In short
My First Million - Episode 561 Summary
Episode Title
MrBeast of Gardening!? How The Plant Daddy Built A $27M+ Garden
Hosts
- Shaan Puri [Twitter](https://twitter.com/ShaanVP)
- Sam Parr [Twitter](https://twitter.com/theSamParr)
Episode Overview In this episode, Shaan and Sam explore the remarkable journey of Kevin Espiritu, a gardening influencer who transformed a niche plant blog into a thriving $27 million annual revenue gardening empire.
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Key Segments
- Introduction (0:00)
- Dedication: The hosts dedicate the episode to non-native English-speaking entrepreneurs and those starting businesses while caring for young children, highlighting their resilience and determination.
- The Rise of a Gardening Influencer (2:00)
- Kevin Espiritu's Journey:
- Formerly employed at Scribe, he began gardening as a hobby.
- Started a blog to document his gardening journey, attracting a growing audience.
- Transitioned from hydroponics to a broader gardening focus, rebranding to "Epic Gardening."
- Growth Metrics (14:30)
- Revenue Growth:
- Year 1: $60K, Year 2: $100K, Year 3: $250K, Year 4: $7 million, Year 5: Over $30 million.
- Significant growth attributed to the COVID pandemic, which sparked a global interest in gardening.
- Marketing Insights: Hass Avocados (14:30)
- Case Study on Hass Avocados:
- Discussed the rise of Hass avocados and their marketing strategies.
- Importance of branding and consumer education in boosting popularity.
- New Movement: Man Camps (23:30)
- Emergence of Active Conferences:
- Discussion on conferences or camps focused on activities rather than traditional sit-down lectures.
- Notable examples include a running club and a poker getaway, inspired by the Camp MFM initiative.
- Search Engines - Best Business In The World (31:00)
- Google's Dominance:
- Examination of Google’s business model, revenue generation through ads, and user experience.
- Discussion on alternatives to Google and the emergence of subscription-based search engines like Kaji.
- Stories About Sergey Brin and Larry Page (44:00)
- Founders’ Anecdotes:
- Insights into the early days of Google, including the founders' unconventional approaches and work culture.
- The importance of innovation and adapting to market changes in tech.
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Key Concepts
- Negative CAC (Customer Acquisition Cost): A concept where a media business like Espiritu's can leverage its content revenue to acquire customers at no additional cost, leading to sustainable growth.
- E-commerce Strategies for Influencers: The evolution of influencer businesses from content creation to product launches, highlighting the importance of niche markets and audience trust.
- Marketing Dynamics: How branding and consumer education play crucial roles in the success of products, using Hass avocados as a prime example.
- Emerging Trends in Conferences: Shift towards more interactive, engaging formats for networking and learning, moving away from traditional lecture-based events.
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Links and Resources
- [Epic Gardening](https://www.epicgardening.com/)
- [Plant Daddy on YouTube](https://www.youtube.com/@epicgardening)
- [Kagi](https://kagi.com/)
- [Camp MFM Sizzle](https://tinyurl.com/5bam77eb)
Conclusion This episode showcases how a passion project can evolve into a multi-million dollar business, emphasizing the importance of adaptability, branding, and community engagement. The discussion also highlights broader trends in entrepreneurship, marketing, and the inevitable shifts in consumer behavior and technology.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00He quit his job and in the first year he does it. He hits actually five grand a month. So he even surpasses his one year goal. And he just keeps going. So first year, 60K. Second year, like 100 something K. Third year, 250K. Fourth year, 7 million. Fifth year, you know, it just keeps growing. Today, this business does over 30 million a year. No way. Are you kidding me? 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, let's travel. Do you want to start with Updog? am i 12 i thought i might catch a sleep in there uh that's like just gave it to me that's way below you you should have just gave it to me um all right before we start i want to dedicate this podcast sean oh to two groups of people because if i had run-ins with these two groups of people and i've taken for granted how special these two groups of people are.
0:59The first one, people who start businesses and are not native English speakers. It's insane. I hug out recently with a few friends that are entrepreneurs and they don't speak English natively. That's so impressive. I take it for granted so much until I've got to communicate someone of a different language. That's amazing. So I wanted to dedicate this pod to that. The second group of people, people who start businesses and they're not wealthy and they're just starting their businesses, trying to make their dreams come true while they have newborns or little kids. How impressive is that? Like I didn't take, I kind of took that for granted.
1:37My parents did that when I was younger. I don't realize now that I'm a kid, I realize how scary that is. So I want to dedicate this podcast to those two groups of people. Wow, good guy points. Okay, I like it. Dedication accepted. Shout out to all those groups. I have a few interesting things to share with you today. Do you have a few interesting things or what? I have two things you're going to like. What do you got? All right. So we're talking about AI. We're talking about fancy shit, right? Well, I'm going to take you on a journey. So Sam, buckle up because I got a little something for you.
2:09I'm going to tell you about a journey I went down. And the journey starts with a tweet I saw that was very interesting. And it was a tweet about, you know, Bitcoin hit an all-time high price. AI's taken off. I'm not interested. What I was interested in is a picture of a guy holding a giant avocado. And I was like, what is this? And he says, here's what he said. He goes, these are the best avocados I've ever had. They were grown by my 93-year-old Japanese neighbor. I have had to use Google Translate to talk to her about the variety. And she thinks it might be one that just grew from this specific seed.
2:42If that's true, this could be a new landmark variety. The Haas avocado was discovered in similar fashion and is now the most popular avocado in the world. This avocado that I found cannot be propagated with normal methods. It doesn't take well to air layering. I don't know what this means. He says, so I'm going to have to start with the seed. I'm going to have to grow it out the tree. I'm going to have to cut it from the mature tree, graft it onto its own seed. I don't even know what any of this means. But then he's like, and then I'm going to try to recreate this avocado. It will probably be a three-year experiment.
