Video summary
Noah Kagan, founder of AppSumo and a self-described "$200 million man," opens his financial picture with transparency regarding net worth calculations that often confuse observers. While online estimates vary wildly due to equity valuations versus liquid cash, Kagan clarifies he currently holds about $1.5 million in personal bank accounts and owns roughly 60% of AppSumo's value, excluding the company's full equity or mortgage liabilities from his immediate liquidity picture. His wealth stems largely from a unique business model that sells lifetime software deals to small businesses; unlike traditional SaaS companies with high monthly burn rates, AppSumo negotiates one-time payment bundles for popular tools like MailChimp and Evernote alternatives (SendFox, Tidycal), splitting revenue 50/50 with creators. This approach generates significant upfront cash flow without inventory costs or heavy office overheads, allowing the company to operate leanly even during economic downturns where consumers seek savings rather than luxury spending. Kagan's journey from a college dropout at UC Berkeley who sold candy bars and ran seven different digital businesses in his twenties is defined by an intense drive for persistence over perfection. He recounts being rejected repeatedly before Mark Zuckerberg hired him straight out of school, offering $60,000 plus equity instead of the standard salary because Kagan was so convinced Facebook would become a massive success that he preferred to take more ownership risk. After leaving Facebook at age 23 and working through various roles including Mint.com and GameStop, he founded AppSumo in 2014 after validating his idea by pre-selling software deals for just $50 over the weekend. He emphasizes the importance of "test and invest" as a core operating principle, urging entrepreneurs to validate demand before building products—a lesson learned from failed ventures like BetterCade—and warns against wasting time on ideas that lack immediate market interest. The conversation shifts to personal habits and lifestyle choices that reflect Kagan's philosophy of enjoying wealth without succumbing to excessive ego or unnecessary constraints. He details his daily routine, which includes reviewing calendars for high-leverage activities and practicing "Morning Pages" journaling inspired by Julia Cameron's *The Artist Way* to maintain creativity despite being a business-focused individual. His spending habits reveal a man who lived frugally in his twenties—sleeping on floors or friends' couches—to save capital for later enjoyment, contrasting sharply with the lifestyle inflation many entrepreneurs face today. He currently spends around $10,000 to $25,000 monthly personally and invests heavily in Rolex watches as mementos of life milestones rather than purely financial assets, noting that while they hold value well, he buys them for emotional significance tied to events like getting engaged or earning a pilot's license. Looking toward the future, Kagan addresses challenges such as scaling his leadership team with experienced sales and revenue officers who can manage larger organizations beyond their current startup backgrounds. He admits that despite generating seven-figure salaries recently, he voluntarily cut his own pay in half last year to fund hiring and growth rather than hoarding cash, illustrating a commitment to reinvesting profits back into the company's expansion. His ultimate goal isn't an IPO or public listing but maintaining autonomy over AppSumo while continuing to create content like YouTube videos and books that align with his passions. He concludes by sharing insights on recession resilience—focusing only on essential services people will always need—and encourages others to find their own "must-have" value propositions rather than chasing fleeting trends, ensuring long-term sustainability regardless of market conditions.
Read the full video transcript
I'm Noah Kagan and welcome back to the
iced coffee hour with Jack and Graham
and I think your show in the past 100
episodes have done about a quarter
million dollars that's really good
that's a fantastic guess 214
535 videos that was pretty good yeah not
the not the closest but reasonable so
okay well thank you so much for coming
on Jack has actually prepared his own
intro for this yeah we're gonna start
this off guns of Blazing okay
idlenetworth.com says you're worth 190
billion oh yeah with a billion dollars
okay techie gamer says you're worth 45
million with an m and digital net worth
says you're worth
three million ouch yeah can you clear up
all of this confusion because we have
these websites that say people are worth
these amounts they have no idea what
they're talking about or do they yeah I
think what's interesting about net worth
is there's different types of
entrepreneurs so there's cash worth
entrees like how much cash do you
actually have in the bank how much
liquid money and so I think my personal
bank has like 1.5 million cash right now
and I can show it we can show you guys
having a problem uh but the net worth is
is challenging on the other side of that
is if you have a company you have Equity
so we have appsumo.com
um this year we'll do about 100 to 120
million so how much is that company
worth quarter billion billion and then I
own about 60 ballpark net worth I looked
at mostly from cash I actually don't
look at the equity probably somewhere
around 25 million 25 million not bad not
bad at all not too shabby yeah not
include Equity of appsumo got it not
including the equity of appsumo and not
including mortgages
yeah when I do my net worth how much is
my house worth how much is my mortgage
and you just assume the company could be
worth nothing and anything extra a bonus
I take it yeah smart way to think about
it yeah yeah you can't pay bills with
effort well you're clearly doing
extremely well let's go through your
story and figure out how you got to this
point and then we can talk about that 25
million dollar net worth what's that's
comprised of and everything yeah in a
bit sure where do you want to start well
first of all I love your videos where
you go up to people's houses just random
people knock on their door and say how
did you make a million dollars and it
seems like from those videos you've
always been an entrepreneur has that
always been the case since the very
beginning
um yeah yeah I was always trying to like
finagle you know
yeah I don't know like go to Costco and
buy the candy bars and take them to
school and try to Arbitrage on them you
did that yeah you're one of those kids
it's kind of done that like it's just
like intrinsically in me like I've Loved
money yeah and now I'm just trying to
enjoy it which is actually kind of a
hard thing really when you make it it's
fun to make but then actually spend it
and enjoy it as a it's a process yeah
that's interesting how much were you
making selling candy because kids in my
school would get in trouble for doing
that I never understood that they'd come
and like you'd buy a Snickers bar for
two dollars that they bought for like a
dollar I thought it was a good business
they were helping everyone out like they
took initiative and they were the ones
like getting their candy taken away or
like you know called their parents and
be like no they're selling candy
illegally it's like what's that well
it's kind of interesting thing about
what's the best way to parent like I
don't have any kids yet or anything like
that but like how do you encourage
people on your team or kids to actually
go and like push the boundaries and like
break rules yeah because a lot of what
we're taught is like how to follow so
it's like how do you untrain or unlearn
those things so uh how much I make
selling candy I don't know not a lot
okay the first one I started making was
in college so when I started first just
like starting as many businesses I could
what type of businesses did you start in
college
um I started called comegetused.com what
uh it's a book exchange for used books
yeah some get used I'm thinking like
okay
different ways okay sure I just I was
just like starting a lot of things and
it was so cheap cheap to start so I
started a site called everspeed.com I
still have it it's an import car model
website okay so like I just like to
import cars and then like these hot
models
um I did a site called collegeup.org
which is Craigslist for college students
uh did ninjacar.com discount card for
students so I basically was just like
starting as many different businesses as
I thought was like interesting were you
a good student yeah yeah I went to
Berkeley
um I don't know how I got in yeah I
think I'm like I'm I've always thought
of myself as like a b-plus or a minus
like I'm doing just enough to get the
good grade but I don't have to do all
the work you finagled finagled yeah yeah
you got your way in there um but yeah
actually until my senior year I didn't
realize I could like not go to class and
still get good grades interesting and
then what about after college didn't you
finagle your way into a pretty big
company now uh yeah so yeah interesting
thing was in college I didn't know how
people figured out what to do for a
living like how did you guys figure out
your careers I just kind of fell in for
me it was real estate but I just knew I
wanted to do something for myself yeah
yeah I was just in love with YouTube
growing up I watched it a ton yeah so my
whole generation did and that was like
the dream I didn't think I would ever be
in the space but it was the dream and
somehow it just kind of it happened Jack
sent me seven emails in a row yeah
without without me or seven seven
without a response
hey I want to come work for you it was
over like the course of like four months
yeah yeah four to five months since like
emails dude I really should yeah it
worked though right what made you keep
going
um
I it's I just wanted it I don't know
like I was at this point where I tried
so many different careers right careers
I was doing like Drop Shipping I created
all these different ideas these plans
with my friends all these businesses
nothing was stock trading too stock
trading I did penny stocks like
everything nothing worked and this I
haven't tried it yet and I continually
wanted it and I persisted and I just
kept going and then he gave me some
tasks and I worked as hard as I could at
it so yeah I think it's faster than fun
things we don't quit on like what are
the things you're just like I'm gonna
keep going forever yeah it's it's a
different kind of want right like you
can want things like oh I want to make
money doing penny stock trading or
whatever but maybe you don't really want
it you're attracted to something else
like the money you could get from it but
with this it's like it's like it's a
it's a dream to not necessarily make
money from YouTube but to do YouTube and
to like be a in production and stuff
like that so I guess I want it for
different reasons and I wanted it more
good for you man so thank you yeah I
wonder what what's the difference
between you and most other people that
like have a dream of being a YouTuber or
dream of being a real estate or dream of
being in Tech or whatever it is and then
like the reality of like oh [ __ ] this is
actually kind of hard yeah so that's
something that I think people think
about like when I was encouraged people
was like what are you waking up and
doing for free and then how do you make
that your career yeah so for me it's
like I've been blogging and I feel like
a dinosaur saying I've been blogging
since 2000. like okay dork.com my blog
it's like been there since the beginning
of the internet but like it's been there
for a while I love creating content and
um like what I do at appsuma.com I
promote we promote products like I just
go and find cool products we get a deal
and we like deals and then we just
promote them and then somehow we make
money doing that yeah so yeah just all
along I think I think it's really
interesting to find the persistence like
our domain name sumo.com it was seven
years to get that name seven years to
get your domain get the domain yeah
we're taking appsumo we own sumo.com as
well wow a million and a half dollars
how'd you get that one and a half
million dollars yeah yeah okay uh
well first I found out who it was it was
like one of the not the wealthiest but a
wealthy person in India he owns a
Hindustan times the third largest
newspaper in India okay and then I
basically called emailed message slacked
they didn't select Skyped for seven
years and then finally it was like all
right well how do I make an amount where
they're just gonna be like okay we have
to take this offer and so at a million
and a half dollars and I structured it
interestingly where I give them half a
million up front and then the other
million was over five years so we're
still paying it off sixteen thousand
dollars how important was that to get
sumo.com because I feel like now for
domain names it's not that important I
regret it really yeah yeah I'd rather
have a million and a half dollars but
you can't live in a domain name you can
live in a house right that's true
um so yeah but I think it's interesting
what do we persist on like what are you
like continually like keep you're like
all right I'm just gonna go that's some
good advice find what you do well that's
why I feel like people need work
experience so you're talking about like
how do people in college know what they
want to do but it's difficult going from
high school where you're told what to do
in what order and like get this task
done into college where it's like more
of the same but kind of like on your own
a little bit more more without that work
experience in between I think people
should have mandatory two years you
gotta get a job anything yeah I would
love that what kind of drone anything
but just like hey you got to work you
got to get two years work experience you
can figure out whatever you want to do I
think within those two years you'll
you'll find out very quickly what sort
of career you want to go into or like
what you maybe gravitate more towards
than something else yeah I think his
kids like it's not kids but if you're in
like you're 20 I'm 40 like sound like a
dinosaur with this internet right I've
been doing it for a while and but I
