Episode Transcript
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(00:00):
It's one of those ideas that youlaunched by making a couple
dozen phone calls and finding a couple of yeses.
You might as well learn the skills and have an agency one to
two grand a month per customer. He does micro newsletters,
85,000 people, he's got 40,000 of them.
Subscribe. He generated 230,000 and I think
he's like on par for double thatthis year.
That's Annapolis, MD. Everyone loses their sunglasses,
(00:20):
so with our sunglasses lifetime warranty, no questions asked.
Statistically speaking, they would have to file 10 claims to
break even on them. This guy makes $70 million a
year from selling merch. Anyone listening to this could
make money by piggybacking on aninfluencer.
Welcome to the Kerner office. This was one of my favorite hold
(00:42):
cobros ever. And I'm not just saying that so
you'll listen. I'm saying that because we
talked about like 8 different business ideas that are all in
different niches and I think you're going to love a lot of
them. We talked about building a local
newsletter and how that opportunity is open to anyone in
the world. We talked about building a
business around lifetime warranty as your unique value
proposition, your UVP. We talked about starting a local
(01:04):
Google My Business agency charging 1500 bucks a month.
We talked about a lot and I think you're going to love it.
So enjoy and we'll see you next time.
I got an idea for you. Let's do it do.
You remember when we were talking about partnering with
influencers to launch businesses, CCR and I said if
someone is an influencer and allthey do is sell T-shirts, they
don't know business? Yes.
OK, yeah, I've used that line many times with people now.
(01:26):
Oh thank you. There was 1 exception I don't
really want to get into but I forgot to mention it.
Because it proves you wrong. I get it.
Virginity rocks. You familiar with them?
No, look. At the guy, the guy sells a
virginity Rocks shirt. Oh is it the video where he's
like virginity Danny? Duncan.
Danny Duncan, I don't know. He's a viral social media
(01:48):
character. I don't know, but this guy makes
like $70 million a year from selling Virginity Rocks merch
and that's his whole brand. From all the Christians who were
like, oh, brothers, brother, sister, Smith, have you seen the
Virginity Rock sweatshirt? I think that's such a good
message to send to the children.Yes, yes, $70 million.
(02:10):
So come again? That's what she said.
That's a lot. Yeah.
Like 70 million. A lot of more than 50.
Yeah. On T-shirts and and hoodies and
hats. So like, there, there are
exceptions to that, but that's like his whole brand, right?
And when you get it right, it becomes its own viral effect.
You see a shirt, you buy a shirt.
(02:31):
So I don't want to get into thattoo much, but I thought of
another idea of how anyone listening to this could make
money by piggybacking on an influencer.
OK. OK.
There's a guy on Twitter that I follow and his name is Sawyer
Merritt, and he's probably goingto get hit up after this
podcast. But Sawyer is a Tesla fanboy.
(02:51):
That's his whole shtick. Elon responds to his tweets
frequently. He tweets about all the Elon
companies and products, and that's his whole shtick.
And it's actually kind of like acrypto Twitter account.
It's quite easy to grow a Tesla Twitter account because the
algorithm favors it. And it's such a polarizing
topic. It's so polarizing.
You love it or you hate it, right?
(03:12):
And so by nature of that, it's fairly easy to grow a Tesla
account. Anyway, I think someone needs to
partner with this guy and launcha newsletter of just like weekly
Tesla news and updates, right? These are high ticket buyers.
It's a highly educated audience,and he's not monetizing with a
newsletter. So you start with a free
newsletter and then month or twolater you launch a paid
(03:33):
newsletter where you launch. You basically do the kind of
like a Seeking Alpha or a MotleyFool, like an in depth deep dive
on one of Elon stocks, right? And it's like you need to buy
it, you need to short it. You know, we flew this drone
over the factory and we can see there's a production run being
withheld. Like all this insider info.
You just need to find one rider,give him a cut of your revenue.
(03:56):
And it's like once a month, maybe it's 50 bucks a month,
$500 a month, depending on whereyou want to go with it.
But people can trade based on your newsletter, and these are
people that are already buying his stocks anyway.
What do we think? I think it's, I think it's a
genius way to take advantage of the influencers and their
distribution channel. I think that's amazing.
Because he's not about to do this, right?
(04:18):
No, he's busy. I think a lot of times people
have the fear of reaching out toguys like this and then just
giving them the the idea, like, oh, they're just going to go do
it themselves. No, they're not.
He's probably already has a halfa dozen other plans in the works
right now. So in general, I love the idea
of finding guys like him that don't just have audiences, but
that have smaller, more high value audiences and partnering
(04:41):
with them to launch a newsletter.