3:12Wish me luck. And so I saw this and I, what a noble quest. I said, what does this avocado teach me about life? No, what has life led me to to make my life about this avocado? Because I am so fully invested in this three-year journey about this guy who's going to try to grow a better avocado. And it led me down a rabbit hole about him and about the avocado. So the guy is this guy named Kevin Espiritu. Do you know this guy? He calls himself the plant daddy on Twitter. No, but I'm in. You don't know this guy? No, I think you do. When I started describing people. So he's got a pretty amazing story.
3:44And I'm going to first tell you his story. I'm going to come back to the avocado. We're going to Tarantino this a little bit. All right. So this guy, basically, he used to work at Scribe, the book in a box company. They help you produce books. So he's working at Scribe. He's an early employee there. And on the side, he used to have hobbies of video games and online poker, and he was just playing nonstop. And so to get away from his online addiction, he's like, you know what? I'm going to start gardening. Him and his brother, this is the quote in the article. They go, hey, let's go hit up a nursery.
4:16They go to a plant nursery. They are like, all right, we don't know anything about gardening, but we want to do something. We want to do something away from a computer outside with our hands. And they go buy a bunch of stuff and they're trying to figure it out. They go online. They're looking up blogs to learn. And along the way, he starts blogging his journey. And so he's at Scribe and his little blog starts getting a little bit of traffic because he's posting his experiments. He's very relatable because he's an absolute noob beginner. And so people who are Googling are also absolute new beginners and they start to like this.
4:47And eventually he's like, you know what? I'm going to quit my job. At the time, the blog is making, I don't know,$16 ,000,$17 ,000 a year. So roughly two-ish grand a month, a little bit more than that, right? So a little less than two grand a month, sorry. So he quits his job and he's like, I'm going to go all in on this thing. And at the time, he's all about this one type of gardening called hydroponic garden. Is that like where the plant is like raised? yeah it's like not in the soil it's like in water something like that I said exactly I have no idea alright so he creates r slash hydro which is like a reddit community so he starts just building a community around other people who are interested in the same type of thing he's doing along the way he's like oh dude I think this hydroponic thing is a little too niche he rebrands it into something called epic gardening epic gardening today is huge dude I'm on the website and I'm looking at his social numbers holy crap He's got like 2 million on TikTok, 2 million on YouTube, a million people here.
5:43His Twitter pops off. So he's done really, really well with this epic gardening content. He's just a dude in a baseball cap, super relatable. When you watch his videos, he's like, he's just a very likable guy. He's got the gift that you need when you're going to do this type of content. And so he keeps going. And he basically for 10 years, essentially bootstraps this company. So it starts with like a$10 domain, pays five bucks for hosting. And he was like, all right, I'm going to try to get this thing. And his goal was, I'm going to try to get to three grand a month because three grand a month means I can live off of this like blog revenue.
6:13He quit his job. And in the first year he does it, he hits actually five grand a month. So he even surpasses his one year goal and he just keeps going. So first year, 60K, second year, like a hundred something K, third year, 250K, fourth year, 7 million, fifth year, you know, it just keeps growing. Today, this business does over 30 million a year. No way. Are you kidding me? And he just raised a huge amount of money from churning the same guys who backed, we talked about Eater, Barstool, others, they have this content to commerce idea. And they're like, this guy in the gardening niche is going to be able to do big things.
6:47And he had already kind of proven it. So what he did was he was doing pretty well with the content. He was just like learning. So he's like, dude, I've been on YouTube for so long, you know, since, you know, basically 10 years now on YouTube, he's not just keep evolving with whatever the new metagame is of YouTube. And what ends up happening is that in 2020, shit takes off during COVID. So COVID was the big inflection point that really took this from moderately successful to very successful. Two things happened. COVID first, where his channel, all of a sudden, he said he started adding like 15 ,000 subscribers a day because the same thing he had when he was like, dude, I'm just so sick of being inside on my computer.
7:24I want to get outside, do some gardening. The whole world basically felt that when COVID hit. And so a lot of people got interested in this. And then he's like, cool, all my money up till that point was ads and affiliates, right? So just like YouTube AdSense, YouTube ad revenue, and then affiliate links to products. And finally, he's like... Was he doing 30 million that way? 30 million ads? No, no, no. Way less than that. He was doing less than a million doing that. But then he decides, all right, I'm going to launch a product. And he's like, I'm going to create a gardening product. And so he imports a product from Australia and immediately it works.
7:57And so he's like, oh, this is kind of a good idea. And he starts to sell that product. And the beautiful thing about these creator businesses, right? We've talked about Mr. Beast. We've talked about Logan Paul with Prime, Mr. Beast with Feastables. The mass creators, what they do is they take a mass market product like Gatorade or chocolate. And they're like, cool, we'll sell this commodity product using our branding. And we'll use our branding to get into retail. Well, for the medium, the mid-tier creators like this guy or us, for example, you have to actually create a niche product that's going to be higher ticket, higher value.
8:33And you're going to use your audience to do it. And so what's cool about this is you create something that's called negative CAC. So what does negative CAC mean? Every business otherwise has a sales and marketing call. Talk dirty to me, baby. I love negative CAC. Keep going. CAC, which is customer acquisition cost, is the amount of money you have to spend in marketing or sales to get a customer. And for most businesses, this is maybe 20%, 30%, 40%, 50 % for some companies, it's 80 % of their revenues are just how much it costs to go market, to acquire a customer. With a media business like this, what ends up happening is you get negative CAC, meaning he gets paid$1 to$2 million a year for his YouTube stuff, for his content, his blog and his YouTube stuff.
9:12He's making money on that. And that's his customer acquisition channel. So it's like kind of an unfair advantage. This is what the churning guys are really smart about to it. Shout out to Mike Kearns over at Turnit, where I recognized they identified that, hey, some of these creators have high trust, they have high authority in a niche, and they actually have a business model where instead of spending 30 or 40 % of your revenue on acquiring customers, you actually have negative CAC. It's actually, you have not only zero, it's better than zero. You actually have a profitable media company that is being used to acquire these customers.
