The Pomp Podcast - #980 Marc Roberts & Michael Simkins On Building A Global Luxury Brand

Episode Date: May 27, 2022

Marc Roberts & Michael Simkins are Co-Owners Of E11even Nightclub. They are on a path to bring global expansion to the E11even brand In this conversation, we discuss how they built the most profitable per square foot nightclub, creating a global brand name, licensing their brand, E11even residencies, being the first nightclub to accept Bitcoin and Crypto, and their new NFT-based membership. ======================= Exodus is leading the world out of the traditional financial system by building beautiful and user-friendly blockchain products. With its focus on design and user experience, Exodus has become one of the most popular and loved cryptocurrency apps. It’s supported on both desktop and mobile, allowing you to sync your wallet across multiple devices so you can have access to your funds anywhere. You can instantly exchange around 100 different cryptocurrencies straight from your wallet. Interactive charts let you view an asset’s price history and your portfolio’s performance over time. And maybe the best part, Exodus is integrated with the Trezor hardware wallet - making advanced security easy for everyone.  Visit exodus.com/pomp for your free download or search Exodus on the App Store or Playstore. ======================= Today’s episode is sponsored by Abra. Based in California and backed by top VC firms, Abra is an all-in-one simple, secure app that allows you to trade over 110 cryptocurrencies, get 0% interest loans using your crypto as collateral and earn interest with up to 14% APY on stablecoins and 8.15% APY on Bitcoin.  Join nearly 2 million users by downloading Abra from the Google Play or Apple App store. If you download the app today, you will get $15 in free crypto once you fund your account.  You came, you invested — now conquer. ======================= DeFi Technologies represents what’s next in the digital economy -- providing simplified, trusted access to crypto, decentralized finance and Web 3.0 investment opportunities. Institutions and investors can gain diversified, secure, compliant, and easily tradable access to a diversified set of industry-leading equity products and protocols, through a single stock purchase on a regulated exchange. Currently listed on U.S. (OTC: DEFTF) and Canadian (NEO:DEFI) exchanges. For more information or to subscribe to receive company updates and financial information, visit our website at http://defi.tech  =======================

what's up everyone this is anthony pompliano most of you know me as pomp you're listening to the pomp podcast simply the best podcast out there now let's kick this thing off mark roberts and mike simpkins are both co-owners of 11 nightclub and they are on a path to bring global expansion to the 11 brand in this conversation we talk about how they built the single most profitable per square foot nightclub in the entire world what they're doing to actually use licensing of their IP, and then how they think about their brand new membership program. I really enjoyed this conversation with both Mike and Mark, and I hope you enjoyed it as well. Before we get into this episode, though, I first want to talk about our sponsors.

Today's episode is brought to you by Exodus, the world's leading desktop, mobile, and hardware crypto wallet. They offer beautiful, user-friendly blockchain products that sync across all of your devices, making it easier to send, receive, and exchange over 150 or more crypto assets in one place and with world-class customer service available to you 24 7 exodus always has your back but the fun doesn't stop with staking and trading they recently launched a new nft marketplace where you can buy and sell your favorite nfts on the solana network by partnering with the popular nft platform magic eden they're offering the full monty on verified collections with more added every single day ready to check it out for yourself run don't walk over to exodus.com

slash Pomp for your free download today. Again, if you want the world's leading desktop, mobile and hardware crypto wallet, go to Exodus.com slash Pomp today. Today's episode is sponsored by Abra. They're based in California and they're backed by top VC firms. Abra is an all in one simple secure app that allows you to trade over 110 cryptocurrencies, get 0% interest loans using your crypto as collateral and earn interest with up to 13% APY on stable coins and 7.15% APY on Bitcoin. You can join nearly 2 million users by downloading Abra from the Google Play or Apple App Store. If you download the app today, you will get $15 in free crypto once you fund your account. You came, you invested, now conquer. Abra, conquer crypto. Go check it out today.

This episode is brought to you by DeFi Technologies. DeFi Technologies represents what's next in the digital economy. They're providing simplified, trusted access to crypto, decentralized finance, and Web3 investment opportunities. Institutions and investors can gain diversified, secure, compliant, and easily tradable access to a diversified set of industry-leading equity products and protocols through a single stock purchase on a regulated exchange. DeFi Technologies is currently listed on the U.S. Exchange at DEFTF Stock Ticker and the Canadian NEO Exchange at DEFI. For more information or to subscribe to receive company updates and financial information, visit their website at defi.tech. I'm really

excited about what these guys are doing. I've become an advisor to the business and I highly suggest you go check them out. Go to their website at defi.tech today. Anthony Pompliano runs Pomp Investments. All views of him and the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments. You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his personal opinion.

