, I would say, 4,500 stores around the country. And so to me, I'm like, well, it's just seeds that are carried. Like, just our seed brands there because they're, They were a seed company, but we're making these trays that I told you about. We're making these other new products. Now we have a distribution network. So why don't we tell all those retailers, hey, look, we're like making better product that
Starting point is 00:44:15 your customers will want. Just stock our product in your store. And so that was another like big lever, I think. We're still testing it out and trying to prove if that's right or not. But we're like, yeah, why wouldn't we just offer a ton of our products now to wholesale in a network that we couldn't have built? Have you ever been to a Chip and Joanne's like Waco? Like they're like it's like I did a show for them in 2020 like you were on their show.
Starting point is 00:44:40 I filmed a show for Magnolia back then. They have, it's basically like Disneyland for like 40 year old white chicks. It's like you could like buy anything in the world that you're like for your home or living room. I went to it once and like my mother-in-law and her sisters like wanted to go and like take pictures of like, they just wanted to like anything with Chip and Joanne's name on it. They just wanted to see it. And I was like doing math around like how many. I mean, it's like a, it's like a, it's like a campus. And so they've got like food and,
Starting point is 00:45:12 uh, many, many different stores. And I was doing math and I'm like, these guys are going to be billionaires. Like this is going to be. This is going to be the greatest thing ever. And that's going to happen to you because you've got the same shtick where you're, you're in a good niche of, of, I imagine it's mostly women. And they probably have, they probably spend a lot or just for the hobby, they spend a lot. But B, you got the charisma. You got the look. Like, it's going to happen.
Starting point is 00:45:41 Do you get crazy, like, stalker messages or, like, fans who are obsessed with you? It's definitely happened. Yeah, it's definitely happened. People make fun of me on this podcast all the time. Everyone thinks I'm gay because I, like, I comment on like men all the time. Yeah. But, you know, I'm not embarrassed to say. You're a charismatic good-looking dude.
Starting point is 00:46:01 I imagine you've got a lot of fans. Back as you, dude. So everyone thinks I'm gay too, actually. Just because I'm a guy, I think it's because I'm a younger guy in gardening and gardening is seen as a more feminine hobby. People just think I'm a gay guy, which is just an interesting phenomenon to experience on the internet all the time. But yeah, no, I mean, I would say it happens for sure.
Starting point is 00:46:26 I've done the whole, like, delete all your info from the internet. internet process, but it's kind of hard. It's never good enough. It's never good enough. Especially when you film at your home, right? Like my set is my outdoors. And so I can't like not show the street, et cetera, because it's just in the shot.
Starting point is 00:46:43 There's nothing I can really do about it. Dude, I've had times where like I took a picture of my house and I didn't think you could see it. And then like the next couple days, I'll get gifts sent to my home. And like, people will find it on like street view. And I'm like, oh shit. And like, I'm not a famous person. I'm a mildly popular person in a.
Starting point is 00:46:59 small subset of the internet. And so I can't imagine if you're like real famous or if I'm like you and my videos get millions and millions of views. Yeah. Yeah. I mean, look, it hasn't been as bad as I think like legitimate celebrity type people. But I've definitely had like I had an experience earlier this year where this woman, we're all in the backyard because that's where we film most of the time.
Starting point is 00:47:19 But there's a garden in the front yard too. And I have security cameras on now that record like locally to my house. So I can pull up footage of whatever I want. And this woman like comes up the front door. knocks on it, says, you-hoo, and then, like, looks in the house and then goes out into the front gate, walks, opens it, like, kind of messes around with some plants, tries to walk around the backyard. And my assistant was in the backyard.
Starting point is 00:47:41 She's, like, coming around the back to the front. So they kind of, like, butted heads. And my assistant just freaked out. She's like, who is this woman? And this woman saw nothing wrong with what she was doing. She was like, oh, yeah, I just wanted to see if you guys were filming, like, wanted to come say hi. And we're like, we don't know who you are.
