The Skinny Confidential Him & Her Podcast - Niel Robertson Founder Of Influence.Co On Problem Solving, Critical Thinking, Success & Failure

Episode Date: December 25, 2020

#316: On this episode we are joined by our friend Niel Robertson. Niel is the founder and CEO of Influence.co, The premier influencers marketing and networking platform. On this episode we discuss how... to approach problem solving, critical thinking, and how to navigate success and failure. To connect with Niel Robertson click HERE To connect with Lauryn Evarts click HERE To connect with Michael Bosstick click HERE Read More on The Skinny Confidential HERE For Detailed Show Notes visit TSCPODCAST.COM To Call the Him & Her Hotline call: 1-833-SKINNYS (754-6697) This episode is brought to you by Phexxi Phexxi® (lactic acid, citric acid, and potassium bitartrate) Vaginal Gel 1.8%, 1%, 0.4% is a hormone-free, prescription birth control used only before sex. Phexxi works to maintain the vaginal pH level to prevent pregnancy and you only use it when you need it! Be sure to tell your healthcare provider if you have a recent history of 3 or more UTIs per year. Learn more, including all risks at Phexxi.com This episode is brought to you by No Days Wasted Their hero product is called DHM Detox, which is the vitamin for people who like to enjoy their drinks. It’s designed to help you bounce back the next day. Get 20% off your order and free shipping in the US. Just head over to www.NoDaysWasted.CO/SKINNY and use promo code "SKINNY” at checkout Produced by Dear Media   

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Starting point is 00:00:00 The following podcast is a Dear Media production. She's a lifestyle blogger extraordinaire. Fantastic. And he's a serial entrepreneur. A very smart cookie. And now Lauren Everts and Michael Bostic are bringing you along for the ride. Get ready for some major realness. Welcome to The Skinny Confidential, him and her.
Starting point is 00:00:21 Aha! Take a pen and write on the window in the hallway mathematical view of what being intelligent was, and that's not how MIT works at all. I actually talked to the screenwriter, and I told them about the first day of stats class and how they taught people statistics. It's something called the Monty Hall problem.
Starting point is 00:00:41 So if you remember, when you go on to a Let's Make a Deal, they say there's three doors. You pick a door, you either win the prize, or if you don't win the prize, you can switch. And should you switch or not? And everybody thinks it's 50 50, but it's actually statistically not 50 50. They use this kind of example for like showing how statistics can be tricky, but you can master them. So I was explaining all these stories and the screenwriter actually ended up writing
Starting point is 00:01:03 three of those stories that gave them actually into the script into the movie it's beginning to look a lot like christmas welcome back to the skinny confidential him and her. That clip was from our guest of the show today, one of our best friends in the world, Neil Robertson. He's a serial entrepreneur. He's built multiple companies, sold multiple companies. His most recent venture, Influence, we're going to get all into it. For all you influencers out there, aspiring influencers, this episode is definitely for you. And in this episode, we talk about his involvement in the movie 21. You guys need to listen. It's so good. You also might know Neil from my Instagram story. He is married to my best
Starting point is 00:01:52 friend, Faith, and they have a gorgeous daughter named Aspen, who is best friends with Zaza. We're currently recording this on Christmas Eve. So Merry Christmas to everyone who celebrates. We hope you guys have an amazing day. We're going to have some oysters, do some champagne and have a lot of family time. We're going to sit by the fire, maybe have a hot toddy or five and just hang out. We hope you guys are with your loved ones. And if you're not, we hope everyone in the community has a beautiful day today, tomorrow, and a relaxing new year. With that, welcome neil robertson he is an entrepreneur he's a dad he's a husband he's a real smart cookie like he went to mit i'm telling you
Starting point is 00:02:31 he is intelligent and he also runs influence.co let's welcome him to the show this is the skinny, him and her. You told me at brunch two years ago. Which could have been any day of the week. Over red wine, because you drink red wine at 11 a.m. for brunch, that you were not going to be married and you were not going to have kids. Lot twist. Two years later, married, kids. I know, two dogs, two kids.
Starting point is 00:03:04 And asking for more kids. Yeah know, two dogs, two kids. And asking for more kids. Yeah, living in Encino on the other side of the hill. That's wild. Like crazy shit. I feel like we should maybe give some context of who Neil is. Neil, I've told you 50 times, you want to make God laugh, tell him your plans. Neil's planning that.
Starting point is 00:03:19 Yeah, you want to make God laugh, tell Faith your plans. Yeah, seriously. Context. Well, we have one of our best friends on the podcast today. We wanted to shoot the shit with him. We'll talk all over the place. He's very, very smart. I call him pragmatic.
Starting point is 00:03:30 He's also very funny. He's one of a kind. He does things that I've never seen another human do. Not just best friends, I would argue like also mentor of sorts. I mean, at least for me personally, you've helped a lot
Starting point is 00:03:39 and helped me work through a lot of issues. I think that's really tri-directional, bi-directional, whatever it is. I think think we riff between personal and professional and everything in the gray area so fluidly. It's partially what makes us a super rare relationship. Yeah. We met, well, I saw you at a club in San Diego popping about 600 bottles of Dom Perignon
Starting point is 00:04:02 one night and thought, who is that? And then years later, we ended up meeting in New York. Yeah. And you were dating Faith, who's one of my best friends now. And I was immediately attracted to her. Like, I saw her and she was so warm and so beautiful. And most of all, so funny and so witty. And we ended up going out to dinner. Shout out to ABC Kitchen.
Starting point is 00:04:25 That place is good. Oh and then faith and i started talking about vagina rejuvenation and i was like oh my god i just met my new best friend and that turned into lunch and rosé brunch brunch were you drinking red wine because you drink red wine at like 9 a.m what no this makes you sound like an alcoholic but like you you like a good glass of red wine when we're all drinking mimosas. I'm like an alcohol phaser. And so I don't know what phase. I think I was like either in like Bacardi and Diet
Starting point is 00:04:53 or like maybe Rosé for a hot minute in New York. Hot minute, hot minute. When I first met Neil, he was in the Jameson phase. Yeah. Which I still have, I still go back into that phase pretty frequently. Yeah, that's like the Neil in the Dark Hunter that I go to every once in a while. That was the Neil that was never getting married.
Starting point is 00:05:09 That was the Neil that was never having a kid. Yes, yes. Never moving to the valley. Yes, my Scottish twin, Jameson. That was pre-faith. That was pre-faith. So we just really developed this really fun friendship where it was couples without kids. No kids, no responsibility. And we ended up going
Starting point is 00:05:27 on a huge boat with you guys, with a bunch of friends. We had a blast, a little bit of mushrooms. Faith actually roofied Michael with mushrooms in his drink. And, and then we ended up. I don't get scared to party with people, but I get scared to party with Faith because she gets me going there's peer pressure and then there's Faith and if you're partying with Faith you're partying. Faith is the partier
Starting point is 00:05:56 she's fun though man she's fun and I mean not to paint us all in a bad light because now we're all like boring parents moving to the valley settling down like drink like we go to bed at like probably all of us, like 10 o'clock at night now, but there was a period. I was in bed at eight 30 yesterday.
Starting point is 00:06:08 Yeah. There's a period. Oh, okay. Let's go back here. Cause we can, we can ramble on. And this,
Starting point is 00:06:12 this is my fear about this podcast. We can end up just falling into God knows what kind of conversations, but I do want people to understand you and get in the context of what you do. So maybe go back a little bit. I'm gonna take you way back. What was your childhood like? Where'd you grow up? Wow, way back.
Starting point is 00:06:28 I was born in Germany. I'm only saying that because born in Germany, but I grew up in Scotland. So I was a British citizen for the first 38 years of my life. I moved to the US when I was five years old. My father is a symphony and opera conductor. And so he became the conductor
Starting point is 00:06:42 of the Monterey County Youth Symphony, which is why we moved to the U.S. He then went on to conduct New York City Opera and got nominated for a couple of Grammys. So he had a pretty cool career. My dad's awesome. And I grew up like in the countryside in Northern California in a little town called Carmel Valley, not the San Diego Carmel Valley. The Northern California one by Carmel. And my childhood was pretty, well, it was pretty limited because I didn't live by anybody
Starting point is 00:07:05 that I knew. And so I actually ended up sort of accidentally getting into computers at a very young age and spent most of my childhood actually sitting in my room writing software. How old? 11, 12, 13. Not to date you, but like, I just want to give you context. I'm 75, right? So that's the end of the 80s, right? Yeah, that will actually date me. Yeah, I mean, and I started my first software company when I was 14 years old. So that's what I was doing when I was a kid.