This podcast is for informational purposes only. All right, guys, bang, bang. I've got a very, very, very special two guests today. For some of you that don't know, Eleven is a nightclub and a brand based in Miami. It is, my understanding, the single most profitable nightclub per square foot in the world uh and i just happen to have two of the owners here mike and mark how are you guys doing great thanks pom for having us

i'm very excited mark's been on the podcast before mike has not been on the podcast yet uh i think the best place to start is trying to get people to understand the global ambition that you all have so we can start with the nightclub and kind of walk people through like what does that business look like? How do you guys make money? And how do you grow something into becoming a staple of Miami, which is pretty well known for its nightlife? How do you kind of break through that noise and build that brand? So Mark and I have been partners for the last 11 years, actually. And we're both commercial real estate investors and developers. And we bought the property upon which 11 is located. Initially, we planned on leasing the property,

but there was so much demand. We looked at each other and said, God, everyone in the world wants it. Why don't we partner? So we found the best nightlife operator, in our opinion, Dennis Degory, and he is the third partner in the 11 brand and 11 business. And we explored different options for the site because it had really good entitlements you had 24-hour district in the middle of downtown miami which miami is a late night place people like to go out other clubs had the last call 4 30 we're just getting going over there so uh so we were presented with three different options one that was a really nice club one that was spectacular one that was through the roof. And Mark and I, who always like to do things over the top and spectacular beyond belief,

chose the most ambitious plan and invested a lot of money. Everyone said we were crazy. We were going to lose our shirts on the project. And then nothing was happening in downtown Miami. But we saw something different. We saw the trucks that were going through there were going to be moved to the tunnel going to the port. Saw a lot of development. Our project, Mark, is a part of in Miami World Center, getting restarted over there. And we were big believers in different neighborhoods in Miami emerging. So we thought that in the years to come, Miami would actually be more exciting than Miami Beach in a lot of ways. So we took the plunge. We went big in the build out. And at first, it did well. And it steadily grew since 2014 to become the most

profitable nightclub per square foot in the world. So it's exciting. What costs more money, to buy the land or do the build-out? The build-out costs more money. And the land actually was about $3 million more, but Mark pulled a good little trick right

before... What was the trick? Well, before we went on contract in August of 2012. And that was one year where everybody was saying you have to sell everything by the end of the year, capital gains are going up,

capital gains are going up. They're still saying that. Exactly. So we set a closing for March. But something new, by the way, the guy that we're in a contract with, he was not well. He was not well healthy-wise. I didn't even think he'd make it to the closing, which he didn't.

But somebody in his crew would figure out that they'd want to close before the end of the year. So lo and behold, about December, beginning of December, we got the call. I said, hey, could you guys close by the end of the year? They said, we're supposed to close in March. Yeah, I'm sure we could close. Yeah, we could take $5 million off the price. Ah, a little trade.

Yeah, so we negotiated. We got almost a $3 million discount. That's pretty good. On the land, which was proven to be fantastic. And if you take what the land value is today and what the value of the club is, there may be, you know, the club is still worth more as a business, but the land's been a great investment and the club's been a great investment. So Michael and I are very proud of both, actually,

because as you know, we're landowners and we own a lot of land in the neighborhood as well. Yeah. When you guys build the club, you have to say you have a partner. I'll call them an operating partner for the intensity of this conversation. Why has it been so successful? Is it the brand? Is it the best musicians? Is it you guys are great at Instagram marketing?

What drives people there and keeps them coming back? I would say, and Mark maybe has a slightly different opinion, but we always started with a philosophy of treating every single customer like a VIP. Most nightclubs, they treat you like crap generally. So you have to buy your way to status, buy your way to, you know, with a table where they treat you good. We've always had a different philosophy. You come in, they say welcome home. We never use the term VIP because everybody at the club we consider a VIP.

So a lot of different factors probably play into it. But I think our attitude towards our customers, our attitude towards our staff and the people that work with us, like during COVID, we paid everyone the whole time. I mean, we were losing our shirts over there, writing checks. We started looking. I hope this doesn't keep, I hope the governor and the mayor lets us open up. And they had that 12 o'clock curfew while the rest of the state was open. It was really frustrating.

