#193 - How a $25 Million a Year Sweepstakes Business Works and Shaan Predicts the Future

and you're like dude i believe in you if you were just gonna start a new startup up i'm in for twenty five k like no questions asked yeah i feel like i could rule where to know i could be what i want to from at all in it like a days off on a road less travel never looking back alright everyone we have a new episode this one is pretty good so we talked about a couple things the first thing we talked about was oasis which is this interesting new product that kind of it's like a deep fake but for zoom that's not the best description but check it out sean says it's one of the biggest ideas that he's ever heard of second we break down the sweep steak business if you wanna make a company that makes like half a million dollars a month and profit and you wanna have it start and launch inside the next probably two years like or sorry two months and then grow in the next one two three years to half a million dollars a month and profit i think this is an interesting idea we break it down and then we talk about sean prediction so he predicts what's gonna be the next apple facebook amazon seven eleven netflix porn hub domino's those are all separate predictions not one company can do all of but that'd would be cool and it's a great episode give it a sense and by the way have you clicked subscribe yet on new on youtube and have you clicked subscribe on itunes a lot of people say like hey you guys are awesome thank you for doing all that work then pay me back i i don't want money though all i all i want is for you to hit subscribe on itunes hit follow on spotify hit subscribe on our youtube page that's all i want and we're gonna keep you in for free alright let's get to the episode what's going on i am looking me now i'm in my i'm in a chic palace here what's a chic palace i mean like i went from like a manly industrial look to like everything is glitter and gold now yeah that doesn't look like your style that doesn't even look like it's your style yeah i don't know who style this is but that's the style we got today have you ever thought about creating a brick and mortar business by the way oh wait actually first two things two things before we get anything everybody like and subscribe and tell a friend tell five friends yes but wednesday do we have a guest on a wednesday i don't think so okay yes we do oh okay damn it okay not this wednesday on monday after that let's do the investor episode we have an guest we have a guest on monday too yeah dan hell is coming on monday alright we have two guests okay number it fine didn't forget that second thing i have this episode coming out you don't how it doing these monday things yeah what i'm doing is i'm sp together clips i'm gonna splice together like five to ten and i'm gonna talk in between each one and each clip is gonna be from a youtube video or from a podcast and the topic is i'm i'm i'm obsessed what time right now because i'm quite impatient and i'm trying to work on it and the topic is on actually patience and how like great things that i admire actually took much longer than i thought right and so so what what is okay if i listen to this episode what am gonna get i'm gonna get sam i'm talking about time yeah and you gotta turn your mic down a little bit no so what you're gonna get is you're gonna get me so you you alright so travis ka before he started uber he had this thing called the red sw you know what that was i don't even know what it did but i've heard the story i don't even what it either to be honest it was peer to peer it it was like it's not relevant anymore because it was like naps but it was like naps but different and he sold it for like twenty million dollars it looks like eight years or something like that like crazy and i and i found that i have this amazing youtube video of him giving a talk like at the forty minute talk but like the first like three minutes is about red solution it's like he explains how hard it was i'm like oh my god i took forever and i've got like eight or nine of those clips that i've saved of people admire saying they're gonna take a it's taking a long time and i'm putting them together so it's a however on the podcast are gonna be with like two to three minute clips with me like making it giving the background of each story right okay i like it so so we'll see if it's so you seen the joe rogan thing where it's like joe joe rogan watches the internet or something like that have you ever seen these youtube videos no but is it good yeah they're funny the it's like a it's a compilation of basically joe watching youtube videos and just reacting to them but all the videos are really interesting kinda like random mass stuff from the internet and then his reaction is like good he's not trying to be like super over the top it's like his genuine genuine reaction to it so i kinda see this as like the business version of that where you're taking one theme and then you see what a bunch of different interesting people have said about that theme and it's sort like sam serves the internet where you're gonna like kinda go into and out of each of those clips and just be talking we'll see if it's any good so and in over the next couple of days if you have an example of a talk that you've listened to or a story that amazed you send it to me okay sounds good by the way you said i'm about travis clinic have you ever read this blog post he did called like how to do south by southwest on a budget or something like that you know what i'm talking about yeah so he had this old yes maybe which i which i don't even think you could find a blog anymore and he basically wrote like you know if you show up at this time you can get free this you can get a discounted cab if you do x y and z right yeah like he was like being pretty scrappy and like saving like pitching pennies right yeah exactly was i think it was like ces or southwest by southwest and here's basically like y if you go to these things here's how to do it like here's out a ball on a budget and then he had all those little like tips and tricks of like you don't need to get vip pass to go here just wear like an orange vest and then he go off you know that type of thing yeah he was like scrappy yeah so i was just listening to this podcast theo von the theo avant podcast i even know what it's called and he had the founder of raising canes on there do you what raising cane is yeah dude i've met the founder of raising cane at a random i was at a table i was eating lunch one day and they founder was was right next to me and you just said what's up or i mean yeah i was like hey well you know this is kinda like this old it was a it was a restaurant conference so it wasn't like super random but there's just kinda of this nice old nice you know like slightly older southern guy i think he was the owner the fact of the ceo well there's two guys who started it one of them is about fifty but he looks quite young maybe was the other guy and i was listening to this podcast with them him he's southern lived in louisiana and they have hundreds of restaurants at this point and north of a billion dollars in sales and he the way that he makes makes it sound he's like i just loved running the fryer i love being at the place it sounds so much and the grass is always greener it sounds so much more fun than sitting behind a computer have you ever thought about doing way what how is that more fun sitting have you ever been at a restaurant back aid i like the back back kitchen of a of a restaurant next to the fire i was i was shitty i was a bus boy i was a bus boy and i i was never rolled out to be a waiter but yeah i worked in the service industry it it is fun just like being in the being an app being in the action it just sounded cool would you ever do a brick and mortar or like a i did it i i regretted every second of it you know the the part that is fun actually is the cam because that's what saying the the kitchen crew this the bond is different than like just your normal friends or like your coworker like if you go to your office today and you have a coworker who sits you know three desks down and both you have your headphones on and you're typing on your mac you know you have a and you go to you go get your free lunch together at the cafeteria like this is the tech industry right it's like totally different vibe than you're in the restaurant it's friday night the restaurants rocking you're banging out orders as fast as you can and and you you know it's one am when you're finally done cleaning up and it's like alright now let's go eat and then you know you go to some restaurant and and the restaurants closed