Starting point is 00:47:56 And she, like, there's nothing we could have said to her that would have made her understand her behavior was like completely out of the norm. And so every so often, it's like the law of large numbers, man. Like if you have an audience of many millions, all you need is 0.01% and that's still like 14 people, you know, that'll come mess with you. You were telling Ari before about something that I wanted to ask you about. And this is something that I've been crazy interested in. It's a business, I don't really know much about other than listening to like two or three podcasts and reading a couple articles, but the licensing of fruits or vegetables or different type of seeds. So, like, I was reading about the history of honey crisp apples. And I believe it was started in either, I think it was
Starting point is 00:48:40 Minnesota, like University of Minnesota. What they did was, I think they like took two plants and they bred them, however that people even do that. I don't even know how you do that. But it took like many decades because I guess it takes a year to get a new plant or I guess it takes like 10 years to get an apple tree in the first place or five years something like that and then you screw up a bunch and so it ultimately will take many years sometimes decades to get like a good apple and then they come up with a really cute name like honey crisp or like I think I had one the other day that was called like a cotton candy apple like you like brand it with some like cute name and then you license it out to other other farmers and you build this massive.
Starting point is 00:49:21 business that has this moat that will take 30 years to disrupt. Is that how it works? Am I, do I have that right? That's pretty much right. That's pretty much right. So we're going to go into like garden nerd territory for a sec just so I could explain how it works. So when you're making a new tree, it's really difficult. Like you mentioned, like actually when you're making new varieties of most plants, it's super painful to get the variety that you actually want. Like I met a guy at a farm once. he'd been working on a potato for like 20 years. And what was his goal outcome for that potato? So the goal outcome, potatoes are grown from what are called seed potatoes,
Starting point is 00:49:59 which is basically just a potato that you throw in the ground. So you don't plant like a little seed. You could just throw a potato on the ground. So this guy was trying to make a potato that you could grow from an actual potato seat. Because when a potato is in the ground, it throws, like leaves up. And it actually makes a potato flower, which produces a potato berry. And that berry has seeds in it. And if you plant those seeds, the problem is,
Starting point is 00:50:20 that you don't get the potato that you planted. So his outcome was like a more efficient way for a farmer. It wasn't necessarily a certain taste. Yeah, it was, it wasn't, I mean, it definitely was a taste, but you're right. Like, the idea was instead of buying a ton of potatoes and planting them by hand, you could just plant a bunch of seeds. That took him 20 years, right? Did he get his out?
Starting point is 00:50:41 Did he do it? He got it. Yeah, it's called the Clancy potato. We actually sell it on our store. It's an awesome potato. Did he get wealthy from it? I hope so. I didn't ask, but I hope so.
Starting point is 00:50:49 I think he did it under a seed company, so probably they got wealthy. I'm not sure. But either way, he's interesting guy. So with fruit trees, though, it's kind of the same thing where, like, you have to keep developing tons and tons of trees and then figure out, let's say, okay, this is the apple out of the hundreds that I grew out that I actually like. That's my next honey crisp, right? And what you then do is you have to graft.
Starting point is 00:51:17 You have to take a piece of that tree and put it on. on what's called the root stock of an apple. So like the roots and below because you can't use the seed of that because it'll be a different apple and it will take a long time. So let's say you get this magical new honey crisp. What you do is you take a bunch of those little branches off and you put them on other apple rootstock and then grow those out. And then those are genetic clones of that new honey crisp and then you do that again and
Starting point is 00:51:43 you do that again. And so that's how. And is each time one year or how long does it take to grow a tree? it's probably like it would really depend on that type of fruit but it's probably it I'll say this it'll shorten from growing from seed by like 70, 80 percent. It's like way faster than growing it from seed. Not only that, you have to do it that way because you won't get the same genetic apple. And so what guys like the honey crisp guy you mentioned are there's a guy named Floyd Zager who's sort of known as like the godfather of stone fruit, which is like peaches, nectarines,
Starting point is 00:52:16 all those types of trees, what they do is they have tens of thousands, I think, of trees that they're cross-pollinating, growing out, grafting, tasting, testing, and then when maybe 0.1% of those actually become a variety, they now have a patent on that because they've developed that what's called a cultivar. They have that cultivar. And then they can license that out for other people that put into production. They take like a licensing fee on all those. So you're right. Like once they actually create the next Honeycrisp or the next like killer pee, they can make a cash flow off of that thing for like, who knows how long until the next one comes around. I'm looking at this guy Floyd. So he's 94 years old. It looks like he's still doing it.
