My First Million - Selling Deodorant for $100M and How to Find Your Best Competitive Advantage with Moiz Ali

Episode Date: May 17, 2022

Shaan Puri (@ShaanVP) sits down with entrepreneur and former CEO of Native, Moiz Ali (@MoizAli), to talk about how to find the competitive advantage for your business, three common mistakes DTC brands make, investment tips and more. ----- Links: * Native * Haldirams * Manscaped * Brumate * Moiz's sell sheet tweet * Do you love MFM and want to see Sam and Shaan's smiling faces? Subscribe to our Youtube channel. * Want more insights like MFM? Check out Shaan's newsletter. ----- Show Notes: (04:20) - Starting Native in secret (13:50) - Figuring out your competitive advantage (24:00) - Common mistakes in DTC brands (35:00) - Stock tips on D2C tech companies (38:10) - Real estate investments

All right. So Moise is here. And so I guess what people don't know. So you started a couple business. People mostly know you from native. So you created native, which has the popular deodorant brand. You sold it to Procter & Gamble for reported $100 million, which I think is one of the better DTC exists because you only raised like $4 million, I want to say, less than that even? We raised $500,000, actually. Oh, my God. Okay. So you raised $500,000. And by the way, I don't know if you know I remember I was in a mastermind group with your brother and I was like and he was like in between

he already sold his company so he's kind of floating in between things it's like why do you show up to the mastermind if you don't really have a business that you're working on? So I think he was kind of like fishing and he was like you know my brother's got this interesting business and I was like I was like oh I didn't even know I didn't know him very well at the time I was like didn't know you had a brother he's like

and I was ready for this like big tech idea and he's like yeah he's like selling like this natural deodorant like and he made it sound like you're like sitting at home packing the deodorant like containers by hand. And he's like, he kind of was underplaying. He's like, it's really cool. You know, it's paraben free. I didn't know what a paraben was.

And he's like, it's aluminum free or whatever. And he's like, yeah, it's doing pretty well. And then he started to say the numbers. And I was like, whoa, that's actually like really good. And I was like, so how much is he raised? He's like, I don't know if he's like he's raised like nothing. And so that's when you got on my radar. And I feel like you operated very quietly.

You're kind of like me where when you're doing something that's you shut the hell up. And when you're not, when you're just thinking about ideas, you're like super loud to bounce them around off people. Is that your strategy? That's exactly right. In fact, we've done no PR for native until after we sold the business. I remember with all these news publications reaching out to us.

And I took one interview with, I think it was like retail dive or somebody. And they were like, we want to talk about this deodorant company because we haven't heard of that. And you know, they're like, who are you guys? What are you doing? And we sort of talked about the business. and they wrote an article. And after that, I was like, I'm never talking about the business again. When we went to go fund rate, like we talked to a few people.

We talked to Simon Equity Partners, which is basically the family office of like, you know, the Simon Property Group, which owns a bunch of malls across the United States. And we opened up our books to them and we're like, here's our business. And they're like, our job is to find businesses like you. And, you know, you're down the street from us. You're based in San Francisco. Your headquarters is three blocks away from ours.

We've never heard of this business. And we should have heard that by now. How come? And we're like, you know, we're not talking about our business. Like no one walked around with native t-shirts until after we made an exit. And then I was like, okay, now the brand can exist and we can be loud and public about it. Is that, what is that? Is that paranoia?

Is it just focus? Is it strategy? Why do it that way? Yeah. Yeah, I think it's two things. I think one is fear, which is like fear of embarrassment. Okay, my business failed. and I was super public about it

and now it crashed and everybody's going to think of me as a failure so I was like we're not going to fail publicly if we fail it will be really quietly and then two was like we failed the Indian way silently and personal shame yeah that's right

that's right no one will be able to Google me and be like okay Moizali is a failure and then the other one was things were working so well we're like okay we don't know how this is working so well or why this is working so well but we better not go around thumping our chest saying this is working really well because one, I believe it'll jinx us and I believe in

jinx. And two, other people just start copying us and doing exactly what we're doing. And like, you know, ISIL Native in November 2017, we had a competitor sell their business in December 2017, a month after us. And, you know, in 2018, 2019, 60 competitors in the natural deodorant space popped up. And every brand that didn't have a natural deodorant was like, we should create a natural deodorant. And then 60 brands were like, hey, we want to create natural deodorant as our flagship for our hero product. And so by like not thumping our chest and not talking about our business, we were able to keep the category a little bit quieter before we came out and said, hey, this is a massive category and it's really working. Right. And I appreciate that about you guys. I've

actually learned a little bit in that regard in that. I don't talk about my ecommerce business on or ever. Or I'll reference it, but I'll never say the name or the brand or whatever. Someone takes you every day. Yeah, I also have a business partner. Yeah, I have a business partner and they don't want me to talk about it. So I'm also like, okay, cool. You know, I'll honor that wish. But I kind of came up with this term because you and your brother are the same

and that normally you guys are all, the info flows one way. And this podcast is like the rare exception where I get to ask you questions. Normally, whenever I've seen your brother or you in any social setting, it's a technique I call aliboarding. And it's like waterboarding. But just with questions where you just dump someone's head into a vat of your nonstop flow of questions. And by the end, they're like, wait, so what's your name and what do you do? And you're like, by then you're like, ha, I have your P&L.

And like I have your whole family's backstory. And it's not like in an evil way. It's like genuine curiosity, I think, is what I've come to see. But it's also very effective. A, is that true? Do you believe that? Am I characterizing it right? And then B, is that like conscious or?

Did you ever like develop that as a skill or was that a choice you made or it's just natural? Yeah, I think A is it's partially right. It's more true with Solomon with my brother than it is with me. And he does that to me as well where like I'll tell him about, you know, a meeting I had or a deal that I'm looking at. And he'll be, he'll ask me ridiculous questions. He'll be like, what did the lunch? What did the founder have for lunch on Saturday three months ago? And I'm like, I didn't get into that level of detail.

You got to stop asking those types of questions. But I do think we have genuine curiosity of like what's making other businesses work and what isn't. I remember we went to the Super Bowl, you know, four years ago or something like that in Atlanta. And we were at the Super Bowl party like the night before the game. And there were these two old Dacey uncles that were there as well. And they were there because they had, they owned Marriott hotels. And Marriott had invited them to the game in like their private suite. And, you know, they were probably in their 50s.

And we asked them so many questions. I was like, you know, how much. you have to pay Marriott. And they also own, like, Hilton hotels. I was like, how much you have to pay Hilton per year? Marriott per year? Do you have debt on the building? You do? What's your debt? Like, you know, how often do you have to renovate? How much those renovations cost? How much, like, you know, what does your average occupancy look like? And they answered all these questions and they were, like, it didn't seem excited to answer them, but they didn't seem cautious. Like, they didn't seem like they were hesitant either. And at the end of all of these questions where we literally did have their

P&L, you know, we're like, okay, well, you know, they didn't ask a single question. They were just like, okay, well, great meeting you guys. And we're like, all right, I now understand the hotel business from two operators that have eight businesses around the Dallas-Fort Worth area. And they didn't want to know anything about us. Like, why were we at the Super Bowl party? How did we get here? How did we make our money?

They didn't ask a single question. So I think there is a genuine curiosity that we have that sometimes has lost on other people. That's exactly how it goes. I've seen it. And then also you had like a brunch. I saw you tweet out like, oh, inviting some DTC friends over it. Like, who wants to have a brunch of D to C people? And I was like, oh, what a nice guy.

Just speak social or whatever. I had a friend who went to your brunch and he's like, yeah, the brunch is basically boy sits at the head of the table. And he's like, all right, what's your cack? What's your row? And you were like asking a bunch of questions. And I was like, that sounds about right. And I learned this from your brother.

I was like, because I watched him on time. And I was like, first, when I talk to your brother now, I'm like, it's like a duel. Like he doesn't know this. But in my head, I'm like, I'm going to ask, whatever N number of questions you ask, N plus one will be asked back to you. I love it. Like, you know, because I will not be out questioned because I know the tech. But I started, I started watching him when he talked to other people.

And I was like, how does he get them to divulge so much information? And again, not in a bad way, but just like, what gets people in the flow of talking? I'm like, okay, so first he's genuinely curious. Like he's super engaged. He's not looking around. He's not looking at his phone. He's actually looking at them in the eye and he's asking a bunch of questions. I've noticed he does two things.

When they're saying something he likes or is like a smart thing, he gives them tons of like, you know, nodding. Yep. that makes total sense God it, love it and when they say something really stupid or weird or the humphemy makes no sense I noticed that when somebody does that to me

I'm like, but that makes I kind of start judging them a little bit and they can tell that I'm judging them and that makes them clam up whereas he'll just go he'll just laugh and be like amazing

and then he says the word amazing and then moves on and amazing really means like wow it's amazing you're so stupid or it's amazing you think that or it's amazing that you don't even know that

but like he never makes them feel bad he'll just be like amazing and then he'll just go on to the next question. And I realize that that is how he keeps the constant flow going. So I'm studying this ollyboarding technique. And I think I'm going to be pretty good at. I'm going to be like, you know, a franchisee of your question.

I love that. Yeah. First, we have to charge you per question then. But really, he's like, I think the other thing that he does really good or really well is that he's like, how do you think about something? He never asked like, you know, what's your cack? He'll be like, how do you think about growth when it comes to social ads? And like, you know, can you spend more there?

And the question is really open-ended, but he's like aiming for some, he really wants a response. And people like, you know, subconsciously get to it. And I've started asking, how do you think about that all the time now? Because it really gets people to open up and tell me about how they view their business and not just like a standard number. And I really like that question. And I've also franchised that from him. When I started my business, the EECOM one, he, I told him about it. And he had like, you know, some good questions.

And then, like, you know, the way y'all's brains work, it's just like, you know, nonstop. So I think at like two in the morning, that same night, he just sent or like, actually it was like five nights later. It was like completely unrelated. It was like five nights later, two in the morning. I get this email. It's one line from him. And he just says, he says like, with our business, I knew we just, it was, we just need to do this one thing and it would work. Like, and he explained like the competitive, like the positioning, like what we were going to do different that was going to cause it to work.

It was going to be X, but with Y difference. what's that going to be for your business? And then it was like, that sent me into like a three week spiral of being like, oh my God, I need to know this answer. That is the important question as I'm starting this business. I really do need to have like a very strong point of view

on what's going to be the one thing that we're going to do that's going to make this business work better than all the others that are out there or better than, you know, how can we compete given that we're years late to the party and whatever else? But it was such an important question. And I was like, man,

and like I ended up bringing them on as kind of like an I was like, man, this is the value of an advisor is not the answer, but the question. The question that's going to make you, like, think about your business in a way or, like, reveal a shortcoming in your own thinking that you then get to go fill in that gap for yourself. Yeah, I think there's a lot of truth to that. The one thing I would say is that, like, you know, I've started an e-commerce business. And if someone asked me that about native, when I launched the business, I'd say, I've got no idea. We're aluminum free.

