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We'll say things like, "oh man, there's just so much going on. I'm so busy. I'm just busy, busy, busy every day." When you're saying that sort of thing, it's a strong indication that you've got a bunch of unfinished business. You've got open loops, and maybe you're not capturing it. David: Hi, and welcome back. In today's episode, co-host Kevin Rosenquist and I will be discussing the topic of no more unfinished business. Welcome back, Kevin. Kevin: Good to see you, David. How you been? David: Been doing great. And you? Kevin: Good, good. So unfinished business. What do you mean when you say that? David: Well, I learned this somewhere, a number of years ago, and when I first heard, I was like, "oh man, this is me." They were talking about the fact that in business there are starters and there are finishers. And very often they're not the same person. Right? There are some people who are very good at starting projects and other people who are very good at finishing them. A lot of entrepreneurs, and some salespeople as well, are very good at starting projects. We're all excited and we're very happy to dive in, and then we tend to lose interest as we go. Kevin: Mm-hmm. David: And what that creates is a lot of unfinished things all around. And when you've got these unfinished things, they weigh on you. Right? And so when I talk about the idea of no more unfinished business, what I'm saying is that we should look at the things that are out there, that are stuck in the back of our minds. It's like, "I know I need to do that. I know I need to finish it. I haven't done it yet, but I don't feel like it," or whatever it is that's keeping us from getting it done. Kevin: Is it possible that you need to look at it and say were these things really that important in the first place? David: That's a great way to approach it. Right? Because there are things you just say, you know what? I started that, but no, that's not worthwhile. Kevin: There's a reason I didn't finish it. Yeah. David: Exactly. And it's good to eliminate that sort of thing. Whenever you're able to do that. If there's something that you're working on, you decide, look, this is not generating the results I'm looking for. Yes. Just make sure that you don't cancel it because you don't feel like doing it, right? You got to cancel it for the right reasons. If you're going to eliminate it, make sure that you evaluated it first. One of the things that I've talked about a lot in terms of just the things that we do in our projects is looking at things, I refer to it as the RADD method, RADD. It stands for Remove, Automate, Delegate, or Do. Okay, so we start with the R. Remove. And there's a reason these are actually in this order, which I'd nearly forgotten. But the reason is that if you do it in this order, you're going to end up a lot better off. If you start by removing the things that don't have to be done, then wow, that's a big relief. You're able to, essentially, Kevin: Your list just got smaller. Yeah, yeah. David: Yeah. You just eliminate it before it even becomes a problem, so that's the first step. You basically remove it. Second step is if you can automate it, right? If it's something that can be automated, then you don't have to do it. You don't have to have anyone else do it, and it will happen automatically going forward. So simple things like email autoresponders can allow you to create responses to something once and then have them happen again and again and again. So anything that can be automated, ideally should be automated. Third step is delegating. Can I delegate this to someone else? Can I delegate it to someone else in my organization? To a virtual assistant? Can somebody else do this effectively? And then the fourth one the second D is Do it. Then you actually do it. And if you go through this in that order, you remove things first. You automate them second,
I've been having conversations over the past couple of weeks about this very topic of creating certainty in uncertain times. So much of it boils down to the specific steps I can put in place in my business. Reach out to the right people, say the right things, in the right order, consistently. That will not only improve your confidence in yourself. It will improve their confidence in you and their certainty that you can do the job for them. David: Hi, and welcome back. In today's episode, co-host Kevin Rosenquist, and I will be discussing creating certainty in uncertain times. Welcome back, Kevin. Kevin: Great to see you again, David. Wow, uncertain times. There's an understatement of the year, huh? David: Yeah. There's been so much discussion on the forums and inside the social media groups and everything like that. A lot of people are uncertain about a lot of things, and that does not generally bode well for businesses. Kevin: No, no, it definitely doesn't. So what does it really mean to create certainty? When everything around you feels unstable. David: Yeah. We had talked in a previous podcast about our circles of influence. Like the things we can control and the things we can't. It really does circle back in a lot of ways to this. When we talk about creating certainty, we can only ever do that within the realms that we control. We can create certainty in specific aspects of our business. So when we're talking about things like tariffs, which obviously is a big topic these days, a lot of our clients are in the promotional products industry, and a lot of that product tends to come from overseas. Much of it is coming from China. So in those situations, we're not able to create certainty with that, right? That's not within our sphere of influence. So what we can do and what our clients can do is to look at the specific things we can create certainty around. Can we identify suppliers who are can provide products for us that are not impacted by that? Can we look at more domestic suppliers? What are the specific things we can do to create a level of certainty for our customers? Something our competitors might not be able to provide? Kevin: And I think there's a level of authenticity too that has to go with it, right? Because certainty you can sort of project certainty. but you don't want to pretend to have all the answers when you don't. So how do you balance that? David: Yeah, you can't really fake certain, well, I guess you can fake certainty. Kevin: You can try. Yeah, David: You can pretend you're certain, but I'm not really talking about that. I think there's certainly an air of confidence that you want to be able to convey to your clients, and sometimes when you're conveying confidence, you may still not be certain about things. But in this conversation, I'd like to look at, okay, what are the things that we can do? What can we be certain of? You know, are we certain that we can help our clients? And if so, how are we certain that we can help our clients? What are the things that we know that we can do that will help them? And if it's about sourcing things that are more in line with exactly what they're looking for, trying to get around the obstacles for our clients. If we're certain we can do those types of things. Just identifying the very specific steps that we can take, what can we be certain about, and then focus on those things. Kevin: You mentioned that, a lot of our listeners are in the promotional product space. There's still a lot of uncertainty that's coming our way. A lot of flipping and flopping going on with tariffs and whatnot. What do you recommend businesses do to sort of like help prep? David: Well, first thing you should do is recognize that your clients are not unaware of this. Like they are aware of the fact that this stuff's going on. Kevin: Right. David: And I've talked to a lot of business owners recently who are just really conc...
When we discuss a step-by-step approach to the sales process, we're taking a scientific approach, which most people don't do. They just keep going out there and getting in front of people, smiling and dialing, whatever it is they're doing. And when you take a more strategic approach, you just get far more consistent results. David: Hi, and welcome back. In today's episode, co-host Kevin Rosenquist, and I will be discussing a step-by-step process to the sales approach. Welcome back, Kevin. Kevin: Great to see you, David. Excited to talk about this. David: Yeah, it's great to see you as well. This actually came up because I saw this question going through a Facebook group. I thought it's an interesting topic because everybody's got their own idea of what that is, what that should be, and very few people actually have what they would describe as a step-by-step approach to the sales process, which I believe is critical if you want to be able to create consistent results. Kevin: Why is it you think that people don't implement a step-by-step process? Is it just because they just like to shoot from the hip a little bit more or what is the reasoning? David: Well, there are a lot of salespeople who do just like to go with the flow and they go with the conversation and everything like that. And there are some people who can do that extremely well. Kevin: Sure. David: But my feeling is that even those who can do that extremely well are essentially harming themselves, by not having at least a framework that they go back to again and again and again, so that when prospects or clients inevitably get them derailed, they know exactly where to come back to so that they're not missing any steps. That's why I think having the sales process in place is pretty important. Kevin: Obviously, there's no universal sales approach for every industry because you know every industry is a little different, so how can a business lay out a good step-by-step sales approach that is suitable for what they do? David: Great question. So in our business, one of the things that we help our clients with is exactly this. And a lot of our clients are in the print and promotional products industries, but this also applies to any other B2B business. It actually applies to a B2 C business. I haven't really found an industry where it doesn't apply. And so when we initially laid this out in a program called Top Secrets of Customer Acquisition, we basically laid out six steps to customer acquisition. I'll put up a graph here to sort of demonstrate it as we're going through. But the first step that we've identified is the targeting. Who exactly is it that I'm going to go after? Because if I don't know who I'm targeting, I've got no one to sell to. I've got to have a really crystal clear idea of who the people are that I would like to go after. And so for me it always starts with that, who is it that I want to sell to? Kevin: And in this day and age, we have so much data, we have so much information that there shouldn't be any reason you can't figure out that pretty precise target. David: Exactly, and a lot of times people want to feel like they sell to everybody. But the problem is that, as the saying goes, if you feel like you're selling to everybody, you're probably not selling to anyone. Because people don't always get it. They don't resonate with something unless they feel like the messaging is actually directed toward them. So, it's a really good idea to. target small, Aim small, miss small, as they said in the movie the Patriot, right? Aim small, miss small. You want to be able to do that with your targeting because when you do that, you can be more consistent in what you're saying to the people that you're approaching. It'll make a lot more sense to them, and you'll be able to get a lot more traction with what you're doing. Kevin: All right, so after targeting the right people, what's next?
We'd love to help you to get from here to there in terms of eliminating waste in your business. When you're focused on getting those things done and when you've got processes and procedures in place to allow you to accomplish it more quickly, then everything gets a whole lot better. David: Hi, and welcome back. In today's episode, co-host Kevin Rosenquist, and I will be discussing eliminating waste in your business. Welcome, Kevin. Kevin: Great to see you. David. Excited to be here. David: I'm excited to have you here. Kevin: Yeah, so we're talking waste, obviously waste in business. There's different kinds of waste. A lot of people will immediately think of money, but that's not really what we're talking about, is it? David: Well, some of what we're talking about, I guess. Yeah. There's been a lot of talk about finding and eliminating waste in the news. So I thought, how does that really apply when you're operating a business? Kevin: Mm-hmm. David: Anyone in business, particularly small to medium sized businesses, must be aware of the fact that there is always likely to waste in the business. And as you pointed out, I mean, very often it starts with money. We're afraid that we might be wasting money, and in many cases we are. Kevin: Sure. David: But for most businesses who are reasonably run well, that's usually not the biggest thing. Kevin: What would you say is the biggest thing, or can you give me like your top three? David: Okay, sure. Yeah. I think for most of us it probably starts with time. Kevin: Yeah. David: Because the time that we waste is something that we can never get back. I think I heard Brian Tracy say this years ago. If you lose money, you can always make more, but if you run out of time, that's it. All the money in the world won't help you. That's pretty much how it went. Kevin: Yeah. I mean, there's no going back. So far they haven't figured out a way. David: No. We have not figured out a way to do that. So when we look at our days, weeks or even hours, we look at things like meetings. Are our meetings productive? Are our processes organized or disorganized? What are the distractions like during the course of a day? Because when we're focusing on one thing and then we're distracted and we have to switch back and forth, it requires flipping the switches in our brains and getting ourselves adjusted to the new thing that we're thinking about. All of those things consume time, which is, in many cases, even worse than money when we start wasting it. Kevin: You brought up a good one, meetings. And I think that's something, especially in this day and age of Zoom calls and all that stuff. I have a lot of friends who are in the corporate world or in the business world, and they talk about the needless meetings, the constant need for them, for people to feel like you got to get the crew together. Why are small businesses and medium sized businesses so focused on that and how can they like pull back? David: Yeah, it's a great question. I think there are some people who just feel like it's necessary. I think there are some business owners, some managers who feel like their presence in everyone's day-to-day life is critical Kevin: Right. David: And that's true more of some people than others. Some employees are happy to be able to just do their own thing and get everything done. Others do need more interaction. So it is an individual kind of thing. I think most business owners have to take a look at that and say, how much of me do they need? How much of their sales managers do they need? But being aware of the fact that each time we force everyone to get together, the clock is running. The clock's running on everyone. And when you have a bunch of people on one meeting, that means that all those people are tied up for that period of time. And if it's not productive for everyone on that meeting or in that meeting,
Attorney David Maloney runs fantastic Super Bowl TV ads for Maloney Lyons, LLC. In this podcast, David explains how he got started running Super Bowl ads, and why the people of Mobile Alabama eagerly await his firm's ads each year. David also covers how he got started creating commercials, creating commercials in a conservative area where attorney advertising was frowned upon, which ads get traction, how the ads are created, how Super Bowl ads differ from regular TV ads, call to action vs branding, funny vs informative ads, negotiating with various TV stations such as NBC CBS Fox ABC, attention to detail, measuring success, lessons learned, and if he actually returns everyone's call. Visit David Maloney here: https://maloney-lyons.com/maloney-david-j-esq/. Watch his 2025 Super Bowl commercial here: https://youtu.be/A8tKgSKTOBw. See the Personal Injury Super Bowl Ads of 2025: https://optimizemyfirm.com/super-bowl-lix/. See all episodes or subscribe to the Personal Injury Marketing Minute here: https://optimizemyfirm.com/podcasts/. Transcript: Lindsey: Welcome to the Personal Injury Marketing Minute, where we quickly cover the hot topics in the legal marketing world. I'm your host, Lindsey Busfield. Watching the Super Bowl is one of the highlights of my year. While I'm always a little disappointed that the Broncos hardly ever make it to the big game, the commercials never let me down. This has been especially true with a handful of personal injury commercials this year. Maloney-Lyons had a particularly hilarious commercial that aired during the Super Bowl and I'm excited to have David Maloney as our guest today. David: Hey. Thanks for having me, Lindsey. Lindsey: Well, tell us a little bit about yourself, about your practice. David: Well, what's interesting is I had a commercial about what made me decide to become a lawyer to begin with. Which is that when I was 13, I had to read To Kill a Mockingbird for Mrs. Wesselman's English class. And then, that was followed up with us being able to watch it as well. And when I read it, I first started thinking, "Okay. I think this is what I want to do." And then, when I saw it, that solidified it further. And then, I was on... My father had visitation with me. I think it was like over maybe spring break or something and we were driving somewhere on the New York State Thruway. And I had told him that we had read this book and watched this and that I thought that I wanted to be a lawyer. And at that point, he told me that that was what he had always wanted to be. But that my being born kind of changed plans, and so that then bolstered it even more. And so, I decided to become an... I went to law school and I knew I wanted to represent the underdog. And then, you realize criminal law is a little different. And then, you realize also that when you're dealing with personal injury, the victims, since they're going up against big insurance companies, are usually the underdog. So ironically, years later after I'd become an attorney, I did an ad that... Especially being down here in Mobile, Alabama, which is right up the street from Monroeville, which is where the courthouse is that they still have that to Kill a Mockingbird plays every year, because that's where a lot of it was based off of. It resonated to have a commercial that focused on that. Lindsey: Well, and To Kill a Mockingbird, I think most of us read that that freshman year of high school. And Atticus Finch was such a profound character and so meaningful for people on a lot of different levels, both for career aspirations in terms of social justice. And it was one of the first books that I really connected with and it inspired my love of reading. So I love to hear that you say that and that that was part of your journey as well. David: Well, it struck a chord in the idealist in me. Lindsey: Yeah. And I mean, just such a well-written character from a literary perspective....
If we look at the idea of reactivating your client base in as many ways as possible, it means interacting with the people who have spent the money with us and doing that at a personal level, building the relationship, that's about the best thing we can do. David: Hi, and welcome to the podcast. In today's episode, cohost Jay McFarland, and I will be discussing reactivating your client base. Welcome Jay. Jay: It's good to be here. You know, it's funny. I hear this everywhere I go now. If I watch Shark Tank or anything else, I hear this term CAC. You know, what is your CAC? And it's your customer acquisition cost. And I have to believe that your CAC, for a customer you've already worked with, has got to be lower than trying to bring in a brand new customer. Am I right? David: Oh, absolutely. And I think instinctively as business people, we probably already know this. We've probably heard it a hundred times, but the purpose of this discussion is not to have you hear it again. The purpose of this discussion is to ask, “are you doing this?” And if so, how well are you doing this? How much better could you be doing this? Because as you pointed out, once you've invested that money to acquire a customer, now you want to be able to leverage that relationship as much as possible to provide them with additional help, additional solutions so that you can generate the revenue. They can get the results they're looking for, and you're not spending more money to attract people. You're able to just expand the relationships that you have with the people who you've already acquired that first time. Jay: Yeah. And I think it's disappointing if you spent that money for customer acquisition and then you don't have a system to retain them or keep them online. And so now it's almost like you're spending the same money twice. If you're trying to get them back again. David: Right. Yes. And so when we think about reactivation, there are a couple of aspects to it. One is just people who haven't bought from you in a little while, to touch base with them again, to reengage those people and to see what they want, what they need. Essentially, requalifying them to find out where they are in that process. Are they ready to buy more things? Do they have a date in mind when they want to buy? Are they ready to go now? Or are they just not ready to do anything? Are they sort of disqualified for the moment? Are they unresponsive to you? Because they'll generally fall into one of those five categories. They're either ready to buy. They have dates in mind when they want to buy. They're open to the idea, but not sure when. Or they're disqualified, or they're not responsive. When you are able to go back and sort of requalify your existing clients, you can reactivate the ones who are ready to go now. You can schedule the ones who know when they want to go next. And the ones who are generally receptive, you can just stay in touch. Jay: Yeah. Or what about the ones who were disappointed, but they didn't take the time. Right? So many customers will never tell you that they had a bad experience. They just move on and… David: Yeah. Jay: you had no idea. So you're not improving your customer service and your chance of reviving that customer is very low. David: Yeah. And that's an excellent point, too. Because as you indicated, if you don't know that, but you're reaching out to them to see how you can help next, and you find out about that problem, then at least you have the possibility of restoring the relationship, if not doing anything about the previous order. Jay: Yeah. So what are we talking about here? Like good drip campaigns? Is that kind of where you would start? So you're in constant contact? What do you think is the best way to go about this? David: Well, I do think it starts with engaging your people. You can engage your people in a lot of different ways. It can be done via email with a drip campaign.
Reimagining the essentials is different for everyone. And I hear both sides of that from people. I hear people who are like, ” oh yeah, you know, I've been doing this forever. I know exactly what I'm doing and all that sort of thing.” And then I have people on the other side who are like, “Hey, I'm doing all the things that I've done before. I'm doing it more aggressively. I'm doing much more of it. I'm doing it with more people and it's not working.” And so for the people who are struggling with that… again, it's not really a matter of saying, “well, now instead of prospecting, we need to do something different.” No, you're still going to need to do prospecting. The question is, “can we now do it in a way that is going to reach the people that you need to reach, communicate the things that we need to communicate and allow us to advance our communications and close the sales?” David: Hi and welcome to the podcast. Today, co-host Jay McFarland and I will be discussing reimagining the essentials. Welcome, Jay. Good to have you here. Jay: It's so good to be here once again. I'm very excited about today's topic. What's the Point of Reimagining the Essentials? David: Yeah. I mean the whole idea of the essentials to some people it's like, "oh, essentials, that's boring." Right? But it seems to me that in current times we really need to look at the essentials and say, "okay, how can we tweak them or fine tune them or change them around so that they're going to be more effective in a 21st century post-COVID economy?" Jay: Yeah. When I think about essentials, I think about foundational type things. And once you take away the foundation, other things that you have in play don't work as well. So what type of essentials specifically are we talking about that we want to, that we might look at in one when everybody looks at it that way, but we're going to reimagine or rethink about them in a different way? David: Well, I guess when I think of the fundamentals or the essentials, I tend to think of the real basics, prospecting, presenting, following up when it comes to sales. And sometimes you start talking about those things and people's eyes glaze over like, "oh, I know all that stuff." And yeah, we all know we need to do it. Knowing and Doing are Two Different Things We all know we need to do prospecting. We need to make presentations. We need to follow up with prospects and clients. But knowing it, knowing what to do, is really not the issue at all. It's how are we doing it? How well are we doing it? How much better are we doing it than our competitors? How frequently are we doing it? How consistently are we doing it? There are all these different nuanced aspects of it that completely change the results. And when we look at things like prospecting now versus five years ago, 10 years ago, it's completely different. Same thing with presenting, same thing with following up. In the past, it was basically phone and in person. Well now phone and in person are a lot less popular than other methods of communication. So that's really what I'm talking about here. Jay: Yeah, I think again, it's so important, you know, it's so easy to just fall into that trap of I've, you know, we've done it this way forever and it's always worked. I think it's hard for people to break free from those things, because it's hard to know what type of impact you really can have. And I think part of that is even understanding what your baseline is before you can make changes to understand if you're making any progress, right? What Happens When Everything Changes? David: Yeah, absolutely. And I hear both sides of that from people. I hear people who are like, " oh yeah, you know, I've been doing this forever. I know exactly what I'm doing and all that sort of thing." And then I have people on the other side who are like, "Hey, I'm doing all the things that I've done before. I'm doing it more aggressively.
Sometimes during a group it is as if a light comes on that illuminates some aspect of life in a magnificent fashion and that speaks to each person in the group whatever their background or station in life. This was true in particular this evening as we continued to discuss St. John's writing “To the Shepherd” on the responsibilities of a spiritual elder. As we made our way through the text, it became clear that St. John's teaching about the care of souls applies to all of those who are responsible for the formation of others; not only priests or religious, but also parents, teachers, friends, etc. Not one of us is free from the charge of the salvation of others; aiding them through our prayers, taking opportune moments to clarify their understanding of the faith, being living witnesses of the gospel and the love of the cross. All of us have the responsibility of seeking purity of heart and freedom from the passions in order that we might be able to discern with clarity and humility the needs of those around us. Lacking this, St. John tells us, we undermine our capacity to be well disposed and compassionate to each individual for whom we are responsible or who enters our life. How is it that we can serve others if we cannot discern good from evil and everything in between? In fact, St. John tells us it is a great disgrace for a superior to pray for or hold forward spiritual gifts to others that he himself is not acquired. How is it that he can faithfully guide others to God and to become partakers of the glory of God if he has no understanding of this within his own heart. Experience is the truest teacher and if the superior lacks that experience, he may only bring harm to others. Those who are spiritual elders, fathers, or mothers, must not be tempted to set aside this role in order to enjoy worldly friendship with those in their charge. It can be a natural thing to want companionship and to some extent this can exist. However, if a familiarity develops between the superior and others, he may lose the capacity to guide and feel constrained to do the bidding of others; never to contradict them, refuse them, or correct them. The elder must be pure of heart and able to understand the interior life and also the realities that sanctify us within the life of the church. The elder must be able to create a culture that forms a mind and heart directed toward God, the love of neighbor and the love of virtue. He must be able to discern the emotional capacity and maturity of others, so as not to push too hard and risk breaking their spirit or neglect giving counsel or correction of those who are quick witted and naturally gifted. Such purity of heart alone allows the elder to perceive supernatural realities and to understand the struggles that individuals have with multiple demons. The elder must be able to cure passions thought by others to be incurable. In this sense, he must have truly put on the mind of Christ and be the most humble and obedient member of the community. --- Text of chat during the group: 00:14:02 Bob Cihak, AZ: P. 251, # 14 00:19:16 carol_000: Is much known about the repentance of Joseph's brothers or God chastising them for their treatment of Joseph 00:26:27 David: I think this is a big problem also in families. My oldest son felt I was often to hard on him. Now that he is 27 he has mentioned several times that I was the only one that loved him and was always there. It is really hard but being a father is different than being a friend only there to enjoy the good times and not try to guide someone to what has value. 00:28:48 Art: Reacted to "I think this is a bi..." with
Imagine enjoying the freedom to focus on visionary leadership while your business runs like a well-oiled machine. This Monday Morning Episode dives deep into the art of systemization in business operations, partnering with systems expert David Jenyns to reveal transformative strategies that liberate business owners and team members from monotonous daily tasks. Discover insights behind legendary organizations like McDonald's and Netflix, as David sheds light on the benefits of implementing documented processes. This episode not only highlights how these processes lead to career growth, job security, and streamlined workflows but also tackles the common hurdle of team resistance, providing actionable advice on engaging early adopters and ensuring positive introductions to new systems.David emphasizes the importance of clear communication and tailored processes that strike the ideal balance between systemization and empowerment. He discusses how business owners can remove non-compliance excuses, set clear expectations, and build a team of systems-driven individuals, paving the way for sustainable success. Tune in to learn how to transform your business into a systemized powerhouse, where creativity and structure coexist seamlessly, all thanks to tried-and-true methodologies.What You'll Learn in This Episode:Benefits of documented processes for career growth.Strategies for overcoming team resistance to new systems.How clear communication and setting expectations lead to smoother workflows.Techniques to remove excuses for non-compliance.The impact of surrounding yourself with systems-driven individuals.How renowned companies like McDonald's and Netflix utilize effective systemization.Tune in now to transform your business with expert strategies for systemization!You can reach out to David Jenyns here:Website: https://www.systemology.com/Mentions and Links: Accounting Software:MYOBBrands:McDonald'sNetflixIf you want your questions answered on Monday Morning Episodes, ask me on these platforms:My Newsletter: https://thedentalmarketer.lpages.co/newsletter/The Dental Marketer Society Facebook Group: https://www.facebook.com/groups/2031814726927041Episode Transcript (Auto-Generated - Please Excuse Errors)Michael: Hey Dave, so talk to us. What's one piece of advice you can give us this Monday morning? David: When it comes to stepping out of the day to day operations as a business owner, you've got to capture your systems and your processes. And most importantly, you've got to get your team on board. And I feel like that's probably the biggest challenge for a lot of business owners.They try to systemize, they try it for a little bit, maybe one team member follows, maybe most of them don't, and then before they know it, everybody's forgotten about it, and it's just back to the way that things have always been. And it really, this one piece of advice I've got centers around how do you get your team on board?How do you get your team to follow process? And even. resistant team members. How do you get them to go, Oh, this is how we do things here. And key here is the way in which it's introduced to your team. A lot of business owners, when they go, Oh, we're going to start documenting our process. And we're going to have a particular way of doing things.The team member in their brain, they start to think, Should I be worried about my job? Is he trying to document what I'm doing so that he can replace me? Is he going to take my job offshore? I kind of like having this little black box where no one really knows what I'm doing because. It creates some level of job security for me.I don't want to capture my process and have that available and accessible for everybody else. So that's some of the things that go on in their head and that's what can make them resistant and then fall back to the ways that they may have done things in the past or not even want to share what it is that they're doing.So the bit of advice and the secret here is to really think about How it's going to benefit the team member. rather than just introducing it where the team thinks, Oh, the business owner is doing this to replace me, or maybe they want to go on a holiday. And, don't want to support that.Show them how, hang on, if you document your process or capture the way that you're doing things, this can help you move up in our organization because, by documenting process, we could delegate down to some newer team members. And that doesn't make you less valuable. It makes you more valuable because now you can work on higher value tasks.You can start to work your way up and work on these higher value activities. That's might appeal to some people. For other people, you might need to say, Hey, when you go on holiday and you tell me you want two weeks off and I say fine, but then I call you up every second day to go, Oh, where's that client's file up to?Oh, is that job up to? Do you remember where we saved that thing? And I'm on the phone calling you every second to try and find out what's going on. By documenting our process, it means that other people can step in and do some of those tasks, and the team can keep things moving while you're on leave, so when you come back, those things are done, and you can have a proper, restful holiday.So that might appeal to someone else, or, maybe it's, hey, there are going to be times when you're going to need time off for family. So, having process and the enable systems just means that people can step in and keep things moving. And that makes your job more secure and this business more secure.So again, a lot of it has to do with how you frame it and how you let them know this is going to benefit their situation. That'll dramatically increase the adoption of a systems culture. Michael: Gotcha. Okay. So then, David, can you share specific communication strategies you've used to address this type of resistance?How do you ensure the message is understood and embraced by team members? David: Well, The first thing to do and it's a little bit counterintuitive, is you actually don't think about who's going to resist it up front. Think about who's going to support this initiative. So when you first introduce the topic and you say, Hey, we're going to look to build a systems culture and want to capture some different processes.Hey, I've got, this book or this podcast that I want to share with you, just that talks a little bit about what we're doing and then see who resonates with it, who listens to it, who gets it and say, Hey I'm looking for some people who want to help me drive this forward. Who sticks their hand up.And then start off by leaning into them. So that's kind of step number one. You start to empower them, you get the first set of systems down and then you start to celebrate system wins. when a team member does something, you go, Hey, we just documented this new process. Jenny did an awesome job over here.Hey, Sarah, we normally have this frustration when someone goes on leave, but Sarah documented this process. And then we had John step in and do the task. Hey, Sarah, you're awesome. And you shine a spotlight on that. Maybe you give out a monthly most valued player award to the person who really embraces this idea.that's the best place to start because then you start to go, Hey, we're going to celebrate and showcase, and this is what we want more of. So that's the first step. And then you start to watch out for the. resistant team members. Now, the best thing that you can do for them is firstly lead by example, and then by shining a light on the people that are, doing it.And then you want to give those team members every opportunity to jump on board because new things you have to figure it out. And some people are going to embrace change more than others. And you try and support them. And then you need to really think about every team member and their situation.And the real key is a lot of times team members, their default excuses. Yeah, but I didn't know how, or I didn't know that was expected of me. So one of the first things that you need to do is. To remove that. So by capturing a system and a process, you're then saying, Hey, well, we have a way of doing things.You want to make sure that's never more than one click away from when they actually are doing the task. So if it's, setting up something in the dental practice, we'll have a QR code that they scan on their phone. Maybe it's on the printer or something, and it jumps to the. System or the process after scanning that QR code, or maybe it's setting up the dental practice in the morning and here's the 10 point checklist that needs to be done.It's got to be so obvious. So front and center. So you can remove that. And then the conversation can start to change. Okay, you did know we've got a process. It's listed out here. My expectation is that you follow the process. I don't care if you've got it open or not, if you're doing it right, but since you don't yet know the process, you've got to have it open, but once you get it right, then fine.You don't have to have it open every single time, but at the start, this is my expectation. And that's kind of just the start of how you address it. You've got to remove excuses. Michael: so then what consequences do you implement for team members who continually resist systems? Even though you've, done these systems, you've,Remove the excuses or try to, have you found incentives to be effective in encouraging this type of adherence? David: you can, like I said, have something like the MVP where you might reward the system wins and shine a spotlight. You can even link it towards KPIs either the generation or the following of process.can do a few things like that. I think the reality is. A lot of business owners don't realize up front how important it is to have someone who follows process. And it's not something that they've, incorporated into their recruitment process. Once you get this moving forward, it actually gets a lot easier.Because you look for people who will adopt this way of doing things right from the get go. The challenge is always the existing staff who are used to doing things a certain way, who there may actually be some people in there who aren't processed people. you'll need to navigate through that.Am I saying that you might need to jump in and do a whole bunch of, layoffs? that's definitely the last resort. And I know in certain different industries, finding labors can be challenging, but the reality is a business is infinitely easier when you surround yourself as a business owner with systems driven people.And that goes double if the business owner, or maybe the. dental practitioner owner isn't a systems person. If you don't see yourself as a systems person, then you better make sure that you're surrounded by systems driven people. Because again, business just works better that way.So do have to navigate through it. I've not seen, incentives. work amazingly well, generally you want people to do it, who do this naturally and then naturally organized people and you giving everybody the chance to jump on board and then addressing the ones that don't, oftentimes you're the employer, like the person listening to this, you're paying, they're there to do a job and it's okay for you to have, A set of expectations around the way that you want things done.That's your right as a business owner. But just persist with it. Cause it's, challenging at the start, but you get over this hump and then business just gets so much easier. Michael: Yeah, I like that. Okay. So then you mentioned KPIs to like, do you track and measure whether team members are following the systems specifically as a leader?Like what role do you personally play in and ensuring systems are followed? David: there's a couple of different ways that you can do it depending on the task, depending on who it is. If you've got some sort of project management software in how tasks are signed out, you can look at how they complete the tasks many times they're checking certain things off.You can have a look at error rate depending on if certain tasks causing you some challenges because people aren't following process and it's causing errors. So you can track that error rate and you're looking for reduction in that by following the process. it comes down to this whole idea that, to improve something, you have to track it.So you just have to think about what is it that you want to improve? If you want to improve the fact that they're. Opening the process or successfully completing it. Maybe there's some final step that they have to complete, which confirms that they have reviewed and followed the checklist.And then you're monitoring how often they're doing that, or are they doing that? depend on the situation and the task. Michael: Gotcha, gotcha. I like that. that in mind, like at the end of the day, make sure you're,you let me know, or you send me an email or you do this checklist.And then office manager at the end of the week, we'll look at how many people did this. How do you balance being hands on with empowering your team to take ownership of these systems versus it's seeming like, man, he's just micromanaging everything. David: Yes. Yeah. The main thing there is depending on what the work is, you've got to Systemize all of the things that need to happen in business.There are certain things that kind of just need to happen a certain way. patients will need to be checked in a certain way or they have to fill out certain forms, maybe The practice or the studio needs to be set up a particular way, try and systemize all of the mundane pieces or parts of business that just need to be done a certain way.And sometimes leaving out the creative part or doing those types of systems a little bit more high level, You, you've got to think about who's doing the task and documenting to the level that's required for that person. If they're a skilled operator, you don't need to tell them well, here's exactly how you log into MYOB.Here's the exact buttons that you need to check. it can feel, like you're micromanaging at that level. It's art and science, to try and find the right balance for this. look at something like McDonald's, And McDonald's has systemized every possible aspect down to the minute detail, but they're also running a hamburger business that is taking very unskilled operators, flipping hamburgers.So they've got to go down to that level and it can really feel. Like micromanagement, whereas a lot of people are going to be running, a successful business with high quality team members, and you've mightnot need to get down to that level. A quote that Reed Hastings said from Netflix and he said, when we started systemizing, we wanted to systemize every possible aspect of the business. We wanted to make sure our business was dummy proof. The only thing was once we got it to that level, only dummies wanted to work there. Because they'd gone too far on the systemization spectrum.So again, lot of this has be with, thinking about the situation, the individuals and what they need to do a great job. If it feels like micromanagement chunk up a level, have a higher quality or higher level checklist that has, key milestone levels instead of these super micro details.Michael: Nice. Awesome, David. I appreciate your time. And if anyone has further questions, you can definitely find them on the Dental Marketer Society Facebook group or where can they reach out to you directly? David: Yeah, best to just go to systemology. com and there's some links through to, all of the ways to contact us or follow us on social media.Michael: Awesome. So that's going to be in the show notes below. And David, thank you so much for being with me on this Monday morning episode. David: Pleasure. Thank you.