9:42That's the beauty of it. And so then he jumped and he went from making, let's say a million bucks a year to 7 million, 7 million to 20 million. And then now he's over 30 million a year in revenue. And the other cool thing is he's bolted on from acquisitions. Hold on. What's he selling? He's got like a seed product. So they like some tray seed crap. I don't know. I don't know anything about this. It's called botanical seeds. And he bought that company, actually. That's not the one he started. He bought that because they had retail distributions. They were in like 4 ,000 or 5 ,000 stores. So he's like, cool, let me buy this because I know that my audience will help grow this.
10:16This is what I did with Shepard too. It's like, let me buy this company that is already a good business, knowing that my audience will acquire a bunch of customers for it. And that's what happened with Shepard. We basically tripled the business using this strategy. He's doing the same thing in the gardening niche. And so he bought the seed business. And then he bought this houseplant business, which is actually a cool story. So he's like, during COVID, everybody wanted houseplants. I think you guys talked about this with Trends too. Dude, we talked about this a year and a half, I think, before the pandemic about succulents.
10:49People are wanting to buy succulents online and there's not a lot of options. You were totally right. You were ahead of Tran. What he did was he was like, cool, should I start creating this content? And he realized in the growth of any entrepreneur, eventually you start to realize that, hey, sometimes it's actually easier to buy than build. And so what he did was like, well, I could try to create all these articles, rank for them in SEO. or he found this website that was called yourhouseplant.com. And he's like, this actually has good content and it's good SEO. They just don't have any business around it.
11:20And so he's like, I think I could make this product a lot better, but I could get this off a head start. So he does a who is lookup. And it's some Indian VC owns this as a side project. He buys it for$1 ,000. And then immediately, like month one, he's making more than$1 ,000 off this thing and then grows that property. And so he's done this a few times and he raised money from churning to be able to go do more of these. And so I think this guy is amazing. I've asked him so many times to invest because I'm like, dude, this is you are going to win and you're going to win in such a big way. It's going to shock people.
11:49Like, I think as I'm saying it now, it sounds like pretty cool, pretty obvious. And as his growth happens, but like 10 years ago, so non-obvious, even four or five years ago, even when COVID started to get more popular, it's like, okay, cool. You're a YouTuber. Okay, cool. You're a YouTuber with an e-com shop. I say, no, no, no. you are going to be the most trusted influencer in the gardening niche and the gardening niche look at how much there's full retail brick and mortar stores that are selling fertilizer and different things like that like he can take this huge if he does this right and now it's just a question of how fast his kind of business development can level up with the content skills he already has and he's got the look I'm looking at his Instagram he's wearing flannel he's got a nice smile like he's got it's he's basically like a what's What's it called?
12:35Chip and Joanna? Yeah, Gaines. He's got that type of vibe where I look at him and I'm like, you're relatable. I trust you. You're somehow a little bit aspirational a little bit. That sounded like an insult. I didn't mean for it to sound like that. But this is awesome. And dude, these guys at Churnin have done this so many times. They did it with MeatEater. Was it MeatEater who we talked about a few podcasts ago? They did it with Cars and Bid and Doug DeMoro. This is like... When people say they're going to do this, I often think it's at a small scale. These guys are doing it at multi, multi, multi billion dollar scale.
13:08It's really cool. Yeah, exactly. So I think this is amazing. Now let me circle back to the avocado thing. So he says, I'm going to do this three year avocado mission. And he says something about the Haas avocado. And so I go look it up. I'm like, where did this Haas avocado come from? Learned a couple things. Number one, it's not pronounced Haas. It's Haas. We're all saying it wrong. That's the first thing I learned. Second thing, do you know this story? Have you heard the story about the Haas avocado? No. No. All right. So basically, avocados were absolutely not popular back in the day. So nobody ate them.
13:42They didn't taste very good. Not even like in Mexico? No, they were not. They were just not a popular fruit. It was a green product. It was not very popular. It didn't taste very good. And it wasn't even branded very well. So some people called it avocados. Some people called them alligator pears. Some people called them like in Mexico, they called them the, like, I don't know how you pronounce the word, but it was like the Spanish word, like the native word for testicle. They're just like, yeah, you want to go eat a testicle? And so nobody really liked this fruit. So enter Rudolph Haas. Rudolph Haas basically is a mailman from Milwaukee.
14:15He's now living in California and he decides he wants to plant an avocado tree. So he goes and he buys some seeds and he tries to plant it. But like you have to, I guess, do some grafting process or whatever to get things to like take. And it didn't work. And so he's like, ah, didn't work, whatever. He thinks about just cutting it down, but he just doesn't get around to it or whatever. So he just lets the tree grow. And he lets it grow for like a year or two. And then his kids notice that there's fruit on it. They pluck it. They open it up. And the kids really like it. This is how the story goes.
14:44Kids really like it. He's like, oh, why are you eating that? That's not good. And they're like, no, it's great. He tries it. He's like, oh, this is actually really good. It's way creamier. It's got like kind of a nutty taste. And there was way more space between the seed and the peel. So it was like softer, creamier. and there was just more of the actual like filling. And he's like, whoa, these are actually really good. And so he starts eating it, you know, word starts to spread. He goes and he partners with a local nursery and he's like, hey, can you help me grow more of this tree? Because this tree is like bearing this amazing fruit.
15:12And so the nursery is like, cool, yeah, we'll do more of this tree and we'll give you, you know, some royalty off this thing. And then now, house avocados are like 80 % of worldwide avocado sales. These trees are planted all around the world, Mexico and China and everywhere. This is the dominant fruit. And it's not even that old. So he patented it in 1935. So we're talking avocados as we know it today are less than 100 years old. So now here's a couple of interesting things I found from this. So number one, a lot of fruits are like this where they actually start kind of shitty. They don't taste very good.
15:44And then through a process of artificial selection, so like not natural selection, artificial selection, you find the good tasting fruit and then it becomes the dominant species because that's the one everybody wants to eat. I just didn't really think about that too much. Yeah, like a banana. Like an old banana from 100 plus years ago tasted like a carrot. They weren't as sweet. And that's happened with a lot of our fruit. It's gotten sweeter and sweeter and sweeter. So they're like the Honeycrisse apple. There's like a cotton candy apple right now. And a lot of health advocates are like, dude, you shouldn't even eat modern fruit because it's not exactly how it used to be.