It could be a financial newsletter, maybe not.
Yeah, or looking at these influencers and saying, OK,
what's their product audience fit and like if you have an idea
of all right, this would be perfect for this person's
audience than going to them and partnering to sell that.
This also reminds me of do you know who Ryan Sneeden is?
(05:05):
I had him on, I had him on my podcast in economics.
ANYWAYS, he does micro newsletters.
One of the things that I was like as I was talking to him, I
thought would be interesting is going out and identifying
regionally influenced regional influencers, I guess is probably
the best way to say it. So there's probably people in
Dallas who are really big about the Dallas scene.
(05:25):
There's probably people in Seattle or I know there's people
in Boise here, there's people inwhatever these big cities where
they have like big pole in thosespecific cities and going to
them and implementing A newsletter for them.
Effectively, what Ryan does and he does in Annapolis, I think
there's like I want to say there's like 85,000 people that
(05:46):
live in Annapolis and 45,000 of them are on his newsletter.
Yeah, yeah. It's amazing.
But what he's done is he's effectively turned it into a
newsletter. That's the local newspaper.
And so people place a bunch of ads and and he makes great money
placing ads in his newsletter. And so he could go to these
regional influencers who are already kind of in the know.
(06:08):
They know a lot of people in those markets offer to launch a
newsletter for them that aggregates a lot of the
information that their followersare already interested in.
So like Amy Nix? Is it Amy Nix or Amy Knox and
Dow? Nixon, Yeah.
Yeah, Amy Nixon was like, you know, she's real estate and
she's Dallas where it's like, OK, cool.
Amy, you're going to be the the real estate, the Dallas real
(06:29):
estate person. And every week we're going to
talk about the changing market conditions.
We're going to talk about the inventory that's sold, we're
going to talk about how many days to sale, we're going to
talk about average list price ineach one of these markets,
etcetera, etcetera. And you put together that
newsletter for her, she sends itout, she owns the distribution
and then you own the cut, whatever you negotiate with her
of that newsletter. So very similar to the way
you're talking about doing a newsletter for Tesla.
(06:52):
This would be like geographically specific to
different regions of influencers, so I like that
approach. That's an amazing idea.
Amazing idea. There's a guy, there's a, a
YouTube, there's a Dallas realtor that is a YouTube and
his whole shtick is real estate in DFW and he has 2030 thousand
subscribers and that's all he does, right?
(07:13):
He's not, yeah. He's not going to start a, he's
not going to start a newsletter,right?
Why would he? Dude, our friend Sam, I don't
want to say his last name because I don't know if he wants
to be talking about this, but hestarted a local newsletter in
California and he's acquiring subscribers with paid ads $0.60
each. He's not monetizing, but get
this, his long term 10 year, 20 year play is to be become the
(07:36):
mayor of that town. Really.
And he wants to vertically integrate his newsletter into
being the mayor one day. Dude, that's what was crazy
about talking to Ryan is he was like, I'm in the know.
Yeah, Commerce knows me. He's like, I go around town and
people recognize me. Any restaurant that I want to
get in and have a car like to get a seat at, I get a table at.
(07:57):
And it's Annapolis, MD, so it's like a nice town.
It's high income. But now he's also like, I'm
buying a porta potty, not a porta potty business.
Yeah, it's a porta potty business.
It's a wedding bathroom. Yeah, like the luxury bathroom
rental. And I'm like.
Dude, now with your connections,you could go to the city, you
could go to the local university, you could go to the
(08:17):
Naval Academy and be like, you guys know who I am?
Oh, yeah, of course. Can I put a bid in for this?
Yeah, of course. Like, just by virtue of the fact
that you're the guy in town, he's going to have so many
business opportunities that comehis way.
But it's because he created thiseffective audience locally, this
micro audience. I mean, you could get AI to
write these too. You could just say, hey, take
(08:38):
all the local news from AN from Annapolis.
I I think if you're partnering with influencers, it makes more
sense to do this. But if you're doing it yourself,
it makes more sense for you to write it.
I agree with that. Ryan was saying that it's hard
to do it with AI because the information he provides is so
market specific and he felt likehis brand was built around that.
(09:00):
Like quirky, personal, personal letter.
But to that end, like that's where I'm like, OK, you find the
local influencer and you find a local writer, Cool.
And then you manage the process.I guess this isn't a hard game
that we're playing. Like, OK, here are his numbers.
I just went and found it. He's got 85,000 people that live
in Annapolis. 46% of his town are subscribed.
(09:23):
Jeez. All right, so 85,000, let's just
say 40,000 are subscribed. What do you think he did in
revenue last year? No idea 72,000. $240,000.