There are a bunch of aluminum pre-de-over is right now. We're selling online. is that better? Is that better than selling in store? I've got no clue. And so I think those questions are really helpful, but I think the fear that some of those questions can cause in terms of people being like, I need to figure out this answer before I can do X or Y, before I can launch my product, before I can start spending marketing dollars. Like, you can figure out that answer well after your business has launched. And I think for native, that really changed. Like, you know, we were an aluminum-free D-over and selling it on the internet. And I was like,

that's going to be our competitive advantage. And then it became a little bit of like sense. you know, like fragrances. We have a strategy of launching new fragrances frequently, and those fragrances are different, and people are going to pantry load and buy a bunch of deodorants. So it's not just buying one until you run out, but I've got seven, because this is going to be your fragrance rather than your perfume or cologne.

And then it was like different marketing ideas and bundling products and launching new categories. Like there are very few brands that it can expand from deodorant to body wash to toothpaste. Like, you know, Old Spice could never make a toothpaste. We're like, we're going to, create a brand that can do all of those, and it stands for better for you ingredients rather than one single thing. And I think that question, the answer to that question evolved and change,

and I think that question is great, and people should think about that in the back of their minds, but it shouldn't prevent them from actually taking the first step to launching their business. Totally. Totally agree. Also about the progressive, like, iteration of that question of the answer, but also, I also learned what a good answer to that is. A good answer is not, we're doing this magical thing that nobody's doing because usually that just doesn't exist, like realistically. Like that's probably a signal that it's a bad idea, not that it's a great idea. And also not that like we are going to jump through these 14 really hard to jump through hoops. Like I'm going to crack.

I'm going to be viral all the time. It's like, oh, God. Like that seems like a bad strategy to back. Instead, it was like, actually there's a category that people want. And what we're going to do is like people don't, don't like this one thing about the main competitor. we're going to do that one thing. Like it's just common sense, but we're going to do that one thing differently.

And like, I'm just going to obsess over Facebook ads in a way that they're not. Like, or just in a way that will work. Like Facebook ads are just working for businesses like these. So I'm going to do Facebook ads. It's like almost the stupider the answer,

the better. But like the clearer of the answer, the better too. Like do you even know what you're betting on? That's like, what do you think is going to work here? And like, can you back that up as to why you think that's going to work?

But you don't want it to be a genius, like magical, like magical silver bullet solution. that like nobody has ever thought of or nobody has ever pulled off because that's usually just a sign of like weakness actually in the plan. Especially if you talk about like partnerships or collaborations where people are like,

I'm betting my future on the ability to get other people to do X, Y and Z. Like that's never going to work. I couldn't agree more. It could be, look, we're going to create a digital first brand that looks better. We're going to have a better user interface and we're going to have more, better colors and it's going to look better on your countertop like native deodorant or your bathroom shelf like native deodorant.

And that was it. Like, that was the, that's, that's an entire plan. And that's perfectly fine. And the one thing I realized. Yeah, go ahead. No, God. Okay. So, so the idea is an example of doing that.

So, you know, the, so most people who listen to this are probably not, not, not, not brown or daisies. They don't know this brand. But like, if you ever been to like an Indian grocer, which there's, you know, all around the country, there's a bunch of things, like, you know, you go by, go by, you know, sort of like the ethnic foods. There's this brand called Haldi Rom, which is basically they make. like just like this like super addictive salty little snack. It's like fried. It's like our equivalent of chips. It's like fried, salty, kind of spicy.

And you just buy this thing. It's like a trail mix basically. That's that's salty. And so it's been around forever. They do like 500 million a year in sales. They're like a juggernaut of a consumer package good brand. They're like super profitable. Don't do any like advertising.

And like they're just like they're massive. And so like I think one idea is like, Haldi-Rom, but with like packaging that's just different. Like different packaging, slightly better for you. Like, maybe it's baked and not fried. And like, that's the whole business plan. Like, I don't need to know more to start than just that. And I think that that's a plan somebody could take today and go start.

Like, okay, so then what are you going to do for this? Like, I don't know or the same as everybody else. Like you can do, I don't know or the same as everybody else for all other questions. As long as you just had that one thing, which is like, these guys do like 500 million in sales and they sell mostly through these like. Indian grocers, I'm going to do that. But with better packaging, because their packaging looks like my mom's packaging, I'm just going to make it look like my packaging, like, you know, stuff I'm used to buying.

Yeah, and I can cater to Caucasians as a result of that. Like, you know, packaging the entire world is going to understand. It's not available only at ethnic grocers. There is. That's our business model is copying their product in a better bag. Or like two thirds of Indians have diabetes. I'm just going to make mine like better for people with diabetes. And I'm just going to be like it's baked, not fried and like it's better for you because of that.

Yeah, you know the guys who started Nature Box was a company based in San Francisco that sold you snacks, like Trail Mix basically, and shipping either to your home or your office? Their original business model was, we're going to go buy this at Whole Foods, put it in different size packaging and just ship it to your house. Like, you know, what's the difference between this and Whole Foods Trail Mix? Literally not, no packaging difference, no ingredient difference. They'd literally go and buy it and, you know, ship it to your house. And that was it. And Instacart started and they're like, what are we going to do? You have a grocery list. You just email it to us and we're going to go shopping for it. Like really simple ideas that were not like, you know, groundbreaking by any stretch of imagination that built huge businesses. And you invested in Manscaped pretty early on, I think, right? Yeah, yeah. I invested in Manscaped probably three or four years ago now.

And so you invested in Manscaped and it's been one of your, I think you tweeted out, one of your best performing investments. what did they do? Like, what's their version of this? Like the stupid simple plan that, like, just makes sense and it doesn't have to be rocket science, but like a simple plan executed well. What was their version of that? Yeah, I think two things. I think one was they're like, look, we've created a product specifically for your balls.

Even though the razor that works on your face, works on your, like, you've got an electric trimmer for your face, works on your balls as well. It's not like it's different hair, possibly more coarse, but like that trimmer is going to work there. And so they're like, look, we've created an electric trimmer specifically for your balls. And like, you know, that might appeal to people who don't have electric trimmers for their face. Like, I imagine you do. It's hard to keep these beards trimmed well.

But like, you know, if you've got it for your face, you can probably use the same thing for your balls if you're comfortable with that. They're like, hey, you're using a Gillette razor blade because you're clean shave in. We've got something specific for your ball. So I think that was really smart. They're like, hey, use this product for a category that you probably aren't using it for. And then two was like branding and name. They're like, you know, they got the name. right, they got the trademark right. I think those were probably really hard for them to get,

although I'm not involved enough to know that. And like, you know, they've done a good job with like unique and differentiated branding. Like they had a barge sale up and down South Beach in Miami and they had a big billboard on it and it said, got Bush, use manscape. Like, they've done really unique things in order to get their name out there in a way that I think a lot of other direct-to-consumer businesses have failed where we're like, you know, Native would run billboards and we're like, here's an aluminum pre-deodor and please come buy it. It really didn't get your attention. These guys have done a good job of that. And like, you know, today they post it on a billboard in New York City right now. Instead of the hard emoji, it's an upside-down

hard emoji. So it looks like a, you know, a testicle stack, basically. That's really clever branding and like really clever thinking. And so they're fantastic at that. And I think what's really difficult is that stuff doesn't scale. It's not like if the guy who's, like, you know, if there's two guys thinking about this kind of stuff and they retire, you're not going to be able to hire or teach that skill to somebody else. You've got to find two rock stars that are able to pull that off otherwise. And I think that's going to be difficult for them. But so far, they're just knocking it out of the park. And you see a ton of brands, a ton of DDC brands. You're probably like, you know, one of, when somebody has a DDC company, you're probably one of the most, I don't know,

desired, like investor, advisor type dudes. Like that's your authority, right? People, people, want to do what you've done and then you've also invested in so many that now you have that portfolio and experience as well but you also see a bunch of ddc brands do stupid shit so what are some of the like kind of like give me your rant on the things you see d to see brand's doing wrong what are some of the common mistakes you see that drive you nuts because i know that like both you and your brother it's like operational like um you know operational excellence is what turns you on and operational like you know uh ignorance or whatever you know you know is what like, you know, drives you nuts.

And so give me some of the things you see DTC brands doing wrong or stupidly. Yeah. Over hiring and like spending money on dumb things. Like, you know, Native was doing probably, we were at a 50 million run rate or close to a $50 million run rate when we sold the business. And we had eight people at the time. And when I left, you know, it was certainly doing north of $100 million a year. And, you know, we probably had 30 or 30 or so people on the time. team. Like there were not that many people for a brand that was doing a lot of revenue. You know,

I've walked into offices where people have 20 people, you know, there'll be 20 people doing $2 million or $4 million in revenue. And I'm like, what are all of these human beings doing? Like, if you've got this many people here, send them to the subway and handing out free like coupon cards to people who are getting off the subway. This is too many people inside your office to be working out a $4 million a year brand. And so I think that's a real, like you're burning way too much money if you have that many people. You know, Goldman Sachs had the standard of like, we want to do one million in revenue per employee that we have. That should be something that's rather easy to do for direct consumer businesses. I sit on the board of a company called brewmate, which makes like,

like, you know, drinkware, think like, you know, like hydration kits or can coolers for slim cans. They had one employee and they were doing $30 million a year. Like only the founder, Dylan, was at the company and he was doing $30 million a year. Now he had some outsourced agencies that he was working with to help him run, to help him run Facebook ads and to help him do customer service stuff. But like he had one guy and one guy in the payroll. So you could easily flex up and down with those agencies, depending on how the business was going.

So I think hiring, overhiring is a real problem. The other thing I think is like another way to spend money poorly is like a beautiful office. I remember walking into some direct-to-consumer founders' businesses when I was running native And I was like, wow, this brand is super successful. Look at how nice this office is. They have a big, they have a logo on their, you know, on the wall right when you walk in. After we sold our business, the first time P&G came to our office because, you know, we've been doing it offsite. So it was not to tell everyone, you know, if 13 people from Procter & Gamble walk into our office with eight people, people are going to be like, hey, what's going on here?

