#43 - Getting your team to take big risks, Turning office workers into remote, Quiet founders making big money

in this episode we talked about a framework to get your team to think big we talked about a two hundred million dollars a year commercial laundry business jessica simpson how should make it a billion dollar still offer fame and a billionaire in texas you probably haven't heard of but you should don't forget about jam b special special special package i gave sam a special gift which is just underwear with puck i gave sam underwear okay i'm sean this is sam episode two of our experiment of the experiment yes and new studio we're look at fly now the video is good like it's good to have video because now we're sitting in a legit studio i got a book case behind me i look smart yeah it's still i've read none of these books it's work in progress oh that one's gonna fall did you see the videos that we posted yesterday i did yeah cool good stuff good framework good stuff have to continue making it interesting or improve i actually think i rode my bike here today because i was like forget forgot my video i can't be fat so i'm gonna start ride my bike start eating clean yeah this podcast gonna like change my life okay so let's get into this a couple things popped up this morning that i wanted to ask you about we lap last maybe last maybe six months ago we had like ten high schoolers in our office and we're there i forget where they're doing we're showing them around i forget but it starts to talking about twitter and i was you guys use twitter and all of them i'm like yeah it's boom and it's like it's where it's at and and so a few of us at the officer are buying twitter stock that's sophisticated and strategy today popped i think it's up ten percent more it was up seventeen percent this morning yeah so big fan of that big fan of that great job twitter and i have noticed i have been i've spent hours a day on it so i was i had a funny conversation yesterday about twitter so i was i at work and i was talking about i was like you know our our company not public and i was like in some ways that's great because you don't have to worry about the quarterly earnings and all that pressure on the other hand there's no sort of stock price to look at every day you know you could do great work and the shares of the company don't necessarily get more valuable because already got acquired and somebody was telling me a story they were at one of these companies let's call it maybe facebook maybe twitter maybe snapchat and and they were like yeah you know what sucked is you know ten days before their earnings call the cfo you know messages as a product manager is like hey we need to lift monthly active users by like eight million so send out any email blast like you send out a notification notification being like hey you know some thing come look and and i was like yeah that would suck but but that's how funny well the the problem is it it works temporarily because now you're hooked on that now you're in inflate a number it's not inflate it's not fraud right it's just trying to juice the number right for their earnings so you get your stock price you know stay stable or goes up but now you gotta do that every quarter but the any quarter you don't do it you're def and that's a problem so yeah they were saying it wasn't fun to work in that environment and i don't it doesn't matter if you hate or like trump but he proposed something interesting a while ago where he said let's get rid of quarterly earnings report and do six or twelve months and that is an awesome idea that isn't all have you heard of long term stock exchange no they don't heard of this oh this is crazy so eric reese who's who wrote the lien start up yeah might be in this books shelf i can't tell i've heard about it you don't have it up here okay so eric reese for those don't know he he wrote the book the lien startup up it's a great book and you know he's thinking about his next project and he decided you know what's most screwed up about companies is this quarterly earnings treadmill that you get on and it just incentivize short term behavior so he's like if we wanna change the way companies work they're playing the game as it's laid out they're playing by the rules of the game they're incentivized to do short term things he's like but what if there's a stock exchange you could list on where you were incentivized to do long term things so they have some rules around it where it's like you have to hold the stock for over a year so there's no short term trading gets rid of the day traders as the the quantitative trading they haven't launched yet but they've been at this for four plus years i think because not easy to roll out a new stock exchange but i love this idea this is an idea where i'm like yeah that's what thinking big looks like and innovating in a space where there's no innovation and i love great i that interests me someone sent it to me that the his page and was like you guys the hustle should sign up for this right it's kind of interesting and i'm into it i think we should have him come here to talk about it he's he lives around here he's dope and also i met this guy who ran i think he he was like ceo of whatever the new stock exchange so he came to our office once and we were hanging out and i was like so we are the ceo of a stock exchange like wait stock exchange is a business he's like oh yeah for sure we're a business and so basically there's and i'm of a rookie on this still but like in the ten minute conversation we had he was like you know there's nasdaq and then there's ny they compete for listings so they want companies to list on one verse the other and their busy model pretty interesting they lose money in the us but they have the brand of being the new york stock exchange and then they power the stock exchanges of like fifty other countries so you know the swedish of stock exchange they use the infrastructure of like say the new york stock exchange i don't know if that's the exact country but pretty interesting so it's basically a stock exchange as a service which is a very lucrative business to be and i gave you see the new york stock exchange is rumored to be bidding to buy ebay what yeah yeah yeah we reported that's amazing yesterday i think or two days ago yeah it's weird right yeah that is weird i don't know how that's possible but i think it's very strange it very very strange anyway so you were saying something about stock well i don't know i don't know what you're saying so why did i even tell the story about the long term stock exchange quarterly quarterly oh trump's good idea trump's won good idea i think it was his i don't whose idea is i think it's a great idea because i read or earnings reports all the time i mean it's like a a huge undertaking right and what a lot of companies are now doing is a direct listing you know what that is yeah spotify did it slack slack yeah airbnb is rumored to be doing it and