That's crazy. Yeah.
Does he have a paid version or just ads?
It's just ads, there's no paid version.
What? Did he like $80,000?
(09:44):
That's crazy like how crazy I I just like that blew my mind that
part of the conversation where I'm like, are you freaking
kidding me? It's like 85,000 people he's got
40,000 of them subscribing. He he generated 230,000 and I
think he's like on par for double that this year.
That's Annapolis, MD. That's not freaking Dallas, TX
(10:06):
I. Know how long is it going to
take for all of the 80,000 person cities to be saturated by
a newsletter? Decades.
I mean, it doesn't have to be your city, be any city.
No. And like he's now trying to do
this model where he like, I don't remember, it's not exactly
a franchise, but he's like licensing it out to different
markets. Again, he was a lot more
(10:28):
concerned about the quality. I felt like you could
centralized a lot of this stuff.You could have local editors,
but a streamlined process of AI that generates the stories and
then the local editors spend time curating it.
Yeah. Just because AI is involved
doesn't mean that the quality has to go down, it just means
the editors spending more time on the right things as opposed
(10:49):
to the first draft. So.
Yeah, you upload the the 10 mostrelevant news articles to AI.
You say summarize this in bulletpoints.
Then that's just your starting point.
Then you put your spin on it andmake it quirky.
Or what? Like what I was thinking is with
these agents now you just have them crawl Twitter, Google, I
don't know if Instagram or YouTube, but I know Twitter and
(11:10):
Google. And it's like, all right, here
are the keywords you're looking for.
Annapolis, these streets, popular figures.
And then every day you aggregateall of the news stories that
came in and the editors just looking and seeing like, OK,
what was interesting, what was not interesting.
So there's that aspect. But then he also has the
programmatic aspect to it where in his newsletter he's like,
hear the concerts that are happening this summer.
(11:32):
Here are the events, the sporting events that are going
on this month. Here's what the weather looks
like. He's like, I know it sounds
weird, but everybody wants the freaking weather in this
newsletter, even though they have it on their phones.
Like people want the weather. There's a lot of things that
could just be programmatic, justeasily, very easily built out.
But then there is like the editorial piece that I think
would take some time. So anyways, I freaking love that
(11:53):
idea. Here's another idea, So it is
illegal to scrape a bunch of emails and add them to a mailing
list, right? It's against the can spam act of
2004. You could go find a high value
audience like real estate agentsand you could use cold emailing
software like LEM list mix, Max G Mass, whatever.
Scrape their emails and send cold emails to them.
(12:16):
You're not opting them into a newsletter or a list.
You're sending cold emails to them.
This is hey, first name. I know you're a realtor here in
city name. I, I have this newsletter we
just talked about the real estate market here in city name.
Would you mind if I send it every week and you're just
sending manual cold emails with like 3 automated follow-ups
asking them if you can subscribethem?
And it sounds tedious but it's all automated.
(12:38):
And then any time they say yes, you can add that to Zapier and
you opt them in to your beehive to your newsletter.
Are you subscribing at like a newsletter growth hack?
Is that what you're? Is that what you're describing
right now? Yeah, yeah.
Why? Would you not do that?
You could I. Think it's genius?
There's 2 million Realtors in the United States.
(12:59):
You get 1% of an opt in if you just had 1% of this market.
Well, bro bro bro bro. It's a $250 billion market,
dude. If I just get 1% of 1%.
That's all you need. That's $25 million, dude.
It's crazy. Did you not hear me?
(13:20):
I don't need a pitch deck. My pitch deck is 1% of 250
billion. Or is that not enough for you?
Oh, do you not know how to do math?
Pull out your iPhone and type these numbers in?
Dude, that it. That would be really.
Yeah. That would be interesting to
like. I want to start a massive
newsletter. Everyone's like, everyone's
(13:41):
always like there's riches and niches.
Start with a niche and then growout.
Now what if you're just like, now I want to do a newsletter to
all the real Realtors in the nation and you build it around a
growth strategy as opposed to like going niche.
I think that'd be a really cool idea.
Big is the new small. Think about that.
Really. Yep.
(14:03):
I usually tell my wife the opposite.
OK, what do you got for me? All right.
You did an episode a little while ago and then you ended up
actually putting a tweet out about it.
But it's something I've thought a lot about and I think is
really interesting. I think that there's a trend
right now with people our age and older, especially people our
(14:25):
age and younger, to spend money on health and beauty in
particular. I'm not talking about
necessarily the gym, I'm talkingabout spas for men, you know,
TRT, testosterone replacement therapy, other hormonal therapy
treatments, Botox, laser treatments, just like lots of
(14:48):
health related innovations I guess that are coming down the
market that are a supposed to keep you young and B help you
look young. So one of the things you post
about was Botox and I wanted to run through because I thought it
was interesting how you were talking about SEO, how you go
out and get customers. I thought it be fun to run
through and like actually describe the economics of Botox.