On this episode of the pod, my guest is David Cayley, a Toronto-based Canadian writer and broadcaster. For more than thirty years (1981-2012) he made radio documentaries for CBC Radio One's program Ideas, which premiered in 1965 under the title The Best Ideas You'll Hear Tonight. In 1966, at the age of twenty, Cayley joined the Canadian University Service Overseas (CUSO), one of the many volunteer organizations that sprang up in the 1960's to promote international development. Two years later, back in Canada, he began to associate with a group of returned volunteers whose experiences had made them, like himself, increasingly quizzical about the idea of development. In 1968 in Chicago, he heard a lecture given by Ivan Illich and in 1970 he and others brought Illich to Toronto for a teach-in called “Crisis in Development.” This was the beginning of their long relationship: eighteen years later Cayley invited Illich to do a series of interviews for CBC Radio's Ideas. Cayley is the author of Ivan Illich: An Intellectual Journey (2022), Ideas on the Nature of Science (2009), The Rivers North of the Future: The Testament of Ivan Illich (2004), Puppet Uprising (2003),The Expanding Prison: The Crisis in Crime and Punishment and the Search for Alternatives (1998), George Grant in Conversation (1995), Northrop Frye in Conversation (1992), Ivan Illich in Conversation (1992), and The Age of Ecology (1990).Show Notes:The Early Years with Ivan IllichThe Good Samaritan StoryFalling out of a HomeworldThe Corruption of the Best is the Worst (Corruptio Optimi Pessima)How Hospitality Becomes HostilityHow to Live in ContradictionRediscovering the FutureThe Pilgrimage of SurpriseFriendship with the OtherHomework:Ivan Illich: An Intellectual Journey (Penn State Press) - Paperback Now Available!David Cayley's WebsiteThe Rivers North of the Future (House of Anansi Press)Ivan Illich | The Corruption of Christianity: Corruptio Optimi Pessima (2000)Charles Taylor: A Secular AgeTranscript:Chris: [00:00:00] Welcome, David, to the End of Tourism Podcast. It's a pleasure to finally meet you. David: Likewise. Thank you. Chris: I'm very grateful to have you joining me today. And I'm curious if you could offer our listeners a little glimpse into where you find yourself today and what the world looks like for you through the lenses of David Cayley.David: Gray and wet. In Toronto, we've had a mild winter so far, although we did just have some real winter for a couple of weeks. So, I'm at my desk in my house in downtown Toronto. Hmm. Chris: Hmm. Thank you so much for joining us, David. You know, I came to your work quite long ago.First through the book, The Rivers North of the Future, The Testament of Ivan Illich. And then through your long standing tenure as the host of CBC Ideas in Canada. I've also just finished reading your newest book, Ivan Illich, An Intellectual Journey. For me, which has been a clear and comprehensive homage [00:01:00] to that man's work.And so, from what I understand from the reading, you were a friend of Illich's as well as the late Gustavo Esteva, a mutual friend of ours, who I interviewed for the podcast shortly before his death in 2021. Now, since friendship is one of the themes I'd like to approach with you today, I'm wondering if you could tell us about how you met these men and what led you to writing a biography of the former, of Ivan.David: Well, let me answer about Ivan first. I met him as a very young man. I had spent two years living in northern Borneo, eastern Malaysia, the Malaysian state of Sarawak. As part of an organization called the Canadian University Service Overseas, which many people recognize only when it's identified with the Peace Corps. It was a similar initiative or the VSO, very much of the time.And When I returned to [00:02:00] Toronto in 1968, one of the first things I saw was an essay of Ivan's. It usually circulates under the name he never gave it, which is, "To Hell With Good Intentions." A talk he had given in Chicago to some young volunteers in a Catholic organization bound for Mexico.And it made sense to me in a radical and surprising way. So, I would say it began there. I went to CDOC the following year. The year after that we brought Ivan to Toronto for a teach in, in the fashion of the time, and he was then an immense celebrity, so we turned people away from a 600 seat theater that night when he lectured in Toronto.I kept in touch subsequently through reading mainly and we didn't meet again until the later 1980s when he came to Toronto.[00:03:00] He was then working on, in the history of literacy, had just published a book called ABC: the Alphabetization of the Western Mind. And that's where we became more closely connected. I went later that year to State College, Pennsylvania, where he was teaching at Penn State, and recorded a long interview, radically long.And made a five-hour Ideas series, but by a happy chance, I had not thought of this, his friend Lee Hoinacki asked for the raw tapes, transcribed them, and eventually that became a published book. And marked an epoch in Ivan's reception, as well as in my life because a lot of people responded to the spoken or transcribed Illich in a way that they didn't seem to be able to respond to his writing, which was scholastically condensed, let's [00:04:00] say.I always found it extremely congenial and I would even say witty in the deep sense of wit. But I think a lot of people, you know, found it hard and so the spoken Illich... people came to him, even old friends and said, you know, "we understand you better now." So, the following year he came to Toronto and stayed with us and, you know, a friendship blossomed and also a funny relationship where I kept trying to get him to express himself more on the theme of the book you mentioned, The Rivers North of the Future, which is his feeling that modernity, in the big sense of modernity can be best understood as perversionism. A word that he used, because he liked strong words, but it can be a frightening word."Corruption" also has its difficulties, [00:05:00] but sometimes he said "a turning inside out," which I like very much, or "a turning upside down" of the gospel. So, when the world has its way with the life, death and resurrection and teaching of Jesus Christ which inevitably becomes an institution when the world has its way with that.The way leads to where we are. That was his radical thought. And a novel thought, according to the philosopher Charles Taylor, a Canadian philosopher, who was kind enough to write a preface to that book when it was published, and I think very much aided its reception, because people knew who Charles Taylor was, and by then, they had kind of forgotten who Ivan Illich was.To give an example of that, when he died, the New York [00:06:00] Times obituary was headlined "Priest turned philosopher appealed to baby boomers in the 60s." This is yesterday's man, in other words, right? This is somebody who used to be important. So, I just kept at him about it, and eventually it became clear he was never going to write that book for a whole variety of reasons, which I won't go into now.But he did allow me to come to Cuernavaca, where he was living, and to do another very long set of interviews, which produced that book, The Rivers North of the Future. So that's the history in brief. The very last part of that story is that The Rivers North of the Future and the radio series that it was based on identifies themes that I find to be quite explosive. And so, in a certain way, the book you mentioned, Ivan Illich: An Intellectual Journey, [00:07:00] was destined from the moment that I recorded those conversations. Chris: Hmm, yeah, thank you, David. So much of what you said right there ends up being the basis for most of my questions today, especially around the corruption or the perversion what perhaps iatrogenesis also termed as iatrogenesis But much of what I've also come to ask today, stems and revolves around Illich's reading of the Good Samaritan story, so I'd like to start there, if that's alright.And you know, for our listeners who aren't familiar either with the story or Illich's take on it, I've gathered some small excerpts from An Intellectual Journey so that they might be on the same page, so to speak. So, from Ivan Illich, An Intellectual Journey:"jesus tells the story after he has been asked how to, quote, 'inherit eternal life,' end quote, and has replied that one must love God and one's neighbor, [00:08:00] quote, 'as oneself,' but, quote, who is my neighbor? His interlocutor wants to know. Jesus answers with his tale of a man on his way from Jerusalem to Jericho, who is beset by robbers, beaten, and left, quote, 'half dead' by the side of the road.Two men happen along, but, quote, 'pass by on the other side.' One is a priest and the other a Levite, a group that assisted the priests at the Great Temple, which, at that time, dominated the landscape of Jerusalem from the Temple Mount. Then, a Samaritan comes along. The Samaritans belonged to the estranged northern kingdom of Israel, and did not worship at the Temple.Tension between the Samaritans and the Judeans in the Second Temple period gives the name a significance somewhere between 'foreigner' and 'enemy.' [00:09:00] In contemporary terms, he was, as Illich liked to say, 'a Palestinian.' The Samaritan has, quote, 'compassion' on the wounded one. He stops, binds his wounds, takes him to an inn where he can convalesce and promises the innkeeper that he will return to pay the bill.'And so Jesus concludes by asking, 'Which of the three passers by was the neighbor?'Illich claimed that this parable had been persistently misunderstood as a story about how one ought to act. He had surveyed sermons from the 3rd through 19th centuries, he said, 'and found a broad consensus that what was being proposed was a, quote, rule of conduct.' But this interpretation was, in fact, quote, 'the opposite of what Jesus wanted to point out.'He had not been asked how to act toward a neighbor, but rather, 'who is my neighbor?' And he had replied, [00:10:00] scandalously, that it could be anyone at all. The choice of the Samaritan as the hero of the tale said, 'in effect, it is impossible to categorize who your neighbor might be.' The sense of being called to help the other is experienced intermittently and not as an unvarying obligation.A quote, 'new kind of ought has been established,' Illich says, which is not related to a norm. It has a telos, it aims at somebody, some body, but not according to a rule. And finally, The Master told them that who your neighbor is is not determined by your birth, by your condition, by the language which you speak, but by you.You can recognize the other man who is out of bounds culturally, who is foreign linguistically, who, you can [00:11:00] say by providence or pure chance, is the one who lies somewhere along your road in the grass and create the supreme form of relatedness, which is not given by creation, but created by you. Any attempt to explain this 'ought,' as correspond, as, as corresponding to a norm, takes out the mysterious greatness from this free act.And so, I think there are at least, at the very least, a few major points to take away from this little summary I've extracted. One, that the ability to choose one's neighbor, breaks the boundaries of ethnicity at the time, which were the bases for understanding one's identity and people and place in the world.And two, that it creates a new foundation for hospitality and interculturality. And so I'm [00:12:00] curious, David, if you'd be willing to elaborate on these points as you understand them.David: Well if you went a little farther on in that part of the book, you'd find an exposition of a German teacher and writer and professor, Claus Held, that I found very helpful in understanding what Ivan was saying. Held is a phenomenologist and a follower of Husserl, but he uses Husserl's term of the home world, right, that each of us has a home world. Mm-Hmm. Which is our ethnos within which our ethics apply.It's a world in which we can be at home and in which we can somehow manage, right? There are a manageable number of people to whom we are obliged. We're not universally obliged. So, what was interesting about Held's analysis is then the condition in which the wounded [00:13:00] man lies is, he's fallen outside of any reference or any home world, right?Nobody has to care for him. The priest and the Levite evidently don't care for him. They have more important things to do. The story doesn't tell you why. Is he ritually impure as one apparently dead is? What? You don't know. But they're on their way. They have other things to do. So the Samaritan is radically out of line, right?He dares to enter this no man's land, this exceptional state in which the wounded man lies, and he does it on the strength of a feeling, right? A stirring inside him. A call. It's definitely a bodily experience. In Ivan's language of norms, it's not a norm. It's not a duty.It's [00:14:00] not an obligation. It's not a thought. He's stirred. He is moved to do what he does and he cares for him and takes him to the inn and so on. So, the important thing in it for me is to understand the complementarity that's involved. Held says that if you try and develop a set of norms and ethics, however you want to say it, out of the Samaritan's Act, it ends up being radically corrosive, it ends up being radically corrosive damaging, destructive, disintegrating of the home world, right? If everybody's caring for everybody all the time universally, you're pretty soon in the maddening world, not pretty soon, but in a couple of millennia, in the maddening world we live in, right? Where people Can tell you with a straight face that their actions are intended to [00:15:00] save the planet and not experience a sense of grandiosity in saying that, right?Not experiencing seemingly a madness, a sense of things on a scale that is not proper to any human being, and is bound, I think, to be destructive of their capacity to be related to what is at hand. So, I think what Ivan is saying in saying this is a new kind of ought, right, it's the whole thing of the corruption of the best is the worst in a nutshell because as soon as you think you can operationalize that, you can turn everyone into a Samaritan and You, you begin to destroy the home world, right?You begin to destroy ethics. You begin to, or you transform ethics into something which is a contradiction of ethics. [00:16:00] So, there isn't an answer in it, in what he says. There's a complementarity, right? Hmm. There's the freedom to go outside, but if the freedom to go outside destroys any inside, then, what have you done?Right? Hmm. You've created an unlivable world. A world of such unending, such unimaginable obligation, as one now lives in Toronto, you know, where I pass homeless people all the time. I can't care for all of them. So, I think it's also a way of understanding for those who contemplate it that you really have to pay attention.What are you called to, right? What can you do? What is within your amplitude? What is urgent for you? Do that thing, right? Do not make yourself mad with [00:17:00] impossible charity. A charity you don't feel, you can't feel, you couldn't feel. Right? Take care of what's at hand, what you can take care of. What calls you.Chris: I think this comes up quite a bit these days. Especially, in light of international conflicts, conflicts that arise far from people's homes and yet the demand of that 'ought' perhaps of having to be aware and having to have or having to feel some kind of responsibility for these things that are happening in other places that maybe, It's not that they don't have anything to do with us but that our ability to have any kind of recourse for what happens in those places is perhaps flippant, fleeting, and even that we're stretched to the point that we can't even tend and attend to what's happening in front of us in our neighborhoods.And so, I'm curious as to how this came to be. You mentioned "the corruption" [00:18:00] and maybe we could just define that, if possible for our listeners this notion of "the corruption of the best is the worst." Would you be willing to do that? Do you think that that's an easy thing to do? David: I've been trying for 30 years.I can keep on trying. I really, I mean, that was the seed of everything. At the end of the interview we did in 1988, Ivan dropped that little bomb on me. And I was a diligent man, and I had prepared very carefully. I'd read everything he'd written and then at the very end of the interview, he says the whole history of the West can be summed up in the phrase, Corruptio Optimi Pessima.He was quite fluent in Latin. The corruption of the best is the worst. And I thought, wait a minute, the whole history of the West? This is staggering. So, yes, I've been reflecting on it for a long time, but I think there are many ways to speak [00:19:00] about the incarnation, the idea that God is present and visible in the form of a human being, that God indeed is a human being in the person of Jesus Christ.One way is to think of it as a kind of nuclear explosion of religion. Religion had always been the placation of a god. Right? A sacrifice of some kind made to placate a god. Now the god is present. It could be you. Jesus is explicit about it, and I think that is the most important thing for Iman in reading the gospel, is that God appears to us as one another.Hmm. If you can put it, one another in the most general sense of that formula. So, that's explosive, right? I mean, religion, in a certain way, up to that moment, is society. It's the [00:20:00] integument of every society. It's the nature of the beast to be religious in the sense of having an understanding of how you're situated and in what order and with what foundation that order exists. It's not an intellectual thing. It's just what people do. Karl Barth says religion is a yoke. So, it has in a certain way exploded or been exploded at that moment but it will of course be re instituted as a religion. What else could happen? And so Ivan says, and this probably slim New Testament warrant for this, but this was his story, that in the very earliest apostolic church. They were aware of this danger, right? That Christ must be shadowed by "Antichrist," a term that Ivan was brave enough to use. The word just has a [00:21:00] terrible, terrible history. I mean, the Protestants abused the Catholics with the name of Antichrist. Luther rages against the Pope as antichrist.Hmm. And the word persists now as a kind of either as a sign of evangelical dogmatism, or maybe as a joke, right. When I was researching it, I came across a book called "How to Tell If Your Boyfriend Is The Antichrist." Mm-Hmm. It's kind of a jokey thing in a way, in so far as people know, but he dared to use it as to say the antichrist is simply the instituted Christ.Right. It's not anything exotic. It's not anything theological. It's the inevitable worldly shadow of there being a Christ at all. And so that's, that's the beginning of the story. He, he claims that the church loses sight of this understanding, loses sight of the basic [00:22:00] complementarity or contradiction that's involved in the incarnation in the first place.That this is something that can never be owned, something that can never be instituted, something that can only happen again and again and again within each one. So, but heaven can never finally come to earth except perhaps in a story about the end, right? The new heaven and the new earth, the new Jerusalem come down from heaven.Fine. That's at the end, not now. So that's the gist of what he, what he said. He has a detailed analysis of the stages of that journey, right? So, within your theme of hospitality the beginnings of the church becoming a social worker in the decaying Roman Empire. And beginning to develop institutions of hospitality, [00:23:00] places for all the flotsam and jetsam of the decaying empire.And then in a major way from the 11th through the 13th century, when the church institutes itself as a mini or proto state, right? With a new conception of law. Every element of our modernity prefigured in the medieval church and what it undertook, according to Ivan. This was all news to me when he first said it to me.So yeah, the story goes on into our own time when I think one of the primary paradoxes or confusions that we face is that most of the people one meets and deals with believe themselves to be living after Christianity and indeed to great opponents of Christianity. I mean, nothing is more important in Canada now than to denounce residential schools, let's say, right? Which were [00:24:00] the schools for indigenous children, boarding schools, which were mainly staffed by the church, right?So, the gothic figure of the nun, the sort of vulpine, sinister. That's the image of the church, right? So you have so many reasons to believe that you're after that. You've woken up, you're woke. And, and you see that now, right? So you don't In any way, see yourself as involved in this inversion of the gospel which has actually created your world and which is still, in so many ways, you.So, leftists today, if I'm using the term leftists very, very broadly, "progressives," people sometimes say, "woke," people say. These are all in a certain way super Christians or hyper Christians, but absolutely unaware of themselves as Christians and any day you can read an analysis [00:25:00] which traces everything back to the Enlightenment.Right? We need to re institute the Enlightenment. We've forgotten the Enlightenment. We have to get back to the, right? There's nothing before the Enlightenment. The Enlightenment is the over, that's an earlier overcoming of Christianity, right? So modernity is constantly overcoming Christianity. And constantly forgetting that it's Christian.That these are the ways in which the Incarnation is working itself out. And one daren't say that it's bound to work itself out that way. Ivan will go as far as to say it's seemingly the will of God that it should work itself out that way. Right? Wow. So, that the Gospel will be preached to all nations as predicted at the end of the Gospels." Go therefore and preach to all nations," but it will not be preached in its explicit form. It will enter, as it were, through the [00:26:00] back door. So that's a very big thought. But it's a saving thought in certain ways, because it does suggest a way of unwinding, or winding up, this string of finding out how this happened.What is the nature of the misunderstanding that is being played out here? So. Chris: Wow. Yeah, I mean, I, I feel like what you just said was a kind of nuclear bomb unto its own. I remember reading, for example, James Hillman in The Terrible Love of War, and at the very end he essentially listed all, not all, but many of the major characteristics of modern people and said if you act this way, you are Christian.If you act this way, you are Christian. Essentially revealing that so much of modernity has these Christian roots. And, you know, you said in terms of this message and [00:27:00] corruption of the message going in through the back door. And I think that's what happens in terms of at least when we see institutions in the modern time, schools, hospitals, roads essentially modern institutions and lifestyles making their way into non modern places.And I'm very fascinated in this in terms of hospitality. You said that the church, and I think you're quoting Illich there, but " the church is a social worker." But also how this hospitality shows up in the early church and maybe even how they feared about what could happen as a result to this question of the incarnation.In your book it was just fascinating to read this that you said, or that you wrote, that "in the early years of Christianity it was customary in a Christian household to have an extra mattress, a bit of candle, and some dry bread in case the Lord Jesus should knock at the door in the form of a stranger without a roof, a form of behavior that was utterly [00:28:00] foreign to the cultures of the Roman Empire."In which many Christians lived. And you write, "you took in your own, but not someone lost on the street." And then later "When the emperor Constantine recognized the church, Christian bishops gained the power to establish social corporations." And this is, I think, the idea of the social worker. The church is a social worker.And you write that the first corporations they started were Samaritan corporations, which designated certain categories of people as preferred neighbors. For example, the bishops created special houses financed by the community that were charged with taking care of people without a home. Such care was no longer the free choice of the householder, it was the task of an institution.The appearance of these xenodocheia? Literally, quote, 'houses for foreigners' signified the beginning of a change in the nature of the church." And then of course you write and you mentioned this but "a gratuitous and truly [00:29:00] free choice of assisting the stranger has become an ideology and an idealism." Right. And so, this seems to be how the corruption of the Samaritan story, the corruption of breaking that threshold, or at least being able to cross it, comes to produce this incredible 'ought,' as you just kind of elaborated for us.And then this notion of, that we can't see it anymore. That it becomes this thing in the past, as you said. In other words, history. Right? And so my next question is a question that comes to some degree from our late mutual friend Gustavo, Gustavo Esteva. And I'd just like to preface it by a small sentence from An Intellectual Journey where he wrote that, "I think that limit, in Illich, is always linked to nemesis, or to what Jung calls [00:30:00] enantiodromia, his Greek word for the way in which any tendency, when pushed too far, can turn into its opposite. And so, a long time ago, Illich once asked Gustavo if he could identify a word that could describe the era after development, or perhaps after development's death.And Gustavo said, "hospitality." And so, much later, in a private conversation with Gustavo, in the context of tourism and gentrification, the kind that was beginning to sweep across Oaxaca at the time, some years ago, he told me that he considered "the sale of one's people's radical or local hospitality as a kind of invitation to hostility in the place and within the ethnos that one lives in."Another way of saying it might be that the subversion and absence of hospitality in a place breeds or can breed hostility.[00:31:00] I'm curious what you make of his comment in the light of limits, enantiodromia and the corruption that Illich talks about.David: Well I'd like to say one thing which is the thought I was having while you, while you were speaking because at the very beginning I mentioned a reservation a discomfort with words like perversion and corruption. And the thought is that it's easy to understand Illich as doing critique, right? And it's easy then to moralize that critique, right? And I think it's important that he's showing something that happens, right? And that I daren't say bound to happen, but is likely to happen because of who and what we are, that we will institutionalize, that we will make rules, that we will, right?So, I think it's important to rescue Ivan from being read [00:32:00] moralistically, or that you're reading a scold here, right? Hmm. Right. I mean, and many social critics are or are read as scolds, right? And contemporary people are so used to being scolded that they, and scold themselves very regularly. So, I just wanted to say that to rescue Ivan from a certain kind of reading. You're quoting Gustavo on the way in which the opening up of a culture touristically can lead to hostility, right? Right. And I think also commenting on the roots of the words are the same, right? "hostile," "hospice." They're drawing on the same, right?That's right. It's how one treats the enemy, I think. Hmm. It's the hinge. Hmm. In all those words. What's the difference between hospitality and hostility?[00:33:00] So, I think that thought is profound and profoundly fruitful. So, I think Gustavo had many resources in expressing it.I couldn't possibly express it any better. And I never answered you at the beginning how I met Gustavo, but on that occasion in 1988 when I was interviewing Illich, they were all gathered, a bunch of friends to write what was called The Development Dictionary, a series of essays trying to write an epilogue to the era of development.So, Gustavo, as you know, was a charming man who spoke a peculiarly beautiful English in which he was fluent, but somehow, you could hear the cadence of Spanish through it without it even being strongly accented. So I rejoiced always in interviewing Gustavo, which I did several times because he was such a pleasure to listen to.But anyway, I've digressed. Maybe I'm ducking your question. Do you want to re ask it or? Chris: Sure. [00:34:00] Yeah, I suppose. You know although there were a number of essays that Gustavo wrote about hospitality that I don't believe have been published they focused quite a bit on this notion of individual people, but especially communities putting limits on their hospitality.And of course, much of this hospitality today comes in the form of, or at least in the context of tourism, of international visitors. And that's kind of the infrastructure that's placed around it. And yet he was arguing essentially for limits on hospitality. And I think what he was seeing, although it hadn't quite come to fruition yet in Oaxaca, was that the commodification, the commercialization of one's local indigenous hospitality, once it's sold, or once it's only existing for the value or money of the foreigner, in a kind of customer service worldview, that it invites this deep [00:35:00] hostility. And so do these limits show up as well in Illich's work in terms of the stranger?Right? Because so much of the Christian tradition is based in a universal fraternity, universal brotherhood. David: I said that Ivan made sense to me in my youth, as a 22 year old man. So I've lived under his influence. I took him as a master, let's say and as a young person. And I would say that probably it's true that I've never gone anywhere that I haven't been invited to go.So I, I could experience that, that I was called to be there. And he was quite the jet setter, so I was often called by him to come to Mexico or to go to Germany or whatever it was. But we live in a world that is so far away from the world that might have been, let's say, the world that [00:36:00] might be.So John Milbank, a British theologian who's Inspiring to me and a friend and somebody who I found surprisingly parallel to Illich in a lot of ways after Ivan died and died I think feeling that he was pretty much alone in some of his understandings. But John Milbank speaks of the, of recovering the future that we've lost, which is obviously have to be based on some sort of historical reconstruction. You have to find the place to go back to, where the wrong turning was, in a certain way. But meanwhile, we live in this world, right? Where even where you are, many people are dependent on tourism. Right? And to that extent they live from it and couldn't instantly do without. To do without it would be, would be catastrophic. Right? So [00:37:00] it's it's not easy to live in both worlds. Right? To live with the understanding that this is, as Gustavo says, it's bound to be a source of hostility, right?Because we can't sell what is ours as an experience for others without changing its character, right, without commodifying it. It's impossible to do. So it must be true and yet, at a certain moment, people feel that it has to be done, right? And so you have to live in in both realities.And in a certain way, the skill of living in both realities is what's there at the beginning, right? That, if you take the formula of the incarnation as a nuclear explosion, well you're still going to have religion, right? So, that's inevitable. The [00:38:00] world has changed and it hasn't changed at the same time.And that's true at every moment. And so you learn to walk, right? You learn to distinguish the gospel from its surroundings. And a story about Ivan that made a big impression on me was that when he was sent to Puerto Rico when he was still active as a priest in 1956 and became vice rector of the Catholic University at Ponce and a member of the school board.A position that he regarded as entirely political. So he said, "I will not in any way operate as a priest while I'm performing a political function because I don't want these two things to get mixed up." And he made a little exception and he bought a little shack in a remote fishing village.Just for the happiness of it, he would go there and say mass for the fishermen who didn't know anything about this other world. So, but that was[00:39:00] a radical conviction and put him at odds with many of the tendencies of his time, as for example, what came to be called liberation theology, right?That there could be a politicized theology. His view was different. His view was that the church as "She," as he said, rather than "it," had to be always distinguished, right? So it was the capacity to distinguish that was so crucial for him. And I would think even in situations where tourism exists and has the effect Gustavo supposed, the beginning of resistance to that and the beginning of a way out of it, is always to distinguish, right?To know the difference, which is a slim read, but, but faith is always a slim read and Ivan's first book, his first collection of published essays was [00:40:00] called Celebration of Awareness which is a way of saying that, what I call know the difference. Chris: So I'm going to, if I can offer you this, this next question, which comes from James, a friend in Guelph, Canada. And James is curious about the missionary mandate of Christianity emphasizing a fellowship in Christ over ethnicity and whether or not this can be reconciled with Illich's perhaps emphatic defense of local or vernacular culture.David: Well, yeah. He illustrates it. I mean, he was a worldwide guy. He was very far from his roots, which were arguably caught. He didn't deracinate himself. Hmm. He was with his mother and brothers exiled from Split in Dalmatia as a boy in the crazy atmosphere of the Thirties.But he was a tumbleweed after [00:41:00] that. Mm-Hmm. . And so, so I think we all live in that world now and this is confuses people about him. So, a historian called Todd Hart wrote a book still really the only book published in English on the history of CIDOC and Cuernavaca, in which he says Illich is anti-missionary. And he rebukes him for that and I would say that Ivan, on his assumptions cannot possibly be anti missionary. He says clearly in his early work that a Christian is a missionary or is not a Christian at all, in the sense that if one has heard the good news, one is going to share it, or one hasn't heard it. Now, what kind of sharing is that? It isn't necessarily, "you have to join my religion," "you have to subscribe to the following ten..." it isn't necessarily a catechism, it may be [00:42:00] an action. It may be a it may be an act of friendship. It may be an act of renunciation. It can be any number of things, but it has to be an outgoing expression of what one has been given, and I think he was, in that sense, always a missionary, and in many places, seeded communities that are seeds of the new church.Right? He spent well, from the time he arrived in the United States in 51, 52, till the time that he withdrew from church service in 68, he was constantly preaching and talking about a new church. And a new church, for him, involved a new relation between innovation and tradition. New, but not new.Since, when he looked back, he saw the gospel was constantly undergoing translation into new milieu, into new places, into new languages, into new forms.[00:43:00] But he encountered it in the United States as pretty much in one of its more hardened or congealed phases, right? And it was the export of that particular brand of cultural and imperialistic, because American, and America happened to be the hegemon of the moment. That's what he opposed.The translation of that into Latin America and people like to write each other into consistent positions, right? So, he must then be anti missionary across the board, right? But so I think you can be local and universal. I mean, one doesn't even want to recall that slogan of, you know, "act locally, think globally," because it got pretty hackneyed, right?And it was abused. But, it's true in a certain way that that's the only way one can be a Christian. The neighbor, you said it, I wrote it, Ivan said it, " the neighbor [00:44:00] can be anyone." Right?But here I am here now, right? So both have to apply. Both have to be true. It's again a complementary relation. And it's a banal thought in a certain way, but it seems to be the thought that I think most often, right, is that what creates a great deal of the trouble in the world is inability to think in a complementary fashion.To think within, to take contradiction as constituting the world. The world is constituted of contradiction and couldn't be constituted in any other way as far as we know. Right? You can't walk without two legs. You can't manipulate without two arms, two hands. We know the structure of our brains. Are also bilateral and everything about our language is constructed on opposition.Everything is oppositional and yet [00:45:00] when we enter the world of politics, it seems we're going to have it all one way. The church is going to be really Christian, and it's going to make everybody really Christian, or communist, what have you, right? The contradiction is set aside. Philosophy defines truth as the absence of contradiction.Hmm. Basically. Hmm. So, be in both worlds. Know the difference. Walk on two feet. That's Ivan. Chris: I love that. And I'm, I'm curious about you know, one of the themes of the podcast is exile. And of course that can mean a lot of things. In the introduction to An Intellectual Journey, you wrote that that Illich, "once he had left Split in the 30s, that he began an experience of exile that would characterize his entire life."You wrote that he had lost "not just the home, but the very possibility [00:46:00] of home." And so it's a theme that characterizes as well the podcast and a lot of these conversations around travel, migration, tourism, what does it mean to be at home and so, this, This notion of exile also shows up quite a bit in the Christian faith.And maybe this is me trying to escape the complementarity of the reality of things. But I tend to see exile as inherently I'll say damaging or consequential in a kind of negative light. And so I've been wondering about this, this exilic condition, right? It's like in the Abrahamic faith, as you write "Judaism, Christianity, and Islam all begin in exile.And eventually this pattern culminates. Jesus is executed outside the gates of the city, nailed to a cross that excludes him even from his native earth." And you write that "exile is in many ways the [00:47:00] Christian condition." And so, you know, I've read that in the past, Christian monks often consider themselves to be homeless, removed from the sort of daily life of the local community in the monasteries and abbeys and yet still of a universal brotherhood. And so I'd like to ask you if you feel this exilic condition, which seems to be also a hallmark of modernity, this kind of constant uprooting this kind of as I would call it, cultural and spiritual homelessness of our time, if you think that is part of the corruption that Illich based his work around?David: Well, one can barely imagine the world in which Abram, who became Abraham said to God, no, I'm staying in Ur. Not going, I'm not going. Right? I mean, if you go back to Genesis and you re read that passage, when God shows [00:48:00] Abraham the land that he will inherit, it says already there, "there were people at that time living in the land," right?Inconvenient people, as it turns out. Palestinians. So, there's a profound contradiction here, I think. And the only way I think you can escape it is to understand the Gospel the way Ivan understood it, which is as something super added to existing local cultures, right? A leaven, right?Hmm. Not everything about a local culture or a local tradition is necessarily good. Mm hmm. And so it can be changed, right? And I would say that Illich insists that Christians are and must be missionaries. They've received something that they it's inherent in what they've [00:49:00] received that they pass it on.So the world will change, right? But Ivan says, this is in Rivers North of the Future, that it's his conviction that the Gospel could have been preached without destroying local proportions, the sense of proportion, and he put a great weight on the idea of proportionality as not just, a pleasing building or a pleasing face, but the very essence of, of how a culture holds together, right, that things are proportioned within it to one another that the gospel could have been preached without the destruction of proportions, but evidently it wasn't, because the Christians felt they had the truth and they were going to share it. They were going to indeed impose it for the good of the other.So, I think a sense of exile and a sense of home are as [00:50:00] necessary to one another as in Ivan's vision of a new church, innovation, and tradition, or almost any other constitutive couplet you can think of, right? You can't expunge exile from the tradition. But you also can't allow it to overcome the possibility of home.I mean, Ivan spoke of his own fate as a peculiar fate, right? He really anticipated the destruction of the Western culture or civilization. I mean, in the sense that now this is a lament on the political right, mainly, right? The destruction of Western civilization is something one constantly hears about.But, he, in a way, in the chaos and catastrophe of the 30s, already felt the death of old Europe. And even as a boy, I think, semi consciously at least, took the roots inside himself, took them with him [00:51:00] and for many people like me, he opened that tradition. He opened it to me. He allowed me to re inhabit it in a certain way, right?So to find intimations of home because he wasn't the only one who lost his home. Even as a man of 78, the world in which I grew up here is gone, forgotten, and to some extent scorned by younger people who are just not interested in it. And so it's through Ivan that I, in a way, recovered the tradition, right?And if the tradition is related to the sense of home, of belonging to something for good or ill, then that has to be carried into the future as best we can, right? I think Ivan was searching for a new church. He didn't think. He had found it. He didn't think he knew what it was.I don't think he [00:52:00] described certain attributes of it. Right. But above all, he wanted to show that the church had taken many forms in the past. Right. And it's worldly existence did not have to be conceived on the model of a monarchy or a parish, right, another form that he described in some early essays, right.We have to find the new form, right? It may be radically non theological if I can put it like that. It may not necessarily involve the buildings that we call churches but he believed deeply in the celebrating community. As the center, the root the essence of social existence, right? The creation of home in the absence of home, or the constant recreation of home, right? Since I mean, we will likely never again live in pure [00:53:00] communities, right? Yeah. I don't know if pure is a dangerous word, but you know what I mean?Consistent, right? Closed. We're all of one kind, right? Right. I mean, this is now a reactionary position, right? Hmm. You're a German and you think, well, Germany should be for the Germans. I mean, it can't be for the Germans, seemingly. We can't put the world back together again, right?We can't go back and that's a huge misreading of Illich, right? That he's a man who wants to go back, right? No. He was radically a man who wanted to rediscover the future. And rescue it. Also a man who once said to hell with the future because he wanted to denounce the future that's a computer model, right? All futures that are projections from the present, he wanted to denounce in order to rediscover the future. But it has to be ahead of us. It's not. And it has to recover the deposit that is behind us. So [00:54:00] both, the whole relation between past and future and indeed the whole understanding of time is out of whack.I think modern consciousness is so entirely spatialized that the dimension of time is nearly absent from it, right? The dimension of time as duration as the integument by which past, present and future are connected. I don't mean that people can't look at their watch and say, you know, "I gotta go now, I've got a twelve o'clock." you know.So, I don't know if that's an answer to James.Chris: I don't know, but it's food for thought and certainly a feast, if I may say so. David, I have two final questions for you, if that's all right, if you have time. Okay, wonderful. So, speaking of this notion of home and and exile and the complementarity of the two and you know you wrote and [00:55:00] spoke to this notion of Illich wanting to rediscover the future and he says that "we've opened a horizon on which new paradigms for thought can appear," which I think speaks to what you were saying and At some point Illich compares the opening of horizons to leaving home on a pilgrimage, as you write in your book."And not the pilgrimage of the West, which leads over a traveled road to a famed sanctuary, but rather the pilgrimage of the Christian East, which does not know where the road might lead and the journey end." And so my question is, What do you make of that distinction between these types of pilgrimages and what kind of pilgrimage do you imagine might be needed in our time?David: Well, I, I mean, I think Ivan honored the old style of pilgrimage whether it was to [00:56:00] Canterbury or Santiago or wherever it was to. But I think ivan's way of expressing the messianic was in the word surprise, right? One of the things that I think he did and which was imposed on him by his situation and by his times was to learn to speak to people in a way that did not draw on any theological resource, so he spoke of his love of surprises, right? Well, a surprise by definition is what you don't suspect, what you don't expect. Or it couldn't be a surprise.So, the The cathedral in Santiago de Compostela is very beautiful, I think. I've only ever seen pictures of it, but you must expect to see it at the end of your road. You must hope to see it at the end of your road. Well the surprise is going to be something else. Something that isn't known.[00:57:00] And it was one of his Great gifts to me that within the structure of habit and local existence, since I'm pretty rooted where I am. And my great grandfather was born within walking distance of where I am right now. He helped me to look for surprises and to accept them also, right?That you're going to show up or someone else is going to show up, right? But there's going to be someone coming and you want to look out for the one who's coming and not, but not be at all sure that you know who or what it is or which direction it's coming from. So, that was a way of life in a certain way that I think he helped others within their limitations, within their abilities, within their local situations, to see the world that way, right. That was part of what he did. Chris: Yeah, it's really beautiful and I can [00:58:00] see how in our time, in a time of increasing division and despondency and neglect, fear even, resentment of the other, that how that kind of surprise and the lack of expectation, the undermining, the subversion of expectation can find a place into perhaps the mission of our times.And so my final question comes back to friendship. and interculturality. And I have one final quote here from An Intellectual Journey, which I highly recommend everyone pick up, because it's just fascinating and blows open so many doors. David: We need to sell a few more books, because I want that book in paperback. Because I want it to be able to live on in a cheaper edition. So, yes. Chris: Of course. Thank you. Yeah. Please, please pick it up. It's worth every penny. So in An Intellectual Journey, it is written[00:59:00] by Illich that "when I submit my heart, my mind, my body, I come to be below the other. When I listen unconditionally, respectfully, courageously, with the readiness to take in the other as a radical surprise, I do something else. I bow, bend over toward the total otherness of someone. But I renounce searching for bridges between the other and me, recognizing that a gulf separates us.Leaning into this chasm makes me aware of the depth of my loneliness, and able to bear it in the light of the substantial likeness between the Other and myself. All that reaches me is the Other in His Word, which I accept on faith."And so, David at another point in the biography you quote Illich describing faith as foolish. Now assuming that faith elicits a degree of danger or [01:00:00] betrayal or that it could elicit that through a kind of total trust, is that nonetheless necessary to accept the stranger or other as they are? Or at least meet the stranger or other as they are? David: I would think so, yeah. I mean the passage you've quoted, I think to understand it, it's one of the most profound of his sayings to me and one I constantly revert to, but to accept the other in his word, or on his word, or her word, is, I think you need to know that he takes the image of the word as the name of the Lord, very, very seriously, and its primary way of referring to the Christ, is "as the Word."Sometimes explicitly, sometimes not explicitly, you have to interpret. So, when he says that he renounces looking for bridges, I think he's mainly referring [01:01:00] to ideological intermediations, right, ways in which I, in understanding you exceed my capacity. I try to change my name for you, or my category for you, changes you, right?It doesn't allow your word. And, I mean, he wasn't a man who suffered fools gladly. He had a high regard for himself and used his time in a fairly disciplined way, right? He wasn't waiting around for others in their world. So by word, what does he mean?What is the other's word? Right? It's something more fundamental than the chatter of a person. So, I think what that means is that we can be linked to one another by Christ. So that's [01:02:00] the third, right? That yes, we're alone. Right? We haven't the capacity to reach each other, except via Christ.And that's made explicit for him in the opening of Aylred of Riveau's Treatise on Friendship, which was peculiarly important to him. Aylred was an abbot at a Cistercian monastery in present day Yorkshire, which is a ruin now. But he wrote a treatise on friendship in the 12th century and he begins by addressing his brother monk, Ivo, and says, you know, " here we are, you and I, and I hope a third Christ."So, Christ is always the third, right? So, in that image of the gulf, the distance, experiencing myself and my loneliness and yet renouncing any bridge, there is still a word, the word, [01:03:00] capital W, in which a word, your word, my word, participates, or might participate. So, we are building, according to him, the body of Christ but we have to renounce our designs on one another, let's say, in order to do that. So I mean, that's a very radical saying, the, the other in his word and in another place in The Rivers North of the Future, he says how hard that is after a century of Marxism or Freudianism, he mentions. But, either way he's speaking about my pretension to know you better than you know yourself, which almost any agency in our world that identifies needs, implicitly does. I know what's best for you. So Yeah, his waiting, his ability to wait for the other one is, is absolutely [01:04:00] foundational and it's how a new world comes into existence. And it comes into existence at every moment, not at some unimaginable future when we all wait at the same time, right? My friend used to say that peace would come when everybody got a good night's sleep on the same night. It's not very likely, is it? Right, right, right. So, anyway, there we are. Chris: Wow. Well, I'm definitely looking forward to listening to this interview again, because I feel like just like An Intellectual Journey, just like your most recent book my mind has been, perhaps exploded, another nuclear bomb dropped.David: Chris, nice to meet you. Chris: Yeah, I'll make sure that that book and, of course, links to yours are available on the end of the website. David: Alright, thank you. Chris: Yeah, deep bow, David. Thank you for your time today. David: All the best. And thank you for those questions. Yeah. That was that was very interesting. You know, I spent my life as an interviewer. A good part of my [01:05:00] life. And interviewing is very hard work. It's much harder than talking. Listening is harder than talking. And rarer. So, it's quite a pleasure for me, late in life, to be able to just let her rip, and let somebody else worry about is this going in the right direction? So, thank you. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe
What is ESA money going towards? David Well with the Grand Canyon Institute explains the groups' views on the scholarship money and how it should be regulated.