16:15And the health benefits aren't nearly as good. Yeah, it doesn't have the same properties in it because it's a different thing. Right. Optimized for taste. So a couple more interesting facts. Number one, this guy, even though he said he got like a fruit patent, which I was like, what the hell is a fruit patent? He didn't make much money off this thing. I don't think he really had the patent. I don't think he really benefited from it. His son, Charles, came out and told the LA Times that even though my dad created the greatest avocado in the world and his total royalties lifetime are$4 ,800. Less than$5 ,000 he made off of discovering this.
16:48And I say discovering because he didn't invent this. He didn't mean to do it. he didn't like, you know, like manually try to create this. He discovered it. And even he says, he goes, it was an act of God that I discovered this fruit. And so I found that interesting. The third thing I found interesting is the marketing behind this. So even though this thing tasted good, it didn't take off right away. And one of the reasons why is that an avocado doesn't look like most fruits. So most fruits are colorful. They look very appetizing. Like the reason they called it the alligator pear was because the skin was basically all wrinkly and tough, like the way an avocado that we all know looks.
17:24And so nobody wanted to eat it. They were like, this thing looks bad. And so nobody would even try it. And so the Fruit Association of California comes together and does probably what the greatest act of any committee ever. They were like, look, a couple of things. Number one, we can't keep calling this shit testicles and alligator pears. We got to come up with one name that we like. All right, we're going with avocado. Everybody needs to call this the same thing. so that this can spread in popularity. The next thing that they did that was very, very smart. They were like, cool, why aren't people buying these?
17:55They're like, well, because they look like they've gone bad, right? They're dark. It's like black, basically. It looks like fruit that's gone bad. So they're like, all right, new marketing campaign. We're going to put stickers on every one of these that says ripe tonight. Basically that this is perfectly ripe. It's ready to eat tonight. And this is already true. It's just that consumers don't understand this. And so they put stickers on every avocado and suddenly avocado sales started to boom. Because once you try it, you like it, but people weren't trying it because they thought it had gone bad instead saying, this is ripe, ready to eat tonight.
18:25That was the second thing that they did. The third thing was that they were like, they needed to educate people that a green avocado was actually a bad avocado and that this was a good avocado. And so they did all this marketing to make it work, which you never really think about with fruit. Like you don't think about fruit marketing, but everything around us is the product of some ad guy I try to boost sales. Once you realize that, you can learn two things. You can learn a lot about marketing and you can learn a lot about the products that you see are not as they appear. You become a little more skeptical, a little more jaded towards all products when you realize that even avocados were basically like, they were just someone's, some dropship or somewhere had a great idea.
19:05Dude, we, first of all, this is awesome. This is very interesting. We should do an entire episode on fruit and marketing. It's actually really interesting. uh planet money have had a podcast on the honey crisp apple you know it's the most popular right you know before a lot of apples like that existed it was red delicious uh it's like kind of fascinating i met a guy who had done a venture-backed startup it was like raised a bunch of money was trying to grow business blows up and we check in with him we're like yo like what are you thinking for what's next and i think he's gonna say some ai crap i'm like crazy you know whatever some big idea.
19:43And he's like, I'm trying to invent a new fruit. And I was like, what? And he's like, yeah. He's like, you ever had a mango? Yeah, he goes, you think you've had a mango? Wait till you try my mango. I was like, I'd love to try your mango. Send it to me. He sent it to me. And basically, he was like, he was basically like the shape of the fruit really matters. So for example, like the ease of eating. So he had these like, his mangoes were in like circular spheres, basically, like little balls. and his little mango balls were ready to eat. They were super juicy. The texture was perfect. And I was like, wow, this is genuinely an amazing mango experience.
20:19Thank you for this. What's it called? Well, he kind of pivoted off the idea because he's like, the logistics of it are so hard. He's like, to get fresh. He's like, it tastes really great when it's fresh. He's like, but just the logistics to get this to customers is so hard. I would have to go about this in this way, this way, this way. So he pivoted off that idea in the end. I feel very fortunate that I got to try that mango. And the crazy part is, and this is like actually kind of like an interesting moat is that it takes 10 or 15 years to do because imagine if you're building a website and you could only make a change once a year to that website and see the results and be like ah shit that didn't work next year let's see because you have to you know you got to wait for it all to grow it takes a long time um and so we should do a whole thing right like yeah you know i guess there's some rules around the patent so the rules that i read were basically like you if you want to do a fruit patent, you can't basically, it has to reproduce asexually.
21:12It has to be created by breeding or grafting. It cannot be discovered. If it's already in the wild, it can't be patented. There's a bunch of rules like that. The first plant patent was this guy, Henry, who planted the climbing, ever-blooming rose. He created that rose, and he patented that plant, and then he gets to benefit from that. When we do our fruit and plant episode, I think we've got to go find the greatest fruitpreneurs to ever live. Yeah, I just looked him up on Twitter. I have had some interactions with him. You know what's funny about Twitter is there's so many people. I remember I was talking to this woman named Shelby Church and they're like YouTube celebrities.
21:51They'll have 5 or 10 million subscribers on YouTube. And you go to Twitter and they've got 10 ,000 followers. And on Twitter, they're just trying to learn the rest of us to get business insight and things like that. This guy is not that popular on Twitter, but he's got 10 million across all of his other socials. We could just DM him and get him on here. That's kind of cool. Yeah, let's do it. So I made a video of Camp MFM that I want to show. So originally, by the way, this is my debut of vlogging. And you'll notice that the video is not a vlog. Why? Because your boy sucks at vlogging. It's hard.
22:24It's really hard. I learned that the hard way. He'd be like, all right, so I'll just get a shot of you walking into the house. And I'm like, I just walk into the house. He's like, no, no, no, you can't just walk in. I was like, what do you mean? He's like, you got to say something and then you got to walk in kind of an interesting way. I was like, but I don't walk interesting or say that I just walk into places. There's no one here to talk to. What am I supposed to say? Anyways, didn't work out so well, but we have a cool video. So two things. Number one, number one, if you're just listening to the audio version, you got to go to YouTube to see it.