think is when you're young it's like
start a podcast put yourself out there
go find interesting people to be uh be
around like when I was in my 20s I
worked at Intel I had no Advantage I
don't have a network I didn't have like
any audience or any sort but I just
started hosting things I have a thing
called uh Community next entrepreneur 27
it was just like events it was just like
bringing people together and like that
is how it I built up a network where
like Tim Ferriss and I are talking or
ramit Sethi was famous and like Peter
Thiel like Peter's from Facebook but
like Max levchen James Hong from hot
around so all these people was just like
all right how do I be around people to
see like what's the buffet of business
that I like who can I be around and then
how can I say that to figure out my
career yeah because I was like I think
my 20s it was
just like a lot of different like trying
to find out who I am didn't get a what
John did he get right outside of uh uh
my first job out of college was at Intel
okay and so that sucked that was
horrible how long are you making yeah uh
my first paying job was 50 000 a year
with health benefits
2004. so it was a pretty solid like
salary that was pretty good I lived in
my mom's house so I was like before now
it's like a cool thing now like you guys
generation loves living in your parents
house it's like that's Frugal yeah dude
you're saving money I didn't really
start renting until I was 30. right so I
lived on floors for a year okay uh when
I was making a hundred thousand uh I
just like lived in my aunt's basement
like I was just trying to live as cheap
as possible so I could do what I really
wanted nice
um but yeah so Intel not doing [ __ ] but
running all these companies trying to do
events and trying to network and blog
and
um
that and I just cold emailed Facebook uh
my resume yeah and I was like this if
I'm gonna go start a company but if
there's one company to go work at this
is one I'm really excited about and so I
always think that for especially people
earlier in the crew it's like what are
you already doing all day like what are
you working on like are you on Tick Tock
all day like you're watching YouTube
um try to find a job doing the thing you
already so for me it was like at that
time Facebook was so cool I was like oh
maybe I can try to get a job here or I'm
just going to start my own company what
year was that 2005. wow at the very
beginning yeah super early so like
Dustin's there Mark's obviously there
Peter Teal's around Sean Parker yeah oh
my gosh uh it was insane so yes I'm in
my resume I think one of the things when
you're applying for jobs that uh the bar
is so low everyone sucks so much
like the bar's just so low to be
excellent nowadays you really don't have
to do anything like you can do so little
uh so for me like I brought mock-ups of
Facebook I'm like okay here's your site
here's what I think you should do about
all these examples of work I was doing
and even today like when people were
playing jobs at appsumo I'm like did you
make a website did you do anything
creative did you follow like no one
follows up just do a follow-up even yeah
what did you study at Berkeley so I did
CS for two years and then I dropped out
because I wasn't smart enough I was like
in these classes and I was like I could
probably do a better job managing these
people right so let me go and like
figure out just understand it enough
then I ended up majoring in like
business economics but a lot of the
companies that you're running while in
college like you said you had like seven
or so of them they that that would
require to create those companies
because they're all digital like some CS
knowledge you did that yeah I would just
hack it was just super hacky I mean I
would hack like WordPress or hack PHP
yeah also did any of those businesses
that you ran in college did they go
anywhere or were they profitable at the
time
um so one of the ones I think it's
trying to look for like what's the like
what's the market inefficiency so if
you're doing like advertising like where
is the market that no one else is
advertising on like tick tock it's
pretty early yeah and people are
starting to do it so I think that's an
advantage for me I was a senior and
there's all these freshmen there I was
like huh there's at least freshmen I
want internships and jobs so maybe I
could actually just like hire them for
cheap and then go to local stores and be
like hey we'll do your marketing to the
college and I use these like you know
freshmen so that actually made a few
thousand but and when I think about
businesses like you just got to be in
the ocean you got to be in the game
right you got to be on the surfboard in
the ocean and so for me by doing that
that led to us creating ninja card and
ninja card was just like one of the guys
named Kenny was like hey why don't we do
a discount card instead of like going
and pitching these businesses we have a
discount card
um and so because we were already active
doing that we led to the discount card
and that ended up doing 50 000 the first
year what was the process like for
interviewing at Facebook it's a bit of
my resume cold yeah so I just saw like
on the job description sent in the
resume uh had one recruiter phone call
second recruiter phone call and then I
came into the office uh the interview
there was with Dustin Moskowitz founder
of Asana co-founder of Facebook uh my
boss Doug Hirsch cook founder of GoodRx
and then one or two people and it was
just showing mock-ups talking about
Facebook like what do you want to work
on it was just like hey you're gonna be
a product manager I don't still don't
know what that means we have a few at
appsumo yeah I'm like what do you guys
do here but they're great and then
they're like you want to come build
products at Facebook there wasn't much
more to that it was just like chatted
with them showed what I already did I
think one of the things when you're
hiring someone it's what is your
confidence level of How likely they're
gonna be able to do the job so by
showing mock-ups by showing I've already
built a lot of college businesses by
showing like I'm very active doing this
stuff the confidence for them is like
all right well you can come and build
stuff at the website yeah how is your
pay back then with Facebook because I I
take it then they didn't have that much
money no yeah no it wasn't profitable
um I think they were just closing series
a with Excel uh two things were really
interesting about that they offered me
they're like do you want 60 000 and more
Equity or 65 000 less Equity I was like
I don't even want to pay I just want
Equity like I would have worked for free
in just more Equity because I was like
this is going to be gigantic what was
that evaluation
um at that time it was about they raised
20 on 100 so around 100 million dollars
give or take yeah wow holy cow so it was
pretty and then what was really crazy
there's some a lot of crazy moments
about working there first crazy moment
was like my first day on the job I walk
in and uh Doug Hirsch who's my boss is
walking out and I'm like hey
is there orientation like what happens
like I was just at Intel where it's like
sexual harassment training and like this
training get this trading I walk in and
Doug walks out and then Mark comes up to
me like I just fired your boss today
grab a laptop get a desk I'll see you in
a bit
now it's day one so that was pretty well
why do you get fired
um he wanted to sell so the other part
that was interesting is Mark anything
about you guys are how old are you guys
232 32 yeah 23 looking good thank you
good 23. and moisturize okay if there's
one thing people take away from this
episode you know dude you know I talk
about sunblock and moisturizer and
collagen pills you might want to start
what's collagen collagen is supposedly
it's debatable if it really works but
it's a pill that supposedly helps with
the skin restoration you guys do both
look really young dude by the way and
every day
are you getting facials
oh every quarter really sure every
quarter dude what do you think is that I
don't know it's like girls are doing
this stuff and guys now it's not to not
be manly or not it's like if I can look
good and not have to do that much work
to get there then I'm going to do it
officially they come in and they just
put all this crap on your face they
massage your face and then like they
peel it feels incredible by the way okay
it was that day that uh you missed out
on where I took everyone for massages
and facials and uh that was I've never
had that done before it was incredible
once a quarter yeah
yeah it was expensive how good is it how
much is it worth to look good Priceless
it was great yeah so but anyways the
point I was making earlier what would I
give more credit for and he is very
gifted and I've worked like I've got to
meet Bill Gates I've got to meet Steve
Jobs I've got to meet some of these like
Titans he came that I think that day or
a few days later and he was like I could
sell the company right now for a billion
dollars now imagine for you 24 and you
haven't offered you have the opportunity
to make like 600 700 million dollars
cash and he's like I'm not selling he
was 24. yeah and I was just like dude
that is some big balls that's some real
big conviction and I think in business
law it's like where's your conviction
and I admired his conviction and I think
as a as an employee there I was just
like this guy's serious and that was
inspiring he's like I want to take over
the world I want to connect the world I
think what we're doing is like like some
money let's see how far we can go that
was amazing how long did you work there
for I worked there for about a pregnancy
so nine months okay and then I got I got
fired what happened and what happened to
your Equity ah man I definitely uh I
would have liked it I didn't invest so
how it works in Silicon Valley is that
and this happens this is how we do it at
sumo.com as well is you get Equity let's
say some percent and you get your
percent over four years but you don't
get the first quarter of it until after
a year it's called a cliff so this is
like very standard like tech company
terms now some of them are doing like
five or six year terms which is
interesting so I had to stay there for a
year to actually get the first quarter
of it and at the time I had point one
percent of the company so whatever the
company's worth now I'd have 0.1 so
that's where I think the 190 million
it's not billion uh comes from
wow uh so I got fired nine months and
then I tried to fight for it I went to
um a few of the different people and I
was like I didn't fight aggressively
because part of me also thought like I
didn't really earn it because I wasn't
there for a year yeah but I worked like
that's all I didn't do anything else
it's probably how you are with Graham
and this stuff like I didn't do anything
but Facebook I lived with Facebook
people like that's all we did was work
at Facebook how'd you get fired
um numerous different reasons and it's
interesting now being on the other side
of the table where I've you know
unfortunately let go of people and I've
hired a bunch of people
um I think when in the beginning I got
promoted I even got raises because I was
excellent in the chaos and I was
excellent when it's like hey there's 30
people just figure stuff out and I
wasn't I didn't want to nor was I
skilled enough to scale with the
business like they got to we it was
about 150 people so 5x growth uh I was
number 30 and at 150. and so I there's
people at app similar that are growing
with our company from when it was four
million to now hopefully this year will
do 100 million plus and some people are
able to scale really well and some are
not so I think that was number one
number two kind of what you were saying
your dream was To Be Your Own Boss
my dream is to be my own boss and you
can't fight that reality and so I think
what a lot of people should do is
document their moments talking I think
being Gordon calls it artifacts document
where you're at in your journey where
you're at now and what's your fantasy
and my fantasy like I've looked at my
old journals it was like Be Your Own
Boss I can't believe I have to go to the
[ __ ] meetings I hate these meetings
and it's like huh so as much as
disappointed I knew I had a dream of
something else uh and third I I thought
the company could do better press and so
I did I put out some press early I was
at Coachella which I've never gone back
but I was at Coachella I hit up
TechCrunch and I was like Hey we're
launching this new feature
um I think you should write about it
because we weren't doing any press and I
thought I was like doing a good thing
for the company they launched it early I
told the executive team and then I think
that triggered kind of the final goodbye
wow got it okay working hand in hand
with Mark Zuckerberg what are some good
like employer fundamentals or principles
that you learned that most people on
that level should be implementing or
smaller levels there's a lot I think
number one is have a singular goal
you're going towards and we've
implemented our company over the past 12
years and even my previous companies so
it's like what is your singular one goal
in the business is it subscribers is it
revenue is it a number of customers
whatever that is and just have that
singular and have the company be very
clear what that is uh for our Channel
and I don't know for you but uh at
absolute.com it's 120 million gmv is our
goal for this year that's it one goal
and so Mark was very clearly singular
focused on one number and I just thought
that made it very helpful about
decisions it's like does it help us get
there or not so that was one thing that
was just like exceptional second thing
his vision was just really big sounds
like a pink thing but like he just had
like a huge Vision he was like weird
think about this it was like very small
mysus is bigger than us at the time but
from a leadership perspective he was
like we are going to connect the entire
world and we're gonna be a tool booth
for the whole internet
imagine like some 24 year old telling
you like a giant Vision like that that
was impressive you know versus someone
that's like hey you know I'm gonna try
to make 100 bucks a month right and so I
thought that was that was amazing for
