50 MINUTES OF STRATEGIC SOCIAL MEDIA TACTICS WITH PATRICK BET DAVID | #THINKMEDIAPODCAST #158
Speaker 2 :
Unemployment’s gonna be very ugly. Bloomberg just came out yesterday saying 100 % chance next year’s going to be recession. Warren Buffett 2 years ago when he was sitting on a hundred and twenty five billion dollars of cash, everybody called him crazy, right? Now he’s sitting on a hundred and five billion dollars of cash. Why would he sit on a hundred and five billion dollars of cash twenty four the day after election the? Next day will be the single biggest climb ever to doubt in a history of America. It’s going to go to the roof. The next 18 to 24 months is not going to be pretty for content creation. It’s the complete opposite of what I just said.
Speaker 1 :
Thanks for coming back on the podcast fired up to get into the content. We got the economy to talk about, macro economy, the creator economy, and I want to hear about content strategy, how you’re thinking about content, how you’re thinking about all of that stuff. But this is a special interview because today is your birthday yes it.
Speaker 2 :
Is, and you’re here at work. How do you feel about your mentality when it just comes to hustle working on your birthday? Being devoted to your vision, what’s it mean to you in this moment, on your birthday, to be doing a podcast here at VALUETAINMENT headquarters? I don’t mean to, you know, like undermine it, but it means literally nothing. It’s just another work day. But here’s why. A long time ago when I started building my business, I asked. I said, so if I’m somebody that takes vacation based on what the government tells me, then I’m just like everybody else. I said, I don’t want the government to tell me when is a vacation. I don’t want their traditional. Days to be vacation. I want to meet, to choose when I want to go on vacation, whatever those days may be. So Christmas to me extremely valuable. I over invest spent for Christmas because it’s a my favorite holiday of the year birthdays it’s 4444 I mean it’s a Reggie Jackson’s number forty, four jim brown, you know you got Nolan Ryan and 44 is a cool number, but it’s nothing crazy about it. I think 45 will do a party. I’m probably not going to do anything from 46 to 49 And then fifty we’re going to do something that’s going to be pretty legendary. But yeah, in regards to today being a birthday and me being at work, this is very if you ask my wife with somewhere around here we just had lunch. We went and looked at the other building real quick. This has been the story of my life. I’m the guy that rent sales meetings on Labor Day weekend where everybody’s taking Monday off. I have a six a m sales. Meeting you know, I’m the guy that you know, December thirty first, everybody’s party until late at night, January 1st, I got an 8:00 sales. Meeting i’m that weird guy that ran those meetings because I just felt, you know, if it’s a psyche, if it’s whatever you want to call it. I wanted to do what others don’t want to do on certain days, and I want to teach willpower to myself and others. I thought that’s what it took to win. And whether I’m right or wrong, it’s worked out.
Speaker 1 :
I love it. So you spoke at our event grow of video live and you came out swinging. You’re about to talk about content, but you were like, listen, warning, you know, you got to get ready. For the next 2436 months, we could be facing the greatest economic crash reset. And recently at your conference, the vault, you had Robert Kiyosaki come on. And he spoke at your event and he said we are about to face the biggest economic crash in history. And it’s still coming. It’s the everything bubble. My question for you is, have you updated your point of view over the last few months? Do you think things are going to be better, worse in the middle? And even you made some predictions about housing all of the above. What’s kind of the current state of the economy from your perspective and some of the things you’re personally doing?
Speaker 2 :
Housing is going to still take a massive hit. It’s not over with, you know, the luxury housing market. Drop 28 %, which that’s a problem right there. And the way they define the luxury housing market is like the top 2 % in any city. So, you know, top 2 % in New York could be a, you know, twenty million dollar, home but a top 2 % in Toledo could be an eight hundred thousand dollar. Home it doesn’t matter. Imagine the luxury market dropped 28 % in six months. So a ten million dollar house is a seven point eight million dollar house. A, million dollar house a seven hundred and twenty thousand dollar house seven point two million dollar house so that’s a big number right there. Loan officers are leaving the industry by the droves. Realtors are leaving the industry by the droves. You’re looking at licensing in the state of Texas is down. Licensing in the state of California is down. You’re seeing what’s going on with the economy right now where it’s kind of OK season right now. It’s like, oh, it’s good. It’s recovery, it’s not recovery. Powell’s talked about the fact that they’re going to raise interest rates until inflation. It’s 2 %. Inflation is still 8 %, which means rates are going to go 30 year mortgage rates just cracked 7 %. A year ago you could have gotten a 30 year mortgage rate at 2 6-5-2 point 8-5 That’s a big difference when you think about the payment. So the only thing that happens when rates are high values down. When rates are low, values are up. The mortgage payments the same thing, it doesn’t matter. So the mortgage payment on 1000000$ home at 7 %. Is the same as the mortgage of a say million three home at 2 % or at 3 %. So nothing’s changing in regards to monthly payment that I can afford. Rates are going up, so value has to go down. So there’s going to be a lot of people that are still sitting on their homes trying to sell it. They won’t do it. By the way, I’ll give you a personal story on how I lost a hundred thousand dollars in a car the last 12 months, OK, so my Ferrari was on sale a year ago. I don’t want to buy to keep the Ferrari because I couldn’t fit in it little less than a year ago. It’s an s f ninety. It’s a beautiful car. I put in the market for eight hundred thousand dollars i got a seven sixty five. Offer i said no, I’m not going to sell for seven sixty five. There’s only a couple of these in the market. I’m going to get my 800 Personal experience, I’m telling you about, right. Okay, mister genius so