I Taught a YouTuber How to Make $1 Billion

The Game w/ Alex Hormozi
30 Nov 202213:18

Summary

TLDRIn this video transcript, a YouTuber with a decade-long career and a monthly viewership of 200 million discusses strategies to grow his brand to a billion-dollar business. He explores potential business ventures, including a toy brand, an energy drink, and a car shop with a marketplace for car parts and custom mods. The conversation delves into monetization vehicles, brand sustainability, and the importance of creating exceptional products. The YouTuber also considers his future role in content creation, aiming to transition from a central figure to a mentor and overseer, allowing for scalability and longevity in his media business.

Takeaways

  • 😀 The YouTuber 'Unspeakable' has a significant following with 200 million views per month and is looking to expand his business to reach a billion-dollar valuation.
  • 📈 The YouTuber is considering various monetization strategies, including launching a toy brand, energy drink, or other consumable products, to diversify from his current merchandise sales.
  • 🚗 He is currently involved in a new business venture, '0 to 60', which is an automotive shop paired with content creation, and is attending SEMA in Vegas for this purpose.
  • 🔄 The YouTuber aims to build a company similar to Red Bull, leveraging his knowledge of content and platforms to market a consumable product to his target audience.
  • 👦 The primary audience of Unspeakable's channel is children aged 12 to 16, and he is considering creating a separate channel for new ventures to avoid diluting his brand.
  • 🤔 There is concern about the longevity of the 'Unspeakable' brand as it is closely tied to the YouTuber's personal identity, and he questions how sustainable it will be as he ages.
  • 🔄 The YouTuber is open to the idea of an energy drink but is unsure if it fits the Unspeakable audience, considering the age demographic and brand image.
  • 💡 He is interested in expanding his audience beyond just kids who enjoy 'ball pit balls and Nerf guns' to include skateboarders, snowboarders, and a broader demographic.
  • 📊 The discussion highlights the importance of identifying a product or service that aligns with the existing audience, content, and brand to ensure successful monetization.
  • 💼 The YouTuber is considering various business models, including franchising the car shop, creating a marketplace for car parts and custom mods, and scaling content production with co-hosts.
  • 💰 The potential for significant income from sponsorships and brand deals is noted, with a focus on leveraging the YouTuber's media presence and audience engagement for long-term profitability.

Q & A

  • What is the primary platform discussed in the script where the individual has been active for 10 years?

    -The primary platform discussed is YouTube, where the individual has been creating content for 10 years and has amassed a large following.

  • How many people does the script suggest watch the individual's videos on YouTube every month?

    -The script mentions that 200 million people watch his videos on YouTube every month.

  • What is the individual's aspiration for his business in terms of audience growth?

    -The individual aspires to grow his business to reach over a billion viewers, as suggested by the phrase 'how he's going to go to a billion plus'.

  • What is the idea proposed by 'air rack' for the channel's content?

    -The idea proposed by 'air rack' is to create a mini-series for the channel that involves talking with people with big audiences about how to think through opportunities for growth.

  • What is the challenge faced by many YouTubers and influencers as described in the script?

    -The challenge faced by many YouTubers and influencers is that they often try to replicate the success of others by selling similar products without fully considering the uniqueness of their own audience or the monetization potential of their opportunities.

  • What are the three main business vehicles mentioned in the script?

    -The three main business vehicles mentioned are the Unspeakable channel, the 0 to 60 automotive shop paired with content, and a third idea revolving around a consumable product that is not yet named.

  • What is the individual's goal in building a company similar to Red Bull?

    -The individual's goal is to leverage his knowledge of content and platforms to build a marketing company that sells a consumable product, targeting an audience primarily driven by the Unspeakable channel.

  • What is the individual's concern about the longevity of his 'Unspeakable' brand?

    -The individual is concerned about how long he can maintain the 'Unspeakable' brand, given that it revolves around his personal identity and he may not want to continue with it indefinitely as he ages.