(15:08):
Let's do it all right? So I'm going to use me as an
example, but let's say that I wanted to go and get Botox.
Do you even know how you would ask for Botox?
Are you like I'd like 2 Botox please?
Like do you understand how it works?
No, I don't know. I don't do needles.
When you have a natural beauty, it doesn't even register for
you, you know what I'm saying? Totally.
(15:28):
I totally get it, dude. That's why it registers so well
to me. So you buy Botox in units is
what they're called. And so like for somebody like me
who has a massive forehead, it'sa sign of a big brain as.
My father, if it's a, if it's 1000 units, do they call that AG
unit? Or they actually do.
(15:51):
They actually. Do.
Oh, interesting. Yeah, yeah.
So, so I've got a big head. I use a lot of units, as my dad
would say to my mom. What?
You have the Jewish brain. Jews are smart.
They have bigger brains because my mom's Jewish and my dad's
racist. And anyways, so like for me, a
(16:13):
first time forehead, I'm probably going to do 40 units,
right? But then they got, you know,
these little things here, these things here or they got, you
know, some lip filler and other places.
Like there's probably like 12 units here.
Some of this is from research. Some of this is because I was
asking my neighbor who's an MP and, and owns a Wellness
(16:34):
practice, like how many units, right?
So, so that's just like to give a general idea.
And then once you get Botox, youdon't just get it once.
There would be no recurring revenue, right?
So of course. Well, partial, yes, but what
Botox does is it, it deadens, not deadens the nerves, but
(16:55):
immobilizes the nerves in your face and it, but it wears off
after a period of time. And so you have to get
maintenance doses. You have to get, you know, every
3-4 months is kind of what it's recommended to be.
And so when you go back to get those doses, it's not
necessarily I'm not getting 40 on my forehead every time.
I'm getting maybe 20 right? When you get 2 doses do you ask
(17:17):
for a dose dose? I hadn't thought of that.
I I do know that when you get doses under 10 it's called a
micro dose. But.
Yeah, yeah, but I'll have to askabout the dose.
Dose from we're so dumb, so hateourselves.
All right. Next question, 40 units, let's
just say is on average what somebody what a recurring
(17:39):
customer gets 40, how much is ita unit retail cost for?
10 bucks. Yeah, somewhere in that
ballpark. It's like 10 to $15 per unit.
Do you know what the wholesale cost is like?
What the practice is buying those for?
5 bucks. Yeah, 3 1/2 to $7.00.
So let's just like easy math, we'll just say they have 50%
(18:01):
gross margins. If I'm a customer and I'm coming
3 * a year, that average is out to be, let's just say $1000 a
year in recurring revenue from aperson.
Does that make sense? Let's also say that they have a
really high churn. Let's say like 20% of the people
who get it the first time are like, I don't like this.
(18:24):
But then the other 80% keep, youknow, a maintenance for a long
period of time. So the lifetime value of a
customer, and let's just say it's five years but lasts five
years, is 3600. Excuse me, The customer lifetime
value is $3600. But if you back out the gross
margin, then it's about 1800. No, sorry, $4000.
(18:45):
I'm not doing my math right here.
Hold on. Five years, $1000 a year, $5000.
OK, back out the gross margin, $2500.
It's kind of your LTV. SO1 Customer represents an LTV
of $2500. Guys, I have started dozens of
businesses at this point and every once in a while I'll see
(19:07):
some random fee in my bank account that makes zero sense to
me. And when you're dealing with
international stuff you see it all the time.
It's not uncommon for currency conversions to eat 3 to 5% of
every transaction. It's insane.
But Airwallex fixes this with things like multi currency
accounts across 60 plus currencies.
(19:27):
No double foreign transaction conversions killing your margin.
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suppliers in euros, none of thatconverting back and forth.
Over 150,000 businesses use themacross 160 countries.
They've got corporate cards and expense management built right
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check out airwallex.com, your global business Without Borders.
(19:53):
In my mind I'm like, I wouldn't even need to open a practice.
I have a neighbor who's like right behind me and he's an MP.
Why wouldn't I just target localFacebook groups, local HOA
groups, local, you know, PTA groups, and go hard and find a
neighborhood where there's also a nurse practitioner that can go
(20:13):
and administer in people's homes, like concierge, and just
crush it that way. But I don't have the other side
of the equation. I know that my customer lifetime
value or that my lifetime value is about $2500.