22:52We're not even going to put that in the audio version because it's not going to make sense. So go to go to the YouTube video if you want to actually see the video. Sam, I have three questions. What do they search? What do they search? Oh, they search my first million. Or you can just search the greatest podcast of all time. either one should show up if Google's doing their job right and you search My First Million click on this episode and you'll see the video here so Sam I have three questions for you number one how much FOMO are you feeling right now knowing that you skipped this year's Camp MFM in fact we may need to not even name it Camp MFM just name it Camp Sean because I didn't skip it I could I had a newborn child I was committed to being with her for a certain period of time I didn't just skip it I couldn't go but it was a hilarious moment when we were there.
Read the full transcript
23:34Everyone was like, dude, where's Sam? And I was like, oh, he can't come. He just had a baby. And then everyone's like, oh, yeah, yeah, yeah. And then nodding. And then one guy goes, wasn't that two and a half months ago? And then we were all like, yeah, what the hell? And I hadn't even thought about it. You can totally go for two days and it's two and a half months in. And so then we all laughed at you and then moved on. It was two and a half months ago, but I committed to three months. I committed to three months. I had to stick with it. So that's point one. What's point two? Point two. What do you think of my not vlog video there what could we have done better so i was i wrote this down to let you know i don't think you can have any of that music on there you know i think it's gonna get taken down no i think it's gonna be fine connor price that's connor price's song he was gonna attend the camp it's fun the first song was dropkick murphy's the first song is fine and it's gonna be absolutely fine nothing's gonna get taken down this isn't like a like oh, I just got to ask for a mission type of thing.
24:31It literally won't... The algorithm is going to prevent this from going live. So I think you have to change that song. But it's great. I thought it was great. Okay, Narc. Okay, third question. Third question for you. Have you noticed this trend? Part of this is me just showing you a vacation photo album, basically. But the other part is noticing that I think we started a movement, dude. I think I just fucked around and started a movement. So I didn't mean to do this. Did you just invent blogging? No, not the blogging. The movement is of these kind of like man camp active conferences. I don't know.
25:09I don't have a good name for it. I'm thinking this comes up like a man business camp type of thing. So I did this camp MFM thing. Then I started noticing other people who heard the podcast were like, oh, you know what would be cool? Like Sean did it for basketball. Let's do it for something else. And so I have a few of these that have now started. So our boy Danny Miranda has like a running club type of thing. Yeah, dude. I see them out there all the time. There's like 50 of them. Looks like a blast. Pat Walls from Starter Story was like, hey, what if we did this for tennis, pickleball, whatever?
25:38And they called it the MRR Open. That's pretty good. Great name. That's a great name. Better than our name. Shit. This guy in Hampton messaged me and he goes, hey, heard about Camp FM. So awesome. Had the same idea. This guy, Victor, he was like, I'm going to do this for poker. And so he did a poker getaway weekend rented a house, invited a bunch of people, and they just played poker all weekend. I think this is the new wave of getting... You can either just get together for drinks, but guess what? The cool kids don't drink anymore. Everyone's sober as a salad. Dude, isn't it insane? Did you see Whole Foods announced the most popular beer that they sell?
26:15Do you know what it is? It's Athletic Brewing Company, a non-alcoholic beer. A non-alcoholic beer is the top selling beer right now in Whole Foods. Is that insane? No one drinks. Yeah, no one drinks. So nobody drinks anymore. So what are we going to do? Get together and just, you know, suck our thumbs? This is not going to work. So next thing, nobody wants to just sit at a conference or, you know, like a lecture hall and just sit there and listen to speakers. Kind of boring. You want to weave it in with these things. So I think this kind of active conference thing is cool. I think more people should make these.
26:46You can invite me. I would love to know about them and then politely pass just because I don't like to leave the house that much. but I think more people should do these and I'm hoping that I'm just hoping that I get credit for starting this movement and I know people are going to go out and say no no this has been going on forever but that was the past but I'm the present future and I just needed to tell you that. I think it's awesome. I want to go to the next one and I'm going to make it a point to go there and make a big deal out of it because I do have FOMO after seeing that video. Good job.
27:15I mean vlogging I don't care if you're giving birth next year when it's happening. You better be there. it uh dude vlogging sucks by the way did mr beast made fun of you in that video or he made fun of he was always with the camera was he giving you guys a hard time for having a camera there yeah because i showed in you know with a camera following me basically and uh the funny part is always with the camera that's the first time i've ever done a vlog as evidenced by the fact that at the end i was like that's vlog kind of sucks let's just make a video out of it um but it was really fun actually having a guy there this our buddy max came and uh he did a great job it's really embarrassing.
27:47I see a lot of people like vlogging and walking around and they have a guy following them on camera. It's quite embarrassing. It draws a lot of attention to you. I find it to be very humiliating. The upside. You might get famous. The downside. You're immediately humiliated. Alright, let me tell you about something. I'm going to talk a little bit about the best business in the world. Now, this business, Chamath, who I think is coming on the pod actually, has said, it's the singular best business model and monopoly ever created. This is easy for you to guess, right? Ritz crackers. No, it's got to be Google.
28:26Google. Yeah, Google. And so I wanted to talk to you a little bit about Google and search engine stuff because I've been interested in this for years. I've been interested in DuckDuckGo, which I called that shot. I think I missed it. I thought it was going to grow a lot faster than it actually has, but it's like slowly coming about. This is going to be the episode where we take credit for things that we had absolutely no part in and actually didn't call a shot. And in fact, kind of doubted it. Yeah, it's like, hey, do you like making right hand turns on a red light? I invented that. I was doing that when I was 16.
29:00Yeah, I created it. I created that. And so the reason, let me tell you why I've been interested in it. Type four athletic fitting dress pants.
29:15hey the autocomplete didn't even had no idea what i was doing there that's not a common search thick boy pants yeah all right i was searching for this the other day and i had to scroll down so far to get to a website because if you look through like the first it's it's like tons and tons of images is that what you see so i see tons of images so i see a whole shopping carousel. Then I see a couple of ads and then I scroll down, I see Amazon. Okay, yeah. Go ahead. So you got to scroll down a ton to get to a website. It's actually quite annoying. And so Google's been pissing me off. And you just talked about how they have gone through some stuff and you still believe in the company.