him to think so much bigger and I'd say
lastly
um I've only started doing it more later
in my career
as a leader at appsumo which is how are
you really surrounding yourself with
great people and I think we hear this
[ __ ] but until you're around Excellence
you're like dude and he had Excellence
like our support people were phds from
Harvard so that level of like
impressiveness like Aaron siddick he
designed like Napster uh Sean Parker I
mean these guys are like Top Notch the
guys who created quora like it's a lot
of really impressive and that was like
him being able to surround himself with
that was really impressive now why do
you think Myspace failed because I
remember Myspace being so much bigger
than Facebook looking at Facebook and I
like Myspace because I could customize
it took me a while probably until 2006
or seven until I really started going on
Facebook where do you think Myspace went
wrong do you think Tick Tock can fail uh
they'd have to really screw up I thought
their fault yeah it would they would
really have to mess up I think Snapchat
when they did the redesign I moved over
to Instagram within 24 hours I just
completely abandoned my Snapchat when
they did that first redesign I think it
was 2017. I left yeah it's interesting
to think about
um why people are finicky or why people
move and leave things and then like what
can you learn so like at appsumo we're
starting to study we haven't done a
deeper dive but like why did Groupon
stop working because like our business
was kind of similar like we're Groupon
for software and so it's like well what
happened there like now Groupon's like
all nail salons
and like things like that uh at the time
with Myspace I think what what the
difference was that they were run by a
corporate company so they got bought by
intermix
uh Mark was running he's basically
dictator and he's like we are going to
do whatever it takes to grow and then I
think with Myspace because they're owned
by a company was like how do we make
money and so a lot of their decisions
are like how do we do ads and remember
myself Marx was like how do we get as
many people as possible using the site
so it's just a focus I missed the Poke
feature
on Facebook that was so fun I don't even
know I think I I don't know if yeah if
Jack doesn't know what it is I mean it's
gone I never used Facebook though so
yeah absolutely gave up an error that
wasn't I wasn't allowed to have it
growing up so what were you allowed to
have uh Myspace
DS Pokemon oh wow yeah dude that's crazy
but Facebook used to have a feature
where you could poke each other okay and
it would just be a little nudge like a
little like and it would show on the
side of the screen to just be like uh
you know Jack
poked you it's just you poke back it's
like a little acknowledgment of like hey
thinking about it so it's like a message
like hey but there's no text there's no
Emojis it just shows that they poked you
and then what you do is poke them back
you have to be online to receive the
Poke or can you not you can't poke
people that are offline yeah and then
just shows up when uh you log back on oh
the cool thing though is when we worked
there back in the day you could see
everyone who viewed your profile so you
could do poking and all this kind of
stuff and then see you actually come and
seize that there's some really
interesting things about when you work
at Tick Tock or YouTube or I think now
with privacy stuff it's probably more
restricted what's something that you
learned uh for the employer employee
relationship from Mark was he friends
with a lot of his employees was he
distant was he not emotional with them
like like that whole higher slow fire
quick thing oh that's interesting
um I think one of the things that Mark
did that I've really admired in terms of
relationship is like what's what's your
standard like what is the standard
you're setting of Excellence at the
company and I remember we'd work on
things like I help both Facebook mobile
I helped build Facebook ads I helped
Facebook status and we would work on
something for like a month and then show
it to him he's like I don't think it's
good enough here's what I would think
you should change on it and you're just
like when he was right yeah you spent
all that time on it yeah and it was just
impressive to have someone around you
that's just like expecting a lot more
and expecting better what if he's wrong
what if you disagree with him and he's
like no I don't like that there was a
lot of disagreements I think he would he
had trusted an inner circle there's a
few different people Aaron sidig celayo
became their boss some it's crazy now
that people who are like they my peers
are now like see like I guess boss's CTO
or Chris Cox's Chief product officer
Naomi
um he had an inner circle that he would
listen to yeah but I think I always felt
I think this is part of my story and my
narrative or maybe that's what I tell
myself is like I was from Berkeley
they're all Harvard I always felt like a
little bit of an outcast like I wasn't
really accepted what about for you and
your business how do you treat that
employee employer relationship dude I'll
tell you a story two weeks ago we had a
team barbecue
and I heard there was someone we're
letting go on Monday and this is on a
Friday and they came up to me and
they're like hey how's it going and I've
never I haven't met them in person
before and you know the whole Zoom stuff
and so I felt really I felt conflicted
yeah because like it's a person I don't
like if we don't let anyone go to be
great but it's also it's weird and then
on Monday that they did like get let go
for performance reasons and I was just
like like did I I don't know if I wanted
to meet her right because uh yeah that
was unfortunate so I think it's
challenging I used to have friends at
appsumo that like aren't my friends
anymore like they were friends brought
them in the company and now they don't
talk to me because it didn't work out
it's a weird mix and also there's things
where like the Loyalty like if someone
else a lot of times one of the questions
I come back to at appsumo is like if we
brought on the world's greatest CEO what
would they be doing and I think that's a
great question like if we were on the
world's greatest YouTuber world's
greatest producer or world's greatest
like mechanic how would they behave
um and it's tough because there's some
people in the company that I think we've
we give the benefit of the doubt we give
a lot more too because of loyalty and
friendship which I guess I'd rather lean
a little bit more towards that in the
other way yeah I think our line at least
here is is so blurred that there is like
almost no differentiation between like
friendship and work at this point I for
me it's always been like friendship
first work second like you have to be
like really good friends with someone to
work with them because for us it's just
like us three
and you have to like like each other on
a friendship level to like spend this
much time together and work together
have you fired anyone you worked with no
but I mean it's just like you're looking
you're looking at them yeah yeah we get
people on the team a little bit and
we've let go of those people just I know
I have and like you've you know
outsourced certain things to other
people but you've never like really
worked hand in hand yeah with those
people in had to fire them the only the
only actual like people on the team
really Jack and Alex in terms of like
full-time
there's a guy Steve blank he's like
super old school Silicon Valley right uh
four steps to the Epiphany about how to
do product development he sold multiple
companies he's worth like hundreds of
millions of dollars and he told me once
he's like I've met my founder three
times the day we started the company the
day we went public and the day we sold
it and that's the three times I've like
actually hung out I was like I don't
know I don't know if there's a right or
wrong way I do think your Point's great
which is like if you're gonna spend a
lot of time with people you should find
people you really like yeah and I think
it's just always a sign in a company or
like like I didn't create a company so I
could be around people I hate so I I
it's tough it does make work more
enjoyable when you do like really like
the people you work with but sometimes I
will say and I'm sure we're all aware of
this that we let our friendship affect
our business decisions no that's true
yeah what are some yeah uh is your
example between you and I yes certainly
like like Graham wanted to be a
franchisee for a chicken restaurant yes
Fried Chicken yeah hot chicken yeah and
this was someone that we had on the
podcast and I told Grandma like you know
you have like a lot of external benefits
let's say we bring on a person on the
podcast a lot of the times it will
disproportionately benefit Graham for
stuff but for the benefit that is
realized outside of the monetary gain
from the podcast and and you know social
growth or whatever so I brought this up
to Graham right which might be a little
bit of a nuanced uh thing to bring up
but I felt like you know I had been
thinking about it for a while and then
Graham said that he was considering
opening up a franchise a franchise with
someone that we had on the podcast and I
connected the dots I'm like well we had
them on the podcast that like then gave
Graham I I thought that it was a caused
B like we had him on the podcast and
then he extended the invitation for
Graham to open up a franchise and I
brought it up to him and then Graham was
like no no it's not that it's not that
you know and he said if you are
uncomfortable with me doing this let me
know and I won't even do it oh yeah
extreme loyalty right like where if I
felt like for example I had been taken
advantage of and I said it to Graham
then Graham said he wouldn't even
consider opening up the franchise yeah
yeah I explained to Jack that the
benefit was really me's the brand of
Graham Stefan and not so much the
podcast but it but it's the audience
that I built on the main channel that
that's really led to all of this and the
podcast happened to be a way that it was
a great introduction but in the big
picture I told Jack there's nothing that
would ruin our relationship and our
friendship and so I would put a lot of I
would lose a lot of money or miss out on
that just to keep that friendship intact
because I think in the bigger picture
that's way more important than anything
else and of course but that's when I
yeah when I totally understood when we
made it clear that like you know it
doesn't have anything to do with the
iced coffee I was like no I respect that
and I see you as a good person a great
friend you know of course you don't
think the Jets brought up other
opportunities for him that he's brought
like hey Graham you might feel kind of
uneasy about this I'd like to do it but
if if you're against it for personal
reasons I won't do it yeah and so it's
really weird it's true we never we never
like step on each other's Toes or
anything like we always bring it up to
make sure the other person's okay with
it on a friendship level yeah and
obviously sometimes we're a little
uncomfortable but we always give the
green light or I would say like this so
far there's gonna be there's gonna be
some point though there's gonna be one
time and that's when it's all gonna I
don't wanna jinx it but I I know there's
gonna be one point yeah that's it for
you being solo versus now having people
that you consider for opinions uh I I
trust uh Jack and Alex a lot so but a
lot of time I'm I kind of know the
direction I want to take it and if I'm
split in the middle I'll ask Jack and
I'll ask Alex and usually between the
two we come up with what I would
consider to be the right decision or
sometimes I'm so in it that I can't see
the clear picture but Jack can because
he spent no time on it same with Alex
uh I think best friends talk
like real best friends yeah I mean we
totally yeah like you're like hey I
don't think this is good for you I'm
like you're a real best friend like uh
let's hang out with my buddy uh Tynan
yesterday and he's like I was talking
about my ex and he's like this is really
bad he's like it's just bad he's like
and I was like I know but he's like no
no it's bad I'm just letting you know I
was like
thank you yeah it's best friend yeah
they did not tell you all the nice
things but probably the the thing that
thing is best for you we get a lot of
hate on this podcast because sometimes I
can be very critical of Graham and
people always say oh why is the
assistant hating on the the CEO of the
company or whatever and I'm like well
first of all if I was just a Yes Man a
that would be terrible for the brand and
B that would prove that Graham and I
weren't even friends from the start you
know what I mean like friends aren't
necessarily Yes Men of each other at
least true friends and also what type of
business is built off of just a bunch of
yesmen dude people I at appsumo no one
does what I like I like almost all the
time they're like I want to do this I
was like can we do it I want like no I'm
like okay you have a better idea than me
I agree but people think that it's kind
of an external perception but the thing
is what if you did have the better idea
and then they're going and saying no
it's not but you have the better but you
have the better Direction This reminds
me of Mark imagine if Mark says they're
like no no I'm not gonna do that I'm
gonna do this instead we're just sitting
there twiddling something all right I
guess I have a good idea maybe we should
have a day where we only hang out with
each
that'd be kind of nice that'd be kind of
nice but uh I think it'd be nice but I
don't think you get at least in business
yeah the best outcomes yeah like we had
a there's this woman alone who I work
with uh VP of operation so she's like
the day-to-day CEO so she runs it and we
had this meeting about how many products
should be on appsumo should we have like
very curated like 10 products or 100 or
like 10 000. and it was um I really
admired that she fought I like to see in
business who has conviction like who
cares because sometimes I'm like I don't
like at Facebook they'd argue for hours
about the topography and which font to
use on a page and I was like I don't