this seven ninety nine car that I turned on, seven sixty, five three months later, I called the guy back, said no, I’ll give you 700 I said no. So then I got a seven twenty off right turn down, I got a seven ten off right turn down. I got a seven hundred thousand dollar right turn down and I’m getting six eighty five. Offers i’m turning down. What do you think is going to end up happening? But it’s dropped itself a hundred thousand dollars a hundred and twenty thousand dollars just sitting on it. So from personal experience this is not going to slow down and what they’re pushing for the one number that they’re still looking at that no one’s you know so well look at this, unemployment is very strong, unemployment’s gonna be very ugly. Q2 of next year, it is not going to be pretty. Bloomberg just came out yesterday saying 100 % chance next year it’s going to be recession. It was it was like 56 % or 60 %. They just bumped it up to 100 %. Jamie Dimons, it’s going to be pretty ugly. Everybody you talk to is not looking too pretty right now. Matter of fact, while this is going on a guy that many may recognize his name is Warren Buffett. We all know who he is. David Rubenstein just wrote a book called How To Invest. Phenomenal book. And he’s interviewing everybody. Larry Fink, great value this money. He’s interviewing all the great ones. And everybody gives credit to one guy, Warren Buffett. Well, Warren Buffett right now, two years ago, when he was sitting on a hundred and twenty five billion dollars of cash, everybody called him crazy. Right now he’s sitting on a hundred and five billion dollars of cash. Why would he sit on a hundred and five billion dollars of cash? He knows the opportunity is going to come up. He’s going to buy companies on pennies on a dollar. Then the legendary. You know, Bridgewater, you’re talking Ray Dalio, who five years ago was saying cash is trash, just came out and says cash is no longer trash. Cash is valuable today. You know, you got to have cash because opportunities are coming along. So it’s going to be everything that I said that I believe it was going to happen, it was going to happen now. Dave Ramsey was beloved by a lot of different people. And he’s very big in a Christian community, and a lot of people follow him. I went to a church that we would go take a Dave Ramsey course. That’s kind of what you did if you went to a church that wanted to have somebody with credibility talk about money. And he would always give the basic, you know, how to pay off your debt by term, investor difference, all the basic principles. He said don’t buy into this fear point that everyone’s talking about. Real estate’s going to drop. He said that six or nine months ago. I don’t think he’s saying that right now because real estate has taken a hit and it’s not going to be slowing down. You got inventory that’s going up. It’s not going to slow down. When inventory. I mean I can go on and on and on telling you bunch of other things with the market. I’m not changing my position. I think 2022 is going to be ugly, but not that ugly. I think 2023 is going to be very weird year for a lot of people. 2024 the day after election, the day we vote, whatever the day is, 2024 November 3rd, whatever that Tuesday is the day we vote, my prediction the next day. Will be the single biggest climb ever to doubt in a history of America. History of the market. It’s going to go to the room. My prediction? I could be wrong. I believe 2526 Dow is going to get somewhere around 50 to 60.000, thousand the next eighteen to twenty four months is not going to be pretty.
Speaker 1 :
So in light of your predictions, what is your advice for entrepreneurs, content creators right now? Those that want to prepare and position their self, what are a few moves they can make to be very serious about right?
Speaker 2 :
Now I mean for content creators. It’s the complete opposite of what I just said. You know, COVID in the shutdown was great for content creators. Meet Kevin came out of nowhere and all of a sudden he had a million and a half Graham. Stefan went from, I don’t know, he was at four 500,000 thousand i. Think he’s at four million subs now. You got a bunch of people that blew up during COVID because when people are afraid they listen. So when people are afraid they need to be entertained. So when a person stressed out, sometimes they just want to watch a comedy film. They have no desire to watch a. Overly, you know, scary, you know, let me tell you what’s going on with the market. Like, dude, I just want to break, just make me laugh, you know? So you notice when COVID hit, what took what went to the roof? Alcohol went to the roof. Beer companies went to the roof. Liquor went to the roof. Entertainment went to the roof. Tiger King became a celebrity where he’s running for office, not to be a president. Who would have thought, we’re going to watch Tiger King 64 million. People are going to log on to Netflix in the first three weeks and watch Tiger King. Who’s tiger king? I was in Tiger King two. I don’t even know I was in Tiger King two. I’m getting call Saint Pat. You realize you’re in Tiger King 2 because I interviewed one of the individuals from Tiger King two. Now Joe Exotic is in jail. Him and I message each other and he follows the content, but you didn’t know what was going to happen. So for content creators, if they position themselves right in areas that people want, I think it’s going to be a very good season for content creators. Will position themselves the right way.
Speaker 1 :
If I personalize this a little bit, we’re so inspired by what you’ve done with valuetainment. You’ve bought this incredible building. Your podcast is in a vault. It’s the vault podcast. It’s a former bank, right? And we’re about to tour it. Excited for that. We want to buy a building in Las Vegas, and my wife and I also our current House is so positioned to be an amazing rental. It will cash flow incredible the mortgage is under 3 %. And we have more kids. We want to expand. If you’re me, are you buying, what would be your timing on pursuing buying commercial and buying a home? I happen to be in the market of Vegas. It’s a hotspot. It swings high, swings low and then we may be brought in that advice. Maybe somebody can relate to thinking about expanding their business. You just bought a new building and so maybe dueling mindsets of do we shrink back, do we lean in or what are some of the factors of measuring these things? Yeah, so.