29:57I'm slowly starting to lose faith in their company because their search has been really shit. And it's starting to piss me off. And so I've been looking for other alternatives. Did you Google for them? Did you just Google search for alternatives? Yeah. I mean, it's like, even though I hate it, I use it. It's like an abusive lover. But I was doing some research on when they first started. So Google started in the late 90s. And when they did, Sergey and Larry, the founders, they created this paper called The Anatomy of Large-Scale Hypertextual Web Search Engine. Riveting stuff. Please take our power writing course, Larry Page.
30:33That title is awful. and in that paper they talk about like what they think is possible with a search engine and and they kind of started from an academic point of view which is pretty cool though to see like their their predictions and there's this one line it says in general it could be argued from the consumer point of view the better the search engine is the fewer advertisements will be needed for the consumer to find what they want and then he goes he says the goals of the advertising business model do not always correspond to providing quality search to users. So like 30 years later, they just went back and edited it and they're like, nah.
31:09Yeah. The subtext on there, like the subheadline is just psych. Like they just like, and then they said, for this reason, as well as for this reason, we expect that advertising funded search engines will be inherently biased towards the advertisers and won't be aligned with the consumer's needs. And they actually go on to say that they think a subscription service search engine is actually the answer. Of course, that is the opposite of what they've eventually have become. Google is a$1.5 trillion company, a market cap company, and 95 % of the revenues come from search. And it's the greatest business model of all time.
31:50I don't know how many people work at Google exactly. I think over 100 ,000. But I would imagine that you could basically fire everyone. but like a thousand people. And the company would just thrive. It would be the most profitable company in the world. And the crappy part about Google, well, I guess it's good for them, bad for us, is that their moat is quite simple, which is the more people who use the search engine, the better it understands which results to give you. And so it's just going to get better or supposedly better and better and better, but harder for a new person to create an alternative.
32:22Now, ultimately, I think actually OpenAI is going to be an alternative. Gardner had this report. where they said by 2026, they think 25 % Google search is going to be reduced by 25 % because of AI. But I found a new alternative that just launched publicly a few days ago or about a month ago. They've been around quietly, but they had a big launch coming out party the other day. And it's kind of cool. So it's called I actually don't know how to pronounce it. It's Kaji. Yeah. Sorry. Good start. I mean, how do you say this word? K-A-G-I. Yeah. Kaji? Kaji? Kaji? Yeah, I don't know. But it's got an interesting premise.
33:02So it was started by this guy named Vladimir. And the premise is that there are zero ads, and it's$5 to$10 a month for a subscription. And I think that's an interesting premise, but I don't think that that would work that well. However, this guy's story is pretty interesting. So he started bootstrapping this business in 2018, slowly started making progress. us. And at this point, he's got about 30 ,000 people who pay for it. And if you go to Kaji.com, K-A-G-I.com slash stats, he reveals all of his stats. And so you can see the number of paid members. You can see how many searches are happening per day.
33:40All of his stuff is pretty transparent. And I love when people do that stuff. It's so fascinating to see. And the reason he had this big launch recently is because they just raised$800 ,000. and very stupidly, it looks like they're spending that$800 ,000 to buy 20 ,000 t-shirts to send to their 30 ,000 members.
34:05So Vlad has some questionable judgment when it comes to finances. Is that real? Yeah. So they blog all about the business. So if you go to their blog.kaji.com, they blog about everything that's going on in the company. And so they're actually pretty transparent. And in the thing, he was like, yeah, and we're going to be sending out 20 ,000 t-shirts. And I was like doing the math. And I was like, oh, that's like 800 grand.
34:34So that's questionable. All right, let's take a quick break because I got to tell you a story. Let me tell you the first time I tried to run payroll for my team. I was using a traditional bank and you know the type. It's got a janky interface. It's built like a 2002 tax form. And it was open only during business hours. and I hit send and it froze. They flagged the transaction. They locked my account. They put me on hold for 45 minutes and then they told me I got to visit my local branch. And that was the day I started looking for a new banking solution. After asking a few founders what they were using, I found out about Mercury.
35:03And so now my payroll is two clicks. I can wire money. I can pay invoices. I can reimburse the team all from one clean dashboard. That's why I use it for all of my companies. And so do 200 ,000 other startup founders. And so if you're looking to level up your banking, head to mercury.com and apply in minutes. Mercury is a financial technology company, not a bank. Banking services are provided through Choice Financial Group, column N8, and Evolve Bank & Trust members FDIC. But he has this whole manifesto online, and it's pretty fascinating. And this is the type of entrepreneur I really like because he's got this blog, his personal website.
35:38He says, I'm dedicating the work. By the way, be honest. When you found out the founder's name was Vladimir, already you were pretty biased to like this thing, right? Yeah, I'm in. You can add an extra million to that valuation if your name is Vladimir. Yeah, I'm in. A general rule, and I have no arguments with that. Yeah, he's born in Yugoslavia, and he had all these little indie hacker projects for a long time. Worked at GoDaddy. So he's a very technical guy. He seems very savvy. He was a VP of product at GoDaddy. He had another company called ManageWP, which was a web application that helps users manage WordPress sites.
36:10And that got to a couple million revenue. So he has some experience. But he has this blog where he goes, I'm dedicating this work on Kaji to my three children while I try to make the web a more humane and friendlier place for them. And I started reading that. I'm like, okay, I'm really fascinated by this guy. I'm very interested. And so on his blog, they talk all about the company and how it's working and things like that. And he's got all these great lines about how he's like, paying for search engines is unusual. But that's the only choice if you want to build an independent search engine that isn't ad supported.
36:41You could do donations, but I don't think it's going to work. 5 billion people use a search engine. 99 % of people are never going to pay. The thing is, the tiny minority of people who think differently, the 1 % that will pay, it's still quite a large number. That's 50 million people. And he talks about 20 years of ad-supported search have created resistance to the idea of paid search. But a lot of people are already coming to the realization that the predicament that they found themselves in with ad-supported search is not good for them. And my point through all this is, I think I agree with this guy.