Starting point is 00:07:32 What did a software company look like at 14 years? What were the other companies that people would even remember and know about at that? Because it was young. It was early. Like, are we talking Pac-Man? Like, we're talking like post--Man pre Microsoft Word, right? So this is like you would buy like an Apple IIe or you would buy like a Mac and you would get some like innocuous checkbook balancing piece of software that you like bought in
Starting point is 00:07:57 like a Sam Goody or something like that and installed over like 45 floppy disks. And it did like three things. The first piece of software that I ever built, which I sold was pre-internet, everybody, the people that were kind of getting online were actually calling each other on modems, right? So if you remember the old like AOL dial tone, that was the modem dial tone. And I built one of those systems for the Apple. And I set up a bulletin board system. And then a bunch of people started calling into my system. and you kind of had like phone numbers written on pieces of scratch paper that you would like sort of pass around and that's kind of how like you knew the equivalent of websites to go to
Starting point is 00:08:31 and I met a business partner in New York and we decided to take what I'd written and make it a company. Hold on what do you mean you met a business partner in New York at 14 years old? He called him on his software yeah yeah literally so i i don't even remember where i got the phone number for this bulletin board system i had this is back when like you paid for local telephone calls like that's how old i am it was like not cheap to call new york for like 15 20 minutes after my parents would go to bed i would like get on the phone line and i would fire up whatever phone number and you would dial in and you would just poke around on these bulletin board systems which were like super like low grade text message websites. And a lot of them like had places where
Starting point is 00:09:08 you could like chat. And I dialed up this one bulletin board system and it turns out it was like another kid who was like 14 or 15 in New York and Buffalo. And we started chatting and we're like, let's start this company. And literally that's like how I started a company. You wrote a book and published a book when I want to say you were 11 years old. I missed that. Nine. It was nine. Yeah. Who the fuck publishes a book at nine years old? So let me be clear with that. So I mentioned my father was an opera conductor and along his career, he would take these summer opera gigs all over the United States because opera seasons are usually summer seasons. And so he would have to go away from my family. And because
Starting point is 00:09:47 he wanted to see my sister and or I, we would go and stay with him. So I would spend the summer in Iowa, in Des Moines for Des Moines Opera or in Kennebunkport where he was conducting another opera company. And essentially I had nothing to do at all because I was there and there was no other children there. And so my dad found me a typewriter and just to spend time on this. And I just decided I was going to write a book. And so I sat down and I wrote two books that are that. Then later on, I told my mom and my sister that what I really wanted to do before I was 30 was publish a book. And so they actually found the manuscript. I went through and meticulously copied the manuscript line break by line break and word for word into a printed book that they published for
Starting point is 00:10:31 me. You can still buy it on Amazon for my 30th birthday. What's it called? The first one was called The Crystal Mirror and the Ring of Fire. And I can't remember the name of the second one. The Crystal Mirror was really my, that was my opus. How does it feel when you're, when you're that young to be that smart? Because it is a very like unique trait. You were so intelligent. You are so intelligent, but when you're- You were so intelligent. You were before you drink all the wine and all the Dom Perignon. No, you, you are intelligent, but you were so intelligent when you were young, when your friends are out skateboarding and
Starting point is 00:11:03 Michael's mooning the principal and sneaking into like a boy's room, like, and you're sitting there writing a book and publishing a book, how does that feel? Did you feel left out? Hold up. We need to talk about my favorite latest hack, something that is going to change the game, and that is No Days Wasted. Okay, New Year's Eve is coming up, and you guys want to feel your best moving into 2021, but I'm sure maybe a lot of you want to have a few drinks. I know I do. So No Days Wasted. Okay, we've talked about this before, but basically it's here to maximize life's moments. Their hero product is called DHM Detox. And this is this herbal supplement
Starting point is 00:11:50 for people who like to enjoy their drinks, okay? It's designed to help you bounce back the next day. So what you do is you take two capsules after your first couple of drinks and it goes to work. It does the work for you. DHM Detox uses science to help boost your body's natural response to alcohol, and it helps break down the toxins, okay? Like I said, an herbal supplement. It's built on the backbone of DHM. To get micro with you, this is a plant-based ingredient that's
Starting point is 00:12:15 been used in Asia for centuries. It's a real secret, okay? I'm telling you, I did this the other day. I was out with friends. We were having some fun and I took my two capsules after my first couple drinks and I woke up and I was good. I was good to go. I got all my work done. I got all the shit I needed to do done. It's like a lifesaver, okay? So if you're having a couple drinks during the holiday season, New Year's Eve, this is what you want to do, okay? New Year's Eve's almost here. You want to be prepared and you want to start 2021 on the right foot. There's nothing worse than waking up feeling like shit in a new year. eve's almost here you want to be prepared and you want to start 2021 on the right foot there's nothing worse than waking up feeling like shit in a new year this is a completely risk-free purchase so if you guys don't love it they'll refund you on your first box but
Starting point is 00:12:54 i know you're gonna love it it's very easy decision as always we got you a code so you're going to head over to no days wasted.co skinny and use promo code skinny at checkout it's 20 I feel like I was very lucky because if you tried to do all of those things at a different point in time and from a different location, I would have been like a highly ostracized child. But I lived in the middle of the countryside. I went to a very small private school with 200 people in five grades where that kind of behavior was sort of not frowned upon. It was kind of normal. And then I parlayed that into getting into MIT. And so by the time I was old enough to realize that that wasn't normal, I was in an environment heading towards being an adult where heading into the 90s where all of a sudden nerds were cool and we were taking
Starting point is 00:14:02 over the world and making all the money. If you had done it like 10 years before, it would have been like dazed and confused. I would have got hazed out of school. Or if you'd done it 10 or 15 years later, I would have just been, I would have been the Star Wars kid, like bullied online video. So it was just like, I never thought about it because it was just this perfect confluence of environment that allowed that to be like, not that abnormal. When did you have an epiphany where you were like, oh, I'm really intelligent. Was there someone an epiphany where you were like oh i'm really intelligent what was there someone you were talking to and you thought like what what what was the the transition did you feel like maybe the opposite when you got to mit because you're with
Starting point is 00:14:35 the most yeah what is it what is that like it's almost like the beauty queen moves to la and realizes there's 800 beauty queens yeah it, it's interesting. So I actually remember very distinctly this moment where like I was, I don't know, I was maybe like 12, 13, 14. I was driving in the car and I was having some conversation with my mom about something and about like someone else. I can't remember if it was another kid,
Starting point is 00:14:55 like not kind of understanding. And I like couldn't understand why they couldn't understand. And she said, well, like you're not, not everybody has the same capacity. And that was like a completely foreign idea to me it had never dawned on me that there was people that had different like processing capacity and like let's be honest I'm good at some stuff I'm horrible at other things and so like
Starting point is 00:15:13 that was the first time I remember thinking like oh there's like there's some kind of a level system here and like that's interesting I should lean into that I think like once you realize when you get to MIT there's a lot of really smart people, but the thing that distinguishes the successful from the smart is work. And the people that survived MIT and flourished were the people that just grinded it out. I'm also going to say something else that I think probably made you stand out at MIT. Some really intelligent people have problems socially and you don't. Like I feel like I could throw you, I've thrown you in with my parents. I've thrown you in with my new friends, Gillian and Mauricio, where you like become friends with them instantly. Like I've thrown you into so many different circumstances
Starting point is 00:15:54 and you're really good at socially. Why do you think that is? That's a hundred percent because of how I grew up with my dad and my mom. If you think about what my dad did for a living, you hear symphony and opera conductor, you probably don't think like performer, but that's what he did. He got up and he was a rock star in his world. That was always surrounded by the meets beforehand, the meets afterhand, the business dinner, the dinner dinners. And so my mom learned how to be this incredible social
Starting point is 00:16:25 chameleon where she just really learned how to sit at any table with any set of people from 85-year-old lady in Miami wearing a 20-carat canary diamond who was a big donor to an up-and-coming artist and just engage with them. And I was around that all the time. And so it was just what was normal to me. So my mom is a master of that. And I just absorbed that from her. What do you think is more important to instill in your child and in our child? Smarts and intelligence or being a social chameleon? And you need to get really specific on why. Smarts and intelligence or being a social chameleon. I mean, obviously you want to do both, but what do you lean to as being more important as a life skill? You know what? Well, it's funny because Faith and I would probably answer this question a little bit differently because of our backgrounds. You can talk to her about that
Starting point is 00:17:13 this afternoon. Careful, Neil. Careful. Yeah. For me, smarts and intelligence matter because it allows you to be intellectually honest with what's going on in your head. And I think if you're focused on that, you learn very quickly that as long as you're feeding the beast between your ears, you can find comfort in anything. So I never needed social. I just happened to pick it up, and it was a very great amplifier to having the ability to cover a lot of ground. So you go to MIT. MIT, when I was in high school, was the gnarliest possible school you could go to. Did you feel like that? I was on the other side.
Starting point is 00:17:50 I was one of them. What do you call them now? I think I was one of the dumb kids. Oh. That's what they call them now. I can say that about myself. I thought the other side of MIT was Harvard. My option was like, you are going to the University of Arizona, the Harvard of the desert, or you are going to community college, or you're going back to working at McDonald's.
Starting point is 00:18:09 Like that's so, I chose the University of Arizona, very proud of my regional development degree. It's brought me a long way. Well, we called MIT the University of Arizona of the East. You're at MIT and you meet someone there and you end up, I'll fast forward and you can give us all the details. You end up being featured in a movie. I wasn't featured in the movie. Well. That's not true. You are featured in the movie. This is true. Okay. So let me give the context for this. And I'm going to fast forward in the story a little bit. I went to MIT. I stayed there. I worked during the summers at a company.
Starting point is 00:18:41 And then I spun out of that company, my first company, which was a venture-backed company. We built that company. We sold it. It was a right time, right place internet company. We sold the company in 17 months for $280 million. It was a huge outcome. So I was 24 years- Let's just glaze over that real quick. Yeah. What's the company called? The company was called Service Metrics. So now, of course, I didn't own all of that company myself. I had a nice exit there. And so you're 24 years old. You've got some money burning a hole in your pocket. What are you going to do with it? You're going to open a bar. So I did. I got some friends of mine and we
Starting point is 00:19:14 opened a bar in Boston in what used to be called the Combat Zone. It was a red light district. And we kind of were one of the first bars to open there, which is now like the super hotspot in town. But we found some additional investors. And one of the guys that got involved was a guy named Jeff Ma, who's now one of my best friends. And it turns out that Jeff Ma was a figurehead in this whole storyline about MIT kids playing blackjack and going to Vegas and beating the system. He kept bringing this guy named Ben Mesrick along with him. Ben Mesrick was writing a book about Jeff. That book became one called Bringing Down the House, which turned into the movie 21. That's a great book, by the way, too.
Starting point is 00:19:51 It's a wonderful book. And Ben has continued to go on and do just blockbuster stuff. He wrote the book that became the movie The Social Network. He's done a bunch of other really amazing stuff. He's also one of my best friends, little Ben. So I was just becoming friends with Jeff and Ben during this whole thing. And during the filming of the movie, they needed some insight into what it was like to go to MIT. And so they sent me a very early version of the script. And there was a whole Good Will Hunting had just come out. So there was this take a pen and write on the window in the hallway, mathematical view of what being intelligent was. And that's not how MIT
Starting point is 00:20:25 works at all. People at MIT are actually very well-rounded. And so I actually talked to the screenwriter and I told them about the first day of stats class and how they taught people statistics. It's something called the Monty Hall problem. So if you remember when you go onto a let's make a deal, they say there's three doors. You pick a door, you either win the prize or if you don't win the prize, you can switch. And should you switch or not? And everybody thinks it's 50-50, but it's actually statistically not 50-50. They use this kind of example for like showing how statistics can be tricky, but you can master them.
Starting point is 00:20:57 So I was explaining all these stories and the screenwriter actually ended up writing three of those stories. I gave them actually into the script, into the movie because it was much more resembling how MIT really worked. I also became friends with a guy named Dana Brunetti who now is sort of a scion of the movie industry. And he made Fifty Shades of Grey and Captain Phillips and a bunch of other awesome movies. And he just sort of loved my participation so much that in the movie, the main character is actually getting a scholarship to Harvard. And they named the scholarship in the movie after me.