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Reed Smith and its lawyers have used machine-assisted case preparation tools for many years (and it launched the Gravity Stack subsidiary) to apply legal technology that cuts costs, saves labor and extracts serious questions faster for senior lawyers to review. Partners David Cohen, Anthony Diana and Therese Craparo discuss how generative AI is creating powerful new options for legal teams using machine-assisted legal processes in case preparation and e-discovery. They discuss how the field of e-discovery, with the help of emerging AI systems, is becoming more widely accepted as a cost and quality improvement. ----more---- Transcript: Intro: Hello, and welcome to Tech Law Talks, a podcast brought to you by Reed Smith's Emerging Technologies Group. In each episode of this podcast, we will discuss cutting-edge issues on technology, data, and the law. We will provide practical observations on a wide variety of technology and data topics to give you quick and actionable tips to address the issues you are dealing with every day. David: Hello, everyone, and welcome to Tech Law Talks and our new series on AI. Over the the coming months, we'll explore the key challenges and opportunities within the rapidly evolving AI landscape. Today, we're going to focus on AI in eDiscovery. My name is David Cohen, and I'm pleased to be joined today by my colleagues, Anthony, Diana, and Therese Craparo. I head up Reed Smith's Records & eDiscovery practice group, big practice group, 70 plus lawyers strong, and we're very excited to be moving into AI territory. And we've been using some AI tools and we're testing new ones. Therese, I'm going to turn it over to you to introduce yourself. Therese: Sure. Thanks, Dave. Hi, my name is Therese Craparo. I am a partner in our Emerging Technologies Group here at Reed Smith. My practice focuses on eDiscovery, digital innovation, and data risk management. And And like all of us, seeing a significant uptick in the interest in using AI across industries and particularly in the legal industry. Anthony? Anthony: Hello, this is Anthony Diana. I am a partner in the New York office, also part of the Emerging Technologies Group. And similarly, my practice focuses on digital transformation projects for large clients, particularly financial institutions. and also been dealing with e-discovery issues for more than 20 years, basically, as long as e-discovery has existed. I think all of us have on this call. So looking forward to talking about AI. David: Thanks, Anthony. And my first question is, the field of e-discovery was one of the first to make practical use of AI in the form of predictive coding and document analytics. Predictive coding has now been around for more than two decades. So, Teresa and Anthony, how's that been working out? Therese: You know, I think it's a dual answer, right? It's been working out incredibly well, and yet it's not used as much as it should be. I think that at this stage, the use of predictive coding and analytics in e-discovery is pretty standard, right? Right. As Dave, as you said, two decades ago, it was very controversial and there was a lot of debate and dispute about the appropriate use and the right controls and the like going on in the industry and a lot of discovery fights around that. But I think at this stage, we've really gotten to a point where this technology is, you know, well understood, used incredibly effectively to appropriately manage and streamline e-discovery and to improve on discovery processes and the like. I think it's far less controversial in terms of its use. And frankly, the e-discovery industry has done a really great job at promoting it and finding ways to use this advanced technology in litigation. I think that one of the challenges is that still is that while the lawyers who are using it are using it incredibly effectively, it's still not enough people that have adopted it. And I think there are still lawyers out there that haven't been using predictive coding or document analytics in ways that they could be using it to improve their own processes. I don't know, Anthony, what are your thoughts on that? Anthony: Yeah, I mean, I think to reiterate this, I mean, the predictive coding that everyone's used to is it's machine learning, right? So it's AI, but it's machine learning. And I think it was particularly helpful just in terms of workflow and what we're trying to accomplish in eDiscovery when we're trying to produce relevant information. Information, machine learning made a lot of sense. And I think I was a big proponent of it. I think a lot of people are because it gave a lot of control. The big issue was it allowed, I would call, senior attorneys to have more control over what is relevant. So the whole idea is you would train the model with looking at relevant documents, and then you would have senior attorneys basically get involved and say, okay, what are the edge cases? It was the basic stuff was easy. You had the edge cases, you could have senior attorneys look at it, make that call, and then basically you would use the technology to use what I would say, whatever you're thinking in your brain, the senior attorney, that is now going to be used to help determine relevance. And you're not relying as much on the contract attorneys and the workflow. So it made a whole host of sense, frankly, from a risk perspective. I think one of the issues that we saw early on is everyone was saying it was going to save lots of money. Didn't really save a lot of money, right? Partly because the volumes went up too much, partly because, you know, the process, but from a risk perspective, I thought it was really good because I think you were getting better quality, which I think was one of the things that's most important, right? And I think this is going to be important as we start talking about AI generally is, and in terms of processes, it was a quality play, right? It was, this is better. It's a better process. It's better managing the risks than just having manual review. So that was the key to it, I think. As we talked about, there was lots of controversy about it. The controversy often stemmed from, I'll call it the validation. We had lots of attorneys saying, I want to see the validation set. They wanted to see how the model was trained. You have to give us all the documents and train. And I think generally that fell by the wayside. That really didn't really happen. One of the keys though, and I think this is also true for all AI, is the validation testing, which Teresa touched upon, that became critical. I think people realized that one of the things you had to do as you're training the model and you started seeing things, you would always do some sampling and do validation testing to see if the model was working correctly. And that validation testing was the defensibility that courts, I think, latched on on. And I think when we start talking about Gen AI, that's going to be one of the issues. People are comfortable with machine learning, understand the risks, understand, you know, one of the other big risks that we all saw as part of it was the data set would change, right? You have 10 custodians, you train the model, then you got another 10 custodians. Sometimes it didn't matter. Sometimes it really made a big difference and you had to retrain the model. So I think we're all comfortable with that. I think as Therese said, it's still not as prevalent as you would have imagined, given how effective it is, but it's partly because it's a lot of work, right? And often it's a lot of work by, I'll say, senior attorneys instead of developing it, when it's still a lot easier to say, let's just use search terms, negotiate it, and then throw a bunch of contract attorneys on it, and then do what you see. It works, but I think that's still one of the impediments of it actually being used as much as we thought. Therese: And I think to pick up on what Anthony is saying, what I think is really important is we do have 20 years of experience using AI technology in the e-discovery industry. So much has been learned about how you use those models, the appropriate controls, how you get quality validation and the like. And I think that there's so much to use from that in the increasing use of AI in e-discovery, in the legal field in general, even across organizations. There's a lot of value to be had there of leveraging the lessons learned and applying them to the use of the emerging types of AI that we're seeing that I think we need to keep in mind and the legal field needs to keep in mind that we know how to use this and we know how to understand it. We know how to make it defensible. And I think as we move forward, those lessons are going to serve us really well in facilitating, you know, more advanced use of AI. So in thinking about how the changes may happen going forward, right, as we're looking forward, how do we think that generative AI based on large language models are going to change e-discovery in the future? Anthony: I think there, in terms of how generative AI is going to work, I have my doubts, frankly, about how effective it's going to be. We all know that these large language models are basically based on billions, if not trillions of data points or whatever, but it's generic. It's all public information. That's how the model is based. One of the things that I want to see as people start using generative AI and seeing how it would work, is how is that going to play when we're talking about very, it's confidential information, like almost all of our clients that are dealing with e-discovery, all this stuff's confidential. It's not stuff that's public. So I understand the concept if you have a large language model that is billions and billions of data points or whatever is going to be exact, but it's a probability calculation, right? It's basically guessing what the next answer is going going to be, the next word is going to be based on this general population, not necessarily on some very esoteric area that you may be focused on for a particular case, right? So I think it remains to be seen of whether it's going to work. I think the other area where I have concerns, which I want to see, is the validation point. Like, how do we show it's defensible? If you're going in and telling a court, oh, I use Gen AI and ran the tool, here's the relevant stuff based on prompts, what does that mean? How are we going to validate that? I think that's going to be one of the keys is how do we come up with a validation methodology that will be defensible that people will be comfortable with? Again, I think intuitively machine learning was I'm training the model on what a person, a human being deemed is responsive. So that. Frankly, it's easier to argue to a court. It's easier to explain to a regulator. When you say, I came up with prompts based on the allegations of the complaint or whatever, it's a little bit more esoteric, and I think it's a little bit harder for someone to get their heads around. How do you know you're getting relevant information? So, I think there's some challenges there. I don't know how that's going to play out. I don't know, Dave, because I know you're testing a lot of these tools, what you're seeing in terms of how we think this is actually going to work in terms of using generative AI in these large language models and moving away from the machine learning. David: Yeah, I agree with you on the to be determined part, but I think I come in a little bit more optimistic and part of it might be, you know, actually starting to use some of these tools. I think that predictive coding has really paved the way for these AI tools because what held up predictive coding to some extent was people weren't sure that courts were going to accept it. Until the first opinions came out, Judge Peck's decision and the Silvermore and subsequent case decisions, there was concern about that. But once that precedent came out, and it's important to emphasize that the precedent wasn't just approving predictive coding, it was approving technology-assisted review. And this generative AI is really just another form of technology-assisted review. And what it basically said is you have to show that it's valid. You have to do this validation testing. But the same validation testing that we've been doing to support predictive coding will work on the large language model generative AI-assisted coding. It's essentially you do the review and then you take a sample and you say, well, was this review done well? Did we hit a high accuracy level? The early testing we're doing is showing that we are hitting even better accuracy levels than with predictive coding alone. And I should say that it's even improved in the six months or so that we've been testing. The companies that are building the software are continuing to improve it. So I am optimistic in that sense. But many of these products are still in development. The pricing is still either high or to be announced in some cases. And it's not clear yet that it will be cost effective beyond current models of using human review and predictive coding and search terms. And they're not all mutually exclusive. I mean, I can see ultimately getting to a hybrid model where we still may start with search terms to cut down on volume and then may use some predictive coding and some human review and some generative AI. Ultimately, I think we'll get to the point where the price point comes down and it will make review better and cheaper. Right. But I also didn't want to mention, I see a couple other areas of application in eDiscovery as well. The generative AI is really good at summarizing single large documents or even groups of documents. It's also extremely helpful in more quickly identifying key documents. You can ask questions about a whole big document population and get answers. So I'm really excited to see this evolution. And I don't know when we're going to get there and what the price effectiveness point is going to be. But I would say that in the next year or two, we're going to start seeing it creep in and use more and more effectively, more and more cost effectively as we go forward. Anthony: Yeah, that's fascinating. Yeah, I can see that even in terms of document review. If a human was looking at it, if AI is summarizing the document, you can make your relevance determination based on the summary. Again, we can all talk about whether it's appropriate or not, but that would probably help quite a bit. And I do think that's fascinating. I know another thing I hear is the privilege log stuff. And again, I think using AI, generative AI to draft privilege logs in concept sounds great because obviously it's a big costs factor and the like. But I think we've talked about this, Dave and Therese, like we already have, like there's already tools available, meaning you can negotiate metadata logs and some of these other things that cut the cost down. So I think it remains to be seen. Again, I think this is going to be like another arrow in your quiver, a tool to use, and you just have to figure out when you want to use it. Therese: Yeah. And I think one of the things I think in not limiting ourselves to only thinking about, right, document review, where there's a lot of possibility with generative AI, right, witness kits, putting together witness outlines for depositions and the like, right? Not that we would ever just rely on that, but there's a huge opportunity there, I think, as a starting point, right? Just like if you're using it appropriately. And of course, today's point, the price point is reasonable, you can do initial research. There's a lot of things that I think that it can do in the discovery realm, even outside of just document review, that I think we should keep our minds open to because it's a way of giving us a quicker, getting to the base more quickly and more efficiently and frankly, more cost-effectively. And then you can take a look at that and the person and can augment that or build upon it to make sure it's accurate and it's appropriate for that particular litigation or that particular witness and the like. But I do think that Dave really hit the nail on the head. I don't think this is going to be, we're only going to be moving to generative AI and we're going to abandon other types of AI. There's reasons why there's different types of AI is because they do different things. And I think what we are most likely to see is a hybrid. Right. Right. Some tools being used for something, some tools being used for others. And I think eventually, as Dave already highlighted, the combination of the use of different types of AI in the e-discovery process and within the same tool to get to a better place. I think that's where we're most likely heading. And as Dave said, that's where a lot of the vendors are actually focusing is on adding into their workflow this additional AI to improve the process. David: Yeah. And it's interesting that some of the early versions are not really replacing the human review. They are predicting where the human review is going to come out. So when the reviewer looks at the document, it already tells you what the software says. Is it relevant or not relevant? And it does go one step beyond. It's hard because it not only tells you the prediction of whether it's relevant or not, but it also gives you a reason. So it can accelerate the review and that can create great cost savings. But it's not just document review. Already, there's e-discovery tools out there that allow you to ask questions, query databases, but also build chronologies. And again, with that benefit, then referencing you to certain documents and in some cases having hyperlinks. So it'll tell you facts or it'll tell you answers to a question and it'll link back to the documents that support those answers. So I think there's great potential as this continues to grow and improve. Anthony: Yeah. And I would say also, again, let's think about the whole EDRM model, right? Preservation. I mean, we'll see what enterprises do, but on the enterprise side, using AI bots and stuff like that for whether it's preservation, collection and stuff, it'll be very interesting to see if these tools can be used there to sort of automate some of the standard workflows before we get to the review and the like, but even on the enterprise side. The other thing that I think it will be interesting, and I think this is one of the areas where we still have not seen broad adoption, is on the privilege side. We know and we've done some analysis for clients where privilege or looking for highly sensitive documents and the like is still something that most lawyers aren't comfortable using. Using AI, don't know why I've done it and it worked effectively, but that is still an area where lawyers have been hesitant. And it'll be interesting to see if gender of AI and the tools there can help with privilege, right? Whether it's the privilege logs, whether it's identifying privilege documents. I think to your point, Dave, having the ability to say it's privileged and here's the reasons would be really helpful in doing privilege review. So it'll be interesting to see how AI works in that sphere as well, because it is an area where we haven't seen wide adoption of using predictive coding or TAR in terms of identifying privilege. And that's still a major cost for a lot of clients. All right, so then I guess where this all leads to is, and this is more future-oriented. Do we think we're at this stage now that we have generative AI that there's a paradigm shift, right? Do we think there's going to be a point where even, you know, we didn't see that paradigm shift bluntly with predictive coding, right? Predictive coding came out, everyone said, oh my God, discovery is going to change forever. We don't need contract attorneys anymore. You know, associates aren't going to have anything to do because you're just going to train the model, it goes out. And that's clearly hasn't happened. Now people are making similar predictions with the use of generative AI. We're now not going to need to do docker view, whatever. And I think there is concern, and this is concern just generally in the industry, is this an area, since we're already using AI, where AI can take over basically the discovery function, where we're not necessarily using lots of lawyers and we're relying almost exclusively on AI, whether it's a combination of machine learning or if it's just generative AI. And they're doing lots of work without any input or very little input from lawyers. So I'll start with Dave there. What are your thoughts in terms of where do we see in the next three to five years? Are we going to see some tipping point? David: Yeah, it's interesting. Historically, there's no question that predictive coding did allow lawyers to get through big document populations faster and for predictions that it was going to replace all human review. And it really hasn't. But part of that has been the proliferation of electronic data. There's just more data than ever before, more sources of data. It's not just email now. It's Teams and texts and Slack and all these different collaboration tools. So that increase in volume is partially made up for the increase in efficiency, and we haven't seen any loss of attorneys. I do think that over the longer run that there is more potential for the Gen AI to replace replace attorneys who do e-discovery work and, frankly, to replace lawyers and other professionals and all other kinds of workers eventually. I mean, it's just going to get better and better. A lot of money is being invested in. I'm going to go out on a limb and say that I think that we may be looking at a whole paradigm shift in how disputes are resolved in the future. Right now, there's so much duplication of effort. If you're in litigation against an opposing party, You have your documents set that your people are analyzing at some expense. The other side has their documents set that their people are analyzing at some expense. You're all looking for those key documents, the needles in the haystack. There's a lot of duplicative efforts going on. Picture a world where you could just take all of the potentially relevant documents. Throw them into the pot of generative AI, and then have the generative AI predetermine what's possibly privileged and lawyers can confirm those decisions. But then let everyone, both sides of court, query that pot of documents to ask, what are the key questions? What are the key factual issues in the case? Please tell us the answers and the documents that go to those answers and cut through a lot of the document review and document production that's going on now that frankly uses up most of the cost of litigation. I think we're going to be able to resolve disputes more efficiently, less expensively, and a lot faster. And I don't know whether that's five years into the future or 10 years into the future, but I'll be very surprised if our dispute resolution procedure isn't greatly affected by these new capabilities. Pretty soon, I think, when I say pretty soon, I don't know if it's five years or 10 years, but I think judges are going to have their AI assistance helping them resolve cases and maybe even drafting first drafts of court opinions as well. And I don't think it's all that far off into the future that we're going to start to see them. Therese: I think I'm a little bit more skeptical than Dave on some of this, which is probably not surprising to either Dave or to to Anthony on this one. Look, I think, I don't see AI as a general rule replacing lawyers. I think it will change what lawyers do. And it may replace some lawyers who don't keep pace with technology. Look, it's very simple. It's going to make us better, faster, more efficient, right? So that's a good thing. It's a good thing for our clients. It's a good thing for us. But the idea, I think, to me, that AI will replace the judgment and the decision-making or the results of AI is going to replace lawyers and I think is maybe way out there in the future when the robots take over the world. But I do think it may mean less lawyers or lawyers do different things. Lawyers that are well-versed in technology and can use that are going to be more effective and are going to be faster. I think that. You're going to see situations where it's expected to be used, right? If AI can draft an opinion or a brief in the first instance and save hours and hours of time, that's a great thing. And that's going to be expected. I don't see that being ever being the thing that gets sent out the door because you're going to still need lawyers who are looking at it and making sure that it is right and updating it and making sure that it's unique to the case and all the judgments that go into those things are appropriate. I do find it difficult to imagine a world having, you know, been a litigator for so many years where everyone's like, sure, throw all the documents in the same pod and we'll all query it together. Maybe we'll get to that point someday. I find it really difficult to imagine that'll happen. There's too much concern about the data and control over the data and sensitivity and privilege and all of those things. You know, we've seen pockets of making data available through secure channels so that you're not transferring them and the like, where it's the same pool of data that would otherwise be produced, so that maybe you're saving costs there. But I don't, again, I think it'll be a paradigm shift eventually in that, paradigm shift that's been a long time coming, though, I think, right? We started using technology to improve this process years ago. It's getting better. I think we will get to a point where everyone routinely more heavily relies on AI for discovery and that that is not the predictive coding or the tar for the people who know how to use it, but it is the standard that everybody uses. I do think, like I said, it will make us better and more efficient. I don't see it really replacing, like I said, entirely lawyers or that will be in a world where all the data just goes in and gets spit out and you need one lawyer to look at it and it's fine. But again, I do think it will change the way we practice law. And in that sense, I do think it'll be a paradigm shift. Anthony: The final thought is, I think I tend to be, I'm sort of in the middle, but I would say generally we know lawyers have big egos, and they will never allow, they will never think that a computer, AI tool or whatever, is smarter than they are in terms of determining privilege or relevance, right? I mean, I think that's part of it is, there's, you know, you have two lawyers in a room, they're going to argue about whether something is relevant. You have two lawyers in a room, they're going to argue about something privileged. So it's not objective, right? There's subjectivity. And I think that's going to be one of the chances. And I think also, we've seen it already. Everyone thought. Every lawyer who's a litigator would have to be really well-versed in e-discovery and all the issues that we deal with. That has not happened. And I don't see that changing. So unless I'm less concerned about being a paradigm shift than all of us going out for those reasons. David: Well, I think everyone needs to tune back in on July 11th, 2029 when we come back to get stuff to begin and see who we're going. Anthony: Yes, absolutely. All right. Thanks, everybody. David: Thank you. Outro: Tech Law Talks is a Reed Smith production. Our producers are Ali McCardell and Shannon Ryan. For more information about Reed Smith's emerging technologies practice, please email techlawtalks@reedsmith.com. You can find our podcasts on Spotify, Apple Podcasts, Google Podcasts, reedsmith.com and our social media accounts. Disclaimer: This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship, nor is it intended to suggest or establish standards of care applicable to particular lawyers in any given situation. Prior results do not guarantee a similar outcome. Any views, opinions, or comments made by any external guest speaker are not to be attributed to Reed Smith LLP or its individual lawyers. All rights reserved. Transcript is auto-generated.
When I think in terms of turning leads into loyal customers, what is that first contact? And I know we've talked about that in a number of podcasts. And then from there, what is the desired path that we want them to take with us, that we want to take with them, right? Without some sort of basic path to get from here to there, the likelihood of making that happen is pretty much slim to none. David: Hi, and welcome to the podcast. In today's episode, co host Jay McFarland and I will be discussing turning leads into loyal customers. Welcome back, Jay. Jay: Hey, thank you, David. Such a great topic again. I love our conversations cause I learn so much and I feel like there's a tendency to say, okay, I got the lead. I closed them. Now I'm going to move on to the next lead. And I think we would save ourselves a lot of time and money, if we were able to turn that customer into a returning loyal customer. David: Yeah, absolutely. And you raised a great point because I was thinking in terms of just new leads that come in, turning them into loyal customers. But I think what you pointed out is probably even more important, that we already got someone and we've already turned them into a customer. And now how do we make that customer more loyal to us? I know in a lot of presentations that I've done over the years, I've talked about these sort of different layers of recognition in terms of what do people think about us? And I've often drawn it out like a target for archery practice. And outside the target is the area where it's total obscurity. They have absolutely no idea who we are or why they should do business with us. And at the center of the target, it's complete customer loyalty. And you don't get from, "I don't know who you are," to "I'm completely loyal to you" in one step. It's got to happen in a series of actions. So what you're talking about there, you make that first sale. That doesn't even happen very often in the first contact. A lot of times it requires intelligent repetition of contact to even get to that. We go from obscurity. I don't know who you are, to recognition, I recognize you, but I'm not sure if I love you yet, right? I don't know enough about you. To comfort, and then once we get to comfort, once they're comfortable enough with us to place that first time order, like what you were talking about, then they're going to see how we do. And if we did well, they might give us another chance and come back again. And if we do well on that second one, they might come back and give us a third chance. And then As long as that continues to play out, that's going to lead to that level of loyalty, but it sure isn't likely to happen in one conversation or one transaction. Jay: Yeah, absolutely. But I kind of like where you started off, too, before we dive into that a little bit more. And that is thinking about making the loyal customer out of the lead . Where do you start? Because a lot of people are like, I can't make them loyal until they've purchased a product. That's not true, is it? David: Well, I think if you recognize that when I attract a lead into my organization or when I'm even just trying to attract a lead into my organization, the goal is to turn that person into a loyal, longtime customer or client. So when you start with that perspective, you become a lot more discerning about even the people that you're approaching. You have more skin in the game, because it's not just about, "hey, can I make a sale to pay my bills for today?" It's about, "do I want this person as a loyal customer?" And this goes back to a lot of what we've talked about in previous episodes about qualification and that sort of thing. But if we start out with the idea that we want to turn our leads into loyal customers, I think it positions us better, because it makes it more relational and less transactional. Makes it more about creating the kind of relationship that will result in a loyal cus...