Starting point is 00:52:57 I think he passed away like a couple years ago. But he's like a total legend in the space. Oh, yeah, you're right. He passed away. But it looked like based off the photos up until like when he passed away, it looks like he was still planting or involved. Did he build a big, his name of his company was Zager's genetics? Is that right? Yeah, Zager genetics. And then what, what, there's a nursery called Dave Wilson Nursery, which I think they sell the most fruit trees in the U.S. They use a lot of Zager's stuff.
Starting point is 00:53:25 And so they'll, they'll be the people who grow out a lot of Floyd Zager's actual trees. So it's a crazy model because you're right. Like, good luck competing. You have to spend like 20 years to even get started. Does it make, does it make, is it like a good business or is it something that looks awesome, but day to day, it's quite challenging? I mean, I don't think it's the easiest business. You have to know a lot about plant botany and genetics and all that.
Starting point is 00:53:49 But the people who like this type of stuff, there's nothing you could pay them to make them stop doing it. So they might as well have a business based on it, you know? Yeah, my parents are in the agriculture industry. So my father, his first business was a fruit stand. He started as a stock boy in like the produce section of a grocery store. Then he opened up a fruit stand. And then he created a produce brokerage, which is like basically you. have relationships with farmers in Idaho or
Starting point is 00:54:18 Bakersfield, California, and you buy, let's say, $500,000 of onions and then you go and find a trucker to pick it up and then you sell that $500,000 of onions to Walmart for $500,000, $50,000. And you make like 10 grand of profit or something like that off organizing that deal. And you have to sell, at this point, he's sold over $100 million of onions over the course of 20 years, but the margins are like 3%. Or like like you know, it'll be basically him by himself selling 20 million a year worth of produce and like you make, I don't know what you make, but like 300,000 dollars a year. So good living. But like you've got to sell a shit ton of product in order because the the margins are so small. And so I've grown up talking to some of these farmers. And it's it's it's more of a vocation than anything because it's just what
Starting point is 00:55:14 they know. They've been born and raised doing that. And it's like, I am a farmer no matter what. And it's not like maybe traditional businesses where it's like, I see an opportunity. I'm going to do this. It's like, no, this is just what I was bred to be. That's what I've noticed in our space. Because there's a lot of like smaller product companies or small seed companies, etc. Like, no one's, no one's trying to get super rich doing it. Like even even me like back in the earlier days, I was like, I just, I'm very happy making that 250 that I made gross revenue and pulling out whatever I made. It just so happened that I also like business.
Starting point is 00:55:51 And so they combined really well. Can I, we'll wrap up here in a second, but I want to ask you a quick question about diet. I'm a little, I recently moved to a new place just mostly because it was across the street from a farmer's market. And I've been obsessed with the idea of buying produce and meat that only comes with. within like a 20 or 50 mile radius of where I am. Because like even if you buy food at Whole Foods, I still think like Whole Foods is supposed to be like some type of standard,
Starting point is 00:56:24 which I don't think it is the standard anymore. But for a long time, it was like that was the standard of healthy eating. But I still feel crappy after I eat that because I don't, you know, like I don't even know what organic actually means. And I don't actually bind to the height necessarily that that makes, that is the right way to do things. are you eating all of your own food and do you think that makes you feel different than grocery
Starting point is 00:56:48 store food? I think for sure it does because I don't know that I believe, you know that book Blue Zones. Remember that one that came out? Dude, I think that that book is awesome, but I think it's bullshit. I think a good part of it is bullshit. You know why it's bullshit. So here, well, I'll tell the audience.
