In short
Podcast Summary: My First Million - Episode 690
Episode Title
How a guy turned 3 YouTube Channels into $3 Billion Dollars
Hosts
- Sam Parr: [@theSamParr](https://x.com/theSamParr)
- Shaan Puri: [@ShaanVP](https://x.com/ShaanVP)
Episode Overview In this episode, Sam Parr and Shaan Puri delve into the remarkable story of how Rene, an entrepreneur, capitalized on the children's YouTube market to create a $3 billion company through strategic acquisitions.
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Key Discussion Points
- Introduction to the YouTube Rollup
- They discuss the leading children's YouTube channels, notably Cocomelon and Blippi.
- Cocomelon is highlighted for its simplistic yet engaging nursery rhyme content, started by a couple who noticed a gap in quality children’s entertainment on YouTube.
- The Origin of Moonbug Entertainment
- Rene, with a background at Maker Studios and Disney, identified potential in children's YouTube channels overlooked by traditional media companies.
- He and a co-founder decided to roll up several of these high-performing channels due to their significant viewership and untapped monetization potential.
- Investment and Acquisition Strategy
- They raised $150 million to begin acquiring channels, focusing on those with high views and recognizable intellectual property (IP).
- Key acquisitions included:
- Cocomelon for $103 million
- Blippi for $70 million
- Little Baby Bum for $65 million
- Within four years, they were able to sell the company for $3 billion to Candle, a firm backed by Blackstone.
- Financial Success Metrics
- Moonbug reported revenue growth from $20 million to $230 million in just four years, with significant EBITDA.
- The founders made substantial profits, with Rene and his co-founder each clearing around $300 million.
- Monetization Strategies
- The company expanded beyond YouTube, leveraging its IP for merchandise, streaming content on platforms like Netflix, and live shows (e.g., Blippi the Musical).
- They adopted a Disney-like strategy of monetizing their content across various channels.
- Key Takeaways on Entrepreneurship
- The discussion highlights the importance of recognizing and acting on market gaps.
- It underscores the value of leveraging existing content and brands to scale rapidly.
- The episode emphasizes strategic acquisitions as a viable business growth strategy.
- Additional Topics
- The hosts briefly touch on their personal ventures and business philosophies.
- They share insights on the importance of in-person collaboration and the shift many are feeling towards remote work.
Notable Quotes
- "The hard part was picking up the gold on the ground. These ideas are just sitting there and someone taking them seriously is key."
- "You have to commit to a path to make it work."
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Links & Resources
- Cocomelon: [Watch on YouTube](https://www.youtube.com/watch?v=dlnJ9attCOc)
- Blippi: [Watch on YouTube](https://www.youtube.com/channel/UC5PYHgAzJ1wLEidB58SK6Xw)
- Company information can be found on [Companies House](https://www.gov.uk/government/organisations/companies-house).
- For more insights, check out [RollUpEurope](https://rollupeurope.beehiiv.com/).
Conclusion This episode provides an insightful look into how a strategic approach to content acquisition can lead to massive financial success in the digital age. The hosts blend humor and practical business insights, making it engaging for entrepreneurs and aspiring content creators alike.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00I gotta tell you about a YouTube story. Okay, so this is a story of how a guy found an underrated opportunity in the YouTube market and turned it into$3 billion.
0:19So there's this guy, Rene, and Rene discovers an opportunity. Sam, do you know what the most viewed YouTube channel is? Most views on YouTube, do you know? The obvious answer would be Mr. Beast. The second. Mr. Beast? Number 13? Why are we talking about number 13? I'm talking about number one, Sam. Okay. Do I do the bro move where I under guess so you quit? No. I'm going to say some type of Indian thing. Probably like an Indian. Number one is T-Series. It's Indian music. So it's just like all the famous Bollywood songs. But do you know what number two is? I don't. No idea. Cocomelon. Cocomelon.
0:55Yeah. God. Does your kid watch Cocomelon or is too young maybe? I refuse to let her watch Cocomelon because it's crack. It's baby crack. So by the way, number two, number five, number six, number seven, those are all just like Cocomelon. They're basically kids' entertainment channels. By the way, a couple of them are like Russian and Ukrainian in the top 10 of all views. So Cocomelon was this channel that was actually started back in 2006, 2007. seven, uh, this dad who was like an animator slash like filmmaker, um, and his wife, who I think was like a cartoonist for children's books, they noticed there's like, Oh, there's like nothing good on YouTube for kids.
1:38And so they start creating very simple animations for, um, for kids on YouTube, just like literally there. If you go look, go to their channel and you click pop, uh, click oldest and the very old, the oldest one, I think it's like 18 years ago is a video. that's like the ABC song. It's a 40 second video. And if you go look at all the old ones, it doesn't look like Coca-Mellon today. There's no character. There's no like kid, JJ. There's no like crazy cracked out animations. There's nothing. There's just like, literally they're just doing nursery rhymes. So it's like ABC, Twinkle, Twinkle, Little Star, Baba, Black Sheep, all the hits.
2:14And so those start getting a lot of views. And for like 10 plus years, it's just them doing animations, no sponsors, no um no merchandise no gimmicks no nothing they're just living off of youtube ad revenue they got a small team they they get about 20 people 10 plus years wow so um that's a grind they did that there's another story uh blippy i don't know if you're familiar with blippy blippy is sort of like the guy who sings but it's like many guys now yeah they've switched out the character but basically it's a dude who wears a blue suit with orange overalls and a bow tie and And he's like, it's me, Blippi, right?
2:53And he's like, basically, he just goes to like abandoned, like not abandoned, I shouldn't say that. Like kids like play places when they're closed and he goes and he plays in them and he like films himself playing in the play place and he teaches you things or whatever. Slightly educational, slightly fun channel. Wait, were you going to say Blippi is recording at abandoned places? Like abandoned warehouses? Abandoned play places, like there's no one there, but they're not abandoned. I thought you'd be like, today's special word is tetanus. like you do like can you say rabid so blippy this guy basically sees that his i think his niece or nephew or something like that is watching these like really low quality uh videos of tractors like you know like kids love trucks and tractors he's like oh man like my kid loves this my nephew loves this tractor video and so he goes and he makes one if you get the same thing go to little Blippi channel, you click oldest, you'll see it's a video of a tractor going through a field.