So we kept meeting offsite. And finally, when they walked in, you know, there was a sticker on the door that said native. Like it was a sheet of paper I had written out native by with a Sharpie marker and taped it on the door and that was our office. It was like done with one penny. And they were like, is this seriously

your office? I was like, yeah, of course is our office. And they're like, this is the cheapest office I could possibly imagine and I was like, hey, we care about dollars. And so, you know, I used to be afraid of being frugal and I'd be like, wow, I'm so embarrassed. Now I'm like, it's a real badge of honor. We're running a fiscally like, you know, we're fiscally conservative

when it comes to this business and we care about dollars and they're my dollars, I don't want to spend them well. So I think that's the second thing. And I think the third thing is really poor marketing. A lot of founders, like if I ask a founder, hey, what is your KAC last month? And you don't know, that is a terrible sign. If you're doing under $40 million a year in revenue and you don't know what your KAC was last month, that's crazy. If you don't know what your KAC was yesterday, that's okay. But like, you should know what it probably should know. And like, you know, if I ask you at 10 a.m. and you don't know, that's okay. If I ask you at 2 p.m. and you still don't know where you cacos yesterday,

that's a real problem. You're just not involved in the numbers enough. Like, this is how you grow these businesses. It's paid ads or some sort of advertising spend versus a return on that investment. And if you're not familiar with those numbers, you're, you know, being grossly negligent with your business. And you used to do a bunch of like kind of like hands-on, unscailable stuff like this. So I think, you know, I don't know, to this day, but like I showed you what we do as far as, this morning we were talking and I showed you what we do as far as like every day in Excel, we handwrite.

Here's how much we spent. I love it. Here's the new customers we got. Here's the blended row ads. Here's the cack. Here's how much from email. And we write that every single day into this like spreadsheet. And I'm sure there's like more automated ways to do it, but it's not perfect.

And like the practice of doing it by hand makes you think about each of these numbers. Because you're like, why has this number always 52? And like I need to get this number to not be 52. I'm tired of writing effing 52 on this spreadsheet. Sure. Like I just, if this. If this number was 42, we would be making so much more money. Okay, that becomes my daily focus.

What are some, and I've seen you tweet out about like people going and like, like, they go to Target. They like watch the aisles themselves to see how people are buying their brand or what they're not, you know, what they're doing when they choose the brands? What are some of those unscailable things you've done yourself? Or what are your favorite kind of like, give me some scrappy stories of like stuff that, like, you did as an operator or your favorite operators have done? Sure. You know, I used to email every single customer at Native, and I was like, hey, what, you know, you bought our deodorant. Do you like it or do you not like it? If you like it, leave a review.

And if you don't like it, email me back and tell me why you don't like this. And, you know, we were doing $350,000 in revenue before we heard our first customer service rep. Like, I was looking at every single one of those emails being like, what's working here and what is it? And that's how we got our product better. we'd listen to consumer feedback. And we sent out, you know, we were doing 500, 600 orders a day, probably more than that. So we're getting a lot of customer service responses to that type of inquiry. But literally every single customer who ever purchased from us, I would wait like, you know,

five days until it was too late for you to return the product. Because if you emailed us and you're like, I hate this thing. Can I return it? I want to be like, no, we're past the return deadline. You can't do that any longer. So I literally had it scheduled for like, you know, at native you can return a product for 30 days. I had it scheduled to go out day 40 because I was like, you know, it's going to take five days in shipping. And so day 40, we would email you and be like, tell us what you like and what you don't like.

And, you know, we're going to go and try and fix these things. We once had, we invited a bunch of consumers to a location and then started grilling them with questions. Hey, you know, there were consumers that had purchased from us a bunch. They lived in San Francisco and were like, why do you like native deodorant? Why do you think it works better than other deodorants in the market? Because, you know, people would be like, it has probiotics. That's why it works better than other deodorants. And I was like, what makes you, like, it does have probiotics,

but you have no idea whether that's effective or not. But I was like, no matter what we do with our formula, we have to keep some level of probiotic in there because people think probiotic means efficacy, whether it does or not. And so those are the types of things that were really interesting and fun and, you know, non-scalable. You know, I also, you were talking about, Solomon was talking about my business and how I pack boxes.

I did pack boxes. I packed boxes until we were probably doing that 80, thousand dollars in revenue a month like you know Monday Wednesday and Friday I would go home after working put on Star Trek and start packing boxes and you know I was like okay I knew how much a box weighed I knew how much filler paper to put in there I knew how much a box weighed when like you know with deodorant without deodorant um I knew how to optimize this price I knew when we were creating custom boxes I was like I want our box to weigh one ounce and not 1.3 ounces because at 1.3 ounces it tips us over this level and at 1 ounce it doesn't I go to our contract manufacturer all the

time be like, hey, we're seeing these types of fuck-ups. What's going on here? And so I was like intimately familiar with the formula. I knew the steps to how to pour the formula, what temperature we poured out at. And like, Native was being hand-pour. We were making 20,000 units of Native at Deodorant a day, and we were hand-pouring each single bar. So there were about 100 people working in Austin, Texas, hand-pouring deodorants. And, you know, the best person could hand-pour about a thousand deodorants a day. And a new person could handpore about 75 deodorants a day. And we had to train these people to go from 75 to a couple hundred or 500. And that was really interesting as well. And so there was a, and I mean, that's not scalable. Certainly handpouring deodorants

isn't scalable. But we went from 500 units of deodorant a week to 21,000 a day, still handpour it. So it was more scalable than I thought it was going to be. And how much of that is you being a maniac versus like good strategy right so like if somebody my company was doing that I'd be like why are you doing this you need to hire somebody so you could do something higher leverage but clearly it kind of worked for you to be like a maniac and doing all the things yourself so like you know what's the line what's the right way to think about that uh yeah that's a great question I think if you're in completely divorced from customer feedback you're setting yourself up for disaster unless you've created a you know a flywheel that you know exactly how it works like you know

When Native was doing $100 million of sales a year, I probably wasn't in customer service any longer. But when it was doing $50 million in sales a year, I was probably the number one, if not the number two customer service agents. And so, like, you know, you need that feedback to understand what's working and what's not, where there are problems in my business and where they're not. And so, like, I don't know what the right line is. But divorcing yourself from customer feedback at under $25 million a year is bananas to me. You're not going to know what people love about your product and what they don't love.

And you're not going to know, like, you know, we'd have operational issues that I wasn't aware of. We'd be like, shipping is taking an extra three days when it's going to California. What's going on here? Like, is there a problem in California? Is there a problem with our shipping company? Sometimes we'd run out of things and no one would know until a customer emailed us being like, hey, I'm waiting four days. And we're like, we're out of this.

We're out of coconut and vanilla. I don't believe. And then we check our inventory and we're like, how did we run out? Like, we did we do a poor job at inventory forecasting? We weren't even aware that we ran out when we ran out. when we ran out. And so those were a couple of the ridiculous things that would happen. But like, you know, because you're intimately involved, you're able to like, you know, I understand the business at a deeper level. And I think like really being engaged, you know, what does my

shipping look like? You know, how can I make shipping faster so I can reduce costs? Is the weight of the box or the weight of the filler or the size different? There was a company that I knew that I was friends with the CEO in San Francisco, he was shipping through Amazon, and his box that he was shipping in was about a half inch too large, and it went from being extra, it went from being like a large box to a custom large box. And so his shipping rate went up like $70 a box

because of this half inch he had. And like, you know, when people discovered it or when he discovered it, he's like, I can't believe we've been shipping like this for so long. You know, if you're intimately involved, you're probably going to catch those things a little bit earlier. Right. And so let's zoom out. So you,

you've seen DDC change. You, you also have seen, you know, you also invest in the stock market. And so you've seen Shopify, Amazon, Facebook. Give me on each of those three stocks,

give me your lay of the land on like what you think has happened and where you think that those are going. Are they trending? Are they rightly priced? Are they underpriced? Sure. You know, give me,

let's do Shopify first. And then we'll do Facebook and then Amazon. Sure. Okay. And for context, I've lost millions of dollars in Shopify stock in the last six months. And I wrote this Twitter thread about it as well. And I was like, Shopify keeps their mottoes to arm the rebels. And I said they keep giving us muskets in a war that's being fought with like nuclear weapons. And you when you put out tweets like this and you basically say, hey, here's what I think you should do with your strategy. Or if I was CEO, here's what I'd be doing. Or like, as somebody who's lost millions of dollars on your stock, here's some things that I think could help. Do you ever hear back? Is it crickets? Do you get other interesting inbound? What happens after you put that out there? Because I've done that a few times, and I've gotten very interesting situations occur from my tweets like that.

What's happened for you? Definitely interesting situations. Toby, who's the CEO of Shopify respond, and he's like, these are great points. So did Harvey, who's the president. And definitely had some more interesting calls. And I'm not sure if that Twitter thread, which was a couple months ago now, you know, informed them and help them create this look-like audience system that they're rating in Shopify. That's wonderful. I don't want any credit. Just go do it so that we can go get

cheaper customers so that we can acquire customers at a cheaper rate and build better businesses. Like, you know, go build out these products and make the platform fantastic. You know, a bunch of people pay Clavio more than they pay Shopify. A bunch of people pay recharge more than they pay Shopify. Like, these are Shopify apps that provide you with a small segment of like, or a small thing compared to what Shopify enables you to do. you know, provide some of these services at cheaper costs or build in some of these services to make the platform better. Like, you know, Triple Will is doing a fantastic job at analytics.

Why doesn't Shopify build their own subscription platform instead of outsourcing it to recharge, which everybody hates and which charges a fortune? Like, what's going on there? It's been, you've been publicly traded for years. This is arming us. This is arming the rebels. And so let's shift away from D to C. Let's do other types of investing because you do real estate.

You've tried to buy pieces of sports teams. You've tried a bunch of different things. So let's just start with the big picture. So give me a pie chart percentage-wise of what do you do with your money? So you came to a bunch of money. What's in cash? What's in real estate? What's in stocks?

What are you doing percentage-wise, roughly for those? Great question. Great question. And I think the answer is I should know the answer. I know my cack from yesterday. I don't know your cack. Yeah. And this is me not knowing my cack, which is a very question.

embarrassing. Probably around 10 million in private equity, probably around 40 million or 50 million in cash, which is a lot. And not like cash, cash where I'm like literally holding in cash, but like really short-term bonds waiting for bond prices to go up. And so now I'm starting to leg into positions where I feel like interest rates are getting more exciting. And so I'll put my money there. So, you know, I've been investing in really short-term bonds that, you know, aren't really subject to much interest rate risk because they've got six-month maturities and not five-year, you know, bonds that are more subject to interest rate risk. And, you know, since interest rates have gone up over the last four months, I've started to deploy more capital

in that respect. But a lot of cash. Probably 25 million in real estate, 30 million in real estate that I'm like, you know, that I are, you know, my family owns and we're operating ourselves. And then probably another 10 million in real estate as LP somewhere, uh, here or there. Um, I don't know how much money that is. Uh, but then there's like, you know, I don't know, then there's like random and probably another 10 million in, um, startup investments. Um, so maybe more than 10 million in certain investments. Good question. Probably around 10 million in the stock market. Uh, maybe a little bit less now that Shopify and Facebook have gotten cremated.

So maybe less than that now, but I'm not exactly sure what the amount is there. And why is such a big cash mission? Is that to be conservative? Is that just, I'm so busy? I haven't figured out how I'm going to deploy all this? Yeah. Or is it like intentional? Like, no, I want to have, let's say, 50%, 40% percent, 50% in cash and kind of bonds.