i believe what it is is you so the way that a lot of ipo work is a bank will under underwriting it which means they basically buy the early version or the early ish offerings the the early shares and that sets the price and with the direct listing one of the components is it goes live right away so it's what a direct listing is is it's the liquidity of being public without raising capital so if you go public in an ipo it's your initial public offering you're selling shares in order to raise money so it's good if your company needs to raise a billion dollars that's a great way to do it because it's bigger than most private investors can do so that's why people usually did an ipo but if you're slack and you don't need money or you're spotify and you don't need to raise capital you just wanna get liquid and you just wanna be traded a direct listing is the way to get the the liquidity without the raising capital and what it does is it's way faster way less onerous and and you know simpler to do overall and so that's why some companies are not doing this now bill girl is a huge advocate of it you can save thirty or forty million dollars in fees to banks right doing it yeah for sure not a not a problem i personally have but you know interesting nonetheless there's like good clip now what are direct listings okay what do you wanna go through now whatever you want gay weddings tell me about gay weddings oh let's a minute okay so the hustle we covered this thing this morning about a commercial laundry business and it caught my eye i read this so this was it's not surprising because it's like yeah of course this exists but i just didn't know the numbers and that's what i actually one thing i like about the hustle is it's not always fantastic new ideas i've never heard of but it's like we lifted you know we we looked under the hood of this thing you all know about i like i'm talk about this i didn't know about okay so here's i'll write off a few numbers off it's called i believe it's called star laundry yeah so they charge thirty to forty five cents per pound i'm reading the notes now it's gas the people guess that they're around hundred twenty million dollars in sales the way it works is what they do is they make deals with hotels yep or commercial laundry here mostly hotels and what they do is they'll go to the hotel and pick up to like let's say the west or something like that they'll collect eight hundred pounds of linen right or uniforms linen and uniforms they bring it there they've got these massive machines that hold a hundred thirty pounds of laundry and they put them in they fold them they probably do it with like table costs as well as you iron them do whatever you have to do and then you send them back and it was started by a kid who's or he didn't start he's twenty eight years old twenty eight years old his father started it died the kid took dropped out of school and took it over he's rumored to be selling but i was incredibly interested in it and i looked up some of the bigger guys in the space well there's one company i think it's called is it what's that say up there how do you say that ci is that what it says ci syntax okay so they were at four billion dollars in sales and they do a bunch of stuff like renting the to people ryan laundering them four billion dollars in sales like a thirty five billion dollar market cap right interesting so i got a half big idea here so i i read this and i was like oh cool i know a new thing but my brain doesn't stop there it's like how do i capitalize on this new thing i just learned and so i was thinking you know my so my family does airbnb right and they you know they they do you know bunch bunch of airbnb nights a year and it's great great income for them they're retired so it's it's easy but the problem is the like turnover each time and so there's some companies that are out there that are like sort of cleaning services that will come clean your airbnb but what i think would be interesting is if you did the sort of airbnb this commercial laundry service so basically you would give the airbnb the sheets so instead of saying hey use because what what my mom did is she uses her own stuff which is kinda weird because all these strangers are sleeping on it or she would go out and buy new sheets but instead she would probably pay like just monthly to have somebody who delivers fresh sheets and then picks it back up like they do those like you know water bottles yeah that you leave out front i don't know if that would be good and here's why so these guys are doing hundreds and hundreds and hundreds of pounds of laundry a day maybe thou maybe thousands of pounds of laundry right so there's wash and that's my midwestern accent i say wash wash and then rinse yes rinse bought wash and those are just for people people want for people i've used them it caught i pay fifty dollars each time i use it it's very expensive but they're not good businesses i don't think well went out of business and was it or was acquired for next to nothing by so so i think i think it i think this would be better because with you if you do an airbnb two things change right first is i'm making money every time i rent my airbnb b so factoring in the cost of either cleaning or laundry is like well i'm making money but i'll pay a certain amount of my you know revenue my cost so it's thought of as a bit of a business the second thing is you know you get higher volume so like you know when these things turn over it's like i need fresh sheets on it's a two day stay and then i do it all again and that's faster it's a faster turnaround and it's more like business it's more like a b b business than a b business where you do your laundry every two weeks and your price sensitive on fifty bucks you know bet is a unit economics and that would be horrible would be horse because wait hotels you know like like with a bit certainty that there's like turnover of four hundred rooms at that you get the volume yes yeah every night that's gonna happen it yes with airbnb it's not a lot of people airbnb part time or when there well it's just distributed right so your pickup point is not one point you're gonna get you know there's more airbnb rooms in san francisco than hotel rooms and so you you would actually get more volume if you're serving all these customers if they wanted the service but the problem would be operationally you'd have to be sort of a roaming pickup versus what these guys do which is one sale one pickup point so i don't know if it's as good but that's my hap idea off of this this learning so the the two folks in the space sent and called uni first yeah uni first two billion dollars in sales so they do they they clean it and these guys are national or is this yeah because star laundry looked like it was just in new york it was just new york new jersey right and they said it was pretty cut there they're like you know somebody will and say we'll do it for twenty two cents a pound super