Starting point is 00:21:30 So I had heard about this. I thought it was really cool. And I expected like maybe once in the movie that they would mention it. But for some reason, they kept writing it into the script. So it's actually mentioned over and over again in the movie. So my name is like throughout that movie continuously. Let me ask you this, because on this show and for Lauren and I particularly in a lot of ways, I don't want to say we're against college, but let me clarify. I am personally against most people going to
Starting point is 00:21:56 college and I'll say blanket colleges or schools if they themselves have to pay for it. But I'm not including like, listen, if you can get into an MIT or a Harvard or a Stanford, but in my particular case, like the University of Arizona or San Diego State, not to shit on these schools or good schools, but if you're somebody and you're a young person, you have to take on the debt to put yourself through it. And you want to be an entrepreneur
Starting point is 00:22:19 and not a doctor or a lawyer. Yes, yes. As we've said a lot of times, like maybe that is not the best path. You can always go back later, but to have to pay for it, if it's not the schools we've highlighted, because in my experience, like I remember you, and listen, I remember it very fondly and Laura remembers her school and it was great. I'm sure you do remember it fondly. What do you remember about it? The sororities? What do you remember, Michael Bostic? Let me think for a minute. Hold
Starting point is 00:22:43 on. Let me take a minute to just... Your eyelids are fluttering. I went to a place. No, but I was lucky enough that my parents paid for school. But I think about that school. I'm like, okay, yeah, we learned some things. But it was mostly like what Lawrence says, how to drink, how to party, how to do certain things. I didn't feel like if I had to pay for it, I wouldn't have necessarily wanted to take on all that debt.
Starting point is 00:23:01 So I was very, very lucky. A lot of people aren't that lucky. How to apply a condom. Yeah. Did you learn that? No, I didn't really learn that skill. They don't teach you that there. That came in handy recently, didn't it? But I think like if I had the opportunity, even if I had to pay for it to get into a place like an MIT or a Harvard, that's a different thing because the people you're there with and the people you get exposure to, like even just look at what the social network, like all the people that came out of that Harvard class or like MIT, all the people that came out of yours. But in most, I would say 99% of cases, it's not
Starting point is 00:23:30 that. And I wanted to get your take on like how you feel about an undergraduate program. If you're somebody, a young person that wants to be an entrepreneur that has to pay for it. Yeah. So I think there's roughly three kinds of schools that matter. I think there's schools that teach you how to think. That's MIT. I think there's schools that teach you how to network. That's Harvard. And I think there's schools that teach you how to do something.
Starting point is 00:23:56 And that's a lot of vocational schools or schools that have a huge amount of focus, like UC Davis on agriculture or something, if you want to be a vintner. I think you can argue that 80% of schools are not any of those things very well. And so that is I think where a lot of the money gets wasted. What you see happening online now is the movement of schools that teach you how to do something online to make it more accessible. I will say as I get older and more curmudgeonly, I really appreciate the framework of teaching people how to think because the only thing that you buy at MIT is a ability to approach any problem with fear and solve it. That's all
Starting point is 00:24:39 they teach you. And that's what they'll tell you. And that could be like sending a man to the moon if you're an astrophysics degree, or it could be starting a company. You literally leave the school fearless. That's amazing. I've never heard you say that. I don't know if I've ever said it before. Well, that's an amazing, but that is an amazing skill that I can tell you my regional development degree from U of A did not teach you, right?
Starting point is 00:24:59 So I guess we get, I get personally some flack sometimes when they say, oh, how could you be against? I'm not against education. I think any form of education is good. I'm against young people taking on massive amounts of debt without understanding fully the education that they're actually going to get in return. So you get out of school with $100,000 in debt and you don't get the skills that we're talking about.
Starting point is 00:25:19 And you go and apply. Let's say you go and apply for a job at a place like Dear Media. I'm not looking at the college degree and also like to start at a starting job. And listen, there's further, like to dig yourself out of a hundred, $200,000 in debt. Like you have to make so much. You're just, I think like my wife, Faith is Australian. And so it's interesting to look at Australian culture versus US culture, right? In Australian culture, like you're taught to buy a house. Like that's the thing that you make an investment in. And you don't really think about like renting. You try to buy as fast as possible. In the US you're taught to get an house. That's the thing that you make an investment in. You don't really think about renting. You try to buy as fast as possible. In the US, you're taught to get an education.
Starting point is 00:25:48 They actually cost about the same amount of money. But I think a whole bunch of people in the US get an education where they should think about spending that money in another way. You don't, when you're 22, go buy a house. You get an apartment because you don't know what you want to be or where you want to be. You want mobility and flexibility. And our cultural system has valued the investment in education, like the Australian cultural system has valued the investment in houses. And actually, interestingly, in Australia, it's inverted as well. Not everybody goes to college, and it's partially because the vocational jobs have a much higher pay rate. Their minimum wage is about $25 an hour. So some of the wealthiest people are electricians and plumbers. They call them tradies. And so you can actually go through a non-educational path and make a really good
Starting point is 00:26:29 living in Australia. It's a funny cultural underpinning of where you put your chips on the table. And I think that's changing in the US just like the housing is changing in Australia. I have a question and this might sound ignorant. Can you count cards? Like if the cards were on the table right now and it was legal, can you do it? I mean, I know how to, but that's not really the trick. The trick is counting cards with 55 other things going on. What do you mean? Explain this in like really kindergarten terms.
Starting point is 00:26:59 Yeah. So basically like, okay, and I'm going to butcher this. If Jeff Ma was here, he would be pushing me out of my chair to explain this. The whole idea is that everybody thinks the games in Vegas are games of chance. And that is true. You spin a roulette wheel and the ball bounces around and you don't have any control over that. And craps is a great example. You roll the dice and they land what they do. But blackjack is not that because blackjack has memory. So when you sit down at a blackjack table, there's six decks. It's called a six deck shoe,
Starting point is 00:27:31 right? And they do that because they just want to keep the game moving along. They don't want to keep shuffling cards. Well, if you can predict the likelihood of a certain card coming out of the deck, you can make a statistically small change in how you bet to your advantage. And so everything in Vegas is about the house having a 2% advantage or you having a 2% advantage. So think of it this way. Let's say you had six decks of cards and every single card came out except for every 10 king, queen, jackanies. That was the last set of cards that you knew were sitting in that shoe. You would bet every single dollar you had on the planet because you were guaranteed to get a 10 or a 21 on every single hand.
Starting point is 00:28:11 Now, it never works that way, but you can have these runs of the cards where statistically, it's more likely to get a 10 or a Jack or a King or a Queen, so you can get a 20 or a 21. And so card counting is about having a very simple system of looking at every card that comes out of the table because they have to play them all up. And you can say, okay, this is the likelihood of a 10 coming up and it's getting better and better and better because that 10 hasn't come out of this deck in a long time. And when the 10 hasn't come out of deck in a long time, the odds slowly shift in your favor. And at some point in the time, they shift positively in your favor where you're against
Starting point is 00:28:46 the house, where you're beating the house. What happened is, so that's what card counting is. The problem with traditional card counting is that if I sat down at the beginning of a six-deck shoe, I would have to play a ton of hands hoping that the count came in my favor, that I could ratchet up my bet and start making money. But I'm going to burn a lot of money in that process because I don't have any advantage in the beginning. This is what the MIT team figured out.
Starting point is 00:29:09 If you fielded a team of people in a casino because multiple people sit at a table, you have one person playing like $5 a hand, keeping the count. When the count got in the favor of somebody, because you can come and sit down at a table when half the shoe is already done, they had signals that signaled someone else on the team to come over and sit at the table. And they had verbal system of explaining where the count was. Like, what do you mean? Give an example. So they would say like, it's really cold outside. And cold to mean that the count was like plus seven. It was a certain amount in your advantage. And so the person would kind of
Starting point is 00:29:41 know where they were in the deck from like a statistical perspective. And they could jump into the table towards the middle or end of the deck and just start coming in as the $100 player, $200 player, $1,000 player. Because this happens all the time in Vegas. It's about social engineering. In Vegas, you've got the person that's sitting there drinking drinks, getting free, cardio diets. And then you've got the person who just wants to roll up, swagger up, put $300 on the table for no reason. So it's not abnormal to see someone do that, but you're just expecting that they don't have any information. The MIT team figured out how to give them the information to do that when the bet was
Starting point is 00:30:12 in their advantage. So they would go in and they would work a whole casino floor as a team. They would have someone burning small amounts of money to try to figure out when there was a statistical advantage. And then these big players that had these big personalities they would play, they would just roll up to the table and just put down a bunch of money.
Starting point is 00:30:27 Were they all splitting the money when it was over? Yeah, they worked as a team. So how much would they make on like an amazing night? Well, so it would go way up and way down. I think,
Starting point is 00:30:37 I don't know this for a fact, and there was multiple teams at MIT doing this. There was one that Jeff was on got kind of written about in the movie. I think that like the team that Jeff was on ended up making millions of dollars.
Starting point is 00:30:48 Okay. Let me ask you this. I know with Neil, just explaining that to you, cause I'm not a blackjack player. You play blackjack when we go to Vegas. Could you do what he said? If you had a team, could you do what he said? Could you do what you said? if you had a team. Quick break because I need to discuss birth control. I've recently had so many DMs from women all over the world asking for more resources and information and discussion around birth control. So I learned recently that there are more than 21 million women who are not using hormonal birth control. And I'm one of them.
Starting point is 00:31:26 But now the FDA recently approved a birth control option that's completely hormone free. You guys may have seen me talk about this on Instagram already. So it's called Fexi. And it's this combination of lactic acid, 1.8%, citric acid, 1%, potassium bitotraterate 0.4%. It's this vaginal birth control gel that comes in a small applicator like a tampon and it works immediately and can be used up to an hour before sex. So basically you apply the gel before you have sex and only use it when you need it, but you have to apply it again before each act of vaginal sex. So when you try it, remember one dose, one hour, one act. And I have to tell you guys how it works because it's insane really. Like I kind of geeked out when I learned this and you know me, I had to overshare. We're going to go there. Normally
Starting point is 00:32:17 without Fexi, when a guy comes and semen enters the vagina, it causes the pH of your vagina to increase, which allows sperm to keep swimming and make their way up there to fertilize your egg. Are you listening, Michael and Taylor? So, Fexi works by maintaining the vaginal pH to a level that reduces the mobility of the sperm, reducing the chance of the sperm reaching the egg. How awesome is that? While Fexi could be a great option for many women like me who are seeking hormone-free birth control, it isn't right for everyone. So be sure to tell your healthcare provider if you have a recent history of three or more urinary tract infections per year. And obviously, as with any new birth
Starting point is 00:32:54 control, be sure to check for any ingredients in Fexi you or your partner may be allergic to. The most common side effects reported by clinical trial participants are vaginal burning, itching, and yeast infection. Some male partners also reported local discomfort. And remember, Phexxi only works when used before sex, and it doesn't protect against STIs, including HIV. To learn more about Phexxi, ask your healthcare provider and visit Phexxi.com for complete product information.
