My First Million: The Future of AI Art Generation And How Production Companies Are So Profitable

Hubspot Podcast Network Hubspot Podcast Network 9/6/22 - 54m - PDF Transcript

All right.

Quick break to tell you about another podcast that we're interested in right now.

HubSpot just launched a Shark Tank rewatch podcast called Another Bite.

Every week, the hosts relive the latest and greatest pitches from Shark Tank, from Squatty

Potty to the Mench on a Bench to Ring Doorbell.

And they break down why these pitches were winners or losers.

And each company's go-to-market strategy, branding, pricing, valuation, everything.

Basically all the things you want to know about how to survive the tank and scale your

company on your own.

If you want to give it a listen, you can find another bite on whatever podcast app you listen

to, like Apple or Spotify or whatever you're using right now.

All right.

Back to the show.

So LeBron's production company, 45 million in 2020, 100 million in 2021.

If I was these guys, I would play the long game Jeff Bezos style and just saying, I'm

going to drop this dope premium content on YouTube, TikTok, Instagram, whatever.

I'm going to blow normal content out of the water here because I'm bringing production

budgets to this and I would be willing to invest 20, 30, $50 million in order to build

like a billion dollar plus type of brand payoff at the end.

All right.

In this episode, we are talking about the latest industry that I am totally completely

obsessed with.

I almost can't think of anything else and I'm not sure why other people aren't freaking

out about this.

I want to rant about that.

What else we got?

We talked about Mark Manson and how he's got this amazing empire on this book called

the subtle art of not giving an F, I'll say F there, and how it started just as a blog

post and turned into this amazing business that's making tens of millions of dollars

for him.

And then we also talked about production companies and how the breakdown is actually

way better than we thought, you know, the economics and how it works is far more fascinating

than we anticipated.

All right.

Enjoy.

All right.

We're live.

I'm in a horrible mood and the bad part about this job is like you have to like immediately

snap out of a horrible mood and I can't exactly explain all the details about why I'm in a

bad mood, but basically involves like a real estate deal that I did and someone I feel

is trying to take advantage of me and here's what I think happens and tell me if this happens

to you.

I feel like I do a deal with someone or whether it's like a small deal or a big deal and then

they like learn about what our stupid podcast is named or they Google us, but it's mostly

the fact of the podcast is such a horrible name and then they like, you know, you get

like, you know, like in Hawaii where they got like the local price and they got the

other guy price.

It's like, it's like, I get the other guy price, you know what I mean?

And even if it's just a little of another guy discrepancy, it pisses me off.

That's hilarious.

Yeah.

I don't think that happens to me.

No one's ever referenced it.

I've never got that feeling.

In fact, I actually get a bunch of credit the other way.

People are like, look, you know, I don't want to offend you with like a low ball offer on

your, on whatever, whatever it is.

I know this money doesn't matter to you and I'm like, dude, like I'm showing up here.

The money matters to me.

Right.

Like, you know, please don't not give me the money because you think it won't matter

to me.

Like, you know, I think it does.

Right.

So I think that it goes, it cuts a little bit both ways.

People like, I hate the thing where it's just like, dude, thanks so much for taking, I know

how busy you are.

I'm like, dude, I just like sit around in my boxers all day.

Like, you know, I don't know what, I don't know what you think I'm doing, but like my

son just threw up on me like two hours ago.

This is awesome compared to that.

What do you think my life is that is so, you know, so busy and interesting because it's

really not.

Yeah.

It is funny when people say that.

I'm like, well, I am busy.

I'm talking to people all day, but like, I don't think you understand that like talking

is just like slacking back and forth and like having conversations.

I remember when we first started the hustle, like basically these like producers, and this

happens all the time, these producers, they email just tons of people who are even remotely

interesting and they're like, Hey, can we make a TV show about you?

And obviously like, they didn't know what they're getting into.

Like I'm not, we weren't even remotely interesting enough.

But I'm like, you guys do realize we're just sitting in front of a computer all day.

Right.

Like it's like the most unfascinating, uninteresting thing.

It's not interesting at all.

But yeah, I'm shocked you don't get like that other guy pricing.

Do you have a B and W, right?

Yeah.

Is your house fancy, you think?

Or just normal, normal nice.

My house is not fancy.

My house isn't fancy either.

And just like, I don't know when they like, maybe when they see that like I'm at home

during the day.

I don't know why, but like I just, I'm always nervous.

I'm like, wait a minute.

My neighbor's paying only 150 a month for their landscaping.

Why am I?

Why do you tell me 250?

You know what I mean?

I feel like that stuff has.

He has a podcast.

Get out.

Get your wallet out, boys.

He's got a podcast.

So whatever.

I'm past it.

I got to move past it.

That's so funny.

You said that thing about filming, by the way.

I had that same idea back in the day at Monkey Inferno because we had this really nice office

and I thought building startups was the coolest thing in the world and I was like, why isn't

there a documentary crew here?

Like, you know, the office, but I'm the cool Michael Scott, right?

Like, I'm awesome.

And so, you know, I had watched Hard Knocks on HBO, which basically makes like NFL training

camp look like so epic.

So like you start rooting for these stories, all this stuff.

So I was like.

And they have like mics on the players and you hear like, hey, hey, get him, get him.

Hey man, what you doing?

Like you hear like them talking and like the pads hitting, you know what I mean?

It's like good.

And it also extends.

It's like, what you doing?

Like, oh man, I'm just having a lot of trouble at home and it's like cue the music and they

cut to the backstory of like, you know, what's going on at home.

And I was like, yeah, we got these stories, man.

We're trying to make it into the rough and tumble world of social media.

And I was like, you know, so it's like, I thought we were cool.

And then this like filmmaker type person came to the office, they're like, wow, incredible

place.

Quite day, huh?

And I was like, what do you mean?

Like normal day.

He's like, everyone's just sitting there with their headphones on, like not talking to each

other.

I'm like, oh yeah, that's what we do all day.

And he's like, well, what would we film?

And I was like, well, sometimes we have like a meeting where we look at the numbers, I

guess.

Yeah.

Yes, you're right.

We're lame as hell.

And so yeah, that ended at that point.

It's so lame.

It's always embarrassing when people like sometimes our address in the daily email was in our

email and people would stop by and I'm like, yeah, so this is the one room that we sit

down in.

There's the bathroom.

You can go to the left side or the right side.

Do you want to see what it looks like from this corner?

We just sit here and don't talk sometimes for three hours at a time.

There's music playing in the background every once in a while.

Your office was hilarious.

It's like, why do the dogs sit in chairs and the people have to sit on the ground?

You're like, I love dogs.

It's like, why, you know, what's going on here?

Why is there only peanut butter in the kitchen?

Yeah, dude.

I used to eat like a jar of peanut butter every two days.