but they let you in because you're from the restaurant industry and you get to go eat with them like that's just a different level of come yeah that's what i'm saying it's exciting it's fun you're in the thick of i love it yeah but i would never wanna do it again it's like it's like you know when people are like yeah going to the army was one of my most you know formidable times it's like would you ever wanna go back again through that boot camp through hell week again just so you know thank you i've i read this book called tribe and it's all because i was curious about what type of neighborhood would be best to live in and like what makes what makes you happy when finding a place to live and it's a it's you know i don't know this i've never been in the military but so i know it from like an academic story point of view that when you're in the military a lot of guys a huge amount guys when they get out they miss it like crazy because they're like alright it was hard i was risking my life yeah that's true but i felt like i had a crew of guys we were always doing something i had a mission and i and and life is so lame and boring without it yeah i i could see that but also there's a lot of people would you talk to him it's was like man that was the best and hardest time my life would i go back and do it again no i don't wanna do it again but it was an amazing time at that time and you know this sort of like when astronauts come back from space is what you're describing it's like yeah to kinda like well now what i you i freaking went to the moon that was my life mission and now every day seems quite boring and like you know uneven and not not really having a purpose as i did before but anyways i guess like brick and mortar so what you know what would you wanna do if you're doing brick and mortar i think i could crush i think i could i could i could operate a hotel or a restaurant really well hospitality yeah i think i could crush that and i and i maybe i will wanna do that one day i but i think i can kill it i'm looking at buying another house and turning it into a a rental because i'm i already did it with this one and i'm seeing one later today but i think i could can crush it and what okay okay so i was gonna say what was the avant talking about so avant was just just interviewed the guy guy okay gotcha alright yeah i wouldn't i'm i'm more like even with commerce i'm like this business is great except for all the physical products like you know right now there's a situation going on where i think i forgot what the exact tweet is but it is sort of like the there's boats or you know everyone saw that one boat got stuck in the canal yeah it's like like feeling you're like feeling the the pain now well it's not really that there's just like another situation where the biggest port in china is backed up and they're just like they there was a covid outbreak and so for a week they were operating at thirty percent capacity and this is like the biggest throughput like logistics place in in the world and so the knock on effects of that are gonna like lasts i don't know like months basically and so basically what you're seeing now is that boats couldn't get out on time they were just idling in the water and ryan peterson who were gonna have on the pod because he tweeted this out he goes you know it's crazy the average you know wait time now or the average number of boats that's waiting as blah blah blah and i asked him i go i tweeted back i said what's the cost per day of that boat just sitting idle right with all the chicago on on top and just sitting in the water not being unloaded and he did the math he's like it's about a million dollars a day that that the shipping company is losing just by being stuck and then for all the downstream people like you know if i have my goods on a shit on a boat that's not here well now i'm delayed now i'm out of inventory and because i'm out of inventory i'm out of sales and there's just one effort another is sort of like knock on effects of this and so for me even e commerce which is pretty pretty like internet is like the the the only bad part about is all these physical goods like oh you had a product but then the wheels are broken are the zipper customers understanding of that at all like like when i like i'm so now i do amazon know two day delivery one day delivery whatever it is but if something it comes like in seven or ten days i think i'm mostly cool with it right maybe during covid people were understanding because it was just like dude it's covid like everything is backed up and if this is not like a mission critical thing then you know then i understand but like people's kind of covid patients wore off i think and and also if not everything is backed up it's just your stuff then you look really bad and you know business and even if it's not even if they understand like you lose sales and losing like two weeks of sales is like pretty devastating for your month revenue which is like you know pretty bad for your your annual revenue when you're operating on like ten fifteen percent eb and so so yeah by the way the tweet was five and a half percent of the world's container fleet is waiting outside of a port and then he said i asked what does the cost per day to be waiting title he goes one trip round trip from asia on a on one of these shipping boats is fifty million of profit so every every day that they're sitting out you know sitting out sitting idle and it's a thirty day trip and so you know so that's about a million dollars per day per ship that's idle and then i was like holy shit these ships make fifty million in profit for a single round trip from asia and i and then you know people are replying people who know about the shipping industry they're like yeah it's crazy like the top the top ten shipping companies will make like a hundred billion in profit this year but like in the last ten years they've lost a hundred billion in profit like it's it's a very volatile volatile bottle space based on you know volumes costs and all the stuff like right now if should container twice as much as it was last year just because supply demand is so out of whack that's crazy i'm excited to have him on and so learn with him about that so you wanna talk about some ideas we have a bunch here we where where do you wanna start so some of the some of the ideas that i i wrote out i wrote down two i think i said have or i have three one is oasis which i think is one of the biggest startup up ideas most most interesting startup up ideas out there n which is in the fake chicken nugget market and i have some thoughts around that and then i have a prediction section where i'm gonna predict what the next facebook amazon google and netflix will look like and so those are my actually i have another one but maybe we'll save that one for the next pod so those are my three we could do today let's do oasis car oasis giveaway business no and predictions alright sounds good so oasis so you know what this is but i think most almost everybody ninety nine percent of people listening to this have no idea what this is so yeah let me explain the the concert i or i'll tell the story of about how i i bumped in this guy i was on twitter and i saw this guy matt and he was teasing kinda like you know people do this on twitter where they have like my stealth thing is kinda coming are they post a screenshot or like a gif it's kind of ambiguous but it looks interesting it looks provocative or they're just re tweeting people i think this is what i saw he ever retweeted my our mutual friend si who was like dude just got oasis demo mind blown this is the future and so he re retweeted that and i'm like okay hook line and sink like tell me about like how do i get that demo i also would like my mind blown and he's like alright yeah hop to into zoom so to hop to a zoom and he showed me something that was honestly pretty mind blowing and what it was was he was like okay so i'm talking to you on zoom right now here's my face and but you know the problem with zoom is that you always gotta look good and people get you know people get nervous about that and so you know over sixty percent of people don't actually turn their camera on in in north america because they're self conscious of how they look and that kinda sucks and now we're video calling without the video right and he's like so what if instead you could have a representation of you that wasn't like cartoony it's not like a emoji or an emoji or whatever the apple thing is it literally looks like you and we'll show a screenshot of this on the screen if you're watching on our youtube channel which is just youtube dot com slash hustle con you'll