Starting point is 00:33:20 That is P-H-E-X-X-I dot com. And Michael, don't pop a boner. The problem is this. If you were sitting here and flipping the card over and I was like, there's a little system for plus one, minus one, or neutral to keep track of where you are. If you were just handing me cards and I was just saying plus one, minus one, et cetera, I could keep count count but you can't do that you have to like pretend you're not
Starting point is 00:33:47 looking at the table you have to like talk to a girl you have to order a drink you have to you guys are all bad multitaskers let's be honest
Starting point is 00:33:54 I mean Jesus Christ that part sounds insane listen if you get caught doing this like they I mean well listen back when the mob ran they'd break your
Starting point is 00:34:00 fucking hands but now they just throw you out like it's not like it's not they don't like say like hey you're allowed to
Starting point is 00:34:04 well see the thing is it's not it's not out. Like, it's not like, it's not, they don't like say, like, hey, you're allowed to. But I'm just wondering, if you guys have the team. See, the thing is, it's not illegal. And the reason it's not illegal is the definition of breaking the law in Vegas is affecting the outcome of the game.
Starting point is 00:34:12 You're not affecting the outcome of the game. You're using the history of the game to give you statistical advantage. But they have that, their discretion, who they can.
Starting point is 00:34:18 They can walk you out of the casino. And I've gone with Jeff many times. They know him by name. What do they do? I went there once with him and Kevin Spacey and Kevin Spacey was sitting at the table. Jeff was like him by name. They're like, you're not playing. What do they do? I went there once with him and Kevin Spacey, and Kevin Spacey was sitting at the table.
Starting point is 00:34:26 Jeff was like standing behind Kevin. They're like, Jeff, no, we're 100 feet away from him because they just don't trust that he's not passing them signals. Let me, I want to go back. Wait, can I just ask one question before you go back? Hold on. With what you just told me, and if you had a team of people, could you go in and do that because you know how it works if you wanted to you still could but they practice for like months and months and
Starting point is 00:34:49 months it's not just something you can just walk in and do no if you're like autistic or something like that and you like have that capacity but like they i mean they really practiced for for a long long time and the thing is it's a grind because like you're getting like a tiny advantage and so it's not like you get a 50% advantage. So you might go in there and it could be really in your advantage and you could put $10,000 and you could still lose. And so you have to play tons and tons of hands. I mean, the casino wins
Starting point is 00:35:13 because a million hands are played every single month and they have a 2% advantage. And so they win some, they lose some, but over a lot of hands, they win money. And you have to be able to play a ton of hands as a team to make that statistical advantage turn into a ton of hands as a team to make that statistical advantage turn into a lot of money for you. So it's very hard to do casually, which is why they never saw it coming. And they did this all over the country in lots of different casinos
Starting point is 00:35:34 for years and they just fleeced people. It was awesome. It was very ballsy. I want to go back. Okay. I think you touched on something that's really important, especially this year. There's a lot of people that have been driven. I don't think there's been different times. I don't want to say that, but in recent memory, there hasn't been as much fear mongering and fear in the world as there has been in 2020. Let's say recent. The world's obviously been in much worse places, but in 2020 is a lot of fear. And you said one of the skills that MIT teaches you is how to go through life and get rid
Starting point is 00:36:03 of the fear. Can you elaborate on that a little bit? Because I think there's a lot of people listening that are living in a fear-based state and would benefit from understanding on how they can eradicate fear from their minds. Sure. I'll say that in general, MIT teaches a reduction of fear in a specific context, but you can learn to apply it to other things, right? People at MIT are there to solve big problems. And so what usually keeps people from solving big problems is how intimidated they are by them. They don't even know how to deconstruct them. So MIT just sort of teaches you how to approach problems fearlessly and start
Starting point is 00:36:32 deconstructing them. And so that might be like, how do I start a business or a podcast or how do I buy my first house or whatever the case may be? So it's that very special kind of fear that they teach you to kind of get around. But I think that can apply to life, right? Because every single day is just a series of decisions, some smaller, some larger. And I think it's an incredibly useful skill if you generalize it, to just figure out how to tackle anything that's in front of you very unemotionally. I mean, one of the first conversations that you and I sort of deeply engaged in is the whole conversation of stoicism, right? And I think to some extent, stoicism is like a version of this, which is all of the emotion that we feel is us applying some kind of emotion to something that doesn't have any.
Starting point is 00:37:12 So that's a scary problem. I feel scared. Well, it's not. It's a problem. I'm applying the part where I feel scared. You're taking something that has no regard to how you feel and you're actually putting, and that's literally everything in life. Problems don't care about you either way. And your wife always talks about how you guys, and Michael does this too, how both of you, when you guys are upset or annoyed about something, you want Faith and I to emotionally match your emotion. Emotional resonance. Emotional, yeah. What's emotional resonance?
Starting point is 00:37:42 So I realized this pattern about myself and I used to do this in business a lot more, especially as I became a leader and a CEO as I progressed in my career. I constantly was trying to look at myself and see what I was doing right or wrong. And what I realized is that when I'm feeling a certain way emotionally, like I'm stressed or I feel urgent or I'm excited, I want my team to reflect that. And that's why I want us to all sort of be emotionally cycling the same way. And it's the same thing I realized when I was in a deep relationship with Faith, depending on how I felt, I wanted her to be there. And it's completely and utterly unrealistic
Starting point is 00:38:16 because people don't work that way. People have their own lives, they have their own emotions, and they frankly don't want to take your emotional journey with you. I mean, I think part of the thing about being a CEO and being a mom and being whatever is like, it's highs and lows and highs and lows all the time. And like, that's not a journey you want to take a lot of people on with you. And so I learned to just step back from asking people to sort of emotionally resonate with me. I will say that Faith has gotten really, really good. She knows like when to pick and choose the moments where she does sort of like jump on that roller coaster.
Starting point is 00:38:45 Because sometimes it's just what your partner needs. But it's something we talk about pretty openly. And in my current company, I think I've done a really good job of... I introduced stoicism to the executive team. It's how we interact with each other. Nothing's emotional. It's all factual. We don't take each other on these emotional journeys.
Starting point is 00:39:03 And we put in our nine, 10 hours a day, no one's working 16 hours a day. And we get more done than when I was 25 working 16 hours a day. So go back. Cause I know Lauren, like you're really good on attention. I want you to go back on what some, on some of the exercises that help you eradicate fear of that MIT. Like imagine you're somebody, you're a young person and you have fear to start a business or a podcast or a blog, or you're scared to put yourself out there to create content, whatever it may be, like what were the tangible exercises they put you through to, in order to get rid of that fear so that you can actually execute? Okay. Well, so let me give you the, the, all the money that I spent at MIT, probably $120,000, which like these days
Starting point is 00:39:39 is like one year, but back then it was four years was worth one statement from one professor. I went to this class, I forget what it was. And he said, what's the easiest way to solve a problem? Lots of hands shoot up. No one gets the answer. He said, ask someone who already knows the answer. That is the simplest answer to your question. And so the way that I work is when I have a problem, the first thing I do is figure out who already knows the answer to that problem. And now there's a social fear that then gets introduced because you have to go find those people and you have to reach out to them and you have to ask them to get their insight.
Starting point is 00:40:16 But I think the world is much more accommodating of people giving you their time if you're asking for a very specific reason. So you learn very quickly, especially in the tech world, to just go talk to people as your first point of entry into problem solving. The second tool, which I actually learned later in my career, is something called the double diamond. And it's how a lot of people design products. The double diamond is simple.
Starting point is 00:40:41 It's when you're trying to come to a decision, avoid feeling like you need to make a decision. Go through a process that allows you to be very expansive in terms of how you define the problem. And then slowly you start to contract. And then once you start to contract, be very expansive and tactically how you implement what you've learned. Give an example. Okay. Like, like take, like you guys just bought a house, like explain how. Yeah. That is a house, like explain how, yeah. That is a, that is a great, great example. Right. Thank you. So we just bought this house in Encino. We bought a house that we needed to remodel, right. Like literally didn't let anybody come
Starting point is 00:41:15 into the house until we had taken all the floors out of it because she was embarrassed. And like, when you've got a big house and you're going to do a remodel and you've never done one before, like that's a really, really crazy, complicated, anxiety-inducing problem. You don't know how much it's going to cost, how long it's going to take, et cetera. So it's natural to want to try to get to answers very quickly. What is this going to cost? Can we afford it? How exactly are we going to configure the house, et cetera?
Starting point is 00:41:41 But the double diamond philosophy would say, set all those questions aside because you're going to get to them. And first, enjoy the journey of thinking about what it could be. And so you start looking around the house, you start working with your designer. Oh, maybe we could build a kitchen here. Let's put some arches in here. We've got sliding doors here. We can rent and do the landscaping this way. And we just spent a huge amount of time enjoying the expansiveness of what remodeling a house could be way. And we just spent a huge amount of time enjoying the expansiveness of what remodeling a house could be. And then we got to a point where we're like, okay, we've got enough interesting ideas. Let's now start prioritizing and then putting them into a decision set. But then you get into the next thing, which is like, well, how do you find a
Starting point is 00:42:18 general contractor and what's the schedule, et cetera? That's the tactical execution of it. And you also then have to allow yourself to not have all the answers to just sort of like do a lot of stuff and see the interconnectedness of pieces and create a lot of spreadsheets and throw a lot of stuff away. And then you finally come to a point where like enough of it comes together that you have a good picture and you can actually get very, very tactical about how you get stuff done. The way I describe this, people always ask like, how do I come up with new ideas for businesses? And I say like, it's like like, a pointillist painter making a painting. So pointillist painters put little dots.
Starting point is 00:42:52 And, like, sooner or later, they all join into something. You just have to wait until there's enough dots on the canvas. You have to get enough stories from users. You got to get enough experiences. And, like, the painting just reveals itself to you. Now, it might not be a painting that's awesome. And so you might then abandon that and not follow that business. But if you just decide, I have to have an answer to this. And that's the first thing you decide. You don't let yourself go through that journey. It's a design philosophy,
Starting point is 00:43:17 double diamond, but we use it in our business every single day. But I'll tell you- What's the painter called really quick? That's just a type of painter, Pointillist Painting. Pointillist. I'll tell you, like, when it comes to, I think you can apply it to business, especially with new business ideas. Like, Lauren and I, we'll just take it into this podcast. We sat around in Mexico.