That was my schtick.

Dude, I think these videos still exist online when I was doing my very first startup straight

out of college, which was like two buddies doing this stupid sushi restaurant thing,

living in one apartment, you know, like my buddy lived in my closet, my co-founder lived

in my closet and like, you know, we, we all, we would basically buy air mattresses and

like return them every 90 days to target because we were like, oh, you could just like get

your money back.

This is awesome.

Yeah.

Idiots.

We're totally living the life with this.

And so basically we, we were like, I don't know why we were like, you know, the way to

make a restaurant, you know, a restaurant's not open yet, but what can we do that's like

our scrappy mark?

I don't know why we even thought this was like remotely relevant, but we're like, let's

get people invested in the journey of building this to do that.

Let's create a YouTube channel.

And we called it the dual and it was me and the opening clip is like a high noon, like

a standoff.

Like we both walked 15 paces away, turned around and looked at each other dramatically

and it's like the music's on and then we, we would take a challenge from anybody who

commented on the YouTube channel and we would do that thing and so it was like, oh, you're

doing a sushi restaurant.

Brush your teeth with wasabi as toothpaste for one minute.

And so we like did it and then we would, it's like, you know, whatever we do, these like

really dumb things.

You're going to see they're like in this apartment and like ugly looking kitchen.

And it was pretty big.

I mean, you had literally dozens of subscribers.

I remember we, I went out to a casino one time and my sister was in town and this guy

goes, you're the wasabi guy.

My sister was like, what are you famous?

And like, I was like, what am I famous?

And it was like, it was like the first hint of what was, you know, fast forward 12 years

and created the podcast.

Like, but in that moment, I was like, this feels nice.

If I do dumb shit, people will then know me and then it ends after that and all I tacked

on later was like, and then I could sell cohort based courses.

But anyways, long story short, I, if you remember when clubhouse was popping off, there was this

group of also people in college, like people just graduating college or in college that

created that show.

Shoot your shot.

Do you remember this?

Yeah, it was popular, like really popular for four weeks, basically.

And if I remember correctly, it was like three good looking women and they would call up

a guy and the guy would hit on them or would the girls make fun of the guy?

I forget.

So they created a room that was called NYU girls on clubhouse, which was already interesting

because clubhouse was just SF dudes.

And so you go from SF dudes to NYU girls.

That's like a major, you know, walking into a room full of bears with a pocket full of

honey.

It was like, well, what's going on?

There's there's interesting people on this app.

Just like, you just imagine a bunch of like good looking Soho women who hang out with

James Franco, write poetry and like, you know, don't wear bras like this, like it's like

stereotype.

Oh, NYU.

There's already no bras on clubhouse, but now there's girls with no bras on clubhouse.

Right.

So anyways, they created the show and shoot your shot was basically to call up a awkward

tech dude onto the stage.

And he got to like shoot his shot kind of like basically like a ultra budget version

of the bachelor's like, come on here and spit game at one of these girls and we're

going to talk for 20 minutes and we can either boot you off or we like you and like you're

in the group, you you kind of pass the right of passage thing, a little dating show.

And so it started organically, but it got to be like the most popular show on clubhouse,

which was, you know, the small pond syndrome, right?

Like you were the best thing in a small little growing pond.

It was embarrassing to listen to.

I was embarrassed.

I was like, it was it wasn't bad, but I was like, oh, they're going to make fun of them.

Oh, don't make fun of them.

Yeah.

Don't don't say something stupid guy, please.

Like I was rooting for the men like, don't not to screw up.

You know, they would get out safe.

Hey, you know, my name is Akbar and you know, typical sass guy and they're like sassy guy.

And then he's like, no, like sass, like B to be sass.

What are you, what are you saying?

What are these words, Akbar words?

So anyways, do you know what they're doing now?

The fact that the fact that you said that phrase about them, I'm already on board like

in.

Yeah.

Yeah.

I'm listening to this somewhere, he's like, there's, I can do it again.

So I met the main girl who was behind it.

I think her name is Devin and we did a zoom call.

Did she roast you when she's like, what's that bird?

Yes.

And guess what?

Loved it.

Now I'm like, I did the zoom call.

You know when you beat a founder like within sometimes within 60 seconds, you're like,

all right, you're a star.

So you're a star that's established now.

Now I just got to figure out, is this your dumb idea?

Your kind of dumb idea or your good idea because you're going to go through probably all three

and I just got to figure out where you're at in life.

Have you met founders that are like, oh yeah, for sure.

And it's just like you're, you're not, you're not there yet, but I still am interested in

buying the stock and getting in.

I think that's why a lot of people invested in me at the hustle.

Same thing with me.

Like I'm like, God, people gave us this idea for our sushi restaurant and they were helping

us and they really liked us.

Like I thought that meant we have a good business idea.

And actually what was happening, but now that I'm in that position, I'm like, they're just

like, oh, this guy's going to do shit.

I like this guy's mojo.

This is his dumb idea and like, you know, whatever, I'm on board to get to the good idea.

Like I'd like to start this relationship now so that as he figures this shit out, you know,

things, good things happen.

That's how I felt about this girl.

And so she, she's like an NYU woman.

Like is she like that?

Yes, she was at NYU and then she graduated and so now she's like, I don't know, shortly

out of NYU.

So she's raised $6 million now to build her show Mad Reality.

So the old thing was NYU girls roast tech guys.

That's what the room was called on Clubhouse, which was great.

And now it's called Mad Realities.

Mad Realities is they have a, they went to like web three and like all the stuff, right?

Like, you know, I don't know if you do that.

They basically gave NFTs out to the audience.

Audience just to vote.

It's like the bachelor, but the audience like votes on what's going to happen in the show.

And so it's a reality show where the viewers kind of like, you know, they can kind of help

fork the show and engage with the plot in some way and fans vote them off or whatever.

And so they created the show.

You can be an NFT holder.

You get a roseholder.

Like, I don't know, like they've raised, I think 172 ETH.

So what is that today?

Like at today's prices, that's like 250 grand of sales of their NFT.

So not, not huge, but you know, not terrible, but like the A plus firm in crypto paradigm

invested in it led the round, I think.

Do they do, is there a reputation to do anything that's decent or they selective?

I'm, they're a little mix of both, like they're the smart guys in the room, but I also think

like part of being the smart guy, you know, like the smart guy starts to do weird and

crazy shit.

And you're like, you sure this makes sense?

And they're like, no, it doesn't, but that's why it makes the most sense.

Like, all right.

You know, like, like founders fund, you just invested in like, I don't know, like this

plant that like only causes you to hallucinate in a bad way.

They're like, hallucinogens have a bad rap.

And you're like, all right.

They're like, in 30 years, hallucinogens will be your morning cup of coffee.