Maintenance is often the most challenging area in a property management business. What if you could automate your maintenance workflow with an in-house, expert AI maintenance coordinator? In this episode of the #DoorGrowShow, property management growth expert Jason Hull sits down with David from Vendoroo (formally Tulu) to talk about AI maintenance coordination and how it could revolutionize the property management industry. You'll Learn [05:25] The AI Revolution [10:51] What can AI Maintenance Coordination Do? [20:58] How Vendoroo Handles Work Orders [27:56] Why You Should Have in-House Maintenance [37:30] Where do Humans Step in? [41:37] Handling Worst-Case Scenarios Tweetables “Property management is a very human business. It's a very relationship-driven business.” “Is it scalable? Is it burning you out? Is it pulling you away from other duties that you need to be? Are you spreading yourself too thin? Great questions to ask if you have growth objectives.” “Residents don't want to talk to a computer. They want to feel that they have a connection to their property manager.” “The first offense creates a little crack between the relationship. The second one, you're losing trust with your owner.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] David: Even people who had in house maintenance coordinators or VAs, good ones, always still feel that they needed to second check all the work. And now when they're seeing the justification and they're seeing the education behind it, they get this sense of like, I can let go. You know why? Because this system is doing maintenance exactly the way that I'm asking it to do maintenance. And they feel that now they're actually back in control. [00:00:24] Jason: Welcome DoorGrow Property Managers to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you are open to doing things a bit differently, then you are a DoorGrow property manager. DoorGrow property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not, because you realize that property management is the ultimate high, trust gateway to real estate deals, relationships, and residual income. [00:01:05] At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. I'm your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. [00:01:25] And now let's get into the show. All right. So today I'm hanging out with David Normand and Reza Keshavarzi. Did I say your last name right? [00:01:36] David: We always say it sounds like the great sauce that you would put on a steak. Keshavari. So delicious. [00:01:41] Jason: All right. [00:01:41] David: Yes. Cool. [00:01:43] Jason: So David and Reza are from a company called Tulu, which we'll be getting into, which I think are probably revolutionizing maintenance related to AI and our topic today, we're going to be talking about AI and maintenance coordination, maybe getting into some of the current maintenance challenges, what AI could help with, what should be automated, what shouldn't be automated because I think that's a very important thing to cover and how to turn maintenance into a profit center. Before we get into that, why don't we get into some background? So David, why don't you give us the journey? How did you two get into this? How did you event like, how did you start your journey in the property management space? [00:02:24] David: Yeah, great. It's crazy to think about it. It just all started probably about 15 years ago. Like many of you, started a property management company with a buddy of mine. I remember we started off with 80 doors. Got our 1st client, was excited. He left his job at Verizon. I was actually in the banking industry, bidding on subprime auto loans and the 2008 crash happened. And so we all knew what happened after that. And so anyway we actually had some tremendous success and in just over four years we added over 600 doors. Which was a phenomenal growth in our market. And we had a lot of people going, "Hey, what's your secret sauce? what are you guys doing?" Right. And the reality was, is that we just cared, right? We cared harder. We had fiduciary duty. And all of these owners were leaving their other property managers and saying, "Hey, Maybe these guys have it figured out," and we were getting conversions and our close rate was like 80%. [00:03:13] It was really crazy, but something happened and just like many of us, owners started getting frustrated feeling like, the magic was wearing off because at the end of the day, no matter how hard we worked. Those owner statements and those maintenance invoices at the end of the month, I realized were the main source of friction between those long lasting relationships and the same reason why somebody left that previous property manager to come over for the hope of more transparency and maintenance was the same issue that we ran into. [00:03:41] Right. So that led me on this journey of trying to figure out, how do we standardize our fiduciary duty to owners when it comes to maintenance and help them bring transparency and education and understanding to what I feel is really the cornerstone foundation of what a great relationship is? Because no, the building can be full, the mortgage can be paid, but those maintenance bills still come in and there's still the questions. [00:04:06] "Why does this cost this much? So I had some great opportunities to work went on with Fannie Mae helped them manage their rental portfolio, but still in the back of my head, wanted to try to solve this issue. And all these years later, I get a phone call from somebody that said, "Hey, you need to meet this guy, Reza. He's in the HOA industry. And he's seen a similar issue with lack of transparency. And I think that you guys are trying to solve the same issue. Hey, why don't you meet up?" And I'll, and I'll preface this. This was the fourth introduction to a guy in a fourth type of tech or a company that we try to part with. [00:04:40] And it just shows you the journey of an entrepreneur. Like you never know when that right connection that's going to align with your passions, resources, and understanding happens. And I actually had three other techs that didn't work out before. And I didn't want to bring them to market. [00:04:52] Right. So that's our story. We got introduced to each other and the synergies have been fantastic. And I'm really excited to talk about what we're doing here in the space. So it's been a crazy journey. It's been exciting. Maybe one day I'll write a book down the road about all the things not to do. [00:05:04] Jason: I think every entrepreneur that has a little bit of success could write that book. I'm sure. So cool. David, where do you think we should start? Like there's a revolution right now, this AI revolution, like it's AI everywhere. And and it's moving fast. [00:05:21] David: Yes. [00:05:21] Jason: Like really fast. [00:05:22] And it's a bit crazy. And. Everything's changing. There's a million software tools and companies coming out. Maybe AI is making all of them. I have no idea, but like... [00:05:31] David: 85 percent of all content written online is written by AI these days. So yeah, definitely. [00:05:35] Jason: Right. There's the fake internet theory that like the majority of the traffic and communication and comments on the internet isn't even real. So it's like we're walking around this fake ghost town online. And we're consuming content and we're like none the wiser in a lot of instances. So my quick take, for those listening, as we're going through this AI revolution, it's exciting. There's a lot of change happening. [00:05:57] We don't want to be left behind. We want to make sure we're paying attention to what's new, what we can use. Everybody's probably used chat GPT once or twice or keeps hearing about it from other people. "They've got a GPT, that thing that you use." Yeah. I used it this morning, right? Like I was trying to figure out something in my Chevy Tahoe. [00:06:15] And I was like, "how do I do this thing in my Tahoe? Like, can you just tell me?" And it can collapse time, but sometimes it's not useful. I think my take on this is that human interaction is going to be a premium. It's going to be at a premium. It's going to be something that really sets people apart because we're moving away from humanity to some degree by leveraging all this tech and AI and all these tools and property management is a very human business. [00:06:43] It's a very relationship driven business. And and I think we'll get into this today. We want to be careful of using technology where we shouldn't or trying to trick people. "Well, look, I'm pretending like it's me, but it's AI. Haha. I tricked you." And what's funny is there's little indicators, like, and we know that this stuff's being used in a lot of different ways, like governments are using this now, like, we don't even know what's real on the news or what's like deep fakes or AI, like they're showing people's like doing interviews and people are zooming in and noticing their rings are disappearing and like weird stuff, right? [00:07:20] David: Yeah. [00:07:20] Jason: And stuff's going viral on like the internet. And so we're living in this world where we're super skeptical and we wonder if anything's real. [00:07:28] David: Yeah. [00:07:29] Jason: Sometimes people are even asking, like, is this AI on a phone call? [00:07:33] David: Yeah, well, you can't tell the difference now. I'll tell you, our tech team and AI guys they actually played around with me a little bit and they actually use my voice and had me doing work orders and no one could tell it was them. [00:07:44] Not me speaking and giving triage and doing that type of stuff. And I actually I tested it with my wife and I sent her a message over it and she didn't even blink an eye. Didn't even blink an eye. It was crazy. It was that first like aha moment that really when we talk about our fiduciary duty to our clients and ourselves about the power of this and where it's going, right. [00:08:01] And to that point. So when it comes to AI, I think people need to understand that really, the way that we look at chat GBT to me is just the new Google, right? It's Google on steroids. Okay. And so, yeah, for sure. Do we use some chat GBT to understand like, how to write the perfect sentence structure? For sure. [00:08:18] But the cool part about this, Jason, is that what we're doing is: how do we use these models in this education that teach it about fiduciary duty to your owners? That's what gets me excited, right? That's what gets me excited to understand and to think intelligently and to think with thoughtfulness to the owner's pocketbooks when it's considering a decision of how to dispatch for maintenance, right? [00:08:42] Like, isn't that what we're all looking for? That we need a system that every work order that comes in that it goes to a expert maintenance coordinator that we know what that costs. I'm talking expert maintenance coordinator, a person's been in this job for 15 to 20 years that you can send a work order to and they don't make an error. [00:09:00] They're intelligent. They're able to educate, they're able to be client facing. Like there's a real skill set there if you put that on a CV for somebody, right? But that's not what this industry is filled with. Actually, this industry is filled with individuals who are under pressure to find the most affordable maintenance solutions and the most affordable ways to try to find people to run those maintenance solutions. We're allocating the least amount of resources to handle what I consider the highest probability of owner dissatisfaction in the property management relationship with the owner, right? So I have a VA who's 2000 miles away that's responsible for spending a thousand dollars in my owner's money. [00:09:38] And there's all types of potential errors and things that are happening as a result of that. So the way that we look at AI and actually in our business, we just use the word smart a lot. And we try to use that word, that intelligent instead of artificial. Because you know what? There is a lot of human input that has gone into this to teach it how to be smart and to teach it how to consider the fiduciary duty. [00:09:59] So at the end of the day, I would encourage all the listeners here that are going on this journey with us today to understand, not to be skeptical, how to maximize its value, right? And that's really what we're going to be focusing on today and to show you how we're maximizing its value to help us achieve what we call our dream outcome when handling maintenance. [00:10:18] Our dream outcome is as a property manager, I'm starting a company or I'm looking to grow, or I'm hitting those next growth objectives, or I'm looking for ways to be more profitable. What is my dream outcome? And that all circles around having an expert maintenance coordination in my office that is reducing trips costs and considering the fiduciary duty to my clients. [00:10:40] Right? So that's what we'll talk about here today and how we're using AI to achieve that. [00:10:43] Jason: Got it. Well, let's get into it. So what can AI do and what can't AI do? Like, well, specifically what can Tulu do and what can't Tulu do? [00:10:54] Where's the line drawn? [00:10:55] David: Yeah, that's a great question. [00:10:56] So first of all, I always tell everybody this out of the beginning: we are not an outsourced maintenance coordination solution. We're not an outsourced company. Yeah. We are not a vendor. Okay. We're not bringing vendors to your marketplace. Okay. Tulu is your expert in house maintenance coordinator. [00:11:13] So if you're thinking of "I'm hiring a maintenance coordinator" or "I'm building a property management and I need a maintenance coordinator," you now have that. That's that ability to add this onto your software, your system. It's a simple plug and play. You get to remain inside of your portal, you don't have to leave it. [00:11:30] There's not another new portal, all updates, all things are pushing to Buildium and we're pushing to Appfolio. That was a big part of it. There's no new app for the vendors. There's no new app for the clients because we know what's important for them to live inside of there. So what can it do? Well, first of all, it's a leader. [00:11:43] Okay. And being a leader means that it is going to use the information that we capture about your company to lead your VAs, to make expert triage decisions that always consider your fiduciary duty to the owner. So let's give an example right here to break that down. Right. Say a hot water tank comes in. [00:12:03] Okay. Hot water tank's leaking. Okay. First thing it's going to want to understand is what time of the day is it and where is the hot water tank leaking from? [00:12:09] Jason: Okay. [00:12:10] David: And then it's going to determine based upon the location of the hot water tank, the type of the hot water tank, which type of vendor at which time is the right one to send out. That is the most cost effective that has the greatest probability of resolving that issue for the best price and meets the satisfaction of the resident. Right. Now that was a mouthful right there. Okay. And if you think about all of the potential errors and data points and things that are involved, the smart maintenance coordinator considers all those and it brings out a triage and it tells the VA "here's the pieces that you're missing. Here's the information that I need. And here's what my suggestion is for you to move forward." So it's amazing at being a leader. And then it's amazing at being an expert about creating communications for the resident and to the vendor to direct them. And then it's also an educator and at the bottom of every work order. [00:12:58] And I hope to be able to show some people it's really cool. We don't believe in just telling people what to do. We should educate them and tell them why they're doing what they're doing. Right. So imagine if you had the best expert maintenance coordinator leaning over the shoulder of every VA that you have standing there and telling them every work order, every time, here's what to do, here's how to do it, and here's why you're doing it. Right. And as a result, we're finding that VAs that come over that are dedicated to the account in two weeks, they're educated. And in six weeks, the majority of them are executing as a high level maintenance expert within six weeks. Of after sitting down and learning the training system, because just as much as it's leading, it's also training and educating. [00:13:38] That is a wow moment for somebody who's been in the space, who's been here for 15 years, managing hundreds and hundreds of people for government entities and stuff and understanding the amount of time and effort and training that goes into somebody. And then all of a sudden they come and they tell you, "Hey, by the way, I got a new job. Thank you for all the training. I'm going to go make $30,000 somewhere else," right? How many times has this happened to me? Hundreds of times, right? And so that's a big part of what we're solving here. [00:14:02] Jason: So in order to be effective and operate as an expert maintenance coordinator so that your VAs that don't have this knowledge can function as if they have this knowledge, then this has to be programmed, right? Maybe it'd be helpful for, the viewers or listeners of this podcast to find out what are all the inputs that go into this? What did they have to provide and what do you guys provide, so this AI, they can trust it? [00:14:29] David: Yeah. Yeah. Great question, Jason. So first of all, I want to put it on point two to make an emphasis that in this journey that we're all learning about these smart technologies and AI, there's still a big part of human component, right? [00:14:38] And it's like when you chat, when you write something in chat GBT, like you just don't send it without looking at it. Right. You're reviewing it and making sure it's still saying that you want it to say. Right. So everybody rest assured this thing is not, living on its own and there's checks and balances. [00:14:51] But the onboarding on average takes 30 to 45 minutes. Okay. And one of the things that we did is number one is, when it comes to triaging and best practices, there's literally probably about 500,000 work orders of data points that it's considering. And it's an expert in that thing that's saying, "Hey, listen, this is how you should handle every work order that comes in because I've seen this, 20,000 times, and this is the best outcome." [00:15:18] Right. But then what it does is it allows the property manager to talk in natural language. Like you want to talk like a robot. We don't have to write weird code. Just say things. "Hey the owner of one, two, three main street really loves Tom." Tom works on his properties. Comes in 123 main street comes up. It understands what Tom's capabilities are. And it says, "please use Tom to use this." The owner prefers that Tom works on his properties. They have a great relationship. Cool. And so those little tidbits for example, if the heat goes out in unit number one, understand that access has to be in unit number two basement to the HVAC unit, right? [00:15:52] So that's good to know, but why is that important to know? Because most VAs would make a mistake. They say there's no heat. They don't check property notes. They send out the plumber. Plumber is knocking on the door at unit number one. Person says, I don't know where the HVAC unit is. Tenant next door is not home. [00:16:06] Now you just charge your owner for 250 emergency call to go out. The resident still doesn't have heat. They think that you're unorganized. It shows you're unorganized on your owner statement because there's two invoices. "Oh, no, wait, you want to cover that? You're unorganized." So you just ate 250 that you're already not marking up on maintenance and you do that 10 times a month. [00:16:25] Okay. And that's what's going on. [00:16:27] Jason: And this is where then the owner's like, "I might as well just do it myself because I know everything and it's in my head." So how did they get all of that out of their head? All the little things they know about each property, each multi unit property, what's in the basements, what's..? [00:16:40] David: We have a cool onboarding process. And again, most times about 30-45 minutes, they sit in, it's called building your AI co pilot. Actually, a lot of people dig it. It's cool. It's a cool process. And we will be first, we go into your system and we're able to pull out all your work order data and it organizes all your vendors, and we can tell who all your vendors are and what you're doing based upon the work order types. [00:16:59] We can tell if you're a preferred guy is here. Number one guy is, "Hey. This guy always seems to be working on these properties." So there's a lot of information that we gather. And then you just come in and you're like, "yeah, he's my primary. He's my secondary. Oh, here's this little information about this property." [00:17:13] So you really don't have to get like, like crazy. Like, like, the mailbox is located, like. You can add that stuff later, but in the beginning, it's just like, what are those important rules? I remember this one that really jumped out at me as impactful, a classic mistake, this owner had a lady living in the apartment for 35 years. [00:17:31] Okay, and she's getting old and one of the rules is that no matter what maintenance ticket comes in, "don't ask her to triage. Don't ask her. It's the tenant's responsibility. I love this person. Please send her out and just take care of her. Right?" What a great rule to put into your system that shows the owner that when that work order comes in, He's not getting a call from, and I forget what her name is. [00:17:51] And like, they're asking me to change my light bulbs again. And then he's like, I told you twice not to do this. And next thing he's looking for another property manager. And I always love that example of that rule. So that's what you're looking as far as the information you're giving us takes about 30 to 45 minutes. [00:18:03] For people who have anywhere between, 150 to 350 properties. If you start having, 500, 600, a thousand, I would definitely allocate up to two hours and onboarding for sure. [00:18:13] Jason: Okay. That's really fast when it comes to rolling out a new technology. Yeah. It's ridiculously fast. [00:18:19] David: Yeah. [00:18:19] Yeah. Yeah. Yeah. Extremely quick. So basically you have all this learning and understanding that's going into who your preferred vendors are. We know how to handle the maintenance work orders. There's no like integration that has to happen. And so as this triage is coming through, you're getting this expert level triage and you can add things down the road. [00:18:38] You can add it, but how to handle the work orders as we say, there's really nothing new in maintenance. What's new is: "what's the NT for the property? Are there any special conditions that we need to know? Right? What are your residents' responsibilities and what are you responsible for?" Once you have those four questions answered, how to handle the hot water tank, at what time to hit on the hot water tank, how to, how to repair this door, how to do that. [00:19:02] Those true principles of maintenance are true for everybody, if that makes sense, right? So, so that's a big part of the value that you get that You're hiring an expert maintenance coordinator. If you were to hire him, you wouldn't necessarily be telling him. "Hey, this is how you replace a doorknob." [00:19:18] He should already know that when you hired him. Right. So think of like it that way when you're considering us as a technology. [00:19:24] Jason: So, a human maintenance coordinator, the challenge would be, there's no way they can remember every detail about every property, right? [00:19:32] David: Yeah, [00:19:32] Jason: it's not. Which means they would have to keep notes. [00:19:35] Let's say they've already got a decent amount of notes somewhere. Might be in the property management software, maybe they've got their own, I don't know, database of something. Is there the ability to pull in all that information? [00:19:46] David: Yeah, a hundred percent. Yeah. To grab those notes out. A lot of people have the ability to export it. [00:19:51] They have a good note file or something like that. We get those, we take that information and it can just be pushed up into the system for sure. So yeah, the onboarding it, it can be, again, some people come in and say, "all I have is single family houses." Everything's pretty straightforward. [00:20:03] Other people send over an Excel list. "Here's my property notes at the property levels" and upload them. So that's the cool part where. You ingest into the system. There's not a lot of data, manual input. It's reading it and assigning it. And that's where we're using technology to help even improve the onboarding process that you talked about, right? [00:20:19] You think about people wear t shirts, like, I survived the Yardi onboarding process, right? Like, technology has come a long way to help improve that process, and that was a big part that we focused on. [00:20:28] Jason: Yeah, that's wild. So once you've got them onboarded and they're in your system, the AI knows pretty much everything about the property, but maybe it doesn't, maybe there's some things it doesn't know. [00:20:41] And so work order comes up. You're working on something and it's still just in the property manager's head or it's still in the business owner's head or maybe they don't even know yet, but it runs there. It runs into an issue. It's like it has a question maybe, or it doesn't. It needs to know some more stuff. [00:20:57] I don't know. What happens in those scenarios? [00:21:00] David: Yeah, this is a great one. So, all right, so let's talk about the life cycle of a work order. Right. And let's everybody just understand that there still is a human component involved in this, right? Every property manager has a dedicated, we call them a remote team member, who's now this expert maintenance coordinator at the cost of a remote team member. [00:21:16] Now they're able to execute at a very high level. But there are going to be things that they're faced that they don't understand. So they have the ability to communicate with you one on one, or we also have this process internally that they have this ability to go, "I need a request from the expert in the loop" and the expert in the loop is you know, invoice review, complication that they're saying that the AI is not clear on them and it's asking for additional support. And so they can bump that up to individuals, myself, and there's other members of the team members that are big part of this and they can get expert level triage inside of there, to say, "Hey, listen, I'm facing with this vendor issue. They need 25 percent upfront. The job is only 500. I'm not understanding what to do here. The building is located and they're saying access is weird. They need to bring something in." There are complications that still involve human understanding. And so that expert in the loop solves that piece in there. [00:22:07] And also speaking of humans, we believe that residents and vendors still need to speak to a human. Okay. Super important. Okay. So the value that we have is that we're able to create expert level triage, According to their specifications and the training model and all the great things and the automation and the text messages that are written for them and the codes that are written for them the emails, all those things. [00:22:31] So, if we can automate at a very high level and free up our people to be able to provide support on the phone to the vendor on the field, or to actually talk to a resident, everybody knows this and I talk to everybody, guys, residents don't want to talk to a computer. They want to feel that they have a connection to their property manager and that when they call in, a lot of people have not even adapted technology for anybody who has, residents have been with them with a while and they're used to talking to Janet, they're used to talking to tell him inside and next thing you can say to them, "Oh, we have a new maintenance system. And by the way, you have to talk to the system." They're like, "okay. This is lame," right? Like, so that personal connection and we have a saying inside of the office that we keep your residents and your vendors within arm's length of you, right? It's communicating. They're using your property management name. [00:23:20] They're speaking on your behalf. This is an extension of your office. This is your maintenance coordinator. Don't think of this as a vendor. Don't think this is an outsourced maintenance solution that you're setting all your maintenance to some company that's sourcing vendors or bringing them in and doing every, this is your in house maintenance team. [00:23:38] So always consider that when you're thinking about Tulu, real people. In house maintenance coordinator just powered by AI enabled execute at a crazy high level. [00:23:46] Jason: So, yeah. So how do tickets get into the maintenance system? Like how are they initiated? Do they still have to be answering their own phone calls? [00:23:56] Are they just putting it into their property manager software? And then Tulu is going to like start taking some action. What communication does Tulu facilitate or take over if we're going to be having still needing some humans to be in Tulu allows us to increase the amount of communication and care that we show. [00:24:13] Where do we draw the line? Like, where is Tulu stepping in and doing some communication and where do we need team members to be doing communication? [00:24:21] David: Yeah. Yeah. Great question. So let's just go through the life cycle of a work order for everybody. I think that's what everyone really understands when they're all thinking about this. [00:24:28] Okay, let's give me a work order from start to finish. Right? So no change to your residents. No change to anybody. They log into their portal, Buildium, Appfolio, RentVine, whatever they're using. They submit a maintenance work order, that maintenance work order through their system is dispatched to the Tulu maintenance coordinator, expert maintenance coordinator. [00:24:46] All the magic is happening, all the triage, everything is taking place, and inside of the property management software, they're going to see. Work order. [00:24:53] Jason: And is that dispatched through via email? API? Yep. [00:24:56] David: Oh, yeah. Yeah. Just through email? Yep. Set up as simple. You can set it up as a maintenance coordinator and as the maintenance coordinator is set up and the email comes in and it pings out and that creates the work order and starts to process through the, yeah. [00:25:08] Yep. Cool. And then the property manager will see that the work order has been it's in triage on the status of their system. Then it's assigned, then the vendor will be assigned there. And then from there, the updates, when it's scheduled that we call it the who, what, and the why, right? [00:25:25] What's going on, who's doing it and what's being done to progress this for. That's a note. You're constantly getting those notes. Now, the cool part about this, Jason. is behind the scenes. All of those text messages and phone calls and emails that we call the noise that are between the residents and the vendors and everybody are all being captured in a system behind the scenes. [00:25:45] Right. Super value there, right? If a resident is a little bit upset about something or you have some questions, "Hey guys, can you hand me the phone call this one to show me the text messages," right? Communications are big part. So we capture all those communications inside there at any time that the owner of the property manager wants to pull them. [00:26:00] That's great. Then the work order is completed. The completion, quick question. So [00:26:05] Jason: all this communication between tenants and vendors, unless they're using some sort of magical system That the vendors have to be in and that the tenants are logged into. And it's like seeing all this, how does Tulu capture that? [00:26:18] How does it know that the vendor is communicating with the tenant or the tenant? Okay. So it would be any point. [00:26:24] David: Yeah. Good point. Any point that the the tenant. Is communicating or the vendor or just communicate with two of those. So if the vendor happened to communicate directly with the tenant, it would not capture that part, right? [00:26:34] That's their phone to phone with that part, right? So it's when the resident or the tenant is communicating with the maintenance coordinator. And as we all know, tenants and vendors love to communicate by text message, right? That's their number one thing to do. So, it's really cool for vendors too, because as we know, a bunch of vendors, they hate. "I don't want to work in another app." Vendors can take pictures from their phone. They can upload estimates from their phone. The estimate comes in and it's actually turned into this really pretty estimate because we know vendors estimates are notorious for being on the back of a paper and hand scratched, right? [00:27:06] So it actually creates into a brand new Tulu estimate. And so your owners get transparency into pricing and labor. And it's standardized and everything looks clean. And so yeah, vendors love it because they're not lazy, but they're busy guys. And instead of going home and trying to do a whole bunch of paperwork, they can now just generate an estimate, take a picture and shoot it right through. [00:27:22] So, yeah. [00:27:23] Jason: Because the challenge that there's a lot of communication involved. And so usually to decrease the amount of communication, they're trying to figure out how do we get the vendors to just talk to the tenants directly to collapse time? But if you have AI, then my guess is that Tulu will still just act like that middle person because the vendor can communicate with them, they can immediately text you, then Tulu texts the tenant, then it's just doing it real time. [00:27:45] You don't have to wait on a human being in your office to like make this communication happen. So you're like, "well, we're so slow. Let's just get them to talk to each other." The AI is making this happen. Is that accurate? [00:27:56] David: Huge point right here is, and man you really hit off the nail on the head on this one point here. [00:28:01] The amount of people that we are seeing that they're using vendors to perform triage in this space is actually alarming. Okay. Alarming. All right. Vendors should not be performing our triage. They should not be the ones trying to figure out what is going on. They're not our client facing people. Maybe some guys are good. [00:28:20] your in-house guys, goods or whatever. The majority of people are using this, right? The beauty of the system is: Do we have enough information that is captured? From the resident, the property manager that considers the needs of the owner to formulate the correct direction to the vendor so that they can show up with the resources that they need to fix the job the right time or show up educated about what they're there to fix. [00:28:41] Jason: So let's talk about this real quick. Like vendors should not be doing triage and why not? Like, like what are the obvious ramifications here? Well, vendors, that's like asking a surgeon if you need surgery, right? That's how he makes his money. [00:28:55] "That's the solution is surgery. We should chop that out, like, let's cut that thing out and I get paid thousands and thousands of dollars." [00:29:02] David: Or how about this one, Jason, on an owner's report. I see a cost for so many times you see a cost for a maintenance guy, "unable to resolve expert needed." well, why? Because the maintenance vendor was sent out to do the triage. [00:29:15] That's not fiduciary duty to the owner. If we had the right information, we could have avoided that one trip. So we have some really cool case studies. I'd love to show people that out of like 260 work orders, we have one right here, a client that signed up with us. And so out of that thing here let's see. [00:29:31] They completed 194 work orders. 17 unnecessary trips were canceled. Wow. Okay. 17 unnecessary trips and 15 of those work orders had an immediate reduction in price because they said that the wrong resource was assigned to that. So think about that. 17 different numbers. [00:29:48] Jason: So if that, if they have an in-house maintenance team, you're decreasing your your cost deploying these texts, going out and doing stupid work, like significantly. If you are using third party vendors, then there's always an expense. If you're sending anybody out, unless you're like, go do a bid, or something like this, but that's costing the vendor, which they're going to be more frustrated with you. [00:30:09] So you're freeing that up or they're charging you for it. "Oh, well, if I go out, I charge, right?" Yeah. [00:30:15] David: I'll give you an example. We just saved owner of a pad split property who wanted to replace the refrigerator. The request came in and they asked for three estimates, okay, to replace the refrigerator. [00:30:28] Okay, the suggestion came back that basically said in a nutshell, summarize this, "why are you sending three different appliance vendors who are all going to charge a trip fee to go look at a refrigerator when a Home Depot program should be used and the cost of refrigerator should be 860? To factor all those costs in, it would have been about 1, 400. I don't understand why you're doing this. Please explain, right?" Talk about fiduciary duty to the owner. [00:30:51] Jason: This is why owners get frustrated and they're like, "I might as well just do it myself." [00:30:55] David: " Because I knew better. I would go to Home Depot. Everyone knows to order a refrigerator from Home Depot, right? Unless there's special circumstances." And now imagine this, and this is where we're going with this, Jason. At the end of each month, these owner reports go out to all these owners, and owners sit down and they call up the property manager, and we always hear people talking about this at every conference. [00:31:14] "Oh, I don't want to answer that phone call. I know what this is about, right?" And the property manager is scrambling at the end of the month to call the maintenance coordinator, dig into work order notes and justify why did this cost this much? "Explain this to me," right? So we have this really cool report that's coming out that basically, including in the property owner, It would let you know that, Hey, you had six jobs that were able to send a handyman this month. [00:31:38] Here's what's going on. You had two emergencies, two replacements, little asterisks that said, "Hey, this trip fee was 120. Why? Well, it required two people because there was a toilet that was being replaced on the third floor so they requested an extra hour of labor to be able to bring that toilet up because it was too like..." intimate details so that your owners are feeling like they're getting this like this whole transparency, unbelievable transparency, this report, the property manager doesn't have to waste at the end of the month, which I used to send away two to three days at the beginning of each month, just to answer phone calls and questions. [00:32:12] Jason: Right. Yeah. It's like "why did it cost us much? Why?" [00:32:14] Like they can just see it. [00:32:16] David: Yeah. "Why didn't you send Tom?" "Well, I did send Tom to snake the drain because it was clogged in the master bathroom. We set his limit at an hour. He used a 17, 25 foot power snake. And we said, if you can't get this done within an hour, then we need to send Roto Rooter." "Oh, I get that. You really did try to save me money in the beginning. Yeah. And Roto Rooter found that 35 feet down the thing was a clogged diaper or something like that." That's what owners need to understand. And to break that down in every work order is a tremendous strain on property managers and our system in V2 that's coming very quickly. [00:32:52] I was actually working on this morning. Those owner reports will be generated then if every month that explain intimate details about the thought process. and the costs and any decisions behind breaking it down into category for every maintenance work order type for their owners. Huge value. Imagine going to a client, a new client, and you're presenting against somebody else and they say, "Hey, how do you handle maintenance?" [00:33:14] And you pull that report out and you put it down on the table. [00:33:16] Jason: You're like, "like this is the level of detail. Nobody else is doing this." The maintenance coordinator get on the phone every time and saying, "let me walk you through all these charges and why they happened and what did." And like, how many people listen to this right now? [00:33:31] I'm like, I know you're listening to this going, "if I never had to do that again, that would be the best thing ever. Ever. Like I've never had to have that uncomfortable conversation with the owner." Like it's all in there. It's all there. Like it makes sense. [00:33:43] David: "Here's why we are your property manager. And here's the value that I'm giving to you in the transparency to maintenance." [00:33:50] That's a huge burden. It's a significant pain point. And we know this Jason, the first offense creates a little crack between the relationship. The second one, you're losing trust with your owner and they're beginning Googling "other property managers around me." The third one. You're just waiting for them to look and to go somewhere else. [00:34:07] So the relationship is falling apart. Right. And we are trying to know that [00:34:11] Jason: You got a 600 door business in four years. [00:34:14] David: Yes. [00:34:15] Jason: Like, and so, and you have probably heard countless stories of people if they're switching companies, it's really rare that people switch companies. Usually things have to be pretty bad and maintenance that's in communication. [00:34:27] Those that's number one factors, communication and why people leave. And so this allows you to free up a massive amount of time so you can actually be on the phone with the people when you need to be on the phone and stop wasting time with all of these repeat calls, repeat requests, what's going on with this, and yeah, this would just save so much time. [00:34:44] David: Well, think about growth, Jason, right? So the three things that we're solving for, number one is we're protecting fiduciary duty to the owners, justifying maintenance costs and reducing the cost of expert in house maintenance coordination and making it scalable. Yeah. Okay. [00:34:58] So now if I can have an expert maintenance coordinator that I add to my office, there's a fixed cost to it. I can scale infinity and not have to worry about hiring and training and staffing and issues and all these problems in global, right? My fiduciary duty to my owners, I got reporting and transparency. [00:35:17] Maybe my property manager now, instead of being able to manage 250 doors, maybe they can manage 350 doors. Isn't that cool? Like that's where we're going with this stuff for sure. [00:35:25] Jason: Yeah, it definitely would make a business as maintenance coordination, maybe infinitely scalable. So, okay. I know somebody that's listening, that's very detail oriented and their brain doesn't think like a spider web, like mine is going, "Hey, you guys never finished the example scenario because Jason derailed it." [00:35:43] And so we've got the maintenance request. It's come in. [00:35:46] David: Yeah. [00:35:47] Jason: So take, let's go back to that. [00:35:49] David: Okay. Yeah. Maintenance request comes in the triage takes place. The information is gathered once the information is gathered, and it fills the requirements of what they believe is the right decision. [00:36:00] At that point, the scheduling takes place. Okay. [00:36:03] Jason: Okay. So which pieces of Tulu doing? [00:36:05] David: All of this. [00:36:05] Jason: Okay. Okay. [00:36:07] David: Okay. Okay. So then we're scheduling and then the work is completed. Quality pictures are received. If the resident is satisfaction, you have happiness received, vendors invoices received, and that's all uploaded into the system. [00:36:20] And then at that point, the property manager can pay the vendor directly if they have a great relationship and maybe they want to pay them in whatever way they do. A lot of people like paying their vendors, that's fine. Or they can reimburse the Tulu system. If they just want to pay one vendor for the rest of their life, and then Tulu will pay the vendor for them directly. [00:36:38] So it is from intake to vendor payment, all updates, all communications, all triaging, everything. [00:36:46] Jason: Tulu does all of it. Does it all. [00:36:48] David: It is your perfect maintenance coordinator. What we call the dream scenario. It has the ability to triage, troubleshoot, knowledgeable about vendor pricing, it's client facing and experience and client facing means that you can even set the parameter that said, "Hey, if anything is over my NTE, I would actually like you to generate your justification as to why think about this and send it out to my owner." Now imagine your owner getting this super email that's like, "Hey, listen, we have this problem. So the five to fancy, here's the steps that it took place to do." [00:37:15] Jason: So like the amount that's in the agreement that says like anything under 500 in a single month, like we have a right to just take care of it. Right. Or something like this property managers having their agreements. Okay. So, so where do they need humans then? Where do humans come in all of this? [00:37:31] David: Humans need to be there to provide expert level, the same expert level triage that the system is providing, we need humans in there to make sure, first of all, it's accurate. There is a component of that, right? We're reviewing this and training it, learning it, but as we talked about before, humans need to be there. [00:37:47] We love that they have a great relationship because they're an extension of the office with their RTM, right? With their property manager and that RTM, they get to know each other. Humans are needed to talk to the residents and humans are needed for vendor support. Okay. Vendors don't want to call into a robot when their hand is in a sewer line from the field asking about, "Hey, I need help and direction. What's going on?" [00:38:07] They don't want to hear "press two if you're unhappy with this service," like they don't want to hear that. That's where humans come in. [00:38:13] Jason: Got it. Okay. So what are some of the results that you're seeing when you're installing in this into businesses? Like what's shifting? Because I'm hearing some things like it's going to decrease the time you're spending on the phone with your owner. [00:38:25] So it's going to decrease the amount of time doing communication. You won't have to spend time doing triages. It sounds like a large piece of maintenance coordination is going to be taken care of. It sounds like staffing costs can be reduced. You tell me what are clients noticing once they get this installed over their previous systems of using a stack of tech tools to try and get their team to be able to handle this stuff? [00:38:47] David: I think in the beginning and I think that it's cool in our relationship is just to hear people come back after the first month and go, "I can't believe it. Like I went an entire month and like, I was not involved in maintenance the way that I feel that I needed to be to make sure that all these things were taken care of. And I'm finding myself with like 20 hours extra a month." And we're like "yes, go grow. Go add more doors. Go show greater value to your clients. Maybe call your client that you haven't been calling in a month because you've been so busy." Right. So, so those are really cool. I think from a cost perspective, they are appreciating. [00:39:24] And I'm believing that. Even people who had in house maintenance coordinators or VAs, good ones, always still feel that they needed to second check all the work. So even though you're giving to somebody, they never were able to detach themselves from me. [00:39:37] And now when they're seeing the justification and they're seeing the education behind it, they get this sense of like, I can let go. You know why? Because this system is doing maintenance exactly the way that I'm asking it to do maintenance. And they feel that now they're actually back in control. If that makes sense. Or they're giving it away, but they're actually feeling they're in more control, if I'm making sense there. That's one of the coolest things is that they feel now they have their pulse on every work order where versus before they have to dive into search. Now they know that their requirements are just laid over every work order. So those are some big ones that I'm seeing, especially for those people who really show their value to their owners in the fact that they say, "I'm involved in every work order, every job." That's a great value prop. It really is. Is it scalable? Is it burning you out? Is it pulling you away from other duties that you need to be? Are you spreading yourself too thin? [00:40:29] Great questions to ask if you have growth objectives, right? Scalable solution. And basically what