Starting point is 00:43:37 I mean, people know this story that listen to the show. We sat around in Mexico drinking margaritas and said, wouldn't it be great if we could do this podcast? And on the podcast, we could speak to this audience about things we wanted to talk to. And eventually one day, like enough people would listen that maybe we could go and get X guest or Y guest. And we started talking about all the different- I'm here. You've made it. And we started talking about like all the people that we could potentially meet doing this and authors that we admire and celebrities and this, and authors that we admire, and celebrities, and whoever, business leaders.
Starting point is 00:44:06 And we talked about all of that stuff, about what it potentially could be before we knew how to do any of it. In that conversation at that time, we had no fucking idea how to record it. We had no idea how to distribute it. We had no idea how to edit it, no idea where it lived,
Starting point is 00:44:22 no idea how to even get it up on the web. But we just talked about all of the possibilities that if we did it. And then like when we got home, we're like, okay, now that we've talked about it and envisioned in our mind like what it could be, the first thing we could do was like, we were on Google, like how do you produce a podcast?
Starting point is 00:44:37 And we figured out the equipment. And then it turned into like, how do you record it? And we did. And then after we did it, we're like, how the fuck do you upload it? And we Googled like how do you upload it? It's a pointless painting. But the whole idea was like that.
Starting point is 00:44:48 And then later on as it grew and it got bigger and it came to Dear Media, it was the same thing. Like, imagine if we could do what we did for ourselves or other people and help them. And I think that like in a weird way, I always tell my team, like, I'm trying to live like two to three years in the future. And when I say that, I don't mean I'm there.
Starting point is 00:45:05 I'm thinking about what something can be before it's there. Because I feel like if you don't do that, you can't start taking the steps to get you there. So maybe a way to conjoin the two things is the process of being expansive is one that has no fear to it. Because fear only comes when you're forced to reduce. So when you reduce things, you start to think, am I making the right choice? Am I not doing the right thing? Did I take something off the plate that's valuable? And so you need a balance of expansiveness, which is the beginning of the process. Enter the process, get emotionally engaged and invested in the process when there's no fear involved. Because there's no fear in
Starting point is 00:45:44 throwing ideas up on a whiteboard. It's only when someone says, let's not do this or that, that it enters. And I think that's kind of a lot of what they teach you at MIT, which my process is go talk to people because talking to people is not a fearful thing. It's an amazing thing. You get to learn a bunch of stuff you didn't know. So I think it all kind of is the same thing, but I think you guys have been so successful because intentionally or not intentionally you never have any fear when you talk about the things that you're doing like when you talked about like building a vibrator i'm like there's so many vibrators like how are you going to do that and like that didn't cross your mind to think about that right it crossed
Starting point is 00:46:19 your mind to think about like how you could enter the market with something that was like interesting and different and unique for your audience and you were expansive about the approach to that as opposed to all the constraints that maybe make you not get to that decision. It's very Tony Robbins. Tony Robbins is live in abundance, not scarcity. And I think that that is the theme of this year. It's like, how are you going to choose to look at COVID with abundance or scarcity? And I think for me, like I've just tried to look at this year of all the things I can do and the possibility. I want to go back to when you sold. And I don't know if it was your second company.
Starting point is 00:46:51 I think it was your second company. And you had a huge buyout. That was the first company. No, but. Well, I started my first software company when I was 14. But what about. What about Trana? No, that was a company that didn't work out.
Starting point is 00:47:02 We can talk about that too. Oh, well, let's talk about that. Yeah. You got to have some points in the fail board too. Let's talk about the fail board. I want you to talk about both because I think a lot of people might be listening. I didn't know that. I thought that that did work out.
Starting point is 00:47:12 No, it didn't. And this is important for you because you're an accomplished entrepreneur and you've had many ventures and have a successful venture right now that's also backed. But talk about some of the losses too because I think people,
Starting point is 00:47:23 sometimes they'll tune out like, oh, this guy's just winning, winning, winning. It's like, no, there's losses along the way, right? And you've figured out how to continue to keep going after the losses. And a lot of people don't do that. I'll tell you a lesson that I learned after my first company.
Starting point is 00:47:36 So I built and sold my first company when I was in my early 20s. The 20s is like a time for hubris, but hubris can kick you in the ass, right? What you don't realize after you have your first success is you attribute everything you did to your success. You never think I was successful despite the fact that I did X, Y, and Z. You never write that down on a piece of paper. I read a book called What Got You Here Won't Get You There. And the whole, I'll save you the $19 is like, when you are successful, think about how lucky you got
Starting point is 00:48:10 because of some really stupid ideas that you had along the way. So what happened is when I went to go with my second company, I just did all the stuff that I did in my first company and it didn't work. And I just thought it would work. Do you know there's a name for this? What's that? There's a name. I'm reading Laws of Human Nature by Robert Greene. And it's called the Success Delusion. Okay. Yeah, perfect. Yeah.
Starting point is 00:48:31 I was highly delusional about that. And of course, then what's really tricky about it is, at least in my experience, and I've seen other people go through this as well, is it's not like your ego doesn't let you come to that conclusion quickly. So you do your next thing. It's not going as well as your first thing. You can't really understand why. And so you just start applying these very brute force mechanisms
Starting point is 00:48:56 to try to get through it. Oh, I need to put more money into it. I need to spend more time on it. I need to do all these kinds of things. It takes you a long time to come to the conclusion that there was a fundamental flaw in that business because what you're really doing is you're unwinding your ego and not the business. Sometimes the business will unwind faster than your ego. But it took me a good six, seven, eight years of really pushing hard against a business that just wasn't going to have the same success as the first one to realize this success delusion, you said, that I had from the first business. I had some
Starting point is 00:49:30 other successes on the way and some other failures. And the stuff that I'm working on now, I think, is trying to take all of that stuff, put it in the hopper and be very methodical about steering away from the rocks and being conscientious about not making some of those mistakes. So what does it do to your ego per se when you have a big success and you think you're on top of the world and you're doing all these things and opening bars and thinking you're the man
Starting point is 00:49:54 and then you do something in it and you fail like you did, do you start to question like, oh wait, was I just lucky? Did I, do I not really have this? Like, what does that do to the mind? Or do you just say, hey, fuck that one up and get back on the horse? Well, I mean, I think like entrepreneurs always get back up on the horse, I think, no matter
Starting point is 00:50:11 what. So I don't think I ever thought about that. I think you just, the human mind is incredible at either taking credit for things or blaming things on externalities that have nothing to do with them, right? Like those are the two modes. And so. In human nature, it's called grandiose. Okay. That's great. We have to say like grandiose. In the first business, like I was the genius. Everything I did was smart. We built this business, like, of course. And then all this
Starting point is 00:50:37 to see confers, it was like, oh, it was, yeah, it was COVID or it was a bad time in the market or like venture caps didn't understand what I was trying to do, et cetera. And so it takes just a really long time to finally, finally, finally chew to the center of the tootsie roll and realize that what's in the middle is where you go. And it took me like, yeah, it took me a decade. And when you have had some success, it's really easy to play the escapism game from that thought process. Because how many of the second six movies did george lucas make before he finally realized they sucked right and the star wars movies like i think it was like on movie like nine that people were like seven that people were finally like they're not very
Starting point is 00:51:14 good i don't know if he's realized that yes he actually there was there was an interview i read where he finally realized like on the last three or something it breaks my heart you love it though i'm confused i'm gonna go on a bit i'm gonna get a muscle here for a second it breaks my heart to look and it took me a long time because i waited till episode nine was out to say they could have been seven eight nine i think disney did you told me you know but you know why because i waited i was like they're gonna redeem it they're gonna seven i get his little reset he didn't really have a lot to do eight out eight i was like, no, trust me. Nine, they're going to redeem it.
Starting point is 00:51:45 They fucked it up. Okay, I'm going to say it. But one, two, three wasn't so bad. No, no, no. One, two, three was, I mean, like in terms of chronology. Yeah, chronology. Four, five, six was the best. The originals were the best.
Starting point is 00:51:55 They're masterpieces. One, two, three wasn't as bad and compared to seven, eight, nine. Rebels. What ended up broke. Okay. I don't know what you're talking about. I have a question for Neil. And Han Solo wasn't that bad either.
Starting point is 00:52:04 I was just going to say though, but what you were doing is you were ascribing the externality phenomenon to George Lucas. Like there's no possible way he could make a bad movie. It must be an externality. But he didn't make 789. They kicked him out of it. Disney did that.
Starting point is 00:52:15 I know. But like he has come to appreciate that he was incapable of hearing from anybody because the movie made a billion dollars, right? Even though people didn't think it was very good. Let's talk about now. You are working on such a fucking cool project, something that I want you to share with the audience.
Starting point is 00:52:30 Let's talk about how you started realizing that there was white space to have this idea and what it is now. Cool. So Trotta, you mentioned that. When Trotta finally folded, I was living in Boulder at the time. Boulder is a very small town.
Starting point is 00:52:46 I was a known quantity because I had built a big company in Boulder. So people were watching what I did. We also had taken over the largest building in downtown Boulder on the main street. And they literally like, I was there literally like when they craned the sign off the building, when we folded, it was a very emotionally challenging thing. It's like something out of a movie when they're taking down the... It was sad. It was sad. And so I was like,
Starting point is 00:53:08 I got to leave. I just need to go lick my wounds somewhere. So I bought a one-way ticket to Melbourne, Australia. And I got there one day before my 40th birthday and I knew zero people. Literally zero people.
Starting point is 00:53:17 You just went alone? Yeah. I didn't know this. I actually didn't know this. By myself, I decided to write a book and play some guitar and be very bohemian and lick my wounds wounds until they were healed you probably would have annoyed the
Starting point is 00:53:28 hell out of me then yeah yeah i would have yeah yeah we yeah we definitely would end up being friends at certain points in life i wouldn't want you to be playing guitar and playing bohemian music and licking your wound i would have been irritated yeah yeah i'm glad i met you after that uh i was still really fun i did actually introduce fireball to Melbourne. So we can talk about that story at some point. When I was there, I just was sort of like poking around and I came across this woman named Kayla Encinas, who I'm sure is this now 30 something year old woman in Adelaide, Australia, who built this body guide. That's not the bikini body guide 90 day.