Speaker 2 :
I’m going to say something. Some people are going to not like it, but it is what it is. I think it’s a perfect season right now to make disrespectful offers. Let me say that one more time. It’s a perfect season right now to make disrespectful offers. A year and a half ago, nobody had the right to make disrespectful offers and nobody cared if you made disrespectful offers. A person who made a disrespectful offer a year and a half ago look like an idiot today. A disrespectful offer gets an attention. So let’s qualify. What is a disrespectful offer? Say I’m in a market for buying a three million dollar, home okay, and rather than looking at 3 point ones and making a two point nine million. Dollar offer right now, I’m going to look at the fours, I’m going to look at the three eights, I’m going to look at 3 sevens, and I’m going to make a 2-6 offer right now. I’m going to make a 2-7 offer right now and I’m going to say 2-6-2-7 cash offer. Here’s what I got. There’s a penthouse in Miami. I wanted to buy 57 for a beautiful place two years ago. That place is a forty fifty million dollar. Property i made a very disrespectful offer and I was ripe on my offer. But they didn’t accept my offer. Well, the property sold for 19 million bucks a month and a half ago. Ok, that’s a forty fifty. That property will sell for 50 million bucks in the next two years. Three years. 2626 is what, four years from now? But today somebody got it for 90 million bucks. This is a building with all the major celebrities living. It’s a very beautiful building. 1000 Biscayne. If you put the picture so the audience can see it looks like a. You know, woman’s body. The designer was a woman who designed it. And then she passed away. It’s a beautiful, amazing property right. Property value dropped immensely. So watches. Today someone’s got a two hundred thousand dollar watch. They’re trying to sell it. Hey, I want one eighty four offer. Ninety five again. People going to get offended. Someone’s got a million, three million dollars worth of cards and they can’t sell it. They’re afraid to put it on an auction because they don’t think it’s going to sell on an auction. Make a 1-7 offer today. Let them react. All they have to say is no. If you got cash is kink. If you’re trying to buy a commercial property today and all you have to look at is a days of listing, it’s been there for 9 and a half months and they’re trying to sell it. Hey, they want three dollars for the offer two one worse than they’re going to tell you is what? No, but it could start the conversation. Like I said today you can get away with a disrespectful offer. I’m getting disrespectful offers right now if you only saw the offers I’m getting on some of the stuff and you know what I say to the person making me a disrespectful offer, I understand I would too. But the difference is I’m not desperate for the sale. So I’m going to sit on the asset. I don’t have to sell it, but if I’m somebody that’s selling today, you have to assume most people are gradually running out of cash. They were, they had some dry powder, you know, they had some powder, but they’re doing okay with some, you know, savings in cash they have that’s going away. And every month that goes by, there’s only so much you can act. If the average person was a great actor, they’d be in Hollywood, but they’re not in Hollywood because they don’t know how to act, which means they may seem confident today on Instagram. Maybe a month from now, maybe three months from now, maybe six months from now. But if all of a sudden cash goes from having a few million in the bank to 1000000 to 600 out to 400 down, now you’re sitting there saying I only have nine more months left. You’re a little bit quick. The first reaction is get rid of, get rid of. I don’t care. Just sell it. I don’t care. Just sell it. I don’t care. Just sell that property. I don’t care. And when people get into that motive, I don’t care, just sell it. People are getting things at a discounted rate. So my recommendation to you is. Make some disrespectful offers and in a Christian way, but make some disrespectful offers.
Speaker 1 :
I love it. Let’s talk about content. And you just gave an interesting tension between other industries and content. In these next few years, especially even in recession, we actually, personally, as soon as the lockdown started, think media’s views doubled our entire YouTube channel. We didn’t do a thing different. Makes sense. People are at home. They started searching for things. And so I do think this is going to be an incredible season for content creators. And you yourself have bet on content big. You’ve gone all in with value tainment. You’re starting shows, you’re starting, new personalities are being recruited. You already have this massively influential, I believe, the number one channel on YouTube for entrepreneurs. And not just by the numbers, but by the quality of the content. Why are you betting so big on content?
Speaker 2 :
Why am I betting so big on content? So first of all. You know when you’re saying your content grew, it didn’t grow just because you were creating content, you were creating good content, right? You know, people think just because they create content, they’re going to get a hit. You’re not. It’s got to be good content. You got to know which audience you want to attract. You have to figure out a way to differentiate yourself. It’s got to be less acting, more you. It’s got to be authentic. Either you’re giving me value, you’re making me laugh. You’re making me aware you’re steering the pod. You’re controversial. You’re doing something to get attention. And there’s many ways of doing it. But today. You know, years ago, Steve Jobs, when he wanted to make a statement about what Apple’s doing, he’d call Hugh Hefner from Playboy magazine. He was to call your editor in Chief. I want to talk to him. He would call him up and he would say, I want you to interview me. I want you to do a hit piece on me and this story. But he would call Playboy because that was his audience. Ok Steve Jobs, Playboy’s his audience. That’s what he would do. Ok Today, he doesn’t have to do that. Today, he simply goes like James Corden, right? James Corden goes to this restaurant in New York. And all of a sudden he has a bad day two days ago. Three days ago. And it’s horrible. So this is two instances where he disrespected the waiter, waiter and the waitresses. It’s the main restaurant that everybody wants to go to. Baltazar, some name like that, right? What does the owner of the restaurant do? The owner of the restaurant doesn’t call New York Times or New York Post or LA Times. He goes on his Instagram account. He puts a picture of James Corden on the bottom, describes why he’s eighty sixth james corden why? He’s the only one of the only few people. He’s 86 and 25 years, and he gives two stories of both times and he says he can never come back to the restaurant ever again. Well, today, apparently James Corden called him last night and had a conversation together, and he officially removed suspending Kim. And he cannot come back to the restaurant because he profusely apologized, saying, man, I apologize for what I did. And they said, Okay, no problem, you can come back to the restaurant so. If he wanted to do that before, that would have taken a longer lifespan. Everything is content today. Everything’s messaging today. Speed is faster today. Controlling the narrative is faster today. If 20 years ago I’m building a business, I’m probably more focused on building the company brand than my brand. The difference between jobs and Bill Gates. Jobs understood his own brand mattered as much as the company’s brand. People didn’t really see Bill Gates as a brand. People did see Steve Jobs as a brand. And you saw the similar thing with Larry Ellison and some of these other guys. And today, you know, you’re seeing the difference between Bezos and Musk. Bezos at one point was worth more. But people don’t know Bezos. They don’t even like Bezos. Why don’t they like Bezos? Why don’t people like him? Because no one knows nothing about the guy. Why do people like the Elon Musk? Why do people like this guy? He’s louder than Bezos. Shouldn’t they not like Elon Musk? Well, then Elon Musk trained Bezos to realize, hey Bezos, you got to get a little bit more vocal. You got to start paying attention to your brand. So what does the Bezos do? Bezos starts showing what he’s doing, traveling, having fun. He posts a picture with his muscles saying, hey, come on Leo, say something to my girl in a joking way. Then he calls out Joe Biden because Elon Musk is so vocal about what he’s saying now people are saying, hey, his engagement’s gone up, people are liking Bezos. There’s a little bit of this guy’s got guts, he’s got audacity. So everyone’s starting to realize. You know, in today’s era, whether you like it or not, we’re all naked. There used to be a time we could all just hide and be quiet. It’s not an effective strategy today because today, when somebody doesn’t say anything about anything, we see them as disingenuous. When somebody doesn’t have an opinion about things, we see them as they’re hiding something versus here’s how I feel about this, here’s how I feel about that, here’s how I feel about this. People are trusting brands more. Who’s the leader at the top has a position? Not necessarily a. You know black and white position, but we know you a little bit versus we know nothing about you because we don’t know whether we should trust you or not. So it’s a different world today of creating. So that’s why we’re doing it and for long term purposes we feel every brand has a position they take. You got some people that make movies that’s around sports. E s p n documentaries sixty, four, sixty that’s great. You got some people make you know for superheroes, you know you got Marvel Avengers, all this stuff, some that are making movies that’s about comedy fantastic some that are making movies, that’s political. You know, daily wire, they’re trying to give their messaging. We’re going to be making movies for the rest of our lives with value, Tim and media company around stories of an entrepreneur and the other underdog. We’re going to inject the spirit of capitalism to people around the world because without that system, I’d be a regular guy today.