cut through because it's really cut it's it's probably it's because it's un glamorous i have a feeling it's mostly immigrants so they're probably hustle really hard your competitions like strong right and so what i like to do is whenever i hear about these companies out i out and i wanna learn about the business the first thing i do is i go to reddit i'll type in the name like sent and reddit or i'll look at their class door now i i like to look at the highest reviews and lowe's reviews and i have a feeling i know how these work i have i i i'm almost positive the secret sauce for these guys are hiring just shit loads of salespeople and running through on like crazy right so what they do is in reddit they'd be like what's it like to work here and they would say you can make a lot of money it's a grind and the turnover over is incredibly high and so there's all these subreddit dedicated to sales and sales jobs and these were all ranked or a lot of people were talking about this so they just hire like i imagine twenty thousand remote salespeople people right go door to door and that's how they get it done and they're selling so they like get into the laundry business then they rent you uniforms and then they sell you bathroom supplies and just sell all types of stuff to these small businesses right and they just probably just go door to door to door just it's a it's a you're on the ground yeah in your story the guy said we have no salespeople but i don't know if that's real or not yeah maybe they maybe that was his claim yeah i don't know but or maybe they're not expanding quickly i'm not sure yeah but with these big guys they have it looked like the company did four billion in sales have thirty thousand employees right okay yeah they have some salespeople people right and it was one of the top posts on when i was browsing reddit was say like it consistently said what's it like to be a salesperson right alright what else we got you wanna go to we could just briefly talk about this i was researching stuff for this you know jessica simpson obviously you know i know her yeah she has a clothing line do you know that does a billion dollars a year you know i saw this like two weeks ago when was like what i don't even think she's famous anymore and what is i i don't know anything about it she started a while ago or is this new i'll explain how i think this works okay so there's a couple called i think it's called sequential brands they owned or used to own martha stewart line of stuff they do this with jessica simpson they do it with heal i believe you whatever them yeah stupid things and then they do it with joe's jeans and a few others they either buy like kinda forgotten about brands i think they own d the shoe stores as well so it looks like low end low ish and medium to lowest scent stuff and they just have they work with dill macy's all these like you know shit stores that only like right where i'm from the midwest monica to like and they just partner with celebrities like martha stewart and jessica simpson and and just make a ton of shit form him i mean it's quite simple right but i didn't realize how many people so bought jessica simpson stuff that's crazy it's all moms i believe like people who like drinking the are they buying and we obviously we have no clue are they buying this for jessica simpson oh jessica simpson wears is this this is jessica simpson and stuff or is it just like you know she started this thing it got into retail and it just sits on a shelf and people bought like i find it hard to imagine that justice simpsons still has this kind of pull with people if you said jl lo i'd be like yeah don't know if it's just because i just watched super bowl or what like like kinda looks like every woman in the midwest right right just a white chick with like you know blonde air lady like i have got so many family members that look just like that right i understand why people would buy that crap yeah and and i'm sure people are doing this like youtubers and instagram now right i got more on that okay so first of all this happened you know paris hilton still sells like crazy amounts of one of the best selling perfume of all time still to this day right okay so there's a thing so i went so we have this database on trends trends sign up and where we looked at the ip address of everyone who's using shopify and saw the top selling stores and one of them was called i think it was called color pop yes okay i did research makeup brand it's own but what what's that say seed beauty what's it say what i know it seed beauty okay it's owned by seed beauty a brother and sister partnership that started it they own color pop which sells makeup and they're the ones who basically do that kai yep cosmetic thing so doing the exact same thing right and it seems interesting they have a huge operation there's i i've said this before on the pod ones but they have a youtube video where it's like welcome to seed beauty are welcome to color pop like here's a tour i think a recruiting video but when would he watch it you're like holy shit this is a huge operation what is this company yes and that's when you go look into it where they have like a huge factory yeah it's an la exactly yeah and it's new ish only five or six or seven years old right about them and the brother and sister are very mysterious about themselves and the company they don't talk much about it which only makes me wanna know more about the whole thing here's what i've learned if it's mysterious and they don't talk about it it's huge it's huge it's huge it's i know so many people and i'm like this is huge i was talking about it like we don't want wanna know everybody if if somebody's out there promoting it's less big than you think it then they say it is even this even this podcast right now if i was ten times more successful i would do ten times less content that's just the rule of life right yeah and so you don't hear a lot about these folks right so that's why i think it's massive so if if they don't talk about it there's a guy in texas the named joe le i've here heard of jill no okay so in the mid nineties he was twenty years old he dropped out of stanford and started trilogy software okay and in the nineties it was like oracle microsoft and trilogy were like the places to work he started it in austin texas and it's one of a a handful of reasons why austin became a little bit of a tech up and what he would do is he would make software that was for relatively boring things so for example if you're boeing and you have to build a big jet you need to figure out how many screws and seats and all the stuff you need when you're building this he created automation software that helped to make that process more efficient i don't understand how it works entirely because i'm not even close to that industry but then he did the same with cars and a few other things and he would hire thousands of employees all young people and they had the thing called