we're doing is we're allowing the best in the business who are property managers who have created great relationships to duplicate themselves. And that's exciting for them to see. I think that they're like, "wow it's thinking like me." [00:40:45] Jason: This really sounds like a serious competitive advantage for a property manager that adopts this over any other competitors that don't [00:40:54] David: Jason, I'm going to a new client pitch and now I'm knowing that the guy next to me is sitting down showing him, "this is how I handle maintenance. This is how I'm keeping your cost down. This is the process. And that new report's coming in our V2. I was actually working some funnels that this morning. And if you're laying that down and then you're walking in behind them and the person says, "well, how do you handle maintenance?" [00:41:15] "Well, I personally call you on every maintenance ticket." We're witnessing the greatest generational movement of wealth and real estate properties from retiring baby boomers to the next generation to their kids who are all grown up in a technology world that are demanding transparency and reporting and it's just going to be the new standard, Jason, a hundred percent. [00:41:34] It's going to be the new standard for sure. [00:41:36] Jason: Okay. We probably got somebody listening. They're super skeptical. They're like, there's no way. And they're going to throw us some crazy scenario that came up recently. And I'm sure you've heard some of these. So how would you address that? Like some sort of like, "well, what if it's like this and this," and it sounds like worst case scenario. [00:41:54] The AI just says, expert in the loop. Like it's, it raises his hand in some way and says, "Hey, I could use a human over here." [00:42:00] David: Here's one that actually, as a guy who in my history, we had portfolios, like 30,000 properties. [00:42:06] So I've done probably over 500,000 work orders. In my career. Okay? [00:42:10] Jason: More than most of the people that are probably listening to this. Yes. [00:42:13] David: Yes. And as a result, just because of the size of the inventories that we used to manage the other day, a resident submitted a maintenance work order in and said, "my microwave is not working. And I assume it's because my gas stove is not turned on. And does my gas stove need to be turned on in order for the gas to flow up to my microwave?" Okay. True. True. Okay. All right. True maintenance work order. The the smart system picked that up and now imagine a VA facing that without any knowledge or an experience that's going to be an email to the property manager, a phone call to somebody, or maybe they make a mistake because they're 2000 miles away and they don't have any contacts and they sent out a plumber to go investigate. And the owner says, "why are you sending out a plumber for this?" Right? Right. Okay. The system picked up and it literally educated and trained. And it said that gas has no relevance whatsoever to a microwave solution. This is an incorrect thing, right? And that, when I saw that one, it makes mistakes. [00:43:04] Don't get me wrong. It's not perfect, but when I saw it pick up on that one, I said, man, I said, this is getting exciting that it picked up on that. So I would ask that person to come and just experience it and look at a little bit and understand guys, right? This is exciting. This is new. It's learning. [00:43:19] We're developing and it's improving daily. There's still a lot of human oversight. There's still a VAs that involved. We're getting expert maintenance coordination down to a price point that is affordable for everybody, scalable for everybody. And the biggest point at the end of the day, your owners are going to feel that every maintenance work order comes in, it's being handled by the best maintenance process in the industry. [00:43:39] And that's what you're going to be able to offer them as a property manager to compete against other competition you have in your market. And I think that's a good value prop. So. [00:43:46] Jason: Yeah, definitely. So is there anything else related to turning maintenance into a profit center that we should cover? [00:43:52] David: Yeah the first step going into a profit center is realizing that the average person is paying between 16 to 28 dollars per door to manage their maintenance, right? If we get that down to the correct number, and I'd love to have anybody come through and we'll run the analytics for them and we'll give them a pricing model for that just off the bat, the first profit center that we're creating is what if I'm able to reduce that by 50 percent your cost, that's an immediate profit center, right? [00:44:16] That's profit center number one. And then we can look at profit centers number two, that like, all right, now I can add on if I want to add on to my markup or we have some other ways that we can show them how to. But the first profit center needs to be is what do you know how much you are paying per door to manage maintenance? [00:44:34] Take all of your staff, all of your VAs, all of your systems, all your after hour services, take all those pieces, add them all up and divide them by the number of doors that you have. So every door that you bring on, it's costing me $27 to handle maintenance emergency services. Okay. Know that number, and let's have a talk. [00:44:54] Jason: You got to build that calculator on your website. [00:44:56] David: It's coming. [00:44:57] Jason: A lot of calculators like that to help people calculate their cold lead marketing costs or whatever. And as soon as they fill that out, they're like, "okay, I'll sign up. Like this is ridiculous. What I've been doing?" [00:45:06] David: We have that in product right now. [00:45:07] We have a couple of pieces. We did the finish on it, but that's coming out where people can just understand what they're paying per door. But give us a call up. We'll walk you through the exercise. We'll show you what you're costing. Think about that as your first profit center, Jason. And then we can talk about other ones and we help give some people some advice still. [00:45:22] Jason: So David, you have a lot of knowledge and experience. How much of your knowledge and experience has gone into bringing this AI up to understanding what you know? [00:45:32] David: I've been working on this for 12 years. Of putting the data and the learnings. And again, I've been fortunate guys where it was just my path. [00:45:39] It was my journey through this, where I've got to work for some huge outfits. I had my own consulting company for seven years. I was working with some of the biggest SFR groups in the nation, guys with 10,000-20,000 doors. And I'm just fortunate to understand the amount of data. So, I've put my blood, sweat and tears into this, but at the core of that Jason, my blood, sweat, and tears. [00:46:00] Is that, 15 years ago when I was brand new in this property management space, I had a broker tell me one time that after the sale of the property is done, the success of the owner is no longer your business or mine. And it's up to them. The sale is done. And they told me that when they walked away and that bothered me to this day, it bothered me that the fiduciary duty that individuals are giving to us to manage in some cases, millions of dollars of their money and assets and portfolios, right? And what type of products or services are we demanding of this industry? That we would demand of, let's say if I gave 50,000 to my broker to invest in the stock market for me, what type of services and technology and platforms am I demanding of that person, education, schooling, name brands, right? [00:46:45] But yet, are we demanding that same of us in our fiduciary duty to somebody that's giving over maybe their retirement to us their kids', future, college... you hear all these people, "why'd you get into real estate?" "I want to create a college fund for my kids." And after two years, the guy's like, "this is not what I signed up for. This is the worst mistake I ever made. And I'm backing out of, buying more properties because of challenges," right? That's what I'm driven by. And I've always been driven by that. It's my curse. And so I'd have to say there's a hundred percent of me in this Jason, for sure. [00:47:13] Jason: Awesome. And it, this will outlive you like AI doesn't die. [00:47:17] And this is this not to be grim, but this is the concern. Like anybody has when they're signing up for a business, they're like, all right, "how much is reliant on just this one person? How much is reliant on that key person I'm interacting with?" Right. And the AI is not a person. Right? [00:47:34] And so, yeah, so that's really fascinating to think about. Like you've built all that into it and it has immediate, instant expertise. It's not like, "Hey, well, let me go call Tom and let me go check with Fred or let me..." like all the data it has, it's there and it's instant. [00:47:54] David: What's the difference between an emergency of a hot water tank that's leaking in a basement with a permeable stone floor versus emergency hot water tank that's located in the utility closet on the first floor? [00:48:04] One doesn't have to necessarily require a person to go out because there's no damage to prevent with water leaking down there. But the other one is leaking onto the floor and damaging your drywall. So these conditions have to be taking place. Locations of hot water tanks, like there's, I can nerd out in this and I'd love to sit down with anybody and drink beers and talk about all the millions of different maintenance things that I ran through. [00:48:24] But at the end of the day, when you're able to show your owner, "we acted as an expert." That's the guy that's going to say to his buddy when they're just having a drink, "call these guys up to manage your property because they're an expert in the thing." And that's what we're trying to bring to the industry for sure. [00:48:37] Jason: So this brings a level of expertise that the business owner, the property manager, the maintenance coordinator, and certainly the VA's just would not possess. [00:48:48] David: You're talking 15 years, over 500,000 work orders worth of data points, learning and understanding from commercial, multifamily, single family across the board, best practices. [00:49:01] And it's for somebody who wants to imagine now a person can start a property management company tomorrow onboard Tulu. And they're immediately a veteran in the maintenance industry. Immediately. [00:49:12] Yeah. No learning curve. You're operating and executing as the best maintenance coordinator in the industry starting tomorrow. [00:49:19] That's amazing. Yeah. Yeah. Yeah. It's really cool. Really cool. [00:49:22] Jason: This is really, it's really wild. So now my brain's like, how can I get experts, how can I clone Tulu, but make an operator version of Tulu for running a property managed business. Or I can make it. [00:49:32] David: Yeah there's, there, there are offshoots on this. [00:49:34] I would have to say, and I do want to tell anybody that in this space that we always say that property managers are safe because you know what the property managers do a great job of doing. You guys do a really good job at building relationships and creating value in your local markets. [00:49:46] Right. Focus on that. Don't get pulled into maintenance, right? Maintenance and that stuff can be automated. There are best practices. Don't struggle to have to be an expert there. Show your value and the resources and tools that you have. Lower your overhead. Produce better results. Be at networking events. [00:50:03] Shake more hands. Talk to more people. Sell more homes. Add more doors. Shine where you shine. Brokers shine when they're out in front of people shaking hands and having expensive salads over a nice glass of chardonnay and closing deals, right? Let us flip the toilets and do it well for you. [00:50:18] That's what I say. [00:50:19] Jason: Awesome. Okay, cool. David, if they're interested in Getting started. How do they find out about Tulu? You can go right to our website [00:50:26] David: at trytulu. com. And if anybody wants to email me personally, david.norman.trytulu.Com. I'll connect you with our sales team and set you up on a personal demo. I'll walk you through it. I promise I won't bring so much energy. I'm an energy guy. It's just my calling this space to be in the maintenance and I love to doing what we're doing and seeing owners go "yes!" Seeing property managers go "yes!" And we're not trying to replace anybody. We're just trying to help people honor their fiduciary duty to their owners. And that's my mission. That's what I'm driven by. [00:50:56] Jason: Yeah. Fantastic. So try Tulu, T U L U. Dot com. [00:51:02] David: Yeah. [00:51:02] Jason: All right. Try it out. [00:51:04] David: All right. [00:51:04] Jason: David, thanks for coming on the DoorGrowShow podcast. Appreciate you. [00:51:08] David: Yeah. Yeah. Thank you, Jason. Always great. Looking forward to the show. Until next time. [00:51:11] Jason: All right. So if you are a property management entrepreneur and you are wanting to add doors, you get maintenance off loaded, off your plate, and you want to focus on growth and figuring out how to get more doors, you want to join the DoorGrow mastermind, our growth accelerator is all about that. [00:51:29] We are really good at optimizing businesses for growth using our rapid revamp class, where we clean up quickly, all of the front end stuff that is causing you to like kill trust and leaking trust and preventing deals. And then we give you the right strategies. We've got at least seven different growth engines that we can help build into your business that you can stack that will feed you unlimited leads without having to spend any money on advertising or marketing expense. [00:51:55] You just need people and it actually decreases the amount of time those people will spend If they're following working on the warm leads and the stuff that we would get you to do instead of cold leads, which take a lot more time. So we also have our super system level of our mastermind. This is where we're focused on ops, operations, helping your operator. That key person that's going to run the entire business for you, Mr. or Mrs. Visionary Entrepreneur, and they will help take your business to the next level. We can coach and support your operators, your BDMs, your salespeople, or you, the business owner to make this business infinitely scalable so that you can go to the next level and add a lot of doors. So reach out to us, let us assess your situation and see if we can help. [00:52
The 16:9 PODCAST IS SPONSORED BY SCREENFEED – DIGITAL SIGNAGE CONTENT The health care sector has long struck me as having environments and dynamics that would benefit a lot from using digital signage technology. Accurate information is critically important, and things change quickly and often - in ways that make paper and dry erase marker board solutions seem antiquated and silly. But it is a tough sector to work in and crack - because of the layers of bureaucracy, tight regulations and the simple reality that medical facilities go up over several years, not months. People often talk about the digital signage solution sales cycle being something like 18 months on average. With healthcare, it can be double or triple that. The other challenge is that it is highly specialized and there are well-established companies referred to as patient engagement providers. So any digital signage software or solutions company thinking about going after health care business will be competing with companies that already know the industry and its technologies, like medical records, and have very established ties. LG has been active in the healthcare sector for decades, and sells specific displays and a platform used by patient engagement providers that the electronics giant has as business partners. I had a really insightful chat with Tom Mottlau, LG's director of healthcare sales. Subscribe from wherever you pick up new podcasts. TRANSCRIPT David: Tom, thank you for joining me. Can you give me a rundown of what your role is at LG? Tom Mottlau: I am the Director of Healthcare Sales for LG. I've been in this role for some time now; I joined the company in 1999 and have been selling quite a bit into the patient room for some time. David: Has most of your focus through those years all been on healthcare? Tom Mottlau: Well, actually, when I started, I was a trainer when we were going through the digital rollout when we were bringing high-definition television into living rooms. My house was actually the beta site for WXIA for a time there until we got our language codes right. But soon after, I moved over to the commercial side and healthcare, around 2001-2002. David: Oh, wow. So yeah, you've been at it a long time then. Much has changed! Tom Mottlau: Yes, sir. David: And I guess in some cases, nothing has changed. Tom Mottlau: Yep. David: Healthcare is an interesting vertical market for me because it seems so opportune, but I tend to think it's both terrifying and very grinding in that they're quite often very large institutions, sometimes government-associated or university-associated, and very few things happen quickly. Is that a fair assessment? Tom Mottlau: Absolutely. There's a lot of oversight in the patient room. It's a very litigation-rich environment, and so there's a bit of bureaucracy to cut through to make sure that you're bringing in something that's both safe for patients and protects their privacy but also performs a useful function. David: I guess the other big challenge is the build-time. You can get word of an opportunity for a medical center that's going up in a particular city, and realistically, it's probably 5-7 years out before it actually opens its doors, right? Tom Mottlau: That's true. Not only that but very often, capital projects go through a gestation period that can be a year or two from the time you actually start talking about the opportunity. David: And when it comes to patient engagement displays and related displays around the patient care areas, is that something that engineers and architects scheme in early on, or is it something that we start talking about 3-4 years into the design and build process? Tom Mottlau: Well, the part that's schemed in is often what size displays we're going to need. So, for example, if somebody is looking to deploy maybe a two-screen approach or a large-format approach, that's the type of thing that is discussed early on, but then when they come up on trying to decide between the patient engagement providers in the market, they do their full assessment at that time because things evolve and also needs change in that whole period that may take a couple of years you may go as we did from an environment that absolutely wanted no cameras to an environment that kind of wanted cameras after COVID. You know, so things change. So they're constantly having those discussions. David: Why switch to wanting cameras because of COVID? Tom Mottlau: Really, because the hospitals were locked down. You couldn't go in and see your loved one. There was a thought that if we could limit the in-person contact, maybe we could save lives, and so there was a lot of thought around using technology to overcome the challenges of contagion, and so there was even funding dedicated towards it and a number of companies focused on it David: That's interesting because I wondered whether, in the healthcare sector, business opportunities just flat dried up because the organizations were so focused on dealing with COVID or whether it actually opened up new opportunities or diverted budgets to things that maybe weren't thought about before, like video? Tom Mottlau: True, I mean, the video focus was definitely because of COVID, but then again, you had facilities where all of their outpatient procedures had dried up. So they were strained from a budget standpoint, and so they had to be very picky about where they spent their dollars. Now the equipment is in the patient room, but at the end of the day, we're still going to get the same flow of patients. People don't choose when to be sick. If it's gonna be either the same or higher because of those with COVID, so they still need to supply those rooms with displays, even though they were going through a crisis, they still had to budget and still had to go through their day-to-day buying of that product. David: Is this a specialty application and solution as opposed to something that a more generic digital signage, proAV company could offer? My gut tells me that in order to be successful, you really need to know the healthcare environment. You can't just say, we've got these screens, we've got the software, what do you need? Tom Mottlau: Yeah, that's a very good question. Everything we do on our end is driven by VOC (voice of customer). We partner with the top patient engagement providers in the country. There are a handful that are what we call tier one. We actually provide them with products that they vet out before we go into production. We go to them to ask them, what do you need? What products do you need for that patient? I mean, and that's where the patient engagement boards, the idea of patient engagement boards came from was we had to provide them a display that met, at the time, 60065 UL, which is now 62368-1, so that they can meet NFPA 99 fire code. David: I love it when you talk dirty. Tom Mottlau: Yeah, there's a lot of stuff out there that. David: What the hell is he talking about? Tom Mottlau: Yeah, I know enough to be dangerous. Basically, what it boils down to is we want to make sure that our products are vetted by a third party. UL is considered a respectable testing agency, and that's why you find most electronics are vetted by them and so they test them in the patient room. It's a high-oxygen environment with folks who are debilitated and life-sustaining equipment so the product has to be tested. We knew that we had to provide a product for our SIs that would meet those specs as well as other specs that they had like they wanted something that could be POE-powered because it takes an act of Congress to add a 110-amp outlet to a patient room. It's just a lot of bureaucracy for that. So we decided to roll out two units: one of 32, which is POE, and one that's 43. Taking all those things I just mentioned into consideration, as well as things like lighting. Folks didn't want a big night light so we had to spend a little extra attention on the ambient light sensor and that type of thing. This is our first offering. David: So for doofuses like me who don't spend a lot of time thinking about underwriter lab, certifications, and so on, just about any monitor, well, I assume any monitor that is marketed by credible companies in North America is UL-certified, but these are different grades of UL, I'm guessing? Tom Mottlau: They are. Going back in the day of CRTs, if you take it all the way back then when you put a product into a room that has a high-powered cathode ray tube and there's oxygen floating around, safety is always of concern. So, going way back, probably driven by product liability and that type of thing. We all wanted to produce a safe product, and that's why we turned to those companies. The way that works is we design a product, we throw it over to them, and they come back and say, okay, this is great, but you got to change this, and this could be anything. And then we go back and forth until we arrive at a product that's safe for that environment, with that low level of oxygen, with everything else into consideration in that room. David: Is it different when you get out into the hallways and the nursing stations and so on? Do you still need that level, like within a certain proximity of oxygen or other gases, do you need to have that? Tom Mottlau: It depends on the facility's tolerance because there is no federal law per se, and it could vary based on how they feel about it. I know that Florida tends to be very strict, but as a company, we had to find a place to draw that line, like where can we be safe and provide general products and where can we provide something that specialized? And that's usually oxygenated patient room is usually the guideline. If there's oxygen in the walls and that type of thing, that's usually the guideline and the use of a pillow speaker. Outside into the hallways, not so much, but it depends on the facility. We just lay out the facts and let them decide. We sell both. David: Is it a big additional cost to have that additional protection or whatever you want to call it, the engineering aspects? Tom Mottlau: Yes. David: So it's not like 10 percent more; it can be quite a bit more? Tom Mottlau: I'm not sure of the percentage, but there's a noticeable amount. Keep in mind it's typically not just achieving those ratings; it's some of the other design aspects that go into it. I mean, the fact that you have pillow speaker circuitry to begin with, there's a cost basis for that. There's a cost basis for maintaining an installer menu of 117+ items. There's a cost basis for maintaining a Pro:Centric webOS platform. You do tend to find it because of those things, not just any one of them, but because of all of them collectively, yeah, the cost is higher. I would also say that the warranties tend to be more encompassing. It's not like you have to drive it down to Ted's TV. Somebody comes and actually remedies on-site. So yeah, all of that carries a cost basis. That's why you're paying for that value. David: You mentioned that you sell or partner with patient engagement providers. Could you describe what those companies do and offer? Tom Mottlau: Yeah, and there's a number of them. Really, just to be objective, I'll give you some of the tier ones, the ones that have taken our product over the years and tested and provided back, and the ones that have participated in our development summit. I'll touch on that in a moment after this. So companies like Aceso, you have Uniguest who were part of TVR who offers the pCare solutions. You have Get Well, Sonify, those types of companies; they've been at this for years, and as I mentioned, we have a development summit where we, for years, have piled these guys on a plane. The CTOs went off to Korea and the way I describe it is we all come into a room, and I say, we're about to enter Festivus. We want you to tell us all the ways we've disappointed you with our platform, and we sit in that room, we get tomatoes thrown at us, and then we make changes to the platform to accommodate what they need. And then that way, they're confident that they're deploying a product that we've done all we can to improve the functionality of their patient engagement systems. After all, we're a platform provider, which is what we are. David: When you define patient engagement, what would be the technology mix that you would typically find in a modernized or newly opened patient care area? Tom Mottlau: So that would be going back years ago. I guess it started more with patient education. If Mrs. Jones is having a procedure on her kidney, they want her to be educated on what she can eat or not eat, so they found a way to bring that patient education to the patient room over the TVs. But then they also wanted to confirm she watched it, and then it went on from there. It's not only the entertainment, but it's also things that help improve workflows, maybe even the filling out of surveys and whatnot on the platform, Being able to order your culinary, just knowing who your doctor is, questions, educational videos, all of those things and then link up with EMR. David: What's that? Tom Mottlau: Electronic medical records. Over the years, healthcare has wanted to move away from paper, to put it very simply. They didn't want somebody's vitals in different aspects of their health stored on a hand-scribbled note in several different doctor's offices. So there's been an effort to create electronic medical records, and now that has kind of been something that our patient engagement providers have tied into those solutions into the group. David: So, is the hub, so to speak, the visual hub in a patient care room just a TV, or is there other display technology in there, almost like a status board that tells them who their primary provider is and all the other stuff? Tom Mottlau: So it started as the smart TV, the Pro:Centric webOS smart TV. But then, as time went on, we kept getting those requests for, say, a vertically mounted solution, where somebody can actually walk in the room, see who their doctor is, see who their nurse is, maybe the physician can come in and understand certain vitals of the patient, and so that's why we developed those patient engagement boards that separately. They started out as non-touch upon request, we went with the consensus, and the consensus was we really need controlled information. We don't want to; we've had enough issues with dry-erase boards. We want something where there's more control in entering that information, and interesting enough, we're now getting the opposite demand. We're getting demand now to incorporate touch on the future models, and that's how things start. As you know, to your point earlier, folks are initially hesitant to breach any type of rules with all the bureaucracy. Now, once they cut through all that and feel comfortable with a start, they're willing to explore more technologies within those rooms. That's why we always start out with one, and then over the years, it evolves. David: I assume that there's a bit of a battle, but it takes some work to get at least some of the medical care facilities to budget and approve these patient engagement displays or status displays just because there's an additional cost. It's different from the way they've always done things, and it involves integration with, as you said, the EMR records and all that stuff. So, is there a lot of work to talk them into it? Tom Mottlau: Well, you have to look at us like consultants, where we avoid just talking folks into things. Really, what it has to do with is going back to VOC, voice of the customer, the way we were doing this years ago or just re-upping until these boards were launched was to provide a larger format, and ESIs were dividing up the screen. That was the way we always recommended. But then, once we started getting that VOC, they were coming to us saying, well, we need to get these other displays in the room. You know, certain facilities were saying, Hey, we absolutely need this, and we were saying, well, we don't want to put something that's not rated for that room. Then we realized we had to really start developing a product that suits that app, that environment, and so our job is to make folks aware of what we have and let them decide which path they're going to take because, to be honest, there are two different ways of approaching it. You can use one screen of 75”, divide it, or have two screens like Moffitt did. Moffitt added the patient engagement boards, which is what they wanted. David: I have the benefit, at least so far, of being kind of at retirement age and spending very little time, thank God, in any kind of patient care facility. Maybe that'll change. Hopefully not. But when I have, I've still seen dry-erase marker boards at the nursing stations, in rooms, in hallways, and everywhere else. Why is it still like that? Why haven't they cut over? Is it still the prevalent way of doing things, or are you seeing quite a bit of adoption of these technologies? Tom Mottlau: Well, it is, I would say, just because we're very early in all this. That is the prevalent way, no doubt. It's really those tech-forward, future-forward facilities that are wanting to kind of go beyond that and not only that, there's a lot of facilities that want to bring all that in and, maybe just the nature of that facility is a lot more conservative, and we have to respect that. Because ultimately they're having to maintain it. We wouldn't want to give somebody something that they can't maintain or not have the budget for. I mean, at the end of the day, they're going to come back to us, and whether or not they trust us is going to be based upon whether we advise them correctly or incorrectly. If we advise them incorrectly, they're not going to trust us. They're not going to buy from us ten years from now. David: For your business partners, the companies that are developing patient engagement solutions, how difficult is it to work with their patient record systems, building ops systems, and so on to make these dynamic displays truly dynamic? Is it a big chore, or is there enough commonality that they can make that happen relatively quickly? Tom Mottlau: That's a very good question, and that's exactly why we're very careful about who's tier one and who we may advise folks to approach. Those companies I mentioned earlier are very skilled at what they do, and so they're taking our product as one piece of an entire system that involves many other components, and I have full faith in their ability to do that because we sit in on those meetings. Once a year, we hear feedback, we hear positive feedback from facilities. We see it but it really couldn't happen without those partners, I would say. We made that choice years ago to be that platform provider that supports those partners and doesn't compete with them. In hindsight, I think that was a great choice because it provides more options to the market utilizing our platform. David: Well, and being sector experts in everything that LG tries to touch would be nightmarish. If you're far better off, I suspect I will be with partners who wake up in the morning thinking about that stuff. Tom Mottlau: Yeah. I mean, we know our core competencies. We're never going to bite off more than we can chew. Now granted, we understand more and more these days, there's a lot of development supporting things like telehealth, patient engagement, EMR and whatnot. But we're also going to make sure that at the end of the day, we're tying in the right folks to provide the best solution we can to patients. David: How much discussion has to happen around network security and operating system security? I mean, if you're running these on smart TVs, they're then running web OS, which is probably to the medical facility's I.T. team or not terribly familiar to them. Tom Mottlau: Yeah, that's a very good question. Facilities, hospitals, and anything that involves network security bring them an acute case of indigestion, more so than other areas in the business world. So these folks, a lot of times, there's exhaustive paperwork whenever you have something that links up to the internet or something that's going to open up those vulnerabilities. So, Pro:Centric webOS is actually a walled garden. It is not something that is easily hacked when you have a walled garden approach and something that's controlled with a local server. That's why we took that approach. Now, we can offer them a VPN if there is something that they want to do externally, but these systems were decided upon years ago and built with security in mind because we knew we were going to deploy in very sensitive commercial environments. And so not so much a concern. You don't need to pull our TV out and link up with some foreign server as you might with a laptop that you buy that demands updates. It's not anything like that because, of course, that would open us up to vulnerability. So we don't take that approach. It's typically a local server and there is the ability to do some control of the server if you want a VPN, but other than that, there is no access. David: Do you touch on other areas of what we would know as digital signage within a medical facility? Like I'm thinking of wayfinding, directories, donor recognition, video walls, and those sorts of things. Tom Mottlau: Absolutely. I mean, we see everything. Wayfinding needs have been for years and years now, and those are only expanding. and we start to see some that require outdoor displays for wave finding. So we do have solutions for that. Beyond displays, we actually have robots now that we're testing in medical facilities and have had a couple of certifications on some of those. David: What would they do? Tom Mottlau: Well, the robots would be used primarily to deliver some type of nonsensitive product. I know there's some work down the road, or let's just say there's some demand for medication delivery. But obviously, LG's approach to any demand like that is to vet it out and make sure we're designing it properly. Then, we can make announcements later on about that type of stuff. For now, we're taking those same robots that we're currently using, say, in the hotel industry, and we're getting demand for that type of technology to be used in a medical facility. David: So surgical masks or some sort of cleaning solutions or whatever that need to be brought up to a certain area, you could send in orderly, but staffing may be tight and so you get a robot to do it. Tom Mottlau: Absolutely. And that is a very liquid situation. There's a lot of focus and a lot of development. I'm sure there'll be a lot to announce on that front, but it's all very fluid, and it's all finding its way into that environment with our company. All these future-forward needs, not only with the robots but EV chargers for the vast amount of electric vehicles, we find ourselves involved in discussions on all these fronts with our medical facilities these days. David: It's interesting. Obviously, AI is going to have a role in all kinds of aspects of medical research and diagnosis and all those super important things. But I suspect there's probably a role as well, right down at the lobby level of a hospital, where somebody comes in where English isn't their first language, and they need to find the oncology clinic or whatever, and there's no translator available. If you can use AI to guide them, that would be very helpful and powerful. Tom Mottlau: Let me write that down as a product idea. Actually, AI is something that is discussed in the company, I would say, on a weekly basis, and again, I'm sure there'll be plenty to showcase in the future. But yes, I'd say we have a good head start in that area that we're exploring different use cases in the medical environment. David: It's interesting. I write about digital signage every day and look at emerging markets, and I've been saying that healthcare seems like a greenfield opportunity for a lot of companies, but based on this conversation, I would say it is, and it isn't because if you are a more generalized digital signage software platform, yes, you could theoretically do a lot of what's required, but there's so much insight and experience and business ties that you really need to compete with these patient engagement providers, and I think it would be awfully tough for just a more generalized company to crack, wouldn't it? Tom Mottlau: I believe so. I mean, we've seen many come and go. You know, we have certain terms internally, like the medicine show, Wizard of Oz. there's a lot out there; you really just have to vet them out to see who's legit and who isn't, and I'm sure there are some perfectly legitimate companies that we haven't worked with yet, probably in areas outside of patient education we, we have these discussions every week, and it's, it can be difficult because there are companies that you might not have heard of and you're always trying to assess, how valid is this? And, yeah, that's a tough one. David: Last question. Is there a next big thing that you expect to emerge with patient engagement over the next couple of years, two-three years that you can talk about? Tom Mottlau: You hit the nail on the head, AI. But you know, keep in mind that's something in relative terms. It has been relatively just the last few years, and it has been something that's come up a lot. It seems there's a five-year span where something is a focus going way back, it was going from analog to digital. When I first came here, it was going from wood-clad CRT televisions to flat panels, and now we have OLED right in front of us. So yeah, there's, there's a lot of progression in this market. And I would say AI is one of them, and Telehealth is another; I guess we'll find out for sure which one sticks that always happens that way, but we don't ignore them. David: Yeah, certainly, I think AI is one of those foundational things. It's kind of like networking. It's going to be fundamental. It's not a passing fancy or something that'll be used for five years and then move on to something else. Tom Mottlau: Yeah, true. But then again, also, it's kind of like when everybody was talking about, okay, we're not going to pull RF cable that went on for years and years because they were all going to pull CAT5, and then next thing, you know, they're saying, well, we have to go back and add CAT5 because they got ahead of themselves, right? So I think the challenge for any company is nobody wants to develop the next Betamax. Everybody wants to develop something that's going to be longstanding and useful, and so it's incumbent upon us to vet out those different solutions and actually see real practical ways of using it in the patient room and trusting our partners and watching them grow. A lot of times, they're the test beds, and so that's the benefit of our approach. By providing that platform and supporting those partners, we get to see which tree is really going to take off. David: Betamax, you just showed your age. Tom Mottlau: Yes, sir. That made eight tracks, right? David: For the kiddies listening, that's VCRs. All right. Thanks, Tom. That was terrific. Tom Mottlau: Thank you very much, sir. David: Nice to speak with you.
From a sales mindset connection standpoint, market domination starts with the idea that it's possible. And if you're not sure that it's possible, ask yourself this, your very best clients. When they think about who to go to for the products and services you offer, who do they think about? Obviously, if they're your very best clients, it's you. They're thinking about you. So you've already achieved a level of mindset or market domination with your very best clients. That demonstrates that it can be done. So then it's a matter of saying, okay, well, how can we do this with other people? David: Hi, and welcome to the podcast. In today's episode, co host Bianca Istvan and I will be discussing the topic of the sales mindset connection. Welcome Bianca. Bianca: Thank you so much, David. Very happy to be here with you. And I'm just curious, what do you say to people who think mindset is woo-woo? David: Yeah, there are a lot of people who feel that way. To some extent, I've been one of them. And in fact, Bianca is our newest addition to our team here at Top Secrets. She and I actually met in a clubhouse group years ago, and we were talking about the idea of mindset there. And I said, well, I'm not really all that much into mindset. Most of my training is about the specifics of what to do. And Bianca said to me, well, I don't think so. Everything you talk about is pretty much mindset related. And I didn't realize it at the time, but it really kind of opened my eyes to the fact that, yeah, a lot of what we do, even though it's not geared to be about mindset, is about mindset. So the whole woo-woo thing really kind of touches a nerve with me because I felt that way in the past. It's like, oh, mindset, well, no, you just need to do the stuff. But the reality of the situation is that if you don't have the right mindset, if you're not willing to take the necessary actions, then you're not going to be able to get there. So it seems to me there's always a mindset element that has to be there, whether or not you really want to think about it. Bianca: That's so true. And you know, for me, it's great to see that. I mean, you have this ability to connect with people on another level and that's, you know, congrats to you for having this mindset. Fantastic. David: Well, thanks. And so do you. And that's actually how we started communicating was in this clubhouse group and so when we connected again recently, I just thought it would be so great to have you on our team because I know that that's an important aspect of what you do and your communication with people has been great. So I'm really glad we've been able to put this together. But for most salespeople, it seems to me that mindset may be in the back of their mind. They may be thinking about it, but for the most part, they're probably just thinking, How do I make this next sale? How do I make this next contact? And so while I don't think you have to spend a ton of time thinking about mindset every day, just recognize that if you don't at least have it going on somewhere in the back of your mind, you're probably not going to do the work you have to do in order to get it started. Bianca: Yeah, that's so right. And I know you talk a lot about the first contact and what that means, but please tell me, you know, why do you think the mindset is so important when having the first contact with your potential client? David: Well, first contact is difficult for a lot of people, and a lot of people think of first contact as just being cold calls. And that's one example of first contact. And in those situations, mindset is really hard for some people. J just the idea of the fear of picking up the phone is an issue for people, which is all a mindset thing. If they can't get past that, if they can't Overcome the mental blocks that are involved in having to pick up the phone and initiate contact with a stranger, then it's definitely going to impact them.
Staying in touch with prospects is required, and creating value in your communication is certainly something that will keep you from being a pest in sales. Because if what you're saying to them is going to help them to accomplish a result, they'll be a lot more likely to pay attention to it. But ultimately it's required. You can't just skip it. David: Hi, and welcome to the podcast. In today's episode, co host Bianca Istvan and I will be discussing the topic of staying in touch without being a pest. Welcome back, Bianca. Bianca: Thanks so much, David. And wow, such a topic. Please tell us, why is it so critical to stay in touch? David: Well, I think for anyone who is in sales, you recognize that you're probably not going to sell something in one call. You're going to need to have multiple points of outreach, multiple contacts with a prospect or client before you're going to be able to make that first sale, let alone the second or third or fourth. So staying in touch is obviously a critical part. of the process, being able to reach out to them on an ongoing basis without coming across as annoying or without coming across as what most people would describe in sales as a pest. I think this is something that more salespeople tend to think of than prospects or clients. I mean, unless you're really annoying, right? In which case they may think you're a pest. What I've heard from a lot of salespeople is this exact thing. How do I Remain in touch with the people that I need to be in touch with without being a pest. And so again, I think that's why this topic is such an important one. Bianca: Now that's, that's absolutely so right. And that leads me to my next question, like what do you think people mean when talking about being a pest? David: I think the concern is what's going on in their head, what they're thinking about. If I'm a salesperson and I'm going into any interaction with another human being with the idea that I want them to buy something. If that's my motivation, then it's likely I may be thinking in the back of my mind, oh, I hope I'm not being a pest about this, But, If you can make it about the person that you're interacting with, then it's totally different because now you're not just there to sell them a product. You're there to try to help them with whatever it is that they're trying to do. So if you're selling custom imprinted promotional products, you're not just selling them something that has their logo on it, you're selling them awareness or you're selling them more sales in their business, or you're selling them the idea of being in front of more people. So when you think of it in terms of what it actually delivers for them, it makes it a lot better for you. Bianca: Well, that's so true. And yes, absolutely right. But what about, you know, because this is a sensitive topic as well. And what if you're afraid to make those calls? What if you're afraid to send that first message or you just think you can do it? David: That goes back to mindset, which I know we've talked about in previous podcasts as well. But I think if you're in sales, you recognize that you have to do it, right? There's no alternative. You have to be able to reach out. Now, it doesn't have to be a phone call. It doesn't have to be a networking event. It doesn't have to be an ad on social media. It can be lots of different things. So I think if you recognize that there are different things that you can do, and you can find out something that is more comfortable for you, that will certainly help. If you also think about the concept that we've talked about in the past about creating value in your communication, that is certainly something that will keep you from being a pest, because if what you're saying to them is going to help them to accomplish a result. They're going to be a lot more likely to pay attention to it, but ultimately it's required. You can't just skip it.