And you're like, I don't think that's true, but you're so smart at, you're good at chess

and math.

So like, I guess I'll just defer to you on everything in life.

That's how I know how to treat you.

Yeah.

You weren't deaf PayPal in 2008.

You know what you're doing, you know, like your hobby is cryptography and you created

PayPal.

So like, I guess I'll roll with you on this like, you know, kombucha that you're investing

in.

So anyways, that's kind of what I felt like was going on here.

Like, here's their investors.

So Paradigm Let It, Paris Hilton, Paki McCormick, you know, like Scott Belsky, friend of the

pod, you know, our homie who's super smart.

But I thought this was kind of interesting, like to create a show.

And I've actually been, I don't think this is, so two things came to mind.

One was when you're a star, you're going to get funded to do some dumb shit and that's

okay.

I actually think it's a smart idea to like back these star people because they're going

to do amazing things in their life as long as they just keep taking attempts.

I think this is probably not her best idea, but, you know, three years from now, whatever

she's building is probably going to be amazing.

I'm on their site and I'm just skimming through their videos.

I don't know, man.

It seems like they're executing kind of well on maybe a dumb idea.

It seems like a dumb idea, but like my wife is a very smart, you know, techie woman and

she like is obsessed with the bachelor or the bachelorette, whatever.

I don't even know what it is.

Like we have to have, we have it in the house.

I know it.

I think it's like Tuesday at eight o'clock.

It's like on.

Yeah.

Way to throw people off your trail there.

Say the wrong date.

Yeah.

Like you don't sit down every Monday with your, with your glass of rosé with Sarah and you

guys don't watch this together while holding, holding toes.

I can't.

That'd be weird.

I, I can't stand it.

All I know is this season it's two women picking dudes and I just don't like, I don't

like the thing at all, but I know that it's a huge deal.

It's still like a huge deal and my wife, Sarah is like talking to all of her friends about

it consistently.

So like, I don't know, man, this is kind of a cool idea.

So it definitely does seem big.

And I actually do think that you and I don't know about you, but I don't know anything

about the movie business or Hollywood or entertainment.

I don't know anything about that.

And when people talk to me about like a production company, I'm like, the fuck is a production

company?

Like I don't know what that is, but I do know that Reese Witherspoon owned one of them things.

He owned one of that production company things.

And it got acquired by Blackstone for like $500 million, like a few months ago.

And I do know one of the richest black men in America, I believe his name is Byron Allen.

I was reading about him on Wikipedia.

I wanted to learn more about what this guy did.

And it was like talking about his production company and all these shows that he made.

And I'm like, damn dude, whatever this is, it's actually much bigger and more organized

than I ever even imagined.

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So it's funny you bring that up.

I've been actually in the lab, it's not ready yet, but we're going to take it out for a spin

right now, which is I've been in the lab learning about production companies.

And I want to tell you kind of like, can I give you just like random rant?

Like, normally I have to have like a packaged, like a take on it.

That's what I like to be.

But you brought it up.

So let me give you the unpackaged, unfiltered, raw, like what I'm seeing so far.

Give me that cookie dough.

Yeah, exactly.

Hey, turn the oven down.

We don't need it.

We got a spoon in the dough.

I want this content extra gooey.

So all right.

So what's going on?

So basically there's streaming wars going on, Netflix, Disney, Hulu, everybody's fighting

for subscribers.

Okay.

Well, how am I going to differentiate from, if I'm Netflix, how do I differentiate from

Hulu and HBO and all this stuff?

Basically they need original content.

Okay.

So that's created this like huge imbalance of, there used to be a lot of content and

a small amount of distribution.

Now this is a lot of distribution fighting for a small amount of content and all the

distribution players have just decided like the prize is big.

Let's lose money for a lot of, like several years and invest billions into content and

like, let's be the last person standing.

And so they're, they're investing on what you call a J curve where the curve goes down,

you lose a bunch of money and then a J, like a J goes way up and you make money later.

What that means for these production companies is they'll overpay.

There is a bidding war and they're willing to overpay for my content.

And so, so like just the last year, basically Wreath Witherspoon, LeBron, Will Smith, Kevin

Hart, they have sold stakes in their production companies.

So like, for example, Kevin Hart, he has something called Heartbeat.

He raised a hundred million from private equity for 15% of the company.

So 650 million dollar valuation, Kevin Hart, Kevin Hart, 50% of their revenue comes from

the studio arm, which they produce shows for Peacock, for Netflix, explain what that means.

So they have writers on staff or writers come to them with an idea.

They go, this is intriguing.

We're going to pay money and we're going to pay a hundred or $500,000.

We're going to go get some actors and a set.

We're going to make one or two episodes of this.

We're going to shop it around and then someone will buy it and we make profit.

Exactly.

So I'm going to use a Hollywood term that I don't know how to use, but I'm going to

just like, you know, whip it out here.

They option it.

What does it mean when they option it?

It's like, you know, they basically like, it's like, they take an option on the future

of this thing and they basically take, you know, they create a sizzle reel.

It was like a two minute teaser or they create a pilot or they create nothing.

They just have the pitch and the concept and you're Kevin Hart, you go walk into six studios.

You say, it's a movie where me and a tall guy, we are coworkers that don't like each

other, but then we get trapped in an elevator and they're like, love it.

We'll take it.

You know, and you're like, you know, how much does it need?

It's like, we're going to need a hundred million dollars to do this.

Of that, you're going to pay the production company X millions of dollars to go produce

this movie.

There's some margin in that.

And then whatever the revenue or the upside would be, you know, of the project, we're

going to have some, some split there.

But he also has other businesses that produce so 50 percent come from the studio arm.

Well, what's the other 50 percent?

It's a combination of other things like content licensing, brand consulting work for companies

like P&G, Lyft, Sam's Club, stuff like that.

So I don't know what he's doing, but like that's Kevin Hart's business, the 650 million

dollar one.

And the value here is presumably Kevin Hart and team know about what type of content

gets eyeballs and gets engagement.

They presumably have connections with all the big players and they have some money that

they'll finance things up front and and that's their curators and operators.

And they're the influencer.

So it's it's it's like, you know, everybody kind of knew, hey, if you go get a list star,

you put Tom Cruise in the movie, more people are going to watch.

Well, what these guys have realized, LeBron, Reese Witherspoon, Kevin Hart, The Rock, he

has his own production company, what they realized is, oh, let's just go vertically

integrated.

Like, let's not just be the talent that helps sell the tickets at box office.

Let's also be the production company that creates the thing.

And then and then what they don't do is the streaming platform part.

They're like, OK, we'll we'll partner on that, but we're going to do these other components

ourselves.

So they're also, you know, the big part isn't just that Kevin Hart knows what people want.

It's like one of the things people want is Kevin Hart.