Starting point is 00:53:59 She was kind of the originator of this kind of 90 day format. And I was just in awe of how much of a cult and a community she had built online around this guide. And I know you've done some very similar things, and it's incredibly impressive. And I started kind of staring at it, and I'm like, I feel like I could do that. I'm really interested to see the power of social selling. And so I came back and I founded a trainer here in LA who was a fitness trainer to a lot of Instagram influencers at the time. And literally hired her, taught myself Photoshop, hired a white room, got a photographer, and just decided to make one of these things myself. And we made this beautiful
Starting point is 00:54:45 135 page guide and we took us three months to make it and we put it out and we basically, you can't sell out of a digital edition, but we basically sold enough to cover the cost. And I was like, oh, that's interesting. And this woman that we hired, her name is Jane Glisson, she's an awesome trainer. She's still a trainer here in LA. She had like 30,000 followers at the time. And I was like, okay, this is the future. So I started staring at the influencer market in 2016. And what everybody was doing at that time is they were creating these businesses that said, okay, there's these influencers with these big followings on Instagram and there's brands that want to work with them, brands know how to do that. So let's sort of like create this company that sits in the middle and let's introduce
Starting point is 00:55:27 them and we'll help them run campaigns and we'll take money from doing that. The business Trada that you mentioned that I failed at did something very similar for people that were helping people do ads on Google. And one of the fundamental structural parts of the problems with that business is that we sat in the middle and we helped run the campaigns. And so when something went wrong, they called us. And so it meant that we had to have a ton of staff and we ended up being a digital agency. And so we realized that all these companies that were helping influencer marketing company, sorry, influencers and brands were essentially going to become agencies. That's fine as a business,
Starting point is 00:56:00 but it's very hard to build a high-scale venture business. So we stepped back and said, what's going on in the world that we think is undercurrent here? And what we realized is that people were starting to think of being an influencer or creator, blogger, or whatever you want as a profession. And we thought that this was the first digitally native profession. Really, it's a profession that has come out of the internet. What year is this? 2016. And so we said, well, okay, so if you've got a whole generation of people coming online
Starting point is 00:56:30 that are choosing a new type of career and inventing a new industry, what's an interesting business for them? And what we realized is that none of them are using LinkedIn. Because LinkedIn is all of the things that influences are not. It's about chronological jobs, not about the projects you work on. It's very tech-based. It's not visual. It's not live and dynamic. It's not collaborative. And so we said, we think there's an opportunity to build a LinkedIn for influencers and creators. We started building a business. It's called Influence.co. And now fast forward four years later, especially with COVID
Starting point is 00:57:07 putting influencers and creators and TikTok in front of everybody, I think we can all kind of agree that the influencer and creator professional path is one that a whole bunch of Gen Z people want to follow. And it turns out that we were right. They weren't doing any of this on LinkedIn. And so a lot of them are doing it on our platform. The thing that we're really excited about by this is that we actually think that everybody that's sort of growing up now is going to have a very different experience of being a professional and their experience of being a professional is going to be very related to their passion. Sat in my room and made software, but I was kind of a bit of an unusual character there. Most people's first job is pizza delivery or working in a movie theater, whatever the case may be. A lot of kids' first job is selling UGC
Starting point is 00:57:50 on Roblox or making Minecraft stuff. Or if you've got 5,000 followers and it's clear where you live, the pizza shop down the road is probably going to give you your first professional job offer to work for them. That's the world that Gen Z is growing up in their exposure as a professional is people that are working on passion projects I want to build a podcast I want to build a website I want to create content it's much easier to say to kids now chase your passion because your passion can manifest itself in so many different ways as a business when I was a kid and my parents would say that to me I'd be like what the fuck does that mean like I didn't have I mean Lauren's a perfect example she started at a time where we're like, what the hell is a blogger?
Starting point is 00:58:26 But she stuck with it and like stayed with her passion. For me, that was always very confusing. And I think for a lot of people that are in my age demo, maybe yourself, like it was confusing because I'm like my passion, what does that mean? Like I can either go get a job here. I can work at this car. There was no opportunity to go online and do any of this stuff. Now there is.
Starting point is 00:58:42 So now what's happening, there's this massive surge in tools and infrastructure for people that want to monetize their passion. And part of that is finding- It's very realistic now. They can make a lot of money monetizing. Totally. And they can also find people to work with because sometimes it's more than just being a solopreneur. Like a podcast is a complex thing of editing and content to production and marketing and things like that. There's this whole infrastructure coming up in terms of like tools and things for influencers, but there isn't a professional network that they can join and find other people. Our vision, which is originally for sort of influencers to be successful professionally has expanded to creators being successful professionally.
Starting point is 00:59:18 And we believe is going to spin into a whole generation of people that work remote, follow their passion, think of their resume as the projects they worked on. I was talking to someone today and I realized I was around before LinkedIn was in existence. And so I remember when LinkedIn started thinking, who would put their resume publicly online? That made me bristle. It sounded weird to me. Now it's totally normal. Think about this, right? In five years, if you're going to get hired for a job, they're going to be like, cool, show me what you've built. Like, because you had better have built a website, a Squarespace, a podcast, an Instagram, right? Show me your digital footprint for sure.
Starting point is 00:59:57 Yeah. Not every single job is going to be like that, but, but a larger and larger amount of the surface area of jobs are going to be kind of like content and knowledge working jobs. And so the idea of like what we have as an influencer resume now five years later makes tons of sense. And so we're sort of skating where the puck is, as they say. And we just see hundreds of millions of people coming online who are going to interface with businesses very different because Gen Z is also going to be on the hiring side of that. And so they're not going to care about your LinkedIn resume that says, I was director of marketing at XYZ company. They're going to be like, show me the thing you did. And we're the platform where people are building that professional
Starting point is 01:00:32 presence and engaging with people. And it's just like, it's been incredible in businesses like Skyrock. What's funny is like, there's one of my favorite books of all time is Larry McMurtry's Lonesome Dove. And there's a line in that book. It says like, yesterday's gone down the river, Nate coming back. And I live my life like, I really, I mean, Lauren will tell you, I look, I very rarely look backwards. I look forward on it. Even if I fuck up, I'm like, well,
Starting point is 01:00:52 and my, honestly, in my family, people get mad because they're like, why is Michael not more remorseful? I'm like, it does me little good to go look backwards. It doesn't, I don't think it does really any, I mean, I could acknowledge things that have happened in the past and past mistakes, but I have to look forward. That's just how I live.
Starting point is 01:01:06 But I'd be lying if there wasn't a part of me that thinks like I was that kid that grew up with like Star Wars and X-Men cards, opening packs and going to the car shop. I was that kid that played a shitload of video games. I think I made my first dollars when I really think about it, like selling some rare card to some older kid in the neighborhood. And at the time, and this is what I think young people should hear, that was something your parents were like,
Starting point is 01:01:30 hey, quit fucking around. Quit playing the games. Quit playing with the cards. I was building the Lego sets and mismatching them and building some random thing that didn't exist. And if you think about that now, there's kids making thousands and thousands, sometimes hundreds of thousands of millions of dollars
Starting point is 01:01:42 opening packs of cards online, making Legos online into something weird, playing video games. There's people that are multi, multi-millionaires from that. And it just wasn't an option. And the point is, if you are growing up now with this technology, you can turn any of those passions that people 10 years ago called, hey, that's a waste of time into something that makes hundreds and hundreds of thousands, millions of dollars. I'm honestly a little jealous of it because i would have been one of those you just said you don't look in the past and you just completely got nostalgic with us for a minute no
Starting point is 01:02:11 i said i typically don't that was the lie another lie by michael bostic volume 8000 you weren't listening i said i i said i typically don't like those circumstances little lie today no in those circumstances i do think about and the reason i want to point it out is because i think there's a lot of kids that are doing like, you could turn that into a business. Like there's kids right now I see online going live streaming, opening packs of cards to pull rare Pokemon cards. And it's having a huge, like there's, their cards are coming back. Yeah. I mean, the kid that makes the most money on YouTube right now is the kid, Ryan, who does unboxing videos. Good for Ryan. It's insane. Ryan's like eight years old. Well,
Starting point is 01:02:41 I'm just jealous of Ryan. I should have been doing that. So tell us about influence. Give us, if there is an influencer or a blogger or a vlogger who's listening, how can they utilize it in their advantage? I think, well, first of all, the platform's free. It's just like LinkedIn. You go in, you set up a profile. And there's a lot of different ways to use it. The most obvious way to use it is look for brands that are looking to work with influencers.
Starting point is 01:03:06 We have 70,000 brands on the platform now. It's sort of skyrocketing. I think there's almost 1,000 live opportunities to work with brands. That's a very tactical way to think about using it. But it's very effective for a lot of people that are starting their career to get their first job, to create the first content, to have the first professional experience. But what's emerging on the platform is influencers are starting, well, I would say maybe four or five years ago when we started, I think influencers were a lot more cagey about how they worked. YouTubers tended not to talk to each other and share secrets with each other. People were much more siloed in terms of how they thought. It's become a much more collaborative environment.
Starting point is 01:03:44 And so we see influencers and creators now finding connection and working with each other. much more siloed in terms of how they thought, it's become a much more collaborative environment. And so we see influencers and creators now finding connection and working with each other. And one of the easiest way to meet someone to work with is if you're both working on the same brand's campaign. So if I'm working on a campaign for Halo Top Creamery, and I know 25 other influencers are working on Halo Top Creamery, I can figure that out and I can reach out to them. We can have them shoot content together or see what they're doing. Maybe they live down the street from me. And so we're creating context for people to start professional networking with people who have similar passion. That's what I think is the most interesting use case happening on the platform now and that we're really building into the future for. It's a sea change from when we started,
Starting point is 01:04:23 how much people are, they'll create a little DM group on Instagram and they'll reach out to like a mommy blogger who like their content and be like, hey, do you want to join my little group? Like either like a comment pod or even just like basic collaboration stuff where they're like, which picture do you like better? They're starting to organize and collaborate really well. We're helping facilitate more and more. We have 200,000 people on the platform all over the world. It sounds like community is the word. Yeah. So we do three things, content, commerce, and community. Those are the three things we do. Commerce is finding work with brands. Community is finding interactions with other influencers.