3:50And his next one is like another tractor video. And he's on green screen with it. He's not even near a tractor. He just green screens himself on top of it. And so he starts creating this. He starts getting a lot of views. And so what happens is there's this guy, Rene. And what Rene does is he decides to create a PE rollup, but around these kids' YouTube channels. And the opportunity is that Rene worked at a company called Maker Studios. Do you remember Maker? Yeah, it kind of ended up being like they were the hottest thing going and they raised money at billions of dollars of valuation. And it didn't exactly live up to that.
4:21But it kind of created like it was like so innovative that a lot of the employees were went and did amazing stuff. Is that right? Kind of, yeah. So basically, they were early on to the YouTube professionalization. And what they were trying to do was they created what's called an MCN, a multi-channel network. And, you know, what does that mean? It's sort of like an agency, like a CAA for YouTube talent. So for some of them, they would own the channels and then the talent would operate them for others. The talent own their own channel and they would do the brand deals. But like instead of you, the one YouTuber negotiating your brand deals, they would go to, you know, whoever Coca-Cola and negotiate it for all 30 channels on their network.
4:57Right. So it's like creating a, like a television channel, but on YouTube. And this idea sounded really good. It just wasn't a really good idea. It's been tried and failed many, many times. Right. It was one of these startups you have to be very wary of because it's reasoning by analogy. So if you ever hear like Elon talk about like reasoning from first principles, which is basically you take like solid truths, like logic, and you build one logic block on top of another, like a stack of Legos that all click together in a chain of logic. Reasoning by analogy is to say, yeah, we're CAA, but for YouTube.
5:33and you don't really understand the underlying assumptions about how YouTube works and how Hollywood works. It's totally different. There actually doesn't need to be a CAA for YouTube or it wouldn't be that valuable if you were the CAA of YouTube. But it raised money and it was a very hyped thing at the time. They actually ended up with a good exit to Disney. I think Disney bought them for$709 million, something like a big exit. But it was like kind of a failed company and it failed inside of Disney. But it like could be an okay business, just not a good business that requires hundreds of millions.
6:03Yeah, not hundreds of millions in funding good business. There are plenty of these like agents, creator agencies on TikTok and Twitch that are like bootstrapped that'll do like a few million dollars a year of profit. Good for them. So what happens? So Rene, he's at Maker. He didn't start it, but he works there. And when Disney acquires it, he goes to Disney and he becomes like the head of like digital content internationally. So I'm like, you know, some title there. And what he realizes, he says, here's the opportunity. He goes, when I was at Maker, I realized that kids' YouTube videos were getting tons of views, but they were overlooked by traditional PE and media companies because basically they look too janky to be taken seriously.
6:38He said, of the top 100 most viewed children's bands online, none of them were owned by big studios. So he's at Disney. He's like, look at the top 100 kids' channels on YouTube. None of them are owned by Disney or Pixar or any of the major studios. And his co-founder, who was at Paramount at the time, goes, yeah, also none of those, none of those YouTube channels that are getting all these views have streaming deals because the streamers say we need the content to be exclusive. And the YouTubers are like exclusive. I mean, YouTube is my bread and butter. Why would I take the content off of YouTube?
7:11So they were just like, wow, we're not doing a deal. So they get together and they started stack ranking and they basically made a simple criteria. So they said, I want something that has high views and has like a quality IP. So like it has a brand name, it has a character that people might might associate and love something you might buy a plush doll of someday. Like you'll buy a toy of this, this thing. He goes, if they have both of those, I'm interested. And straight out of the gate, they've raised about$150 million. And they raise all this money saying we're going to do this roll up and they do three deals.
7:45So shout out to the, the roll up Europe beehive newsletter, because he had the details on this. Nobody ever all the traditional media, they only have the surface level details. Some guy on Beehive has like a really detailed breakdown of this because these companies are based in Europe. And so they're all listed in company's house. So he was able to like, go see literally how much did the CEO make? And the headline of this story is they take that$150 million, they start buying up these channels. And four years later, they exit this to Blackstone for 3 billion. What? Technically, they exit to Candle.
8:19Candle's backed by Blackstone. That's where Candle got the money. but they sell for$3 billion. How much revenue was it making? So let me break it down. They go and they buy Cocomelon for$103 million, 92 million upfront, 11 million contingent. Okay, so 100 million on Cocomelon, 70 million on Blippi, of which only 26 million was upfront, 45 million was contingent. And then Little Baby Bum was the third big one that they bought. And Little Baby Bum had also nursery rhymes and whatnot. And they did that for 65 million. So that's, that basically, and they, at that point, they had raised more money of equity and debt.
8:56And so they raised about 400 million in total equity and debt to create the 3 billion exit. So like a 10X return roughly on the capital that they use to buy these channels. And in four years, literally through M &A, they were able to create$3 billion of value. Here's what they did. So here's the revenue. So their company's called, the holding company is called Moonbug. So Moonbug, basically 2019 is sort of like a$20 million a year business. 2020, it's about a$50 million a year business. Then it goes to$150 million. Then it goes to$230 million with$100 million in EBITDA before they got taken out.
9:30Holy shit. It was doing$100 million in EBITDA in only four years? Exactly. And the founders of this thing, so each of them cleared. Rene makes$300 million for this four years of work. His co-founder makes$300 million. The head of M &A made$60 million, and the CFO made like$20 or$30 million in the roll-up, and the rest went to the investors. When they bought these companies, did they need to be great at operating YouTube, or was the—they were so good at incentivizing Blippi or whatever that they're like, just keep going. You're doing fine. You get this much of your payout if you hit this and that.