It's more reactive than it is proactive. Like, I'd love to be more invested. And part of it was actually, like, you know, proactive in terms of waiting for interest rates to go up again. Because, you know, if you invested two years ago, three years ago, you've barely gotten any return on your dollar. So I was like, we can sit on cash and not be subject to so much interest rate risk. Now I'm getting more excited about that. But a lot of it is, you know, when you get to a certain scale of wealth, you hire professionals

who are like private wealth managers to help you deploy your capital in a way that's really intelligent, a way that's unique. And, you know, supposedly gives you a competitive edge because you have more capital to deploy so you're able to hire smarter people to deploy that and, you know, earn a greater return. That's the schick that they sell you. I'm not sure that schick is real at all. Like, private wealth managers have been really disappointing. Like, no one is doing anything unique in this industry. You know, if you ask two private wealth managers, what's the difference between you and this other person? They'll just shit on the other person. And you'll be like, what are you going to get me, like, what are you going to invest me in that this person isn't?

Like, what's your competitive advantage? Do you have access to deals that this person doesn't have access to? They're like, no, we're both managers. same amount of money. We've been around the same amount of time. And they're like, you know, have you heard of Elliot? I'm like, yeah, I've heard of Elliot. To the Wall Street Journal every fucking day. I'm pretty sure everyone could get me in. Like, you know, their fund is $20 billion. I'm sure anyone can get me in there. And they're like, yeah, anyone could get you in there. But we know them really well. And I'm like, okay, I don't know what that means. And so, like, I guess where I've been disappointed and where I've been lost in this world

is how do I deploy my capital in a really effective way? And, you know, every, like, you know, if I tweet something about this, I tweeted like, hey, if you've got $300,000, if you're earning $300,000 a year, it's really hard to know what to do with your money. You're not rich enough for the private wealth manager and you're too rich for the Bank of America person who sits at the retail branch. And, you know, I got a bunch of people who are like, I do this for 300,000 people who are in about $300,000 year. I didn't bet any of them. But like, they were aggressive and like, you know, these private wealth managers, if you sell a business, they just reach out to you and they're like, help us, let us manage your money and you're like, what are you

going to put me in. And literally none of them say anything unique. None of them have their own things. They're just like, we're going to invest you in this other guy's fund and every private wealth manager can get you in there. For instance, with public equities, they all tell you, go invest with parametric. They do tax loss harvesting. So you'll get an extra 0.25% to 0.5% return over the S&P 500 if you invests with parametric as opposed to doing this, as opposed to just investing in a Vanguard ETF. But they all tell you to do that. Why would like, you know, why use Goldman Sachs instead of First Republic instead of a smaller boutique fund, if you're all just going to invest with this dollars with parametric, you're all the same at that point. It's like, you know,

it's like buying an airline ticket from kayak or Expedia, but riding on American Airlines and getting the exact same seat. Ultimately, you're getting the same product. And so I haven't been smart enough and spent enough time figuring this stuff out. Gotcha. And then what about crypto? You don't do anything crypto? And is there like a strong opinion like, oh, it's all, you know, bagheasy or are you just having to do that? had time. Very little with crypto. I'm like an investor in a couple fund of funds that have made a fortune in crypto. So these funds have returned a significant amount. And it wasn't in their sort of like fund charter to go invest in crypto, but they did it anyway. And they're like, look, we're up,

you know, 10,000 percent. So you can't complain. You know, they're like, look, we turned your dollar into $10,000. You can't be a, you can't be an asshole LB. And you're like, what the fuck? You can't do this. They're like, here's $10,000. Shut the fuck out. So, you're like, You know, they can do it. Generally, I just don't understand the value yet, and so I've been hesitant to get in there. I'm not opposed to it. You know, everyone says invest five percent of your net wealth in it. I wouldn't invest five percent of my net wealth in it.

You know, it's hard because the same parts of the world are like, boys, you're not investing in crypto. What the fuck are you doing? And the Warren Buffets of the world are like, if you offered me all the crypto in the world for $20, I would not buy it. And so I guess I've just been sitting on the sidelines. I don't know if it's good or bad. But if someone has a strong opinion can convince me, please do so.

Okay, I'm going to resist the urge to do that now because people have heard of rant too many times on it. All right. So I guess let's do a little bit like, let's do a little touch on a little real estate. Then we'll do the personal stuff. So real estate, you've been deploying, but now it feels like the landscape has changed. I think you kind of have an opinion on what's changed. Give me your current take on like, what do you see and what are you doing? Yeah.

So I love a native in February 2020. And right when COVID was going to hit, like, I was like, I'm going to go to Europe. And I'm going to go to France. I'm going to try and drink all of the wine they produced in 2019 in February 2020 in France. And then COVID hit. And instead, I was stuck with my parents, like, you know, all day. And it was a very different experience that I suspected it was going to be. And so I started buying real estate.

And so from like January or from February 2020 to probably the end of, 2021. I bought about 50 or so units. Generally single family homes, some duplexes, some fourplexes. Two units in, you know, aside from those 50 units, two units in like California where they're like old apartment buildings

that are really small and renovating. And then I was an LP in a bunch of different funds. You know, everyone who bought in 2019, you look like a fucking genius. Like people are like, wow, you're such a savvy real estate investment. I started buying because I had nothing else to do. If they were going to return money, they're going to return 5%. They're returning 12, 14% now.

And that's fantastic. But I'm not sure I was very savvy about it. I haven't used leverage, which is really stupid of me. And it's really stupid today because if I borrowed a year ago, I would have gotten two and a half percent interest. I could have just invested in that 10-year bond and made money. I just haven't used leverage, in part because I'm too lazy to try and get it. And in part because I'm like, you know, I've got enough capital to deploy already.

And the returns have been fantastic. You know, I bought homes and I was underwriting for 6% returns. There are 12, 14% returns. They're crazy. I bought a 4-plex for $600,000. I thought each unit would rent out for like $800. They're each renting out for about $1,400 now. So I'm making a fortune.

People are struggling with rents. And so state governments are often stepping in and providing rents to landlords. Like, you know, we get a call of being like, hey, John can't pay his rent. We're going to cover the rent for the next 18 months. and they'll cut you a check for 18 months of rent and late fees, which is bananas. And so it's been a fantastic investment, but yeah, I am slowing down now. And do you think, where do you think this goes? Are you going to, you're slowing down, but are you slowing down because you sort of are like,

okay, I'm allocated how much I want to be allocated or you're slowing down because you're like, wait, this no longer, these prices no longer make sense? It's not even the prices don't make any sense any longer because I've, this is the one asset class where I'm like, I have a really long-term view. You know, stocks, look, I've been in Shopify, I never sold a share. Facebook I've been in. I've never sold a share. I've had them both for five years, if not longer.

Microsoft, I've been in for more than a decade. I remember buying it while I was in my admin law class in law school, and I've still held every one of those shares. So, like, you know, generally, I'm a pretty good, long-term investor. Real estate, I think of myself as, like, you know, I will never sell any unit in real estate. Like, my children will inherit this. or natural disasters will take these things into the ocean.

I'm okay with either of those, but I will not sell one under any circumstance. So I'm not really worried about prices, you know, in terms of cap rates long term, but I do think there'll be a small market correction. So I guess I've slowed down my purchasing. I'm still under contract to buy two or three units in the next couple months. But I'm not, like, before I was trying to buy, you know, a unit a week or, you know, two units a month. And now I'm sort of like, let me buy a unit a month or less just to see what happens to the market as interest rates go off. I think these prices will come down a little bit.

But I like, you know, a lot of my cash is in real estate, you know, $25, 30 million. I'm not scared. Like, you know, if the market crashes, no, nobody will be more excited than me. I will deploy all the cash I'm sitting on for this. I have no problem if that $30 million goes down to five. I will not get, like, this is the one asset class where I will not get scared. I will double triple or quadruple down as opposed to being like, oh my God, I got to sell what I've got. And that's just because you're like, this is a concrete assets. There's limited supply. There's always going to be demand. It's such a dacing mentality. You know, it's like my parents mentality of like big cash flows. It's immune to Facebook ad prices. It's immune to the stock

market. It's like generally like it's real diversification for my e-commerce and startup investments. Like these things will exist. They're generally, they're primarily in the south with the exception of a few in California and a few in Colorado. There are places where people, are moving to and not moving from. And so I'm excited about them. And yeah, so I would never, I have no desire to sell them, get emails and calls all the time, no excitement whatsoever to sell, love holding this stuff. And generates a ton of cash.

And, you know, the other way I think about it is, and this is also pretty decent mentality, is like, okay, I've got all these expenses per year and no job. I need something to make up for that, like, these expenses. Like, I don't want to dip into capital. I don't believe in, like, you know, dividends at all the money. goes down. In the balance, I'm always going up.

That's right. I'm terrified of the balance going down. And so I'm like, I need something to afford my lifestyle. And this real estate helps me afford my lifestyle. How do you think about that? I don't know if I'm just too dumb or too lazy.

But it's one of the two where I'm like, I basically picked two lanes to think about. And I was like, I don't really have the like mind chair to be able to think about like, If I go into real estate today, I'm the dumbest guy in the room. Okay, well, it doesn't take it genius to do real estate. So that's okay. I think if I put my mind to it, I could do that.

But that's now my mental cycles that are not going towards my business or the stuff I'm more interested in where I think I can have a bigger edge where I think I can be more like the top 1% rather than like the 60% tile or whatever. Sure. And so that's the first part is like, do I want to try to learn this game from scratch if I'm going to do anything direct? Or even if I'm going to invest in funds, I got to have some ability to. vet these funds a pick.

Yeah. But okay, they're all pretty safe. You can get your 5, 6%. It seems like, you know, without, it's not totally variable like that. The other thing is like in direct, I'm just like, who is going to have the time to manage all this? Like, I did one transaction buying my house that I was going to buy. I was going to live in in San Francisco.

Just the process of the dealing with the bank to get the loan and then the closing, the escrow and then the inspections. And it was like, I couldn't do anything else. I was like paralyzed from like actually doing stuff I'd love. because I was constantly having to nurse this project. And I was like, I can't imagine buying 50 units in a year or, you know, 20 units in a year. And like the amount of just transactional like logistics that I would have to go through. It's such a turnoff from like for what is the return?

Basically the same average is the stock market in a long term. Okay. Like I don't have to. Diversification is not that important to me to like do both of those things. Like the mental cycles plus the physical energy it would take to do the transactions and then manage them. and then like, you know, my tenant calls, you know, my property manager calls me about the tenant that's calling me about whatever. I don't actually even know what goes into it,

but I know it's not nothing. And right now, my tolerance is nothing for like headache. Yeah, and this isn't like, you know, someone calls you on a Monday being like my AC is broken and it's in San Antonio, Texas. You can't be like, okay, I'm going to get back to you Thursday. Like, you know, it's 110 degrees outside. You need to get that fixed in the next 12 hours. So you're right.

There is a lot of pain there. I called my manager, I rent the current place that I live in and I called him. I was like, hey, there's like a weird smell. He's like, okay, so like, where's it coming from? I don't know. It's a smell. I don't know. I can't see it.