see the video of this it's kind of amazing so the video the gift that i wanna show is it says never worry about how you look on camera again and it's a video of the founder matt he's in the shower holding up his phone and on the left side is what he actually looks like it's a do it in the shower and on the right side is like a digital representation of it it's him but he doesn't look like he's in the shower it looks like him like in front of a perfect backdrop just talking and it's tracking his mouth perfectly and so i thought oh this is kind of amazing like if i could be on video without actually having to be on video if i could kinda like a filter but if i could just automatically have the best looking version of myself on camera god that would save me a lot of time and energy and thought around how i look and and he's like it gets even better so not only does it let you do that you could also show up as a different person so say you're you know a minority you don't wanna be discriminated against you could you could show yourself as you know a tall white male and nobody would ever know what you actually look like so this empowers like working synonymous which is something we've talked about the last thing is is like here's the best bit this works on like the worst connections worst connection phones in the world i said well how do you do that seems like pretty high priority goes there's no video being transferred i said what because yeah it's like a video game the screen on my side is tracking my face every pixel of my face how my lips are moving my nose my eyes etcetera and then instead of sending my video across the internet it just sends how those pixels are moving like a video game and so then on the other side it recreate the video just using those pixel coordinates and so idea here is that even on really shitty internet low bandwidth scenarios you could have awesome looking video and without you having to like you could be rolling out of bed and you look like a million bucks so what do you think of this idea i think big i was pitch this as well and i passed did you did you pass or no yeah i didn't even really get i i i have a call scheduled with the guy i just saw the demo this was months and months ago it wasn't like in an invest spot at that moment or like they weren't raising or something like that but i'm looking at it now you know it it does have a high evaluation and it's pretty it's got a very high valuation i i don't are we is i don't let's not say okay something it's got a high valuation and it's like six guys working on this it's pretty wild and i so here's where what here here's what i think about this i i think the way the way that it's set up now is not the way that it could be a huge thing okay and what you so a lot of times when i either invest stuff or i wanna get involved in a project whether i'm starting it or not i'm very comfortable taking the leap of faith of saying this is just how i'm gonna start and i'm very comfortable in saying one of two things i know how it's going to end or rather like i wanna create a massive bd company that covers this this and this i'm gonna start with an email i don't know the middle ground but i'm i'm pretty confident i'm gonna figure it out or i'm also okay with not even having an ending point of like i created something cool it feels powerful and strong yeah i think i could figure it out where to go and this business i think was that second one so i saw the technology i played with it i got the demo and he basically was talking to me and i i got it i was like oh okay so like to me this is like pretty like unlimited unlimited on what the options are and so the bet i'm having to make is is this founder great and can they figure out exactly how to deploy this technology and i wasn't sure if i wasn't sure if it was worth trying to figure out if they could get it yeah well also the price match right so like that's why i'm saying you you don't wanna pay a i figured it out price when they haven't figured it out yet right you you wanna pay the this is cool and promising price which should be like ten times lower but i get why this has a high valuation because to me you see something like zoom zoom is a hundred billion dollar company zoom is letting you call you know do do video calls with people all around the internet for business purposes i think that the future zoom like the leap frog of zoom is not zoom with slightly better features or the recording is better the audio quality is a little better it's this is a video call where i don't actually have to be on video but it looks like i'm on video everybody looks great everybody's presenting their professional self regardless of how they actually look at home and secondly this works on a extremely low bandwidth shitty internet circumstances because it's not even transferring video it's just transferring pixel coordinates that to me is like a leap frog and that means what does if zoom a hundred billion today and somebody built what i believe if you did this it would be a better zoom obviously it doesn't have the network effects doesn't have the brand doesn't have many things that you need to do to get it big but it has the magic trick and i think when you have a magic trick you can get a lot of users pretty quickly and the magic trick here is pretty impressive we were both pretty impressed with the magic but it sounds like we're saying the same thing but i guess my difference would be i think i know what the end point looks like the point looks like this is how business calls are done you have your dude that that big is that that big of a market i don't i i with you i don't know man if i was this i'd be using this for movies or for you know i actually don't even know what i would use it for it but i can't imagine business calls would be the number one thing dude zoom is massive zoom is oh like humongous right a hundred billion dollar company how much bigger do you want right one trillion okay you can get to a trillion but but this you're not making zoom this is a plug in for zoom i think you could make the new zoom using this right why would i use zoom when instead i could use this where i always look like a million bucks and already it's better than zoom and the second thing is it works better on any internet conditions because it's not transferring heavy video across the wire regardless i'm into this i'm into this i just was unwilling to bet my own money at that high of evaluation yeah i think that's totally fair the the reason this stick out to me was i was like i had this doc i've talked about before which is called the biggest idea in my head right now which is basically if i was totally i could drop everything i was doing and i was gonna work on the biggest start up idea in my head at any given month what is it and i just keep track month by month and sometimes it's the same for two months straight three months straight and sometimes it changes this became the biggest startup up by idea in my head because i think it's basically taking novel technology going after a really big market and it's doing it in a way that is like complete like the incumbents would have to sort of re architect their whole shit to be able to do this i think i don't think you could just make a plug in to do this and so so anyways i thought this was like one of the bigger ideas so i just wanted to bring it i don't really have more besides that alright let's move on then you wanna talk about something that's way less a big idea but a surefire way to make a lot of money yes okay let's talk about the giveaway business also known as the sweep steak business and i'm interested in this business because well because i've used it a lot as because it seems easy and awesome and you've done it you've dabble yeah so with the hustle one way that we we grew we grew in a bunch of ways but we did two things that are related to this the first we would pay companies or don't i'll start with this one the first we would give stuff away we would give a tesla away we would give a three d printer away which we're giving now and if you share an email or you get other people to join like in the user unique url you get more entries and if a car cost us thirty thousand dollars and we acquire thirty thousand emails that's a dollar to acquire an email that's a really good deal for us because we make let's say ten dollars off every email no brainer the second thing that we did is we've paid some of these companies and i wanna explain how they work so do me a favor and go to bold dot org can you do that right now okay i'm on it what's the i student debt that's it yeah and how does it say it does it let's see so scholarships phil i don't