trilogy university and it's they were famous for they were hired they would hire hundreds of people a year all young people and they would teach them everything and people loved working there and they loved it because he will he's a little mysterious he's also a wild man their stories of him take they would fly all the recruits vegas and he would say they were young kids they didn't have lot money but he would say here's a thousand grand bed at all and he would try to do that to get them used to risk right but anyway if he does for long time and if you google joe la you and you got a google joe sec and you could find all this old filing because they tried to i think they went public and they bought it back but they spun off loads of companies and they grew these things like crazy well anyway in the later nine he's they they hit a little rough spot and he laid off a bunch of people and they kinda like went silent he's back at it now and how old is this guy tv he's in his forties so in when he was in his twenties early twenties he was on all these lists like the bill they're like this guy's bill gates right and he was a big deal he went away and they say he lost a lot of money but he's still very wealthy but he kinda is making a resurgence now and he has acquired maybe it could be hundreds of small not small but enterprise software companies of twenty thirty forty fifty maybe even higher and what he does is he outsourced most of the gigs to india for indian developers and he just increases the prices of the product and does well and no one talks about this guy right but his enterprise it has to be in the billions of dollars in revenue and i have talked about a little bit and forbes has talked about a a little bit but he's a guy who doesn't say shit that is behind the scenes right doing wonderful right love it and that is a perfect example of a quiet guy you never heard of this i've never heard of this guy yeah i've heard the name trilogy before but never joe so you said something in there that i like which is you talked about they had trilogy university and i've seen this popping up now always wondered why people don't do so when i moved out to silicon valley i was like what would i wanna do here what's like the dream gig and my my first thought was i wanna be i wanna help i wanna go to google and i wanna tell google hey google why don't you have a university you should have google you you have one of the best brands in the world you need all this talent you literally have a campus you already built and by the way universities suck and are very backwards and they're not training people for things that actually you need when you hire them have to retrain them anyways and so why not create google you and i'll be the dean that was my initial thought process all you twenty three twenty four so i didn't execute on this call i knew i i i didn't have the the credibility at that time to do that but you know since then i've i've been very interested in and kept an eye on this space so we talked about lambda school a while i so interested in them i still plan to start a school even but i started looking at the some different companies that are doing this now so shopify has shopify dev degree i don't know if you know about this yeah so they partnered up with the university and they're like training developers and they basically get first deb on hire you know i don't know if it's like i know that's like in the contract but the purpose of being of doing this university is to help their talent pipeline right and and then there's several companies now that are starting their own you know corporate universities mcdonald's was one of the first that ever did this i didn't actually know about this but they had hamburger or you and they were basically training young managers and sort of frontline people in a an actual university setting and they would get it you know they'd get a degree and they would be like alright right now you're ready for the next thing so it's was like corporate training but done in the fashion of a university and there's like an a spectrum right so on the one end it's just i'm training you to do the job that we do i think more like what hamburger you was like and then there's you know shopify dev degree which is more like become a developer and then you can get a job at shopify or many other places but i think this is i think this is gonna be a trend that that picks up which is companies either creating their own or partnering with failing universities rebranding it as their own and attracting talent there and having sort of a talent pipeline from the grassroots it's up because it's so hard for them to recruit talent recruit top talent well why has that not happened already it is hap that's what saying it is happening now this sort of there are few historical things like trilogy like mcdonald's there's a few others that i that i looked up and then there's some more recent ones so shopify there's two others that more recently did this i think i might be wrong with this but you know that one like crappy crm companies z or something like this yeah they have their own university and i think they target indian students do from india and this is like their sort of secret sauce on talent so the guy who owns that spoke at hustle khan they've never raised funding yeah they're a big companies and crappy product horrible product it's okay that sucks it sucks compared to salesforce right but they have some things that are perfectly acceptable for where like a smaller thing right but he is in sunny veil he spoke at health and he he hasn't work anymore he owns it though he owns i think he owns all of like one hundred percent of it right like a five hundred million dollar year and they have so many different products so he has like an rv that he like drives around and like in like an airs stream that he lives in and goes all these events he spoke at our thing he's cool dude and yeah he told he went to school i forget what's the school in india it's like a it yeah what is it i t and it's like the the harvard of it's even harder to get into than harvard yeah it's very prestigious yeah and he was telling me that's a that's what they do yeah that's crazy and and it it does work you were saying something he lives he like has an rv so question for you i was looking into what does paul graham do nowadays because he's like you know he tweets a lot he he doesn't run yc anymore so was like okay what is he doing at this time it it doesn't seem like he's active you know investing or anything he likes to write and i was asking emmett from twitch because emmett went to yc you know their their friends and they you he went through wi early on twitch twitch chad so they they were the first yc batch and so he was he's telling me all kinds of cool yc stories and one of the i i asked him was program do nowadays they said something like don't know if he still does this but he took a kid a couple years he basically moved