  • What is the idea for a consumable product that the individual is considering but has not yet named?

    -The idea for the consumable product is not explicitly stated, but it is implied that it could be something similar to an energy drink, although the individual is unsure if it fits the Unspeakable audience.

  • What is the individual's view on the potential of an energy drink market?

    -The individual acknowledges that the energy drink market is saturated but believes that if the product is exceptional and receives the same attention to detail as his videos, it could still be successful.

  • What is the individual's strategy for scaling his content and audience?

    -The individual's strategy involves finding co-hosts to lead the content alongside him, allowing him to make fewer appearances and eventually phase out while maintaining the quality and frequency of the videos.

Outlines

00:00

🚀 YouTube Success and Business Expansion

The speaker discusses the success of a YouTuber who has been active for 10 years, with 200 million viewers monthly. The conversation revolves around the idea of expanding the YouTuber's business to reach a billion-dollar valuation. The speaker was inspired by a discussion with the YouTuber about creating a mini-series to discuss opportunities for growth. They explore various monetization strategies, including selling merchandise, energy drinks, or other products. The YouTuber is considering different business models, such as a toy brand or an energy drink, and the importance of aligning the product with the audience, primarily aged 12 to 16. The discussion also touches on the longevity of the YouTuber's brand and the challenges of being tied to a personal brand as they age.

05:02

🏎️ Car Vlogs and Diversifying YouTube Content

This paragraph delves into the speaker's history with car vlogs and how they initially gained traction on YouTube by focusing on car content. The speaker reflects on the evolution of YouTube from vlogs to challenges and the need to adapt their content strategy accordingly. The discussion highlights the importance of identifying and pursuing business opportunities that align with the speaker's passion for cars and content creation. The speaker also considers the potential of leveraging their existing audience for a car-related business, such as a car shop, and the challenges of scaling content production while maintaining quality.

10:03

📈 Media Business Insights and Future Planning

The final paragraph focuses on the media business model, emphasizing the profitability of media companies and the unique aspect where marketing and product fulfillment are intertwined. The speaker discusses the potential for scaling their income through Unspeakable sponsorships and the possibility of a brand deal with an energy drink company. The conversation also touches on the importance of finding co-hosts to take over content creation, allowing the speaker to phase out gradually. The speaker is encouraged to focus on what they excel at, such as content creation and marketing, and to consider the long-term viability of their business ventures.

Mindmap

Keywords

💡YouTube

YouTube is a video-sharing platform where users can upload, share, and view content. In the video's context, it is the primary medium through which the subject has built a following and generates revenue. The script mentions that the individual has been on YouTube for 10 years, indicating the platform's significance in their business model.

💡Monetization

Monetization refers to the process of generating revenue from a digital asset or service. In the script, the discussion revolves around finding the best way to monetize the YouTuber's audience, whether through merchandise, a toy brand, or an energy drink, showcasing the importance of effective monetization strategies in the digital age.

💡Influencer

An influencer is an individual who has the power to affect the purchasing decisions of others because of their authority or fame in a specific area. The video script discusses how influencers can sometimes mimic each other's monetization strategies, which may not always be effective.

💡Content Creation

Content creation is the process of making and sharing digital media content, such as videos, blogs, podcasts, etc. The script emphasizes the importance of content creation in building an audience and mentions the YouTuber's experience in creating car-related content, which was the initial focus of their channel.

💡Branding

Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product or service from others. The script discusses the YouTuber's brand 'Unspeakable' and how it is tied to their personal identity, which is a common practice in influencer marketing.

💡SEMA

SEMA stands for the Specialty Equipment Market Association, which organizes an annual trade show for the automotive aftermarket industry. The script mentions SEMA in the context of the YouTuber's new business venture, an automotive shop, indicating a shift in their content and business focus.

💡Consumable Product

A consumable product is a good that is used up and needs to be replaced after use. The script discusses the idea of creating a consumable product as a potential business opportunity, suggesting that it could be a new revenue stream for the YouTuber.