10:08So these businesses are simple and complex at the same time. What do I mean by that? One, a lot of the views are just going to come on the back catalog. So, you know, it's still Wheels on the Bus. It's Twinkle, Twinkle, Little Star that is racking up views every single month. You don't have to do anything on those videos. I'm not sure if you're saying Wheels on the Bus as an analogy of running a company or you're literally referring to the song, Wheels on the Bus. Yeah, the song. And so the back catalog gets a lot of views. What they did, which is smart. So Cocomelon wasn't originally called Cocomelon.
10:39uh it was originally called check gate which sounds like a baggage company dude it reminds me it sounds like the cult remember the uh the cult that where they all kill themselves it was like heaven's gate check gate okay so yeah not familiar with that not i need to brush up on my cults yeah um so check gate and then they rebranded to abc kid tv which if you watch the videos it'll still start abc kid tv and then it starts the song uh then they rebranded to cocomelon but that's like in 2017 or something like that like it was like a long time it was like 10 plus years into the company that they rebranded and that's when they introduced jj and the characters and the colors and then so basically that's where you get the characters same thing with blippy they had blippy they take out the main guy they replace him with a like a rotate like a like an actor basically because he's ready to move on and um they also introduced mika this like diverse character who could come in and like appeal to a wider set of audience.
11:34So they're doing like moves in the content. Yes. But the other moves they did was they got it on the streamers. So they got it onto Netflix. It's now the most watched kids thing on Netflix is Cocomelon. Then they go into the toys business and they're doing, you know, millions and millions in toys and licensing. And so, you know, you, they built out the full like suite of business basically around these, they do Blippi the musical. It's a live tour that's going around the nation and that's, you know, selling out, you know, basically tickets, me and my family, we all went and this, you know, there's not an empty seat in the house.
12:05And so like, these things are like, they turned them into, you know, rocking and rolling businesses, they kind of use the Disney playbook, right, which is like, create massively loved IP, and then monetize it through everything, except for they just didn't do theme parks. Have you seen on South Park, where Mickey Mouse is, you know, comes off as this nice guy, but behind the scenes, he's trying to convince the Jonah brothers that they better wear their virginity rings or their chastity rings because they're wanting to like have sex and he's like you better put that fucking ring back on first of all incredible impression yeah how did you feel three seconds before you did that before you committed you know uh there is no when you're taking a risk you cannot paint a world where it's only upside you have to accept that there is potentially downside.
12:56These are the things I tell myself before I'm ever taking a big risk. And I thought about that. I'm a risk taker. Yeah, I'm a risk taker. I do impromptu impressions sometimes that I've never done before. But that's what I imagined Rene to be. He's like, listen, Blippi, I need you to put that fucking tie on and I need you to get out there and dance. When Blippi's asking for a raise, what's the hard part about this business? Is it convincing people to sell? No, I don't think that was that hard because they had a huge check and the huge check helps. You know, like I think at the time, I think Cocomelon had done like 80 million in revenue or something like that, that year.
13:38And then they bought them for 100. So they bought them, you know, probably like at a 5x multiple or 6x multiple of profits or something like that. I don't know exactly the multiple, but I'm guessing they offered them like, hey, here's a bunch of money that you could have. and like you've been running for like, you know, years doing this on this treadmill. And like, what if we could help? And what if we could take you to the next level? You don't know those people? Oh, I golf with the guy from Netflix. Oh, I used to be at Paramount. Oh, I was at Disney. I can help you get to the next level. Break down doors that didn't seem like they were open.
14:07The hard part was picking up the gold on the ground. So this happens a lot in business. It's like these ideas are just sitting on the ground. And it's the hard part is somebody taking a very simple idea very seriously. So to say, yeah, you know that silly like nursery rhyme channel? I'm going to go raise$150 million from like whoever Goldman Sachs to go and acquire these. And you have to say that with a straight face when there's no track record of that. You know, you have to really pitch a strong case. And I also wonder, and you would actually have good insight into this because you worked at Twitch.
14:43I wonder what opportunity looks like. So for example, when you explained Rene's inner dialogue of like, hey, look at all the top 100 channels. None of them are owned by PE or they all are just kind of like these mom and pop shops. This seems so obvious. But I wonder what that inner dialogue actually was with uncertainty. In the same way where I don't know anything about streaming, but you used to work at Twitch. And then I know that there was two new video kick streamers. I forget. But like, I wonder if a Twitch employee could have looked at me and like, these, there's an opportunity here. Here's a gap because I could see the data.
15:24Therefore, we should support this other thing. What was the other one called? Kick? There's Mixer. There was Kick. Yeah. YouTube has their own Facebook. Actually, you know, there was a time where we were, before Twitch acquired us, we were building like a tool in the ecosystem. We were getting to know a bunch of the streamers who were using our tool. And we were like, look, this tool, like the hard part is this tool like kind of caps out at like 100 million if we do if we win if we win the size of this is like 100 million we think and the problem is that the platform's worth like 5 billion um how do we do the 5 billion thing and we're like we'd have to create another platform it's like okay well there's the technology part of it that's hard but doable um the hard part is getting the streamers and getting the network effect to go like how do you break the network effect of something like twitch and what you realize is that a very small number of streamers drive a huge amount of the viewership.
16:15So in theory, you could get those streamers together and you could say, hey, we're coming over here. And so I actually went and pitched my investor. Now, I shouldn't say pitch because it wasn't, I wasn't fully committed. I wasn't sure that this is a swing worth taking, but I was like, I think what we would need to do. Wouldn't it be neat if we did this? I was like, we need to throw some sort of event where we get a hundred of the, we get all the top hundred streamers in a room together. And basically we need to make them an offer they can't refuse. We need to basically overpay the top 100. And the thing is with the top 100, even if they're making$5 million a year and you're offering them 3x that, 4x that, whatever it is, okay, you'd need$500 million to do this.
16:58And they need to say yes, which is hard. But if you had$500 million, you could create a platform that's going to be worth$5 billion. It's not that much more complicated. Once you have the streamers, you've got the hard part. You could build all the other stuff. You could build the chat. You could build the streaming technology. You could build the bits. You could build the subscription feature. You could build all the other stuff you would need to build, but you'd have to get the main creators to come over. You have to have the sentiment be, this is where you need to be not Twitch. Really, that's the really, really hard part.