Speaker 1 :
You’re starting multiple shows and you’re recruiting personalities. What’s your vision? Is there an unlimited cap? How many podcasts do you want to start? How many shows do you want to start? Is it on an organic development or a highly strategic like you’re trying to hit certain numbers like tarbucks opening new stores?
Speaker 2 :
That’s a great question. So we just made an offer on an 11 acre land. Three weeks ago, which is about 5 miles away from here, we’re going to build a campus to fit 2000 people because we’re going to create sets, shows, you know like a like a Johnny Carson, Jimmy Kimmel, you know, Jimmy Fallon type of a set where PP can rotate right now. Just bought a building over here that we created you by the way after this somebody should take you there for you to see it. You should go see it and kind of get some B roll of it. You’ll see a wall of fame with people that we admire with a gold by attending a logo there and a set with. Five seats, camera galore, 16 foot LEDTV where you can do your podcast in front of you. There’s 300 people live sitting there while you’re doing a live podcast. So live audience butts and seats, having drinks, liquor license, cigar lines. We’re creating a little bit of a man cave type of a feeling that’s going to be black with Churchill, where you’re coming in to watch a fight or you know, football game or you’re watching the debate and you’re sitting there having a cigar having a conversation with another executive or founder, more of a hiring type of stuff and it’s going to turn into a comedy club. But are the 11 acre land that we’re making an offer on? It’s going to be like DreamWorks, Warner Brothers, it’s a campus, our consulting business here that you’re looking at. This has been growing extremely fast. We can’t fit people anymore. If we had enough room, we’d have 100 people right now on the consulting sides because that business has blown up for us in a big way to it’s going to end up being one of the biggest consulting firms in America because that’s our audience entrepreneurship. So now our private equity firm, we’re making investments. We did another investment last week. Into a company. We’re very excited about this new founder that’s building an idea that I’m really excited about what this guy’s going to be doing. So we have our private equity firm, we have our consulting firm called the David Consulting. We have our investment group that’s called by Tim and Investment Group. We have our comedy side. We’re going to do our own model of NSNL We’ll do you know, movies, documentaries are set that we created. Over there is to bring other podcasters where you can rotate because you can put whatever logo you want on the LEDTV It’s not like a set that’s. One person, you can mix it up and add additional things that you want to the set. So we have a very long term vision on what we want to do and it’s crystal clear. That quote right behind you pretty much answers the question you just asked. I’ll read the quote to you. It says not one person in the entire motion picture field knows for certainty what’s going to work every time out. It’s a guest and if you’re lucky and educated, 1 William Goldman, right. So that to me is we have no clue. How we’re going to do what we want to do, but we know exactly why we’re doing what we’re doing. So the vision is crystal clear. And you know, it’s easy when you have a clear vision because the right people show up. So we’re going to recruit other podcasters, comedians, talent that wants to talk politics, talent that wants to entertain experts on finance. It doesn’t matter. We’re recruiting people to come down to South Florida and run with us.
Speaker 1 :
What’s your advice to founders? Leaders somebody that wants to dream a little bit bigger. I feel like I love your vision and we get to draft behind you and learn from you. You’ve got so much vision. What’s your advice for recruiting and attracting leaders to help you build an empire as big as you’re describing?