But we were paying everyone. And I think that general attitude that all three of us have, that our customers and the team and the staff are really what make the place special, you know, is kind of the secret ingredient in my opinion. What do you think, Mark? Well, first off, Mike and I don't operate clubs. We're real estate developers. We're businessmen. We're entrepreneurs. But like anything else you do in life, you know, the people you surround yourself with are key.

So key is everybody wanted to partner with us. and Michael and I came to the conclusion after interviewing everybody that the best partner for us would be Dennis Degore and Dennis is an incredible operator and this club is open 24 hours when we first opened up seven days a week

so I think it's a combination of Dennis's incredible ability to manage a club and the visionary that he was and what the club would be coupled with and supplemented by Michael and I having the same vision and then you take our talents

and his talents and the combined talents is what made it is today, whether it was financial clout, networking clout, celebrity clout, PR clout, operational clout. It just all was in sync, and everything was working to precision. And I think that the combination of us three,

you could really split it up into a third, and each one of us together collectively, I think one without the other, it couldn't have happened. Let's put it that way. yeah when you think of the club my last question there is just like how do you make money in the club is it just people pay to come in and then you basically are break even on everything else and it's all door sales is it you're making money in the alcohol is there uh other things like like where does the actual revenue break down and if you had to pick the best line of revenue and then

like the worst line of revenue inside of a club like this what would you say the best line of revenue is alcohol and champagne sales. Champagne sales could be 75% profit margin. Alcohol could be in excess of 90% profit margin. Also, the door fee is in a sense 100% profit margin minus the cost of operating. In food, I would say we serve food the whole time we're open. That's probably The lowest margin. The lowest margin. Yeah. But overall, you know, put all together, it works out really well.

Yeah. Mark, one of the things that you told me that just blew my mind was how many variations of revenue as well. You have one of the hats on, right? So selling a lot of hats. We don't talk about all of them. I told you some in confidence. We don't talk about all of them. What's the craziest one that you can say?

I can't say. You can't? But in terms of the ways that you guys make money inside of the club that maybe people wouldn't expect or wouldn't think, right? Because I think alcohol sales is like, duh, no-brainer, the door feed, no-brainer. Like what else that people maybe isn't so intuitive to them? Well, just the minimums on the tables.

Like, for instance, F1. Everything's supply and demand in the world, right? There's only a finite amount of tables, and there was so many people that wanted them. So the minimums that we got were sky high. F1, Ultra Art Basel there's so many great things

that go on in Miami now that really almost every week there's something different and some are more popular than the next but almost every weekend there's huge demand to go inside of it it's only 13,500 square feet so there's such demand for people to want to participate

because it's just a great experience it's clean, fun everybody has a good time Everybody knows they're going to get respected. Everybody knows that everybody's there just to have a good time. Everybody's there to disrespect each other, never have had a fight in the place. There's no drugs at all, at all. I mean, we have no zero tolerance on anything.

So, you know, people, I think that it's just overall people know that they come there, they're going to get respected, they're going to get first-class service, and really they're going to get value on their money, whether it's a crazy weekend or a weekend with nothing going on. So I think the overall enjoyment. Like, for instance, Cirque du Soleil shows we put on there cost us millions of dollars a year. Don't have to do them. I'm sure we're still popping out.

People would still come. But we give back to the customers. We make a conscious decision that let's keep these shows going. Let's give back to the people. Like we're going to do with our 11 NFTs that we're going to be talking about a little bit. Michael's philosophy, my philosophy, Dennis's philosophy is, okay, every penny we take in is going back to the NFT holders. We're not taking a nickel out of it. we want to keep giving them experiences so that people say when you deal with 11 you're dealing

with value you know what you deal with with with michael mark and dennis boy those guys give you more than you bargain for yeah that's our goal right if there's anything that we really do for a living and i would say just another revenue source that will dovetail into kind of the brand expansion is what we do with the hats so we sell millions of dollars a year at the hats mainly at the club um that really got us thinking that you know people are resonating with this brand it's giving them a feeling something that they want to kind of flex take back with them and that it's really more than a nightclub it's a lifestyle brand which kind of got us you know into these other verticals with 11. So you have this brand it became I think globally recognized