37:09The issue is that I don't think he's going to win. I think I agree with all of his stuff about subscriptions and I'm on board with that. And OpenAI is really good for that. But I'm very fascinated with guys that are going after Google at the moment. There's been a few. There was You.com, which I don't think is that intriguing. There was Neva.com. So N-E-E-V-A. That was one. And there's a few others. And this is a type of idea that if you told me that you're going to launch this, most people as well as mine, gut reaction is like, there's not a chance you're ever going to be Google. But when you start thinking about it, I think it's really interesting.
37:47And I want to know what's your opinion of these people trying to build these search engines? And do you actually think that any of them will work other than OpenAI? Well, I think I agree with you on pretty much all fronts, which is that Google search over time has become more and more just you search or something and you get an ad. And they add the result, the top half of the page is ads. And that's what you get. Google, I think in Kaji's website, it says that Google, if you just take their revenue, divide it by the number of users, on average, I believe that they make like 300 bucks a year off of each customer.
38:20I think it's like 277. And so that's 23 bucks a month. And that's like what you're worth to Google. So what this guy's doing is basically saying, hey, instead of Google making 23 bucks a month off you, you pay us 10 bucks a month and we'll have no ads. And I think that I agree with you, which is that the big threat to Google is obviously the AI driven, uh, and Google's trying to become that themselves. So, you know, whether it's chat GPT or it's Google or it's Bing, or it's some new one that we haven't heard of perplexity or whatever else, that is the big thing, which is it's a better experience.
38:51And so they're trying to win with better experience. Then you have duck, duck, go, which is basically like we are the anti Google, right? We're going to, and Kaji's in that same bucket. We're the anti anti whatever. I would say DuckDuckGhost is the surprising success, the amount of traffic they had. We did a whole thing on them a few episodes ago, which was looking at the traffic numbers and how stunning they were. What I think is cool about Kaji is that it doesn't need to beat Google. This is just like, I'm going to build this. I'm a cockroach. I'm going to build this business and you can't kill me because I'm going to be supported by my customers.
39:22Right now, it sounds like he's probably making like, what, two to three million bucks a year in revenue? I think it's closer to one to 1.5. of subscription revenue. Let's say 1.5 million in revenue and he's probably able to run the thing break even or profitably at that rate and he'll just keep crawling. Next year he'll be at 40 ,000 members and then next year he'll be at 60 ,000 members or whatever. He'll just keep growing and it's not worth killing if you're Google. It's too small to matter and he doesn't have to become huge. I think what he's saying is my mission is for people that believe in this, he says the 1 % who would pay, I don't think it's 1%, I think it's like 0.1 % that would pay.
40:00Here's your option. And now the question is, how good is this? Like, for example, you're into this. Did you sign up? Hey, are you using this now instead of Google? It's so hard to use something instead of Google because they're the default everywhere. Yeah. And basically, my frustration with Google is borderline to the point where I'm like, all right, I'm out. But the thing is, is that I'm like, six or seven more times, Google, and I am out of here. the issue is like i've logged in with everything like on chrome you know what i mean i'm like shit i gotta type in all these passwords this sucks but i mean i definitely you know chat gpt has definitely taken away at least 30 of my like google time which is a pretty insane number actually and i uh we're gonna have to do an entire episode on sergey bernan larry page these guys are crazy fascinating and i was reading a little bit about them when i was like researching how google started and they were like huge shitheads and like Sergey Brin dude they were shitheads you're gonna have to explain that one to me so Sergey Brin he's got this uh he had his resume online and in the code he put uh if you expect the source code of his website you'll find Brin's hidden objective laid out bare which is and this is in quotes this is exactly what he had in the code I want a large office good pay very little work frequent expense account trips to exotic lands would be a huge plus is that real that's insane that's on you can go to the website right now and find it you would never expect somebody who's like innermost goal is a big office no work expense accounts to create fucking google yeah it's funny it's funny and then there's stories of larry page um where he he was just kind of like they had this like combination of just like being really blunt and just not totally understanding normal human emotions.
41:57And so Larry and Sergey, they took pride in the fact that they would argue with each other. And they would call each other stupid and be like, your idea is so stupid. That's dumb. Why are you... And they would fight and fight and fight. And then one person would win. And then the other person would concede and be like, oh, your idea is better. And they would bond over that. And then they're like, to all the other employees, they're like, that's what you all need to do. Unfortunately, when you're at 50 or 100 or 300 people, Most people aren't like that. And there's these crazy stories of like, apparently, do you know how like a janitor, when they take out the trash, oftentimes and they replace the bag, they'll actually leave an empty bag at the bottom of the trash in case someone else wants to take it out.
42:34And they're like, well, there's a bag already there for you. Larry saw this and he was like, that's the most efficient way I've ever seen anyone clean. That is brilliant. And he made this whole like memo about how the janitor does that and how brilliant that is. And he's like, why can't you guys be like this? In fact, everyone in the office needs to be like this. Here's the new rules. And he laid out these like eight rules. And it was like, if you think that your idea is right, go straight to the person who's in charge and tell them exactly what you think and don't hold back. Or it would be like, if you are working on a project and you are not providing value, leave that project right away and go and let the doers do what they need to do and just get them coffee and just serve them.
43:10And he would do all these things that are very logical. If you disagree, some more. Yeah. He would say these crazy things that you hear them and like, Yeah, that's more productive. Unfortunately, this whole thing called human emotion gets in the way. And so it's probably not practical when you have 500 employees. But there's all these stories about how these guys would behave. And it's very fascinating. And they were shitheads when they first started. I think Google right now is going through this period where their CEO... I think it sucks, to be honest. And so I think they're going to come back.