He's like, okay. Like, what kind of smells? Like, I don't know. It's just like, it smells really bad. He's just like, okay, you got to give me something. And I was like, and it's Sunday. And like, you need to send someone here because I can't have a house with a bad smell. Like, and I'm just like, I got kids.

You know, that's the card. And I'm like, you got to send somebody now to figure out this mystery thing. And then the guy comes over. crawl space. I'm like, I don't know. It's not my house. I don't know. Go ask this guy in Arizona who owns this house who's 90 years old. Go ask him where the crawl space is of this property because it's his problem to like fix this for me. And I'm just going to be a baby about it. And then I think about what it's like to be on the other side of that. And I'm like, is that worth the like $500 like net that he's making per month on my rent? It's like probably

not for me. Definitely not. Yeah. Yeah. You're absolutely right about that. And what was in the crawl space? It was like a dead. I don't know. We never found it yet. The guy didn't get back to me and now I'm pissed. Like, we have no idea where it is. The guy, like, sealed up one hole. So he's like, maybe this will help the smell go away. That was it. I was like, okay, well, we still don't know what's causing the smell.

You just bottled it up. Like, whatever's in the wall that's dead or whatever's going on here is like, he's like, he's like, he, the guy came over and on Google Transi, he typed out. He's like, if the smell's still here tomorrow, I'll come undo the whole wall thing I just did. And I'll go find what's in there. I was like, bro, can't you just do that now? Can we not go into the wall now? Why do we got to do that on Google Translate?

That's hilarious. Yeah. A bunch of the real estate I bought is like an auction. And so when you walk, like there's very, there's no inspection. There's no financing ability. Like, you know, you bid on auction. You write, you know, you wire the money the next day. And then you open the house and you're like, what did I just get into?

And so sometimes you'll walk in, like there was one house I purchased and the guy passed away, not in the house, but like everything was still inside of his house. forks and knives, spoons, his cards were in the garage, he had a safe in there, we went to empty the entire house out before we could rent it out. And, you know, you have no idea. And, like, that was a mediocre situation because, like, you know, everything was still an okay shape.

He used to live there. There was another house I got that was in perfect shape. Like, you couldn't, like, you know, you go into the house and you, like, try and look through the blinds to find out what the condition is going to be inside. This one you couldn't see at all. It's the only house I've been to where I was like,

I couldn't see it all. And I opened up the lock, after I bought it and it's in perfect condition. There have been houses that I bought, I walk in. I'm like, fuck. I'm going to have to spend $40,000 that I didn't underwrite for, replacing the roof or changing the tile or putting in the new kitchen. And so it is a lot of like rolling the dice,

at least in the way that I purchased and sort of using, you know, the law of large numbers to be like, this is going to make sense in some point. And sometimes it does and sometimes you get screwed and, you know, you just eat the ones that got screwed. Like there have been two that I've purchased. purchased in two years ago that are still not rented because I haven't done the work to go and fix the houses to make them habitable. And that's, you know, that's a lot of capital being that was deployed and nothing's happening with right now. Yeah, you need to just like get some

YouTuber who does like, he's trying to make content about like renovating home. Be like, hey, you can use my home and like you get, you know, X percent and you get to use all the content. This is your home, sir. Go ahead and make me. I would love that. Go ahead and flip this thing. Definitely. Yeah, that'd be great. You and your brother both. do this, which is I think you treat business like a, like a, like business is your fun, like your adventure. I feel the same way. And I asked him because he gave me money and he, he was like, I'm going to advise your company.

And I was like, cool. But like, just so you know, like, why are you doing this? Like, I want you to do this. But like, as your friend, I'm like, why are you doing this? This is a waste of your time. Like, this is never going to make enough money to move the needle. Like your share of this is never going to make enough money to justify the time and energy. And like, it's not going to move the needle for you.

So like, really, this makes no sense. why are you doing this? And he goes, he says something he goes, he goes like, I am not happy unless I am like, um, entrapped in,

you know, in a business. And he's like, but as long as I get to create the, I want to live in a prison of my own making and like, as long as I get to choose, I'm good. But like,

I'm also not like, I can't be content and fulfilled unless I'm like, unless I'm locked into like a raging battle with like, some like business thing. And I was like, wow, that's crazy. but it also makes sense to me.

And you're the same way when you're like, how do I do real estate on hard mode? Like you could just LP a bunch of funds and you're like, no, I'm going to go buy stuff. I'm not just going to buy good stuff. I'm going to buy stuff at auctions and I'm going to go have to take like a two by four and break off a lock and then like walk in

and see what I got. And then like figure out how to turn this into like $1,400 a month of rent. And you're like, yes, sign me up. Whereas I'm like, that's like, that's what you do to get to your spot. You got there. and then went back to the beginning and like, I'm now going to call you,

I don't even know this analogy, but like I always heard my engineers talk about servers that run on bare metal. I don't know enough about servers to know what the fuck that means. But it was always like, what's the most like hardcore way this server can run? It's like optimized for performance.

And like just the term bare metal, like just told me everything I needed to know but what the hell they were talking about. It's like this kind of waste of time, hard mode way of doing something that does yield like the best return and like satisfaction of like, optimizing the space.

I was like squeezing the juice out of the fruit. And like to me, it's like, mo's you're like, you like to operate on bare metal. It's like you're choosing to play this game on like, you're like, how do I handwrite my UTM parameters on my ads? And then like,

how do I, you know, stock my deodorant sticks myself and answer every customer service question? And then how do I like buy real estate at a foreclosed auction with no financing and no diligence? And then like figure out how to make that work. You're bare metal. You know, there is like, first, I learned how to break into houses. Like, I learned how to pick locks because of real estate.

Like, I can walk into a house now and, like, open it up pretty much because, and, like, I carry tools with me when I'm traveling to these houses to be able to, like, open up homes so that I can go inside, which is a little bit crazy. In fact, I saw my parents, my parents are, you know, two, like an older Indian couple, obviously, that are, like, infirm and walk. You know, my mom will be like, my knee hurts. She walks with a limp. And then when she's trying to break into a house with me,

she'll turn into like Yoda where itchid you do spins. She's like, what if I climb up to the top of the ceiling and like go to, you know, Jimmy down the chimney. I think I can get us in there. And I'm like, I thought you need hurt. But now, now you're perfectly fine. You can like climb this wall and like, you know, go up the, go up into the chimney. And she's like, yeah, I got it for this.

But I think that really, I think there's a lot of, in my family, there's just a lot of interest in business. And so being an LP is a ton of fun And I'm an LP in a bunch of these Real Estate funds and I'm like Looking at the numbers and some are making good money And some aren't But like you know there's no

Sexiness to it It's a paper money like you know Bring me the sexy problems like Oh your toilet is broken What the fuck are you doing here? Why is your toilet break every day? Oh the government is going to write me a check for 18 months This is crazy The government is going to pay me late fees

The government is going to call me and be like Hey, Moise, you've got a house here. This guy can't pay his rent. We're going to pay you 18 months of future rent and the last two months and late fee for the last two months. Tell me why you're doing this. How did you get to this? Who thought this was a good idea? Does Greg Abbott think this is a good idea?

Because that's a lot of money you're going to give me. And so, you know, business is great and making money is great. But it's a lot more fun to be an active participant rather than a sidelines participant. Like, I don't want to read what's in the Wall Street Journal and be like, okay, that's great. I want to be a part of that system that's going on. There's a great analogy where this guy who's a partner in a big law firm, his name was Joe Flom.

He worked at Scaddonarps. This was back in the 80s and 90s where there were all these mergers happening. He was like 80 years old, and he slipped and fell in his bathroom, and his head was bleeding. And he walked into this board meeting because he was part of this board

that needed to fend off a hostile acquirer, and he had paper towels on his head because he was bleeding, and he was 80 years old. And people are like, what the fuck is going on? You're bleeding profusely in your 80s. I slipped in film. They're like, go to the hospital.

He's like, no, I want to be here. And they're like, what's going on? He's like, I don't care if I'm, you know, acquiring a company or fighting off an acquirer. I just want to be in the game. And nothing is going to stop me. And this guy was 80 and bleeding and had paper towels on his head. But he wanted to be in the game.

And I really respect that. Like, I want to be in the game. That's where there's a lot of fun in life. You watch basketball, right? Yeah. do you which like athlete or in any sport doesn't matter which athlete are you like I admire their like the way they do their thing is how I do my thing or how I want to do my thing yeah Tom Brady Tom Brady for like I remember he won a Super Bowl and there was a 60 minutes like interview with him at 27 he was this was not like you know seven Super Bowl this is like a second and they're like so what do you you know you're a Super Bowl champion NFL MVP what do you think and he's like is this is this all there is to life? Like, that's what he said at the end.

He's like, is this all there is? And, you know, then he retired after two weeks. He's like, I got to get back in the game. I had two weeks off. This is boring. I need to be back in the game. And he's just like an ultimate competitor. And I really admire that about him.

But I'm sorry, that was the answer to the question. That's great. Do you have five more minutes? I want to do a couple of the personal stuff. All right. So what were you going to ask about the athlete stuff, though? I didn't mean to interrupt you. No, that's what I was asking.

I just wanted to know who you admire. I can find this client info. Have you heard of HubSpot? HubSpot is a CRM platform, so it shares its data across every application. Every team can stay aligned. No out-of-sync spreadsheets or dueling databases. HubSpot, grow better. We had a little doc, I said, put down some bullet points.

I say, you don't have to explain what they mean, but give me some nuggets that we could go off. On it, you had a section of personal stuff, and you go, you have two that are really interesting to me. You go, I don't know how to spend money. What does that mean? I'm living into Airbnb's that are like five grand a month. I don't have a car. I don't have a house. I live out of a suitcase.

And like, you know, when expensive things are like nice, I'm like, can I afford, like I still do the math of being like, this seems too expensive for the value I'm getting. Even though that, like, you know, at this point, $1,000 probably has no value to me. Not like no value, but like it's not going to materially change my life. And I'm still so cautious when I'm spending $20. I don't know what the, I don't know how to get this out of my system. Do you know how to get it out of your system? I don't know how to get it out of my system.

I have no problem spending money. Okay, gotcha. Spent too much money. But, like, I've seen this. And I think, you know, the one of the main things is I see my dad. And my dad has done really well, right, like for, he's got the same immigrant story that, like, everybody has, which is you come to the country. He had, I think, $91. That was starting point, right?

So that's the before. And then, like, you know, he's made good money in his lifetime. nothing like, you know, crazy to write home about, but like, especially from a $91 starting point. Like, they're, they have, my parents have enough money to do whatever they want. They really don't need a penny pinch. But like, you know, if we go to Starbucks and it's like, you know, would you like the, he's like, can I have the small? They're like, okay, it's called tall. He's like, no, but what's a smaller than tall?