17:25And so we were like, I don't know. That's kind of a crazy idea. We didn't end up doing it. When we got acquired, Emmett takes me out to drinks the night the deal closes and we go meet in this bar in the mission and we're talking. And I was like, yeah, like, you know, it's kind of like you can put your cards on the table now. The deal's done. And I was like, yeah, you know, actually, we were talking about something. I said, you know, one of the things that I thought about doing was I realized, like, you know, we did the math. We realized these streamers matter the most. If we paid them this much, I think we could have got them, you know, 70 % of them maybe to come over.
17:55And like, that could have caused like some waves. And he's like, yeah, actually, we've thought about that. So what we had done was we made it so that none of their, all their, they're on contracts with us, unlike YouTube. So like on Twitch, they actually have like multi-year agreements with Twitch. And he goes, we just made it so that they don't expire at the same time. So we always aligned it where for the top streamers, they're all ending at different times so that nobody would ever feel safety in numbers to move to another platform as a giant group because they could never get their contracts to align.
18:27That's why Emmett is Emmett. Yeah. Actually, I think in reality, that actually wasn't the case. and in truth, the streamers just could have like moved over and there's nothing Twitch could have done about it. Like the contract wasn't, you have to stream here. The contract was, you only get this deal if you stream here. Meaning like you get this ratio, maybe the split or this minimum guarantee, whatever, right? But like the reality was, if Twitch went and started suing streamers, that would have been horrible for their own business. They would never do it. Which is why multiple streamers did take money from Mixer and Kick and others and they left and Twitch didn't do anything about it.
19:02So like the reality was a more high agency version of me. You could have actually tried it and it would have been probably would have been more worthwhile my time than what we did with the tool because the tool never had the upside. This is a great story. I want to know like the update. I want to know what happened. And how did you know how much money he made? I told you my guy on Beehive. He basically went to their their his Rene's LLC or whatever. You know, the equivalent of an LLC is on company's house. And you could see that$280 million hit the bank in a certain year. They had to report that.
19:35And so he kind of did all the math. And he also had their cap table like their waterfall. So it was actually kind of nerdy and interesting in that the way they structured the deal was basically with investors. The founders who were doing the roll-up were basically entitled to somewhere between 22 to 28 % of all proceeds of the roll-up. All right. So that was like their profit participation at the end. So whatever we sell this for, we get between 22 to 28%. Investors are going to get the rest. Wait, that's insane. That's different than equity? No, it's like equity, but it's basically like, you know, you have equity, but then you have, let's say, preferred equity, right?
20:09Or you have like liquidation preferences. You can have rules. You can have strings attached to equity. So for example - Wow, I did not know that. What they did, you did, because in venture, this happens all the time, right? When a company raised money, they rated preferred shares. Preferred shares mean they get their money back first. So even if I own 25%, I don't necessarily get 25%. I might get zero. I guess I just assumed if this is a PE firm, the rules are different. and like it was like for example it was like tied to the carry or something like that so what they did was um it was based on the the multiple of the invested capital the moik right so it's like uh if it was under 3x return so they raised 400 million if it was going to be an under 3x return they were going to get like only nine percent of the proceeds or something like that like a lower percent got it but they hit 10 10x right so they hit the highest tranche which was basically they got their 10 of sweat equity plus 11 of profit participation so they got like 22 or something something.
20:57Did they use any of their own money to start this? I think Rene was an investor, but I don't know how much. Yeah, this guy's great. That's a good story. I have a life update for you. Okay, let's do it. And I wanted to share because I think it's fun, but I also think that there's a lot of people who can learn from the situation that I'm in, because I think they're in similar situations. So the life update is my partner, Joe and I, we are now the CEOs of my company, Hampton. And the life update is basically, I'm going like pretty much all in on it. And I wanted to explain a quote that I read that made me want to do this.
21:32So we like, or at least I like Palmer Luckey. Do you like Palmer Luckey? Yeah, sure. Why not? Palmer Luckey, we had him on the pod like three years ago, two years ago. And I've been just fascinated with his way of thinking. And he had this interview come out. I linked to it on the bottom of our document. It was with Tablet Magazine. And I think he came out with this in 22 maybe. And I want to read it to you. So Palmer Luckey is the CEO of Andrel. It's a 13 or$20 billion company, something like that. Also created Oculus. So he said, At some point in business and in life and in romance, you have to commit to a path.
22:12A lot of my peers in the tech industry do not share this philosophy. They're always pursuing everything with optionality. Oh, I need to be able to raise money from anybody. I need to be able to sell my business in any way. I need to have liquidity in any way. I need to make sure that I'm not closing myself off to future romantic partners. I need to make sure that I've got my options open. I need to make sure that I'm not going to buy a house and lock myself in or having children. I don't know. I'm not ready. I don't want to commit to that path. And keeping their options open, they ensure that they're going to jump from option to option.
22:44And if they don't commit to a path, they're going to fail at it. You have to commit to make it work. And I think marriage is the same way. You just have to commit to it. You have to say, this is the path that I'm on for better or worse, and I'm going to double down. And I thought, that is a great quote. That really stuck with me when I read this. And I realized that with my business, Hampton, I had hired a CEO for it. And so I wasn't able to like really... From day one, right? I think that's the important thing. Day, month eight. So I got it to a million in revenue. He scaled it to eight figures in revenue.
23:21and then I am now taking over. And so, but because of that, I wasn't able to like, you know, put my influence on it. You have to like respect your CEO. You have to respect the manager in charge. And I hated that. I was not a fan of that. And I think that on this podcast, we talk a lot about that and it sounds cool. And I'm sure it's great for a lot of people, but it wasn't great for me. And the reason I wanted to bring this up on the pod was because a lot of people you see doing this, They called it like a hold company, a holding company or whatever, where they're like doing lots of different stuff because we glamorize it because if it works, I'm sure it's great if that is your main thing.