to like the back woods i think in england with his family and like live a simple life in a cabin with the kids and in nature and then he spends all day you know either writing a new programming language or writing essays that he publishes online and like that's what he wants to do write any new programming language or essays and so i asked him i asked him i was like what's your version of that and he gave me a cool answer i'm curious what's your version of that like you have all the money now like you have the money the money's done you if you were to exit the career race what do you what do you do with your life i can answer that i i've done it i've did i did that for about six months what would you do for seven weeks i drove my motorcycle all over the country so i did do that it was awesome it got boring did you have a plan or was like i walk about you just went wherever you i i was like i i was like i'm gonna i have a budget like i didn't spend a lot maybe five grand and i was like i'm just gonna see what i can do so i stayed i cut served i like literally couch surfing dot com airbnb motel in kansas in the middle of country like twenty five dollars that's dope i stayed all over the place i camp just about seven eight weeks out post my facebook where i'm gonna i go i met girls i'd use tinder like crazy i was single right i just so so that's what that would would when you do that you were twenty that was about four year four or five years ago and if i had to do it again i would do that a little while and then me and sarah and my wife we would i would rent an airs stream which and and and drive all over the country and then i would probably visit it ten different countries but that that's gets boring after for a while yeah that's what i'm saying so i've done it so it's it's it's the question is what would you do beyond the sa somatic right because there's the what you would do for three months that's like travel hangout party whatever but then that gets boring in hollow do you sort of feel you don't feel great so what i what thought i was interesting was i think the cabin in the back woods working on his own project as writing his own language in his essays that seemed like his sustainable peace place know like he could just keep doing that and so i don't know what that is for me but i think it's an interesting question emmett was i don't know we had a we on and ask him again it was something like he would go to his hometown i think in washington like seattle and he would remember i think he was like so stumped and he was just like nobody's ever asked me this might be the best question anyone's ever asked me and that's why i remembered like like oh this is a good question let me ask more people i a year ago or some time ago got offered to sell the company we almost took it and i decided no let's keep going this is cool but i was tired so i took jason le taught me this he was like just take two weeks off so was like no i'll do let's do five weeks i was like why not i'll do five weeks i gave myself a bonus i like alright i got money and time money at time and after about two or three weeks i started coming back to the office i got bored and were you like recharged or you're just bored i was recharged board i mean like i was like i gotta do something i gotta go let's go it's like it gets very boring for sure what would you do so i think i i think i talked about this last time maybe that my my ideal life is basically taking like two year plunge and into trying to do something creative and and like that is interesting to me so like i would do two year if it was right now i would basically spend a ton of time my kids and then i would try to do stand up comedy for two years and i think that's one of the hardest things that somebody can do and i just wanna go try it and then i do another two years where i would try to write a book or i would try to make a movie or i would try to build a company or you know i just do these two to three year chapters just doing a creative pursuit i would move the hell out of san francisco if i could i would take my if i had all the money i'd basically tell my family look we're gonna move to this san diego or wherever it is and and i would do that and then twice twice a year i would live in a different place for one month so i started doing this where i lived in a last not last one was buenos aires we went down to argentina and we lived like a local for a month and it was way better than any vacation because we were just living there we weren't like tour it wasn't tourism and it was just a month and then come back and it was a lightweight commitment i didn't have to like give up my life and like go start a new life it was just like a month and i even worked when i was there i was like well worked four hours a no problem having you heard a remote year no what is this it's like study of abroad but for remote workers and they hook it up so they set that is genius oh my god it's genius well did you do study abroad it was awesome i did study abroad amazing if you just do study abroad but now you're seven years into your career that's that's amazing that's all i need to know ef tours that's what i did i think ef education first i don't know what it stands for ef tours huge company billions of dollars in revenue started by a guy an older guy now he's old now but he it it was like a bootstrap thing this is steady abroad yeah but i was curious about study abroad i think it's an interesting thing and i named i think it's austrian and they sponsor tutor the reason why i've looked into it was they sponsored a tutor france cycling team like the best team and that's you i think you get a return on that for some people but i think it's a thing a passion in a money you only do that if you have a lot of money right i was like you have tours that's what the study abroad list sponsoring the tour d france is like thing number one hundred eighty on them how to market our company list do what like postal service sponsored lance i'm armstrong for eight years now had the fraud things not happened it would have been would've been great help the postal service writing no it could be good but you do have to have a lot of money upfront and anyway ef tours did it and it it's a pew tell me about remote year what do you know well they contacted us wanting to work together and so i was looking into it and you just pay it's simple you just pay pay a fee and they hook it up where you can go live different places so when they when you said they wanted to work with us they wanted to work with the company me the hustle to do to like what spot like advertised okay someone just sent but i if how does it work an employee i wanna work remotely leap pull it up i wanna do a i wanna do a study bra your dot c or dot com i forget what it is but there's other services like this where they own destinations like multiple hostel and they're set up for workers not for partying and you can spend like three months in