Because I feel like tall is going to be overbriced. He's like, you know, this is three dollars. Like, I can make this. It's mostly water. Like, he'll be talking to the people about it. Right. I'm just like, oh, my God. Like, not at least this.

It's embarrassing, but like, it's embarrassing in the moment because he'll just be like, let me clarify. You're saying the thing that's mostly water is $3.80. Like, hold on. Hold on. Stop the line. What's going on here? Or like, you know, he'll pack seven people into a hotel room because like, you know, we can make it work. It's like, yeah, but do we have to?

Like, we're on vacation here. Why does it have to be a struggle? And like, and so, you know, I just saw he could never get it out of his system. Like those scarcity mindset was just so like ingrained in him because and that's like, all right, I get it. Like he had no safety net. He had $91. Like every dollar counted.

And like it wasn't about spending. It was about like saving to get to build a safety net because you're in this new, you're in a foreign country. Your parents can't help you. Nobody can help you. Like, and so I get that. But I saw that like, oh, wow. You know, actually the money come.

It wasn't logical. Like once the money was there, that didn't change. The mindset didn't change. So it's like I had to separate out. there's a mindset around money, and then there's like the logical, like situation about the money. And like there's actually like they're unrelated. You would think once the logical situation changed, the mindset will change. And it's like, no, it doesn't.

So it's like an active thing. And so then I just started to like one of the reasons I ask you who you admire and you're like, I admire this guy who's got like a bloody head going into the board meeting because he wants to do business that bad. I would view that as a failure and you view that as a success. And like because I have this belief, which is you become what you admire. Like fundamentally. If you admire something, you're going to strive to it. So it makes a lot of sense to really pick and choose what you admire.

Like, I'll give you an example. A lot of people admire Elon Musk. And I think Elon Musk is obviously super incredible in a couple of ways. Like he's the greatest inventor and businessman of our time and like, you know, the greatest in Steve Jobs, I would say. But like, you know, I think he's like an Edison of our time. Great. Sure.

But he's also had, I think, like, you know, I don't know, four failed marriages. And like, that's not something I want for myself. So like, I got to be careful to admire the like the all encompassing person because I don't want the all the full result of that. Like the, you know, and so you got to like, so I got I got really specific about what I admired. And once I admired certain things, then I started to live life like those people. It's like, well, this guy's really, really happy. And like, wow, he's like pretty generous. And he's not generous based off of having this like huge amount of wealth.

He's generous because like he doesn't feel super scarce about money. feel this lack of money. And so he's like willing to give and like he's willing to give freely and he doesn't think twice about it. And then he doesn't pat himself on the back about it either. Like, oh, wow, I really admire that about him. Like I want to be more like that. And so to me, the only thing that got me to change my mindset was knowing that it's not

going to change based on how much money is in the bank. And B, like, I have to change who I admire if I'm going to like change who I become, right? Because like I will naturally start to follow those blueprints and observe people doing those things and be like, oh, downloaded that. Like, I will, I will make that happen. Like, I'll give you a little small win for me on this front. Like, I was just on vacation. I was in Hawaii last week.

And like, my parent, my dad is, like I said, like a horrible tipper. And like, so my whole life, I basically saw my mom being like, tip him and my dad being like, you don't have to. And like, you don't have to. Or like, I did. And I'm like, he handed him like a one. Like one, one was his tip. And like the absolute minimum.

him and I just saw the look in the valet guy's face or whatever like it wasn't even valet like he wouldn't do valet it's like the face of the guy who you're mandatory he's hey standing there you got to give him something the bell hop right and it's like so this time um we get to the place the bellhop takes up our bags you know to the hotel room or whatever and um i felt all those same urges of like my upbringing which was like we can just take the bags ourselves it's like yeah but like that's this guy's job and like it's not about being lazy it's like that's how this economy works. That's how this ecosystem works. If I don't like you got to feed the whole food chain, otherwise somebody's not going to eat, right? So it's like, yeah, okay, I'm going to let him do that.

Then we got to the room. It's like, we have no cash because I don't carry any dollar bills. Like I only have cards. And so I've been in this situation like five times before. And I'm not, I'm not proud of it, but like I would just be like, dude, sorry, I don't have like, I don't have anything. I don't have any cash. We just got here. I didn't bring cash. Or I would like, you know, let the guy leave it at the door. And then I'd be like, you know, not there to like tip the guy. And this time I was like, I was like, hey man, like, I'm so sorry. I don't have any cash on me.

What's your name? And I made sure I went and got him later. And it was like, again, whatever, 10 bucks. But those 10 bucks meant a lot to me. And like, yeah. Okay, that's a step in the direction of the guy who's not like has this lack mindset or scarce mindset about money and is looking to like hold on tightly to everything or like avoid paying things.

It's like, no, no, no. like, you know, make it happen. I actually had like a pretty comical series of events even on this trip where I like, my kid is two and a half, but I don't know if you know, kids fly free under two. And so I bought first class tickets because I'm trying to be a baller shot caller. But then I do the laptop.

I lie about her age to make sure she's under two. And like, I knew in the moment I was like, this feels wrong. But I was also like the logic was like, well, it's like a couple thousand bucks to buy this two-year-old kid a seat. Like, I'm like, I'm really going to do that. And then everybody told me they don't check because I'm like, I'm going to get away with it.

And I got penalized so bad for this cheapness that like it was just karma teaching me this wonderful lesson because we get to the plane and they're like, oh, you guys can't sit. Like sorry, you can't board the plan. I'm like, what do you mean? Like not only can I not board the plan. I'm first class, but I get to board first. And they were like, no, actually you have like two lap infants. because you have two little babies.

There's only like X number of masks in the top thing. So like there's three masks. there's four of you, we can't let you board this plane. We're going to have to ask to see if somebody wants to switch seats with you for you to get on this plane. And I was like, what? And I was like, nobody's going to want to switch seats with the people with the baby and like have us sit next to them.

Like, sure enough, they go on. Nobody wants to switch. I'm like, all right, we'll take, like, we'll buy another seat. Like, it's too late, sir. There are flights full. I'm like, all right, we'll go to coach. We'll move back. Like, coach is full.

And I was like, all right, what's the next flight? Like, it's tomorrow. I'm like, oh, fuck, I knew this little cheap move on my part of lying about the four months of my kids age would come back to bite me. And it did. And so then, like, we, my wife and we had this horrible flight over where like, my wife was on the last row of the plane with a baby in the middle row between two people. And like, because some guy was like, I'll give up my middle seat in the back. Like to, and now I'm sitting next to this dude. And so instead of having this awesome family experience for having this terrible one because I cheaped out.

And so I just started to pay attention to all the ways that saving money. was costing me money and costing me like joy, rather than like how much it's saving me and like what I what I keep. And so then who do you admire that? Is it somebody who has made that mind? Like who is that? Yeah, like my trainer. So I can talk about them a lot.

It's probably like I roll at this point. But like the happiest person I know and not happy in like a cheesy way. Like, but in a damn, I've never seen this dude not in a good mood. And like I've seen him stuck in traffic for three hours. I've been late, super fucking late and inconsiderate. it and like, you know, like, but he greets me like he's, he's just been having a party. He's like, dude, where you've been? Because his life is a traveling party.

And so I saw that and I was like, man, on every conventional metric that like I was raised, like you came from Brown fan, it's like he's, I think he's like 41, 40 years old. He's not married. That's a like household disaster if you're like a brown person. It's like, you know, we're having interventions, you know, if that happens. he does well for himself as a personal trainer, but he's not like the most successful guy, I know. Like I'm surrounded by people with more quote unquote success than him

in terms of financial success. You know, so like, you know, just in terms of like the kind of conventional metrics, the things I thought were most important. You know, his scoreboard, it wasn't like, wow, this guy, I admire him because he's successful. It's like he's successful at the game of life because this dude's never in a bad mood.

And like, because of that, everybody wants to be around him. He's the most loved guy I know. Because of that, he has these magical experiences. It's like, you go to a coffee shop with this guy and like, you're going to have like something, if you just hang out with him for three hours, like something awesome is going to happen. Because his mood, he's going to make a joke and then that person's going to say this thing. And then they're going to take us to the back room and hook us up because they just liked our vibe. And like, I tell the story.

Like he goes to the DMV. And like, you know, he goes to the DMV. And like, DMV is like the classic like worst place on earth to be. And like he went in being like, nah, dude. He looked up the DMV on Yelp and had two stars. and he's like, I'm going to have a five-star experience because I'm going to be a five-star DMV participant, you know, and just watch what happened.

So he, like, walked in with a little pep in his step. He's smiling and he makes a joke to somebody, and he realized, and somebody's like, oh, I'll just help you out over here. And everybody else is grumbling in line. Like, why is this guy getting to go up front? She's like, don't mind them. And then she flirts with him and, like, she hooks,

and he's supposed to take the test. And she's like, you know what? Like, it's fine. You've been driving for a long time. And she just gives him the thing. And he's like, walks out. he's like, damn, if I could do it at the DMV, I could do it anywhere, right? Like, that's awesome.

He's like, I wasn't always this way. He's like, dude, I was depressed for a while. My dad died and I used to be bitter about him for X, Y, Z. And he's like, he's like, you know, I used to be the guy. Like, I didn't want to come out from the covers because I just wasn't looking forward to my day. Like, you know, if you looked at me, you just see like a blanket and two eyeballs because I just didn't want to get out of bed.

And he's not saying this as a motivational talk because he doesn't, he's not a motivational speaker. It's just like, he's my personal trainer. I just happened to hear these stories. So when I heard this, I was like, okay, this dude is winning. The reason I want this money, this family, all these things, because I want to feel good. This dude just feels good on auto, like he feels good no matter what situation you put him in. So that's like an invincibility, right?

Like he is unconditionally feeling good. So that's the guy I started to admire. And then I started to pattern myself after things that he was, any time I noticed he did something different than me or my friends or the people around me. I like took special note of that and I would lean into trying that out as a new experience to see. you know, is that part of what makes him him? That's really interesting and a great story. And, you know, for a long, I feel like everyone I've admired, I've just been, it's almost like sex

where I'm just automatically attracted to that person and it's not even conscious. Like I just get an erection when, you know, I hear about Tom Brady because I'm like, wow, that guy is awesome and really good at what he does. And he's this ultimate competitor and wants to win. And I never realized, I never even thought that you could choose who you admire.

I just assumed it was like your sexuality where you're like, are you attracted to this person? It comes from here and not here. Yeah, actually, maybe that is true. I think there's some truth to what you said. But like in the same way that like we don't all go try to marry porn stars. Like there's a certain point where you're like, what really matters to what do I actually want?

And it's like, well, there's this initial thing, this physical attraction, which is important. But then like, actually I now. know, it feels really good if somebody who's caring and thoughtful and like, whatever, like, I can trust. And the things that are like slightly below the surface that like, you're like, oh, I actually, now that I know about it, now that I felt it, I'm like, those are super important. I just, you know, it's just less primal than like the physical attraction, I guess.