So he's like, cool, I'm going to own a little more of my upside if I do this.

And you know who crushes it this way?

Fucking Ryan Seacrest.

I was reading about Ryan Seacrest and American Idol and this guy, that guy is a workhorse

and he has a production company that kills it.

Yeah.

You know, you know, our buddy, Pomp.

Pomp is like the Ryan Seacrest of the crypto industry.

Right.

Like he's just everywhere.

It's like, dude, you got a morning show and then an afternoon show, then you're producing

this thing.

And then at night you do this.

Like, wow, you your output is unmatched.

That's Ryan Seacrest.

This output is crazy.

He's like, I'm on radio for three hours a morning for 20 years.

Then I do this.

Then I put on my suit.

Then I host this.

Then I produce the he produced the Kardashian show.

Yeah.

And then he's like, then I go do American Idol.

And after American Idol, I go do this other thing.

And he's like, geez, man, like, like Blink, you know, what's going on?

Dude, he's grinding, man.

Yeah, that guy kills it.

Then there's Reese Witherspoon.

She sold her company.

They made the morning show, which was that big show on Apple TV Plus, Big Little Lies

for HBO.

She sold that to Candle Media, which is basically like a bunch of Disney execs spun off and

create with like Blackstone back them for like a billion dollars or whatever.

And so she sold her entertainment company to them 900 million.

She creates shows around women.

That's like her shtick.

And so she, by the way, she's awesome.

I'm a big Reese fan.

Reese Witherspoon at Brad Pitt.

If you're in it, I go to it.

You called her Reese Witherspoon earlier and I just thought that was a nice like touch.

I had never heard that, that rendition before.

I liked your remix.

So, so, you know, I call it money.

This is just Reese.

You know how much money her thing made 120 million in 2021 in revenue and they expect

revenue.

So huge.

They expected to double it to 310 million in 2022.

So Blackstone paid like roughly a seven X revenue of where they bought it.

They bought.

So it's kind of crazy.

And so they basically, they don't own any ownership.

They make the show for the streaming service.

And then by the way, they also, when they bought the company, she also has a book club.

That's like ridiculous.

Do you know about her book club?

Yeah.

She also has a clothing brand.

The clothing brand brand wasn't a part of it, but Daper James or Draper James or something

like that.

What's it called?

I don't know.

I don't know.

I like that.

And then she has a book club.

It's sunshine, something like hello sunshine book club.

Is that what it's called?

I think it's just called Reese's book club, but it has two million followers or members

in it.

I don't, that's a kind of a silly number.

So what she does is she promotes her favorite books.

And then what she does is she goes to those books and she's like, Hey, I'm about to blow

your ass up, but also I want the option rights to make a show out of your book.

If I can get that.

God.

And so she's like, market tests the books with her book club, makes money there, uses

that leverage to get the rights to that book to make a show out of it, then sells the show

rights to the next givers.

She's great, man.

Okay.

You know, like cutthroat, you know, like media mogul or wow, like, you know, that's an amazing

model.

So yeah, I think that's kind of crazy.

And also she also sold, I think the data.

So like the people who bought it, I think they get like, you know, access to that membership

of the book club and then the data around them of what they like, what they dislike.

So long story short, this mad realities thing, you kind of just did the pitch for them where

I'm like, okay, the macro thing, that's as an uneducated person.

That's mildly interesting.

That's it.

That's an interesting story.

You, you kind of sold like this actually could be a huge thing.

This could be as big as any other tech company almost.

So that's interesting.

This young woman doesn't have, you know, she doesn't have the clout or connections is likely

that Reese or whoever has, but like, she's got the charm.

I buy it and and the hustle.

And I think if I was her, so here's my brainstorm for her.

I think I might have told her this at some point, but I think if I was her, I would not

be trying to create this like standalone show.

So I would immediately have been shopping this.

I would say, Hey, here's the deal.

I can make you the next too hot to handle love Island.

Love is blind.

I'm going to make one of these shows.

And what I would first do is I would build this.

I would build the audience on Tik Tok or Snapchat.

So I would first go and sell it to the social platforms that also want original, cool content

for a small amount of money.

And I'd say, Hey, I'm going to create cool dating, I'm going to create a dating show

on top of Tik Tok.

What's that work to you guys?

And they'll say, Oh, like, we'll give you 300,000 or a million dollars out of our creator

fund.

Yeah.

Because Tik Tok has, I think a $200 million creator fund.

Right.

So I'd go to them and I'd go get a million, a million and a half dollars to create the

Tik Tok dating show.

And then I would just take that popularity and I would say, Hey, Netflix, Hey, whoever,

we have the small cult following and we could build these that you're, you know, bachelor.

Please speak to like, you know, 37 year old women and up or whatever, you know, some random,

you know, I just kind of pitch it as an older demographic.

I'd say, you know, I can get you the sort of like 14 to 25 year old dating show audience

because they want this other thing.

And like, you know, like, it's basically create a production company that's creating dating

shows aimed at my market and try to be the Reese, Reese Witherspoon of dating reality

TV, but I'd be not like doing web three crypto and, and doing it on my own website.

I'd be going and shopping it to where there's a whole bunch of buyers.

And I'm sure they've, they've had conversations.

I know that that's not like new to them, but like, I think that path can work and I would

just go all in on that path.

Because I think when you go all in on a path, it's very different than just, we've thought

about that.

Or yeah, we've had a couple of conversations, we've tried it is very different than, yes,

I've bet the whole thing on making that work and come hell or high water.

I'm going to wake up every morning and figure out, how do I go get Hulu to buy this?

How do I go get Peacock to buy this?

How do I go get Netflix to buy this?

And what product do I need to create that?

That's my end customer, actually.

So let me ask you a practical question that, that on, on how easy this is to pull off.

So you know who Mark Manson is?

Mark Manson wrote the book, the son of art of, yeah, the son of art and not giving a

fuck.

Basically I was like, just like, I've hung out with them once or twice and it seemed like

a really nice guy.

And I was just Googling like Mark Manson house and it said, Mark Manson just sold this Tribeca

condo for $15 million.

And then I was, last year I was reading like the Wall Street Journal or News Corp or whatever

the company that owns Penguin Publishing, his publisher.

I was reading all their annual report and they said, Mark Manson's book like revolutionized

our business.

So like clearly this is a $50 billion company and they're referring to Mark constantly.

So I'm like, wow, that, that's amazing.

And I started researching his book and it all stemmed from a blog post called, this is

the subtle art of not giving a fuck.

And he, that was a hit.

And then he took it on and he made it into a book.

Another guy, Naval, Naval had Angelus, so he was already successful.

So it's not exactly the same thing.

He had a few interesting bits of content out there, but then he had this tweet called how

to get rich and it was long tweet storm and it like kind of was a hit.