a location there's there's i feel like bali is turned into that fucking hey bali we have steph one of our writers our analyst lives there and she loves it i think it's wack but what's wag about bali you're the only person on the on this island of bali is wack it's it's just like a it's just it's overrated it's just all tourists it's just it's it's it's not like cool in indonesia i think it's just there's places i can't it's like saying like cancun yeah there's places an hour away from bali that are what bali what people think bali is and that's actually where you should go yeah bali is like cancun right what it say does it say how works promote your curious work and travel programs from professionals to see the world without having to put their job to give you basically a like an itinerary but like you're with like a group so it's like a community how much does it cost and is it one whole year oh so okay so it's it's a group of people from different companies that are all gonna go on a curated sort of like tour living in different places working i think this is a fantastic idea i think this is on trend did i sound negative about it i think it's interesting i don't i don't know when i'm enough to say it's amazing or horrible it's definitely either four six or twelve months four six or twelve months what's the fee if for the purpose of this podcast when i say amazing i mean interesting amazing obviously as you go deeper the business means i know that people want it if the economics makes sense what i say amazing i mean oh i'm very interested in that that is an interesting premise polish on all types of remote stuff i think it's great i'm definitely bullish on that cool what else we got about thirty five hundred down payment a monthly grant damn thirty five hundred down and then two grand a month to do this for a year so that's twenty four grand plus the sort of thirty five hundred application fee but how much a lot of people would do this a lot of people would do that because there's so many people be remote single and likely young no no you don't have to be you have to actually be not remote right so you wanna be dying in a cubicle in new york san francisco or la remote job already right no no i think what it is is either they help you go remote yeah for the year like you're not remote you work in hq you're done it for eight years you have enough sort of equity built up with your employer to be like hey i'd like to do a remote year with this program and i'm sure these guys are trying to partner with companies to educate them on like look this is good for your company you'll retain talent in the long run if you let them have these sa radicals he's working sa radicals that's cool google remote your crunch base a lot of companies do this sa somatic thing where like there is after four years you get like four months off four six months off to take us a about because they know like that's usually when you just churn out yeah jason told me someone i look up to that it's at the four fifth five year mark where you get burnt out and i did two and that's when i took my time i was like alright we sold in year five because just tired very tired i wasn't even tired like fatigued it's like need a change right my body started telling me i need to change was it say there is seventeen million in okay seventeen million so i guess they're gonna go big or they're trying to trying to go big i met with script do you know script yeah i met with that guy tripped the ceo recently the other day which was officers and shoot the shit and he's twelve years in and i was like are he's like i was like i tired he's like i have been and i took time off but it's like i'm i'm taking this public i wanna go for a long time right or i wanna take i wanna try and take it public script is big it's very big because they got into like the books and legal documents space and like they figured out how to like north of nine million subscription revenue sorry nine figures yeah over a hundred million in subscription revenue that's good alright what else we got anything else good i have a gift for you hold on it's cool tight thank you alright oh hell yeah okay jam okay sean sent me this where he wanted to invest in them i thought it was a horrible idea let's see if it's a good they do a good job they got all the see hallmark hallmarks they got the d c hallmark lowercase letters the same font and these pastel colors yes it's jam times boxer with pockets it sounds crazy but feels so good as soft is one luxury three brief as breathable as the aria boxer been functional as your favorite okay so let me tell you jam b's is basically it's for when you go home and you you're wearing jeans right now nobody wants to wear that when you go home you do you not take off your pants right when you get home when i get home every morning there's like my pants are at the front door very clearly i stepped out of them yeah exactly you walked through the door and you step out your pants and you leave it on the floor because because you're bad so these are jam b's so basically it's boxer so that you you can wear around i'm like they have no hole on the front so there's no flashing you know danger and they have pockets so you can put your phone in it simplest innovation i've ever seen but do these no hole and pockets these run up when you put your pants on they seem thick so you wear them in you don't wear them with your pants you wear them instead of pants and instead of underwear you just wear these alright so you most people wear like they had a a slide in their pitch that i liked which was like everything people wear at home is not meant to be worn at home it's like basketball shorts the yoga pants yoga pants so you know it's like you know all the like so people are wearing the wrong thing so they're like we're gonna make the thing that you should actually wear when you wanna just lounge around at home alright i'm gonna wear great yeah i'll report that so i was all about it and my wife was making fun of me because she's like what the hell is this why what because i was i was checking the front door every day to be like are my jam here you used to my jam i was so excited i don't know why and so i i got him and she's like okay i wore him them and she's like these are just boxer and i was like put the pockets and no hole up upfront and then we had some friends come over and she was like no leave your on do you love your jam leave your jam on and i had to like you let them i left him on with friends over and i was very uncomfortable was like i wouldn't do this really really but they were like okay you're just wearing boxer and i like no these were jam bs and then we had a debate and it was all good well i'll report matt yeah exactly i need somebody right now i'm the only person i know that likes these things but if you if you like them you'll be two otherwise i'll know i'm the only one i'll know in a few days i'll report back tomorrow you wanna do one more yeah