Yeah. Yeah, that's a great point. I'm not done a good job of admiring people that I know really well. I've only known, like, you know, I admire people that I just hear about their competitiveness and their instinct to win. And I'm going to think about that and try to do a better job of that. Your brother's like this. Your brother's another person I chose to like admire because I was like he's also,

your brother's also like in a good mood pretty much all the time. I've never seen him like I've never seen him either like in low energy. Like I've never seen him just kind of like on autopilot the switches off. And I've also like even when he's like, like I've never seen him defeated either. So, you know, those are, so, so, you know, what I've seen him, I'm like, he walks into, like, when your brother walks into the room, like he subconsciously goes, all right. And it's like, he's expecting like the parade to start. And I'm like, bro, this is just a bakery. But he's like, all right, what are you doing? What are you eating? Oh, is I good? All right. And like, it's not that he's, he's not like, Mr. Smooth socially, but his like will to have a good time or like to have the experience like in its fullest. actually like imposes its will on everybody else. Everybody has to participate at that point because they're like, uh,

yeah, it's a croissant. You want to try it? Oh, you know what? You should actually do this. And it's like he forces the good time out of the average because he just literally walks in.

He's like, all right, what are we doing? Or he'll be like, let's win. And I'm like, let's win what. We're not even like playing anything.

Like, okay, I have to like rise to your level or I have to stop being friends with you because, uh, that's just the way you're approaching things. And like either that's just, I'm out. or I got to figure out how to be in.

And being in kind of means like being on and not just being like ho-hum about that life, you know? Yeah. Yeah. I've chosen to stop being friends with him as a result of that. No, in reality, I actually invited him as well. And I know we're, you know, we were at, we were in Texas for like Mother's Day. It was my father's birthday two weeks ago. And someone had gone to Costco.

I think my sister had gone to Costco and bought like, you know, some cases of water and like watermelon. And I got home and she's like, hey, Moy's, can you get this stuff out of the car? It's like heavy and like, you know, I don't want to do it. And I was like, why do you ask Solomon? He's been at home all day. And she's like, he never does anything. Like, he will not lift a finger for this kind of stuff. And I was like, this is why this guy's always in a good mood.

No one asks in anything that like, you know, is not enjoyable because they know he's already said no to it so often that it's not, like, you know, it's not something that it's asked or expected of any longer. That's why he's always in a good mood. But it is a lot of fun to hang out with him. Like I, you know, I've hung out with him often enough to see both sides of that when he's like excited and like the energy comes. And, you know, it certainly lifts me up. And times where he's like more analytical and he's like, let's look into this and does this make sense? Or more like, you know, I remember one time when Tiny Coe was struggling, I was in San Francisco

and he's like, we have a new strategy of the whole business where instead of creating our own iPhone games, we're going to license the intellectual property of others. What do you think of this? This is like a bet the company move. And, you know, I had no idea. I was a lawyer in 22 and didn't know anything. But I was like, I could get the real sense of like, it's not just pure optimism. There is a sense of reality there.

And that also like helped me understand him a lot more too. Yeah. He said something about you that I thought was a baller line that I've reused many times, which was, I don't even know if this is the real thing, but this is now the legend of it, which was when you went to the deodorant business, somebody was like, hey, Moy's like, do you even know anything about? the deodorant or like, about deodorant. And you were like,

no, I know nothing about deodorant, but in six months, I'm going to know everything there is to know about deodorant. And like, that's enough for me to go. Like, I can start this. I don't need to like think of myself

as some expert. I've used that so many times. Is that a true? Yeah, that's definitely true. I remember who it was too, actually. It was a husband of one of my close friends who's like, you don't know anything. I was like,

I use it and I'll be an expert in six months. Give me six months. And like, that's really, that's an amazing attitude to have about anything. It's like, yeah, of course. I don't know anything.

And like, give me six months. I can be pretty, like, I can be pretty much an expert at anything if you give me six months of obsession. And I think it's true with everyone. Sorry, go ahead.

Your brother had some that were like this because I started writing down these traits. I was like, there's a, what I call is like, you know, sometimes you have a speaker system. You turn it up to level 10 and you're like, oh, that's pretty loud.

It's bumping. And then you're like, get in someone's car and it's almost like they got, they go, theirs goes to 14. You're like, God, I can't hear anything. I'm deaf out of two.

out of my right ear because like, why is your shit so loud? But you're like, okay, at least I know what loud is now. I have experienced loud. Even if I don't ever want my speaker to be this intense, like, I now know the level of intensity that exists because I just thought 10 was the max before. And like, that's what your brother did. Like, we invested in a company together. And they were kind of fucking up.

And I was like, dude, can you, I've been trying to help these guys. Can you help me help them? Like, he's like, yeah, great. Let's like, all right, let's win. And he gets on the call. He does his clap. And he's like, and they're, you know, they're kind of defeated. And he's like, okay.

So let's raise all this money. You're trying to raise money. Let's raise the money. Like, let's look at the deck. And they, like, put out the deck. And it was like awful. And he's like, okay, so this is bad. Um, but let's fix it.

Like, okay, so he, he rattled off. He's like, slide three. And he was like super detailed. Right. It's not just like general rah, right. He's like, sorry three, that chart. It makes me think this. You need to flip the numbers to be like,

visualize it this way, like this example here on Google images. And he did that for like this super detailed thing right away. And I was like, whoa. And then he was, like, all right, they're like, wow, thank you so much. This feedback's been so helpful. He's like, great. How long do you think it'll take you to do this, like to make these changes?

And they're like, I don't know, I'm going to work on it today. Like, you know, I know it's super important. So I'm going to work on it today. He's like, great. It's noon now. Let's talk at five. And then he's like, send me a standing calendar invite for 5 p.m. every day for the next seven days until this deck is amazing.

And he's like, let's just keep doing this, right? Like you said it was super helpful, right? So let's just keep doing this. And I was like, dude, I wouldn't have had the balls to tell any company I invested in like, let's meet again in three hours. And it wasn't like forced. Like even now when I'm saying it, it's not coming out the same way where it was like, great, let's do this.

And like, let's just shorten the time span, right? Like, let's just cut all the fluff. Okay. So you'll make these changes. It'll take a couple hours. Let's meet again. And I was like, I've never done two meetings with the same person in one day. So then I was like, oh, shit.

I just found out my knob wasn't even at 10. It was at 7. And like, this is what 12 feels like. And we did it. every day for five days straight until the deck was amazing. We would meet twice a day with these people. By the end of it, they hated us. But like the deck was so much, like the whole pitch was like the whole business was

different basically by the end. Because it's like usually when a pitch is bad, it's like actually the business is kind of bad. And so once I saw that, I was like, whoa, the Ollie brothers, they function at like a different, like they have a different level 12 that like, I like to see. And I'm sharing this on the pod because there's people out there who all the people around them, they've never seen what 12 looks like. And I think you guys do this. And that's like my favorite thing about you guys. That's awesome. I'm glad that worked out. And yeah, he like he has this insane

ability to get the most out of people and like without them feeling like it's an ex, like without him forcing it upon you. Like you would do this when I was running native and he'd be like, how can you make this deal around better than dub and secret? And I'm like, this guy's an $8 billion dollar R&D budget. I've got 80 bucks. I can't do this. And he's like, here are five things that you can do that, like, you know, and he'll just, even though the like three of those things will be outrageous, he'll be like, go and find

a new ingredient that will work. And I'm like, what am I supposed to, you know, dig and find a new element in the periodic table of elements? But like, two of those things will open up my mind in a way to be like, you know what? I'm not trying. I'm not focusing on the right problem here. And I got to stop thinking about retention and customer service and all this other stuff that matters, but will matter later on more.

Right now, this is my problem and forget everything else. And it's really humbling to be around that. Like, whenever I'm around him, I'm always more jazzed about business and my business. And, like, you know, I think we've seen enough where we understand what the problems are right away. Like, I'm in some of these board meetings and I'm like, why are we talking about, like, you know, I was in a board meeting a couple weeks ago. All we did was talk about fundraising. And I'm like, this is a waste of my time and your time.

Either you're going to get this check or you're not going to get this check from this one guy. stop begging him, like move on. Why don't we talk about the business and see, hey, what's working and what's not? Make a better business and the dollars will follow. Stop wasting time here. And that's what, like, so much of this is experience and I had no idea that it would be experienced.

And I think about this all the time. I remember when I was at P&G, my boss who ran deodorants quit. And I was like, oh, he's quitting. I hope he does better. And I didn't realize all of the things that would happen to me that, you know, now we're super clear. Like he had made all these.

promises about keeping Native independent and amazing, you know, not, not like forcing his will upon the company. And he had protected me from P&G. The next guy never made any of those promises. And so he didn't really feel like he had to do any of those things. And I completely respect that. But I didn't even understand what was going to happen when the guy told me he was quitting. And now I'm like, okay, when, you know, headcount changes, this is what's going to happen. A new sheriff is going to come into town. He's going to bring in his own minions to work in the places that he likes and you either fall into line or fall out, like, you know, leave the group. And I didn't understand that. And so much of this is experience. And once you go

through those, go through these things, it's super helpful. And, you know, he's had, he's had so much more experience than I have. And he's been, he's a little bit older than me. And so he's had it earlier than I have. And so he's been this great sounding board for this kind of stuff. You, uh, you tweeted something out. That was great. You were like, here's my, um, my project status, like, like, uh, here's like my, my, my cell sheet I used for all my real estate deals. And it was just like, you know, um, I don't remember what it was exactly, but it was like sent reply received waiting for paperwork um follow up needed and then there was one that was just like i'm unsure i don't know what the hell's going like i don't know what the fuck i don't know what's

going on i don't know where it's at like i don't know why it's not moving and i was like that's the status that i've needed in every project i've ever done because my i always have you know a tracker for anything i'm doing i'm like all right it's either like i sent it i'm waiting for reply i got the reply. Now I need to like reply to them. I need to analyze it. I need to sign. I need to wire the money. I need to do whatever. But like so often after like 24 hours, every, whatever status it was in, it's now, I don't know what's holding it back from just finishing now. And I think that's what you guys do really well, which is actually any initiative in any project. It's like, all right, we're trying to, you know, like get more profitable. It's like, well, we have this big plan and we're

doing it. And then like, surely, but surely like a month. And it's like, what happened to that whole profitability thing? Are we doing it? are we not like and it's like yeah everything has slipped into i'm unsure what the fuck's going on and i need this like piercing clarity back and so a i think that was an amazing little tidbit in there of like i need that i need that status because most things are actually in that that that bucket yeah and i need to get them the hell out of that bucket but i have to name it that to like acknowledge what the heck was going on yeah the second is uh another example of the relentlessness thing uh level 12 level 14 on the volume scale like i showed your brother this deal that i was in fact i wanted to invest in

and he was like, oh, this is like, looks great. Let's like, let's do it. And I was like, okay, cool. And he's like, then every day he would text me, like, what's going on with that deal? And I was like, oh, yeah, like, no change. Like, I emailed the guy. He said he's just, he said he's finalizing stuff. He'll get back to me by Friday.