And if he were a little bit hungrier, like Mark was, then he could easily parlay that

into something bigger than what it was, you know, whatever.

So you've done this before as well.

You've written maybe three different tweets that like got read five or tens of millions

of times and I don't know if you would say it was career changing, but let's start at

the root level of a tweet and like with a TV show or a movie or a Broadway show being

like the highest form.

If you were given 10 shots and you had one to two weeks per shot for a tweet and then

let's say maybe a blog post and then let's say like a podcast and then let's say a YouTube

video, how many of those 10 times if you had a week or so to prepare into research, do

you think would become a hit?

Well there's two versions of a hit.

A hit can be it does well and then there's a hit like the clubhouse threat or the metaverse

threat or stuff like that where it gets to like 20 million people and like those were

like, I don't know, super hits or grand slabs.

Which one do you mean?

Like the those like absolute bangers or just like this gets thousands of likes and gets

shared.

So 10,000 times or 100,000 times a blog post that gets like 100,000.

Well, so let's just say there's friends in Seinfeld and the Simpsons and then maybe

there's like family guy and then maybe there's like the bachelorette or the bachelor and

then like below that it's like threads.

Yeah.

Below that what's another TV show that's like it's like it's actually it's like a hit,

but it's like below that there's like people busking on the street and below that there's

your thread.

No, I mean, like, look, like, you know, your version of family guys so far has been one

or two things that you've written, but then you've had like a bunch of like mild hits.

So I think if I think to answer your question, if I tried the way you said, I think seven

out of 10 would like do very well.

And then probably one out of every 10 would be one out of every 10, maybe one out of every

20.

Yeah.

So zero to one to be like a banger.

Yeah.

Yeah.

So zero to be which is like easy ish to go viral.

Now let's go a step up a YouTube video.

How many YouTube videos if you had 10 tries do you think or let's say 20 could be like

a hit?

Honestly, I don't know if I'm going to answer your question the way you want because I kind

of think for YouTube videos, it's a little easier.

I don't know why I think maybe because we hung out with Mr. Beast and I was like, oh,

okay, I get it.

Like I get it.

I get what goes into like, I get what a viral concept would be that people would click and

that they would share.

I get what the hook would be and I get like, you know, how to like have the big payoff,

the big reveal.

And also I haven't done it.

So you know, things seem easier when you haven't done it, when you haven't like gone

and tried actually, but I actually think I could have higher hit rate with YouTube videos

because you get editing, you get like, there's a whole bunch of things that go into it compared

to a Twitter thread, which is very intellectual.

Like a YouTube video, you can like lean on other things to make it interesting.

Like the visual, like just literally the fact that it's like a visual, it's a lean back

experience versus like, hey, read these 15 tweets and like, I hope I've tickled you to

like the smart part of your brain enough where you give a shit.

So I actually think a YouTube video, I think if I tried on YouTube, I think seven or eight

out of 10, I think would hit in a major way.

Amp it up.

You have more time.

You have a million plus money dollars.

You have a little bit of a team.

You have to make a hit show once a quarter or once every six months or once a year at

most or at least.

Do you think you could actually come up with a hit?

Like how hard do you think coming up with a hit would be?

It doesn't have to be a friends, but it has to be a, we're happy that we gave you money

for this and we're going to keep buying.

How many times out of 10 do you think you can do that?

I think that's lower than the YouTube video for me personally, because I'll tell you the

reason why.

Because that's what we're talking about here.

Yeah.

When you do a show, you're basically, you bet it all up front and then you find out way

later the feedback loop is extremely slow compared to YouTube.

It's like, I can go from concept to production to getting the feedback of is this good or

bad within a week, two weeks, something like that.

And so I'm going to get a bunch of reps.

I can try a bunch of different things.

And so over the, during that process, I'll find a formula that works.

Whereas with the show, it's probably like I get one, one attempt at it ever in life.

It'll take me like a year to produce another year to distribute.

By the time that's all done, whether I was right or wrong, I'm going to be like, I just

hope that I got it right the first time.

And so I actually think my hit rate on a show would be way lower.

I think like, you know, two out of 10 and three out of 10, something like that.

That's crazy.

Did I answer the way you thought or no?

Yeah, you did.

And an interesting exercise, I didn't prepare for this, but an interesting exercise is to

think how many game changing pieces of content like Mark's book just started with like a

really small thing.

And they're like, Oh, that's an interesting vein.

Let's actually pursue that.

And that's like an interesting exercise because his book created tens of millions of dollars

with the value and it basically kind of almost on the headline itself, it's kind of a winner.

And then I'm sure the blog post, which I haven't even read, I'm sure that was actually fire

and amazing.

But I wonder how many amazing bits of content have just started with a small little rinky

dink thing.

Right.

I bet a ton.

And I also, I think for me, at least the way I do things, I'm that way where it's like,

Oh, cool.

I want to write the book.

Let's just tweet out one tweet.

All right.

Now five tweets about that same topic.

All right.

Now let's tell them to subscribe to a newsletter, right?

Let's just see how much I got, what, what's resonating over like, for example, I'll go

look at any thread.

It's 10 tweets.

I'll go see which of these has the most likes that's like not like normally a thread will

just have like kind of like in descending order.

Like the first two likes, the last two have a lot of likes and then it'll just fall off

from there.

But what you'll find is when you have a good joke or a good one liner or a good analogy

or whatever that one tweet will get way more likes.

And so that's a great way to teach yourself how to speak better, how to tweet better,

how to be more compelling when you do stuff is to like go look at that.

And you can do it with other people's threads too.

That's what I do.

I go look at other people's threads and I'm sort of looking at, oh, that's interesting.

That one seemed people really like love that one liner.

Okay.

That's, that's cool.

I like how they did that.

I can pick that up for my game.

By the way, one other numbers here.

So LeBron's production company, 45 million in 2020 revenue or funding revenue, 100 million

in 2021.

And they basically do the same thing where they do a bunch of stuff.

So they have like uninterrupted, which is videos.

It's good.

They also have like merchandise, like apparel, there's like a clothing brand.

Then they have the HBO series, the shop, then they made the new space jam movie.

And so his company, Spring Hill basically created a bunch of these and they did the

same thing.

They went and sold it to others.

If I was these guys on, if I'm LeBron and I have so much income coming from other things,

I would play a really long game because I think that going and selling the shop to HBO,

like the shop is actually a pretty dope show.

It's like this barbershop and they get like, you know, whatever, big actors, NFL players,

basketball players just shooting the shit in a barbershop setting and it's like really

high quality.

It's great for like, it's kind of like MFM, but famous people who are more interesting,

better and getting haircuts.

Yeah.

Take what you see now.

Yeah.

Trim my beard.