right I see people talking about it people know the club all this uh we've got a bottle of the 11 vodka here which I think is one of many different products that you guys have realized if we take this brand and we put it with products that people want, we have the opportunity to build very serious, very valuable businesses there. So using maybe the Vodka as an example, what is the ambition? What is the plan to take the brand and then use that to build these other businesses? Yes. So the Vodka in particular, my wife's the CEO of Eleven Vodka. She's done an amazing job of building out a team and growing it pretty rapidly. It's been around for about a year and a half. It's distributed by Southern Glaciers. It's in 1,500 accounts, the state of Florida,

every total wine, ABC, the best restaurants in South Florida. She has a founder of Deep Eddie's as her COO, the head of marketing for Grey Goose of 12 years as her chief marketing officer. And they're getting ready to go to California and Kentucky as the next two states, also with Southern Glaciers as the distributor. So the vodka won an amazing award. San Francisco is the best best in class for vodka over there and um so it's really first class uh doing really great and the goal there is is that same kind of brand feeling that it's it's the life of the party you know the kind of mentality of work hard play hard that i think is permeates throughout the brand um don't judge us live your best life all those things are embodied in the vodka in the

nightclub and uh you know that has a separate team uh very close to us uh of course uh the people um and you know it's it's amazing to see the growth that they're having you know who the number one salesman of 11 vodka is uh he's sitting right next to you he's amazing every time i've gone to a restaurant he always reminds them he goes when people ask for vodka you give them 11 vodka right and i always look and i'm like that's the greatest sales pitch of all time I know. Every time they see Mark, they think, hey, I better be giving people 11 vodka. He's rearranged more bars than I think bar managers at these.

Where does that come from in terms of your understanding of how to interact, obviously, with people who are going to in some ways be, you know, the face of or the interaction point with the brand, but also like this relentlessness of making sure they know, hey, I care about this. You should care about it, too. Well, actually, ever since I was probably a kid, I've been relentless. I've never been a scholar or anything, but I've always could outwork anybody. I've always been relentless. Hard work, relentlessness wins the day, in my opinion. You have to have a few brain cells, but I'll take relentless and hard work any day over to smartest kid in the room.

I've had a lot of smartest kid in the room, so I take work from Michael and I now. Probably, right? That's exactly what happens. But to me, it's logical. I mean, if you're going to go into a restaurant, you know, I'm known for going out to dinner every night, and, you know, we've been to plenty of dinners. If I'm going to spend my money there, you're going to serve my vodka, and you're going to only serve my vodka, okay, because we work hard, and, you know, we support their business. Why in the world would they not want to support our business? True. And people at the table, they're my friends.

Why wouldn't they support the business? Like, why would they drink any other vodka? Why would they drink any other vodka? And especially if we're in Miami. Like, why wouldn't you support a local-made vodka that's local? We're all in this together in Miami, right? We're all trying to grow Miami together. We're all trying to help each other out.

Like, I don't even understand why a restaurant wouldn't. You're a horrible salesman. So bad. I mean, you just got it down perfect. Speaking of taking the brand, obviously vodka is one area, but you guys also have been all over the news because you've taken the 11 brand and now you're building out the 11 residences which is uh uh in close proximity to the club obviously has the same brand um talk to me about that idea and like

it's one thing to sell hats it's another thing to do some vodka right you kind of move it up the complexity curve if you will building a you know whatever tens of stories of residents uh is a whole different ball game so what was the idea there actually it's two 65 story towers uh next to each other connect uh and directly across the street from the club and we've sold uh about seven months over a billion dollars worth of condos and which we're very proud of and i'll let michael interest it's uh no that that's the high level but one of them functions as a hotel so that was putting together a whole program we got deepak chopra has a 20 000 foot spa everyone's like 11 as Deepak Chopra like yeah we got Deepak Chopra what else do you how do you do that like you just

call them up and you're like yeah you want to do a spa it's uh that is they're looking to expand I think the timing was good that they have new um management running Deepak Chopra they were looking to expand the concept so and they wanted to be in Miami and also I mean in all fairness we do have the wealthiest clientele in the country the people come with 11 are very wealthy very successful they spend a lot of money and i think that anybody that's the reason we're blowing up the brand so big because people know our customers and our clients are happy and love everything we do everybody's trying to associate themselves with our clients that's why the brand has become so successful everyone's a vip yeah i mean seriously speaking and that's the reason we're

able to sell condos and sell for big money and everybody's excited about it and and we've gone other verticals and michael and dennis have strategized and we've recently hired a intellectual property ceo that's incredible michael can tell you more about that uh you know he's great at describing things like that uh but that i think that's the real key that people so go build a business under the 11 brand yeah people want our clientele property yeah seriously yeah just to finish the hotel really quick there's gonna be two of the top uh restaurant groups in the country that are operating amazing concepts there. There's a total of eight bars and restaurants.