Starting point is 01:04:55 And then we create content for and about the industry. We hired the editor of Rolling Stone, who was the editor of Billboard, to launch a publication called No Filter, which treats influencers and creators as cultural touchstones. We witnessed during COVID that essentially all of the storylines that were going on were seen through the lens of influencers and creators. And so we decided they needed a very legitimate publication to start talking about them. It's everything from what's going on today with Charli D'Amelio's sort of story about launching her TV show to how different to Snapchat. We just did something with Quincy, actually, where they launched profiles in Snapchat, which I've been saying for years is something they need to do. And we did a story on the first big Snapchat influencer
Starting point is 01:05:40 who's taking advantage of profiles. It so genius though because i feel like you're one of the first platforms to take influencers seriously i think like you're treating it like rolling stones magazine you just said treated musicians like like all of a sudden musicians musicians started to be looked at as not just playing a guitar but maybe they're selling merch at their tour and it was like a full approach but let me ask like this is a question for everybody for the world like how could people can you get that piece of pepper off your nose no i'm serious yeah you do how could i don't care how could people not take people with millions and millions of people watching them seriously i've never understood that i think it's like a resistance to taking how could somebody make a living taking pictures of
Starting point is 01:06:21 themselves or things they like like that's the resistance. But if I'm a business or a brand or a network or whatever it is, and I see that's where consumer, when I say consumer customers and attention is, that's an ego thing. You got to take those mediums seriously. So I think there is a massive shift happening across creation in general, where a decade or two ago, you had to have a high investment in production for people to take the content seriously. And the production cost has been coming down and down and down and down. Everybody from rappers doing mixtapes on SoundCloud to you guys are producing your own podcast here
Starting point is 01:07:02 to what's going on on YouTube. And I think it's been hard for the established entertainment establishment. And like Quibi is a great example of like that sort of like old school, new school thinking kind of hitting a conflict there. So I think a lot of people are just dismissive of it because like, oh, you shot that on your iPhone. So how valuable could that be? Quibi was an example of an arrogant person thinking that because they had that experience and production value that they could come in and do it better for that audience in this medium. I remember reading it.
Starting point is 01:07:29 People might not like that take on it, but it's true. Yeah. I remember reading a story. The success delusion. There we go. And so what was interesting though is Jeffrey Katzenberger, I remember reading an article where he was like, rather than spending a million dollars a minute, we're spending a hundred thousand dollars a minute. And he was like,
Starting point is 01:07:46 that's transformative. I'm like, how about spending $10 a minute? That's what people are doing on TikTok. Or how about spending, some people are spending nothing. Something Navy sold a million dollars in 30 minutes with no marketing besides their own platform. Yeah, exactly. So the other thing that's gone on, which is, so one is just kind of like a general appreciation that you don't need high production costs for it to be quality. The second thing that's gone on is that I think influencers have gone through this journey where they were looked at as a marketing channel for a long time. They were just another form of media. I'm going to buy that billboard. It has those demographics. That's how many people see it. To an e-commerce strategy to now it's much more of a media and entertainment vehicle and of course it's like still the spectrum across that broadening it out from marketing strategy i think has legitimized it culturally in a really valid way and it's the reason that we hired nick from from rolling stone to build this this publication no filter because
Starting point is 01:08:41 we want it to be on the forefront of telling stories with that level of seriousness. And now really like there's pretty much nobody that writes about influencers and creators the way that we do, right? The New York times will write some stuff every once in a while. It's very avant-garde way that you're doing it. Yeah. And it's great.
Starting point is 01:08:56 Like we're starting to get recognized by, you know, big talent, big talent managers, people are starting to come to us. You do it in a way, like a lot of publications do in a way where it's like, these are like secondary forms of people. Like these are like, these are like secondary forms of people. Like these are like, these are like people that we don't, that like we talk about, but we don't take as seriously as like an A-lister. And to me, like, it's a miss. Like a lot of these big publications are going to regret that decision because they're going
Starting point is 01:09:16 to be looked at. And if you go back in history, they're going to look and be like, they should have taken it seriously the way you are, because it's this resistance by establishment people that is going to ultimately be their undoing. I think Nick said to me, the state of the art is what he calls journalistic tourism. So just to pick a random example, Men's Health Magazine writes an article on a male fitness influencer. It's one page, but the rest of it is normal men's health stuff. That's journalistic tourism. It's like, oh, that's cute. Everybody look at that while we're driving by on the bus. We're like, no, that should be what
Starting point is 01:09:48 every page of the magazine is about. So that's what we're doing. Let me say this too. This is the example when I'm actually haven't talked about it on the podcast, but I think you will get this because you've operated businesses. If I tell you as a business, hey, Neil, I want you to put up two podcasts a week. I want you to put up two podcasts a week. I want you to create unique content every single day with different graphics every week. I want you to have different captions every week. I want a blog post to accomplish that. And I also want a YouTube video every week.
Starting point is 01:10:14 How many people you hire for that? Well, if you're Lauren, she just does it herself because she's a genius. But my point is- I mean, that's a team. Okay. That's a team for any business. Same with Dear Meena. Same with-
Starting point is 01:10:23 Not going to take the success delusion. Here's where I'm going with this. Any company, product-based company, media company, entertainment, whatever, that's a team. You just hit it on the head. Same thing with your media. What people need to understand about most influencers is it's them, their iPhone and their, and, and them, like maybe they might have a freelancer. I might have a quote, and they're creating all of those things themselves. That is a media component, a media entity. Like that is typically, if you want to do that as a company, you hire a full team. And that's why I think people are missing the mark with influencers is like, they're producing so much content at such a rapid
Starting point is 01:10:58 pace at such a massive pace with limited resources, limited teams. And that in itself should be taken seriously. Because if you can work with an influencer or a content creator to do that, and it's one or two people, as opposed to hiring a team of 10, which in our world is like, what is that? Half a million bucks a year in hires. Like that's why this medium that's in these people need to be taken seriously because it's just, it's, it's, it's a lot of fucking content and it's impactful. Well, and so- And cost effective. As the opportunities for distribution scale hugely for influencers, more and more people have to bring on other people.
Starting point is 01:11:32 And so kind of back to my original thesis, you've been doing everything yourself and you're like, oh man, I just need someone to do audio editing. It's not my forte. Where would you go online right now to find an audio editor? If you were making a podcast in Boise, Idaho,
Starting point is 01:11:45 like would you go on LinkedIn? Like maybe, maybe not? If you were making a podcast in Boise, Idaho, would you go on LinkedIn? Maybe, maybe not. I'll tell you this, y'all. Bad luck doing that. We've done that. It's hard. It's hard. We're creating an incredible density of people
Starting point is 01:11:53 that are not necessarily the talent. They're around the talent too. This is the industry that we're talking about. And what gets really fascinating about this is you kind of go out a few years. Not everybody's going to be doing it full time. So a lot of them are going to also have regular day-to-day jobs. But all the people that are on the platform, all the brands on the platform now that are looking for influencers, I guarantee you all the jobs that they're hiring for in the next five years are content creation,
Starting point is 01:12:16 editing, marketing, digital media. So all the skills that you're learning doing these things are exactly the traditional jobs that you're going to have as your day job while you do your kind of like multi-business card passion projects on the side. It's so funny because when I launch product, I'm going to hire someone to obviously help produce content. And the person that I'm going to hire, I want to be a 19 year old because I want it to be someone so youthful that's so on the pulse that sees things evolving. I don't want someone who's even been a practitioner because the 19-year-old has been a practitioner of content by just utilizing Instagram every day. So how many resumes on LinkedIn have you looked at
Starting point is 01:12:59 that tell you if that person is a good practitioner? I would never look on LinkedIn. Zero. I'm going to go to influence. But I guarantee you, if you take a look at something like influence's version of a resume, it's very visceral. You can very quickly understand the quality of someone's work.
Starting point is 01:13:13 It's a genius idea. Yeah. Let's take a left turn real quick. And I think. Have we not taken 20 left turns this conversation? So we've come all the way back to the beginning. How many left turns do you want? Because there's a lot.
Starting point is 01:13:23 We're literally like in Miami right now. I have the benefit. You have the benefit as well, Lauren, of knowing Neil pretty well. And so I'm trying to extrapolate a lot of what's in that big brain of yours for this audience. Stop using big words to impress Neil. I have to. What does extrapolate mean? Bring out.
Starting point is 01:13:40 Extract. Extract, yes. Is that true, Neil? Yeah. Listen, I'm not. Checking with Webster. I'm not an MIT guy, but I'm not some bum. But you'll bet.
Starting point is 01:13:48 I didn't fall off a melon truck. Never disagree with the host. Yikes. I told you I didn't fall off the fucking melon truck. You went to SCX University. Yeah, and I got an A+. Okay. I want to talk about... Got it off the wait list. There's people sitting there right now, maybe listening and saying, I have
Starting point is 01:14:04 this business idea. I have this content idea. I don't have any money. And in order to do this, I need money. And there's a lot of people that think that way, right? They look at your success with influence. They'll look at your media. They'll look at these ventures. They go, well, that's easy to say because they have money. Dear Media was actually the first business that I actually raised outside capital for. And you were very helpful in that process and coached me a lot along the way. You've done it multiple times. I want to talk about when it's appropriate to bring on money, the different types of money, whether it's angel venture and how you think people should go about it. Because I believe that you should hold off as long as you can to bring on
Starting point is 01:14:38 money unless X, Y, and I want to talk about the different types of reasons why you should. And I think you've done it so many times that I kind of want you to speak on it so that people that are thinking about starting a venture and bringing on capital, one, they can learn how, and two, they can learn when is appropriate because there's nuances there. Yeah. I mean, so look, I've been fortunate. I think I've raised something like $75 million in my life across different businesses. To me, it's very simple. You only raise money when you know what you're going to do with it. And knowing what you're going to do with it means there's an opportunity in the business to take it to the next level. Businesses are like climbing
Starting point is 01:15:14 Everest, right? You don't just put on an oxygen pack and head up the hill. You go to base camp one, you hang out there for a while, you acclimate, you kind of get used to that, you get to base camp two. And you need more stuff and things to go from Basecamp to Basecamp. If you've identified what Basecamp one is, great, raise some money. That might be like charge up your credit cards, might be like get some money from your friends or parents. Eventually that turns into doing a venture round, right? Which could be millions of dollars.
Starting point is 01:15:39 But never just raise money because it's what you hear other people do. And I think one of the things that you and I talked about a lot when you're raising money is figure out what you want to do with the money first and then raise that amount of money. Because you should always raise enough money to get you to that base camp even when some things go wrong. But not never. Sometimes raising a ton of money is just a way to elbow everybody else out of the industry.