It's like, Tuesday. So Wednesday, he's like, you know, what's up with the deal? And I'm like, I think it's still the Friday thing. I haven't emailed him again. You think I should? He's like, yeah, let's email him again and tell him we love this and we want to be involved. And I was like, oh, is that like a thing people do? like that's just let's kind of fluff him up.

He's like, yeah, let's just keep it hot. And I was like, okay, cool. Then Wednesday, Thursday, he's like, I just feel like we need to do something. He's like eventually got to the point where he's like, what's the guy's bank? Let's just wire him a million dollars. And I was like, we haven't signed anything. He's like, well, once we hire him the money, he's not going to wire it back. So like, we're going to secure our allocation in this deal.

Just like, let's just send him a million dollars. And then he'll kind of be forced to like finalize things with us rather than keep us in this like limbo stage. And maybe in the end, he'll say, hey, I can't. do the full amount. You can only do a quarter of the amount because I got all this other investor interest because we know that's what's going on here. And again, I was like, whoa, didn't know that's an option of like, you can just wire the guy of the money. I guess that kind of makes sense. And like, these are very, very valuable little tidbits of like to add like another example somebody gave us. They were like, it was like, what's your open rate on your push notifications

for your app? I was like, oh, it's like 30%. I think it's pretty good. I think that's really good. The industry average, like eight, we're at 20. I was patting myself at the bag. I was feeling happy. And he's like, what do you think the theoretical max is? I was like, what? He's like, what do you think like theory? Okay, he's like, it's not literally 100.

You're not going to get 100% of people because some people have uninstalled your app and they have notifications off. Like, what do you think is like, and I was like, I don't know what you mean. He's like, I think I could get 50% of people to open a push notification. Let me just like see. So he sent a push for his app. And his app was like, it was like a social app like you post photos. And he just sent a push notification.

that said, your Uber is arriving outside. Like, please, like open this to meet it at the door. Like, whatever. He,

like, sent the thing that was like, your Uber is arriving with your package. Swipe to, like open it up. And he saw, like,

55% of people opened that thing. He's like, okay, that's like, the juiciest. I have to know what's in this push. And he's like,

that's now the max. He's like, now we know. So actually, our 20% is not on 100. It's on like 55%. And so everything we do is from here. And I remember just thinking,

wow, some people in Silicon Valley are like maniacs. Like they will push the boundaries in ways that I just really haven't thought of. And every time I saw someone break like an invisible wall that I had just had up, I'm like, oh, fuck. The game is so much more interesting than I realized. And like these people play without these walls. Oh, this is awesome. Like, what else can I do? It's so refreshing to see that kind of stuff when you're like, I don't know why I thought this wall existed.

And now that it doesn't, it makes so much sense that it doesn't exist. Like just break through some, it required some genius to break through it. And now that he's done it, it seems so obvious. Whenever Solomon and I look at like deals, like, if our investments are like, you know, raising a new round, we're always like, we want to either buy the business. I want to buy the whole business, run the business, or sell my shares, all of my shares. I want some action.

So I can't, look, these are the three options. I'll buy the whole thing. I'll run the business. You quit or take all my shares and get out of here. but I don't want nothing. I can't do nothing here. And it's a lot of fun to, like, it's a lot of fun to be involved and have that action.

But, you know, it makes it so that you admire a certain group of people, certainly. Yeah, exactly. And by the way, this is a good example. I admire that Uber push notification. Some people, like, how unethical and weird. And, like, you know, why would you do that? And, like, you know, if I told that, and I have done this many times, like, I've told my designer, hey, let's try this.

And he looks at me like I'm Bernie Madoff saying, let's take all their money and run away. Like, you know, they think I'm evil when I'm actually just running an experiment. To me, this is like an awesome experiment. And it's because I admire people who did some of these different growth hacky things that are like just unusual thought experiments. And I'm like, oh, the way you think is how I want to think. But not everybody wants that or even thinks it's good. Like they think it's bad, which is like, but knowing that is also where you. you figure out your lane.

You're like, oh, that's my lane. These things I think are easy and fun and good. Other people think are hard, boring, or, like, are like evil. And I'm like, oh, okay, cool. I now know what differentiates me versus anybody else. There was this one great story when I was a native. We had these end caps for Target, like basically, like shelving that was going to sit at the end of an aisle.

And they come in filled with all the deodorant. Like, you know, we ship them. And all they have to do is take the box off and it's filled. And so we sent them to Target and nobody could find them. Like, you know, there were a bunch of targets that were like, we don't have this. And so we're like, okay, what should we do? And so some P&G person was like, okay, what we have to do is we need to call up the P&G target team in Minneapolis. They're going to call up Target.

Target's going to call their distribution facility. And then we're going to go all the way back around and we'll find out where they are because we've already shipped them. And so someone on our team was like, this doesn't make any sense. This is 15 phone calls. This is what you guys ordinarily do. And they're like, this is the only way to do it. So we Googled Target Distribution Facility in, like, New England, found their phone number, randomly cold called them, and we're like, hey, we work in Native.

I think you've got a bunch of these N caps. A bunch of stores don't have it. We shipped it to you. Do you know where they are? And they're like, give us 20 minutes to look in the facility. They called us back and they're like, yeah, we got them. We're going to ship them out in the next truck. And that's how we solve the problem.

And like, you know, to the PNGers, it had never occurred to directly call the facility and to Google for that number. they're like, we have to make 15 phone calls and place secretary on the way back. And like, you know, their mind was blown. And for us, we're like, this is the most obvious thing to do, call the person where the problem lies. And it's crazy to see where those walls are. And it's so amazing to break through them and be like, this is the way things should be done moving forward. Can I give you one of those as well when I was, when we got like Twitch, Twitch is an Amazon own company.

So it had like the Twitch bureaucracy plus the Amazon bureaucracy. Like there's layers and, you know, and it wasn't all bad, but there was certain things you'd run into it's like this pocket it's like oh no i'm stuck in molasses what is that where did i step that like got me stuck and one of them was for a period of time i believe there was something with the performance marketing where it's like so how much should we spending on like you know getting like installs and they're like uh you know this amount like cool like what's the cost like well we don't really have the tracking i'm like we don't have tracking that's like you know the basic they're like well we don't want to install the facebook pixel because amazon doesn't really necessarily want

like we have to get approval before Facebook because when Facebook pixels in your app, they have your data. They're kind of a competitor to Twitch and to Amazon. So like, you know, there's some sensitivity. You have to get that done. Like,

so we just spend. We don't know any, we don't know the, we don't have the pixel installed. Like you can, I don't even know you can run an ad without the pixel. And they're like, yeah.

And I was like, how long is it like, yeah, it's been on legal's desk for like a year. And I was like, oh my God. And so I was like, oh, wow. So it was like, we can. And so my job was,

at that time, I was like, oh dude we're getting our ass kicked in Brazil and like nobody in the company is even paying attention like we need to we need to like win in Brazil and like what happened we used to be number one and we're slipping because like mobile gaming took off and we don't do mobile gaming so it's like we need to win and and so we built a scraper first to like see how fast the competitors were growing because nobody in the company would do anything unless you had a case for how like much how big the market was so I was like well look at the competitors like yeah but like we don't know and I'm like

all right well we'll build a scraper which is like startups do this this all time, but in a big company, it wasn't like super, super kosher to do that. But I was like, whatever, we'll do it until they tell us to stop. And the second thing was, I was like, oh, we don't have this pixel so we can't, like, run these ads. So I was talking, I just went on a phone call with this guy who was the number one streamer in Brazil that we had just, like, paid a bunch of money to, like, come onto our platform. And I was like, how would you get a bunch of people to download our app?

If I can't do Facebook, I can't do marketing, like paid ads. And he was like, he's like, oh, easy boss. And he's saying, the translator's like, he's saying, oh, it's easy boss. Now, here's what you need to do. He's like, give me 10 iPhones. I was like, what? And he's like, buy me 10 iPhones. I was like, what for?

I, you know, like, I don't know how to do that. He's like, I'm going to give away iPhones. iPhones are like gold bars in Brazil. If I just say I'm giving away iPhones on my Twitch stream, everybody download Twitch. And, you know, sure enough, I get the, I just like kind of like bootleg away to get the guy gift card so he could buy iPhones. And he buys 10 iPhones. He does a stream where he's like, I'm giving away iPhones. He's like, I'm not giving away the first one until we have a, like, we have 10,000 people watching.

my stream. Go share this. Text your cousin. Text your mom. Tell them to get on this. I'm not giving it away until then. And then, and he drum up, he had, he brought, he like, he was the number one streamer on Twitch that day. He brought in himself like hundreds of thousands of downloads. Like the biggest download spike that we had had just by giving away like, you know, we ended up giving away like five iPhones. And it's like, so for five grand, basically, we did like more installs in a proven way because they were all coming directly off his link to his channel. And I was like, and people. And, and people. And, and, And that's when I knew, like, Twitch might not be the place because, like, I told the story. And I'm like, I feel like I slayed the dragon and I'm dragging his carcass into the

boardroom, like in the ninth floor, the top floor, the mega boardroom or all the execs it. I feel like I'm dragging this carcass in being like, you know, are you not entertained? You know, and people were like, oh, like, you know, that's interesting. And they just sort of moved on. And I was like, wait, we just discovered this, like, incredible growth hack to, like, get a bunch of downloads. We did this thing out of the ordinary, like, you know, can we get a little love here? And when I got no love, I was like, okay, this is not the place for me. Because if this was my company and somebody did this, I'd be like, look, I don't know if this was good strategy long term or a bad one.

It's really irrelevant. The fact that you did this, we need to tell every team in the company that, like, something like this is possible in your department. Like, don't get stuck in the molasses. Like, find something and try something that works. And like, these guys have tried nine things that failed. Tell them about all nine and then tell them the one that worked. And like, I would have gone on a road show for that. And that's how I knew like, okay, what type of company do I need to be at is one that like celebrates that type of thing.

That's a pretty amazing story. And like really amazing that this guy who's in Brazil is like, I know how to get downloads from this street. Like, give away iPhones and get people to download it. That's brilliant of him. And brilliant that you found him and like harness it. And we're like, fuck all this red tape. I'm going to figure it out. That's awesome.

What an incredible story Finally, I'm getting Finally, I'm getting the love I needed Yeah, I've been waiting two years To just get the daddy, I'm proud of you His son I'm proud of you moment But I got it now All right man, sorry I took you so far over the time

I'm going on Yeah, appreciate Thanks so much for having me Like a champ Yeah, appreciate Where should people find you? Your Twitter is probably the best spot, right? Yeah, Twitter, I'm at Moiz Ali

At Moiz Ali. At Moiz Ali. All right, perfect. Thanks, man. Perfect. Thanks, John. Thank you soon.