Speaker 2 :
Yeah So number one is the sooner you know what you want to build, okay? So let’s just say you if you’re the more you’re winging it, the less likely you’re going to find the right people. When I was winging it, the right people weren’t showing up. The moment I got crystal clear on what I wanted to do and my vision was very clear, I sat down and I said, here’s what I want to do. This is what I’m looking for. Then I started telling everybody about what I’m doing and what I’m looking for. And it would always end with hey, Sean, listen, you got a few minutes yeah so let me tell you what I’m working on right now. Here’s what the vision of the company is. This is what we’re trying to do. This is where we’re going. Here’s what we’re thinking. We’re going to get there. And I want to know if you know anybody that can help us with this, because I need somebody that’s a CTOI need a chief compliance officer. I need a, you know, COOI need a president. I need a editor in chief. Do you know anybody? Just the other day, I’m on the phone and I’m looking for an editor in Chief, Okay for our news site that we have, valuetainment.com So I sit there and what do I do? No joke. I sit there. I’m trying to show you some of the people that I texted you, you’d recognize the names that they’ve text me back at this point. But i’m texting people and here’s my text sounds. I am looking for a president of my media company. We’re hiring another 50 employees between now and the end of the year. If you know anybody that would make a hell of a president for media company or an editor in chief for our new site, I’d love to speak with somebody. Thank you. I sent 50 messages out. Half of them respond back saying I don’t know anybody. The other half responded back saying let me think about it. And a handful of them said I got a couple names that you got to talk to them fantastic but my job is now to tell people what I’m looking for. Just like when I was single and I finally realized I’m ready to get married. And I knew what I wanted as a wife, what I wanted her to look like, how I wanted her to be. When I got clear, I started telling everybody this is what I’m looking for. If you know anybody, think of me. So everybody’s like, hey, I’ve got this girl, you know, she’s Miss California, you know? I think you’ll like her. You guys got to get together. So we’re going. It’s fantastic getting along. We’re good. Ok here’s another one. She’s doing this, correct. I like this and it’s like, OK great. Then I meet my wife awesome then we get married. Now we got 4 kids. Now we’re together for 13 years so but everything is first. You want to get married? Yes what do you want to look for in a wife? Go tell everybody about it number two what do you want to do with your vision? Here’s what you want to do. Go tell everybody about it. So somehow, someway people appear and they’ll typically match your profile. Like when I met your team in Vegas similarizing principles, I met that one girl that had 16.000 thousand subs on her channel was a teacher trying to teach homeschooling heather oh,
Speaker 1 :
Heather just really liked her. Then I started seeing other guys that you had there. Ryan was there just what a great guy he is, the big former baseball player, him and his wife, good looking guy, could be a model, by the way, and he’s doing real estate. I really liked him. Then I started just seeing who’s around you, right. You’re learning about that. But typically whatever values and principles you’ll have, you’re going to draw those types of people to your company. So speaking a little bit deeper on media, I’m curious. Your take on mister. Beast recently on a podcast, The Flagrant Podcast revealed that he turned down a one billion dollar offer for his YouTube channel and he said, I’m clearly not looking to sell at this point. He said maybe if it was a 10 or 20 billion I would even consider it for now. That would make me more comfortable handing over the keys to my Kingdom. But ultimately I think it could be worth way more. I think people on the outside of what’s happening in the YouTube world and the content world are absolutely shocked by that. But from your perspective, do you think that he made a bad call or do you think that he’s exactly right, he’s way undervaluing what it is?
Speaker 2 :
Well, I mean, a couple things. One, your business is worth whatever the market is willing to pay you. We don’t have the details of what was offered to him, but let’s do some basic math, okay. So I just pulled up his channel. His most viewed videos? 293 million views. It’s a 25 minute video. That’s the four hundred and fifty six thousand dollar squid game that he did, which was all over the place and one note about that as well is he’s also doing multiple different channels, absolutely dubbed, and so his most viewed video Squid game is actually higher in another language.
Speaker 2 :
Yeah, and I’m aware of that. So, but let’s do this together. So Super Bowl commercial, you do 30 seconds. What are you paying, five point two million. Dollars give or take, right? And Super Bowl gets roughly 100 million views. Ok So if we take 300 million people watching the Super Bowl, which is the number here, not including all the other stuff, which means a sixty second clip in this twenty five minute video is what sixteen million dollars o k. So if he’s able to get a billion views because it’s in other languages, then that means that’s now a fifty million dollar one video on that number. Then you take that I don’t know how many videos he’s got. If we go over here and we see how many videos is uploaded, he’s got total 17 billion views. I’ll just do the number on 17 billion views we can do together right now on just one channel. Ok let’s do this together. 17 billion views divided by 100 million, because that’s what Super Bowl claims. So that’s hundred seventy times five million bucks. Ok minimum that thing is worth eight hundred fifty million dollars So 1 channel. So I’ve never even been asked this question nor have I done the math. His one channel alone has generated a minimum of eight hundred and fifty million dollars and I’m calculating only one commercial. So assume on each video he can do five sixty second commercials if we go to five on that that’s four point two billion dollars. That he has in his in his channel so i and then added to all the other channels that he has, I think he’s right 10 or twenty billion dollars the right number.
Speaker 1 :
And YouTube revenue and also the commercial spots and then also and I I’m not sure if in the deal he’s got Beast Burger now cuz I think it might have been for his empire. He’s got a restaurant oh.
Speaker 2 :
My God, for the entire empire, they offered a billion.
Speaker 1 :
I’m not sure, but that’s what he was saying this is.
Speaker 2 :
I haven’t. I heard about it. People ask me. But if it’s for the whole thing and does he come with it and how many years does he come with it? And how many minimum clips is he going to do per month? How many videos is it going to do if all of that comes together? I think he’s right, it’s a ten billion dollar No, I wouldn’t be selling you less than 10 billion yeah And he has a chocolate bar and that’s already in Walmart now. And so even off the momentum of his brand, I mean, of course there’d be diminishing results, but that that’s fascinating. So what do you think that speaks to in terms of do you think that there’s still a big disconnect between the old media world and the new media world respecting? A content creator like mister. Beast and traditional Media still being the weights are not balanced in terms of maybe understanding what this is worth or do you think it is accurate?
Speaker 2 :
Ok, so, I mean, but none of that is anything new. Meaning I’m Armenian and I’m a Syrian born and raised in Iran, right? I’ve done very well for myself. I’ve made a few hundred million dollars OK. But if I go sit down with my mom, who’s Armenian, she’ll talk about one of her friends, daughters that got a four year degree and I don’t have a four year degree. So to her success is a four year degree. To her success is being a doctor. I don’t have a PHDI will never have any plans of getting a PHD or a master’s or a bachelor’s. So that doesn’t change. You know what? What is the difference between a person who goes to Harvard and gets a degree from Harvard? War on the wallets as Harvard, but they’re making one thirty a year versus a person who went to a Community College, graduated from a small school, and builds a business that sells it for 1 2 billion? In the eyes of an educator, Harvard gets more credibility. In the eyes of a doer. Forbes 400 you know, all the other stuff. Of course you’re going to look at the guy that’s generated revenue. But media is getting a black eye and people like him are not slowing down. And this is just the beginning, by the way, what he’s been able to build, and it’s going to be interesting as he ages and turns 30 or 35 or 40, is he going to duplicate himself? And bring other people to get others to do what he does because he has a personality. But he doesn’t have Jimmy Fallon’s personality. He doesn’t have Logan Paul’s personality, doesn’t have Jake Paul’s personality, meaning his model is duplicatable. Logan Paul is not duplicatable. Jake Paul is not duplicatable. Tate not duplicatable. Rock not duplicatable mister beast very duplicatable so imagine if this guy goes and recruits twenty thirty forty other 16 year old 18 year olds and he owns 80 % of company and he teaches them how to do it and then they go take off. Could this guy in the next 20 years be worth a half a trillion dollars? It could very likely happen to a guy like him.