💡Market Saturation

Market saturation occurs when a market becomes flooded with similar products or services, making it difficult for new entrants to compete. The script mentions the energy drink market as being saturated, which implies that entering this market would be challenging.

💡Franchise

A franchise is a business model where a company licenses its business methods, systems, and trademarks to another party. The script briefly touches on the idea of the car shop business potentially becoming a franchise, indicating a long-term growth strategy.

💡Co-Host

A co-host is a person who shares hosting duties with another on a show, program, or event. The script discusses the idea of bringing co-hosts into the YouTuber's channel to help with content creation and to eventually phase out the YouTuber's constant presence, allowing for scalability.

💡Media Business

A media business involves the production, distribution, or management of media content. The script highlights the profitability of media businesses, especially when the creator is skilled in both content creation and marketing, as is the case with the YouTuber.

Highlights

YouTuber with 200 million monthly viewers plans to expand their business to reach a billion plus.

Discussion of a mini-series idea for the channel, exploring opportunities with influencers.

The challenge of monetizing opportunities and avoiding under-monetization.

Introduction of three main business vehicles: Unspeakable, 0 to 60, and a consumable product.

The desire to build a company similar to Red Bull, leveraging content and marketing expertise.

The Unspeakable channel primarily targets kids aged 12 to 16.

Plans to launch a toy brand and the potential of an energy drink idea.

Concerns about the longevity of the Unspeakable brand and its association with the creator's personal brand.

The importance of product quality and the creator's dedication to creating exceptional products.

The potential of a car shop business and its integration with content creation.

The idea of expanding the audience beyond just kids to include skateboarders and snowboarders.

The strategy of using the existing media audience to find a single product for monetization.

The potential for scaling content creation by introducing co-hosts and reducing the creator's on-screen presence.

The comparison of media businesses to Warren Buffett's profitable newspaper investments.

The concept of marketing as fulfillment in the media business, unique to the industry.

The plan to potentially phase out the creator's active role in content creation over the next few years.

The discussion of brand deals and sponsorships as a significant source of income.

The potential for a software game as a monetization vehicle, despite the challenges of creating a quality product.

The importance of finding a balance between scaling the business and maintaining the creator's passion for content creation.

Transcripts

play00:00

this is unspeakable he's been doing

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YouTube for 10 years and has 200 million

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people who watch his videos every single

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month we're gonna break down his

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business and how he's going to go to a

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billion plus let's dive in I have so

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many puns that I want to say like

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speechless unspeakable I don't I won't I

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won't do any of those but I want to this

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was an idea that air rack because he and

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I were talking he's like dude you should

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do this kind of like a mini series for

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your channel talk with people with big

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audiences like how would you think

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through what opportunity to go after it

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so I feel like so many people are just

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like lost like what do I just like yeah

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what do I sell there's so many options

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like I could sell energy drink I could

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sell germax I could sell these

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conference tables like it's literally

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endless yeah you could launch umbrellas

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or you could launch Kleenex boxes that

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are unspeakable unblowable

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um one down and make money and so the

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problem is that a lot of I feel like

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YouTubers influencers see one influencer

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do something make some money and then

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think oh I'll do the same thing and then

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end up with a massively under monetized

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like opportunity okay we've got the

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market here we've got the brand here and

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then we've got different monetization

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Vehicles like what is the thing that

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kind of overlaps all three that works

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really well so there's like three kind

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of vehicles so you have unspeakable the

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main thing the biggest thing it's like

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driving all the revenue yeah and then

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you have 0 to 60 which is a new business

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that's actually why I'm here in Vegas

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for SEMA it's an automotive shop paired

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with content and then the third idea

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revolved around a consumable product I

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don't I won't say what we want to call

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it yet because the names are still kind

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of in the air unspeakable but it might

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be it's not unspeakable but basically

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what we I really want to build a company

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similar to what Red Bull has because I

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know so much about content and I know so

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much about you know all these platforms