Starting point is 00:57:07 I did a little research on it. It's like what they all have in common is that. uh like in osaka japan or uh like they lie about their age and so like they noticed that like wow this in this town there's a shit ton of people born on january first like what's going on and turns out a lot of them lie about their age i guess so they get social security at a certain time or something like that oh wow and so there was a lot uh like the the the although maybe there was some bit of truth in there the commonality between the five blue zones is that they have a huge amount of like age fraud. I also saw something about, can you imagine lying to be older.
Starting point is 00:57:46 I saw something about like it also maps to when we started accurately tracking birth certificates. Like a lot of these people are old enough that they're from before when we did that. And so how can you really know how old they are? The thing I do think that's the nicer way to put it what I maybe said. Yeah, yeah, yeah. Well, I think the thing that is somewhat true there is like it does seem to just make logical sense that the fresher food you eat, the best. better off you'll be. And so to me, I go, well, it doesn't get fresher than out of my own backyard, right? Like, we just had an amazing carrot salad we made yesterday. I've even grown my own wheat to make my own sourdough bread, which is definitely extreme. Like, I don't think that's practical.
Starting point is 00:58:25 But yeah, I mean, I think you do feel better. And I think the best, the next best thing to growing your own food would be going to like a farmer's market. As long as you know, like, the farmer is actually growing things the way that they say they are. Because now there's like farmers market fraud. Because down here in San Diego, people will drive up from Mexico. with like monocropped food and just pretend like it's a farmer's market. What questions do I have to ask them? You would have to ask like, well, where is your farm? Which they could definitely lie about.
Starting point is 00:58:52 Show me pictures. Yeah, yeah, they should have pictures of it. And you could ask like, you know, do you spray pesticide herbicide, fungicide? If so, like which ones? You don't even have to know what their answers mean. But if they can't fire the answers off quickly, that's your signal that they kind of don't know what they're talking about. What do you do for me?
Starting point is 00:59:11 meat I tend to just buy at I'll go to like a whole foods or there's like a local fish market called point loba seafoods down here in san diego i'll try to go to and sometimes so i'm trying to get like some friends to do that like quarter cow thing with me yeah so far so far no one's down so if you're out there all around me i've been trying to do that as well uh you need like a huge garage fridge which is how you know you made it by having a garage fridge to like store all this meat uh but I've been doing it too. Have you seen, um, uh, it's called, uh, it's called Coop. But if you Google like, Coop.
Starting point is 00:59:47 Oh, yeah. Yeah. Yeah, yeah. We should have them on our podcast. AJ. Smart Farm. Yeah. AJ's a good buddy of mine.
Starting point is 00:59:52 AJ's awesome. Um, what's his URL? I want to give him a shout out. Coop. Uh, farm. Coop. So coop is like, it's like they, like the tagline that I saw an article was like, it's like the Tesla for a chicken coop. And it's, uh, so coop.
Starting point is 01:00:07 It's like a smart chicken coop. And it looks pretty cool. I think I might get one. I think it'd be awesome to have your own chickens because that's like a pretty low maintenance way to just kind of get into the habit or get a hobby. The other thing that I've done for years is beekeeping. So I've raised my own bees in order to get honey, which is like an awesome hobby. And beekeeping is a cool thing because it requires like not much maintenance at all.
Starting point is 01:00:37 And from a business perspective, you remember that flow hive or whatever that went viral and Kickstarter and it raised like $20 million. I do think that beekeeping like the supplies could actually be a legitimately good business. And you can create like a lifestyle brand around it because the content around that is like inherently quite viral. Like I used to create these like just videos of me like scraping off the honey or the what's it called? The honeycomb.
Starting point is 01:01:10 The honey from the comb. Yeah, like scraping the comb off of my my trays or whatever that's in the hive. I don't actually know anything about it, even though I've had bees for years. But that's how little you have to know about this in order to successfully do it. I would like scrape off the comb
Starting point is 01:01:25 and make these awesome videos and then just like give it to my friends. And they loved it. And it's like such a fun hobby. And so I'm really big on that. I think her name is like Texas Bee Works. I don't know if you've seen her stuff. on the internet, but she has this like very soft, pleasing voice.