Speaker 1 :
And he’s 24 He’s 20.
Speaker 2 :
Four, exactly.
Speaker 1 :
When you look at media right now, what are your most important platforms in order for you strategically?
Speaker 2 :
For me, strategically, obviously it’s YouTube at the top for me why? Because I’m a long form. Because I’m, you know, I do my clips in a way where I have multiple channels I’m building it on. So we got value tainment, we got value tainment, short clips, we got PBD podcast, we got VT money. We got vitamin Russian, we got jedidiahbila, so that’s where invite him in comedy. So that’s where our main driver is. Instagram is playing a very big role right now. Instagram is like Vinnie downstairs. He just put up a clip on Instagram. Funny clip just being silly in the office. It’s an 11 second clip. It’s got 6 9 million views on Instagram. Ok, great.
Speaker 1 :
That’s number two for you.
Speaker 2 :
By Instagram, I would say Instagram would be there. Facebook is probably 3 tik tok is good for a lot of people. We were growing very rapidly on tik tok and you know, every other video would be a hundred thousand views two hundred thousand views The last time we had a thousand view was three hundred and fifty videos ago, so we don’t know what’s going on there. And we even bumped up the quality of clips, so the same clips we put on tik tok it. Gets two thousand views but we’ll put it on Instagram and it gets you know 2000000 views, 8000000 views, 6 million views. So tik tok to us it’s a little bit tricky. I don’t want to get into what that could be. The reason some of the content I talked about is not politically correct. I call out, I challenge. So some places that may or may not perform very well, but I would I would put those would be the list.
Speaker 1 :
If we do dig a little bit deeper on tik tok, what are some of your predictions? They recently they’re going to e commerce and they’re opening warehouses in Amazon’s backyard to expand e. Commerce they’re now doing still photos. They’re doing longer form clips, still photos like Instagram. And Washington Post just did a big, deep dive. In five years. The app, once written off as a silly dance video fad, has become one of the most prominent disgust distrusted, technically sophisticated and geopolitically complicated juggernauts on the Internet, a phenomenon that has secured an unrivaled grasp on culture and everyday life and intensified the conflict between the world’s biggest superpower. No app has grown faster past a billion users. And more than 100 million of them are in the United States, roughly a third of the country. So what are your opinions on tik tok? I wonder if demographics come into play. Maybe certainly politics come into play. But if we do actually dive into the world of tik, tok it’s a force it’s. Come in really strong. You’ve got Trump wants to shut it down and it’s very controversial, but it’s also absolutely massive as a strategist and as a predictor of culture. What are your what’s your view on tik tok?
Speaker 2 :
So for example, I’ll give you 3 different point of views. What phone do you use? Iphone what do I have? Iphone what do you have iphone? Ok, so that’s not good. You know, one of my guys, I just called him right now, Jose. I was on the phone with them and I said I called him back. He says, hey, where you at? I’m at tmobile why are you at tmobile? Because my phone shut down yesterday. He has an iPhone where he was withdroid for 15 years. He barely switched over to iPhone, right. We need competition. And iPhone doesn’t have competition. That’s not good for you and me. Google’s phone is not strong enough. Droids getting crushed right now. Blackberry’s been dead. You know, we need somebody that comes out and competes with this, or else they’re very close to monopoly here the way they’re grown right now. And that’s not a good thing for the market at all right? So that’s one. Two if that happens, what’s Instagram’s competition if Tik tok’s out? Nobody so you need Instagram to have a competition. Would you say Snapchat? Their stock is on 85 %. Snapchat is not Instagram. It’s a very different model than Instagram is. So it wouldn’t work out. Who’s going to compete against Instagram? Facebook, it’s the same company owned by Meta. So LinkedIn, Linkedin’s not going to compete. Twitter Twitter’s not going to compete. They try to do stories and they kind of went away from it. They have it a little bit, but they’re not really advertising it to try to compete with Instagram. So I want a competitor to Instagram. Everybody wins because. Tik tok forces Instagram to get your views up. More audience seeing it. But if tik tok goes away, Instagram’s going to say lower back down to 7 % and charge people, let them do ads so they can make money. So Tik tok’s the reason why Facebook’s values dropped where, you know, Mark Zuckerberg’s lost sixty billion dollars in net worth just this year. Tik Tok’s getting in his way. So OK, so let’s see what this is going to look like. So that’s that part. Capitalism kind of needs to work, and tik tok helps tik tok is the least trusted app in America by a lot of people politically. Left, right, middle, doesn’t matter. They do not trust tik. Tok of course, people don’t like Zuckerberg, or they don’t like Dorsey, or they don’t like some of these names because they’re names and they have control of these organizations. But the challenge with tik tok is with the way they’re going, they’re one or two presidents away from being banned for four years. Trump almost did it. And De Santis could do it. I don’t think anybody from the other side would do it. But I think Trump or De Santis, I would not be. Would you be surprised if De Santis becomes president and says, hey, we looked at the numbers, unless if you give us this report, you’re banned until you give us these reports. So then what’s going to happen when he does that? The media on the other side is going to get the youth to be complaining about hating Trump to lose that vote. But the youth doesn’t vote anyway, so they’re not going to care about that. They’re just allowed, but they don’t vote. India banned 100 apps from their country, tik tok being one of them tik tok is not allowed in India. You can’t go use tik tok in india. And China hates India and India does not trust China. And India was able to stand up towards China. So yeah, these guys are one or two. Presidents away from being banned in America, they’re getting as much Intel as they can right now. But even when the CEO of tik tok USA was asked questions that are you reporting back to China? He wouldn’t answer the question 3-4-5 different times, but eventually have to say yes, we have to bite dance, or whatever the company’s names called bite something. They have to report all the data back over to them because that’s the company that they report to. So they’re one or two presidents away from being banned by twenty four twenty five for.