23:59And I was starting to think, oh, that would be great. I would like to do that. I realized I don't want to do that. I just want to do one thing. And this quote like really inspired me. That's like really what I care about. Now, let me ask you a couple questions. You weren't doing a hold company, a holding company, though, right? You were just doing Hampton already. So why the switch where you go from being founder, chairman type person to I want to be the CEO or actually co-CEO, not even be the CEO? Why that? I realized that I wanted to have full control because I wanted this to be a legacy creating company.
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24:33I wanted to just put my texture on it. But also when I realized I hate remote work, I hate it more than anything. And I wanted to create an office where I live and an office culture. because those are some of the greatest memories that I have. You and I used to work across the street from each other at the corner of Bush and Montgomery, right? Was it Bush and Montgomery? Yeah. I loved that intersection, just walking out and seeing the action and seeing my employees upstairs and be able to just like go for lunch and just like shooting the shit during breaks. I loved it. And I just felt that this was a really good way to make all of my selfish wants come to reality.
25:10Right. Yeah, that's great. You know, I think that a lot of people are probably feeling this right now because everybody went remote during COVID. And now we're what, two, three years into that, that full remote decision. And at first you have the honeymoon period of remote. Ah, look at this. I don't have to commute. I don't have to even get dressed. I don't got to wear pants. I just got to top up. Here we go. You know, oh, this is great. I can see my kids. And then you're like, God, I can't get away from my kids. I haven't left the house in weeks, you know, or whatever, right? Like you start to see some of the consequences of the negative side of those decisions.
25:47And I think the biggest one for you and me, at least I felt this, is I miss just being creative and serendipitous with my team. So it's like, A, have a team, right? And B, be able to just whiteboard, sticky note, go for a walk, go for lunch. Like I brought Diego out here. So Diego was living on the other side of the country. He's living on the East Coast in Baltimore. How long has it been now? Diego's been out here for a couple months, two, three months, something like that. How has your life changed? For the better, dude, way better. First of all, I get to kind of still do basically what I do.
26:22But now I just have a buddy to do all of it with, right? So it's like, I kept the same schedule where it's like, in the morning, he comes over the first two hours of my day are like my creative block, right? Where it's just I don't do anything else. I just write or I podcast or I read. I only do something on the creative side. It's like a creative gym session. It's like going to the gym. but for creativity. All right, so we do that. Well, we do that together now. It's great. And then my trainer comes over. We work out together. He's working out with my trainer now. So it's great. Yeah, you know, we do a hard workout.
26:52Then we go grab tacos. And while we're grabbing tacos... Dude, you guys are like a prison gang, man. That sounds exactly like a prison gang. You wake up... Yeah, we just need some enemies, dude. Yeah. The problem is only just like old retired people around us. But if they... Dude, go start a beef. Actually, I do have some neighborly beef. I could actually just double down on that. I just had it. Now that I think about it. Start calling them homeboy. get blown into your yard. I'm sorry. I don't control the wind. Um, so, but then we go. And what I told him, I'll go notice this dude of our best ideas.
27:20How many of them have come while we were at this taco shop? Cause there's something in the creative process to like the bounce as they used to call it, the pickup artist game. And in the book, the game, they talk about this technique called the bounce. It's like, you're at the club or bar, you meet someone. If you really want to like accelerate your connection with that person, don't just stay there for another hour with them. just be like hey let's go grab a bite to eat i know a great place and if you leave if you do the same the same hour with that person but in two different places connection goes up well there's something like that with creativity where we're working on a problem here we end up getting you know like slightly stuck or we come up with what we think is a solution but in our gut we're like doesn't seem great oh let's take a break let's go for a walk so we walk or bike to a taco place at the taco place it's always that's where the idea comes once we've taken our mind off it once we've change the environment.
28:07And I was like, dude, notice how many how often that happens. If we were just remote, none of that would have happened because I would have gotten off the zoom with you. And then I would have gone to take a break, you would have got to take a break, I wouldn't be like, hey, let's just leave our phones on. Like it would have just been like a little bit weird to do that. And we would not have had, you know, those next ideas. And if you're in the creative line of work, those ideas are gold, those ideas is what you're in it for. Right? Right? Like, unless you're in a like factory type of work where it's all about productivity, um, you know, for us, creativity is the pro is productivity.
28:39It is the new productivity. And so we need to set up a situation that lets us be more creative, which being in person was, was pretty massive for that. Yeah. It's funny. We're both craving the same stuff. And I think that a lot of people are, um, and I, yeah. And so like, I went and looked at apartments this weekend and, um, I, uh, we have I think my lease starts May 1. And so I'm going all in on this, this in real life stuff. Like I need an office. Will you move or you're going to like split? I don't know yet. I'm still working out logistics. I went and looked at this apartment building. Have you ever been to like, I don't know if this is happening in San Francisco.
29:15So the new thing in New York is that there's these apartment buildings. And it took me a long time to realize what they are, but I've nailed it. They're cruise ships. And so basically what they are is they're really cheap. I mean, they're super expensive, but the build quality is like kind of crap, like all like basic builder quality apartment units. But then the actual lobby has a bowling alley. Oh, like the amenities are amazing. Yeah, like a rock climbing gym. And it's like all like in the basement. And then it has like the best gym you've ever seen in the world. And then it has like a playroom, a golf simulator.
29:49It's basically built to be sort of like a mall where like it's built for like the 35 year old three, two kid, all under eight type of like families. And so I went and looked at like an apartment like that. And I was like sitting in that apartment building. And I'm like, I don't know if I go to bed here at night. And these like tight ass walls, like hearing like honking in the city. And so I haven't decided if I can like put up with that. I'd rather commute. But potentially I would move to the city. I like here's what I did. I sat down and I was like, what's my dream day? Well, my dream day is I get up at 7.
30:19I go and work out. And then I get coffee with Austin Reef, who lives next to my in-laws. Or I'd get coffee with my in-laws. And then I'd go to work at 9.30. And then my wife would show up at the office to do some work. And then we're both home at 5 to have dinner. And then maybe at 7 or 8, after the kids go to bed, I would go for a walk outside. I'm like, that's the perfect day. All right. How can I create that? And so I'm still working backwards on how could I create that. The problem is, I forgot about going to bed at night and how I need a huge ceiling because I get claustrophobic. And that's going to cost$60 ,000 a month because New York City is like the craziest place in the world when it comes to renting an apartment.