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I could build a marketing company sell a

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consumable whatever fits that like

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target audience that I'm trying to

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Target but and that's all primarily

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driven off the Unspeakable channel right

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uh I don't know I I probably want to do

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like a separate channel for it just

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because unspeakables kind of got its own

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thing like it's for kids you know what's

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the age uh I would say a large majority

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are like 12 to 16. so right now I sell

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merch for unspeakable but my idea was to

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kind of launch like a toy brand

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um and just see where we can go with

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that we have talked about the energy

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drink idea right yeah so that's what I

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love but that would be that third idea I

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don't know I just don't I don't feel

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like it would fit the Unspeakable

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audience maybe it would maybe yeah but

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um they're just a bunch of kids and I

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just don't you know like I wouldn't call

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it unspeakable yeah if I was to launch a

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drink no for sure well it doesn't have

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to be exactly what I mean yeah yeah but

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the other thing that worries me is like

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so I'm unspeakable right the brand

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revolves around me the question is how

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long

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can I be unspeakable yeah like you know

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right right now I'm almost 25 years old

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when I'm 13 years you know when I'm when

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I'm 35 am I still going to be wanting to

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do that

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probably not

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um like I've tied myself to unspeakable

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for the past 10 years so I can't really

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get rid of it I can't like hire some

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other people to come in and just kind of

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like change who I am you know that's

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like if the rock was like oh I don't

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want to be the rock anymore so I'm gonna

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hire this guy like it just doesn't work

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you know like I love the energy drink

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for like the crazy all the stuff that

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you're you know filling your house with

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sand today I'm gonna be feeling my

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entire Island house with sand Maybe I'm

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Wrong right yeah it could it could fit

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the Unspeakable audience but I want it

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to like expand I want it to go to like

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you know like skateboarders and

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snowboarders and like I I don't want

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just like kids that love ball pit balls

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and Nerf guns to drink my energy drink

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you know what I mean yeah I see the

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original distribution base it's just

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like the launch pad and the only thing

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that keeps it going is new distribution

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and the product itself being good enough

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that people who are in the first ring

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tell their friends and like that's the

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part that most people [ __ ] up they're

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like I'll just slap my name on this

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thing it's white label I completely

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agree I just know that I'm not going to

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want to film

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videos for the next you know 30 years of

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my life like there's already plenty of

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days where I dread videos I still love

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them like they're so they're so much fun

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but I I know in like I know when I'm 36

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years old I'm not gonna be like oh yeah

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I'm so ready to you know fill my house

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with balls and yeah let's put on let's

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put all the sand in I don't know if I

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could see me doing it for that long but

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when you start doing the car stuff isn't

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that still gonna be video too

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yeah but uh we're actually looking for

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like co-hosts so I just want to be the

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creative brains of the channel just kind

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of like help Direction can we segue real

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quick into the car shop thing yeah is

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the primary motivator for the car shop

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making money eventually franchise is it

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to have like lots of locations or is it

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just for content to have a spot to make

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content so there's like three branches

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to the business like you have the shop

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uh you have the content side and then

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you would have the marketplace side

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which doesn't exist right now but we're

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working on building it like Parts yeah

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so like parts custom mods and things

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like that yeah that I see being the

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biggest part of the business I have a

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lot of people that follow me that are

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actually interested in cars because when

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I first started my unspeakable Channel

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like

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six years ago older now all I did was

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car content oh yeah so I started doing

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car Vlogs I had like a GTR I went to

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like car meets I like went on rallies

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because uh at the time I just did daily

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Vlogs I was just like yo guys this is my

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life that was what the Unspeakable

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channel was like six or seven years ago

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and then you started seeing what was

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hitting and the crazier [ __ ] you did

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yeah yeah because YouTube like six years

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ago was like Vlogs like Casey neistat

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was like the biggest YouTuber and he

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literally just walked around New York

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City making really good entertaining

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videos but it was just a day of his life

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yeah that's what YouTube was you had a