Speaker 1 :
You are you hesitant to invest in tik tok? One of the interesting things that they’re also building out is search functionality. And apparently Gen. Z is using tik tok as a preferred search engine over Google and that SEO aspects of tik tok are rising. And so in light of. Them may be completely getting banned also if your results are not happening there, it may just be a strategy to say we’re just going to test everywhere but for you, do you see any reason to invest more into that because of maybe reaching the next generation or are you neutral anti or seeing strategy to lean in?
Speaker 2 :
I would, because I might. My philosophy is to convert or change the way of thinking right for you to say. Thought about it that way yeah you know what I’ll be an entrepreneur. Never thought about it that way. I guess capitalism is not as bad as I thought it was. Never thought about it that we rich people are not that bad. Never thought about it that way. I should go learn how to sell. Never thought so that’s my approach to get anybody to say. Never thought of a give some perspective so I want to be on all platforms to be able to get the audience and help them out with that. My own motive that I have just like everybody has but you have to realize just six years ago seven five years ago we had a phone company competing in America and it was a hundred billion dollar phone company. Do you remember that phone company’s name Huawei. Oh yeah. When’s the last time you heard you heard the name Huawei? Not in a long time, guys. Cfo They told them not to do business with Iran. And the CFO the daughter of the owner of the company was in Canada and she did some dealings with Iran. And it’s like, hey, you’re done. Guess what, Huawei’s out of the States and you were starting to see people having Huawei phones because Huawei was tapping into and. Trying to get Intel like this? It’s gone. So listen, do whatever you can to get a lot of eyeballs. But don’t forget people were addicted to vine. Where is vine? It’s been replaced by tik tok. It’s been replaced by Instagram. Everything’s going to be replaced by something new. It’s all going to be fine. But what they’re trying to do to get the Intel, and you know, The Dirty place that tik tok is doing, it’s going to catch up to them. It’s just a matter of time.
Speaker 1 :
As we land the plane, Adobe did a study called the Future of creativity study, and it revealed that 165,000,000 content creators have joined the creator economy since 2020 So there’s a massive wave in aspiring content creators. Young people’s greatest aspiration? They’re saying it’s not to be an astronaut, but it’s to be a YouTuber what? Is the good, the bad and the ugly of social media? I hear your vision on the good of you can reach people and get a good message to them. But in your deep dive conversation, even with Andrew Tate, I think he mentioned, I’m not sure if you agree about the harmful nature of social media. Just scrolling, shortening attention spans and in just kind of the good, the bad and the ugly for. Conflicted parents for business owners who are wanting to maybe do good but also have these red flags that social media presents.
Speaker 2 :
So, you know, historically people have done a lot to get 15 seconds of fame, right? A lot to do 15 seconds of fame, whether it’s taken out a president or, you know, getting out there in. Hurting somebody or fire or doing something to a building. There’s just a lot of things that people will do for fame for whatever reason. That big screen for people to say. I saw you on TVI Saw you on a video. I saw you on this video that went viral. Oh, my. Oh, you saw me. Am I famous? Oh, my God. This feels amazing. I noticed, right? And when you walk into some place. Oh, hey, Sean. How are you? Oh, hi. I watch your content. I love your content. Appreciate what you’re doing. Oh, hey. There’s so that feeling. Is a form of a high right that you get. You are being noticed. You’re contributing. There’s some fame, there’s some accolades. We feel that naturally people feel recognition. We are driven by recognition. The most humble person in the world. Mother Teresa became very famous. That’s recognition. Okay, she got a form of recognition. Billy Graham. The recognition in his eyes could be I baptized 210 million people in my lifetime. He goes and speaks in Korea. One and a half million people show up. If you post a picture, Billy Graham, Korea, one and a half million people. Look at the audience. Makes no sense. These are people that don’t speak English. They show because he’s showing up. It’s a form of a recognition that he had right OK, so where am I going with this? This is my concern. I have a few friends that are in Hollywood who are a listers who have done very well for themselves now. When he when we’re talking they’ll say listen, man, are you kidding me? Politically you think I’m like them. I’m not like them on this that. So how about that person. He’s also thinks like this. But how come he supports publicly this person and that person says yeah for obvious reasons, you know he is not going to get the jobs, he’s not going to get the eyeballs. He’s not going to keep getting those big movies if he’s aligned with those guys. Look what happened to. You know Clint, you know, not Clint Eastwood. He has no money so he doesn’t give a shit. But look what happened to Mel Gibson. Look what happened to this person. Look what happened to that person. They never look what happened to Vince Vaughn. Vince Vaughn did one thing with Ron Paul. What happened to him afterwards? Used to see Vince Vaughn and every single thing. Vince Vaughn, one of the loved favorite actors, what happened to him, he all of a sudden disappeared when they go into this box of how they feel, right? And then Netflix changed the game and all these other guys OT T’s were like, listen, screw you. I don’t need to beg you know, Weinstein anymore. I don’t need to beg all these guys. But this is where I’m going with it. Sometimes being so concerned about eyeballs forces you to put eyeballs over what you stand for, where it’s recognition more than true values and principles. If you can manage that and still stay true to your character and your values and principles and not compromise that no matter how many eyeballs you get, good for you but if we’re going to go in the direction where 164 million, what the number use 165,000,000 content creators and your goal is to measure success based on subscribership, based on Adsense, based on views. But what does that really mean? Does that mean you’re going to have to compromise to do anything to get the eyeballs on subscribers? So that’s the only thing that concerns me a little bit that if that’s recognition. You know, there’s anything I can do to get 15 seconds of fame. Are you willing to go that far? I’m not. I’m not willing to do. Because now you’re lying. Now you’re being somebody you’re not just to protect the agency that’s representing you. You’re with w m e and w m e. If they find that you said this, Oh my God, you’re going to lose that sponsorship with Sprite in that sponsorship. I don’t know. So, you know, that’s my only concern about it. I don’t think it’s anything new where people are afraid of saying what they say because somebody’s in their pocket that they’re paying them, so they don’t want to say anything bad about them. So does it produce more fake people or real people? We won’t find out for another 1020 Thirty years, but if you were to ask me, that’d be my number one concern.