Once you outperform your competitors in terms of the way that you do things, the way that you make your presentations, the way that you interact with your clients, the way that you follow up and service them -- when you're already outperforming your other competitors in that area, then the only thing you can really do is focus on how can I outperform my previous performance? David: Hi, and welcome to the podcast. In today's episode, co host Bianca Istvan and I will be discussing the topic of outperforming your top competitor. Welcome back, Bianca. Bianca: Thanks so much, David. So happy to be here with you. And what are we talking about? And what does that mean to outperform your top competitor? David: Yeah, great question. For a lot of people, we kind of feel like we need to do it. We want to do it, but we're not quite sure how or what or even who they are. So, what it means to me is that we are doing a better job at the things that need to be done to be able to deliver a positive result for our clients. So outperforming a top competitor means that we're doing it better. We're doing it differently. And we're able to convey that to people in a way where they understand it. They understand that there's a difference between the way that we deliver things and the way that other people deliver things. Bianca: Wow, that's absolutely fantastic. And, you know, thanks for bringing so much awareness because yeah, it's a lot of confusion around this topic. And you mentioned something about who our competitor is. So how do you even determine who that is? David: For a lot of people, when you're out there in the market and you're talking to people about buying your products and services, they'll say, Oh, well, I deal with this person or I deal with that person. So that's a good way to find out who your top competitors are. Because if you keep hearing the same names over and over again, that's a pretty good indication that they're a top competitor. Also, very often when we're starting out in a market, we may be aware of sort of the big dog in the market, the person who is already recognized as a leader. So, you may just know when you're going in the person who does the most advertising or who seems to be the best known in the marketplace. That's also a good way to determine, okay, this might be one of my top competitors. Ultimately, we need to decide who we see as our top competitors. But that's really just the starting point. Because I think that people make a big mistake when they focus on outperforming other people as their top competitors versus getting to the point where they ultimately have to outperform themselves, right? So I think ultimately we want to get to a point where we are our own top competitor that we're trying to outperform. Because once you've outperformed your other competitors in terms of the way that you do things, the way that you make your presentations, the way that you interact with your clients, the way that you follow up and service them. When you're already outperforming your other competitors in that area, then the only thing you can really do is focus on how can I outperform my previous performance? Bianca: Wow, that's absolutely a great answer. And I heard there a lot of hows. So how do you really outperform your top competitor? David: Well, a lot of it has to do with determining what is it that we're saying to people. How are we saying it? How often are we saying it? So it really boils down to a lot of our interactions with our clients. How often we're communicating with them, the very specific things that we're saying. The way that we're performing. Are we able to deliver what they're looking for in a timely manner? Can we provide better quality products than our competitors? So a lot of it is really looking at the specifics of the job itself that needs to get done, and the way that we do those things. So,
The 16:9 PODCAST IS SPONSORED BY SCREENFEED – DIGITAL SIGNAGE CONTENT There is a lot of glass in public and commercial spaces, and the pro AV and digital signage industries have been applying all kinds of technologies to turn things like windows and dividers into part-time or full-time displays. In most cases, those jobs have come with compromises. There are films that might start curling at the corners, or discolouring. Mesh systems that look pretty good from the front, but terrible from the rear. And most recently, super-thin foils that need to be adhered to one side of glass panes. So what if the LED display was actually part of architectural-grade glass? That's the premise of a company called Clear Motion Glass - a Pennsylvania-based technology start-up that comes at the business from the angle of commercial glass. Clear Motion is a spin-out from William Penn Performance Glass, which has for many years been making and supplying laminated and tempered glass for commercial buildings. Unlike other products on the market, Clear Motion's LED displays are sandwiched inside sheets of laminated safety glass - so when a building goes up or is being retrofitted, the glass panels that go in are also active, highly-transparent displays. I had a good chat with Todd Stahl, a glass industry veteran who runs both the established and start-up businesses. Subscribe from wherever you pick up new podcasts. TRANSCRIPT David: Todd, thank you for joining me. Todd Stahl: Hey Dave. Yeah, I appreciate you having us on. It's going to be a pleasure to talk about some LED glass with you. David: Yeah, tell me about the company. I saw you guys at DSE back in December. You were busy almost the whole time. So I didn't really have the time or the chance to have any kind of a detailed LED conversation, but I know that the company has not been around that long, but it's grown out of a pretty well-established “performance glass company.” Todd Stahl: Yeah. A little bit about the history there. So, at Clear Motion Glass, we're making the LEDs inside of the glass. I came across the LED glass around June of 2022, so I've had it for just about two years. The parent company is William Penn Performance Glass, and that's another company I started in 2011. We deal with high-end architectural Glass. So, a cliffnote version: We go to the top architects in the country, and they're like, “Hey, who are you designing for?” And they'll say to us, “Hey, we want some really cool glass to go in the elevators for the Empire State Building.” So we got into the architectural space with glass, and actually, we'll William Penn, who was just voted one of the top 50 glass producers in North of North America. So something that we're definitely pretty proud of around here. Then I came across LED glass around 2022, I thought it was one of the coolest things I've ever seen put inside a glass, and I wanted to be a part of it. David: So when you say you came across it, what do you mean by that? Todd Stahl: So, there's another product in glass, another glass product that's been around, I'm going to say right around since 2000. It's a glass that goes frosted to clear from the turn of a switch, Switchable glass. So there's a company called Smart Film Blinds, and they were an applied film company that would actually take that, what we would call switch glass, but they just took the film and applied it to existing glass, and it was owned by Alan and Tracy Ackerman, and then they had this connection with LED Glass they weren't quite sure what to do with it. They knew it was really cool. And it had a chance to be really something big, but they were more of a film company, and then he and I got introduced, through a need that we had for some smart film, the switchable film, and then eventually we had a partnership for a while. Then we decided basically that I'll stick with the glass part, what I'm best at, and he'll stick with the film part, which was what they were best with. But that's how I got introduced to it, right around two years ago. David: What you're marketing now is Clear Motion Glass. Is that your own product or are you reselling somebody else's manufactured product? Todd Stahl: We have partners overseas, such as a company called Filmbase. That's where we get the actual LED grid or LED mesh. We bring that to my facility in York, Pennsylvania, which is in the south-central Pennsylvania area, we're 20 minutes south of Hershey, close to Harrisburg, and then we actually fabricate everything as a finished panel here. So we'll make the glass, we'll get the interlayer components. We have a laminating machine that actually works by pulling a vacuum and heating it up to certain temperatures. After that, it comes out, and we have a clear LED glass display. David: So laminated glass is something that's been around forever. So this is just basically sandwiching the mesh in between sheets of laminated glass? Todd Stahl: Yeah, absolutely. We're definitely making a sandwich component. We start with a piece of glass, say that's your component number one. Then, we start with the inner layer materials. In a case like this, we use a couple of different techniques, but we use EVA, which is ethyl vinyl acetate. Then we'll actually put the LED mesh grid on top of that, then we put another piece of EVA, then we go with the finished component of the sandwich, another piece of glass, and we stick them in an oven, we run a certain cycle, and about four hours later, we have a laminated piece of glass, exactly how you described. It's a sandwich makeup for sure. David: Was there a lot of R&D work involved in it? Because I would imagine if you're putting an LED mesh inside of an oven, then going to a very high temperature and all that, I'm thinking if I didn't know much about this stuff, I'd be wondering, what's all that heat going to do to this thing? Todd Stahl: Yeah. You know, we have to make sure that it can withstand certain temperatures, obviously, and if you don't heat, and just in general, if you don't get laminated glass hot enough, it doesn't bond, it does not bond correctly. What you have to achieve is cross-linking and cross-linking is basically the interlayer material to the glass itself, and that happens at a temperature of around 110 degrees Celsius, so it's not getting hot enough to cook a Turkey in there, so we're not really dealing with extremes. I think a lot of people might think when you're actually making glass out of what we call a batch, you know that's where the glass is heated up to 2000 degrees and you're really dealing with some extreme temperatures. It's not quite the same extremes at all when you're dealing with laminated glass. David: So tell me what performance glass is, and what high-end performance glass is because I don't know the glass world terribly well. Todd Stahl: Yeah, sure. So, so what William Penn performance glass is the performance name kind of all started because our glass looks great and it, but it's an all safety rated glass. So that's kind of the performance part of the glass. So, if you're looking at our glass, say that's used for glass handrails, that's a very specific glass that's chosen to withstand the certain load requirements of a structural application, and typically most of our handrails are tempered, and laminated glass. So there are two ways on this planet to make a piece of glass safety-rated. You either temper it or you laminate it. We happen to do both of those things in a lot of our projects, and it's kind of funny like obviously safety-rated glass is strong, but the only thing that's really taken into consideration when you're referring to safety glass are you automatically assume it's going to break and what happens when it breaks, right? So with tempered glass, you put a lot of stress on the glass itself through a heating and cooling process, and whenever that glass breaks, it breaks into small panels that would not be able to potentially cause a life-threatening wound, and then you have the exact opposite with laminated where if a rock hits your car, if that's ever happened to you the rock doesn't come through and the pieces of the glass, the shards don't come through, they stay together. So you got those two things to the requirements when you're thinking about what is safety rated glass. David: With the Clear Motion product, is it an indoor product only, an outdoor facing product, or what are the use cases? Todd Stahl: So what's really cool about our LED glass is that almost wherever you're using architectural glass right now, you can now use our LED displays. So it can be used in exterior applications, a building facade, glass canopies, and railings that may be exterior. All of the components are kind of encapsulated inside that glass, and that glass is making a nice, really safe, cozy home for the LED display inside of it. David: And it's bright enough that it can be on a glass curtain wall like an auto dealer? Todd Stahl: Oh, yeah, absolutely. I think that's one of the really cool applications for it. In fact, you had mentioned at the trade show and boy, were we busy? I think I was just talking about this yesterday. We scanned around 450 people in that short show. Our voices were a little strained by the end of the evening. So, the brightness of our display at the show, Dave, was only running around 4%, and I thought that was one of the more amazing things about the product because it was still kind of bright at 4%. Later we started bringing that up because a few potential clients wanted to see it at 50-60% brightness. So yeah, you can totally use this as an exterior sign and get whatever brightness you need. I think some of the products are well over 10,000 nits depending on the needs, and I think one actually lasted up to 15,000 nits, so plenty bright for the outside. David: Yeah, once you get to 3,500, you're good. Todd Stahl: Yeah, exactly. David: On transparency. I see on your website that it says there is up to 90 percent transparency. Todd Stahl: Yeah, so when you get to some of the pixel pitches that are viewed from say, a distance of around a hundred feet, I think the pixel pitch at a 20, I believe that one may allow up to 90 percent of light to come through. It's really cool. I mean, you have this really great display, and then you're just getting all this, and you're not cutting off any spaces so if you have a traditional LED display, you can only view that from one side and I think that's kind of what's really amazing about this product and a lot of times when you're looking at the product, you don't even realize that it's transparent until the image would say it's rotating from one image to the next. And you're like, Oh, wow, that's clear, there are people behind there. So I think, yeah, it's really cool in that application. David: From what I saw, because it's this mesh material, with super thin wiring in between each of the LED lights. The challenge I've had with a lot of trans or “transparent products” is that they look good from the front side, particularly at a distance, but when you look at the back end of the things, there's a mesh, like a metallic mesh or something like that, a grid system that kind of makes it look like crap. Todd Stahl: Yeah. With a lot of the applied films that have been out there before, and there's not a whole lot of them, but there are a few, certainly from that backside, it doesn't look at all like the front, and the same thing, with the LED actual metal meshes, again, they look phenomenal from the front, and you get behind, and you're like, man, what am I looking at here? So with our product, what's really cool about that is you get a little bit of the halo effect, from the image that's playing on it, that you can see from, say, the view side of the glass, and then you get a slight reflection off of that front piece of glass that kind of bounces back through. So you see a little bit of a glow or a halo in the background, but it is not an eyesore, and it looks pretty good. You can see out, and you have a very clear picture of the people that you're looking through or whatever object you would be doing from the back of the product. It looks really good. It's a good look from the backside. David: Yeah, there are numerous products out there that now do this kind of foil mesh effect, and you have to adhere it to the inside of a sheet of glass, which is all fine and everything else, but it doesn't look that good from the inside, does it? Todd Stahl: No, it really doesn't. The concept here, we touched on hockey a little bit, earlier, but you know, we have, you have all these hockey nets in the arena to protect the fans that a puck doesn't hit them, and most of those meshes are black. It's harder for our eyes to kind of pick up the black mesh than it is for white. There are some that have whites, but not many, and the black is blended in a lot easier. I'm a big hockey fan, so I've been to a few arenas, and the white ones are a little harder to, I think it takes away from the image more, and that's why we're using a black LED mesh. When we first started, it was white, and it just didn't have as good of a; again, I thought it took away from the product from the backside. David: So presumably there are limits in terms of the size of a glass panel that you can do because you've got a laminate in an oven of some kind and that they're only so big. So if you have, to use the example I mentioned earlier of, an auto dealer's glass curtain wall where the sheet of glass might be pretty darn big. How do you put multiple units together? And what does that look like in terms of cabling and everything? Todd Stahl: Yeah. So we're always kind of limited in size by a couple of different things. Sometimes it might be the actual raw product glass that we're using. Some sheets are available to us, bigger and smaller, the width of the laminating materials, and then our oven as well. So basically, in our oven here in Pennsylvania, we can laminate an LED panel roughly about 6x10 feet. You know, that's a pretty sizable piece of glass, and then what we can do, if you're doing a glass facade it kind of gets into a little bit more of how the glass is installed, but you're basically stacking the panels. there's a control unit. That attaches to each panel of glass, and then those control units are all tied together and then that gives you one cohesive image plane from one panel to the next. David: Do you have much of a seam in between them? Todd Stahl: So, if you remember, at the trade show, I think we had two panels out there and we had a seam in the middle. So I'll see the seam, you'll see the seam, but when the image is playing, you really don't even notice it's there. A lot of times, depending on the application, a glass facade is a little different, because you're going to have all most likely all four edges of the glass covered, but, we have a lot of applications where the panels are being butt jointed together and it's a nice polished edge there. So, yeah, with the image running and stuff, you really don't even see it unless you get within a couple of feet of it. David: So we're talking millimeters, not inches, in terms of a gap. Todd Stahl: Yeah, absolutely. You know, a gap's going to be somewhere in the neighborhood of three, three-sixteenths of an inch, plus or minus. David: So not much at all. Todd Stahl: Yeah, not much at all. Like I said, it's pretty cool. When that image is going, you're like, it just looks like one big piece of glass. David: And there are technical limits, like if, let's say, an airport curtain wall that might be like 80 feet high for the side of a terminal or something like that. Can you do that? Todd Stahl: Absolutely. That can all be tied in. You'd have several zones there, and depending on how you're handling the programming from a laptop, and something like that, you just say zone one's the entire thing, and then you might break it down into individual zones if you want different things playing at different times, but yeah, we this is definitely designed to do entire glass facades or, curtain walls. David: All those little lights generate some heat. How does the heat get out? Todd Stahl: Yeah, so we've been working with these products for about two years now, and I always expect when I put my hand on the glass to touch it, that it's going to be nice and warm, but it really isn't. The heat definitely dissipates quickly. There is some energy consumption, and we have charts for that. So once we get into a building design, we can get in there and say, “Hey, this is what you're going to need for your power requirements.” But it has very similar power requirements to current LED displays that have been around for a while. But yeah, it doesn't really create much heat. You would think it creates more, and I'm telling you, whenever anybody sees it, one of the first things that they almost always do is, “Oh, I expected that to be warm” and they touch it, and it really isn't. David: Well, one of the criticisms or let's say what a naysayer might say about this, is, “All right, if I buy this, glass panel with the LED mesh embedded inside of it, what happens if there's a dead pixel? I'm stuck with that forever. It can't be repaired because it's sandwiched in between two sheets of glass.” Todd Stahl: You know, it was my biggest concern. We spent a good bit of time. I think the lifespan of the LED bulbs we're using is right under 11 years. So we found the biggest problem that we've encountered, and this took us a while before we were going to bring it to market because that's by far the biggest concern; anyone looks at that and goes, it's not the first time I've ever seen a bulb, you know? So there's a couple of things. There's been a lot of research and development to make sure when it comes out of lamination that we've already caused any bulbs to fail before those processes, and we actually have a little bit of a protocol we've developed. So, one of the biggest reasons a light bulb is going to fail is the heat and pressure in that vacuum. It's not so much the heat, but the pressure because there's a little bit of movement in there. So if all those connection points aren't just right, you're going to get a bulb that may come out after you've done all of the work, and then you fire it up, and you know, there's a lot of bulbs, and a diode and only one is bad, it's not good. So we actually have a pre-laminating process we run to actually replicate what is going to go through the stressors of the lamination process. And if we find a bulb or a diode that might not be working, we can replace it after that pre-cycle of lamination. Now, on the flip side, let's say it's out there, it's in the field. If we use annealed glass on the front surface, so, annealed is not tempered, but the backlight would be tempered, so you're still dealing with a, fully safety rated tempered and laminated makeup. We actually have a drilling process where we can drill a core out of the glass, and we can actually replace that LED diode. What our experience is that once they come through lamination so far, with all the panels we've been working on we have not had one go out and we've put them in some areas of our glass production facility near our tempering oven, which is a really cool piece of equipment. It has a 600 horsepower blower that when the tempered glass comes through, it cools it to dissipate the heat, but it draws some dust, there's some heat back there. We've had a panel running there for two years in that condition without any issues. But yes, you can actually replace the bulbs if you need to, if one goes out. David: So I'm curious when an architect and a general contractor puts a building up, they're thinking in terms of being there for decades, with maybe the exception of football stadiums, which seem to need to be replaced every five years or so. Is 11 years an acceptable operating lifespan for a sheet of glass for a builder or for a building owner? Todd Stahl: Yeah. I mean, our interlayers, they last 20-30 years. The interlayers and the glass products, yeah, they're going to last a very long time. When we've been bringing this product to market I think, the event back to the switch light is one of the first times you're us glass guys are introducing electricity into the mix. And at first that back in 2000, I mean, it was really cool. It had the wow factor, but it didn't quite last as long for me. I didn't really get into the product until recently. But you know, that product will last around 10 years as well, and we don't get a whole lot of callbacks very often with any of our glass products. But it seems like most clients are happy with a 10-year usage. That's been pretty good for the Switch Lite product. We talk about a decade out there to the architects and designers now that, that's a number that they all seem to be very happy David: Let's say a car dealer goes in, they're fine, they're thinking in terms of the glass that they put in is there for 10 years, and they may switch it out anyways? Todd Stahl: Yeah, I think you know that everybody wants to be fresh and new. So we found a lot of these high-end retail stores that we've designed with, for instance, a high-end jewelry line, and let's say they have started in California with a new design. They take that design and they move it east to New York City. By the time they get to New York City, whether that's been five to eight years, and they redesign the whole thing over again. So there's a cycle and I think, especially with retail, and a lot of these buildings, they always want to have a new, fresh look, and I think a lot of times they're redesigning in under ten years for a lot of applications. David: I'm guessing I could be wrong here, but I'm guessing that there's hyper-competition from China for, what I would say is conventional LED displays and so on; you're probably going to have less competition for what you're doing because of the sheer weight of, even if they can make glass cheaper over in China, shipping glass panels over here would be just ghastly expensive, right? Todd Stahl: Yeah, definitely. It's pretty heavy to air freight glass, so it's always nice that there's this thing called the ocean between us and China, especially us being we've been a manufacturer forever, and thankfully, it is a little expensive to ship a finished product like that and take some time. So, yeah, and you know, right now, we're kind of pretty far ahead of the curve in how to actually laminate this properly. Our feeling was when we got involved with this, all right, we got the LED technology. Now we'll just throw it in some glass, and we got a home run and it wasn't quite as easy to just throw it in glass and end up with a finished product, you know? There are still some areas. We are not the only ones in the world laminating this product, but there are, from what I know, under five; we're the only ones who can do it with thin and large panels. We're the only ones that I know of that are actually doing some of the very specific things to make sure it's going to perform properly in these laminated glass applications. In our process, we are patent protected in our process where I think we're just like in the first phase, I don't know all the legal terminology, but we're going through the patent process for the way we laminate it. David: Which will help you over here, won't help you with Chinese products, but again, there's that ocean thing in between. Todd Stahl: Yeah, absolutely. We have a few intellectual properties here and I'm not one to get into too many legal battles, but we would have some type of recourse if someone does come and is trying to laminate in a similar technique the way we do it. David: I suspect you're kind of looking around the corner as to where this is going and the types of technologies that are emerging. Do you kind of see this as, what you have right now is Gen 1, and over time the light emitters will get smaller, the wiring will be even thinner and so on? Todd Stahl: Yeah, absolutely. I think that's exactly the way I see it going. I mentioned earlier: I really am a glass guy, and this is a glass company by people who absolutely love glass. Now, that's a Will Penn. Clear Motion, we have that same feeling as well, but this is more of a technology company. And what we're talking about today, like you said, generation one. We're going to revisit this in under five years, and it's going to look, I think, a whole lot different. David: Who's buying it right now? And are you in the field with this? Todd Stahl: So we're working on probably over 50 to 60 current projects right now in the design phase. Almost everyone we're working with has signed NDAs. So we can't necessarily say the clients that we're designing with right now. But one's a high-end fast food restaurant. They want one of these in each restaurant and that's actually for an exterior application. David: Are these proposals or purchase orders? Todd Stahl: They are proposals right now, so a lot of verbal commitments. We have a project we're working on in the Middle East in the design phase right now, that's 18 months out, the funding has been approved. They're designing it in the UK and then we're working with the audio visual company, I think in Texas. So this is really brand new. David: You're in startup mode! Todd Stahl: We really are, and this is the third company I've started literally from scratch, and I think it'll be the last one because boy, it is challenging. It takes a lot of energy. There's this great energy when you're starting it, and this is a little extra challenging because this is brand new. No one has ever seen clear LED glass displays like they just did not exist four years ago. People might've thought they saw something similar. Like you said, it was a film or a grid that was put behind the glass. But when people are seeing this now, we're creating a new market, we're educating people to that market, and we're educating ourselves. David: I'm guessing when people come to a stand at a trade show, you're at, the architects and the people who design physical spaces are the ones who are going, this is more like it. They haven't really liked the idea of films or foils and all that because of how they look at the back end or they're worried about a film sort of, particularly if it's exposed to UV light and all that, it's going to yellow and on and on… Todd Stahl: So what the feedback from the A&D community has been? We did an AIA show in San Francisco last June, and we had one or two clients, say, “Hey Todd, we have the budget for this. We have clients who want this product, and we've been looking for it for years.” Then we start designing the project with them, and that's the thing: once I shake hands with an architect, we might not actually have that project begin production for 24 months to a year. So, depending if the building's coming out of the ground or if it's just a remodel of an existing one, it's a very long cycle until we actually get orders placed, and you know, something I've been dealing with for 30 years. It's kind of the way the industry is. David: Infrastructure projects are never quick, are they? Todd Stahl: No, they really aren't, but the A&D world is kind of our background. It's where we've been for a very long time in that space, and we've definitely noticed that companies, individuals in the audio-visual world respond to this entirely differently. This doesn't have as many questions in their minds. They're more educated because we've been used to dealing with LEDs for a very long period of time. So it's kind of interesting how the two markets work together, like the DSE show where we introduced the product, I would say more to the audio-visual world if I'm using the right terminology there, it was received just as with that much energy, a lot of more understanding right away, not as many technical questions. David: It's a variation on stuff they've been seen before, but maybe a better variation. Todd Stahl: Yeah, absolutely, and the architects, like you were saying, and even in general, I think even though LG makes an applied film. The North American President of, I forgot the gentleman's name, he was in my shop a little over a year ago, and we were working with his film, and then we showed him our LED glass, and he was blown away by it. David: “There goes my business” Todd Stahl: Well, I think he was like, I'm going to make that too. I don't think he was worried about his business, but that applied film that they had been using, again, from a very long viewing distance, the product looks great. It's not yet ready to be viewed in shorter viewing distances, but the fact that it's applied, I do think that there is something like when you're buying a high-end product, you don't want people to be able to come up and pick it off, and I mean that definitely happens with every piece of film, I think I've ever worked with in my life. The first thing people do is take their fingernails, and they try to scrape the edge of it. It's just something that is instinctual about humans. But I think if you take that film now, I always say, if you put a piece of film on glass, it's just film. Once you laminate that film inside of the glass, you now have a glass product that protects it. It does what you were saying. It prevents it from being yellowed over time because the inner layer blocks out almost 100 percent of the UV rays. So I think it's a great home for the LED mesh. David: So does William Penn and Clear Motion Glass, do they operate separately, or are you kind of in the same office, the same building, and everything else, it's just different business cards? Todd Stahl: No, actually, we are in the same overall building complex, but we're not connected physically. So Clear Motion, basically has the equivalent of its own social security number, which down here in the business and for business, the IRS wants us to have EIN numbers for our businesses. So Clear Motion has an EIN number. Will Penn has an EIN number, obviously, but they definitely operate as two companies but obviously very close connections. David: And you are running both? Todd Stahl: I am running both right now, and spoiler alert: two's a lot harder to run than one. David: Yes, I bet. If people want to find you online, they just go to ClearMotionGlass.com? Todd Stahl: Yeah, that's it. They can find us there. There are some emails there. They can shoot an email to us and we'd love to talk to anybody if this product's right for them we're really excited about it and definitely creating a lot of energy with it. David: Are you at a trade show anytime soon? Todd Stahl: Yeah, so we're doing Infocomm, I believe. It's the middle of June out in Vegas. Are you going to be there? David: Yes. Todd Stahl: Awesome, man. We get to meet in person, then. We'll carve out some time for that, Dave. David: Absolutely, yeah, and that's a good show for you. There are tons of pro-AV people there. Todd Stahl: Yeah, I love that. That's a new space for us. So we're a little extra excited cause that's definitely not like a glass trade show is. David: All right. Todd, thank you so much for your time. Todd Stahl: All right. Yeah. I appreciate it, Dave. It was a pleasure.
Why is disability inclusion a business imperative? How can organizations harness allyship to dispel misconceptions and lay the foundation for meaningful representation? In this podcast, we consider the business case for investing in disability inclusion – an often forgotten strand in corporate DEI efforts – and the importance of changing mindsets in order to ensure progress. Our presenters delve into how organizations can pursue their business goals while investing in DEI by acting in a truly responsible manner and making effective use of the tools at their disposal. Our host David Boutcher is joined by Vaibhav Adlakha, Joanne Christopher, and Carole Mehigan. ----more---- Intro: Welcome to the Reed Smith podcast Inclusivity Included: Powerful Personal Stories. In each episode of this podcast, our guests will share their personal stories, passions and challenges, past and present, all with the goal of bringing people together and learning more about others. You might be surprised by what we all have in common, inclusivity included. David: Hello, everyone. Welcome back to Inclusivity Included. My name's David Boutcher. I'm a partner in the Reed Smith Global Corporate Group based in London. The title of this podcast is Diversity, equity and inclusion: Disability, a key focus for organizations. I've been involved with uh LEADRS, Reed Smith's Disability Group, since it began. And we thought it would be important to uh have a podcast as to why we think it's important to focus on, on disability, disability events, uh disability initiatives. Uh I'm joined by colleagues, Vaibhav Adlakha, Joanne Christopher, and Carole Mehigan. As they join the podcast, I will ask them to say a little bit about, about uh who they are as well. So I think um I'd like to kick off with talking about some of the specific events that we've had over recent years and the reasoning behind them and why we think they're really important and uh Vaibhav perhaps you'd like to kick us off on that. Vaibhav: Thanks David. So as David mentioned, my name is Vaibhav Adlakha. I am an associate in our competition team here in London, but I also have an interest specifically in the diversity inclusion issues. I also have a physical disability and use a wheelchair. Now, I wanna begin with a personal, little personal thing. Before I joined Reed Smith and I thought about what my identity was going to be, I thought I only wanted to be a lawyer, but as I joined and began my journey here at Reed Smith, I realized that we have a platform to make the change what we want to see in the profession and be a leader in what we want, how we want people to see view the profession. As David often says, we are the best of a bad bunch. But I guess my goal was to try and create uh something where it is beyond my own success. It is a legacy that we can continue. Just to spotlight on one of on some of our events, we started in doing our Disability Inclusion Summits in 2020. Um Necessity is the mother of invention. So uh during the pandemic, we wanted to celebrate International Day of Persons with Disabilities. And we, thought, what better way to do that when by discussing issues and creating an environment not only for our ourselves, but also for our clients and anyone who wishes to participate, to be honest, uh whether no matter how far you are in your disability journey, whether you have reservations, whether you're further ahead, whether you're converted. So that's the Disability Summits explored different topics. How it is to work in the pandemic. What is the myths of uh disability inclusion? How can you embrace the journey? What are some of the things that different clients have done in their journey to disability? So long story short, the the Disability Summits were done as a platform to of discussion no matter how, how far you are in that journey. And we believe that it's an important, important aspect to understanding what we can do better, how we can invest in education and especially disability education and how we can cut down boundaries. If I can touch upon briefly on some of our other events uh that we have done, which is the allyship event on the importance of carers, allies and support groups. Uh This was basically done for the purpose of understanding the mindset of those who support vulnerable people, whether that's people with disabilities, uh parents, children. Because if you understand the mindset of those individuals who do it, regardless of the challenges, then you can be part of that super group, you can become part of being an ally. So that was the reason we did that as an event. And uh the importance of a career fair. Um Carole who will, who you will hear from did a specific career for fair for people with disabilities. And we wanted to do that simply because we are keen to uh cut down the barriers uh that people with disabilities face in education, in schools so that uh they, they can understand the aspirations that it you can have. And finally, we do uh understand the importance of learning and constantly improving, and that's why disability training sessions are not only important from a policy perspective as it is the right thing to do, but also so that it, it transfers down from people who work with you every day so that they understand what it is to work with people with disabilities. And we understand as well as people with disabilities, how we can, how we need to adapt to fit within the environment. Um So with that, I'll just hand over back to David to and David, I wanted to ask you about why from a Reed Smith perspective, because I've given the reason for the idea is that we had, but why from a Reed Smith perspective, it's important as a firm that we invest in disability inclusion? David: Thanks Vaibhav. Yeah, I mean, I think um it's really important for so many reasons if you like both internal and external as far as uh the firm is concerned. uh Reed Smith is very proud of its culture and its core values. And I think to have these events and initiatives on issues and highlighting the challenges of people with disabilities really shows uh that culture and those core values uh in action. And also I think it helps uh educate our own people with regard to the challenges faced by people with disabilities. I think so often people feel as though they haven't come across people with disabilities and are actually unsure as to how to deal with those people. So I think most employers actually face a key challenge to, to address that issue. And I think professional services organizations like Reed Smith are particularly well placed. It's a bit of a cliché, but we often say we're a, we're a people business, which we are. And I think that means that we have a responsibility to talk to all of our people. But also the people with whom we interact, particularly clients about the challenges faced by people with disabilities. A as it's often said, when talking about diversity, equity and inclusion, the one area of diversity which is often at the bottom of the list, and I'm, I'm afraid to say sometimes not even mentioned is the, the challenges in the area of people, people with disabilities. It is changing, it's not changing fast enough. Um So I think it's really important that we, that we, we focus on it uh as an organization. And I think also it's important in terms of training and education at multiple levels and, and, and I know, Vaibhav, you've had uh experience when you were training as to what you might be training for and what might be available to you uh as a person with a disability. And I think again, we have a responsibility as employer to demonstrate how people with disabilities can be included, work with colleagues and most importantly, be treated equally. And I think that is often the challenge that people are not sure how to accommodate people with disabilities. And it is often a fine balance between uh treating people equally. Uh But they're not treating them equally because they, if you like focusing on their disabilities and and unfairly making that um stand out and we only improve that by uh talking about these issues. And in terms of uh you know, having a platform where we can help change the mindset around people with disabilities as with any mindset. Actually, it's not something you're gonna change overnight. So I think it's important that we have a continuing program of initiatives uh and events where we talk about the many challenges faced by um people with disabilities. And of course, the whole area of disability itself is, is, is very complex, there are physical disabilities, there are mental hidden disabilities. And again, I just think historically, it's just not something that people have talked about and I think people want to hear other people's views, they want to be here uh about the experiences that people with disabilities have had. And the other really important thing is we want to make the most of people's talents and so many people with disabilities have unique talents. I, I've often said often somebody with a disability has had huge challenges in their lives, which they've met, you know, with gusto, they, it's given them great confidence and that actually gives the individual the kind of qualities that most employers would really want to have. So there are all sorts of positives to look at uh as well. But most importantly, unless we address this, we've almost got a whole lost sector of our population where we're not actually uh making the most of that uh of that talent. And I think it's really important to address it on so many levels. So as Vaibhav has said, we've had many different events and most recently we've been talking about support groups and allyship and representation. Vaibhav: David I just wanted to make before you hand over to Carole, is you talked about how from a disability point of view, we we as firms, we need to understand what, during my training for instance, you said, what are you working towards? I think from a disability person perspective, it's also fundamental for, for us to understand how, how to work with an organization because in the end organizations or businesses. So it's more of a collaborative effort. And I think by doing these events uh or being on the inside, right, you can not only kind of make the profession of the firm or what you're aspiring towards. Uh you can mold that together as a, as a partnership, but also uh the wider perspective. Also, I was hoping we could talk about why clients think it's important to in that respect. So we can, we can discuss that at some point. David: Yeah, absolutely. Well, I mean, clients, uh as I mentioned earlier, I think it, it, it's, that's why again, it's important for the firm because I think that we need to share those experiences with clients and and ultimately, of course, it helps strengthen the relationship with clients. And again, where I welcome uh Carole's comments, you know, that often comes down to other parties, support groups, uh allyship representation, which was of course the focus of the last disability event that we held. So Carole, perhaps you'd like to say a few words about that. Carole: Thank you, David. Thank you Vaibhav. Thank you for having me on this podcast today. Um Delighted to be speaking with my wonderful colleagues. So my name's Carole Mehigan. I am the responsible business manager for our Europe Middle East and Asian offices. I am based in the London office. Um and I concentrate mainly on the London and our Leeds office where I host a multitude of events and um projects um across the area. So, concentrating on, on disability, really. I do a lot of student programs across the different age range. Um And during my time in doing my role at Reed Smith, I realized that, you know, disability is still slightly taboo amongst our students. I know young people, they don't actually realize that, you know, we're breaking those barriers down for them and that we're trying to ensure that they feel inclusive to, you know, going into a law firm and the legal sector uh has changed over the years. So working with schools who uh who predominantly work with students with disabilities and universities, who also focus a lot on a lot of students who have disabilities has been fantastic for us as a law firm because they were actually hitting that talent that seems to still be hidden away. And one of the reasons why I was so keen to do the disability career fair, um which we did um last year was because I wanted to really shine a light on those students and young people who don't feel that they are getting the focus enough or don't still feel like they would be welcomed into the legal industry. So actually focusing on them and giving them the opportunity to come into a place like where we work and to really speak to people from a diverse background, but also people with disabilities, myself being one. I was diagnosed in 2020 with neurodiversity and disabilities. So for me being an advocate in that respect as well, um and also supporting from, from the representation within Reed Smith, I thought was a very keen focus for me to make sure that students understood that we were a disability friendly organization. And David and Vaibhav have both touched upon the client engagement on the, at the disability fair. We did invite some clients who again are disability friendly. They wanted to promote that and show uh students what opportunities you can find within their organizations. So it really gave us a chance for us to talk about what we do, what we do in that space, what sort of opportunities there are for students with, with or without disabilities, but obviously focus a lot on on on disability side and also to encourage students and young people to feel like they can talk about their disability. They can actually bring that into the conversation and not be scared to hide, hide it in the background because they're worried that if they do say anything about their disability, then it will be frowned upon or they will be seen as a lesser candidate for any particular role within the business. So for me doing work uh with schools and with universities on the back of the disability fair, I'm now working with a school which exclusively has students. Every student has a disability. I'm now working with them to provide some of their students with work experience. So it's that continue of working with, you know, students and young people. So they understand that there are loads of opportunities, loads of great ways of them having an insight into our firm and, and hopefully that's going to continue. So that's what we're doing really on from the UK and the sort of Europe, Middle East and Asia side. I'm gonna hand over to Joanne who is one of our colleagues in the US for her to kind of give a little bit of more about what we're doing in the US with regards to disability. Joanne: Thank you, Carole. Uh My name is Joanne Christopher. I'm the senior human resources manager in our Pittsburgh office. I'm also the HR liaison to our LEADRS disability employee resource group in the US. Of course, we do participate with our college in Europe in the Middle East and also in Asia um on our disability program. Um as as David mentioned, people with disabilities have amazing abilities by not including them or missing out on a vast talent pole. It's very important to have diversity of thought, uh diversity of culture, and people disabilities are part of that diversity that Reed Smith values. I know that a lot of employers uh when they hear about employing folks with disability, they immediately talk about the cost of accommodations. It's widely known that most accommodations cost less than $500 and some cost nothing at all. So there's no reason not to include these colleagues. Uh People with disabilities want to work and they have a lot to offer us. Here in the United States, uh we are very proud that we have received the National Organization on Disabilities uh Leading Disability Employer Recognition. We also are part of NOD's Leadership Council and we've received 100% on the disability equality index through Disability: IN. And so, um it, it's not just a lot of talking words. Reed Smith really is putting into action a lot of initiatives to help our colleagues with disabilities because we value the gifts that they have to offer us. Some of the resources for our employers that we've developed, we've created this disability etiquette guide to help those people who aren't used to working with people with disabilities to be a little more comfortable to know how to approach a situation. We have institute of project ability where we work with clients on including a person with disability on each side of our client teams and the disability is only disclosed if the person wants to disclose that. So, you know, you could not know who the disabled person is on a particular project. We've created an accommodations resource to help other folks feel comfortable coming forward to request accommodations. It's a sample of a lot of the accommodations that we have across the firm. We also host weekly coffees and in those weekly coffees uh which again are available throughout our global platform, we get to know our colleagues. We offer support if someone is struggling or, you know, we just get to know each other if there is an oppressing issue that someone wants to bring forward. We have established subcommittees on accessibility, neurodiversity, peer support, recruiting, retention, and promotion and events and speakers here in the US, particularly in Pittsburgh, we partner with St. Anthony's School at Duquesne University to provide vocational training opportunities for college age students who uh have down syndrome autism or other intellectual disability by hosting them here in an internship program where they're learning a lot of job skills, uh how to dress for the world of work. Uh Some of those, those non uh visible types of things that you need to bring to a job, like being on time, how to get to and from work and those kinds of things. But more than that our employees just love when, when the students are here and it gives them an opportunity to work side by side with people with disabilities. Um We've also partnered with Special Olympics to host bocce tournaments. We have different awareness days and um again, we have a process to uh support all of our employees, those with disabilities and those without. So, so that's a little bit of what we're doing here in the US. Vaibhav: From a student perspective. You, you really, and this is me speaking not being a Reed Smith employee, you really don't understand how important those kind of events are working with your working with the schools and doing a career for solely for people with disabilities because what happens is they don't know what they can be. Uh, if me coming from India, living in the Netherlands, I didn't even realize I could be a lawyer because I didn't know what professions were open to me. And so from a student perspective, if, if you have uh an environment or uh have clients who are willing to say, you know, these are the career paths that you can have. They, not everybody is probably gonna be a lawyer, not everybody is going to be uh someone in the legal profession or a partner or something like that. But at least they have aspirations to, to know who they can be. And for someone with a disability who, who, who can, who sometimes is not allowed to see beyond just what, what he, she can't do that. That is invaluable. I think before we close, I, I wanted to ask David one thing about how, because a lot of organizations talk about these are our business goals, these are our diversity goals. And if we invest too much in diversity, especially in our legal profession because they, they charge every minute unfortunately, but uh and every second that you're actually working, how, how do you deal with the fact that someone with a disability may take longer may not be as efficient? And how do you then figure out that, that your business goals and your diversity goals can be one? David: Well, I think it, and thanks Vaibhav, I think it even goes wider than that. I mean, as uh Joanne was talking, I was thinking about uh ESG environmental social governance, which we advise a lot of our, our clients on. And I think in terms of when it comes to goals uh related to the accommodation of people with disabilities which Vaibhav has just touched on, they really have to be integrated fully into all of our business goals. And this is the mistake. I think that so many organizations often make that uh they just focus on if you like their corporate and social responsibility actions rather than integrating these issues throughout their business. So uh I think as Joanne mentioned, we have this uh project ability initiative where we have, you know, uh somebody with a disability working on, on, on, on each matter, we have uh initiatives working with clients uh where we're discussing and championing the causes of people with disabilities. And I think also we're educating one another on uh as I touched on early treating people with disabilities equally because again, answering Vaibhav's point about uh how we uh accommodate the challenges of people with disabilities within our own business goals. It's as we accommodate all people within our business goals because no one is perfect and uh all people have strengths and weaknesses. It just so happens that we're where you come to a person with a disability, their weakness is often focused on that disability. But other people's weaknesses may be focused on the fact that they don't have the greatest talent in certain areas, but they've got a much stronger talent in other areas. And as we would say, it's horses for courses and it, when it comes to people with disability, it's not saying, well, they're actually a completely different animal separately and we must kind of somehow have a separate initiative for them. Well, no, they're just, they're part of all of our people. Uh And the way we accommodate them is the way we accommodate everybody and everybody needs some kind of accommodation because as they say, nobody is perfect. And, and I think that one thing I've learned from working with a number of people with disabilities is that that's kind of the number one thing that they really want is to be treated equally and, and on parity with, with, with everybody else. And I think we're moving in that direction when I say we, I mean, society generally, and I think that's why the whole ESG initiative now is great because that is all about how businesses can not only operate themselves independently in doing the right thing, but how they impact all their stakeholders and the wider society and community at large. And I think work in uh helping and highlighting the challenges of people with disabilities fits into that so well, because there are so many issues to be addressed. And as Vaibhav has alluded to so many ways in which we can, uh we can influence wider society um for the better. Vaibhav: So it's all about adapting and adapting the way, seeing the ability in others and adapting your working practices about adapting your mindset. And my one final question, because this is something I'm really passionate on is, Carole and Joanne, I think I, I think I wanted to understand because having every organization has a, has a CSR Corporate Social Responsibility or, or responsible business. These are, these are tools that every organization kind of has. And for me, I, I always think that if you can focus on a cause and use the tools you already possess as an organization, you can make a difference. How do you think uh in terms of what we are trying to achieve from a responsible business perspective, helps prepare society and businesses to embrace diversity, inclusion and become better allies. Carole: I, I don't mind starting first. So I think, you know, we, we as a firm, we see responsible business is a way of life. It's a way of us showing our culture and of a firm and how we want to provide support for, for each other. So we see it that, you know, we are a business that wants to be responsible for the wider community and that includes uh young people and students, et cetera um in the disability arena. We want to, we don't want anyone to feel excluded. You know, for, like I said, for a long time, especially students and young people who do have disabilities have been afraid to say it. They've been afraid to say on an application form or when they're being interviewed. And the, the, the problem then you have is how can you support somebody if you don't know that they need that support. So as a responsible business, as you know, we have to ensure that people understand that, you know, bring your true self to the workplace. You know, when you are applying somewhere, if you feel that you can't be completely honest and open about what you know yourself and if you have a disability, it may be not the right place for you and with working with other organizations such as clients, for example, who are also thinking in the same way that we are, you know, makes that uh collaboration with our clients, not just from a client service perspective, but also from the fact that we're organizations all trying to meet the needs of a particular demographic of people who feel like they're still outsiders. So I think being responsible for the wider community in whatever way you can bring in our community internally, to meet the external community is really important. And it also allows us as a community internally to show that we already have lots and lots of people with disabilities of all sorts, whether it's visible, invisible neurodiversity, whatever it may be and how, you know, how much they have made a success of their careers, you know, shining that light out there, letting other people know you could follow in the same footprints you could follow down the same career path is really, really important. So it's not just a case of talking the talk, you need to walk the walk, you need to do that by showing how you're going to do that. And the only way you can do that is like doing events like we've done already uh finding ways to get into the community and show what you can provide them and what they can provide to us. Because you know, even with having a disability of any sort, you bring a unique talent to the table, you know, we all bring something to the table and having disability is already a challenge for you as a person. So when you can bring that to the table and be successful in your career, choice of career, I think just shows that, you know, you have resilience, you, you can champion yourself and you can really go, you know, help other people to feel that they can do the same thing. I'll hand over to Joanne at this point. Joanne: The one thing I would say is a professional services firm, we are in the people business. So we need to take care of our people so that they can do the best work that they can do. Disability cuts across all corners of our lives. It's socio-economic, it's diverse groups. It's every ethnic background. There are people with disabilities in every corner and these people have a lot of gifts to offer and we need to support them. Vaibhav: As a final comment for me, this working on disability is not a silo. Every aspect of your organization can work on it whether you have pro bono uh projects that focus on disability, responsible business projects or simply come up with a legal initiative and do something like training for your employees so that they can better understand. But it's a two sided training. We, we as people with disabilities need to understand how it is to work in an organization and how it is to adapt. Whereas the organization has tools that are already there for them to focus on the ability of people. And that's something organizations do anyway, because they, they focus on who the person can be and what tools they can provide. So through this podcast, I hope that a lot of organizations who or people who are listening gain the confidence that you have the tools within your organization within yourselves to actually make a difference to anyone, let alone people with a disability and, and work and adapt to make professions better than when we found them, when we enter that each of us uh from our experience. So with that, I thank everybody for listening to our Inclusivity Included podcast. You will find a whole range of podcasts on Inclusivity Included, our podcast channel discussing a wide variety of issues to do with disability, and diversity, equity and inclusion. And I, I have enjoyed working uh talking discussing about this with my colleagues. So thank you very much and thank you for listening. Outro: Inclusivity Included is a Reed Smith production. Our producers are Ali McCardell and Shannon Ryan. You can find our podcast on Spotify, Apple Podcasts, Google Podcasts, reedsmith.com and our social media accounts. Disclaimer: This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship, nor is it intended to suggest or establish standards of care applicable to particular lawyers in any given situation. Prior results do not guarantee a similar outcome. Any views, opinions, or comments made by any external guest speaker are not to be attributed to Reed Smith LLP or its individual lawyers. All rights reserved. Transcript is auto-generated.