It's basically cosmopolitan in the middle of downtown Miami, designed by Abrako, Sigur Suarez, really a best-in-class. It's a very high-end building that sold out for over $1,200 a foot in the middle of downtown with other new product that was selling at $700 a foot. So we achieved almost double of what comparable locations we're getting just because we put together the best package and we did it high-end. So super excited about that. I think for sure there are going to be other 11 hotels almost in any major football NFL city in the United States could have an 11 hotel. We have big ambitions for the hotel. But as Mark said, in doing that, we said, you know, we have a lot of interest for licensing and consumer products, whether it's apparel or other products.

we said, you know, we're busy. We're doing real estate. We're working with dentists looking for other club locations. We really need someone to come in who's an expert in branding and licensing who's done it. And we hired a search firm and we met a lot of great people. And we ended up hiring a woman, Kathy Glosser, who's really an amazing woman who led Donald Trump's branding and licensing division for 12 years. She started it for him. And when he won the Republican nomination, she said, you know, I'm going to go do something else. And it kind of ended at that point. And she's had her own consulting firm. So she's coming in and really looking to expand globally. We'll have a big focus on hotels globally and also different consumer products, licensing those

for the brand. And us and Dennis will look for nightclub locations. Mark and I are real estate guys. We'll still continue developing the Park West neighborhood in downtown Miami, which some people call District 11 with everything we got going on there. So it's exciting. When you think of that business, you mentioned other club locations, hotels, et cetera. Is it just game on now globally is how do we take the 11 brand and get it in a thoughtful and high quality way but get it as big and as far and as wide as possible yeah i would say from my perspective the hotels have more location potential with the product the nightclub just by the nature of the cost structure of the cirque du soleil shows and having drake and travis scott

you really need to be able to do 50 million dollars plus in revenue to kind of make it be what we wanted like three or four cities in america that's it it's vegas new york miami i mean those are the three that could support an 11 but globally there's more and we're looking for others but hotels there could be a lot more hotels so yeah we're looking we're looking to do it all yeah um 11 will become a multi-billion dollar brand you know what i have no doubt of that yeah So to that end, we definitely are proud and we're very proud of the 11 NFTs that we're right now currently minting. And Michael could give you more information on that as well. When you think of these, so if you think of you built the club, you then go and I'll call it global expansion of the brand, IP licensing, all this.

uh to me what you guys are doing with the 11 nfts it's basically sounds like selling a membership that's right that's how we describe it okay so describe a little bit in terms of like what is the thought process in doing this and i think the context of like we already have something that works really well got the highest grossing you know most profitable club per square foot in the world now residences vodka hats licensing okay why sell memberships what is the uh the thought process and advantage well michael's spearheading all that on that level do a great job i might add but my off the cuff is you know we pioneer we're pioneers that's what we pride ourselves on that's what we do and we pioneered we're the first club to take crypto we're the

first uh uh development to take crypto for pre-development so we like being the first first movers we're the first mover that did a lot of things if you really think about it so naturally we tried okay how can we pioneer in what this new world is going to be well nfts are out there we're talking nfts so we how can we make the best nft to give value back to our fans let's say clients fans and we strategized and michael can i tell you how we do that yeah so so we are um in addition to those things with the business with really being first movers and web three with crypto accepting it. We bought Bored Ape number 11 as well, and we use them as a mascot across our brands. But we also personally invest in crypto. Mark always asks you what's happening

with Bitcoin and where is it going? So we are big believers in digital assets. And we saw the evolution of NFTs go from collectible PFP projects to utility and community and access and membership. And we really said, you know what, we're always have been at the forefront of Web3 for in real life business. It's a riskier move for us to go this membership route via NFT, because if we charged annual dues we could shut it off at any time you know there's more people don't have an expectation of a profit from it they're more open to pay the annual dues that may be five thousand dollars than they are to buy an nft that may last a lifetime that costs five thousand dollars because the the mentality i guess of an initial product but we said you know we never do the easy

thing. We do what we feel like makes the most sense. And we think that as a brand, we need to be thinking where the world's going. And we think the world's going more digital and that connection to the community, you know, taking our customers and making them stakeholders, being able to deliver them value, both in the experiences that we could offer and hopefully with different airdrops and other things. We're not going to be so laser focused on the floor price, but we hope the floor price goes up for our community, certainly. And we're planning on offering tremendous benefits or utility that when we look at other NFT projects, we really feel like we're offering more utility than any other NFT project.