know it just looks like donations or something like right so what you do and that because they may get all click on scholarships for nursing or something okay scholarships for nursing students i'm there five great scholarships for future nurses great alright so bold dot org what they do is they go and they get they they either create scholarships or they find people who have scholarships and they aggregate it into one area into one platform not that hard to do in it's in itself then what they do is they go get loads of people to sign up for this scholarships so they advertise to nurses and nursing facebook groups on google and they get people to sign up and and enter all this information and here's how they make money when you are a nurse or let's say you're applying to get your mba if you have tens of thousands of people apply to get their m an nba scholarship that's a pretty pretty high qualified lead list right right same with nurses same with i mean pretty much any of these niches and what you they do is as you sign up for this thing at the end they go also do you wanna in for this this or this or this and companies like the hustle i would pay them money i think at one point we're paying them maybe fifty to a hundred grand a month and that's how many leads that they were getting us that's amazing so so basically they go they pay for people so they they go when they spend money to get people to apply first scholarship and people are like oh fantastic thank you so much and then when they're applying they're basically like hey would you like to opt in and why does the person wanna opt in or is it like hey do this and you get some increased odds scholarship or how does it work i i believe both yeah so like they just like show offers that are interesting and also i believe it just like it's you're automatically in unless you opt out in the flow and you get more likelihood if you opt into stuff dude how did you even find this how did you think oh you know what i'm gonna go like when you when you you were trying to make the connection between sweep stakes and giveaways and you're were like go to bulldog dot org this like non profit looking you know scholarships for nurses in africa i was like what does this have to do with how did you even figure out this how you grow an email so to i'll there's a bunch of ways that i know how to do this the first there's this guy named dennis gross who were gonna have to get on this podcast so dennis started wise which you and i are both probably too young to have used it but it was like a web one point o thanks it made a lot of money and then he started loads of other things including investing into lots of different startups like thumb tac but then he started best reviews dot com do you remember that or do you know what best reviews dot com is it sold for a hundred and sixty million dollars at tribune like three or four years ago his guy named dennis he's very very wealthy and he started loads of companies and he stays way below the radar and he created this thing called mechanism which is like an idea lab except he's like an seo guru and like a lead gen guru so he's launched all these companies and the cofounder of mechanism is brendan who's the founder of top and i'm friends with both of those guys and i saw what they're getting into and he pitched me and sold me on using bold dot org and it was pretty good right so that's first i can't find it that dennis gross is that his name go to bold dot org slash about he spells his name d i n i s space g r o s z gotcha okay so he's oh he actually did bold okay so that's how you found out so here's where here's here's what i'm getting at here so this got me interested into giveaways actually you have to call sweep sticks there's a lot of legality around this and so what what i learned was you and and we when we did sweep stakes we would have to call it sweep stakes you have to have rules that are approved by your lawyer and i got it's like you could buy entries or if you just mail us this form we have to let you apply have to give you the equivalent entry right so it's like there's all types of technicalities yeah can't make it pay to play otherwise it's like a lottery or and you can't yeah it can't be a lottery you can't now i don't add this is just an example i don't know if this is actually the rule you can't use word like free or you can't do like there's a bunch of like technical technicalities stuff that you have to follow but i got very interested in giveaways and so i did some research on a bunch of them so there's loads of giveaway businesses the there's three ways that i've seen at work the first you buy entries so i've seen like buy this house dot com i believe it's called we're or buy by san francisco home dot com where a company buys a san francisco house then they put ads all over the subway they put ads all over the billboard and they sell entries for a hundred dollars and it's a raffle the second way that this business works is you do it bold dot bold did which is the audience is the product and you sell their information you know those cars better at malls yeah okay so what happens at those businesses is they they pay them all the a marketing part company pays them all a rental fee to use that real estate space right yeah then loads of people enter their information to join and buy that car they look at the all the leads and names now that they have the birth date things like that and they categorize them and then they sell them to different companies and those companies cold call those people to sell them x y and z right okay so the third way that you make money off of this is you could sell merch and when you sell merch you get x more entries into the giveaway and i found this one company that's doing car giveaways and i got a hold of these financials and if you're listening to this actually there's a the takeaway here is that this about this business but the all the second takeaway is sign up for brokerage website that that cell that way to learn yeah an amazing way to learn you go to quiet light brokerage you go to what's the name of this one yeah you go to flip empire flipper you quiet light brokerage you can go to like one of many all you know f e international or whatever there's a whole bunch of places where you can and you can basically look at internet businesses the beauty of it is if you wanna if you're on the outside you're like dude i've never actually been inside of a successful business never run one never owned one never sold one you can go on here and you a great way to get business ideas because you're just gonna see a bunch of business you'd ever thought about like oh these guys sell you know you know it's a d to diabetes brand they sell you know products or diabetic diabetic patients and they're doing eight million a year of revenue four million of profit and here's their top three skus and here's how they grow and here's their p and l because they're trying to sell their business so they had to package everything up and make it a book that you can go look at as a buyer the beauty of the online once is don't know if you're a serious buyer or if you're a twenty one year old kid are trying to learn about business and so i've looked through probably hundreds of these at this point just to learn right so that's like how i feed my business brain is is one of these one of the tactics is to go look at businesses that are for sale and read their books so i was interested in sweep stakes and it just so happened i saw one for sale and i went and found this one so here's a sweep stakes and what they do if you google car sweep stakes i'm not gonna say the name of the company very likely they come up on the top ten of google on the front page so i am just off that i imagine they're one of the big dogs did you go google card right now yep i see them okay and the last twelve months revenue was twenty six million seven hundred thousand dollars the last twelve months of net profit was five point eight million dollars and in this document that they i have there's like a q and a where someone just asking them questions and they explain how it works and what it works is they have a warehouse and they have like thirty employees all warehouse workers mostly and you they run ads on let's just say we'll say this is for a car one they run ads and sponsored videos on youtube car car youtube channels mh and before the guy shows up his car he goes by the way this one's is sponsored by blank company they're giving away a car if you want the car click the link below you go to that link and it says great you're gonna be entered to win this car by the way if you buy this sweatshirt for forty dollars