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bunch of other creators like Mr Beast

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and other guys come in and they're like

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okay this is the new YouTube this is

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challenges yeah where people are like

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all right survival this survive on this

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so I was like I need to like change that

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so that's where everything else came in

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and so if we're optimizing around how do

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we make you the most money short and

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long term right and really more so long

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term it's clear that you love this one

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like I mean just from like your energy

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when we're talking about it yeah and

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this is just like your cash cow

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perfect world is this didn't start just

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from a business perspective yeah is that

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you only had unspeakable you're making a

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good amount of money from unspeakable

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and AdSense every month of all the

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things I'm going to do I'm going to

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leverage the existing massive media

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audience that I have and find one thing

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that they can all buy and then that

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would be all that you would do then we

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have a phase out plan for you getting

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out of so it's like okay next six months

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or next 12 months you're co-hosting one

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to three people who are with you in the

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shows as regulars and then you just do

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one of these and then they're leading at

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most of it and you're making a couple

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appearances and then

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you fall off the table Yeah Yeah

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unspeakable could transition to

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something like

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Red Bull when you think of Red Bull you

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don't think of one person like you just

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think of like crazy anything crazy yeah

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right I still think that an energy drink

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is not bad I feel like the energy drinks

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Market is so saturated totally if you

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put the same amount of attention to

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making the product the way you do videos

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where it's like how does it taste in the

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beginning how does the aftertaste like

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if you like if you were to break it down

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at that micro level of really making an

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exceptional product you're excellent at

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what you do so like that character trait

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will carry over you know what I mean if

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you apply it to this so if we're

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analyzing opportunity it's number of

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units sold times gross profit potential

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per unit divided by competitive mode

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number of people times the amount of

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money made so like for me we do deals

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with a very tiny percentage of people

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but the amount of money that I make on a

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deal is significantly higher and so for

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me that cross-section even though it's

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itty bitty bitty still makes it worth it

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for me right because for that small

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person helping them go from 10 to 100

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million is very meaningful yeah and so I

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can help a tiny amount of people a lot

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and then help everyone else for free

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and so we just have to figure out what

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that slice is

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what do you like this so you've got the

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car thing you dig that what else do you

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dig like what is your what are your what

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do your people know about you

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I mean just

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having fun with friends and just making

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videos it's just kind of the whole vibe

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of like yeah so you get money from

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AdSense and whatnot but do you have any

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other brand sponsorship deals like

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Integrations into videos yeah okay so

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which so what are those advertisers Nerf

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Legos Elmer's Glue we've done some with

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WWE okay Five Hour Energy pop Pockets

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honey like the website yeah yeah a bunch

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of like small mobile game companies do

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they reach out to you do you reach out

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to them they all reach out to us really

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of opportunity Vehicles the game would

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be by far number one it would hit the

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most amount of the audience you'd make

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the highest gross profit per User it's

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operationally from a fulfillment

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standpoint the easiest to handle the big

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hard part is like building a software

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game that's actually really good I've

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seen so many YouTubers make games and

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doesn't matter the following that they

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have like if the game sucks the game

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sucks the game sucks the game sucks like

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I like the energy drink angle the only

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issue with these though is that they're

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cash eaters

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which sucks

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what I'm gonna say you may or may not

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like so just take it for for what it is

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how can you do more of what we're

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currently doing

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because like of the plays like I like

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that one a lot High likelihood of

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success right within your wheelhouse

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like there's only a couple tweaks it's

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like okay find the other co-hosts like

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if you're like well that's kind of hard

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it's like well so is building a [ __ ]

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software company like it's all hard

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right it's all hard but like this one

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you know like all the other variables

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you've got down I feel like doubling

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down on the media might be the play you

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could probably like tomorrow 5x how much

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money you make just by building out the

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sponsorship bar that's all that you have

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to do I kind of limit my scale on

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unspeakable because I have to be in all

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the videos right yeah I have to figure

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out who my co-hosts are and start