So the idea basically is you sell this membership and people will be able to get into the club, They'll be able to get into some of these other, um, facilities. They may get access to special events, do all these different things. And I think what's really interesting about this is I recently heard, uh, an individual I won't name, but it's very well known as an NFT artist. Uh, and he said like, I meet people all the time and they're like, I'm super into NFTs. He's like, that's such like a weird comment. Right. And he's like, because an NFT is basically just like a webpage.

Like it's just a technology form factor. Right. Right. And nobody runs around. It's like, I'm really into webpages. Right. Instead, what they do is they talk about like, hey, I really like Google because it answers my questions. I really like Amazon because it allows me to buy things like the technology of web pages allows you to do things. And what it sounds like to me is you guys basically understand that. And you're saying, hey, we want to give a membership experience to all of this clientele that we have. And we could do it with a couple of different technology form factors. We just think this one has advantages over other things. So we're going to pursue that. Yeah. No, absolutely.

Yeah. And it's interesting comment on the NFT fans. I think people like making money from NFTs and trading around NFTs. But we are, we have that factor. The price will fluctuate. It's on open seas, looks very rareable. But it has this in real life utility. A lot of NFT projects start on the web, Web3, and then try to do in real life events or think, you know, we start at the opposite. We're really the first successful in real life business to go the membership route via NFT. And we were going to offer all those in real life benefits. We're also going to do the traditional Web3 stuff like a private Discord server. It will be an alpha group. this is only 1,111. We have some of the most dynamic business people, Web3 investors, celebrities, athletes. So it's an incredible group of people that if you could, right now,

you can mint the NFT for three Ethereum and be part of a community with these people that we see tremendous value in that. And also we have a lot more ambition for other products with 11 crypto and it will serve this genesis collection will serve as a web pass a mint pass pardon me into everything we do in the future so we're applying the web3 nft things that have been successful and we're layering on all these in real life benefits that only we could offer and unique to our club and our future ventures and we think it's a really compelling um nft for people um and you know we're really excited to to start this journey and plan on being in it for decades yeah um i want to ask each one of you i wish i could ask each of you when you the other one

wasn't here so i could get two unfiltered answers i'll ask mark first then i'll ask you uh when people look at 11 10 years from now what do you want them to say that's the coolest club i've ever been to that's the best brand in the world like like what is the thing a decade from now you're like yeah we we nailed exactly what we wanted value value value 11 developers value high end first class value we we when we deal with 11 we know we're getting value but we know we're getting first class we know we're getting the best of everything and you know we could trust those are guys we could trust those guys deliver they say they're going to do it they do it and beyond that's why the second tower is called 11 beyond

like what would you say i would say in 10 years people say wow they're really continue being at the forefront of pop culture understanding art and entertainment and kind of where uh the world is going and uh you know kind of um provide experiences around current pop culture i think 11 for 2022 is kind of the most um you know current venue representative and we're continue to want to innovate and push the boundaries and i think you know that's that's part of our dna what we plan on keep doing yeah when um when you guys think about the clientele today it's some of the wealthiest people athletes musicians celebrities the whole nine yards can you ever execute what i'll call like the tesla strategy so they start out with the sports car

and then they move downstream and eventually they want to have an affordable sedan that anyone could buy can a brand conduct the global expansion and eventually you can move from the wealthy the celebrity, that audience down? And maybe is that part of what some of this is in terms of global expansion? Yeah, I would just say this is one example here. 1999 at Total Wines, it's got this amazing light that they have a patent pending, comes on every one,

lights up on the bottom. You have a party, got a party at your house or your best friend's event. But this is accessible. I mean, it's the same price as Tito's, tastes a lot better bottle looks more beautiful made with organic corn so i think that um we are looking at at products that apply uh to more people and not be so uh exclusive which we're not at the nightclub you could come and spend a hundred dollars or you could come and spend

twenty five thousand dollars what what is uh in your guys opinion um what do you think the average somebody spends is that the average person walks in the door do we know what that number is are loud to say no we it's on the you know there is an average number it's definitely not a uh no no no the average is a couple hundred dollars probably per person but it's skewed uh where certainly the there's there's some people who've spent six figures over there anyone ever dropped a million bucks very close yeah close yeah during bitcoin conference last year um someone someone spent close to a million dollars in singles and threw them in the air.