you're gonna get ten more entries if you buy this hat you're gonna get x amount more entries and so they make a profit off of it's just an e commerce store basically right and it's amazing i mean i don't i don't think it's actually sketchy i think that's it's a you're kinda praying un vulnerable people a bit and they said that in this document that the person one time or first of all the repeat customer rate is fifty percent so fifty percent of people who sign up for one eventually do another and they have guys that will spend eight thousand dollars on merch in order to get more entries into these cars wow yeah it's it's this is definitely one of those words it's pretty polarizing you know some people will say this is this is shady this is messed up i find it fascinating that a business like this even exists twenty five million a year in revenue five million a year in profit and very very simple business you know what i mean like and it if this is what i call like you gotta know how internet plumbing works they're like oh okay i can plug a pipe into youtube and that gives me a lead and then with the lead i plug that into an e commerce store and that gives me this and then i'll plug into this like sweep steak law that will allow me to do this legally and i've seen the same thing by the way in the gun space so people do this for guns giveaway giveaway for guns there's a lot of people who are like really passionate about guns and ammunition and things like that there's also ones that are so cars is probably the biggest one there's houses when i was gonna sell my house it was right when covid hit and it was like the worst time to sell a house and so i looked into could i raffle my house off and actually could i get a better price raffle my house and then there's all these rules against it like you had like basically like churches can do it and not a lot of other people are allowed to do this so yeah so basically there's there's a lot of these that you wouldn't otherwise expect and yeah i i've seen you i've seen somebody doing this with cars at a pretty big scale and i'm looking at this company now and just should say by the way i have a friend or a friend of a friend who's doing this with cars and like there was three months where they were just like oh my god is printing money this is the best business in the world and then we check back in six months later and they're like this is such a hard business dude it's like you know and so i think that it's not it's like many things where it's not as easy as it sounds and there's also like a thin line of like at some point you you could fatigue out your customers right you could fatigue out the buyers so they who get disillusioned that they're not gonna win or you the ad cost go up and then the business all of a sudden went from working beautifully to kind of upside down yeah okay so this business they're doing five sorry six million nearly in profit and they're only selling the asking price was twenty four million dollars right so there's some they're asking five times profit one times revenue there's a reason for that five times profit to me is actually quite good for this kind of business i would think they would wanna get way less and it looks like the only true asset they have is the website which anyone could copy probably with ten grand maybe forty grand then they have a three hundred thousand person email list and then they have three hundred thousand sms subscribers which is baller so that is that good yeah that's huge and i bet that works extremely well for this because if it's like basically hey look at this amazing car do you want it and you're just sitting there on the bus it's like i'm doing anything else right now click and you go enter the enter the giveaway each time i could see how that hook would work because sms you know sms gets like an eighty percent open rate an email gets like an eight percent open rate so it's like it's you know ten times better so i similar to your thing i don't really have any ideas for this because i think they're kind of limitless but i thought it was interesting and i wanted to bring it up because i think this is like a little bit on like the dark side of the internet that not a lot of people know about and i thought it was crazy fascinating i don't think it has to be like bold dot org incredibly ethical straightforward there's no tricks i know the guys who run it it's i i'm a customer there it's it's how does be like kinda okay so somebody's there for bold they're trying to get dollar right they're not thinking about the hustle maybe hustle like auto checked in something which is like share share your information with our marketing partners who make this possible you know and you're like great now you got their email on a on a list did you see that they performed yeah they they were okay yeah yeah yeah so okay so let's do the math here so let's just say that and all these numbers are i'm making hypothetical let's just say that i acquire a user from facebook for two thousand or two two dollars and they have a fifty percent open rate that means i'm spending four tons well four dollars for a fifty percent open rate or sorry for a much for a reader yeah for a reader and and let's just say that like the way that we used to track it is that we would we knew right away if they read the first five the likelihood that they're gonna say for eighteen months or whatever it is was very high yep okay so i paid four dollars for that fifty percent person we'll call it a we call we have a gold silver bronze that's like we we in internally so a gold user just cost us four dollars right okay now let's just say that on bold dot org i've gotta get ten people but i get those ten people for a dollar and one of them becomes a gold reader so i just paid one dollar for a gold reader so you get a lot of volume but you make up for it because it's cheap right right and and you basically just set your rate with them or they they just have a rate and you have to figure it out like do you say say this much per lead or how does it work a lot of these companies are the smart guys they don't have a set rate they give you a ballpark and then they but they first wanna here hear what's it worth for you yeah of course and then they try to sell you they're like oh okay these are worth this to you okay gonna set it at this budget and then what you do is you go out and do it for a month and then you renegotiate yeah i think this is a fascinating business i also think that giveaways and sweep stakes are just a useful marketing tool so even if this is not your business so by the way i just went i just went through it i just went through the funnel wall we were talking yeah so bike getting halfway through this scholarship flow i earned fifty bold points and then you can get five more bold points for signing up for this you can get ten more bold points for doing this and how big is this bold thing bold dot org like the the like how big is this business well i don't know i i i mean they never told me the revenue i think a pretty baller business i imagine it's very very very pro if you told me it made half a million to a million a month in profit i wouldn't be surprised this is like somebody who has a black belt in the internet they're like oh here's what that's this guy dennis man this guy dennis feel good feel good story on the front end dope lucrative business model on a back end right i love i love this this is clear this is an internet black belt yeah it it's it's amazing this is a it's an amazing thing and i wanted to i just had to bring this up because this is one that like this doesn't sound sexy right this doesn't sound like like oh i i wanna do this when get older there but it just makes loads and loads of money another one is o o m a z e have you heard of that yeah that's what it's like a platform to do raffle and whatnot right yes but they act like it's a charity thing so it's like like snoop dogg gonna give away a car and all the money or like some of the money goes a charity or something like that in reality o gets their cut in the same way that i've just outlined three business models yeah that's fascinating i feel like we could do an even deeper dive on this because i feel like you just touched on like ten interesting things that that we should probably like i feel like we should do a separate episode all like kind of like the deep dive into this sweep stakes giveaways i bet that would go pretty viral honestly and i'm going through the the the bold flow they ask so many questions like what's your estimated current annual income what's your dream like what job do you wanna have how much money you do you wanna make how many how i mean