Speaker 1 :
Last question, on your forty fourth birthday, if you could look back at a young entrepreneur, call it in their twenties building a company, and especially for our community, a lot of people, we’re calling them content entrepreneurs. It’s the idea that you can build a media business as a solopreneur. So many different ways to make revenue. What is just some of the advice and maybe this reflective day that you would just give to a young entrepreneur 1015 years back?
Speaker 2 :
For a content entrepreneur or an entrepreneur running a real business as an operator.
Speaker 1 :
Let’s go,
Speaker 2 :
Content entrepreneur. So if it’s content entrepreneur, you know it would be one word and it’s alignment. Let me explain what I mean by this alignment. So if you can be yourself and create content. So you’re not acting. I think you’re winning. But if you have to play somebody else to get eyeballs where you’re acting and that’s what gets the eyeballs, where do you won’t get the real eyeballs. I think that’s a conflict. That’s a little bit of a conflict. So everything to me is what happened is, for example, let’s just say i’m telling you got to live by these 10 rules. These are the 10 values and principles, Sean. You got a lot live by this. And I’m your dad and I’m telling you this. And I don’t live by that. Deep down inside I have conflicts and I have internal conflict, which is the worst kind of conflict. Forget about the conflict I have with you. I have internal conflict because when there’s internal conflict, everybody runs. You feels it right because you’re not living in aligned life. When I when I was creating content and I’m trying to be something I’m not, I’m like not only am I not enjoying it, but I’m just, it’s not also doing good. So I don’t care to be that. Listen, I can’t help myself. I love talking about politics. I’m going to keep doing that. I love capitalism. I’m going to keep doing that. I love entrepreneurship. I’m going to talk about that. I love, you know, interviewing people who are in certain industries that I have interest over. I’m going to keep pursuing that topic and then if there’s an audience for it, fantastic. If there’s not, it’s all good. But trying to compromise who you are on the big screen to get eyeballs versus. My biggest suggestion would be try to match these two together and then listen. It doesn’t mean you don’t get creative, you know, you want to get creative or have a board here. We’ll sit down and like, you know, I had a meeting with a couple of my content creators on talent and I’m sitting there talking to one and I’m saying, listen, why are you still talking about this? Well, because it’s what I stand for. There’s no way I cannot talk about this. I said listen, that’s nine months ago. People have moved on. It’s over. What other interests do you have? So I sat and had a 2 hour meeting with one of my content creators and I said, what bothers you? We wrote it down 20 things. What do you love? We wrote it down. What do you hate? We wrote it down. When you were a kid, what interest did you have? What do you know a lot about that I don’t know? Do you know a lot about the Yankees? Do you know a lot about the history of animals? Do you like lions? Did you grow up as a tell me what hair? What do you know about Middle League? Did you study theology? Do you know a lot about politics? Do you know a lot about what? The law? What do you know a lot about? Yesterday I’m sitting on my son, my 10 year old son tells me, says. Daddy, do you know that there’s certain sea bass that you eat that has a poison? That if you eat the sea bass, hot becomes cold and cold becomes hot that you can’t even have ice in your drinks because your mouth will feel like you’re on fire? I’m like, what are you talking about? He says, no, I’m telling you, like, this guy’s trying to pull a prank. So I go and I research and I’m like, let’s get us right. There’s a poison that had. What did you learn about this? I read it in a book. So my son loves reading the 5000 fact books, right? So if he wanted to create content, he can create a fact thing. He can do different things so you know, if you can figure out a way to improve yourself as a content creator, where talking to another guy yesterday who’s got 950,000 thousand subs and he’s been around that number for about six months, you know how frustrating it is to be at nine fifty? Very annoying because you’re kind of like, dude, I’m right there at 1000000 but I’m like, I’m annoyed, right? And he’s reached the limit of his content. He’s reached where his audience, they don’t have interest on the same things he talked about for the last two years. Because his content is limited based on life experiences, and he no longer has any life experiences to share. That’s new. They’ve heard all of it in 200 episodes. So now what does he do? He has to figure out a way because the audience is like, we got everything from you already. Now you’re trying to give us something. If he doesn’t adjust, he’s going to be a YouTube channel that got a million Subs based on the videos. He did not any more interest on anything new. It’s a very emotional place to be when you’re there because you’re no longer getting that attention. So it is an emotional job. It is tough, it is draining. Your insecurity is going to come out. You’re going to be going on streets where you feel like nobody cares anymore, you’re forgotten about. But if you constantly try to recreate yourself while still staying true to your values and principles, new audience will constantly show up.
Speaker 1 :
Actually, David, we thank you for your time today. Where can people go and learn more about what you’re doing? I want to recommend next 5 moves. Business Planning Workshop had a huge impact in our business, but social media as we end.
Speaker 1 :
I would say I just launched a new app called Minect. And the reason why I launched minect the app is because one time a lawyer and I had a 7 minute call together. He billed me for 30 minutes. I’m like why am I paying you for 30 minutes? I called him, I said I don’t want to pay for 30 minutes. It was a 7 minute call. He says pat. Minutes roll up. I said I want to pay you by the minute. This is no lawyer charges by the minute. And this was five years ago. I said if I ever come out with an app, it’s going to be an app where I can pay lawyers, influencers, doctors by the minute. So minute is, minute is. Do you have a minute to connect hence minute, right. So we just launched the app minute. If you want to have a 15 minute FaceTime with Andrew Tate, you can do it on minute. If you want to have a 15 minute FaceTime with me or just ask me a question, I respond on a video. Or Kiyosaki or Chass Palm and Terry or Rick Macy. Rick Massey was the tennis coach for the Williams sister. It doesn’t matter. So many experts are on there that can be found on minute. So I would, I would say if there’s any app to go to 1st month, we had 30.000 thousand downloads and a bunch of experts taking advantage of the questions and the live. So I would say go download the app minute and you’ll find us there. Thank you. Appreciate you. Thank you.