i have one i have a framework so not an idea scroll down a little frame is a little bit boring but i think this one's a really interesting so so this is so if you run a team or a company and you want them to think big have you ever been frustrated why people don't think bigger and like sort of take bigger swings in the company yeah i have a theory as to why that happened okay so i'll tell you you tell me your theory and i'll tell you one of the reasons i think is there didn't raise venture capital and so i think that i my hypothesis was one of the reasons why this happened was because i was so frugal early on and i was like oh well like we have let's say a thousand dollars here five hundred dollars there and that created small thinking right and that's one of the reasons and look at you now buying two hundred dollar chairs like is nothing i our first office rent was five hundred dollars a month right and then i remember being like now we've spent well in fact you guys worked out of the craigslist original office maybe say that story for tomorrow be i'll i'll tell a good story about that we worked out a craigslist first office when like they moved out and we moved it in like when you walk in into sign still says craigslist ink or whatever yeah i'll i'll tell it story tomorrow so okay but so you you're saying because you were frugal early on but but thinking big doesn't take money thinking big doesn't take money right most big ideas don't take that much money okay so what's the answer so here's here's one of the reasons why right so first you know it's it's about the people you get some people are dynamic and they they only wanna work on big things and take big swings and so one thing is we hire people who are good at executing because we need to execute on something that's already figured out you don't want people just bouncing off the walls with new ideas all the time when you need people who can execute but what ends up happening is at a certain point you need those same people to start thinking big and taking big risk and working on projects that might not work right like this podcast for example if this podcast gets big it adds a whole another dimension to your business but let's say most likely it's hard to make it big it might not work and so you are the one who can spear this in your company or somebody like me but it's really hard for all the people out there to do to spend time on something like this i'll tell you why so this is a jeff bezos theory that i also heard from keith or boys so the thinking is this when you what most people do when they run their companies is they measure people on their outputs let's say you wanna grow the newsletter right because the newsletters are core business so there's somebody probably in charge of growth or growing the newsletter and you know you'll judge them on how much of the newsletter grow and so because of that you know they get tuned to work to being measured by the output somebody wanted to work on this podcast project they'd be like okay this is valuable if we get to our goal hundred thousand listeners per episode that's not easy to do that's a top fifteen business podcast most likely gonna fail so i don't really wanna attach my name to that because if i'm gonna be measured by the output i don't wanna do things that are most likely to fail so like you know if you're elon musk and you wanna go to mars it's very hard to get convince people to do that when it's most likely gonna fail so what happens is people start optimizing it's like we were talking about the stock market earlier the incentives in a company are to do things due to to do projects that are probably gonna work because it project works you look good you look good you get promoted you get promoted you make more money and so the game is incentivized for you to do things that are probably gonna work but the company as a whole needs people to do things that are probably not gonna work yeah at a certain portion of your time higher risk higher reward projects but as an individual tying your name to those projects is it bad career move so how do you change that so jeff bezos says a different theory which is like look instead of measuring the outputs which are in general hard to measure anyways right how do you raise revenue well you need to do these ten other things right you wanna make you want more revenue maybe you need to get in touch with more sponsors maybe you need to increase your close rate from twenty percent to thirty percent there's all these inputs these levers that create that output relatively small ones and and they're very specific and those are in your control so as you go from the output let's say get more revenue to the input which might be like make more re you know reach out to x potential sponsors per month close at this rate make sure that we follow with one hundred percent of hot leads like those are inputs in your control so what he does is when he measures when he manages somebody he measures them on their inputs not the output so revenue cannot go up but if you pick the right levers and then you'd hit your goals on those levers those things that were in your control you can get promoted what's an example let me let me use a hypothetical example of laundry of well i think it's i think the hustle business is actually a good one to use here so let's say let's say you wanna measure the output you want what's like the key output you want either revenue or or audience growth okay so let's do revenue i up a number two two million a month in revenue two million a month okay so the team wants to hit that goal we all agree that's the right goal what are the three biggest levers you need to do in order to achieve that goal increase free email subscribers increase paid email subscribers or paid subscribers increase number of advertisers cool so you say number of advertisers email subscribers and trans subscribers what you would do then is say okay am i in control of those things maybe not right maybe getting the email list to grow actually requires me to do three other things right like how do you guys get the email list to grow maybe it's paid ads maybe it's giveaways maybe it's traffic web traffic from a blog right so it might be what you what you actually set out as the employ the way the employee gets measured it is number of blog posts they wrote per month that received a minimum of this much traffic it might be the number of you know emails sent out about trends or might be increasing the conversion rate on trends from x percent to y percent do you know a good way to organize that okay ours okay ours is a good way to to organize right but what ends up happening so so let's like get so the main point i wanted to make was if you're measuring outputs it's very easy thing to do because it's like dude all that matters is growth revenue is profits right what you'll realize very soon is that you can't motivated team to do that because it's too far away from that