they ask so many questions so for money right now would you say yes yes okay great like basically what they're doing is they're getting like crazy amount of quality it's all about enriched enriched list basically yes and it this is crazy alright i i got another one have you seen this company n yeah they changed their name though yeah they well i think they have like a parent company and then the product is called n so the product the parent company is called simulate i think and that's because they're basically simulating real meat and so n is one it fits into this category of like alt alt meats or fake meats so you have beyond meat you have the impossible burger and what n is doing is n is chicken dogs by the way they changed the the product's name is different what what's it called now oh really it's not i just googled n i can't even find it i think it's so called that is with two g's no so if you if you go to if you go to simulate dot com you'll see the the product and basically it says the tesla of chicken oh god and so so you can see that the like if you go to there go to simulate dot com slash no so it says the original no forty five dollars for a box and there's fifty for for two boxes and there's fifty piece of per box so basically forty five bucks for a hundred nuggets and they have two flavors there's original and spicy and and their landing pages like kind of like cheeky like it the the instead of saying it's good for you it says kills you slower that's entire protein and lower in fat than animal based nuggets you know you can get this fast here you go blah so they started as kind of like a d brand type of thing but i think either during covid or or before i before covid they switched to basically just selling to retail and so i saw them because they raised fifty million dollars recently like a month ago or something like that and the guy who's behind this is this guy he's a young guy ben pastor neck and this guy is pretty clever so he's he was really young he i think when he was eighteen or nineteen he had built this app called monkey i don't know if you ever saw it it hit like it was kinda chat ro foot for your iphone so you'd get on there and you'd it randomly match you in a video chat with somebody else and then you could like skip to to somebody else and i saw this because i was like oh that's kinda clever like i don't think it's gonna work but like i like the branding i like that this guy was able to like kinda game the app store charts so he was climbing the charts but it you could tell this was wasn't a sticky product so i've you know reached out to him had a had a chat seemed super smart guy how long ago was this maybe five six years ago oh so he might be twenties i don't know he might be twenty one twenty two now he was like seventeen at the time something like that i don't know some somewhere around that range he was like seventeen or eighteen and i remember just thinking about wow this kid's is like a superstar or the yeah future superstar i gave them the highest compliment i could give them which is i didn't even recruit them i was like you know what you're better the you're you're ready to just do this on your own like don't don't even waste the time coming and working inside my thing like if we work together we build one company if we're part you're gonna build two instance but i i really like the guy and running me this question so i actually don't even really wanna talk about the fake chicken nuggets thing although good market to be in and i would say the part that i i think was interesting is like i meet a lot of people like this who are like clearly special gonna do big things it it's probably not their first app like it's probably not monkey but it's probably n it's probably their second or third attempt that's gonna hit and it got me thinking like could you basically as a founder like fine an option could you buy options could you buy future contracts on founders and what does this mean so most people when they think of this they think is sa oh it's an income share agreement i'm not even saying that i'm saying there's it's it's that juicy of a market of founders like this that you could actually just sell the right to invest in my next thing yeah because because otherwise it's hard to even just keep tabs on people you don't know when they're pivoting you don't know when they have a new idea you don't know when they're launching and you're like dude i believe in you if you were just gonna start a new startup i'm in for twenty five k like no questions asked just putting me in the pre proceed round so it's like the lower valuation of the of the so i think i would have paid ten grand just for the option to invest in this guy's next company over the next five years right so i think you know ten grand twenty five grand i do i think you could tell to investors just the right of first refusal basically to invest in my future company it's not equity it's not an income share agreement i don't even have to start another company but i think in i think real investors would basically have a budget of maybe single digit millions of dollars where there's just placing options con they're just buying option contracts on my high performers they see in in the tech industry to say hey next time you start your thing i get the first dips at investing so this is something i'm i'm looking this up so i i think it was it was either jerry seinfeld or joe rogan was talking about the nineties and tv and i believe they were telling a story about roseanne and how basically they they're like it was the golden age of tv because even though the content nowadays is probably better but basically if you wrote like an okay script or just a pilot or a screen play a a company would pay you a quarter of a million dollars a year and the only thing that you gotta do was not do it like they bought the option and they'd be like yeah sometimes we would would they would just buy the option and we would never even do it so i was just getting like a quarter of a million dollar a year salary for three years i ended the rules just don't do anything right it's like a retainer or like kind of like a a it's like a it's almost like an advance on a book deal in a way and i don't actually know i i know nothing about hollywood and i i don't know if that still exists i of course it does but i think it was more common then when cable company or when cable is crushing but i think this is actually a fantastic idea and basically it would be like i have the option let's see how it work anytime you raise money or anytime you own more than fifty percent of a entity i get i get the i get first driver refusal i think it's a really really great idea like i don't know how the math works exactly but i can sort of see like it turns entrepreneurship into a job and it it gives you a floor so let's say like i think if i did this i think if i went and i said hey you know hey i left my job at twitch by the way i as of today officially and no longer and no longer employed i'm a free free man congratulations i wasn't sure when we were gonna bring that up thank you yeah yeah so if if i was basically like hey don't know when i'm gonna start my next company but you know if anybody's interested here's a place where you could go here's a website you can go to and you can basically buy a future option on being in the proceed round so let's say i'm selling slots for i don't know fifteen k a pop so fifteen k for your right to invest in my next round and i basically sent that to every vc or every seed fund i know i think i could probably get ten people to opt into that say cool i'll give you ten k right i'll give you fifteen k right now easy and in the next eighteen months i'm gonna be thinking about a business and then when i'm ready you get the first dips and you know at the round might be like the three million dollar round they and you could to invest in this and so i get a hundred fifty k floor to go do my search for my next business and they get they get they get the guaranteed locked in deal flow and i don't know maybe i'm maybe i'm under pricing it maybe it could be more or maybe it's an annual thing i'm not sure but like i'm pretty sure out of a fund you know they would allocate a few hundred thousand dollars to placing bets on twenty five founders that they're like yeah i'll i'll be in your next round can you also do this so did you pay attention to what happened with the nc today no what happened so i i wish that you would have because i don't actually know the full details but yeah me neither big the the supreme court basically well i know what happened so the supreme here's the headline the supreme court unanimously sides