30:56And so I'm still trying to figure out, you know, some of those logistical details on how on earth like I could pull off this. It was like super relatable with like walking and doing whatever until you're like, but I need 16 foot ceilings to sleep. No, I just like at your house, like you're like a lot of apartment ceilings are eight feet tall. And it like, I don't know, you feel like claustrophobic. Dude, the rent in New York City is outlandish. So when we were younger, do you remember like the idea of when we were 25? I think I spent like$800 a month, a$10 ,000 a month apartment nowadays in New York City.
31:27It's not nice. It's like a shit two bedroom. It's crazy how expensive Manhattan is. And so that's wild. I got to like figure out all the logistics. But that's my spiel. I'm going all in and I'm going to go all in on in real life. I need it. My soul is aching. How much were you working on Hampton anyways? Hours a week? 40 hours a week. Like it was like, what's going to change your CEO now? Well, I can't like, like before it was like, well, how can I convince this person that my idea is the right way? Or how do I respect the boundaries? You know, like I was a very respectful boss, I felt like it was like, but now it's like, I don't, I'm not really going to be respectful.
32:08I'm just going to say like, this is what I want to make. I need you guys to help me make this type of energy versus before I think I was a little bit more hands off. And I was thinking a lot. Now I'm actually operating. Yeah. What? Oh, no, that's just funny. Like, I feel like I was just reflecting like, you know, you, I think Andrew has a good gift to this. I do this too, which is like, we tell these great stories. You're like, you know, I was reading this article about Palmer Lucky and he said this beautiful quote and you have this quote, you're like, I decided I too need to commit and choose a path.
32:38But it's like, and it's a great way to frame a story like this. It's like the truth, I think, I'm going to speak for you for a second, but I think the truth in a lot of these situations is just like, it's irritating to be out of, like, to not have your hands on and not be in control. It's like, I just like to be in control and do things my way. But like, wow, that's a less fun story to say. It's like, you know what? I just really feel like we all chase optionality and we're better off to commit and really just make it work. No, that is the truth. And it's like, I think it's the truth, but I don't think that's why you're the CEO now.
33:10No, usually, usually discovery. Because you read this Palmer Leckie quote. No, usually discovery for me, and I bet it's for you and for many other people, is you feel a certain way and you're like, this freaking sucks. And somebody puts words on it. And then someone puts words on it and you're like, oh, that's like normal to feel. Or this person said... I guess what I'm saying is you weren't choosing multiple options. You just weren't in control. The quote that Palmer Leckie should have said is like, if you're the founder, put your fucking DNA in the company and just go like, be hands-on, be a micromanager.
33:39Go in there, do it. I was going easy. See, I was in like the dad phase. So like it was like I wanted to be available at like noon. Now I'm more so like, look, I can be there in the morning and in the evening. And I think that I'm still being a good dad. Before it was like I have to have X amount of hours of FaceTime. Now I'm out of the honeymoon phase of being a dad. And I'm like, look, I could like be with you for breakfast and be with you for dinner. And I think I could still be a good father. And so that was partially it. Gotcha. Gotcha. Yeah. I, uh, I was talking to somebody and, uh, recently and they were like, you know, I just want to like, I'm working, I'm working hard on this.
34:18They're like chasing some project, some deal. And I was like, why are you doing this? You're so like, you've done so many deals. You're post-economic, you've made so much money. Why go so hard at this? And they were like, I just really want my kids to see what they're, you know, their dad working. And I was like, I don't, I don't even think he was lying. I think he genuinely believes that, but I'm like, dude you're doing this deal because you like doing deals that's all you've done you you've done deals for 30 years you're amazing at doing deals it's a rush to do a great deal it's fun to win it's fun to dunk the basketball and you're trying to dunk and you don't have to be like i just want my kids to see a hard-working dad it's like dude you're sitting on your laptop sending emails like it's not like they see your their dad you know sweating it out in the soul you're not chopping on wood dude yeah so i was like but people tell themselves all kinds of stories and i just find it hilarious because of course i do the same thing but when you see it in other people it's much more easy to spot like, oh, you've told yourself a story.
35:11That's cool. Like that makes it's fine. Whatever, whatever gets you to do the things you want to do is fine. Hey, this episode is brought to you by Mercury. They're the fintech of choice for over 200 ,000 companies. I myself use it for eight different companies. The reason why we all choose it is because it has everything you need under one roof. So like my e-commerce company, it's super important for us to be able to easily wire transfer, pay all our different vendors and suppliers all around the world. And the old way with our more traditional bank that shall now be named, I try it online. It would say no.
35:41It would freeze my account. Then I'd have to go in, book an appointment, speak to a specialist who would try to upsell me on something I didn't need. And then finally, after 30 minutes there, then they charged me 50 bucks for the pleasure of that terrible interaction. And now with Mercury, I just go online, push two buttons, and I'm done. It's such a seamless experience. It's very intuitive. Everything's under one place. They basically took all the things any company would need for their financial tech and they made it super easy to use to put it into one platform. So highly, highly recommend it.
36:08If you're not using Mercury, I question your judgment. So that's it. You've heard it on My First Million. For more information, check out Mercury.com. Mercury is a financial technology company, not a bank. Check show notes for details. Would you want your children to work with you? Is that even in your wants? I would think that would be really fun or cool to do. I worked with my dad for about a year and it was actually a lot of fun, much more fun. Like working with my dad was more fun than just like hanging out with my dad and not working. You know what I mean? Like it was actually like a better dynamic.
36:39It was a cooler dynamic. I learned more that way. And I saw him differently and he acted differently in work mode versus he did in home mode. So it was kind of cool. So I think it would be really fun, but it's not something I'm like trying to gear up. You know, I think I've told you this before, like my new sort of dad ideal is Ben's dad. So Ben's dad, Andy, he, he did a very simple thing. That's going to sound like, it's going to sound like nothing, but I personally think it was quite profound, which is the way I initially was trying to be a dad and how other people are dads is you have things that you're into.