First of all, secondly, we're more athletic, more successful, funnier, you know, cool,

you know, so basically that show is awesome.

But how many of LeBron's fans are LeBron's fans are like mostly younger people, like,

you know, that's like, if you're an NBA star, your fans go from like, you know, eight years

old on up, they don't have HBO.

And so it's like, if I'm him, why am I not playing the long game Jeff Bezos style and

just saying, I'm going to drop this dope premium content on YouTube, TikTok, Instagram, whatever.

And I'm going to put the whole thing here.

I'm going to blow normal content out of the water here because I'm bringing production

budgets to this.

And actually I'm going to invest like what Michael Jordan did with his like, the last

dance, like documentary, it's like, I'm going to invest a lot of money, but I'm not going

to like put it, like Netflix is okay, because it's a paywall.

A lot of people have, but I would just put it on YouTube.

And I would basically bet that if I grow my brand and my legacy through this content,

there's a bigger payoff than what the streaming companies are going to pay me today.

And I would be willing to invest 20, 30, $50 million in order to build like a billion dollar

plus type of brand payoff at the end, because you will just be like worshiped and adored

even more than you already are.

And so, you know, you want to go on one end of the spectrum or the other.

You want to go like, I'm getting paid a stupid amount of money and it doesn't really matter

how many people watch this, or I want everybody to watch this and I'll pay money to get it

there because there's a bigger payoff for me outside of that, you know, like the Logan

Paul method where it's like, everything's free, everything's on YouTube, I'm in your

face, and then I'll launch my like energy drink.

And I think their energy drink does like some stupid number like it's doing really well,

like a hundred million dollars a year or something like that.

I don't know the exact number.

I heard about on the pod, they're talking about how they did 10, like I think it was

around 10 million in month one of sales.

But I actually think that the drink business, if like Mr. Beast has a $40 chocolate business,

I'm curious if some of these low ticket items can actually become like legitimately great

companies as opposed to just, okay, I think it's hard to sell a $2 drink and make it like

work really well.

So we'll see if they'll make it work, but to all these water companies do amazing.

But many don't, obviously, I mean,

I know, but if you got the distribution, right, like, why is Mr. Beast not doing beast water?

Because he can basically pair it with like, you know, like that boxed water thing where

it's like, this is better for the earth.

Yeah, it's cute.

He likes that shit where he's just like, oh, we're going to plant a billion trees.

And the way we're going to plant a billion trees is by not doing plastic water bottles.

All right, everybody, join me.

This is Mr. Beast, you know, aluminum cans, sparkling water, like, go fuck LaCroix up.

All right, like, go, go fuck these guys up, like Mr. Beast could destroy these guys, right?

Like, go into the things, go make products that everybody on earth consumes because you're

the mainstream content maker, right?

So it's like, dude, when he, when he had the chocolate, I was like,

damn, dude, I want to like, eat this chocolate because I want to like, you know, show you

like appreciation for like, being here and you brought your item and like, yeah, sure,

I'll eat some of it.

But I felt so bad eating it because I don't like eating that type of stuff.

I mean, I love it.

Because I don't eat a chocolate bar.

Yeah.

On daily basis.

Well, yeah.

And I love it.

And I'm somehow eating it.

I was like, I don't want to eat this, but I want to be respectful and kind and because

he brought this thing.

And I was like, dude, you need to make something different that I that I like can consume guilt

free.

And I don't know that many people that just eat chocolate like a, like a Hershey's chocolate

bar.

You know what I mean?

Correct.

In fact, that's a filter I have.

If I ever just see you just eating a chocolate bar on a Tuesday, I'm going to begin to distance

myself.

Right.

I'm trying to be around a certain type of person that's like, you know, healthier.

Come to think of it, I don't know anybody that does that.

Actually, you know, funny story when I joined Monkey Inferno, so I joined as a PM, product

manager.

And who was there before me was this guy, Alex, too, who created Million Dollar Homepage

back in the day.

And now is the founder of Calm, like a multi-billion dollar company.

And they were like, I was like, oh, how's Alex?

Like, you know, I love that guy's work.

Like, you know, Million Dollar Homepage is dope, calm, interesting, like meditation.

Is he just like Super Zen or what?

Like, is he huge on meditation?

They're like, you know, that's the funny thing.

They're like, I think he needs Calm.

I wouldn't say he is calm.

I was like, what do you mean?

Like, you know, Alex is a fun time, dude.

He's like, he loves to hang.

He likes to go out.

He likes to have drinks.

Like, you know, he's just like a young dude, like in his 20s in a big city.

Like, you know, he's not like waking up every morning, going to his Japanese, like, you

know, garden and just like sitting there for eight hours, just, you know, contemplating

the thoughts in his mind.

And so I was like, what's the crate?

What's the most degenerate thing?

I was like, give me a story.

What's the most degenerate thing?

The founder of Calm is down there.

They go, I remember one time he came in and he was kind of hungover and he just got a

bowl, like, you know, for cereal, like his office had like a kitchen.

He's like, but instead of cereal, he just went and put a bunch of M&Ms in there with

a spoon and just ate it.

I was like, I don't know if the story is true or false, but it's hilarious and I'm running

with it.

That's awesome.

I remember that because of the time, if Calm ever becomes a thing, I'm always going to

remember that story.

There's like one of these like hilarious small, small stories.

When we had our office, I remember I was having a bad day and when I had bad days, I like

to punish myself by eating poorly.

You know, it's like, that's like my version of just like drinking a trot pack.

When I, it was me and my writer, Connor, we're still in the office at like 8 p.m. and I was

like, Connor, today sucked.

I was like, I looked at him, I go, bet you I can eat this whole jar of unopened, skippy

and three bites.

And I did.

And I did.

And I felt so horrible for like three days.

And so that was my, that was my DJing diet moment was just eating an entire jar of skippy

peanut butter in 30 seconds.

That's crazy.

All right.

Let me give you the thing I'm currently obsessed with.

So the thing I'm currently obsessed with, I brought this up maybe three, four times.

People may be sick of this by time, by now, but I feel like no one is talking about it.

I feel like not enough people are freaking out about what's going on with artificial

intelligence for creating art.

So we've talked about this before.

There's GPT three, which is basically AI that will write something for you.

So you could just give it a prompt and it'll write the essay.

There's Dahli where you just type in a thing.

It'll generate images as if you searched it on Google.

And I now have like a bigger picture view of this, which is, you know, like in the early

days of the web, the big winner was search engines.

So you, you know, Google obviously was like a search engine because it's like, oh, the

internet basically, the technology has now put a bunch of information out there.

So we need a search engine to basically find the thing we want.

Now what's happening is you have a generation engine, right?

A generative engine is you go search for the thing and it creates it for you, right?