43:40But right now, I'm not bullish on Google. I think they're going to be around for a real long time because they're so big. but I'm eager to see something come and kind of crush them. Yeah, yeah. Well, I think the funny thing about all like crush them type of ideas is that when a company is really successful, it's like a giant castle with a huge moat. And everybody who tries to like siege the castle, it's like the kajis of the world. They're basically trying to cross that moat and take over the castle. And it's too hard. The castle is too big, too strong. The moat's too big, etc. And what ends up happening is that the thing that beats that castle is not somebody who comes and takes their land.
44:19It's somebody who just walks over like two miles and is like, hey, this is actually like, this is fertile land over here that everybody's ignoring. They build a new castle over there. And actually the thing that diminishes the castle is that that original castle is just no longer as relevant. Like the world and the attention has moved. The new plants that everybody wants, they grow on this other land over here. And nobody took your thing, but you became less relevant in the world. Yeah, no one wants that thing anymore. Microsoft didn't defeat IBM or whatever by making, you know, by beating them at their own game.
44:49They were like, oh, actually the game is software. It's operating systems. And then the things that beat the Microsoft monopoly and like Microsoft, the biggest tech company in the world, got then beat by the Googles and the Amazons and the Facebooks of the world, which were like, hey, okay, cool. You can keep the operating system. We'll take the internet. And Microsoft missed the internet. The internet was the place. And then even when the internet was the place, then it was like the companies that made it on mobile were the ones. they were like, oh, cool. Yeah, you can have that desktop app. We're going to make Uber and we're going to create these new mobile companies, Instagram, WhatsApps, and they outpaced the growth of Facebook.
45:26And so now the question, now the thing is, well, AI is here and crypto is here and these are the new lands. And then the big projects that are getting built here, they're just competing for something in a different game altogether. And I think that's really what ends up happening more so than somebody overtakes a company like Google. It's that Google becomes less relevant. You don't need search. Why do you not need search? Well, because the AI just does it. Why would I go search for links? That doesn't even make sense anymore. I don't need that. I need the answer or even better than the answer.
45:55Oh, I just need this little AI agent that's just going to look at what I'm doing and then do jobs for me. I don't even have to go search for an answer. It knows the answer and then it does the task. That's where this is going. And so whoever does that is going to actually be the one that is the next Google without even creating a new search engine. Right. And that's nine out of 10 times. It seems that's how like big innovative things come about where it's like, you know, all these people are trying to make the world's fastest car and they're trying to make a V6, turn it into a V8. And then we're going to turn into a V10.
46:25We're going to put more cylinders in more horsepower. And then you're like, oh, this electric car just like went way faster and it has zero cylinders. You know what I mean? That's exactly how it works. did I tell you about the um my boss who his boss was Larry Page and what he told me so he didn't tell me many stories but he told me one which was I came in once and I was like yeah um I was like presenting my goal I was like yeah our goal is to do you know 9.1 this year uh what I remember what the metric was like 9.1 million users or something like that and he's like you know what Larry Page used to say when I would uh present a goal it's like I'm gonna do nine of something he's like he would just say, that's a wuss goal.
47:05If you can do nine, you can do 10. He's like, never set a goal at nine. And I was like, what? And he's like, I just said what I said. If you can do nine, you can do 10. Saying nine is just a wussy way to go about things. And I was like, he told you that? He's like, yeah, he would tell everybody that. And so I stole that and I made the change. And then now in my companies, I do the same thing. If anybody ever comes to me like, yeah, we're going to do four and a half. Now you're going to do five. We're going to do 9.2. No, know you're gonna do 10 like if you can if you're gonna get 9.2 you can get to 10 trust me it's like when uh 5 10 guys lie and they say they're 5 11 it's like dog just say 6 1 be the real thing
47:48yeah act as if my friend act as if um all right that's the pod 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, let's travel, never looking back
48:08Hey, let's take a quick break because there's a quote that I love I want to read you. It's that we shape our tools and thereafter they shape us. And as an entrepreneur, if you're using a bank that was built in the 90s, you're operating like you're in the 90s. And trust me, I've been there. Clunky portals, random holds on your money,$50 wire fees, and then being told, please visit your local branch. Well, that's why I switched to a different type of banking solution, Mercury. It turns your financial chores into a smooth workflow. You can do wires, invoices, cards, reimbursements, two clicks, and I'm done.
48:40If you're already using Mercury, respect. If you're still using one of the old big banks, I got questions for you. So go visit Mercury.com and give it a test drive. Mercury is a financial technology company, not a bank. Banking services are provided through Choice Financial Group, Column 8, and Evolve Bank & Trust members, FDIC.
From the publisher
Episode 561: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) tell the story of a niche plant blog becoming a $27M/yr gardening empire.
Want to see Sam and Shaan’s smiling faces? Head to the MFM YouTube Channel and subscribe - http://tinyurl.com/5n7ftsy5
—
Show Notes:
(0:00) Intro
(2:00) $27M ARR gardening influencer
(14:30) Fruit Marketing: How Hass avocados became #1
(23:30) New Movement: Man Camps
(31:00) Search Engines - Best Business In The World
(44:00) Sergey Brin and Larry Page Stories You've Never Heard
—
Links:
• Plant Daddy on YouTube - https://www.youtube.com/@epicgardening
• Epic Gardening - https://www.epicgardening.com/
• Kagi - https://kagi.com/
• Camp MFM Sizzle - https://tinyurl.com/5bam77eb
—
Check Out Shaan's Stuff:
Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd
—
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
My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano
Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more.
—
Other episodes you might enjoy:
• #224 Rob Dyrdek - How Tracking Every Second of His Life Took Rob Drydek from 0 to $405M in Exits
• #209 Gary Vaynerchuk - Why NFTS Are the Future
• #178 Balaji Srinivasan - Balaji on How to Fix the Media, Cloud Cities & Crypto
• #169 - How One Man Started 5, Billion Dollar Companies, Dan Gilbert's Empire, & Talking With Warren Buffett
• #218 - Why You Should Take a Think Week Like Bill Gates
• Dave Portnoy vs The World, Extreme Body Monitoring, The Future of Apparel Retail, "How Much is Anthony Pompliano Worth?", and More
• How Mr Beast Got 100M Views in Less Than 4 Days, The $25M Chrome Extension, and More

