This $50M/Yr Side Hustle Is On Track To Make $1 Billion By 2030

Summary

The podcast episode features a discussion on innovative business strategies, highlighting Craig Fuller's venture into the magazine industry with his company FreightWaves. The episode delves into Fuller's acquisition of niche magazines and his unique approach to leveraging media assets to create a subscription-based data business. It also touches on the potential of AI in transforming various industries, including sports broadcasting with AI cameras, and the impact of AI advancements on existing companies. The conversation offers insights into the dynamic intersection of media, technology, and entrepreneurship.

Takeaways

• 📈 Craig Fuller, the entrepreneur behind Freightwaves, has ventured into the media business by acquiring 44 different magazines focused on expensive hobbies like flying, boating, and classic toy trains.
• 🛫 He purchased a $7 million, 300-acre plot in Tennessee to create a flying community, using the magazine to sell plots of land, which has turned out to be a successful venture.
• 💰 Fuller's side business, now under the brand FirCrown, is on track to do roughly $50 million in revenue this year with an 18% EBITDA margin, and he predicts it could reach $1 billion in revenue by 2030.
• 🔍 The strategy involves acquiring old magazine titles with a 'negative CAC' model where customers pay for the magazine, which is then used to acquire customers for commerce products.
• 🏠 In the flying community, Fuller leveraged the magazine to sell homes around an airstrip, with each home selling for around two million dollars, demonstrating a shift from media revenue to high-value product sales.
• 🎮 The New York Times has successfully diversified into gaming, with digital game subscriptions contributing significantly to their annual revenue, surpassing $1 billion for the first time.
• 📰 The traditional print business model is being adapted by emphasizing digital products and treating print as a supplementary product, adding a perception of longevity to the brand.
• 🤖 AI technology is revolutionizing various industries, with applications ranging from smart cameras in sports for live streaming and highlights to AI tutoring groups for collaborative learning.
• 🏆 Companies that integrate AI into their workflow to enhance existing products, rather than relying solely on AI technology, are better positioned to avoid obsolescence as AI models improve.
• 💡 The discussion highlights the importance of being intentional with spending, especially as wealth increases, and the potential downsides of owning multiple homes as 'nice problems'.
• 🌐 The potential for AI to create value in established companies is significant, suggesting that investment in AI integration could be more fruitful than speculation on AI startups.

Q & A

Who is Craig Fuller and what is his connection to Freightwaves?

Craig Fuller is an entrepreneur who is associated with Freightwaves, a data product company for freight brokers. He is recognized for his role in the company and has made significant contributions to its growth and success.

What did Craig Fuller acquire in addition to his main business at Freightwaves?

Craig Fuller acquired Flying Magazine, a publication catering to aviation enthusiasts, and a 300-acre plot of land in Tennessee, which he turned into a flying club with residential plots around an airplane strip and hangar.

What is unique about the business model that Craig Fuller has adopted for his acquired magazines?

Craig Fuller uses a model where the magazines themselves are the customer acquisition tool, with readers paying for the content. This 'negative customer acquisition cost' (CAC) strategy allows him to bootstrap other businesses to sell to this audience.

What is the current status of Craig Fuller's side business involving the magazines?

Craig Fuller's side business, under the brand FirCrown, has grown to include 44 different magazines and is projected to reach $50 million in revenue with an 18% EBITDA margin. He aims to increase this to a billion dollars in revenue by 2030.

How does the Flying Magazine business model differ from traditional media businesses?

Instead of relying solely on media revenue, Flying Magazine uses the publication to sell high-value products like real estate in flying communities, essentially using the media as a customer acquisition channel for more lucrative businesses.

What is the significance of the land acquisition in Chattanooga for Craig Fuller's business?

The land acquisition in Chattanooga is significant as it represents the physical manifestation of the Flying Magazine's vision, creating an air park community where residents can own homes around an airplane strip, enhancing the value proposition of the magazine.

How does the revenue model of the New York Times' gaming products compare to its traditional news content?

The New York Times' gaming products, such as Wordle and crossword puzzles, have become a significant revenue driver, with digital-only subscribers contributing to over $289 million in Q4 revenue, surpassing the time spent on news content.

What is the potential business opportunity presented by the rise of AI in various industries?

The rise of AI presents an opportunity for companies to improve their products and services, but also poses a risk to those who rely on outdated technology. It's a chance for companies to integrate AI advancements into their workflows and offerings to stay competitive.

What is the concept behind the AI camera system used in sports like basketball and soccer?

The AI camera system is a smart camera that tracks the ball and players during a game, ensuring all action is captured without the need for manual operation. It can live stream, upload footage to the cloud, and even attempt to create highlights, making it a valuable tool for sports recording and analysis.

How does the AI camera system impact the future of sports recording and broadcasting?

The AI camera system is expected to become a standard feature in sports venues, providing high-quality, automated recording and broadcasting solutions. This could lead to a significant shift in how sports events are captured and shared, making it more accessible for viewers and players alike.

What is the potential impact of AI advancements on companies that rely on proprietary AI models?

Companies that rely on proprietary AI models may face challenges if their models do not keep pace with advancements in the field. Open AI's continuous improvements could render some proprietary models obsolete, making it crucial for these companies to innovate and adapt.