So it's like, it's, that's just like right there is like a mind blowing concept.

Instead of searching the internet for a thing that might be out there, what's the closest

thing to what I want?

It's just to say, I have basically the genie from Aladdin and I can go say, play me a song

that mixes like kind of like Beethoven and Kanye, but it's about, you know, taking mushrooms.

And literally AI will just create a song and guess what?

It doesn't suck.

And to me, this is so insane.

This is so mind blowing.

Every demo I see, I drop immediately what I'm doing.

I'm like, what I'm doing is stupid.

Like, oh, like cool, a podcast, you know, like, oh, what am I doing?

Like talking to my mother, who cares about my mother?

There's AI that can create shit that you just like spit out of your mouth.

And so I think I really just want to go down this rabbit hole and figure out what all is

this going to be going to be able to do.

So now there's this new thing called stable diffusion.

Have you seen this one?

Stable diffusion is the new demo that came out.

Like Dolly, they basically they didn't like kind of paywall it.

And so anybody can go and use it and you just type in a prompt.

So you're like, go to the subreddit stable.

So go to stable diffusion subreddit just to see like what people create.

So it's r slash stable diffusion.

So just look at the top thing, right?

So, okay, go to the one that says Wendy's.

Do you see it?

Like scroll down, maybe top one today or it's hot, just like normal sorting.

So hot.

And then go down five and just look at Wendy's.

Oh my God.

And so this is awesome.

So how does this work?

So basically you just type in like the prompt, right?

So the prompt that he gave was a beautiful portrait of Wendy's mascot, intricate, elegant

and highly detailed.

Digital painting, art, art station, matte, sharp folk, illustration, just a bunch of

key words.

And then it just creates this like beautiful redheaded girl holding a burger with fries.

And it's like, it looks like this incredible art.

And so you could just, and then you, you could just, you just hit the dream button that was

the button, like, you know, the Google button is like search or I'm feeling lucky.

The one on this says dream, you hit dream and it just, it'll just morph it.

It'll morph it.

It'll morph it.

It'll morph it.

It'll just keep making new ones.

Instantaneously.

It's like working with a designer.

It's like, try again.

Give me something else.

No, not that.

Okay.

Make it blue.

And then it'll just instantaneously recreate something incredible right then, right?

And it's just mind blowing what it's creating.

And then you can see these videos.

Go down, just do like a control F and write the words preview of next feature.

And it's a picture of a duck.

Do you see that post?

Preview of next.

Yeah.

Yeah.

It's a picture of a duck and it's like, it looks like a guy in Photoshop or paint making

a duck.

Right.

So he's, he's, he's in, I think, I think it's Photoshopped as the actual tool, but it looks

like a Microsoft paint duck.

So it's just like a yellow blob with an orange little duck bill.

Right.

All right.

So it's a two minute video.

What he's showing is he created a Photoshop plugin using stable diffusion that lets you

draw anything crappy and then you just run the plugin and watch get to the end.

So like go all the way to the end.

And so he just adds a little blue.

And so by the end you see this basically like, this like fancy looking duck wearing a monocle

and like a blue like tuxedo shirt.

And it's like the sophisticated ass duck and it's like, dude, if I'm a web designer, I'm

freaking out right now.

We thought AI would like, you know, it's going to automate the shitty jobs.

It's like, actually it's coming for your throat artists.

Like, I mean, so I've been, I've been, I've been looking for his name.

I found him.

His name is Lou.

Yeah.

So L O U Y A H and I follow him on Tik Tok.

And what he does is every once in a while, he'll have a post where he, he's a producer

and he'll be like, here's a rap country song that doesn't exist.

And he makes a song and they sound great.

And he's, he's done this a bunch of times.

And Martin Screlli in one of his blog posts, he said, when I was in prison, I had a lot

of time to think, here's a bunch of predictions that I have for the next hundred years as

well as timelines.

So one of his predictions, he'll be like, we're going to land on Mars by 2050 or whatever.

And another prediction is a artificially made song is going to be in the top 10 most played

songs in the world.

And I'm billboard top 10 inside the next 18 months, like he put a time limit on it.

And I, and I'm on board with that 100% believe in that.

I 100% believe in that and I don't get why more people aren't freaking out.

There are obviously pockets of people who really are really interested in this.

People see the demo, but like it's kind of like we just passed up a purple unicorn while

we were driving on a road trip.

It's like, oh, wow, purple unicorn.

And we just like, okay, you guys want to stop at Wendy's and it's like, dude, wait, hold

on.

There was a purple unicorn next to the road, like pull over.

What are we doing?

Like, I think everybody needs to pull over and be like, what the hell is happening?

This is going to like, this is so insane to me.

And I just feel like these idea, like there's going to be a Google like company that's not

a search engine.

It's a generation engine.

It's a dream engine.

You're going to go there.

You're going to say what you wish.

I think somebody's going to make this for kids.

I was like, dude, I could make, I told you before, I was like, I'm interested in creating

like a Pixar like company, but it's like, why would I create one movie?

What if I created an app that my daughter could just talk to no, no texting, but she

can't type.

She just could say a duck surfing, you know, with an iPad and like, you know, holding an

iPad and like, she could just say any words and this thing would create not only an image,

but it could create an animation.

It could create a set of animations.

It could create a whole story based off that she could create her own movie just by saying,

you know, a boy who loves soccer, but he's sad because he doesn't get enough chocolate

and it would create, you know, a movie based on that, it would create a portrait based

on that.

And like, she could create art just with her imagination.

That is wild.

Have you ever heard this theory that your words shape your thoughts and it's not just

like positive thinking.

It's like, literally, if that, if a word that doesn't describe a particular type of feeling

exists in your language, then it's hard for you to have that feeling.

So this particular example isn't exactly proven to be true and a lot of people debate it,

but there was a group of Africans who didn't have like the perfect word for square or like

a 90 degree angle and all of their homes were in circles.

They were like circle and so they didn't, they, for some reason, like the idea of like

square and 90 degrees, it just wasn't part of their, their language.

And so everything, a lot of items in their, in their culture were circles or there's

like terms for like, you know, I'm feeling depressed, but I'm not suicidal or something

and like a different country and like that's like a better word sometimes than like depressed.

And so people are like, well, you know, I'm just in this mood and they can explain it

a little bit better and they feel that way.

And it's almost like explaining to a blind person, like, hey, tell me what red looks

like.

It's like, I don't know.

I can't, I can't explain what that is when I'm, it's too hard.

I don't have that in my vocabulary.

With something like this, I wonder if there's, if it will unlock like a new way of storytelling

or a new way of seeing art and it will actually could actually change our, our mindset and

a lot of different things.

Because like if you, if you, if you want to make a movie now, I mean, you're going to

be influenced by everything that exists and then occasionally someone's going to come and

do something totally mind-changing and that one person is like kind of once in a generation

type of person.