what they control you gotta measure them by what they control and promote them if they do the if they were very thoughtful about picking the right levers if they execute it really well on those if they were consistent on those things that's a good employee you should promote that because that way even if the output was unlikely right like let's say growing this podcast into a top ten podcast but if henry's motivated by hey after every episode you need to publish five five of the best clips why because we are pretty confident that leads to growth right so he should be able to win even if the podcast doesn't kinda want you focus on the inputs what you could do what you can control as opposed to the outcome the second second phrase i liked from this was it's all about zeros what does that mean you think about a project you need to have enough projects in your portfolio that either add a zero or r a zero what does that mean so you don't want if let's say let's say revenue at let's call it ten grand a month what you wanna do is you wanna have some projects that we're gonna that are gonna add a zero to the end of that ten grand becomes a hundred grand and you wanna ask yourself what are our at a zero projects how many add add of zero projects that we have running right now what often happens at companies you have zero of those running at any given time you have no projects that have the potential even if they worked to add a zero to to the to the number you have at the top and what what happens with those projects is that most of the time they're gonna be a zero they're not gonna work at all and so i like these i like having this language to motivate a team so anyway anyways that's my framework for leading a team make sure you're doing this it helps that up so bezos is kinda famous for the inputs versus outputs there's other things like there's a book called the score takes care of itself like the wall about the full football guy or bill walsh she had the football was like in order to win this championship we're gonna answer the phones on time yeah he's we're gonna answer our pre phone call he took over a really shitty team in san francisco forty nine at the time they were the worst team in the league for miss several years running and what most people will do is say okay how do we win more and winning is the ultimate output output for a a team winning the super bowl well he said was winning the super like that that is so far away what we need to do is what our input so the first thing he did was he trained the front desk person on how to answer the phone and he's like we're gonna nail this and what's the next thing we need to nail how we practice here's how we get here's how we stretch here's how we warm up he's a very detail oriented guy so like that was his mantra but like fundamentally what he's saying is the same thing we measure ourselves based on the things we control and the score takes care of itself if we do the if we pick the right things the score will work out well here's one you're clip we got one this that is one of the looks good that was a good speech and that will help take care of our score exactly cool anything else we wanna do today no we can do these tomorrow okay that was wonderful that was good so story just like that john wasn't like famous cc ucla like coach tying the shoes right thing yeah i had to put on your socks and had tie shoes is that's the first day of practice yeah there was no there was no basketball everyone walked out to the court and they're like coach wears the ball he's like we don't need a ball first we learned how to put on our socks entire shoes so that we don't get blisters because we're gonna be practicing hard so you need your socks to have no bunches everyone's like what the hell and this is the guy who won like you know ten championships he just passed away i think recently yeah right yeah yeah a few years ago i'm gonna alright i also bought i bought bill bella checks one of his books i have a book club we're gonna read it yeah let's do a book rec from from this list here so what's a good book that's on the shelf we should add more to it but let's see oh also high output management so this principle is in this book too yeah i like the you output management i hate reading it but i like the knowledge i hate reading it i was given boring i only read twenty five pages just to be honest but so boring scott's be is the messy middle is wonderful i'm gonna add more custom stuff if i had to read one right now maybe this extreme ownership one that's pretty solid extreme motion jo where is that that's the very bottom right and if you had to read one we'll do we'll do one book rec at the end of each day alright and then let's i had to do one i didn't see it's call me ted right there yeah the buyer free of ted turner alright this this is the book recommendation of the day call me ted yeah why is this a good book i haven't read ted it's good because ted turner like how he looks turner started cnn which eventually merged with aol and time warner and all the stuff it's it's huge thing he started tb is he the one who created the concept of twenty four hour news or yeah yeah he his father ed own a billboard company in the south and it did well i think it was make like ten twenty million dollars a year with three four million dollars of profit pretty solid he his father killed himself he inherited it within a few years he was like alright now let's get into radio they got into radio then he goes we have to let's get into local tv he got a local tv and then he said we got we need more programming let's buy the brave let's buy the hawk atlanta hawk so he was in the south did that is this why the brave are on tb always in perpetuity yep and nice started he goes now my next big project we're gonna start cnn it's gonna be a twenty four hours new twenty four hour news network and the only time we're gonna go quit go off air is when the world ends so he recorded the like a goodbye segment is like the world about the end we thank you for tuning in and wow he he bet it all many many many times he started out third base i mean he started out with wealthy family but he turned that into a huge thing now he's one of the largest landowners owners in america and he's a huge outsiders from the south loud mouth pretty obnoxious but smart have you met him know he's probably gonna die any day now he's got to mention he's quite old but reese him he him and his partner are indirectly investors in us and i and i always seek out stories on on him i remember when you started the hustle you were like i'm i'm inspired by this guy i wanna be the modern day ted turner type of thing you were awesome you're very by of everybody he's badass ass he's mostly a great person he wasn't always a great husband but he's screwed up did some great things though he did a lot of great things he owned mgm just baller nice so read this one alright cool good book recommendation alright out we're out thank you