How much do you think it would cost to acquire a customer?
This is the part where I don't know that's and like, I know
you've you like explored this onyour podcast.
(20:35):
You're looking at like $4.00 a click through paid Google ads,
but the the the question mark iswhat's your conversion rate once
they click, $4.00 per click is pretty high.
But at a $2500 LTV, let's say there's 5% conversion, then you
would multiply it 4 by 20, so it's $100.
Is 5% conversion a good perversion or good conversion or
(20:56):
bad? That'd be pretty good.
It's not like amazing, but it's pretty good.
Let's go with a bad conversion 2%.
So, so $200 customer acquisitioncost through if you're only
using Google Ads. Also highly dependent on the
local market, but yeah, less than 10%.
Like why would you not do that all day?
And so you would just partner with someone that's licensed to
(21:17):
do this and you're the lead Gen.source and they're the.
Absolutely. So there'd be two things you'd
have to figure out. The first thing you'd have to
figure out is how do I identify practitioners in that
neighborhood? Because I would prefer to have
some somebody who's looking at this as a side hustle, right?
Like I'm not trying to start a practice that's just concierge.
(21:39):
Like I look at my neighbor comeshome with five and you know, if
from like 5 to 7, three nights aweek, he's getting people in and
he's making an extra $10,000 more than that $30,000 a year.
I'm sure he'd be open to that, right?
So you'd first have to like identify kind of a neighborhood
(22:00):
or an area. And then you'd have to identify
who in that area as a practitioner that I can go and
approach and ask if they want some extra work.
I think the identifying the areais easy because you're just
going to look at demographics. You're like, obviously these are
going to be higher income, you're going to look at age, all
of those things. So that part might be easy.
(22:20):
The harder part is going to be how do you find people in those
target areas that live in those areas that would be interested
in this as a side hustle? I got you.
Here's what you need. You're missing the third party
here. You need a third person in this
partnership. OK.
We've got we've got. We need a you're the Lou
(22:41):
Pearlman here. OK.
You're the Lou Pearlman to the Backstreet Boys.
OK, OK, but you've you've only assembled part of the
backstreet, but you're only assembling the MP to actually
perform the procedure. I've only got Nick Carter.
I don't have AJ. That's it.
I don't have Ryan. I don't have JT.
Forget it, JT. Come.
All right, keep going. Anyway, no, you need a mom.
(23:05):
You need a mom. You need a well connected mom.
Or or at least a mom that's willing to post in a Facebook
group because here's the post, here's the post.
Hey girls, hey I'm hosting A Botox party.
We can get a discount like this is.
Honestly, I hate to say this, edit this out, but don't.
But this is like the perfect MLMpyramid.
(23:26):
Scheme opportunity Yes, just find the.
Parties like who is the Botox like Tupperware party?
Yeah. Yes, this has to exist already,
right? You need to find the women that
did sell Lula Roe or Nu Skin or Tahitian Noni juice or you name
it. And then they don't anymore
because the life span on these things is like 5 years.
(23:48):
But they have all the skills andthe network.
Although they probably, they probably burned the network by
this point, but they just need to host parties.
That's right, at a discount. But how do you find them?
I I agree with that, but how would you find them at scale?
Oh, there's third party tools where you can search people on
Facebook based on keywords. So you could search people that
have ever posted about Lulu Row,and if someone's posted about
(24:12):
it, it means they were probably a distributor.
Do you want to test this with me?
Yes. Like I could go for the purposes
of this podcast, yes. I could go to my neighbor and
just be like, hey, let us try this, we'll pay for the ads.
We just want to see if you get back.
Yeah, we can spend 300 bucks andjust see if he gets 1 customer
(24:32):
from it or one person. And people listening could
replicate this wherever they arethat.
'D be rad, all right? I love that.
What are we calling this is, is this a segment?
Is this like a thing now? Apparently we did the perfume
segment. Now this is going to be like a
return and report. Yeah, we'll call it the return
and report segment. And for that small group, who
knows what I'm talking about, you're going to be giggling to
(24:54):
yourself. And for everybody else, you're
going to be like what? We're trying to.
I don't understand. Physically speaking, for the
3.2% of people that understands it means, or if you're in
Europe, the .32% of people. So good.
I like that idea. That's a good idea.
It's a relationship idea. Literally no money.
(25:14):
It's one of those ideas that youlaunch by making a couple dozen
phone calls and finding a coupleyeses.
And I really do think it's a side hustle.
Like to me, I don't see this as like, oh, this is going.
To be scale though. Yeah, good scale.