with former college players in dispute with nc about compensation so basically i i don't know if there was any firm rules but basically the doors is now open for how nc athletes can make money and when i think of options i mean i definitely think athletes are the best yes definitely so yes so so basically the thing here's here's what i'm reading here it says the unanimously ruled that the current cap on education related benefits such as scholarship graduate school musical instruments tutoring violate federal antitrust laws and must be lifted so that means that this is just for there there was limits on how much you'd be compensated for you know tuition roman board stuff like that so that's lifted but it's not yet salaries for athletes but that's coming because they've also passed the there's also been a rule passed around the athlete themselves being able to monetize their name and likeness you know like i'm in a i'm in a college town in north carolina well the local car dealership can like use my name and face on their ads and i can make money from it you know things like that that's that's what's coming so i think there's definitely a big opportunity there in just in general yeah so here we future contracts yeah i'm on board i think it's great okay cool i have anything else i say except great last topic i wanna give you some predictions alright so i've been thinking about this and i think you're bold for doing this by the way you're making it very easy look stupid well that's the beauty of predictions it's like a you know the best predictions i i think most predictions even when you're wrong people forget unless you're scott gallo you know when you're small when you're small you should make predictions because the cost of being wrong is very low but the cost of being right all of a sudden you're little guy who called it you know like it's like my club house thread like as that gets proven rights then it'll be like oh he called it but if i was already big then if i was wrong it would be like kind of like everybody would be waiting to rub it in my face okay so let me get let me run you through what i think the next when did you come up with these is this like some twitter third you're gonna do yeah i'm gonna do it as a threat but i was just one day so i could see the time on this eleven twenty seven pm so this is the type of shit i think about at midnight and i started typing on my phone i said i said okay what's apple becoming because i see apple apple shifting into like health in a pretty big way with these like wearable devices and so let's just say apple which today the core benefit is they give you this ultra personal device your a little personal supercomputer that's gonna help you with life so i don't think the next apple is a phone company i think the next apple the next apple which gonna be a trillion dollar company that has that's gives you kind of like a a consumer device i think it's gonna be a health care monitor i think it's gonna be something that is gonna be measuring what's going on inside your body and feeding that data back to you and so that's my that's my prediction the next what the next apple looks like not a phone company health care monitoring device next facebook okay facebook today people think facebook has an app it's a social network it's where you go right on a news feed or you post photos and i think facebook the core of facebook the guts of facebook is basically cameras it's content sharing so it's basically photo taking or video taking and sharing with people who you care who you wanna share that stuff with and that's why instagram is something they own whatsapp etcetera etcetera and so i think the next facebook is not gonna be an app it's not gonna be another social network it's gonna be some kind of hands free always on camera so it's gonna be something you wear either glasses or a lapel or something a fucking drone that's floating above you at all times i don't know what it is probably glasses because it's at your eye level and it's gonna be basically like a super memory so it's gonna let you capture photos and videos of whatever you're looking at hands free and instantaneously and then once you've captured it be able to share that or save that as like a super memory for yourself or with any friends so i think anybody's trying to create the next facebook you're not creating an app where you add friends you should be creating a hands free camera that makes it way easier to capture content and you'll bypass facebook altogether because that cap that place where you capture content will just be for sharing similar to a snapchat attack facebook snapchat made an app that when you open it the camera's on right away and you take the photo first and then you just share that photo with somebody so they skipped the whole facebook process so i think that's what the next facebook is a hands free always on camera next amazon this one's stolen from mark lo next amazon so amazon a place to shop it's not gonna be a website where you where you type in a word and then you get five thousand images as a result and then you gotta sort through them the next amazon is conversational shopping in your house is just saying what you need and having something go get it for you so basically it's just saying hey we need more pea pads for the dog and it says you want the same ones as last time i say yes and then it's boom it's ordered right i didn't have to type anything in didn't have to enter a credit card it's all on file and it's just a hands free voice assistant that helps me shop for things and when i don't know what it is it could set i could say hey i need a you know the best camera for my webcam and it could say something like do you want the ones that most of the youtubers use you want the ones your friends bought the most or do you want the one that's the best value or the highest price and i'm like what do my friends have sam has this one would you like to ask him how it is yes it asked sam and then sam says it's amazing and then i buy the thing right conversational com or something like that that's the future that's the next amazon next netflix okay netflix wait you skipped over seven eleven oh i'm gonna do seven eleven two okay seven eleven the next seven eleven what is seven eleven it's a corner store that has like it's a little local convenience store this one's easy this one is it's a cloud corner store so you don't need a a real location it's just gonna be five hundred square feet that's within one mile of you it might be in this back alley place it doesn't need a good location and it's gonna deliver to you with small lightweight drones so small little pass small little carrier drone gonna bring you something within fifteen minutes of ordering no human being involved and the whole the whole five hundred square foot place doesn't need good real estate and is gonna be automated so that you know when i push the button to order it there's no human being in the place it just pops out like a vending machine the drone takes it straight to me and it lands on a little landing pad that i have in my front lawn for drone deliveries and as soon it's there i go outside i pick it up okay and then keep going i'm just listening i think this as fascinating i'm i'm gonna i'm taking notes i'm gonna tweet those just like as you're talking so i'm gonna did your file you're still by thread okay great alright the next netflix net net next netflix i think is gonna be one of two things one is it's either in vr and it's more like a it's a hybrid it feels like a game so you put the headset on you enter the world and then you walk around and you sort of experience a movie so it's either vr or or because i think i'm not sure about that one or it's machine generated movies which is basically something personalized to you so right now a movie is like a really specific story that gets filmed edited produce has actors blah blah i think you might be able to just sit down and be like i want something that's like breaking bad but with casinos and then it just generates it just machine generates a movie for you based off of basically it's like a mash up and you've seen this with music so google releases this thing called composer or whatever it's like this ai that basically writes classical music that sounds like it's made by bak and mo art and and it's basically just it's just taking all the stuff that exist out there it studies it and then it creates remix and mash ups of all those things in a way that's maybe it could be one time it's like i get this thing and it's like a one time movie for me that could be kinda crazy do you remember that band remember that band girl talk yeah mash ups yeah yeah