On this episode, my guest is David Bacon, a California writer and documentary photographer. A former union organizer, today he documents labor, the global economy, war and migration, and the struggle for human rights. His latest book, In the Fields of the North / En los campos del norte (COLEF / UC Press, 2017) includes over 300 photographs and 12 oral histories of farm workers. Other books include The Right to Stay Home and Illegal People, which discuss alternatives to forced migration and the criminalization of migrants. Communities Without Borders includes over 100 photographs and 50 narraatives about transnational migrant communities and The Children of NAFTA is an account of worker resistance on the US/Mexico border in the wake of NAFTA.Show Notes:David's Early YearsLearning about Immigration through UnionsThe Meaning of Being UndocumentedNAFTA and Mexican MigrationThe Source of Corn / MaizeBinational Front of Indigenous Organizations / Frente Indigena de Organizacaions BinacionalesThe Right to Stay HomeAndres Manuel Lopez Obrador (AMLO) CampaignThe Face & History of Immigration in the USAImmigration Reform and AmnestyThe Violence of Fortuna Silver Mines in OaxacaSolidarity, Change and OptimismHomework:The Right to Stay Home: How US Policy Drives Mexican MigrationIn the Fields of the North / En los campos del norteIllegal People: How Globalization Creates Migration and Criminalizes ImmigrantsCommunities without Borders: Images and Voices from the World of MigrationThe Children of NAFTA: Labor Wars on the U.S./Mexico BorderDavid's Twitter AccountDavid's Official WebsiteTranscript:Chris: [00:00:00] Welcome to the End of Tourism podcast, David. It's an honor to have you on the pod. To begin, I'd like to ask you where you find yourself today and what the world looks like for you there. David: Well, I live in Berkeley, here in California, and I am sitting in front of my computer screen having just what I've been up to today before talking with you. Chris: Hmm. Well, thank you so much for joining us, and thank you for your work. Perhaps I could ask you what drew you to the issues of labor and migration.David: Sure. Well, I come from a kind of left wing union family, so I knew about unions and workers and strikes and things like that from probably since before I can remember. And so I was kind of an activist when I was in high school, got involved in the [00:01:00] student movement in the 1960s at the University of California, got involved in the free speech movement, got tossed out by the university, actually, and wound up going to work after that, really, because I got married, had a daughter, and I got married, had a daughter, and, I needed to get a job and, you know, worked for quite a while as a a printer in the same trade that my father was, had been in went back to night school to learn more of the, of the trade, how to do different parts of it, how to run presses and so forth and then got involved, this is, you know, in the late 60s, early 70s got involved in the movement to support farm workers, really, and I was one of those people, you know, if you're my age, you remember this, if you're younger, you probably don't, but we used to picket supermarkets to try to get them [00:02:00] to stop selling the grapes and the wine and the lettuce that was on strike, and we would stand out in front of Safeway and other supermarkets with our red flags with the black eagle on them, And ask customers, you know, not to go into the store, not to buy the products that farmworkers were on strike against.And I got really interested in. I'm curious about the workers that we were supporting. You know, I grew up in Oakland and so I didn't know anything about farm workers, really. I didn't know anything about rural California, rural areas, didn't speak Spanish didn't know much about Chicano, Latinos.Oakland's a pretty diverse city, but in the area of Oakland where I grew up in you know, in our high school, you know, the students were African American or they were white, and that was a big racial question in, in school when I was in high school. So I grew up not knowing any of these things.[00:03:00] And Because I was involved in, you know, standing out in front of these stores and supporting workers, I, you know, began wondering, who are these workers that we're supporting? And eventually, I went to work for the union. I asked a lawyer friend of mine who was in their legal department if they needed any help, and of course he said yes.I went down to, Oxnard and de Santamaria began working for the union, originally taking statements from workers who had been fired because of their union activity. I didn't know much Spanish, so I had to learn Spanish on the job. Fortunately, you know, the workers were very patient with me and would help me learn, help me correct my still bad pronunciation and bad grammar.And, and I began to learn. And that process has been going on ever since, really. That was a, that was a formative time in my life. It taught me a lot of [00:04:00] things. It taught me about, you know, the culture of. farm workers who were mostly Mexican in those years, but there were still a good number of Filipino workers working in the fields.That eventually led me to the woman I eventually married, my wife, who was the daughter of of immigrants from the Philippines from a farm worker family. So I learned about that culture and I began learning about immigration, which I hadn't really known anything about growing up. Why people come to the U.S., what happens to people here. I, I saw my first immigration raid. When I was an organizer, I later became an organizer for the union as my Spanish got better. And I remember going to talk to a group of workers that I had met with the previous night, who were worked up in palm trees picking dates.And I went down to the date grove, this was in the Coachella Valley, and there was this big green van, and there were the [00:05:00] workers who I'd been talking to the previous night being loaded into the van. I was just You know, really shocked. The van took off. I followed the van all the way down to the Imperial Valley, to El Centro, where the detention center was.Stood outside the center trying to figure out what the hell is going on here. What am I going to do? What's going to happen to these people? And that was sort of an introduction to the meaning of being undocumented, what it meant to people, what could happen. And that made me an immigrant rights activist, which I've also been ever since, too.But also, over time, I got interested in the reasons why people were coming to the U. S. to begin with. You know, what people were finding here when people got here was very, very difficult work, low pay, immigration raids, police harassment, at least, and sometimes worse than that, poverty. You know, Why leave Mexico if this is what you're going to find?[00:06:00] And it also made me curious about the border. And so that also began something that has continued on in all those years since. I eventually went to the border, went to Mexico, began getting interested and involved in Mexican labor politics, supporting unions and workers in Mexico, you know, doing work on the border itself.After the Farm Workers Union, I worked for other unions for A number of years and they were generally reunions where the workers who were trying to join and we were trying to help were immigrants. So the government workers union, the women in the sweatshops sewing clothes or union for factory workers.And so my job was basically to help workers organize and. Organizing a union in the United States is like well, you know, people throw around this word, you know, this phrase class war and class warfare pretty freely, but it is like a war. You know, when [00:07:00] workers get together and they decide they want to change conditions and they want to you know, get the company to, speak to them and to deal with them in an organized way.They really do have to kind of go, go to war or be willing to, for the company to go to war with them. You know, really what people are asking for sometimes is pretty minimal, you know, wage raises or fair treatment at work or a voice at work. You know, you think, you know, what's wrong with that. But generally speaking when employers get faced with workers who want to do that they do everything possible to try and stop them.Including firing people and harassing people, calling them to meetings, threatening people, scaring people. You know, there's a whole industry in this country that consists of union consultants who do nothing but, you know, advise big companies about how to stop workers when they, when they try to organize.So that's what I did for about 20 years. Was help workers to get organized, form a union, get their bus to sit down and talk [00:08:00] to them, go out on strike, do all those kinds of things. And eventually I decided that I wanted to do something else. And I, I was already involved in, you know, starting to take photographs.I would carry a camera and I would take pictures of what we were doing as workers. We would joke about it, kind of. I would tell workers, well, you know, we're going to take some pictures here and you can take them home to your family and show them, you know, that you're really doing what's right here and 20 years from now you'll show your grandkids that, you know, when the time came, you stood up and you did what was right and people would joke with each other about it.And I discovered also that you could use them to get support for what we were doing. You know, we could get an article published in a newspaper somewhere. Some labor newspaper might run an article about us. You might get some money and some help or some food or something. But after a while, you know, I began [00:09:00] realizing that these photographs, they had a value beyond that.And that was that they were documenting this social movement that was taking place among immigrants and, and Latino workers, especially here on the West Coast of people basically trying to. Organize themselves for social justice in a lot of different ways, organizing unions for sure, but also trying to get changes in U.S. immigration laws, immigration policies those people who are citizens and able to vote, registering to vote, political change. You have to remember that if you go back to the 1960s or 1970s, Los Angeles was what we used to call the capital of the open shop. In other words, it was one of the most right wing cities in America.You know, the mayor Sam Yorty was a right wing Republican. The police department had what they called the Red Squad, whose responsibility it was is to go out and to deal with [00:10:00] people that wanted to change anything or to organize and Unions or strikes or belong to left wing political parties or whatever.And today, Los Angeles is one of the most progressive cities in the United States, and it has to do with what happened to those primarily Central American and Mexican and workers of color, women, who over time got organized and changed the politics of Los Angeles. And so, you know, I was really fascinated by it.This process, I was involved in it as an organizer and then later as a somebody taking photographs of it and writing about it that and so that's, that's sort of the transition that I made for the last 30 some odd years. I've worked as a freelance writer and photographer, basically doing the same kind of thing.I look at it as a way of organizing people, really, because the whole purpose of writing the articles and taking the [00:11:00] photographs is to change the way people think, and make it possible for people to understand the world better, and then to act on that understanding, which to me means trying to fight for a more just world, a more just society.And so. That's what, that's the purpose of the photographs, that's the purpose of the writing, is to, is to change the world. I think it's a big tradition in, in this country, in the United States of photography and of journalism that is produced by people who are themselves part of the movements that they are writing about or documenting, and whose purpose it is to sort of help to move forward social movements for social change.Chris: Amen. Some of the stories you were mentioning remind me of my mother who also worked for a labor union most of her life. And I was definitely still very much concerned with the state of affairs. I should [00:12:00] say that you know, I'm incredibly grateful as well to have a man of your stature and experience on the pod here to speak with us your work Has definitely opened my eyes to a lot of things I hadn't seen living here in southern Mexico, in, in Oaxaca.And one of these, these books, which I'd like to touch on a little bit today, is entitled, The Right to Stay Home. how U. S. policy drives Mexican migration. And we're actually at the 10 year anniversary of the publication of this book. So I feel honored to be able to speak with you in this regard about it.And, you know, it's, for me, someone who was a backpacker and a tourist, and then later a resident of this place, of Oaxaca, to come to understand much more deeply the complexities and nuances around migration, and especially in the context of Mexican migration to the United States. [00:13:00] What's left out of the conversation as someone who grew up in urban North America and Toronto, Canada very much on the left in my earlier years, in terms of organizing and, and and protesting, the, the, the dialogues and the conversations always seem to be around the the treatment of migrants once they arrived and, and not necessarily, as you said, why they left in the first place, the places that they left and the consequences to the places that they left.And so I guess to begin, I'm wondering if you could offer our listeners a little bit of background into How that book came to be written and what was the inspiration and driving factors for it? David: The book came to be written to begin with because I began going to Mexico and trying to understand how [00:14:00] the system of migration works in the context of the world that we live in, you know, people call it globalization or globalism, or you could call it imperialism.So I was trying to understand that from the roots of first having been involved with people as migrants once they had arrived here in the U. S. I was trying to understand Well, two things. One was why people were coming, and also what happens to people in the course of coming. In other words, the journey that people make.Especially the border. The border is the big And the border has very important functions in this because it's really the crossing of the border that determines what the social status of a migrant is, whether you have papers or not, whether you're documented or not, which is a huge, [00:15:00] huge, huge distinction.So as a result of that, and as a result of kind of listening to people listening to the movement in Mexico talk, about it, investigating, going to places like Oaxaca. I first wrote a book that tried to look at this as a system, a social system. It's really part of the way capitalism functions on a international or global basis in our era because what it does is it produces Displacement, the changes that are, you take a country like Mexico, and this is what the first book, the first book was called Illegal People.And what it looked at was the imposition on Mexico, for instance, it starts with NAFTA, the free trade agreement. In fact, the first book I ever wrote was about the border and was called The Children of NAFTA, the [00:16:00] North American Free Trade Agreement. But this book Illegal People, what it really tried to do is it tried to look at the ways in which People were displaced in communities like Oaxaca.And of course, for Oaxaca, Oaxaca is a corn growing state. It's a rural state. Most people in Oaxaca still live in villages and small communities. Oaxaca's a big city, and there's some other cities there, but, but most people in Oaxaca are still what you call rural people. And so NAFTA, among the many changes that it imposed on Mexico, one of the most important was that it allowed U. S. corn corporations, Archer Daniels Midland Continental Grain Company other really large corporations to dump corn in Mexico at a price that we were subsidizing through the U. S. Farm Bill, our tax money. In other words, we're, our tax money was being [00:17:00] given to these corporations to lower their cost of production.And that allowed them to go to Mexico and to sell corn at a price that was so low that people who were growing corn in a place like Oaxaca could no longer sell it for a price that would cover the cost of growing it. That had an enormous impact on people in Oaxaca because what it did was it forced people to basically to leave in order to survive.It's not that people were not leaving Oaxaca already before the agreement passed. There were other reasons that were causing the displacement of people in rural communities in Oaxaca. A lot of it had to do with this relationship with the U. S. even then, but certainly NAFTA was like pouring gasoline on all of that.And so three million people was the estimate that in a period of 10 years were displaced as corn farmers in Oaxaca. That's a huge percentage of the population of Oaxaca. [00:18:00] And so people were forced to go elsewhere looking for work. People went, you know, to Mexico City. You know, Mexico City, the metro system, the subway system in Mexico City was built primarily by workers who came from somewhere else.A lot of them from Oaxaca. Who wound up being the low cost labor that the Mexican government used to build a subway system. They went to the border, they became workers in the maquiladoras, in the factories that were producing everything from car parts to TV screens for the U. S. market. And then people began crossing the border and coming to the U.S. as either farm workers in rural areas of California or as low paid workers in urban areas like Los Angeles. So one of the big ironies, I think, of it was that here you had farm work, farmers who were being forced off their land. And remember that these are corn farmers, so [00:19:00] the Domestication of corn happened first in Oaxaca, and the first earliest years of domesticated corn, thousands of years old, have been discovered in archaeological digs in Oaxaca and caves near Oaxaca City to begin with.So here we have people to whom the world really owes corn as a domesticated crop, who are winding up as being wage workers on the farms of corporate U. S. agribusiness corporations in California, Oregon, Washington, eventually all over the United States. That was the migration of Oaxacan people. And so you could sort of see In this, as sort of a prism, what the forces were, what the social forces at work are, in other words, that in the interests of the profits of these big corporations, these trade agreements get negotiated between [00:20:00] governments, okay, our government, the U.S. government negotiates with the Mexican government, but that's like David negotiating with Goliath, or the other way around, rather, you know, The agreements are really imposed. It's not to say that the Mexican government of those years was opposed to it. It was a neoliberal government too, but the power in this negotiation is held by the U.S. government. And so that trade agreement in the interest of making Mexico a profitable place for, you know, Archer Daniels Middleton to do business gets imposed on Mexico. And then as a result of that, people get displaced and they wind up becoming a low wage workforce for other corporations here in here in the U.S. In fact, sometimes they Wind up working for the same corporation Smithfield foods, which is a big producing corporation [00:21:00] went to Mexico. It got control of huge areas of a valley called the Peralta Valley, not that far from Mexico city. And they began. Establishing these huge pork or pig raising facilities.In fact, that's where the swine flu started was because of the concentration of animals in these farms. Again, displacing people out of those communities. And people from the state of Veracruz, where the Perote Valley is located, many of them wound up getting recruited and then going to work in North Carolina at the huge Smithfield Foods Pork Slaughterhouse in Tar Heel, North Carolina.So that sort of tells you a lot about how this system works. It produces displacement. In other words, it produces people who have no alternative but to migrate in order to survive. And those people go through all the things that people have to go through in order to get to the United [00:22:00] States because there are no real visas for this kind of migration.And them wind up being The workforce that is needed by the system here, Smithfield Foods or other corporations like them in order for them to make high profits here. And in the process of doing this, I was developing a a relationship with a very unique organization in Mexico, in Oaxaca, a part of which exists in Oaxaca, called the Frente Indígena de Organizaciones Binacionales, which is the Binational Front of Indigenous Organizations.And this is an organization that was actually started by Oaxaca migrants in the U. S., in Los Angeles, and then expanded both into the Central Valley here in California and then expanded back into Mexico in Baja, California, where there are also big corporate farms where primarily Oaxaca, people from Oaxaca are the workforce, and eventually chapters in Oaxaca itself.[00:23:00] And so I would got to be friends with many people in this organization, and I would go and take photographs at their bi national meetings, they would have meetings in Mexico where people could come together and and talk about their situation. And, you know, I began, obviously, listening to what people were talking about.And, People developed this, I think, very kind of path breaking, unique analysis of migration in which they talked about a dual set of rights that migrants need and migrant communities need in this kind of world. And so, What they said was, on the one hand people need rights as migrants where they go.In other words, people, when they come to the United States, need legal status. People need decent wages, the ability to organize, you know, an end to the kind of discrimination that people are subject to. But, [00:24:00] people also need a second set of rights as well, which is called the right to stay home. And that is the title of the book, The Right to Stay Home.And what that means is that, People need political change and economic and social change in their communities of origin, which makes migration voluntary. So these are communities that are so involved in the process of migration that it would not make any sense to say that migration is bad, because In many cases, these are communities that live on the remittances that are being sent by migrants, by members of people's own families who are living and working in the United States.So the discourse in these meetings was sort of on the order of saying that people have the right to migrate, people have the right to travel, people have the right to leave, but they also have the right to stay home. They have the right to a decent future. A young [00:25:00] person who is growing up in Santiago, Cusco, Oaxaca in the Mixteca region of Oaxaca, for instance, has a right to a future in Oaxaca so that you can make a choice.Do you want to stay and have a decent life for yourself in Oaxaca, or do you want to leave and hopefully have a decent life for you and wherever you go, whether Baja California or California or Washington State? So in order to have a Right to stay home. What has to happen? What do people need? It's kind of a no brainer. People need well high farm prices to begin with. They need the ability to raise corn, tomatoes, Whatever crop it is that they need and sell it at a price that is capable of sustaining those families and communities. People need education.They need healthcare, but people also need political change because the Frente Indígena is a political organization. And so it was fighting [00:26:00] against the domination of Oaxaca by the old PRI, the party of the institutionalized revolution, which had been running Mexico for 70 years, trying to find a government that would begin to push for those kinds of social rights.And that was you know, a very important kind of eye opening for me was to hear people talking about the right to stay home, so much so that I said, you know, we need a book about this. So we're not just describing the system itself, how it works, but we are talking about what are people's responses to it?What do people think should happen here? And this was one of the most important developments of it. And it was not just. The people in Oaxaca, the more I did work on trying to investigate it and document it, there's part of the book, and also this was being done in people's [00:27:00] voices, the main voice in the right to stay home belongs to Rufino Dominguez, who was one of the founders of the Frente Indígena, who was my teacher in this, and so at one point they did knock the PRI out of power in Oaxaca and elected a governor, Gabino Cuei, who turned out to be not as good as people had hoped that he would be, but he was not the PRI.And he appointed Rufino, the head of the Oaxacan Institute for Attention to Migrants. So here was Rufino who had, was a left wing radical who spent his whole life opposing the government in Oaxaca, who then joined it for a while until he could no longer stomach what was going on there and had to leave.But. Pushing for that kind of political change in Oaxaca. There's another part of the book that talks about the miners in Cananea near the border with the United States. And their Effort to try to. win justice from this huge corporation that [00:28:00] was basically intent on destroying their union. And when they were forced out on strike, those miners also had to cross the border to Arizona to become workers in Arizona to survive.Again, you know, you see how the system is working here, but they also were talking about what kind of political change has to happen in Mexico for the right to stay home. to become reality. And that movement in Mexico grew strong enough so that, you know, after The Right to Stay Home was published, some years after, since it was, as you said, 10 years ago that Andrés Manuel López Obrador campaigned.He went all around the country speaking in every little tiny village that Mexico has, practically, in the course of four years. And one of the main things he talked about was the right to alternatives to forced migration. And I was there in Mexico City in the Zócalo when he took office. He finally won it.I don't want to go into all the things that had to [00:29:00] happen for Andrés Manuel López Obrador to win an election and become president of Mexico. But in his, in his inaugural speech as he was being sworn in, he talked about, we are going to make Mexico into a place where Mexicans can be happy living, where you don't have to go to the United States in order to survive, and I think you can talk about the, Things that the Mexican government has not been able to accomplish in the last four or five years.But I think one thing is beyond question and that is that that has been the main direction of the policy of the government of Mexico in that period of time because that's what got him elected. was this idea that, as he said, we are going to reject the liberal, neoliberal hypocrisy of the last six administrations in Mexico, meaning no more trade agreements like NAFTA, no [00:30:00] more opening Mexico up to U.S. corporations to come in and make money and as a result of which everybody's going to have to leave, that there had to be some kind of different direction in Mexico. So, in a way, I think that. Maybe that book, The Right to Stay Home, was like a little grain of sand that joined with other little grains of sand like it in helping to move forward that process of political change, because it happened on really on both sides of the border.Gosh, millions and millions of Mexicans who are living in the United States. So the process of political discussion that goes on about the kind of government Mexicans should have happens not just in Mexico, it happens here too. You know, part of Mexico is here on this side of the border. So you know, the book, and the book actually was published in Spanish and in Mexico as well too.So I think that it talked about things that were very important to people. [00:31:00] At the time, and that people are still debating about what has to happen in order for the right to stay home to be a reality. And I think it's something very important for people in this country to listen to and to think about as well, too, because in all the debates about migration that happen in here in the U.SThere's not a lot of attention that's paid to this whole idea of the two sets of rights, what has to happen. You know, certainly, you know, there are people like Trump and the right wing of the Republican Party that just, you know, never going to talk about anything like this. But even among Democrats, even in the Biden administration, you know, it's really too much about how to manage the border, you know, which basically boils down to how many people are we going to detain and deport.Rather than thinking about what kind of [00:32:00] world do we want to live in. Therefore, what kind of places migration going to have in it? ⌘ Chris Christou ⌘ is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.Chris: Yeah, I mean, it's, it's it's been fascinating reading and rereading this book in, in, in part to be able to give voice to not just migrants and not just migration issues in the places that people move to or migrate to, but also in the places that they, that they leave behind and the voices of the people that they leave behind.And you know, I think for. Many North Americans, especially those who are first or second generation citizens of those countries of Anglo North America, of Canada and the United States, that these are, these are the stories these are the voices that that maybe they haven't heard of in their own families as well.And so, you know, you started to mention a little bit about this. the kind of superficiality, perhaps, if I'm, if I can say it in that, in those terms, of the [00:33:00] political conversation around migration in the United States, in Canada, and perhaps even in Mexico. And so I'd like to ask you about the reception and perhaps the fallout Once the book was published, and I'm curious how the declaration to the right to stay home or the right to not migrate has altered at all the political or social social landscape in rural Mexico, you know, at least in terms of the people that you know in these places.And also if there was any response, any, any ground shaking movements as a result of the book coming out among activists in the United States. David: Well, I think that the book contributed to an important change. In the immigrant rights movement in the United States here, because, you know, having participated in that movement as an activist [00:34:00] for, gosh, 40 some odd years now, maybe more, Immigration Reform and Control Act in 1986 with the so called amnesty law.Which not only gave amnesty to undocumented people, but also made it illegal for undocumented people to work in the United States after that and started the whole process of the border militarization. In fact, you know, the negative parts of that bill were so bad that many people like myself opposed the bill, even if it had amnesty in it, saying that it was not a this was not a good deal.And I think that over time. You know, history has proven that we were right not that amnesty was unimportant and not worth fighting for, but that the price that we paid turned out to be much higher than people were willing to give it credit for, you know, at the time. But what was also really missing from that debate, for instance, in [00:35:00] those years, was any sense that we had to really deal with and think about the causes of migration and the roots of migration, the displacement.It was really all about the status of people when they were here. You know, should it be legal or illegal for people to work? Should people get papers or should people not get papers? And that was a very limiting Conversation, because what really, what it really meant was that it could not acknowledge the fact that the migration from Mexico is not going to stop.For instance, the, in that, in that bill, the, the qualifying date for amnesty was January 1st, 1982, meaning. That if you came before that date, you could apply for the amnesty and get legalization, and if you came after that date, you couldn't get it. For people migrating from [00:36:00] Oaxaca, for instance, almost everybody came after.So all the Oaxacans who came to the United States, hundreds of thousands of people, millions of people really hardly anybody. Qualified for amnesty because of that bill, which is one reason why legal status is such an enormous question for the Oaxacan community here in the U. S. So it, the, the discussion of that bill didn't acknowledge that and also by setting that date, it was, I think, very cynical because Mexico had what was called the Peso Shock in 1982, where the economic crisis in Mexico got so bad that Mexico had to devalue its currency.And what that meant was that thousands, hundreds of thousands of people in Mexico lost their jobs and had to come to the United States. And by setting that date, January 1st of that year, what you were really saying is, none of those people are going to qualify for amnesty. So they were [00:37:00] already here. But also it didn't acknowledge that, you know, in the, that, that bill set up a a commission to study the causes of migration, supposedly.And that commission came back and recommended the negotiation of a trade agreement between the U. S. and Mexico. And it said, well, in the short run, maybe this would result in the displacement of a lot of people, but in the long run, it would lead to the economic development of Mexico, and then people would have jobs and they wouldn't have to come here.Well, that was another very, very cynical kind of thing, because the negotiations of NAFTA started not long after the report of that commission, and in fact, NAFTA did lead to the displacement of millions of people in Mexico. There were four and a half million migrants from Mexico living in the U. S.when NAFTA went into effect and by 2010 it was [00:38:00] 12 and a half million people. So an enormous increase in people and the rise in Mexican living standards. Never happened. Well, that's not true. When López Obrador finally came into office he began taking measures to raise wages and raise the living standards in Mexico, which previous administrations had resisted bitterly because they wanted to attract investment.And things have started to improve economically for workers and farmers in Mexico a little bit. But up until then, so being unable to face the roots of migration and its connections to corporate America and the way our government was on the one hand producing migration or doing things to produce migration on the other hand making The status of migrants, illegal criminalizing it here.It was a really, a very difficult debate for people in [00:39:00] the immigrant rights movement. As a result, a lot of organizations said, well, MSD, we need MSD. Let's just forget about a lot of other stuff. Let's just get down to seat on what we paid a really bad price for it. Today I think there is a lot more discussion in the immigrant rights movement about what happens in Mexico and Central America in particular that causes people to come to the United States.I think still there's not enough of a willingness to deal with the economic part of it. the poverty. So these days, the way it gets dealt with is mostly by talking about the violence in Honduras. For instance, San Pedro Sula, which is called the murder capital of the world. You know, I wrote a whole article about how did San Pedro Sula become such a violent place to begin with?And what did it have to do with U. [00:40:00] S. companies going and growing bananas in Honduras? But in any case it gets put down, I think too much to violence, to the exclusion of the causes of the violence. What is the, what is the root cause of violence in Central American countries? The Civil War in El Salvador was fought about who was fighting on what side, what kind of changes were people proposing.The more you unpeel it, the more you look at it, the more you see that this is really, again, about the economic and political relationship between the U. S. and China. Those countries. And so I think that books like Illegal People, like The Right to Stay Home, played a role in trying to get us to look more at this as a whole system, what produces migration, and then criminalizes migrants here.I think that it's a very [00:41:00] limited accomplishment. Because we still have an extremely unjust immigration system. You know, we all hated Trump and the detention centers and, and his racist orders. But the reality is, is that we have more people crossing the border this last year than any other previous time in our history.And we have thousands and thousands of people living in detention. In the United States in detention centers and in detention centers on the Mexican side of the border. And this is under a democratic administration. So, I think that we have to be real about how limited our impact has been up to now.But, having said that, I think it is still a big advance for us to be able to talk. in this country, in the United States, about the roots of migration, and also be able to reach out to organizations and people and communities in Mexico and talk about, well, [00:42:00] okay, what is our, what should our relationship be?Well, how do we work together? How are we going to be able to try and change this system together? I think those efforts are kind of only starting, really. I don't think there's nearly enough of it, but I think that's the future. That's where the change is going to come from. Chris: And I can't stress enough, you know, how devoid of complexity and nuance most any political conversation has these days, and that most people don't go looking for it, in part because You know, most people haven't been taught.So, you mentioned a little bit earlier, as you wrote in, in your book, The Right to Stay Home, about the consequences of mining companies, as an example, in, in Mexico. Foreign owned mining corporations. And Here in Oaxaca, it's very well known that these corporations undertake geological testing without the [00:43:00] consent of communities, that they lie to the communities about concessions when trying to push their way into the territory, and then sponsor community violence by dividing the people against each other through bribery, corruption.Intimidation, threats, and sometimes assassination. And so, I'm curious, first, if you could offer a little bit more of what you've seen in this regard, and secondly, why do you think that in this example that, you know, Canadians, in the context of the one particular mine here in the Central Valleys of Oaxaca, is a Canadian owned mine, why they have no idea that this is happening on foreign soil in their names?You David: know, I wrote a long article about San Jose del Progreso in the Vice Centrales in, in Oaxaca, and Fortuna Mine there, which is a Canadian, Canadian company. And I think this is [00:44:00] another way of seeing what this kind of, just to use shorthand, this free trade arrangement between the US, Canada and Mexico, what it really means for people on the ground.Mexico in previous administrations changed this mining law so that it became possible. And the purpose of to make it possible for foreign corporation to get a mining concession anywhere in Mexico and develop a mine without having to get the consent of the people who live in the community around it.Basically saying that, you know the Mexican government was entitled to sell off these concessions regardless of what the people there thought about it. And so the purpose of this was to, again, attract foreign investment into Mexico. This is part of the neoliberal policy that says [00:45:00] that the economic development policy of Mexico should be to sell pieces of Mexico to foreign investors, to foreign corporations.And supposedly this money is going to make life better. For people in Mexico well, first of all, it's a very corrupt system, so the selling of mining concessions involves, you know, millions and millions of dollars that wind up in the pockets of those people who grant the concessions. So it was a source of enormous corruption in the Mexican government in granting those concessions and in passing that change in the law to begin with.And then in fighting for changes in the legal system, the free trade set up, those mining corporations could then, basically, it gave them not only a kind of impunity against communities that protested about it, but in which they could even sue the Mexican government. If the Mexican government tried to stand in the way and say, well, you [00:46:00] can't develop the mine, then the mine could sue the Mexican government and say, well, you deprived us of potential profits and you owe us millions of dollars.And there were decisions like the metal cloud decision that allowed for this kind of thing to happen. So what this meant is on the ground, you have mining mining concessions sold and mines being developed all over Mexico. In the face of local opposition, and the mine in San Jose de Progreso is a really good example of that, where you have a Canadian company that comes in and says, okay, we are going to, in fact, they weren't the originators of the mine, they basically bought a mine that had been played out by previous owner.And so we are going to dump a lot of money into this and we are going to make it a producing mine and the impact on the community. We don't really care. And so the impact is really enormous. You know these are open pit mines. They're a scar on the land. They [00:47:00] contaminate the water, the aquifer, so that these farming communities can no longer support themselves in the same way.In order to develop the mine, what they do is they divide the communities. And so, as you said, in San Jose de Progreso, they bought off the town's, the town's government who basically gave the company permission to do whatever it wanted to in spite of local opposition. Then when local opposition got organized to, to oppose it, the company cooperated with the with the local leaders that it had bought off to basically go after those leaders in a very violent way.So, Bernardo Vazquez. who had was from this community. He had actually gone to the United States and become a farm worker in Petaluma, in California. And then seeing what was happening in his community, went back to San Jose de [00:48:00] Progreso and to and began leading the opposition. And he was then ambushed and assassinated.Other people in his, around him were also killed, and then the violence went both ways. People on the other side got killed. And so this whole community became a warring camp, camps against each other. You know, I remember when I visited there, there are two taxi companies in this community. There's a taxi company that's associated with the People who are pro mine and the taxi company is associated with people who are against it.And you better not get into the wrong taxi because you could, some terrible things could happen to you. I took pictures of these threats that were spray painted on the walls of, some of the irrigation canals there, Bernardo Vasquez, your time has come, you know that was before he was assassinated.A lot of the people who work in the mine come from somewhere else, some of them from Canada[00:49:00] but it takes a few of the jobs in hand somehow. to certain people in the community there as a way of buying them off and giving them a stake in the continuation of the mine. And so what happens is that you have a community that's a continuing, a continuous war with itself.And this happens all over Mexico. In fact, it's not just Mexico, this is happening in El Salvador, it's happening in Guatemala, and actually mostly by Canadian companies. So you ask, do people in Canada know about this? I think there are some journalists like Dawn Bailey who have Canadian journalists who have tried to write about it, and tried to make people in Canada aware of it.I don't think that most people in Canada have the faintest idea of what those corporations are doing, and that's because I think the corporate media in Canada has very little interest in showing that, partly because, you know, they have the same basic set of economic interests that the mining corporations themselves do.