Starting point is 01:01:41 And she'll be like, there'll be music and there'll be some crazy scenario where there's a hive. And she's like called out. And she goes, I've been called out to take this hive out of a manhole. Dude, she has a 1.6 million subs on YouTube. Oh, yeah. Yeah, she's huge. And so I always look, because I know what I did with Hepik. And I look at all these other people and I go, like, don't you realize like you could have
Starting point is 01:02:01 a thriving, beekeeping like goods company? But then, you know, the sort of paradox of the whole creator world is that most creators just don't want to do that. And that's why they don't do it. Dude, she was on Joe Rogan. I'm looking at it now. Erica Thompson. She was on Joe Rogan. She goes, I did my first podcast.
Starting point is 01:02:20 And it's Joe Rogan. It's Joe Rogan. She goes, I did my first podcast. Link is in the bio. Thank you so much Joe Rogan and team. This was such a wonderful experience for me and my bees. Damn. That's a flex right there.
Starting point is 01:02:31 That's a flex. Awesome. This is a gem. This woman, she's got it. Yeah, man, beekeeping is an interesting hobby. You should try it out. It requires no work, and I'm pretty sure it makes your plants way better. I notice that whenever I get bees, you start seeing all different types of flowers in the backyard.
Starting point is 01:02:50 That's the last thing I haven't done. Like, I've got the chickens. I've got it all at the pond. I don't have bees yet, so I might have to get some bees. Dude, it costs like $200 to start. Like my hives are from Amazon for $200. bucks and then you go on Craigslist and you find like a bee delivery person. The lady that I used was this like beautiful like Eastern European woman. She shows up in her Lexus. She pops out
Starting point is 01:03:14 with an hive. She's not wearing any mask. She's got like a fancy watch on and like beautiful blonde hair and nice clothes. And she just goes like, you know, I've got your bees. And I was like, yes, ma'am, please come put them over here. And I paid her $200 for the bees and the $200 for the hive that I got on Amazon. And that's all you, that's all I needed. And it was pretty old. I recently moved, but up until recently, yeah, I had them on the, I had them in San Francisco and I had them in Texas. But in San Francisco, I had them at my small little house. I had a backyard. And then I also had them on the roof of my office in downtown San Francisco. And I had about 10,000 bees. And you wouldn't even, you could, your hive could be like 30 feet away and you wouldn't even
Starting point is 01:03:54 know that it's there. Yeah. It's like a pretty self-contained thing. It's like an awesome hobby. I've got a spot for my hive that I have the perfect spot in my backyard for my hive. Yeah, and like I think I, like, I don't even know what I'm talking about and I have them. And like I got I got stung. I've been stung like twice. Like it's not like that big of a deal. Like it's like people think it's a very intimidating, unapproachable hobby. But I got into it because I like made a list of like I was like, I need a hobby that doesn't require a ton of work.
Starting point is 01:04:21 It can't cost a ton of money because if it costs a ton of money, I'm going to break rule number three, which is I can't turn it into a business to make money. And so like I like, and I was like, what's a good hobby? And then I saw a bird speed documentary. And I was like, that's a good hobby. Let's do it. And AJ's a buddy of mine. And he got me into dekeeping as well. Yeah.
Starting point is 01:04:41 Yeah, I'm excited to see how that smart coop business does. It's a really cool design. Well, thanks for doing this, dude. You're the man. You're going to be fun to watch over the next five years. This is going to be a very exciting journey. We take pride on having people on before they get like, right, the beginning of their like takeoff and even though you're already incredibly successful,
Starting point is 01:05:04 I have a feeling that this is still going to be early in your journey and, and we're going to brag about having you on early in your career. That's awesome, dude. Well, thanks for having me. Appreciate it. All right. That's the pod. I feel like I can rule the world.
Starting point is 01:05:16 I know I could be what 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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