used to love those things man i love i still work out to that that's my go to for workout same i love that too it was like feed the animal or something like that that's yeah that's a great track yeah i love that shit i'm on board so similarly the next porn hub is not a website you go to and you see a bunch of like prem made porn movies i think it's all deep fakes so i think you just go in there and you just have a fantasy so you put on your vr device and you just think of something you wanna see you used to think oh mila k she's my waitress go and like it basically deep fakes a porn o for you with mila k is face on it if you don't know what a deep fake is it's a it's a computer generated movie where the like the actor on the screen was never there like it'll make obama look like obama's you can make obama go to a baseball game and pee in the crowd right because it could just take any by the way that put obama's head on it it looks real that that's why it's scary it's fakes are scary for many reasons you're not gonna be able to trust video anymore because i agree video can be faked just like any photo can be photoshopped any video can be video shopped now alright last one the next domino's so the next pizza company is gonna be a fleet of self driving cars that are just going around that having oven baked in the in the trunk so your food is gonna be baked fresh it's gonna arrive to you with a driverless car and you're gonna hop out you're gonna come out to the front you're gonna meet the car and the it's gonna pop up with the trunk and there's gonna be a pizza that was baked during the drive time for you tell like a like a like a mobile food truck type or like a food truck that by the way when our our our friend go launched this company called sp i think it was only in san francisco or maybe san francisco in chicago and he raised sixty million dollars all this money he launched it early though two thousand fourteen and that was what he goes he goes i wanna have ovens in the car that's the future and i actually think he was right i just think that it was a little early totally true this guy david lange he started zest it was like a food catering company that was like super fast growing at a time and i asked him i go yeah what do do think of what do think food delivery it seems high he goes he just jumped straight to the end he goes yeah the the then the end answer is cars with ovens in the trunk it's really the only solution that's gonna work like i at mask that will replace like kinda like the whole infrastructure that exists today is when you can get the food to be baked in the car and kept hot in the car and ready hot coming out of the car and when you do that there's it also reduces the delivery time because you're not going to a a brick and mortar loading the food into the car and then driving to a place you're just constantly circling around an area and as you get an order you pop the thing into bake and then when it's ready you're at the door so it was zero lag time so deliveries get faster and fresher so this is my segment of basically sean time travels to the future because if you think about it right i'm born in nineteen eighty eight not that long ago eighty eight to like ninety six or ninety seven like i remember that time michael jordan was like winning championships during that time there was for the average person there was no internet or we were just just getting like aol chat rooms and shit like that right i was putting aol cds into the computer that was in my computer room because the house had one computer right and yeah we all had computer rooms remember computer rooms exactly and said then like that sort of changed over time it's like oh computer rooms become laptops laptops become phones phones have freaking like hd video streaming live you know basketball games from the internet now to my phone i'm watching that while i'm in my car like that seemed absurd i remember actually even the first time i saw someone reading on their phone and i used to have like a nokia you know like the old phone that had snake on it and i was just like what reading on your phone who would wanna do that like the text is so small and so shitty like who would ever watch a video on their phone or who could type who could like use when they just had nice or slow ten ten ten buttons and you had like click three times to get a other litter yeah what was that thing called or you had to like like smarter text or some shit like that yeah i know it would autofill auto fail yeah i was like but that seemed so far fetched and that was in that was not that long ago like i was like that was like twenty years ago and so in twenty years i kind of some amazing things have happened it's a five fast forward twenty years these things that today sound far fetched it's like that's gonna happen because it's the consumer benefit is there you know if the delivery is faster and fresh people are gonna do that right if if shopping gets easier i don't have to search and read and be at a computer i just say what i want when i want it and i get it like in you know i get it in less than an hour that was the part i forgot to say it was that prime two day delivery is gonna seem like incredibly slow like ordering everything from amazon is gonna be just as fast today as today ordering door dash is gonna be so it'll be here forty five minutes oh you need a ac hdmi cable here pushes button it's here at forty minutes delivered via a drone and so yeah i think that's what the future looks like so that's my time traveler section what do you think which one did do you think i was most on or off about you're i think you're most on about apple i think you're most off on so i gave you facebook the hands free camera always looking at now yeah i have all the notes i think you're on about apple i think amazon you're not totally right facebook was what was facebook the hands free always on camera instant capture of anything that's going on in your world you don't i think you're wrong actually about that capture i think there's a world where we go in reverse and we get less tech driven and people want less contact with people i think i think it could go the other way so i think you're wrong about that i think you're totally right about apple seven eleven i think you're right netflix i actually think you're right porn hub i think you're right domino's i think you're right i think i brad an all of bro i think i got them all right it's just a question the the great quote is don't confuse a clear view for a short distance i love that quote that's like one of my what's does that mean like imagine you see something on the who you're driving you see something on the horizon like oh there it is just because you see it doesn't mean you're near it right objects in the front view are maybe further than they than they appear and that's what often happens with the future is you can kinda see what the world's gonna do and what it's gonna look like but you overestimate how soon it's gonna come and then you get sort of disillusioned and then eventually you show up you know i think it i think it'll be capable of that i think the thing is is what i've learned reading history is that typically repeats itself or like what's what's old becomes new and what's new becomes old and and it goes back and forth and when we were now that you know people are age and young a little bit younger are always connected i think it's gonna go the opposite that they're gonna be one they're gonna wanna less connection right you know that's why motel like motel in america are booming right now because it's like nostalgia and it's interesting again and i i do think that the the pendulum does swing but i don't know i think both happen at the same time i think that the world agree with on demand and more digital and then people create physical experiences and both exist at the same time it's sort of like the clear view short distancing and a great example of this is like web van you know year two thousand it's like oh grocery delivery online what if you could buy your groceries online instead of through a store and then it like gets all this hype then it crashes and then for like twenty years nobody nobody really touches this nobody really tries this again and then and then here we are with insta card is a multi billion dollar company taking that same idea but putting it in a fresh way with new tech tools and technology like mobile phones yeah i i i i'm on board with a lot of that alright we should call it here and yeah alright that's the end of the episode i feel like i could rule world i know i could be what i want to from at all in it like a day's off on a travel never looking back