Starting point is 01:16:03 But generally speaking, you shouldn't raise tons more money than you need because you'll spend way more money because it's sitting there burning a hole in your pocket. And then you give away too much to your company. I raise money personally. I don't think I've talked about this for Dear Media because there's three things. One, I had self-funded it to a point where if I didn't, I was not going to be able to scale the team where I needed to be to get it where we are now. Two, the podcast space in general, when Lauren and I first started five years ago, it was like, what the hell is a podcast? What are you doing? Like it was kind
Starting point is 01:16:34 of people, it wasn't so established. It's gotten very competitive. Obviously everyone's talking about podcasts. And with that, it's gotten much more expensive to operate and the competition's gotten thick. So in order to continue to scale and get ahead, I knew when we need to do that. And three, like you said, to get to base camp, to be able to make the investments into the business that I knew I needed to make both with personnel, with office space, with studio, with content, with marketing, like we needed to do it for this particular business. But in other businesses we've operated, like for example, Skinny Confidential and things like that, we've raised $0 because we have a need to, we could bootstrap in the business cash flows itself and we can get to where we need to go without. And I think it's something people should hear about because I only did it because I knew for Dear
Starting point is 01:17:13 Media per se, we needed to do it in order to compete with other businesses and get ahead. But for the other things we didn't. And so we don't. Yeah. I mean, sometimes you have to have scale. So for example, in the advertising world, it gets a lot easier to sell a million dollars of advertising than it is to sell a thousand dollars. And that might seem counterintuitive to people, but any kind of advertising that gets sold comes with effort on the advertiser.
Starting point is 01:17:40 They've got to place the order. They've got to look at the results. They've got to calculate how effective it was. And if it's a small amount of money, it's not worth their effort in doing that. For example, getting a bunch more people onto the network and scaling up the amount of listeners, things like that. It actually could make it easier for you to go
Starting point is 01:17:56 and approach a whole different class of customer that might want to do across the network buys or things like that. And so sometimes that's just what the game is. Yeah, you could not go and do, I won't say the brand, but you can't go and do a million dollar brand deal with six shows
Starting point is 01:18:07 because there's not enough scale for that brand to deploy their budget. When you have 60 shows, they're like, it's actually, they'll come and say, hey, like I need
Starting point is 01:18:13 that kind of scale to do it and it makes it very easy. And you would spend three times as much effort to close $10,000 of advertising as you would to close a million dollars of advertising. It's like those are good reasons
Starting point is 01:18:23 to raise money and to go do things if you have the product which you guys do that people want. But advertising. It's like, those are good reasons to, to, to raise money and to go do things. If you have the product, which you guys do that people want. But if people are thinking about, okay, so we're going to get in the weeds, but say people are starting out and they're like, okay, I think I have a business that needs some capital. Like, where would you suggest people start? Because it's, it's not as easy when you don't know where to go, who to go to, how to go about it, what to do, how to present a business. And I think you've done it so many times and now I've done it that maybe you and I are like, I want to go back to early, early days of like, how do you even think about going and finding a way to raise capital? So, look, I think what people should not start off thinking about is how to raise capital.
Starting point is 01:19:03 I think they should start off thinking about if their idea is a good one to spend their life on. Oh, that's such good advice. So when I started my companies early on, it was hard to validate an idea. It's really easy and cheap to validate an idea right now. Let me give you an example, right? Like, let's say you guys want to add a new product line to Woo. You can go on Google. You can write a bunch of AdWords
Starting point is 01:19:25 ads. You can run it against a bunch of keywords that you think people would type in. You can send that people to a beautiful landing page that you could build for free in a product, one of 10 products that are out there. And you could offer something that just asks people to enter an email address to get on the pre-sale list. And you just run the numbers, go spend 500 bucks. And you'll figure out very quickly if people want that or not. The amount of energy spent building businesses and thinking about how do I raise money and who do I hire someone and whatever, where the business itself shouldn't even be being built, is probably 80% of the energy in the business world.
Starting point is 01:19:58 So I think what people don't understand is we are in just the bell epoch of product testing now. You just don't need to spend any money to figure out if people want what you are thinking about. And like there's nothing disingenuous to not having a product and asking the market
Starting point is 01:20:13 to sign up for when you do. It doesn't cost anybody anything to put in an email address. I mean, Kickstarter's validated that. Yeah, exactly. I mean, that's a very good example of it. So that's like, I would almost just re-vector
Starting point is 01:20:22 the conversation to like, how confident are you that the thing you're working on is worth your like life energy? Because businesses are hard. Okay. And say you do that, then like, what are the first tangible steps of people? Like, are they writing a business plan? I mean, like we're putting together a deck, like it's, it's, it's hard. Yeah. I think like in the old days you would write like a 20 or 30 page business plan. And these days you write like a 20 or 30 page deck, right? And the number of words is probably a hundred X less. I actually think that it's really useful because human beings are very
Starting point is 01:20:49 good at holding like amorphous thoughts in their head and thinking to have them really figured out. And so business ideas are usually like pretty hazy when you're forced to like write them down into like a coherent narrative on a deck, just writing them down. Even if you never gave that deck to anybody is a very like hard process that you'll realize you've got a lot of holes in your plan. Once you write it down, go pitch it to five people, your friends, and you'll realize in the first two or three pitches that you're really, the things you wrote down still have a huge amount of holes in them, right? Like that's the process that you go through until you finally have something that is like super, super coherent. And that's kind of like when you can start to think about other parts of the business.
Starting point is 01:21:28 Just playing off what you said, what I would say too, is instead of thinking about how can I raise money, I would put yourself out there online. And what you said is like getting the consumer feedback. So I would start building your online profile up on whatever that is. So say you want to be the expert in red wine, because Neil's drinking red wine at 2pm. So are we. So say you want to be the expert in red wine, like start making yourself a resource for red wine. So when you launch red wine, you've content marketed to be the red wine expert. Like, I think it's so important to content market. Well, I also think too, people don't realize that money is not always going to
Starting point is 01:22:05 solve the problem. If it's a bad idea or if it's not a viable business, like the money's only going to make it worse in a lot of ways. Yeah. Look, I agree. I mean, I think everybody has something that they're passionate about. So I don't know if you guys ever talk about like a thousand true fans concept on there. I love that article. Talk about that. So the thousand true fans article, which is I think now a book, was very simple, which said, if you can get a thousand people to pay you a hundred dollars a year for whatever it is that you are an expert in, you can make a living, right? It's a hundred thousand dollars a year. And when you think about finding a thousand people in the whole vast world of the internet to spend eight bucks a month on something that you are knowledgeable
Starting point is 01:22:45 about and that you can convey to them. It doesn't seem like a very complex problem. This goes back to not being fearful about a problem, right? So if I said, you are into motocross and you need to go make a hundred thousand dollars a year for something related to motocross, you might be like, how the hell do I go do that? But if you're like, okay, you only need to get a thousand people to pay eight bucks a month for some kind of content you can create related to motocross, you might be like, how the hell do I go do that? But if you're like, okay, you only need to get a thousand people to pay eight bucks a month for some kind of content you can create related to motocross, it starts to become a much more tangible problem. Maybe you just summarized the races, right? And so someone didn't have to go walk to the mall or if they missed out on it or maybe whatever, you researched really cool motocross tracks all over the United States and built an ebook or something. I don't know, making stuff up. I think the 1,000 True Fans idea was really a mechanism for reducing people's
Starting point is 01:23:29 fear of jumping in and figuring out how they could turn the thing that they knew about into something that made them a living. And most people can probably live fine off of $60,000, $70,000, $80,000. So you probably need 600 True Fans, not even 1,000 True Fans. No, I love that article so much. You got like even 500 people at 16 bucks or even if you want to build a million dollar business, 1,000 people at 1,000 bucks a year. You can get someone to spend $1,000 a year through the whole year.
Starting point is 01:23:52 No, I love that article. We reference it a lot because I do think it does exactly what you're talking about. It eradicates fear. If someone is a blogger or an influencer and wants to join your platform, how do they do it?
Starting point is 01:24:02 Where can they find you? Pimp yourself out. It's really simple. Our platform is influence.co. And you just come and sign up and the site hopefully is- No cost to influencers. No cost to anybody. I mean, if you're a brand and you're looking for influencers,
Starting point is 01:24:17 you can go sign up for free. You can literally create a campaign saying, this is the influencers I want to work with. And you can start reaching out to people for free on the platform. And if they want to work with you, you can work with them to people for free on the platform. And if they want to work with you, you can work with them for free. Like we don't make any money off of that. We only make money when people become power users
Starting point is 01:24:31 and they want to message a ton of people or apply to tons of brands or brands want hundreds of applicants and they need our help to kind of like get attention on their campaign. And in that case, they're monetizing as well. Yeah. Or building a campaign.
Starting point is 01:24:43 Exactly. So it's worth their time. It's a very like, it's just a very, very fair system, right? A win, win, win. Yeah. You come in and if you really want to go deep on the platform, you can pay us. And it's like, you know, for an influencer, it's $48 a year if you ended up going to the pro version.
Starting point is 01:24:55 And for a brand, it's 600 bucks a month. So it's very affordable. I was featured on No Filter. We did an article there. What is the Instagram handle for No Filter and Influence? We actually have at No Filter on Instagram and on TikTok. We're actually making our first TikToks now where we summarize influencer and creator news. On Twitter, it's No Filter Pub.
Starting point is 01:25:12 And you can just go to nofilter.influence.co. Okay. And then influence on Instagram? Influence Co. And what are you on Instagram if people want to stalk you and Faith and Aspen? Home address, social security number. What's your thumbprint? Yeah.
Starting point is 01:25:26 How big is your personality? Oh, I'll leave that one. Yeah. If you want to see an ode to my wife and to my daughter and to my dogs, you can go to my Instagram. It's Neil R1, N-I-E-L R1. Oh, I never know that. I was always like, what's R1?
Starting point is 01:25:42 Wait, what's one though? Actually, that came from at MIT when I went to school there, you had to pick your email address. And for some reason, there was a Neil R. And so my email address was Neil R1. And I kept that as my handle for the rest of my life. I love it. You should just call it Neil's Drinking Red Wine Before at 9 a.m.
Starting point is 01:26:00 Yeah. I feel like I should really start a show where I just like every day at 1.30, I just drink a bottle of red wine and we talk about what it feels like to drink wine. No, what it feels like to be as smart as Neil Robertson. Instead of coffee and car, you could do Merlot and cars. No, he should call it what it feels like to be as smart as Neil Robertson. No, no. I just surround myself with smart people and I get their shine. Oh, thanks, Neil.
Starting point is 01:26:23 You got to do it again, Neil. I'm just kidding. Neil. You can come back anytime. That was so interesting. I feel like that brought the audience so much value and you are a gem. Love it, brother. Yeah. Thanks, guys. Appreciate it. Hope you guys are having the best holiday, a little giveaway. As always, we are giving away some of my favorite beauty finds. I'm going to ship it right to you. All you have to do is tell us your favorite part of this episode on my latest Instagram at the skinny confidential. Please make sure you rate and review if the show has brought you any kind of value. It takes two seconds on iTunes. And we'll see you as always on Tuesday.

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