I'm just saying like for an NP or APA or a nurse who can
administer Botox in a neighborhood and it was won't be
every state. Some states are state specific
(25:35):
on who can administer. You'd have to actually see the
guidelines and who can administer.
But if you find that person for that person, they're going to
have a full time job. It's just like, oh, this would
be cool. I could see, you know, 2, an
extra 10 people a week in my neighborhood.
And from those 10 people, I'm going to earn an extra $20,000 a
year. Another thing you could do here
(25:56):
is once you prove out this model, you put it in a long PDF,
make a course, and you could sell this to NPS.
There doesn't need to be there doesn't need to be a pasty white
guy like yourself to to play middleman right.
It could just be two people here.
And if I did do it, I'd have to be like being a Botox out of my
mind. Like, have you ever wanted to
(26:17):
know cars? I'm smiling.
You get it. But I mean, you could sell a
course to people to do basicallymake money on the side and then
they could replace their income entirely with this.
I love it all. Right, I got one for you.
Do you remember why about the domain name?
I call this domain name #732 Domain name lifetime
(26:40):
sandals.com. Lifetime sandals No.
I haven't talked about this in maybe six years, but I still own
the domain name. Have you heard of Shady Rays?
No. So Shady Rays, I, I think I'm
getting the name right, is a sunglasses company that blew up
because of their UVP unique value proposition.
(27:03):
OK, they came to the market and said we have really nice
glasses, sunglasses, but guess what?
Everyone loses their sunglasses.So with our sunglasses, lifetime
warranty, no questions asked. You break them, you lose them,
no problem, we'll replace them. Dang.
It's just the framing. It's just the framing and it's
like, well, how do they make money?
Well, they sell them. You know, there's already high
(27:23):
margin on sunglasses and I've priced these out in China.
They cost $1.50 to make, $0.50 to ship.
You're in it $2.00. You sell them for 50 bucks.
Anytime someone files a claim, you just OK, no problem.
You just have to pay shipping. Shipping is 5 bucks, cost 3
bucks. So you basically you net even on
shipping, right, $5 for shipping, you work your margin
(27:45):
for the glasses into there. And so statistically speaking,
they would have to file 10 claims to for you to break even
on them, right? And people there's friction and
they introduce strategic friction.
I call it strategically introduce friction.
Believe it or not, they introduce friction.
They're like, I'll fill out thisform, OK, do this, call this
number and most people. Are going.
(28:06):
Yeah. And like, statistically, even if
there is no friction, 8090% of people will never file a claim.
Like either they won't lose it or if they do lose it, they
won't remember, they won't thinktoo.
So that idea has been done for sunglasses.
But I think the same framework could be used in any industry,
right? Lifetime warranty and just work
(28:27):
it into the margin. And you might take a little
beating up front because you don't know what the claims will
be. So you're going to have to leave
it loose. But once you learn, wow, OK, 2%
of people are filing claims in the first six months, we could
drop our prices even more or oh geez, 30% of people are filing
claims. We got to raise our prices.
And so that's why I bought lifetime sandals because I
(28:48):
rotate through sandals like crazy.
I break them all the time, right?
So it's like if I could pay 80 bucks for sandals and just, or
if I could sell them for $80, import them for $3.
They're small, they're cheap to ship.
They're under 16 ounces, so theyqualify for first class.
You could totally do the same thing with sandals or something
else. They'd probably have to be a
(29:09):
high like high ticket, high margin product.
Like so my brother-in-law has like, for whatever reason,
gotten obsessed with things thatare manufactured in China and
he's like Ray brand Ray Bans andyou know, XYZ sunglasses are
manufactured by the same manufacturer.
(29:30):
Oh my gosh, by the same factory,by the same people using the
same types of products, but one is $300 and one is $20.
So Ray brand Ray bands is able to have this fat margin just
because of the name as opposed to like the quality of the
product. And so I would go and look at
those types of products, probably the remanufactured in
China that are similar to other high ticket watch, right, like
(29:54):
nice watches, rings, sunglasses are one, handbags might be 1,
sandals are one and just go after that.
It's like, OK, what's what's a high quality, high ticket
product that we could replicate and have the lifetime warranty
on and go that way? Doesn't Patagonia do it like
(30:17):
against damages or defects? I think that's what they're
known for. It's similar but different.
They don't ask questions. Maybe it's either Patagonia or
North Face I. Patagonia.
Makes whatever, but like there'sstories of people who have like
taken their 30 year worn boots back and and gotten them for
store credit right? Like, so, yeah, yeah, they're
(30:39):
definitely companies that do this.