care I don't care whatever the customer
and user wants to use let them use so
it's just nice to see where like how do
people fight in productive ways yeah
Jack really wants me to Outsource he is
constantly outsourced Outsource but uh
uh gosh you wanna server research
scripting uh I did convince him finally
to Outsource editing which was a super
long uh thing that we had it was doing
it before me you enjoy doing it yes I
did I would say but it took up a lot of
time so even though I enjoyed it for me
it was a great way to zone out because
I'd finish a video and then I just clear
my head for five hours or three hours
and just edit and then it's done and
then that reward that you get after then
I'm clear-headed afterwards because I
can't go from like filming planning
filming planning I need a break in
between and so PL so editing was a great
way to do that but it took up a lot of
time I think that's the thing that
people Miss in business scaling like the
scaling to like we have 140 people 100
million it's like
find also the thing you also enjoy doing
and don't give that up because everybody
is a health coach mybody tutor.com and
he just likes he loves coaching people
health and he he wants to scale but he's
like I also just like coaching yeah and
so I think it is finding that balance of
like if you like editing stick with it I
think that's people getting generic
advice like scale everything not that
it's bad but just don't give up the
reason you started doing it or the piece
that you like well I will say when Alex
took over he's gotten really good at it
and I've had a lot more time so now I'm
constantly about a week ahead on the
main Channel whereas before I'd be like
day by day what do you do at that time
now I don't know where the time goes uh
honestly I would say it's been more time
planned now honestly I find myself no
more productive than I was when I was
doing everything myself I'm being
serious there was a point where uh I was
posting six videos a week doing uh
planning filming and editing everything
myself before Jack came on that's not
cool well no when I was doing three
videos phone calls we stopped doing the
phone calls so it was after that yeah it
was after that what made you give him a
chance
uh I was really busy one day and I saw
him send me an email and it was at the
very top of my inbox during a time where
someone dropped out so I had this
Facebook group called The Real Estate
millionaire Mastermind and part of it
part of the way to get into that group
is you have to submit your email address
and I wanted people's emails so like
eventually I could I could use that
email list to either Market to or or
follow up with or basically have and uh
we would get thousands of emails and you
would have to go like Hand by hand or
like you know by hand going and copy and
pasting all the email addresses put them
in a spreadsheet and it was a lot of
work so I tried hiring so many people
like 20 bucks an hour you know whatever
it might be just go through like you
could watch a movie and just copy and
paste these email addresses no one would
do it I'd ask people to do it they'd say
oh yeah no problem oh yeah no I didn't
have time and meanwhile they're building
up so I would do it myself and during a
time where someone just dropped out Jack
was the top email saying I'm willing to
do anything and so I called them I'm
like hey if you want to do anything
here's this thing it's really boring but
if you want to do it here's you just
feel free to do it you don't have to but
like if you want to feel free and you
finish the whole thing like overnight
for free yeah and I was like wow did you
pay me yeah it did not accept yeah uh
and it was so good that I'm like wow and
I I felt bad he spent like how long was
that you know so it was way more than
eight hours maybe 10 hours whatever it
is uh so I felt so bad he spent like all
this time I'm like how about this I'll
take you out for dinner and so he drives
down I take him out for uh for a
hamburger I don't even think I ate
because you didn't eat me yeah I wanted
to save the money this is in my like
extreme Frugal days like I'd rather just
take Jack out and me does not I felt bad
because I was like I'm taking this guy's
money yeah that's fine but uh but we hit
it off and then I was like we could
continue doing this and come up with
different ideas or I wanted to do uh an
iteration of the Dave Ramsey Show and I
called it the Graham Stefan show where I
take phone calls and I said to Jack how
about this I'll post on Instagram you go
through these emails and you pick the
three calls that you think might be the
best and Jack started doing that I mean
yeah yeah just like you did the work I
mean Jeremy on our show he did her
Instagram for a few weeks Mitchell
volunteered at our charity ride
for that but I will say if Jack didn't
send that email at the right time when I
needed the help
like if Jack sent me that maybe two
weeks prior even if if it was at the top
of my inbox just wouldn't have needed
the help and I probably would have
looked at it that's nice but you know
you forget and
so the power of asking is so
underutilized
the fact that you just kept asking but I
guess there's also a balance of asking
and being creepy oh yeah we're just a
line where it's like I'm sure you get
this all like hey I want to help hey
it's like like but it's interesting
which ones make it through the noise
yeah I think some of that is also just
lucky timing and I do think there was an
element where he asked enough to get at
the right point where I really needed
the help yeah and you were in the group
you probably saw that he struggled with
it uh no I wasn't in the group no he
just sat right I just watched the
theater fan like yeah just random emails
dude hell yeah good for you thank you
thank you yeah we actually went through
those emails in one of the uh terribly
embarrassing oh really I was like
desperate pretty much they were love
letters
there are a couple of long ones yeah
some of them were short some were just
bumps you know yeah
yeah they varied between like paragraphs
and like just following up to make sure
you saw the above email paragraph
just let me know if anything you need
paragraph yeah be back and forth a lot
of the stuff though a driving factor of
sending those emails was just like the
ebb and flow of just like my my life at
the time because I was working at a
restaurant I hated it and I was a
full-time student at the time as well
and I wasn't a huge fan of that either
so with all of this time when I was
mindlessly like busting dishes at the
restaurant I was always thinking what
can I be doing and then I would just
like build it up build it up build it up
okay I have to do this thing with graham
or whatever and I just send out another
email and then you know that would expel
it for a little bit and then I'd build
up again because I hated doing all that
stuff so much and I'd do it again yeah
it's great thank you yeah let's talk
more about apps yeah okay
you're worth 1.4 or 190 billion dollars
or whatever that website I think I've
seen was probably worth a few hundred
million so I'm worth like 200 300 I
don't know because it's hard to know
like it depends if someone would buy it
I don't ever want to sell it let's talk
about what what does appsumu do for
those that don't know figuring out no
and we're not and we're not sponsored by
the way we're not sponsored no should we
be so probably no okay yeah you know
what we believe it or not we thought
about it but we've never accepted money
from any guest yeah and so and we don't
want to start down that path of like you
know
uh no Sydney is a combination of my
career so I think it's interesting to
find all the things you hate right all
the [ __ ] you just like hated doing like
I hated working at Intel I hated
corporate I didn't like Facebook's like
elitism like these Silicon Valley like
douchebags that are like they think
they're so great we're in Patagonia all
the time
um
but it's just like so Elite and they're
like oh we're so cool and like I don't
know I didn't care for that then I
worked at mint.com yeah yeah I was one
of the first guys there
um I thought it was really interesting
to find a product that like okay I
sucked I did all their marketing but it
was just like they had a great product
this is a great product yeah I didn't
really have to do much then I had games
but I was like I hate build I don't play
a lot of games but Sony's was just like
a combination of like all the things
that didn't work out to finally be like
how do I finally just do the thing I
really want to do and even if it didn't
make a lot of money I'm gonna at least
be okay because I'll be the customer and
I think that's how people should be
thinking about like what's the problem
like even our YouTube videos I watch a
lot of them all the time I'm like dude
this is cool and I'm like I'm like
watching I'm like proud of myself or I'm
like watching I'm like pointed to myself
I'm like but it's like I like doing it
like what are we gonna do on the channel
so I've seen what was that it was like I
love Tech I love startups I like this
new software that's coming out maybe I
can just hit these people up and be like
I know you guys need customers everyone
wants more customers can I get a deal on
it and then I'll promote it for you and
then we'll split the profit and that's
that's kind of uh and I was able to
validate it for about 50 bucks you know
more or less a weekend so that's when
I'm trying to encourage people I have
we've like I've helped a lot of people
trust our companies and I think everyone
wastes too much time and waste too much
money and so I won't be able to not
waste any time spend just a weekend and
see if you can get a few customers which
is what I did with appsuma yeah how does
the business work now how do you acquire
customers how do you make money and how
does the the business make money yeah so
we have uh we have three different
revenue streams we have a like appsumo
Plus Membership 99 bucks a year you get
uh we have a community you get deals on
our you get an extra deal we have some
software you get for free so it's like
Amazon Prime but for startups and
Founders so that's 99 bucks we have our
own original products so we've created
like a MailChimp alternative called
senpai box we created basically oh you
have send Fox yeah that's us so all of
these products that are mainstream that
are expensive we created alternative
one-time payment uh versions of them so
tidycal which is our calendly
alternative so it's like 20 bucks you
get premium version of calendly forever
so that business unit maybe does like
two or three million dollars this year
and then the bulk of our Revenue we have
two two sections is our Marketplace so
we go out let's say you create gramsoft
we go out and normally you're 20 bucks a
month uh we go out and negotiate with
you
um the sales team will find you
negotiate with you like a 50 for Life
deal and then we'll do like a 50 50 rev
split and then we just share the money
in that so now why would a company agree
to that isn't that a lot less money or
are they making it up with a whole bunch
more volume
so we have that and then we do have a
Marketplace listing so anyone like if
you go to appsum.com sell you can if you
have software you can go and list it
yourself now and we have to approve it
uh and it's software targeted for small
business owners so the question is why
would someone do this is literally the
best deal online for a software creator
so if you think about it you created
software how would you get customers
today buy ads buy ads maybe sponsorship
sponsor uh the iced coffee hour yeah you
know maybe do your own content maybe PR
maybe like Google SEO right all those
are cost money take time and not
guaranteed appsumo if we do a deal with
you we give you money guaranteed because
we have an audience there's free
exposure and you get customers now that
you can potentially sell things in the
future there is no better way to play
promote new software than appsuma if
there was then I would stop appsumo so
for a Creator it's like there's no money
you get it guaranteed plus we also have
like we have a group we call beta links
that actually review your product and
then help you improve it before we
launch that's fun and then we do your
marketing so we have a video team we
have a Content team there's a team that
does like the images for you so we do a
lot of times better marketing than the
product can do themselves that's so
small yeah and MailChimp I believe is
one of the first ones they were in one
of our early bundles and the thing that
the instrument of Sumo from a business
model perspective and this is just
totally lucky uh and this one I try to
encourage people's one the market for
software just grew a lot like when I
started it 12 years ago there was like
10. and now there's like hundreds of
thousands maybe not Millions but
hundreds of thousands and then we just
got lucky with our business model so we
don't hold inventory like we don't have
to really have any office we don't have
to do anything and we get the money up
front and then we pay our partners uh 30
or 60 days later
so it's a pretty interesting model like
there's no food cost there's no anything
we just built up the audience and
community that trusts us how big is your
audience on appsumo uh it ranges per
month but a million to three million
people will come through absolute so and
how we make our money uh there's three
channels that are our main drivers so
affiliate marketing is actually a
gigantic traffic channel for us uh which
I wasn't expecting
um Facebook ads so I think we spent
about a quarter million to 400 000 a
month on ads Google Instagram uh and
then email marketing which is not really
gross the audience but that's probably
about how far Revenue comes from our
email list so I love email yeah and then
what about for you do you just pay
yourself a salary are you do you take
that one dollar
uh so it's really fun I think how
Founders pay themselves funded or not
funded over the years is really
interesting to consider uh and I was
very self-conscious because like my last
job
um my last company I think I made
like 150 or so and so when I started
absolutely I didn't paint I didn't have
anything it was like zero dollars first
year 42 000 next year this year my
salary is 175 000.
that's my base seller and do you like
invest in as a normal person uh well so
what's missing though is that if the
company has profit then I get a big
chunk of the profit if there's no profit
then I don't get anything
um so for the first like seven years of
company I actually did the analysis if I
would have stayed at Intel I would have
made more money for the first seven
years of appsumo interesting right so I
actually plotted my salary and I did a
little bit of like inflation and like a
salary adjustment versus my app Sumo
salary got to like 7 500. so Intel would
have been a great deal yeah and so I
think some people miss out on this
people think entrepreneurship is like
how you get rich having a good job is
actually my stepdad I got pretty rich
having like a pretty standard
engineering job and doing like really
safe investing yeah
um but the past three years I make seven
figures every year but I I don't want to
talk about the exact number because I
feel bad for the people that work at the
company it's like oh why why is he
getting rich and I'm not so I want and
that's actually an interesting question
how do people get rich at companies is
that you make more money for the company
and the company has to give more money
so we've made many millionaires not many
relative we made millionaires that work
it up soon
wow so it's uh yeah I basically if
there's no so like this year like my
salary got cut in half because we wanted
to hire more people or the the expected
salary of the year yeah got cut in half
because I was like either I can make a
lot of money or I can invest in a team
and grow the business how is the
recession or a possible recession going
to impact your business I saw I've seen
the email from y combinator basically
warning all the startups like hey VC
funding is probably going to be harder
to come by stockpile cash make sure you
run lean I mean they gave a rather you
know disastrous email to a lot of
companies I've seen that I saw the
Sequoia one see the Sequoia one no I
didn't see that that was pretty good
yeah I don't believe in recessions
I just don't believe in them don't you
believe that there but there is like but
there is a time people still buy food
people but don't you think there is a
time where funding is going to be more
difficult than others I don't believe in
taking funding
but I think for a lot of the companies
who need to raise in order to secure
Capital to grow those companies are are
going to have a harder time getting
Capital yeah business
yeah it's just like the you know it's
natural big picture yeah I mean I think
in terms of taking a step back to give a
little more clarity is that recession is
about control and planning
but then day and so if you were not
doing something valuable enough you go
away yeah you were doing something
valuable enough you stick around and I
think with appsumo specifically people
want to save money
and then it's like if things are getting
tougher like I want to save money and so
appsumo is generally relatively well
positioned and we don't have a lot of
upfront costs besides our team which is
I mean it's like 60 of our I think our
monthly burn right now is about 2
million just on teammates just on the
team
um so the way we start thinking about
that is like what can you control are
you doing something on the totem pole
that's valuable enough for an audience
and then the other two things I would
think about for companies is that do you
have a phase spending so what we do as a
phase plan approach so you asked about
recession if things go bad we have a
plan in place about what we're going to
cut exactly so it's not basically doing
it real time it's something we've
already thought about ahead of time got
it um and then I do think people just
need to think about like if I'm not
doing something valuable enough for
example my friend who's a body coach
whenever if a recession is happening do
you think people want to spend a lot of
money on like a health coach no don't
[ __ ] or not like dude I'm just trying
to survive just like when covet hit
people like they cut everything and so
then I think you have to think about
what else do they want to do are they
eating food do they want supplements can
you actually do help maybe with workouts
can you maybe do coaching certification
and so I think it's finding the things
that are going to be invaluable all year
round and I think people are just doing
things that are nice to have not
must-haves way too often yeah so what's
the end goal with appsumo
because you're not going to sell it you
say what if you got an offer at like 500
million bucks I probably so okay yeah
yeah [ __ ] people like I would never
sell forever if someone came
the thing that is not the thing I think
people miss out on is that you're like
all right I can sell and then what am I
going to do then I'd probably just start
absolutely I would keep making YouTube
videos I would like working on a book
and I would promote things which is what
I like to do so I think people get
really excited about how much money it's
like why don't you just find the thing
that you can sustain on like making
YouTube videos maybe it's making coffee
maybe it's promoting products or
promoting people we've thought we've
talked about an IPO like we have numbers
that I like are compelling
but I I and honestly I don't care it's
totally egotistical like to have a
public company would just be ego because
like it'd be cool to say you have a
ticker symbol yeah anything pretty neat
but I don't want ticker symbol uh could
be Sumo it could be incredible if you
secure that if that's not already I
think something logic might have it but
the point because for me is like I don't
want to have to have check-ins I don't
want to have rules I don't have
investors on what to do selling
um I think it'd be interesting
if it was a certain amount but then what
would I do all day like for basically
the past three years I haven't worked
right we had another CEO for six years
of the company yeah and he grew a lot of
the revenue in the business and I just
kind of like [ __ ] around and honestly
it was and this sounds bad because I
think this is the dream people think but
it was really unfulfilling
it's really unsatisfying not working and
not doing something you're actually like
[ __ ] this is hard and I came back about
a year ago and I was like yo this sucks
and I love it so to give that up to have
money that I can't already spend like I
have more than enough right now and I
think people need to figure out how much
they actually need which is much lower
than they think
um I don't know if someone did a billion
or something yeah that'd be cool but I
don't know what else I would do so what
is your normal day like
today I mean yeah I saw your video with
Leon Hendricks by the way oh yeah
fantastic dude he was so bad uh that was
probably the most realistic day uh can
you walk us through that day for this
yeah in the video yeah so I live in
Austin Texas
um I get up around 9 A.M uh let's just
take a Monday so my days are very
structured I think one of the things
that if you're a CEO or you if you want
to have high leverage in your days like
I probably spend maybe around five hours
a day looking at my calendar
which is like kind of uncommon for
people so what that means is that
there's a woman named Anna so on Fridays
we go for about an hour to hour and a
half reviewing my calendar like we have
a survey like what happened this week
what was good this week were you
consistent this week what blockchains
week what are we doing differently next
week and then we meet again on Monday
and then I meet I review it myself so
it's maybe more about three hours but
then I review it myself on Sunday too
um and so I'm just very specific about
like what are my main goals that I'm
trying to accomplish and right now
there's three right so a CEO there's
three things that matter like where
we're going through your vision what are
the rules so operating principles are we
have an operating principle manual and
then who are the people there so those
are the three things I'm really trying
to optimize for and then in my week it's
really like I color code my calendar how
much of my week really looks like that
because I think if people say what's
important to them and they actually look
at how they spend their time it's very
different it's very different
um so I colored my calendar so Mondays I
basically try to do morning Pages you
guys read the artist's way now
so good what's this uh it's by Julia
Cameron it's like one of these books
that like you hear about you're like you
read it like this [ __ ] epic haven't I
heard about it because I think some of
the best stuff is the stuff that others
don't know about so she wrote this book
about I never thought I was creative
like I don't know I see people with like
cameras or sees people like I don't know
doing photos or I guess that's cameras
are drawing and I'm like dude I want to
be creative I'm just a business guy I
don't know [ __ ] and her book is just
like dude you're a [ __ ] artist in
business and one of her key things that
she encourages everyone is visiting
morning Pages were for 15 minutes you
just write unfiltered
it's called journaling I guess is what
other people call it but so uh so I just
do that every Monday it's just Mondays
I'll basically wake up uh I do tea I do
element it's like these electrolyte
packets I have them every morning
um and so I'll do that I'll write 15
minutes and one of the key things that's
actually been really powerful uh that
I've done the past few years with that
is I just write what am I looking
forward to this week on my Monday
mornings like what this week am I like
hella excited about like what was it for
you guys this week oh man concert oh
yeah which one Rex Orange County uh I
did it two nights ago in Vegas it's a
musician artist it's like country no no
no no it's an EDM no it's like it's like
a bedroom pop kind of like uh I don't
know what to call it but yeah that's
what I was looking forward to hell yeah
yeah uh probably the delivery of a Tesla
oh hell yeah yeah the Roadster horn is
coming over here no the old one oh six
yeah okay
um I think so anyways my Monday morning
I just try to think about it like what
am I looking forward to at work and if
there's nothing I'm like oh cool let's
make some [ __ ] up that you're gonna look
forward to uh like coming to Vegas this
is sweet yeah what are you looking
forward to
definitely well we went to Bill Burr
okay and then I went to the Warriors
playoff game like I did I flew at night
in a private jet uh jsx oh wow yeah just
like a sick 200 bucks for a private job
right yeah really good deal so I flew up
there took my friend for his birthday
watched the game and then flew back for
work in the morning that was probably
the the key thing that's cool and then
uh so Monday yeah so I'll write out what
I'm looking forward to this week I try
to process just whatever's going on in
my head I've been you know emotionally
up and down for relationships and travel
so just trying to be like okay what's
going on with you like let's try to
understand uh Mondays is a lot of
appsumo check-in so I have like an hour
and a half meeting with Elona about
what's going on in business uh what are
kpis then I had a meeting with Anna to
do my schedule and then sometimes on
Monday like I'm working on a book so
there's a guy named tall Roz he wrote
Never Eat Alone never split the
difference so we had like a two hour
work session going over one of the
chapters then I'll do like a body like a
body workout or weightlifting with my
buddy Daniel
then I have a chef so she'll I'll eat
dinner at home and then read I try not
to watch TV or do anything that's like
uh not productive at night during the
weekdays and the weekends I'll go crazy
yeah and you mentioned relationships can
we talk about that yeah let's talk about
it all right this is like the bane of my
existence this honestly is like probably
the worst thing going on in my life I
don't know how is it to date as a man
worth over 100 million bucks right yeah
no no easy it is fish in a barrel
you're honest I thought when you got
super rich like they just come to you I
thought like you see all these old old
like disgusting people with like really
hot babes I'm like where am I allowed to
say this yeah
yeah I'm like I just I'm not trying to
be rude to men or women but I was like
where the [ __ ] are they getting them at
because like I thought I got a hell of
money and I'm like okay I'm just still
at my house like alone uh it doesn't
happen so getting rich does not solve
that
um
but dating has been it's been a it's
been shitty shitty
um I think what happened when I turned I
turned 40 in February yeah
and like 80 of my friends have marriages
and kids and I'm like home I'm like out
hanging out with two guys doing podcasts
oh that sounds fun yeah
jeez Jack never he's never invited back
to kick this old [ __ ] guy off the
show uh you know all my friends have
kids and marriages and you know I'm like
oh what's wrong with me like what did I
think it's a bad thing to no yeah well
it felt like a bad thing and then I was
like all right you're gonna go on a
[ __ ] hardcore wife Quest because in
business it's very simple for me it's
like okay where's my what's my
destination absolutely we have a school
what's your plan to get there here's my
plan all right now let's execute towards
that it's very like I think that's what
how many subscribers do I want what's
the content what's the job I want is
your plan go executed and it's not as
controllable with females right it's not
it's there's a lot more like where do
you where do you get your pipeline where
do you find them from how do you filter
to make sure it's the right one yeah so
if it's too analytical to me well the
past two months I put a lot of pressure
to find a wife and it's been important
that sounds like that sounds like that's
yeah how about this yeah let's let's go
deeper why it's it's that's to me sounds
more like the the pressure the societal
pressure of like oh yeah I'm approaching
40 this is what
most people should be doing a I should
go in that direction but it doesn't seem
to me like you've ever done that so it's
surprising to me that like for for a
companionship that like that would be
the route you went if I'm honest I
thought it would make me feel more
complete
like this is the part missing in my life
like my work I love my work like it's it
sucks a lot of times and it's hard as
[ __ ] but I'm like yo I really enjoy this
challenges and I feel like the my
mindset is like these are challenges
that are good for me my health is good
my friends I literally have 10 out of 10
friends I have like the best friends
like I'm like I feel very lucky and then
when the women one it just feels very
like why is this not going well like
what's wrong with me or what's wrong
with the situation for that
um and I think with my dating over the
past 20 years it was very like it wasn't
dating with intent it was just dating it
was like you you're cute and you like
you you let me sleep with you and like
we can hang out and like but it wasn't
like oh we're gonna try to date to see
if this someone I want to be compatible
with for a longer period of time so I
think I just put artificial pressure on
myself to make it happen was that an age
thing where like you felt this compelled
that like 35 let's say because like it
it sounds like this was more something
somewhat recent than yeah
my friend is one of my best friends Adam
was just talking about he's like and
also like you're on a dating app yeah
which is weird because I I do get now
pretty often like oh I watch your videos
which is a little strange and they're
like why are you on a dating app
um but and having that number show 40 in
the dating app verse 39 was like a weird
mind [ __ ] really just a weird like oh I
guess I'm getting older it's not forever
if I want to have kids like I'm only
going to get maybe 40 to 60 years with
them so I probably want to have that
start that sooner
uh do you think that's from your
perspective 40 makes a difference for 39
or do you think it's just generally your
response has been different at 40 for
versus 39. I'm sure a lot of women would
would rather put 29 and 30. yeah and
maybe and maybe there is a significant
you know slow down after the age of 30.
I don't know it was well I was engaged I
think I mentioned and I broke off that
engagement
um
and yeah I think getting 40 it's like oh
[ __ ] like this is do am I gonna find a
partner
is it gonna be is it actually gonna
happen and I don't think it really
mattered I really considered it and it
does feel like these other areas in my
life feel pretty dialed in and this one
is not and this one feels much more
uncertain unless like I can't control it
or make it happen yeah and so then
forcing it uh the past these two past
two months has been like pretty shitty
yeah when were you engaged I was engaged
uh November 2019. we got engaged at the
Met in New York and how long did you
date prior to we did about three years
okay do you mind answering like what why
we broke off the engagement
uh uh I try to understand it right and
you try to like it's interesting with
all of our lives like how we try to tell
back the story that we have
uh and I also don't want to like I'm I'm
talking to her again
so oh you're back talking to her a
little bit so which then feels even more
confusing because all my friends are
like yo it's a bad idea oh yeah if I'm
even saying
like I don't even know her or the
situation I from what I've seen it well
I I shouldn't you know go for it from
what I've seen it's usually not a good
idea once there is a break off because
because it's it's like it's like yeah
not only is there a reason but there's
still all those underlying issues that
probably haven't been resolved that you
know you could put a Band-Aid over it
but I think the cracks are gonna show I
think that the two things there is uh
one I've never fired anyone I regret
I've never had fired anyone where I'm
like I really wish I had that and I
think there's a parallel here where it's
like you broke up for a reason and it's
probably that probably is not going to
go away though the challenge is that our
experience now is very Muffin Top you
know from Seinfeld like it's just the
muffin top it's like just the good part
yeah so we're having just like highlight
reels versus like going when we can get
back to relationship
um so while we broke up I think part of
it there's different things my friend
said but I think one of it is like this
person who you choose as your partner is
probably the most important decision in
your life sure yeah probably your
business partner and your romantic
partner female now whatever and I was
like damn that's a [ __ ] important
decision there should be very little
doubt and I had a lot of doubt and I was
like I'm gonna spend 40 years with this
person like I like another way uh it's
funny to look at us like do you want to
have like 2 000 more dinners with this
person like and I just I do you think
it's that's just nerves though that
maybe it's like that's a lot of pressure
to think of you know 50 years and
summarize it into three and yeah well I
think what's interesting is what are the
things we don't have doubt about
right like I have a lot of things in
mind if I'm like there is zero doubt
like I have friends that I'm like
there's nothing like you're not even a
quick and I'm also not sleeping in with
them and I'm not having dinner yeah but
I think in terms of your your romantic
partner like they should be pretty
minimal there should probably be
nervousness
um I I do think though your your point
is interesting where like I think the
amount of pressure I put on myself I
think High Achievers are actually really
negative we're like really I think
myself as a I'm not a high achiever but
I'm like always going but I have this
really negative self-talk and so I think
that level of expectation made it hard
for probably her and for our
relationship and even for this recent
dating period where
um after you broke up like this past two
months I'm like I meet someone I do
basically a wife interview no I know I
can't do that it does not worked out
well it's not worked out well yeah the
way to grow a business I've noticed is
so much different than like getting in a
relationship and I felt myself
throughout like my mid-20s very similar
because I was like really good at like
being a real estate agent and uh and
buying properties and to me it seemed
like so easy to be able to follow this
the same you know patterns but then I
was so stiff and business like when I
would go on a date I mean I was so
uptight and all I wanted to talk about
is like business and making money and
like just investing
and I was so uptight that I think it
just it shows and that's sort of like
analytical approach just not attractive
well I guess for are you guys in
relationships yeah yeah and then how is
your partner like a super type a person
or is it more like a house person is it
both uh like how scary yeah they're more
like they're you know they're taking
care of you and they're taking care of
the house so that you can house
I would say I'd say she's 50 50 on that
really yeah I would I would say it's 50.
I would say just in the way that she
treats like Ramsay and and Bailey oh
gosh yeah for the animals oh shoot gosh
dinners and she does she does his
laundry you know you don't hire someone
to do your laundry
no she doesn't
I listen I I wouldn't hire you I would
just do it myself it's so it's so easy
I'm not gonna talk about that yeah no
and I think you could find a woman that
is maybe both those things I think
basically uh I went to New York on a
wife Quest two weeks ago
and so I just set up like I've never
dated I've only dated Asian women so I
wanted to date Jewish women
and so I went on the apps and I lined up
basically like almost a day to night
with a different Jewish one it was just
like stressful and it was creating a lot
of anxiety Jewish I'm Jewish dude dude
nice here are you Jewish
but it was just like it was because I
never dated a Jew yeah my family is
Jewish my dad's from Israel like I study
Hebrew like I'm not I'm not religious
whatsoever but I'm like yeah it'd be
kind of cool to like continue that
lineage and I've only dated Asians and
it was just it was stressful though it
was just like that's a lot of pressure
to go yeah you went for the objective of
finding a wife I went for a bike race
and then I made it with that and then
working on my book like the three major
prayers walk me through a night of a
wife Quest right let's say you just
finished the job just taking notes here
and it's like six people are you on a
wife
definitely not a wife Quest girlfriend
question I'll just you know I'm a
develop a relationship with someone he's
the most eligible bachelor at this point
it's become a running like joke how did
you meet Macy uh Instagram she hit you
up or you hit her she hit me up what'd
you say yeah uh she made a really funny
comment I had uh posted something as a
like a like a story and she had
commented on it and uh and basically it
was a funny comment but I didn't even
think anything of it and I just thought
it was a funny comment and I responded
back and uh and then we just kept the
banter going back and forth and it just
developed easy yes there's one of my new
favorite words in business and I think
in this relationship experience is
organic yeah like how was it organic to
make content organic to interact with
them and so after the New York thing we
wouldn't talk about that I just came
back and I was like I went to therapy
and I actually interviewed a
relationship coach Stephanie Rigg she
was phenomenal on Instagram really
really good and she's like how are you
feeling with all this stuff I was like
I'm [ __ ] anxious she's like you don't
have to do it I was like what do you
mean she's like you're you seem pretty
happy and life's pretty good like why
don't you just chill like and then when
you want to go hang out with someone
instead of having to why don't you get
to
so I've been trying to just think more
about like what do I get to do and then
also just notice how I'm feeling with
some of these things like if I'm really
feeling anxious about going on a date
it's like okay why what's going on with
this anxiety and you like let's take a
step back to checking how we're doing so
the past two weeks I've just chilled on
it and like I like cut off a few people
that I was like I don't let's just not
talk we'll be friends uh and honestly
it's just been it's been nice it's been
so relieving I have a feeling the less
pressure you put on it the more success
you'll have on that I think if you went
in just thinking I'm gonna have a great
time and just tonight it's just about me
having fun I think if you just went in
like that with no expectations you would
be shocked just like like how quickly
you'll uh make great connections that
helps me a lot what helps me especially
is like the abundance mentality towards
women because sometimes I'll go on a
date with a girl and then I'll have like
a four month break and then I'll go on
another date with a girl but because it
was such an extended break of doing that
I like hype this up a lot and I get all
nervous and everything and I make a
bigger deal out of it than it really is
but if I go on a date this week and then
next week I go on a date and then this
week I go on a date I'm like okay well
there's so many yeah you know what I
mean and it makes me more calm and
they'll like a lot better but there's
also that takes away the expectation of
like this is the first one in four
months it has to go well it doesn't go
well it's going to be another four
months and when you don't care because
it's like well it's like you could meet
another person next week yeah someone
asked me about like my 20s if I could do
it all over again it's kind of annoying
stupid question and one of the things
was about it was dating it was like I
would have been way more thoughtful in
my dating I think I just dated like oh
you like me sure let's do this versus
like okay it'd be nice to be intentional
for that and anyone out there if you're
dating just be more clear like hey I
want to find someone long term like let
me be more intentional dating versus
just like this is a cool person to have
around yeah I've noticed the dating
topics actually do quite well oh really
and it's yeah that's what people like
yeah they love especially in in finance
because the usually I want to say it's
probably 85 male and if they're into
Finance there's there's a chance they're
not that good at dating too
disproportionately
and they're probably single yeah so when
you have that demographic and and you as
a finance person talk about dating I
think a lot of people relate to it
because we've all been through it yeah
and it's just something that people want
to work on and overcome and I think not
a lot of people are talking about it or
if they do yeah they take a very uh you
know extremist stance on it and it seems
like you either have the people who just
say oh no don't worry just be yourself
and then you have the other people just
like to what to me seems like just trash
talking other genders and just like
categorizing them it's just it's weird
but I think because there's not a lot in
the middle it's just like that's what
people that that's their options it's
either like I don't know myself but
that's not working or oh it's all of
these things and it's their fault and
you know I need to act it's it's so bad
it's really it's really toxic in my
opinion that that extreme and that's
interesting and that's going on it seems
like a lot of it's on Tick Tock and
based on their algorithms like you watch
one of those videos it's like oh I'm
Gonna Keep recommending those videos and
then it drills it in and like oh they're
bad I have a yeah I have a best friend
uh Neville uh he runs a copyrighting
course business online and I've loved
his the way he approaches like kind of
like Homer Simpson he's just like well
donut that's nice he's just so [ __ ]
happy all the time and I think because
I'm like a neurotic Jew and I'm like ah
how do how's it you know what it's like
and I just like that he's just more at
peace with everything in his dating
approach which I really admired he's
like by 2023 I want to be at a place
where I'm having a kid or with someone
to have a kid and as he approaches his
dating it wasn't so stressful like mine
is and the stress is all internal no one
made me stressful it's all inside I
think that's for a lot of us it's like
this inside these inside voices and uh
his was like I'm just gonna go and have
fun meeting interesting people yeah
um I think now I'm finally recognizing
like how nice that is and then yeah just
find a person you want to keep
interacting with and that'll lead to
having kids and then being committed
yeah would you say a lot of the stress
is what drives you to accomplish so much
I think I don't I think something the
most successful people are doing the
most dissatisfied is what my observation
has been because Neville as an example
of it has like a six-figure business it
makes like probably 100 200k which is a
lot I think a lot of money and he's just
happy with that and it's just very hard
for me to do that it's very I think that
one of the most challenging things in
businesses how do you be happy with what
you have and have a desire for more
because if you don't have a desire for
more you're going to stay where you are
which is okay and you'll be good but
then you're like well I also want to
evolve and progress but what is it
that's in you that wants to achieve so
much ah it's just High ambition you know
what's funny what value is instilled by
your parents you ever hang out with your
parents and you're like oh I [ __ ] see
where I get it from yeah you ever do
that yeah or is it the opposite probably
the uh I don't want to say the opposite
um
I don't know I call my mom and she's
like okay I'm going to the gym now okay
I cleaned the oven for three hours okay
and she's like no I don't know how
you're you always are so busy I'm like
Mom you literally haven't stopped all
day and I think there's a little bit of
like just being around her
um that's just kind of like I don't know
I guess I've always been like I want to
progress but one thing I think is
fascinating about money making and I'm
guessing this is I'm assuming true for
you is that you get to a point where the
money just for me doesn't really I don't
care like if we sell like we probably
think two days ago we had a 300 000 a
day today's probably 200 000 a day like
that's [ __ ] a lot of money I think
that's crazy
but it doesn't do that doesn't like my
no chubby no nothing right but if we
like do a cool new marketing initiative
or do a new product or we like relaunch
something for the website launch
something
that excites me and so it's just
interesting about like what the
motivators are for me it's just progress
I guess I just like doing cool new
things for the business itself I know a
lot of people through there like
entrepreneurial Journey they can make
these micro decisions or little tweaks
that can then Skyrocket the business
were there any changes that you made
with appsumo in itself uh for example
maybe like changing one marketing
campaign requiring on one person or
something like that that really just
took the business to another level yeah
what one thing that's fascinating is
that there's been two CEOs right so I
started the company 12 years ago we
brought this guy on Eamon and Eamon is
just like Mr consistent he's not Mr
shiny object he didn't do he doesn't
like he's just like oh this is working
let's just keep doing it and that went
from 4 million to about 50 million in
Revenue just from him doing that
um and so I think there's something that
gets missed out on about boringness
like boring is sexy like I read this
article about um these guys boating
Across America I love Wall Street
Journal Saturdays is phenomenal free I
highly recommend it and uh that their
trainer said if I want you to train
without music I want you to train
without any stimulation just get get
used to being bored and if you can get
good at that when you're doing the ocean
or anything that's gonna be easy for you
I think Eamon has done an excellent job
at being boring like he's like ads work
let's get to an ads email marketing work
keep doing a marketing and I do think my
nature even at appsuma like I've been
back a year I was like oh Marketplace we
can let anyone listen let's get six
thousand so we went from 600 to 6 000.
Eamon would have gone from 600 to a
thousand there's different ways of
approaching how to execute a business
maybe we'll get to the same destination
but now I think it's just figuring out
that balance is of like shiny new [ __ ]
and also just doing what [ __ ] works
and keep doing that uh in terms of
inflection points in the business
I think there's a key a few key moments
number one we did a giveaway so I think
one of the best ways to get business
ideas is look at total [ __ ] random
Industries so I was like reading a
women's magazine it's also cool to read
women's magazines and in the back of the
women's magazine had like a kitchen
giveaway I was like oh that's cool we
should do a giveaway for appsumo and
then my business partner was like oh
what if we built software for it and so
we did a Dropbox for Life giveaway
because I was like that's [ __ ] great
that's crazy great yeah and we're still
playing limited storage uh I don't know
if it's unlimited but still that
couldn't be that costly like so that's
the thing we got to 250 000 subscribers
wow in a week and that definitely is
probably eight figures I don't know
about profit but he figures of Revenue
over the past seven eight years so that
was a great giveaway wow that well one
of our we have two business we have a
and I think every business should get
this is something uh we have a thing
called a mom Master operating manual and
it's basically what are the principles
for how we operate as a business so one
of them is test and invest and so test
investors we basically launched this
giveaway and we're like oh [ __ ] this
[ __ ] exploded so then our second
operating principle is double down so we
did a giveaway for life for the next
like six months Evernote for Life
Photoshop for Life Netflix for life and
we're still paying for them I'm really
hoping these people die
I hope they die soon but no how much
does it cost to give someone something
for Life uh so the thing that's
interesting is if most people only live
to around 80 right so they they're gonna
have it's non-transferable so they'll
have 60 years 100 a year for Dropbox for
life so is that six thousand yeah but
those giveaways did Millions so if you
just look at your economics these things
yeah they could live until 150 it still
makes sense oh yeah I think that's 100
yes
no but then so
um so that was a major inflection point
uh taking products that we built
internally like the giveaway and then
selling them externally so we took that
and made a king Sumo send Fox's emails
tools we were using sold out externally
send Fox sumo.com is externally uh that
definitely changed trajectory in terms
of Revenue and then new exposure
um going from I think one of the things
that everyone needs to do is like a one
minute business model like look at your
unit economics so when we started out
assuming when I started it it was
bundles of software so it'd be like
MailChimp
um Meister task uh rescue time whatever
Evernote and it was 25 for all five
tools which is an insane deal this is
such a good deal and then one day uh
Andrew Chen is my best friends and he's
an advisor of the company he's like
let's look at the union economics of
like it's five deals this price what if
you just made it singular like one deal
only which now is obvious but you just
showed the economics of it and I was
like oh so we went from five to one a
day five five bundles to just singular
deals
uh new new curve when we started doing
ads New curve and new ads when there's
no one else doing it so when we did
Facebook news feed as everyone else was
doing it
major curve
um email marketing I think is probably
the most underutilized thing for every
business out there offline and online
businesses like that's something we did
very early I Didn't Do It for the first
few months once you start collecting
emails trajectory the business changed
in the past years a lot of this the
stuff
um it's not major like Deltas it hasn't
been major like major changes what are
the biggest challenges right now for
apps anywhere are the one biggest
challenge that you guys face probably
how to have consistent growth right like
I don't know if we know our inputs that
are actually going to affect the
ultimate output of the business like is
it like is it more customers how do we
get more customers and I don't think we
know how to really control our input
dials like to grow like to grow your
channel you probably just put more
videos out like grow our YouTube channel
it's like we're gonna do three videos a
month their videos gonna be this and it
works and I think with app similar we're
at a point where uh how many people want
to buy startup software how many are
agencies or Freelancers or contractors
how many are out there that don't know
about us all right how much more how do
we reach them is there more of them and
then just really trying to understand
that do you guys buy ads on like Fiverr
and stuff like that haven't bought it
you buy ads on Fiverr probably you could
pay enough to get a banner there but I
feel like that would be the perfect
place to you know I don't know maybe if
we're here at a deal you know what
probably uh Freelancers probably a
Graham Stefan sponsorship would be it's
probably gonna change yes it's probably
it's probably way better than that if
you lose subscribers I hope not I mean
there's different things that are I
would say
I'd say right now the two major things
that I think we can fix or get better at
is number one like where we're trying to
go in the next few years so we've only
ever had like one year plans like we're
gonna try to be a minister what's like
Mark what's our number one target x
amount of Revenue and so the team was
basically asking me like where are we
going in the future where's this all
going and so then I've spent this
quarter basically putting that together
and so I think I think that'll help us
that's definitely been one of the
biggest challenges and then secondly is
the leadership team the people like we
talked about Facebook early on the
people that were helping us get to this
point are great but they've never run a
sales team of 30 plus people they've
never run an engineering team of 15 plus
people or like I don't know support team
of like 20 people and so you have to
start finding people that have taken it
past that scale so that's probably the
second biggest challenge which is like
how do you find like a chief Revenue
officer I've never heard of this role
but this is like a major role at like a
lot of new tech companies or chief
business officers so they manage the
sales and marketing organs they roll up
to them
I never heard of that so now I think
filling out the leadership team on some
of these gaps marketing we had a people
issue we had people uh Chief people
officer come in and then finding this
Chief Revenue officer let's say the
average person right here watching this
has just a random idea for a business
yeah what are the first steps just to
test it out to see if it's going to work
out not they don't already have like
anything successful or they're not
making money they just have an idea
let's let's do a real one so like what
how do you like this coffee you're
selling coffee now bankroll coffee no
for sale at bankruptcoffee.com
how is it by the way pretty good you try
the bankroll coffee yeah tastes good
taste the coffee good yeah so let's say
you have a coffee business right what
most people do like what you probably
did did you sell any of it before you
made it probably not no okay so what I
did I taste tested it you taste tested
and so how long did you go from idea to
actually making your for sale uh
oh gosh probably that's six months yeah
so and then how much did you have to
invest in like do you have to invest
anything uh I think it was I don't know
offhand it was under ten thousand
dollars uh split between two people I
think so like six six grand for me okay
and so the way I like to approach it
basically call it million dollar weekend
it's the the book I'm working on and
it's the formula that I've used at
appsumo and other companies is like how
could you have done it in 48 hours and
so the idea you're like well I can't
make coffee you have to go taste it but
what you could have done is seen is
there a demand for what you're trying to
sell so you could have emailed your
audience posted on the community tab
post on Instagram and seeing if you
could actually get buyers for it yeah
see and then if they get buyers for it
you're like hey this coffee is going to
taste just like coffee like that's my
whole stick and see if you can actually
get people to buy from you yeah and if
you can now the six months you're
spending you know you have guaranteed
customers and so I think most people do
what you do which is the opposite way
which is not you can get to the same
destination but I've always been I don't
want to spend any money I don't want to
waste any time and I want to figure out
is this something people actually want
because I've done the other way yeah
where I spent six months building a site
called bettercade.com it was sports
betting we launched it no one wanted it
I built a thing for Disney for three
months finally had it for them they
didn't want it and I was like it's got
to be another way to do this so I always
try to get people how do you do a
pre-sell how do you do validation how do
you ask people to actually want to buy
it and give you dinero cash venmo PayPal
cash app whatever and then from there
then you go build a product out so this
can this can go literally for any
business like doing watches same thing
can you because what people do if you
can't get three customers is what my
target is within 48 hours it's only
going to get [ __ ] harder so like
three yeah I think three is the right
number because one yeah okay but it
can't be like your family and friends
right it can be it should be family and
friends oh because what are they gonna
be biased and say oh yes honey I'm gonna
go and buy that you have you have a
family yeah you have like parents
probably yeah have they bought your
coffee uh no I just give it to him for
free okay yeah but then did you ask him
about it all or anything no but my uh
mine is skewed because I know whatever I
put reasonably out there people are
gonna buy it is it selling to your
expectations
yes but it's very low Roi to the point
where I don't really push it it's it
it's more so meant to be a background
that maybe one day could be something
but uh you know we sell at our cost
basically and it's great branding people
like it if I can only talk about five
things in a week I'm gonna talk about
the things usually that tend to be more
profitable and this has a lot of repeat
business so everyone that basically one
out of every two people who buys banquil
coffee for the first time will reorder
on their own without being prompted at
all yeah how much money would you say
you spend on an average month these are
for the viewers out there just to Peak
their you know their interest is
probably peaked on this right you gotta
scratch the itch yeah what is a person
like you spend per month let me just
look it up let's do really well I'm just
gonna look up my credit card bill I
think my credit card bill alone is
around 30 000 a month lately and that's
personal expenses that's personal with
some of our YouTube channel okay
personal is probably
this month I think is like 2025. I just
bought a new bike
I need 25
000. yeah oh
um bought a new like a specialized
bicycle recently I've been into pinball
machines oh those are neat dude it's
super cool it's a very powerful to have
a pinball machine so I think my credit
card bill is somewhere between 10 and
20K so I just paid off a little bit of
it so right now it's 10. what limit do
they give you uh this is just a personal
one thing it's like
12 000 and what card do they give you I
use the Sapphire card from personal cool
the business stuff is separate and then
my like my I have a house house about
two and a half million so the mortgage I
don't know it's like 12 000 all in oh no
with property tax probably a little more
yeah somewhere between like 15 to 30 000
a month okay I don't I mean I think
what's interesting is about lifestyle
inflation so as I told you my 20s like I
lived on couches for a year like I
literally try to bring a girl home and I
was like oh that's my sleeping bag on
the floor and then she left she left she
left yes you just gotta own it be like
yeah I did I did that's my sleeping bag
no I did I was like hey it's a nice
sleeping bag I got a pillow here I was
renting a not even renting I was just
saying my buddy's floor
um but I mean I just lived so cheap that
like actually getting to enjoy the money
was a and I hate when people talk about
this because it's like oh boohoo you
couldn't spend it but it was it was to
get to this wasn't right away it was
like I was doing 2 000 a month and then
it kind of it goes up as your income and
net worth goes up and also the reality
like I have 40 more years to live
probably maybe 60. and like good years
of active life probably 30. so I'm gonna
try to [ __ ] use it and enjoy it like
even yesterday I was talking with Tynan
I want to buy a sauna I love saunas and
like ice baths and [ __ ] like that but
it's like 10 000. he's like dude you
love that stuff like you're gonna use it
all the time just go get it so I'll
probably go back and get it next week
Paul and what's that what is your
business overhead per month
the team cost alone is 2 million just a
month yeah wow just there's our title
right there yeah okay title good uh
let's actually see here do you want to
see what actually is more concerning I'm
happy to share at a high level is like
our profit last month was sixty thousand
sixty thousand yeah sixty thousand
that's nothing that scares me meaning
that like if a few deals go bad or if
marketing ends up [ __ ] up something
like we could be very negative why was
it so low that month because our
operating principles got [ __ ] up so my
operating principle I use the Amazon
Approach at our company yeah which is at
the end of the year I want zero net
income and it means either we got
distributions or we reinvested in ads we
bought servers we reinvested all the
money so if you look at Amazon for years
they didn't make profit and it's because
they reinvested it so what we would
normally do is that we make a [ __ ] ton
of money and at the end of the year
there's like three million dollars or
five million dollars left of profit and
then we give it some to the team we
always do a team trip so like last year
past years ago Costa Rica or Hawaii or
wherever we pay for everybody all
expenses paid and then we buy all this
stuff and so basically we taper it down
Q4 this year we were trying to do it
equally throughout the whole year so
every month it's zero not like basically
q123 was like make up a lot of money and
then spend all of it now it's like every
month is try to hit Net Zero so we're
reinvesting all of it the problem with
that is just like if anything turns like
this recession hits potentially which
I'm I'm trying to not worry about trying
to worry about what we can control like
it could turn all this upside down so I
want us to have basically I want to get
it to about two hundred thousand dollars
in net income a month I like the Q4
approach because you want it off the
books by the end of the year 100 so it's
like then you then you know how much to
spend versus every month you're trying
to project something that like you say
you can't control a recession you can't
really control what's going to happen to
the business necessarily so in terms of
something outside of your control but
you can't control Q4 100 getting down
just for tax purposes yeah and it just
gives us the other thing I'm noticing
with businesses is that I don't know if
people should be working at 100 capacity
like you want to have the ability to
like [ __ ] ups happen having a break yeah
and so having more of a buffer where
either like we'll have to move some on
the teammate costs around reduce our
marketing spend maybe try to increase
the Top Line creates less pressure on
the overall business so I'm going to try
to get it back up to around quarter
million a month and net income cool like
cash flow cash flow and then where do
you invest personally
um I don't think I've ever showed this
I'll show you guys oh what's the biggest
thing you've ever wasted money on I mean
we spent a million dollars for Black
Friday
at appsuma to get people to list their
product in appsumo like if you listed a
product we'd give you a thousand bucks
oh wow and that was pretty much all uh I
don't think we I think our Roi on that
was maybe 50k G maybe maybe that was my
call that was a bad decision
uh why do you think it failed because it
was just like we didn't understand the
economics of how much having a product
list and what the ROI is for our
business to have them list I think that
was number one I don't think we tested
it really well said we have principles
doesn't mean we're great at it yeah
um so I thought that was pretty
interesting uh I invest in a church that
I lost half my money in that there was a
they bought a church and they were
turned into like a bar and I'm like oh
this Bar's it's a popular bar in Austin
but then the bar went out of business
it's not guaranteed and then so they
sold the church for half so I lost half
yeah okay this is my personal finance
sheet all right let's see
hey it's so so vulnerable all right
well this is wow this is incredibly
thorough yeah oh wow why do you not just
use mint because I like the
intentionality of actually having to go
and look at the numbers and then I feel
I don't know mint just felt like it was
a little lazy I felt like I have to
actually every month so in two days on
April was it June 1st I'll go and do
this again I've done this every every
month for yeah 10 years how you did your
long-term investment Investments you're
risky
Investments
yeah Rolex two hundred thousand I
collect Rolexes it's actually what
Rolexes do you have
so I buy them in specific moments of my
life to honor it as like a Memento but
it turns out Rolex as like a annualized
return is pretty [ __ ] insane like or
it can be yeah it has over the last like
probably 20 30. it's gone up in the past
few months have gone past year has gone
up insane yeah
um I bought it like when I got engaged I
bought this one when I became CEO I
didn't but I don't get it so I just
bought a Smurf but I'm not gonna get it
until we hit 100 million Revenue I bet
lately what I do now with the watches
I'll buy two or three of them and then
just when some moment happens with me
and a friend so me and my friend got a
house I got like we both got bad girls
I bought I bought it for both of us
um I thought you said bad girls
got bad girls uh got a Rolex for that no
the Smurf so I got my pilot's license so
I bought an air King cool
um I have another one when I get married
again I already bought uh I can't I
bought Pepsis to get my other friends
but the Rolex has actually held their
value pack well why don't you have a
Daytona I feel like that's like the
go-to yeah I bought one for Eamon our
CEO the previous CEO uh I just don't
have a good reason like to make up a new
reason come here yeah yeah exactly well
that was like those were kind of I don't
know the other ones all have like
specific specific things like I don't
know I guess the Hulk was green Daytona
I don't know I don't have an association
with it yet that's cool but yeah I was
basically and I don't mind putting a
public I was basically trying to
transfer crypto out and so all some
watch Brokers will take crypto and so
that basically reduces tax liability
well that's good all right I think that
was a great episode thank you so much
experience of like a dating appsumo yes
everything well thank you so much for
coming on I'll link to your Channel Down
Below in the description I guess we're
going to be doing a video as well so
I'll link to that video go and check
that out uh and then down below in the
description but also TX guys because
they're a great sponsor of this episode
yeah and you can also get a free stock
at Publix
and you can check out Noah because if
you're a single female
hey do your pitch do it there's one I
guarantee there's there's one that's
gonna all right if you here's the thing
if you're a single female and you have a
good personality and you love life I'm
looking for someone just that's positive
excited to be live hit me up on
Instagram at Noah Kagan or if you have a
friend that you think would enjoy
interacting with me any race preferably
female gender
I have Noah Kagan holler at your boy
thanks man appreciate you guys and uh if
this works oh we got Daytona's
if you get married from someone who puts
uh you know where'd you hear about me
iced coffee hour 100 all right so
they're going to like what 30 cage it's
like 30k
if you get MSRP yeah then maybe like 15.
it's really tough skin I've bought all
mine second hand yeah like at Chrono
Daytona yeah but you know what dude but
you know what Federico talks watches
might be able to help us out here is
that the guy shout out him as well
we've mentioned Federico so often on the
channel because he's like our watch guy
he's the guy he's using the plug yeah
it's always a guy yeah Delray
watchsupply.com
okay thanks I'll see you guys thank you
man