And they just like are really unique, like a Steve Jobs, but when you have something

that is collectively aggregating all of the data in the world that has ever existed and

then coming up with something interesting, do you know what I mean?

Like, I wonder what, like that's how I've been thinking about it.

Like, man, well, the new stuff that this thing can come out with, I can't, I literally can't

think of.

Do you know what I mean?

Because what they do is they train it on like, just, you know, they basically go scrape

gigabytes and gigabytes and gigabytes of images from the web.

And they basically, there's a big controversy around this.

Some people are like, that's unethical.

Those people who put their images up on the web, it was going to be, it was going to be

used to train AI that was going to then put them out of work.

Like that's not so great.

And by the way, there's like a name for this.

Some people are trying to do vegan AI.

You know what that is?

Vegan AI is basically AI that's trained only on non-copy written work.

So it's like, it's like worked out images that were like intentionally said to be royalty

free out there for public use, out there for use it however you want.

It's like, if it was only trained on that, it's sort of like grass-fed, right?

What's like a perfect example of this and like, is the ultimate villain move is GitHub,

which is a website developers post code on.

It's almost like, it's part practicality.

They post code so you could share it, but they also like, it's like a portfolio almost.

And what GitHub is doing, which is owned by Microsoft at this point, I think they are

basically like using AI to scan all the best code of all the code that has ever been uploaded.

And you can kind of like, am I explaining this right?

You can, they've using AI to write new code based off of all the users who have input

data and the users are like, oh, cool.

So you're taking our portfolio and you're going to use it to put us out of work.

That's nice.

Right.

Yeah.

I think Nat Freeman, who is the, I think he was this, I feel like he was the CEO of GitHub

for a period of time.

I don't know if he still is, but he just tweeted out, he goes, the $10 billion AI first product

idea hiding in plain sight is GitHub co-pilot, which is the name of the thing you said, right?

Like the AI assistant that helps you write your code for customer support.

You can fine tune it.

Basically, you have this archive of all of your thousands and thousands of company like

tickets that were like resolved, like resolved customer support issues and your support rep,

who's just like, you know, random person sitting in, you know, I don't know, maybe the Philippines

or something like that gets dramatically more productive and your customers get better

and like training becomes easier because you have any company with 20% support, 20 or more

support reps, he says, you know, would buy this.

And that guy basically like, I think co-pilot is like a billion dollar a year add on to

a billion or more than a billion dollar a year add on now for GitHub, because so many software

developers opt into it because it makes them more productive.

So it's like, how many other areas is that going to happen to?

Dude, when we did, when we discuss this, I'm like, this is, this is the type of like macro

movement that it's like, dude, just quit what you're doing and just join, get in somehow.

You know, almost, I don't really like crypto, but almost like crypto in like 09 or 11 or

something like that.

Oh, it's like, I don't know, man.

It's kind of hard to miss if you're just kind of in the, in the, in the, in the ballpark.

100%.

100%.

That's how I feel about this.

Like that's, wait, we drove by a purple unicorn.

Pull over the car, pull over the car in your career and basically go dive in and figure

out what this is.

And if people are already driven in, tell me because I'm trying to dive in.

I want to learn as much as I can about this over the next six months because I find it

fascinating.

I'm going to, I can't show this graph, but I'm just going to tell you a graph real quick.

All right.

There is a company called.

Have you heard of this?

Yeah.

I don't exactly know what they do, but they're basically like an, I think they're just like

an AI copywriting solution.

Go to their website.

That's what I thought.

They're based, are they based out of Austin?

I think I met the founder actually.

So sounds cute.

Right.

Oh, you know, AI helps you copyright.

Copywriting is this little niche thing that you and I are wearing.

We help people with copywriting too.

We both have like a copyrighting course, a product like that.

Here's their annual recurring revenue of 2021, January 2.5 million.

Okay.

That's their annual recurring.

This is their ARR rate that they were at.

So January, January, 2021, two and a half million.

That's pretty good.

Like congrats.

Fast forward to April 5.7 million.

Oh, wow.

You guys doubled in four months.

Like really great progress.

I'm super impressed.

Like you guys, you guys are probably onto something.

This could be like a hundred million dollar company or something like that.

Fast forward to July, $20 million run rate.

Oh, wow.

What's going on?

It's one year you've gone from 2.5 to 20 million.

Fast forward to October, $40 million.

It's like, what is happening in one year?

This went from two and a half million to $40 million run rate.

That is absolute insanity to me.

I've never seen an ARR chart like that.

Now I don't know.

How did you get that?

Someone shared it with me.

So, you know, I don't know how legit this is, but I don't think it's fake.

You know, it's crazy to be so, but it's just like a kind of a mind blowing level of traction.

God damn.

Yeah, I'm on board with this stuff.

This is pretty cool.

All right.

Anything else that we wanted to cover?

No, that's the pod.

I feel like I can rule the world, I know I could be what I want to, I put my all in it like no days off, on the road, let's travel, never looking back.

Machine-generated transcript that may contain inaccuracies.

Episode 358: Shaan Puri (@ShaanVP) and Sam Parr (@TheSamParr) talk about how production companies are so profitable, incredible AI art and generation engines.
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Links:
* Mad Realities
* Hello Sunshine (Reese Witherspoon Production Company)
* Hartbeat Studios LA (Kevin Hart's Production Company)
* Springhill Company (LeBron James' Production Company)
* Mark Manson
* Stable Diffusion
* Github
* Do you love MFM and want to see Sam and Shaan's smiling faces? Subscribe to our Youtube channel.
* Want more insights like MFM? Check out Shaan's newsletter.
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Show Notes:
(02:15) - Why Sam is in a horrible mood
(12:30) - Mad Realities - the successor to NYU Girls Roast Tech Guys
(17:45) - Why production companies make so much money
(41:10) - AI for Art & Generation Engines
(52:15) - AI Copywriting
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Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more.
-----
Additional episodes you might enjoy:
• #224 Rob Dyrdek - How Tracking Every Second of His Life Took Rob Drydek from 0 to $405M in Exits
• #209 Gary Vaynerchuk - Why NFTS Are the Future
• #178 Balaji Srinivasan - Balaji on How to Fix the Media, Cloud Cities & Crypto
* #169 - How One Man Started 5, Billion Dollar Companies, Dan Gilbert's Empire, & Talking With Warren Buffett
• ​​​​#218 - Why You Should Take a Think Week Like Bill Gates
• Dave Portnoy vs The World, Extreme Body Monitoring, The Future of Apparel Retail, "How Much is Anthony Pompliano Worth?", and More
• How Mr Beast Got 100M Views in Less Than 4 Days, The $25M Chrome Extension, and More