But this is different because it's like if you lose it, that's
the key differentiator. If you lose it altogether, they
will replace it. Whereas Patagonia is like, if it
rips, if there's a defect, bringit back, right?
It does have to be something specific, a specific type of
product. And it's kind of the honor
system too, right? Yeah.
(31:02):
Oh, I lost it. I'm sure they have protections
worked in but anyway what you got?
You got more? What do you got for me?
I tweeted a little while ago about DS OS.
I've talked about DS OS in the past.
They're dental services organizations.
And I'll do a quick primer on like what DS OS are.
So dental services organizationsexist primarily because in many
(31:26):
states there are regulations against entrepreneurs owning
dental practices. Dentists can own practices, but
me and you couldn't just go and start a practice from scratch.
We would have to partner with a dentist.
And the way that entrepreneurs and in particular private equity
funds have gotten around this isthey've created these things
called dental services organizations where they don't
(31:46):
own the practice, but they charge, you know, 50% management
fee to the local clinic and the local clinic is contractually
obligated to use them and they send the money back.
And so it's kind of like this work around.
Some of them actually do own theclinics that, but that's because
they have a, a dentist who also is a partner in the DSO.
But anyways, suffice it to say this is a centralized
(32:10):
organization that helps support practices in the field.
And they offer things like HR, payroll, billing, collections,
legal, all of those sort of administrative components that a
physician just doesn't want to deal with.
You see this in the medical space with physicians as Ms. OS
medical services organizations. You see obviously DS OS, but I
(32:35):
like this model because you're able to provide services at
scale and you're not necessarilygetting into operating the
practices on a granular basis. So that's a quick primer on what
DS OS are. I think not.
Just think we both have a thesisthat search is turning local.
(32:57):
We like Google My Business, which is now Google Business.
Profiles are incredibly important to driving business at
the local level. AI is obviously answering a lot
of questions on Google that wereotherwise driving traffic to
websites who relied on that traffic.
Like what's a good recipe for tomato soup that used to drive
traffic to people's websites andit was like a lead funnel that
(33:19):
then took them down the road to buy a cookbook from that
website. Now Google just gives you the
answer based on all the things that they're aggregating off of
the Internet. Well, you can't do that with
local search yet. And so Google business profile
is becoming increasingly more important with reviews and, and
all the things that and we've talked about launching an agency
to do actual Google business profiles in the past.
(33:41):
But I think there's an interesting business and this
would be like a wholesaler of just hooking up parties, Google
My Business agencies on one end,DS OS on the other, and a
middleman who just connects themlike almost like a lead Gen.
(34:01):
organization, but specific to medical in particular.
And the way that I would do thisagain, back to like the local
conversation that we were havingis I would start looking at my
local networks. Do I know any dentists?
Do I know any physicians? And sorry, I mean, you see these
people at barbecues. You see these people at your
local kids events, and you you always make the small talk.
(34:23):
Oh, how are the Bills doing thisyear?
Oh, man, the Dolphins really do suck.
Can you believe Lane Kiffin's still coaching?
But Nick Saban ain't, I tell youwhat.
Anyways. And just ask them, like, hey,
you're a dentist, right? Yeah.
Yeah. Are you a part of ADSO or you're
a physician? Are you part of a Medical Group?
And the second they say yes or no, like just ask them how are
(34:45):
they finding leads? How are they?
I'm curious. I'm starting to learn more about
this, but there are a ton of accounts on Twitter, on
Facebook, wherever that are easily findable that will
provide those services. And then you don't need to be
the one like you don't need to start a Google business profile
agency. You just are the middle man.
You connect them, you get a fee and perpetuity, wash your hands
(35:09):
and you're out. And so I think it's like
localizing the lead Gen. Space in your local community.
Not necessarily for dentist or medical, but anyone that's on
Google it could be business profiles.
I'm using them as examples, right?
Because I think they're 22 really, really good examples.
But like back to what we were talking about with my nurse
practitioner neighbor. I know he's a nurse practitioner
(35:31):
whom, who could I hook him up with to get him more leads?
Because I think that local lead generation and, and specifically
focusing on local lead generation is going to become
more and more important and moreand more specialized.
And they don't yet know who the new, I guess agencies are that
are specializing in this. So instead of them like figuring
(35:52):
out on their own you being proactive and then taking a
piece of of the referral by leveraging your your network.
Here's another idea. So same approach, same thesis,
which I agree with. You approach the guy at the
party and say, hey, you start talking about his practice.
I know this is random, but I saw, I noticed on your Google
(36:12):
business profile that XY and Z, like you're not doing updates or
you're not doing this, you're not doing XY or Z strategic
thing that people should be doing to get more leads.