37:12I love basketball. And I keep trying to buy little basketballs and like put them near my son. I buy the hoop and I like take them to a class. I'm like really trying to get him into basketball. Cause like, Oh man, I really just want him to like, love the things that I love. And then we could share that. We could bond over that. Whereas his dad was like, he's like, what's that type of blood? That's like, it's the universal donor. It's like O negative or something like that. He's O negative. So he's like, he's got one son who's into standup comedy. So he's like, great. I'm now into standup comedy.
37:40Yesterday, I knew nothing. Didn't care. Today, everything I do is eat, sleep and breathe standup comedy. Bought books, watch videos, goes to shows by himself, starts practicing himself, starts giving his son feedback on every single thing that he's doing in a helpful, supportive way, making connections, whatever, whatever he could do. He's like, I'll meet you where you're at. And Ben loves the Phoenix Suns. Guess what? Andy now watches every Phoenix Suns game, is a hardcore fan, is always talking about the Suns because he's like, I'll meet you where you're at. If that's what you're into, I will get so into it that we can bond over that.
38:09And I just thought that was like a really selfless kind of amazing thing he did. And I just hadn't seen a lot of dads do that. I think my instinct and many dads instincts is just to try to get them to like the shit we like. And then they don't. And then we're like, all right, like I support you, but like at an arm's length. And I just thought it was much cooler to go all in on what your kids are into. So I hope and I'll expose my kids to like business and like I'll be totally open to them working with me. But I really want to do the Andy thing, which is if they're into whatever musicals, then do re mi.
38:41You know what I mean? That's awesome. That almost makes me emotional here about Ben's dad. What a great dude. He really is. do you want to end there or do you want to keep going i have one quick one this is actually kind of cool this guy josh on twitter so joshua ogundu uh tweeted this out it's a cool find so he tweeted out about this company called shotzi have you ever heard of shotzi it's an app no yeah didn't we talk about shotzi no so shotzi is an app for tracking your ozempic injections oh that is funny and it just crossed a million in arr and all it does is it basically is a it's a shot tracker so you know it's i guess i i don't know maybe you could tell me like i guess it's somewhat cumbersome to keep track of maybe i don't know if it's when you did it how much your dosages a reminder it's time for your next shot um by the way how about that little jab of uh i don't know maybe you could tell me like how do people use this you've talked with Ozempic you have to increase the dosage a lot so let's say you start with like 5 ml after two weeks you have to go to seven and then you have to go to like 10 and it's not like incremental so you so when you hear this idea were you like yeah that was a pain point or for you was it like nah I don't I didn't take it enough to be a pain point but it's very clear it's just sort of like imagine taking vitamins and like you have to add a pill every two to three to four months and it's like it just it is easier to track if you want to follow it by the book i'm more of a like eyeball and see how i feel type of guy look in the mirror do we want to party today or not that's like you know that that's kind of they call it vibe coding i was a vibos epic guy it was just how do i feel that day yeah so the the woman who made this i think her name's aja she uh she was an engineer at the athletic like a software engineer at the at the media company the athletic and i guess on the side she just built this like for her own pain point and then i think it took off in like the reddit communities and just off of reddit and then some tiktoks about it it's gotten downloaded like a hundred thousand times it's got this paid subscription crossed a million in arr um what niches and riches man like this is uh riches and niches is like just such a simple just problem solution app right that that that somebody realized okay if if ozempic is the next big thing, right?
41:06If these GOP ones are the next big thing. I don't know how many people take them. I think it's like 40 million people or some like really big number of people who now all are on some schedule and realizing that you could build an app just for that population is a smart idea. Have you seen like the Oscars and the Grammys and things like that? Like everyone looks great. Everyone looks great. Luka Doncic is losing weight quickly. Is it, is, are they illegal in sports? I don't think so. No. I mean, it's kind of like a... You lose muscle mass, right? So I don't think athletes would really care too much about this.
41:43You cannot lose... I'm not a scientist, but you, obviously, you can... If you eat enough protein and you lift weights, I think you can maintain. It basically just makes you not eat. So if you can say like, yeah, but I'm going to eat, and I'm going to hit my protein, and I'm going to lift weights, even though I don't want to eat today. Yeah, you could keep protein. It's just you don't want to eat. You're full. Let me ask you a random question. I was watching this video today about somebody was speculating that LeBron does like whatever. PEDs. I saw the Lance Armstrong thing about it. So Lance Armstrong was talking about it.
42:19Chael Sonnen has talked about it. Chael's like, yeah, we have the same drug guy. I know. I know what he's taking. I'm not going to say, but I know what he's taking. But Chael's also like a professional troll. So you don't know when he's being facetious or truthful. But also was a drug cheat. Yeah, but also did use performance-anicy drugs when he competed. And he was basically like, he's on EPO. And like, you know, if you wanted to do what he's doing, if you wanted to be doing tomahawk dunks at age 40 in the NBA, like, you know, playing 30 minutes a game and averaging 27 points or whatever, like you would do this.
42:49And I actually just was thinking about this in like the world of business. Is there PEDs at business? And like, how would you feel about people doing that? Have you ever taken Adderall or Ritalin? I've never taken it, but I know I have several friends that do it to focus to be more productive. I don't do any. I don't do any drugs. But 10 years ago, before I got sober, I for some reason, a doctor gave me a Ritalin prescription. I have no idea why. I don't remember what happened, but I got it. And I took it for about four days. And on the fifth day, I had like a mental breakdown. It made me too speedy.
43:25I was like, I may be anxious. I'm like, I'm going crazy. This is horrible. And I was like, I'm never taking this crap again. But those four days, I was on fire. I was like laser focused and I felt on top of the world. And so obviously a lot of people take this and I would not feel bad if my competitor took it. Is that what you're asking? I just, I don't know, like in sports, it's definitely seen as, I think for most people, when they would hear about an athlete doping or cheating, it'd be literally like you're cheating and it's a tainted record, right? But I think those drugs should be legal in sports a little bit.