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sprinkling them in seeing how the

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audience reacts to them finding one or

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two people that are three people that

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they really like and then rotating them

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in and to the point where ideally and

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speakers will be a group two or three

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people that are kind of like hosting and

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leading things along playing off each

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other characters right yeah so like

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scaling the content that way because I

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think the growth for the channel could

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be so much faster we put out 52 videos a

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year right we could put out 100

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that are all the same quality of those

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52 but it's just limits all my time

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because you know I have to sleep

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eventually but when someone pays you a

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million bucks or whatever to do a year

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of sponsorships it's like that goes

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straight to your bottom line that is not

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common like which is why media

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businesses are wonderful business like

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Warren Buffett had all of these

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newspapers because it's media it's one

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of the most profitable businesses on the

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planet and you're good at it which is

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hard what's the saying where it's like I

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don't know who said this but it was like

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if you're good at sales you can you know

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make a million five million 10 million

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but if you're good at marketing yeah you

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can make billions right

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um well there's Instagram from Naval

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ravacon which is you only sell because

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you don't know how to Market and you

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Landmark is you know how to build a

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product yeah and what's cool about your

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product is that it is both marketing and

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product it's one of the unique things

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about the media business is that how you

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Market the thing that you have is also

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how you fulfill that thing that's only a

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media thing like no other businesses

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like that where the marketing is the

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Fulfillment if we were to plan this out

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and say hey if you could Forex your

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income in the next four years would you

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do it just from the Unspeakable income

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well if the answer is yes then it's like

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well then we could reverse engineer that

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like that's super doable I would bet

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that in that four-year span there is an

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opportunity like somebody who approaches

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you who's got another energy drink brand

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is like we already have funding Etc and

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we just want to face for it or we want a

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brand to associate with and then you can

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do a brand deal with that company but

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you do it for Equity litmus test number

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one is like you love the product the

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road path for unspeakable now feels

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pretty clear to me how do you feel about

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that no I like it and then you also have

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this car thing

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even here building the the car parts

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thing like that'll definitely make money

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I like I like that as a business model

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and if unspeakable didn't exist I would

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say yeah just do that you thought about

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it before you built it you were like I'm

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gonna build the content arm I'm going to

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monetize over here and sure we'll make

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some money at the shop whatever if

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that's a complete business model in my

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mind and it makes sense because it's

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fully integrated into the videos it's

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like hey we just put this custom mod

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thing on the lambo by the way you guys

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can check it out I've got 20 available

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first 20 can go get it on the shop side

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I already have a partner so to kind of

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run and operate the whole shop the shop

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okay yeah the shop is what is going to

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open first okay the content it's kind of

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like whenever we get a piece of content

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whenever we get access to the new

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Mercedes that came out you know my main

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role is just to kind of oversee like

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Direction and making sure they're

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creative is you know on point the

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marketplace doesn't even exist yet if

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you were to do the marketplace it would

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take the same amount of energy and

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attention and effort as scaling

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unspeakable likelihood of achievement

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lower than unspeakable yep upside about

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the same you already have a partner

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who's running the Ops that's good I

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think all you need is just have somebody

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who's Junior running the content who

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wants to like Mentor under you which you

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have I'm sure can find somebody who

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would just like live with you and read

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this stuff this is the main thing this

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is the baby this is what you're the best

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at I really want the best in the world

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at do more of that and then the only

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thing that you're going to attribute

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over here you're dropping the

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marketplace you have the partner to run

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the day-to-day Ops is just somebody to

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run the content for the car shop and

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then you can sell sponsorships and

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whatnot that'll go through there which

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is actually kind of nice because then

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this one starts to merge with the path

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of this one so that your attention will

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start to consolidate in terms of like

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how you make money and how you think

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through things but now it feels really

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simple yeah

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feel better easy enough yeah well both

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all of these are hard this one has so

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few unknowns based on what you already

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have in the experience congrats so on

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everything thank you so much yeah he's

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right

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