Is there a reason why? Oh, I don't, I don't even think
about that. He's like, dude, I don't know,
man. Like I know this other dentist
who does those things and it drives like 60% of his business.
Would you mind if I like, if yougive me limited access and I can
(36:35):
just start poking around in there and see if it helps your
business? Just very low pressure, no cost
anything. And then a month or two later,
dude, I drove 38 calls to your office.
Yeah, I've actually noticed it'sbeen busy.
Hey, I've actually started a business around this.
Would you mind if I would you mind paying me 1000 bucks a
month to manage? This so would you white label it
or would you be you would actually?
(36:56):
Do it. Just do it.
Just do it. Yeah, I think because you're
already like halfway there if you're finding the leads, you
know, so it's like depending on what your situation is in life,
at that point, you might as welllearn the skills and have an
agency, one to two grand a monthper customer.
Yeah, that's a good point. I'm like fascinated, kind of
obsessed with this idea of the local economy, not the local
(37:18):
economy. It's not the local economy, it's
the local economy. Thank you for clarifying.
Sorry, I froze. That makes more sense.
All right, I got a little hack. Little life hack for anyone
listening. OK, if you want to find out what
to sell. So we all know Native
deodorant's origin story. He went to Etsy.
(37:41):
He saw what was best selling. He saw that people were buying
not all natural deodorant aluminum free.
He started making it himself. He cracked Facebook ads.
He sold it for $100 million in like 9 months to to Procter and
gamble. There's another Etsy hack out
there where? Go to Etsy, let the algorithm
lead you. And I love this hack for
anything. Go create a brand new Facebook
(38:03):
account on a new computer or a new browser in a with a proxy,
whatever, or Instagram, Twitter,any of the social networks.
See what the algorithm shows youwhen it doesn't know who you
are, OK, Because that's going toshow you what's interesting,
what's trending. It's going to show you like the
most viral things because it doesn't know what you want to
(38:24):
see, OK? That's really interesting I've
done this on Instagram recently and like my personal account on
Instagram is all just females gym clothes bikinis right but
then when I. Go to.
That's so weird, there must be aglitch.
When I go to an outside account,it's like, you know, the news or
normal stuff. Do you know why that would be?
There's no way. Must be a glitch.
(38:46):
There's no way of knowing. OK, Thank you God.
OK, so go to Etsy, see what it'sshowing you.
It's going to show you some really best sellers.
And that that alone is going to be a good tell as to what's
selling well. Because if you create an account
and you log in and you start making some searches, looking
around, then it's going to show you what it thinks you want to
(39:07):
buy. Not what is the biggest seller
right now, but go find a popularEtsy seller based on how many
previous sales they are that they have.
Because Etsy will show you a lotof that data and look at their
reviews. And let's say an Etsy seller
sells 100 different items. Look at their most recent
reviews and what items are everyone talking about in the
(39:31):
reviews? And that's going to tell you on
the biggest sellers, the best sellers, what the most popular
items are because there are so many opportunities to unbundle
Etsy to take products or products, product lines, pull
them outside of Etsy, take them to Amazon, take them to Shopify.
A lot of times it's already beendone, right?
It's not like a given that it hasn't been done, but there are
(39:52):
arbitrage opportunities there where you look at the reviews,
what are they talking about in the reviews and you'll see what
the best sellers are. I talked about finding out what
Shopify best sellers are by pasting a URL suffix into a
Shopify store. Where would you start with that?
What do you mean? Would you go or would you have
your wife like start looking? I would go like.
(40:14):
What would be the first filter you would search for?
But it depends on what you want to sell.
I mean, let's do it right. Now OK.
So I open Etsy and I'm going to type in the word Texas because
I've done this before for Texas snacks.
So there's no way, there's no way to sort like top sellers.
You can filter by that, but it'snot always accurate because it's
(40:34):
combining with the algorithm to show you what it thinks that you
want. And so I want to find sellers as
in the account selling items, not necessarily the actual items
within the accounts. I'm looking at this store called
Just Phone Cases. OK, Literally the name is Just
Phone Cases. And what are their best sellers?
Nurse bags and nurse coasters, Really, Right.
(40:58):
So to me, that's a big tell thatsomeone that literally they're
called Just Phone Cases. Really.
That's all we sell. They're selling a ton of nursing
coasters and nursing bags. She's like, OK, or maybe there's
an idea there for an e-commerce store solely pointed at nurses.
Kind of like that scrubs company, I forget the name, that
they'd say a publicly traded company.
(41:19):
Figs. They're publicly traded and they
just sell freaking scrubs to nurses.
Jeez, love it. OK, what do you think?
What do you think of Hold Cobros?
See you next time.