44:03Do you think that? So you would, you think in business, I guess there's two questions. Do you think a lot of people are taking this type of stuff? I remember Sam Bankman-Fried had the patch. I think a huge amount of people are taking it. Dude, I think there was a joke on Reddit. There was a guy who was like, I'm naming my daughter Vyvanse because I love this drug so much. Yeah, I think there's a, yeah, I think everyone, I think if you're under the age of 30, I would assume that you're taking it. Oh, wow. That's great. That's you think it's that popular? Yeah. I think that I am now a very wholesome, straight edge person.
44:40And I think you have always been that way. So I think perhaps we don't. I'm just naive, dude. I didn't even like nobody. Nobody offered me any. I didn't I didn't get any. It's not like I'm like, I think that superior. I just didn't even know. I'm not I'm not saying that it's morally superior to be this way. I just think that you and I have never well, since I've known you, I have never partied and you have never partied. or at least been part of like the drug or alcohol scene really and I do think most people uh it's like getting weed you know like oh like I can't sleep but the doctor's like gotcha I understand do you know what I mean like waking like right yeah that's how I think it is the closest thing I have to that is like calling my dog a service animal so I can like you know yeah take her into some place dude I so when we were younger our parents would like my parents gave me Ritalin because like every boy who couldn't sit still in fourth grade, they were like, oh, you have an illness, son.
45:31And we need to keep you from standing up from the chair. And like, you know, you have to take this pill. And I remember taking the pill in fourth grade. And after like a few months, I'm like, I didn't have like the vocabulary to explain to my mother. But I was like, this is making me sad. Like something was going on. And so she was like, oh, this is crazy. What are we doing? But I remember taking it. It changes you. And I do think that when I took it as an adult, it felt like I was on EPO and I was having to do the Tour de France. Like it felt, I'm like, oh, I understand how this is like a PED.
46:02Did you see how Chamath wants to come up, which I don't really respect a lot of what he says, but do you see how he said he wanted to have the PED free poker? Oh, yeah, yeah. He was saying like a no Adderall poker tournament, basically. Yeah, yeah. That's sort of intriguing. Dude, I must just be sleeping on this. I didn't realize this was as I have a couple of friends who I know they were they told me like, oh, yeah, I'm going to stop doing that. I was like, oh, you've been doing that. What is that? Why? For what? Like, you know, it didn't even really occur to me. I guess as you guys are saying this, I'm realizing that, oh, I've probably just been foolish about that.
46:39Yeah, it wouldn't surprise me. OK, so like what do you call the listeners of this pod? The yuppie class, like the white collar class or whatever. I would bet that 30 % of the people between the ages of 22 and 35 who are in this white collar or yuppie or Henry class are on ADHD medications. That's my prediction, 30%. It's a lot, right? If you're on that Addy in the comments, let us know. We're going to poll the YouTube comments right now. Natty or Addy? I had friends that would buy it in the Silk Road. Can you even buy it online? I guess you don't even need to buy it online anymore. You can just go to your doctor.
47:22There's probably like an Adderall toothpaste at this point. And if not, great idea. Yeah. Brush in a rush. Let's go. 10 out of 10. 10 out of 10. You nailed that one. All right. That's it. That's a pop. I feel like I can rule the world. I know I could be what I want to. I put my all in it like no days off On the road, less travel, never looking back
47:53Alright, this episode is brought to you by Mercury They are the finance platform of choice for over 200 ,000 companies Shouldn't be surprised because I use it myself for not one, not two But I have eight different Mercury accounts I have seven for different companies that I'm a part of And then I have my own personal account because now they have personal banking, which is a really cool feature. I highly, highly recommend it. Like I said, I use it myself. And the reason why is because the way that Mercury works is beautiful. It's very intuitive. And you could tell that it's actually made by a startup founder.
48:23It's an entrepreneur. You could tell it's made by somebody who used other banking products in the past and didn't like all the different rough edges and annoyances and decided to actually fix it himself. And really, any type of entrepreneur you are, let's say you're an agency, well, one of the things every agency has to do is be able to send invoices, easily create them, send them to customers, and stay current on your balances with all your customers. Well, you can do that inside Mercury. And so I think that Mercury is great. Highly recommend you check it out. And thank you for sponsoring the show.
48:48For more information, check out Mercury.com. Mercury is a financial technology company, not a bank. Check show notes for details.
From the publisher
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Episode 690: Sam Parr ( https://x.com/theSamParr ) and Shaan Puri ( https://x.com/ShaanVP ) tell the story of the smartest YouTube rollup they’ve ever seen.
—
Show Notes:
(0:00) $3B of nursery rhymes rollup
(21:55) Sam goes all-in on IRL
(36:03) All-in dads
(38:37) Shotsy
(41:49) PEDs for business
—
Links:
• CoCoMelon - https://www.youtube.com/watch?v=dlnJ9attCOc
• Blippi - https://www.youtube.com/channel/UC5PYHgAzJ1wLEidB58SK6Xw
• Companies House - https://www.gov.uk/government/organisations/companies-house
• RollUpEurope - https://rollupeurope.beehiiv.com/
• Shotsy - https://shotsyapp.com/
—
Check Out Shaan's Stuff:
• Shaan's weekly email - https://www.shaanpuri.com
• Visit https://www.somewhere.com/mfm to hire worldwide talent like Shaan and get $500 off for being an MFM listener. Hire developers, assistants, marketing pros, sales teams and more for 80% less than US equivalents.
• Mercury - Need a bank for your company? Go check out Mercury (mercury.com). Shaan uses it for all of his companies!
Mercury is a financial technology company, not an FDIC-insured bank. Banking services provided by Choice Financial Group, Column, N.A., and Evolve Bank & Trust, Members FDIC
—
Check Out Sam's Stuff:
• Hampton - https://www.joinhampton.com/
• Ideation Bootcamp - https://www.ideationbootcamp.co/
• Copy That - https://copythat.com
• Hampton Wealth Survey - https://joinhampton.com/wealth
• Sam’s List - http://samslist.co/
My First Million is a HubSpot Original Podcast // Brought to you by HubSpot Media // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano
