“If he sees that he can leverage a marketplace, he doesn’t want to buy a company in it. He wants to buy the whole fucking marketplace.” – John
“This is why they beat them. I use Google but I don’t have an emotional affection toward Google” – Cory
“Its people, its relationships, its reliability and then that data collection is just gangster” – Cory
“There is no other experience like it. It doesn’t exist. They created it.” – Cory
“If you aren’t different then you are the same and if you are the same then you will lose.”- John
“Lets not give ourselves reasons why we can’t and lets always give ourselves a reason, or find a solution, why we can” – John
“When I dance there are no boundaries.” – John
EPISODE 68 INDEX:
- Welcome Back: 00:30
- The Success of Tesla: 2:30
- The Mammoth That is Amazon: 13:15
- The Scaling of Uber: 20:15
- The Advertising Analytics of Facebook: 27:05
- The Experience of Apple: 35:45
- Overview/You Have The Tools At Your Disposal: 42:30
- Closing Remarks: 50:00
KEY TAKEAWAYS FROM EPISODE 68:
Tesla defied the expectation of the automative industry. It was believed that American made cars were dead. Everyone thought Elon Musk was an idiot because he was not only making cars in America but he wanted those cars to be electric. 100% battery powered. Now Tesla has greater market cap (more money invested in it) than Ford. Tesla has brought manufacturing back to the United States and is succeeding at making a battery powered car cool. Elon Musk has made himself very rich, which gives him the power to seriously affect change in the world. Not only has he innovated the automotive world but he is changing the way we explore space through Space X. He created a private company that is able to examine space for a fraction of the cost and they have recently succeeded in bringing a space shuttle back and re-using it for another flight. This is the kind of person that changes the world. The Tesla is cool, different and innovative, which is why it will explode over the next few years.
People feel really safe with Amazon. They have everything you could want on their website and they make you comfortable buying with them. You know what you are going to get when you go on Amazon and place an order. Amazon is reliability. Especially with the Prime membership, the speed is next level. It has grown into a hub for literally anything in retail. Now they are trying to take over the food delivery system by acquiring Whole Foods for 13.5 billion. They are taking over grocery, food deliver, streaming, shopping and even discussing space exploration. Jeff Bezos, the founder of Amazon, has no boundaries. If he sees that he can leverage a marketplace, he doesn’t want to buy a company in it. He wants to buy the whole fucking marketplace. Neither Jeff Bezos nor Elon Musk limit themselves to any boundaries. Right now in Silicon Valley there is an arms race between companies like Apple, Google and Amazon for AI (Artificial Intelligence) companies. They are trying to buy any AI company they can because whoever owns AI will likely own the next decade in tech. AI is becoming so innovative that they are projecting that the next version of Alexa (Amazon’s Product) will be able to intuit what you will want to know. The device will know what you want to ask before you even ask by tracking patterns in previous questions. Everyone needs to pay attention to AI.
Uber has simplified and expedited the travel process. Taxis were becoming extremely outdated and the founders of Uber, Travis and Garrett, saw this issue and developed a unique solution. Uber provides an overall better experience than a taxi because the cars are nicer, cleaner, typically the conversation is better and more convenient form of payment. Part of the genius of Uber is the employment aspect. They took something that most people have that is currently either a liability or an expense and Uber turned it into a job. The more jobs it creates, the more money the company makes. Their revenue is based on how many drivers there are and there is no shortage of need for rides. Their market value is currently estimated at over 100 billion dollars and they created this by realizing that people get paid to drive and most people have cars so why not give people an alternative to a taxi and create a shit ton of jobs. Uber drivers have a car payment that can now be paid off with a couple days of driving, turning that liability into an asset. One downside with the growth of Uber is that every car used to have a bottle of water and mints with a driver who was dressed decently. Now likely because of the volume of drivers, little things like the cleanliness of the car, the bottle of water and mints are starting to disappear from the mix. They are starting to get away from their initial culture with scale and this is dangerous. This is where Lyft enters the equation and they are now battling for business.
Facebook from a personal sense has done an excellent job of connecting people. It allows one to keep up to date with someone from high school whom otherwise they would never hear about. They created the modern social network. All social platforms are now based on what Facebook did. The company of Facebook has made hundreds of acquisitions of smaller companies that gather users, including Instagram and Whats App. They figured out that users are more valuable than currency because user’s data allows them to target people for advertising. When Google spent all their time and energy trying to destroying the world and owning online advertising for the desktop, Facebook quietly figured it out for mobile devices. They took all the data they acquired from their users and found a way to target advertise more effectively than Google on mobile. This is why their market cap is 472 billion. Facebook is able to win because they provide their user with an emotional attachment to their service. Grandparents are even on Facebook now so they can see pictures of their grandkids. Then when looking at their data base for advertisers, their algorithm is so next level that they can dial into specific demographics like no one else.
Apple put so much time into the packaging of their products. It is a next level experience. The fact that people record the unboxing of their products speaks volumes to the quality. Apple has created a technological ecosystem between iTunes, iMac, iPad, iPod, iPhone etc. that when you purchase anything from the iTunes Store and store it on iCloud you have to remain with Apple. Once you switch to an Android phone you have a lot of trouble getting all the stuff you purchased or stored with Apple. Once you are in the ecosystem, you are in. You have too much invested and can’t really get out. If you have a PC and buy an iPhone then you begin to wonder why you don’t have a Mac, iPad etc. because it makes everything so much easier when it is all connected. iTunes took advantage of when the music industry when it was in disarray. He saw the opportunity of selling music a la carte and took over the industry. No matter how old an industry is the creative thinkers find a way to repackage it and take it to another level.
If you are an entrepreneur and considering starting a business you have to think about “what is my differentiator?” because if you aren’t different then you are the same and if you are the same then you will lose. This is what Max Effort has done. Everything is so different. From the content, to the products to the podcast NO ONE does things like Max Effort. It is truly an exciting time for entrepreneurs because of the tools that are readily available to everyone. It used to be that you could only do business with those you could see and touch but now EVERYONE can reach the world through the internet. When Cory first started doing personal training he could only train people who could walk through his door. Now he is able to train and impact people all over the world. For dealmakers, you used to have to drive or fly there now you can do a sales pitch via Skype to someone who is thousands of miles away. There are literally no boundaries to the marketplace you are in and can reach.
THE PODCAST CAN’T BE STOPPED!!!