It took two hours for him to throw the singles in the air. So during the Bitcoin conference, somebody who came for the Bitcoin conference showed up to 11, the single most profitable nightclub per square foot in the world, spent almost a million dollars to convert, whether it was cash or Bitcoin.

Use Bitcoin. Use Bitcoin. They converted almost a million dollars of Bitcoin into singles and then turned around and spent for two hours literally throwing singles on the floor at the club. Yeah. Up in the air.

Yep. We love that guy. Yeah. He could have bought a condo across the street. I think he bought a condo across the street too. I think I know who this person is actually. When you see something like that, like how do you keep that person coming back? Like obviously a million dollars is like an insane amount of money for most people to think about going to the club and doing something like that.

Is it just because like that's a penny to that individual, right? And you're like, oh, they'll be back because literally it didn't matter to them? Or are there things that you can do to kind of cultivate the relationships with those types of clientele that come in? I think the experience is different every night. Certainly with the main performer, whether it's a Tiesto, it's one vibe. Or if it's a Cardi B, it's completely different. The people that are there. So they're getting a different experience.

Every night at 11 evolves a little bit. There's consistencies, but there's evolution. But then there's other products and lifestyle that we could provide these people to. And generally, you know, Mark ends up taking them out to dinner once or twice a week. So it's cultivating them that way. Do you go out to dinner every night? I don't know how he does it. I go out to dinner a lot, but it's with my wife and kids most nights.

I don't know how Mark does it, but you are a machine, my friend. Hey, listen, you can't build a network sitting home. That is probably one of the most truthful things I've ever heard. It is very true. Where can we send people to find you guys on the internet, find out more about Eleven? So right now, Eleven Captains Club is going. So elevencaptainclubs.io.

Visit OpenSeas. Tomorrow is the public sale. We kind of spread out the mint with the friends and family, a third. They allow us a third. We want it to keep for the public. So there's about 300 left tomorrow that we're reserving. Those will be sold out, and then you could go to OpenSeas, visit that, and visit the club, go to our sales center, even though I think we may be sold out of condos, but, you know, social media. My last question, just to get your guys' reaction live, is are we ever going to see an Eleven Airlines?

I think it was Eleven Cruise Ship before an Eleven Airlines. Eleven Cruise Ship. All right. That's fine. I just think of a high-end experience. Have you ever seen in the Bitcoin community, there's these photos that circulate on Twitter a lot of what plain food looked like in the 1970s? And they're basically bringing out steak and lobster and, you know, they got a whole spread, like all this stuff. And so the meme is they took this from us. Right now you go to give you a bag of peanuts. And so when I think of like the high end experience, right, it's like, hey, how do we bring back the 1970s airplane food?

which basically was the highest level of culinary. There's some food for thought. You know what? I don't think we've ever thought of that. If we do it. We're going to get Kathy on that one. We're going to get Kathy. We'll have to do a Palm section.

If we ever do an airline, we've got to give you credit over there. I just want to ride on the plane. If you guys are serving steak and lobster, count me in for a couple of flights. Absolutely. But that is the whole thing, right? It's like you guys have the brand. And if you're able to move into some of these other sectors,

like why not? Yeah. All right. Well, listen, thank you guys so much for doing this. I think people obviously very much enjoy the club. But as you guys continue to build out the brand globally, I think that you're going to just continue to accumulate a bigger and bigger clientele, community.

And there's a lot of people in the business world, I think, who just are watching this play out. And they're like, man, this is just blocking and taxing the execution of a strategy that is pretty cool to watch. So thanks so much. Thank you so much. Thanks for having us, Bob.

Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you're subscribed on Apple, Spotify, or your favorite podcast player. And if you're looking to try to transition to get a new job in the Bitcoin or crypto industry, we've got you covered. Head over to palmscryptocourse.com.

We've developed a curriculum with the top teams across the industry. It's a three-week intensive training program with over 50 events packed into that three-week time period. Go to palmscryptocourse.com to learn more and I'll meet you guys for the next episode. Thank you.