[00:50:00] Probably share, same shareholders, who knows? In any case That's something that could happen and that should happen if people in Canada became more aware of what these companies were doing and then began taking action in Canada to try to restrict them. I think it would have a big impact on the ability of these communities in Oaxaca to survive.I think that San Jose the Progresso is going to be a war with itself and this continuing political violence is going to happen. Until the company, basically until the company leaves, really. I don't see any other solution, I don't see how the mine can continue operating there under any ownership and not have this war taking place there.So, but I think that the way to get that company to leave is for people in Canada to take some action in cooperation and in solidarity with the people in that [00:51:00] community. So, maybe by Organizing delegations from Vancouver or Toronto down to San Jose del Progreso would be a way of helping that to develop.That's possibly something that might happen, but basically you need that relationship in order, I think, in order to stop this from happening. Chris: Hmm. Thank you. Yeah, and you know, of course it just ends up contributing to migration, right, and exile, displacement within those communities. And and so I'm curious, what do you think the right to stay home or the right to not migrate can offer us as modern people, as citizens or migrants in the context of the current crises and perhaps the crises to come?You know, you mentioned that Immigration the numbers, the number of people coming into the United States over the last year has just been unprecedented. The number of migrants [00:52:00] flowing through Oaxaca, for example, in Southern Mexico right now is unprecedented and it really seems, you know, like.not just my opinion, but in terms of statistics and predictions and all of these things, that it's only going to get more unprecedented. So I'm curious what you might, what you might think that this, this declaration, the right to stay home or the right to not migrate, might offer us going forward. David: Well, I think it offers us something to fight for.That it gives us a vision of what a future could and should look like in the communities where displacement is taking place. In San Jose de Progreso, for instance, the right to stay home means a community that's not at war with itself, which means that the mining operation has to end. But, Ending the mining operation doesn't necessarily mean that people are [00:53:00] going to have an educational system or a health care system that's capable of meeting their needs.So you need political change in Oaxaca, San Jose de Progreso, and Mexico in general, that is able to deliver those things. For people. I think we could take that same thing and and look at people coming from Venezuela. There are a lot of Venezuelan migrants who are crossing Mexico coming to the U.S. border. On the one hand, the U. S. government is sort of a little bit more friendly. to Venezuelan migrants, although it's still doing whatever it can at the border to try to keep people out. Because, you know, this gets used in the media in the U. S. as a way of saying, well, this is the proof that the socialist government in Venezuela is incompetent and corrupt and ought to be removed, which has been U.S. policy for a long time. But in reality, the economic problems in [00:54:00] Venezuela would certainly be a lot less if Venezuela wasn't subject to the U. S. sanctions regime, which is basically sought to strangle the Venezuelan economy. And so the people who are leaving Venezuela, whether they're middle class people who are, you know, fed up with the problems of Caracas or whether they're poor people who have you know, have to migrate in order to survive those are due to U.S. policy again. So really, the right to stay home means in the United States that people in the United States, progressive people especially, have to seriously take a look at what the impact of U. S. policies are on the people that are being subjected to them, and to begin with, cause no harm.That would be a good starting place to stop those policies that are actively producing migration. You know, the people who drowned in the Mediterranean, those 600 people who [00:55:00] drowned in that horrible boating accident, who were they? A lot of them were Afghans. A lot of them were Iraqis. Why were they leaving?What were they doing on that boat? They were the product of that U. S. war. Now, I was a very active, you know, opponent of, of the war. I went to Iraq twice to try to make connections with trade unionists and other people in Iraq who were trying to fight for kind of a progressive nationalist solution to the economic problems of Iraq in the wake of the occupation to end the occupation.But you know, that's kind of what we need. We need to take responsibility for the impact of what this government has done. When we take a look at what the, what is going to happen to the people of Palestine and Gaza, [00:56:00] Under the bombardment, you know, if people were able to leave Gaza, there would be literally hundreds of thousands of people going wherever they could.And the Middle East simply in order to get out from under the Israeli bombs. And those bombs are coming from where? They're coming from the United States, that military aid package. You know, you cannot have a military policy and a military aid package the way the U. S. passes them without its having enormous impacts on migration, on the displacement of people, and at the same time it also Produces impacts here in the U.S. that we also need to take a look at and see what the relationship are. You know, people migrate in the U. S. as well, too. We have factories to close when Detroit stopped being an [00:57:00] auto manufacturing center and the Factories in Detroit closed, the car factories, thousands and thousands and thousands of auto workers became migrants in the U.S., going from city to city to city, looking for. So the price of the economic crisis that exists for us isn't felt just by people in Mexico or Palestine or Iraq. It's felt here in the United States and in Canada too. These problems They require a political solution, you know, they require us to organize ourselves in a way that is strong enough to force political change on our government here, so that it takes responsibility for the past devastation.And the past displacement and also stops doing the things that are going to keep on causing it in the future. And then I think we can think about kind of repairing the world. I think we have to repair the world, too, after this. But the first thing we have [00:58:00] to do is we have to stop hurting it. We have to stop the damage, and that means having enough political courage and enough political power to make our government do that.That's a tall order. That's a tall order. I don't think it's something from today to tomorrow. But it's a long process. You know, I'm a, I grew up during the anti Vietnam War movement and the civil rights movement, and I saw this country at a time when it was possible and when we did it. So I'm the optimist.I believe that it's within our power to do this. But looking at where we are right now, I think we have a long way to go. And so, you know, if what I do contributes is granito de arena to it, you know, a lo mejor. Chris: Thank you so much, David. Yeah, it's definitely really, really important to hear words such as yours in a time of deep nihilism.[00:59:00] And, and also the absence and I think the disregard of, of Elder Voices in our midst and in our movements. So, I deeply appreciate your willingness to speak with me and, and to our listeners today. And just finally, before we depart, how might our listeners find out more about your work?How might they purchase your books? David: I have a blog and a lot of what I write and the pictures that I take are up there and I put them up there pretty regularly. And so the way to find it is to Google my name, David Bacon, and the blog is called The Reality Check. And so if you Google that together, you'll find it and that's how you can connect.Chris: Thank you so much, David. David: My pleasure. Thank you for having me. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe
Today on the IC-DISC show, join us for an insightful discussion with Laurie Barkman, a renowned CEO and author of The Business Transition Handbook. As the acclaimed Business Transition Sherpa, Laurie sheds light on the reality that all business owners will exit someday. We explore the challenges of selling a business, like why most small businesses don't sell successfully and the potential pitfalls of an exit. We also discuss relying on experienced advisors and how understanding taxes and markets can aid planning. Laurie shares invaluable advice on navigating this critical phase successfully. This episode is a must-listen for any business owner planning to navigate their business transition.   SHOW HIGHLIGHTS Laurie and I discuss her journey as a CEO and author of The Business Transition Handbook, providing insights into the realities of business transition. She highlights the hard truth of selling a business and how eight out of ten small businesses fail to do so successfully. We talk about the common pitfalls of business transition, the five "D's" that can disrupt a business, and the value of creating a satisfied client base. Laurie explains the unique challenges law firms face during business transition and offers her strategies for a smooth transition. We delve into the importance of a clear exit plan and the different options business owners have when transitioning their business. Laurie advises focusing on three primary goals during business transition: business, personal, and financial. We discuss the analogy of business transition planning to having a sherpa guide you through a treacherous terrain, making the process seem less daunting. Laurie emphasizes the significance of accountability in business and the benefits of having industry expert conversations during transition. We explore the upcoming online course based on Laurie's book that she plans to launch in the first quarter of 2024, aiming to reach a wider audience of entrepreneurs. We discuss the importance of having an experienced network of professionals to help businesses reach their goals and create a successful transition plan. LINKSShow Notes Be a Guest About IC-DISC Alliance About The Business Transition Sherpa About The Endgame Entrepreneurship Course GUEST Laurie BarkmanAbout Laurie TRANSCRIPT (AI transcript provided as supporting material and may contain errors) David: Hi, this is David Spray. Welcome to another episode of the IC Disc Show. My guest today is Laurie Barkman from Pittsburgh. Laurie is a really fun and interesting guest. She just released her first book entitled the Business Transition Handbook, and she is called in many circles the business transition, the idea being that a Sherpa guides somebody on a journey over a period of time rather than just a one-point event in time. Laurie has an impressive background as a former CEO of a large privately held company. She has a bachelor's and an MBA, and we talked about mistakes business owners make when they're transitioning their business. We talked about the sober reality that 100% every last business owner is going to exit their business and the question is will it be on their terms or someone else's? So there is some great advice and information for any company, any business owner who is looking to exit their business at some point, and I think you'll get a lot of value from this. Good morning, laurie. How are you today? Laurie: David, hey, great to see you, I'm awesome. David: That is great. Now, where are you located today? Laurie: I'm in the great city of Pittsburgh, Pennsylvania. David: Yes, now are you a native of Pittsburgh. Laurie: I am not. I am not. I'm an adopted daughter of the city. I'm originally from Albany, New York. David: Okay, so Ithaca wasn't too far to go for you. Laurie: That's right, it was not. It was only about three hours away. David: Okay, and then what brought you to Pittsburgh? Laurie: After graduating from college, my husband and I moved around Pennsylvania with different corporations. I was with Aigner Sol Rand Company and I was with a division in Shippensburg and after four years decided to get my masters, get my MBA, and decided to move to Pittsburgh. My husband had gotten a nice job with McKinsey and company and here we are. Okay 25 years later. David: You got your MBA in Pittsburgh, right at Carnegie. Laurie: Mellon. I did at Carnegie Mellon okay. David: Well, let's dig into this. So the business transition Sherpa. Where did this nickname come from? Did you come up with this yourself, or did somebody else give you that title? Laurie: You know, it's kind of an amalgamation of things. I remember talking to my husband about a trip that he and I had taken in 1997. We did a trek, we did a hike, and this idea of somebody guiding you and stuck with me. And as I was thinking about what I'm doing, working with business owners, it's not just one moment in time, it's over a period of time, and I really feel like my role is to be a guide. I don't have all the answers. I have a path, I have tools and, just like a Sherpa and the great work that they do, it's that same idea is we're on a journey together. Entrepreneurs build their business, sometimes on their own, but most likely not. Entrepreneurs are building their companies with other people, and so when they get to this other side of the mountain, so to speak, and thinking about their next chapter, why would they go about that by themselves? And I want to be the person that helps guide them. David: Yeah, I love the description of what you do because it picks up the fact that it's a journey, it's not a point in time and it's tough to do by yourself. In my experience I've just closely held small to medium sized business owners. Only sell a business once right, that's right. Laurie: We can regret things in our experience. We can regret what we do and wish we did something differently, or we do not take an action and we regret not taking that action. And my book the whole reason I wrote the book the business transition handbook was to help people proactively so that they don't have regrets. It's a very big, lofty goal to not have regrets in life, but if we can be proactive and we can understand what it takes to build a more valuable, transferable business and then understand what resources we might want to have on our side. I like to say, David, you can't do exit planning when you're exiting. It's just too late. So if you give yourself a time and space to work on having a more valuable, transferable business, the good news is that it's going to be a lot more fun to run your company. It's going to have an economic benefit to you and then in the future you'll have more options. You'll have more valuable options too. David: Yeah, I really enjoyed reading your book. In fact, behind you there, I believe, there's a blown up cover. Yes, it is. Laurie: That's right. Yeah, it was really interesting to write the book. I guess I could say it's my first book. I don't know that I'll have a second, but this, no matter what, is my first book and it was challenging, but at the same time, it was fun. It was like a giant puzzle. Once I mapped out what I believe the big pitfalls are right. So the subtitle of the book is how to avoid succession pitfalls. Each chapter in the book and I don't know if you picked up on this as you were reading it but each chapter is a pitfall. What do you want to avoid? And so what I tried to do was put myself in the reader's seat, the entrepreneur's seat, and how I developed that perspective was from my own experiences, client experiences and then integrating case studies and other learnings from my podcast. I have a show called Succession Stories that you will be a part of soon, and there are so many valuable things to learn from other people's wins and losses and challenges, and that's what I have always sought out to do with my show. The show is about three years old at this point and when I was writing the book, I had, I think, about 120 recordings, so that's a lot of knowledge and content. And what was so fun for me, david, was I was going back into the archives of a discussion. Every show I have has a transcript and of course I don't remember everything. But when I would write a chapter and I would need a case study, I had space for a case study in that particular spot, for a particular topic I would think, okay, which shows, should I go back to dive into those transcripts and then find these golden nuggets and I it was just so interesting to have the recall in writing of oh yeah, you know, she said that was an amazing conversation, and you, my memories are not long, right, we have so many, only so much storage in our brains, exactly. So it was really cool to go back to that body of knowledge that I had created, and I began to appreciate that body of knowledge even more. I think this case studies bring the book to life. I'd like to hear what you think about that, but that's that's what I hear from my readers is they love the, the learning and the concepts, the business concepts in the book, and they think that it's like me having a conversation with them by sharing these case studies and stories along the way. David: Yeah, I agree there were a number of. I mean, there was a lot of great stuff in there, but some of the particular ones I kind of wanted to dive in with you on is so this is a little bit of a quiz to see how much of your book you remember Do. When somebody, when people, decide to sell their business, do they just automatically sell it or do some portion of them? Are they unable to sell the business? Laurie: There's a mix, as you can imagine. Yeah, what percentage are you? David: able to actually sell it in the small business space. Laurie: It's a surprisingly low number. You know the statistics out. There is that every two out of 10 companies in the lower middle market actually sell. So that leaves eight out of 10 not selling. And you could ask, well, why is that? And there's a lot of reasons why. Sometimes along the way we have the five D's kind of pop up, or always also known as the 60s. These D's are taboo things, sometimes we don't want to talk about them, but they're real and we do need to talk about them. It could be the debt of an owner. It could be divorce disaster like COVID you know we put it in that category or disaster like fires and the business or the market has experienced is something traumatic it could be. Did I say divorce already? Divorce is another D. So these D's are something we can plan for. We don't want them to happen but we do need to be prepared. So if we're not prepared for the 60s, they can really wreak havoc on a business. Particularly death. The death of an owner can throw a business into a tailspin and I did cover that at some you know level in the book with a couple of episodes, snippets of people who had experienced that. The other reason why businesses don't sell, david, is because they're just not transferable. If they are so owner dependent and owner centric, that can be a really big reason why it won't sell and it's hard for owners to see that. You know, sometimes owners think that they are the secret sauce. I have a business assessment that one time I'm marketing. The owner of a marketing firm took this assessment and she said oh my God, she goes. I didn't realize I was standing in the way. She thought she, you know, she's a photographer, she's the creative, she's got the client relationships and she realized at that moment oh my goodness, I am making my company less valuable. So there's a pivot in our brains when we recognize some of the elements that help create a more transferable business and companies that have an owner who don't necessarily see the business as an asset, they see it as a job or they see it as a piggy bank. Those are different things, because if you see your business as an asset, you're going to want to create value in that asset over time. You're also going to want to protect that asset. If it's a job, right, I just accepted what is. And it's not growing, it's staying the same. Maybe you're not reinvesting in the business. You're not reinvesting in yourself or your people. And let's just jump to an example. I have a client who, in his favor, had very loyal people Once he got to his sixties, as did his key employees, and everybody's looking to retire. Buyers looking at that business said oh my goodness, how transferable is this business when all the key people are going to retire at the same time? So he had saved money, so to speak, by not bringing in new people, kind of underneath and over a period of training. So he recognizes that now, but it's too late. David: Sure, yeah, I was having this conversation yesterday with a group of CEOs and we were talking about enterprise value, increasing it, owner dependency, and there's a guy that owns a small boutique intellectual property law firm and they were asking him how sellable law firms are in general and he said not very and from his perspective that he said there's things he could do to make the business run without him better. But his model that he really likes to work with his clients directly, he doesn't like an associate between them and so that in his and a couple of his clients are actually in the room and they're like, and he's like, yeah, if I had like some associates that could potentially lower the fees to a client, you know, because there's more leverage in the client. So like no, we'd rather pay more and have you. So I've noticed in professional services there's this tradeoff between what. If you really want to have delighted clients, sometimes that's at odds with making your business the most valuable. And I know my business is like that. I mean I've got huge owner dependency issues because I am the key relationship, but I've gotten peace with the fact that it's just not very sellable and I like being a craftsman and just like it hit. Laurie: Yeah, and that isn't that the important thing. If you recognize it and are accepting of it, hey, you know what? That's okay. Not every business is going to be an asset to sell to another buyer and that's totally okay with the law firm. Just to circle back, because I do have some professional experience with law firms, one of the catch 22 things about law in particular is the code of ethics that they have to abide by. David: The non-competence, the non-compete. Laurie: Yeah. So if a lawyer leaves a law firm, they you know there's certain restrictions on when they can inform their clients and taking their clients with them, and I know there's lots of gray areas. I'm not going to talk about all of the nuances there. My point is that with law firms also there could be other types of professional services that run into this, but in law in particular what clients will say is that they hire lawyers, not law firms. Yeah, and so when you're tied let's just like you're talking about with that particular partner that the clients are willing to pay more because they want to work with that particular partner it could be highly likely that client would jump and go with them, no matter where they are. That can be particularly concerning for an acquiring firm, knowing that they may have some stickiness to certain clients and then they may not have other stickiness. So it really is dependent If there's a firm that's acquisitive and looking at buying other professional services, whether it's law or any other profession. I work with engineering firms quite a bit and in engineering firms there might be contracts but those contracts are not assignable and it might influence not only the type of transaction that we would do, whether an asset sale or entity sale, but it also would influence potentially on the transition for the sellers and how long they might want to stay, or the buyers might want them to stay under either an employment agreement or consulting agreement. It could also influence whether or not there's an earn out. You could structure an earn out, for example, if the buyer wants to structure an earn out to ensure a certain percent of those contracts are assigned over whatever time period or year and a half. So it could influence it in a big way. David: Talk to me about, and thank you for that. Talk to me about what you enjoy most, about being a business transition or not. I shouldn't say A, but the business transition, Sure. What are some of the aspects of that in working with those companies that you just find particularly satisfying or rewarding? Laurie: One of the things that I experienced as a CEO of a privately held company was the loneliness and being in my own head and having big questions and not really knowing where to go. I find that I bring kind of this EQ, if you will, of smarts and know-how and experiences and questions, and then I bring excuse me, the IQ around that, then the EQ, which is more of the emotional side. I've always been a kind of person that people confide in. Obviously, this is a highly confidential type of scenario but, I talk with my clients about the business. for sure, that's the practical side of everything, but we also talk about the personal side. We have to talk about them because remember earlier in our conversation I talked about regrets and there's some alarming statistics out there about experiencing regrets at least one year after the sale. I'm kind of on this mission to help business owners find clarity, and find clarity in a way that makes sense for them, for their family, for their stakeholders, which includes employees and other shareholders and their communities that they serve. A lot of people feel after a transaction that they let so-and-so down. Maybe they let their employees down, maybe they let their communities down. I had a guy in my show whose family business fourth generation chlorine cleaning product was sold in grocery stores and he could not walk down the aisle anymore. He couldn't bear to see that product under another name or by another. He said, yeah, there was a pride. We used to the small town and we had our name on the baseball team and people knew who I was. The identity that this particular person had his family name was on the company. Identity is a really big part of it, david. People go through almost like a withdrawal If they're not excited about what's next, this pull factor, what's pulling you forward to your next thing? If we're not excited about it, it can be really. You can imagine worst case scenarios. Those things do happen. But the in-between space is not that great either, for what makes me feel that I'm helping entrepreneurs? I've always orbited entrepreneurs with a great respect for the risk that they take. I've come to know family businesses as a category. Also. There's the founder-led, family-led, privately held company. I've worked in venture backed, so no offense to venture backed folks, but they're not really a focus for me. I'm really focused on call it the bootstrapped or family-led companies where they're the everyday entrepreneur making it happen. The sense of clarity clarity on three core types of goals is where we focus business, personal and financial. There's a lot of work to be done there. I think that's what makes me motivated, makes me feel appreciated by my clients. They are awesome people. I work with some amazing people that are doing really wonderful things for their community, for their family. They have excellent intentions. They just don't know how to put it all together. I don't either. I don't have all the answers, as I said earlier, but what I do have is I have an awesome Rolodex and I have an awesome way to bring professionals together and collaborate and help my client assemble a business owner transition team advisory team to help them make big decisions along the way. Again, this clarity is the number one thing that I think my clients benefit from. David: Yeah, no, that's really important because, as you talk about in the book, unfortunately 100% of the business owners are going to exit the business, just like 100% of us are going to exit this earth. I was thinking when you were talking about that fourth generation gentleman who couldn't walk down the grocery aisle, but it's one of those things, but it wasn't like he really had. He must not have had a great way to avoid that, because he wasn't going to run the business forever. So you come into what are the options? Basically, if somebody's not immortal, what are the options to exit a business? Because there's several paths, right? Laurie: Yeah, absolutely. Just to finish the statement with 100% of business owners are going to leave one day, there's a big however, you know. However, very few are planning for that day To leave on their terms, and when we have a plan, we're more likely to achieve it. That's just how it works, right. That's why we do strategic planning for businesses. So why don't we do strategic planning for our exit or our transition? And that's really the main advocacy I have in the book is let's have a process, let's have an understanding of what it takes. So to your question I think I address it quite a bit in one of my favorite chapters, which I think is chapter six, which is who should own your business after you, and it shines a spotlight on the different kinds of buyers. When I do workshops, david, I do webinars and I do in-person workshops, and I put up this slide and I have essentially three columns and I go through some examples of each bucket three buckets and people's eyes light up, they take out their camera, they start taking photos of this one particular slide and it is enlightening because we hear about certain kinds of buyers and we don't know that there might be other options out there and maybe not every option is a fit. So what I advocate for is let's understand what are some exit options for your company and which ones might be a better fit than others, and why let's prioritize those and let's come up with option A, b, c and if option A doesn't work out, then we know we've got an option B. It's just like in any negotiation If you have the power to walk away, then you know you're going to get the right deal for you. It's when you don't feel that you have any other options that you feel pinched. So that's why back to the conversation about the five or sixties if an owner passes away and the company is going in a tailspin, with employees leaving and the spouse doesn't know what to do, and they've inherited this company. They've never worked in it, it's a mess and the buyers come out like sharks and there's chum in the water. We want to avoid that. We want to avoid that. So, yeah, I mean we could talk about what. Who are the different kinds of buyers, if you want. David: Sure, yeah, because I mean, I, just off the top of my head, we've got passing it on to the next generation selling it to the employees. A third party buyer? What are some of the other options? Laurie: Yeah, let me just frame it out and that way, visually, I'm kind of working left to right as I talked about these three columns and I put it in that order for a reason. So the first column is strategic buyers, the middle is financial buyers and the one on the right is related buyers. So the examples you mentioned, family and managers would be in the related buyers category. Typically speaking, that is going to be more of a fair market value type of approach to valuing the business, of what price you might expect for your business, and if you kind of go left on that chart then the price expectation should go up right. David: Strategic generally not always generally speaking, will pay the most. Laurie: And why is that? Well, and also, what's a strategic? So a strategic is an entity, it's a company, it could be a competitor, it could be a marketplace vendor, it could be a customer, it could be an adjacent industry to yours where they want to make moves, either geography wise, or into your industry, if they're not part of it yet. So those are strategic and, typically speaking and this was my experience going through a pretty big M&A transaction with a third generation company that we were acquired by a Fortune 50. And, believe me, they had an M&A playbook and when they're that big and they've done that many transactions, so for us it was understanding what's the fit, what will this look like? And for them, I'm sure, in their financial models, it was about leverage what assets do they keep, what employee teams might they cut and how do they gain some cost leverage? And so that's typical where these pieces of the business might be kind of bolted into something else. Maybe it's standalone, maybe it's bolted in, but that's typically why strategic can pay more, because on the back end, as they're modeling out their financials, they know what costs they're going to take out. We don't necessarily know that, but that's what they're looking at. Financial buyer most often we think of private equity firms, and private equity groups will invest on a time horizon roughly five to seven years could be longer and they'll want to buy low, sell high, and so in between, they're investing in that business to improve it, they're putting in management teams and they will take a larger entity, maybe keep it as a standalone and that would be a platform deal. And a platform deal may eventually have other firms acquired to tuck underneath it. Those acquisitions we call tuck ins or add ons. And because they are taking assets and putting them into something larger, you could say, oh well, that kind of sounds like the strategic. And the answer is, yeah, kind of does. So that's why, in a private equity deal, the hybrid, as we might also call it, could, from a multiple standpoint, look more like a strategic offer. So that's just a little financial nuance there. But typically speaking, private equity groups are going to be the biggest, you know, the biggest buyers out there. There's still a lot of dry powder and another big category that I like to spotlight. Well, there's two others I would put under this financial bucket. One is family offices might be investing in privately held companies in different asset classes. So, for example, I had a family office. Second generation was on my show and he talked about what he and his father's investment thesis is. And they're focused on warehousing, like storage, you know, storage unit for consumer storage so you can rent one for a year or whatever and put your stuff in it. So he liked they like that asset class because it has a recurring revenue model to it. And that's just one example. And what's really interesting, if you compare the time horizons for these investments, well, a family office is looking for a buy and hold, more likely than buying, selling a short period of time. So, as I said earlier about fit, this is where it's really important. If the seller doesn't want to be in a situation where it could be sold to the one fish and gobbled up by another. They want to be held for like a longer period of time and perpetuity. Then maybe they should look to you know, talking with family offices who are doing acquisitions in their space. So that's a category that is kind of under the radar and I just put a spotlight on in the book. And then the third one are ESOPs, which is a you know, think of it like an almost like a 401k program for your people. When they retire from your company, they're incentivized to stay, and when they retire they will get a distribution check, and so an ESOP is an interesting option for some other companies Again, not a fit for everyone, but it might be a fit for companies of a larger size with enough employee base, where, again, you're going to have a liability at some point to pay these people, so you have to be able to fund that. But what happens in that transaction is that the company becomes a tax-free entity, and so that's a real incentive, you know for companies to reinvest and acquire others, and it can be very positive for the culture too, yeah. David: I know quite a bit about ESOPs because you were kind enough to introduce me to Mike Silverman and in fact he and his partner, Matt were, I guess, in my podcast a few episodes ago and it's really interesting on some of the ESOP opportunities. And I'm glad you brought up the family office because, right, people don't think of that. Laurie: But when? David: I think about the. What I think of philosophically is the super family office. I think about Berkshire Hathaway's acquisition targets. But the problem is I think now they're up to where. When I started reading Warren's annual letters, they were looking for businesses with enterprise value, I think of like 25 million and up, and I think the last I checked it's half a billion or a billion and up. Just because $25 million companies don't move the needle for them. But yeah and it's kind of like their sales pitch is similar to the family office sales pitch. So I guess one way to think of it is, if you like being an aquire of Berkshire Hathaway but you're smaller than a half a billion dollars, then maybe a family office might make sense. But even then when you think about Berk acquisition requirements. They want a business that runs independently of them. They do not want to manage the business. So you're right back to. A business that can run without the owner is more valuable for everybody. Laurie: Yeah, they have the portfolio largely independent of each other. They've kept the brands, I think, pretty separate because they appreciate the brand and the competitive moat, as they like to call it, around that business. I think they look for companies that have a competitive market differentiation, so it makes sense that they don't muddle the water. David: Yeah. Laurie: Yeah. David: Have there been any positive surprises from writing the book that you didn't anticipate when you wrote? Laurie: it Surprises. Let me think about that. I think just the reviews have been so delightful and meaningful to me and I guess I just didn't think about it. I don't know that it's a surprise, it was just. Maybe I could say a surprise and delight just to see how this book is helping people or how they've shared told me that it's helping people. I think that has been a really lovely outcome. As an author, you put good in the world and you hope goodness comes back, or you hope that it's helping, but you don't really know unless people tell you, and so that's been really great, I would say. The other is with my clients. I have my clients and meet with them on a regular basis and I have clients that are reading the book and then when I meet with them they're like, yeah, I just read chapter five, let's talk about it. So this combination of I'm not going to quite do this myself, I'm going to read the book, I'm going to get knowledge, but I still want to work with someone to help me along the way, was really reinforcing that what I expected. I expected that, frankly, and I think it's important. I do think people can go through this book on their own and at some point in this call give, I'll give the listeners an option to how to make the most of it, but you can do it on your own. You can. What I think is human nature is we want someone to hold us accountable, and that's, I think, not again not necessarily a surprise, but very reinforcing. That is true and that's why just a kind of a pre announcement here I'm going to be creating an online course from the book so that it can help more people in a different way, and hopefully they'll watch the videos and they'll read the book, and I, what I'm aiming to do is reach a wider audience of entrepreneurs, not just the people who are, you know, three to five years out. This is really a book, I think. If you are beyond startup phase but you're growing your business, why not read this book and understand what it's going to take to create a more valuable exit when you're ready? So it's exciting. I'm planning to launch it in the first quarter of 2024. David: Oh, that is exciting. If somebody is interested in learning more about that is do you have any place for them to go yet, or are we too soon? Laurie: We are too soon, but that's a great idea. I should put up like a waiting list or something on my website, but the businesstransitionhandbookcom is the website page for the blog BusinessTransitionHandbookcom. Yeah, the businesstransitionhandbookcom is a page on my site, so they'll see all other pages too, but this is the landing page for the book, so what I might do is put up I'll put up a blurb at some point about awaiting this for the class. And yeah, no, I'm excited about it. Like I said, I aim to reach more people and help more people with it. David: Yeah, and you know that accountability is interesting, because one of the things I see with our clients is that one of the things that's interesting about our clients is that 90% of them have revenues between 10 and 100 million probably somewhere in the light of your clients and the vast majority of them do not borrow money. They've been financially successful enough. They've been able to, you know, internally find growth and because of in that, in addition to other reasons, and most of these also, it's a single shareholder, they don't have a board, and so these clients have zero accountability, like their only accountability is like to their family, to make sure that you know the monthly income is what they're hoping it would be. But you know, they don't have a bank to be accountable to, they don't have a board, they don't have other shareholders, so I can see where that accountability is something that they could be really helpful for them, that they don't really have anywhere else. Now, of course, they may have done that on purpose. Maybe they didn't really like being accountable. You know they were an accountable employee and then they borrowed money from the bank to start a business, so maybe they don't really like me. What do you think? Laurie: I have a client that's about 120 million revenue business in the call it food production space and he's very purposeful, has very good intentions for transition with his daughter over time and really wants to see her be successful in the company and grow with the company. And his partner, to his credit, said hey, not real name. You know, joe, you're going to want we should do a new operating agreement. You know your daughter's in the business now. She's doing a great job. We need a new operating agreement. And this operating agreement was sitting on my client's desk coffee stains. You know he literally had it in the corner of his desk. He told me he was there for nine months and then I met him in a workshop and then that was it. He said oh, that's it, I have to do something. I can't just keep looking at that document. And of course in the transition it's more than just the operating agreement. But it was so many other things too and he just the accountability was really good for him. He needed that. He really did because he had the intention to do it. It just was, you know, backburner and it was never the thing to do when all these other important things are common. Adam. David: Now that makes sense, and I just want to be clear businesstransitionbookcom or businesstransitionhandbookcom. Laurie: I just want to make sure I had it. Yeah, that's okay. It's the title of the book. Yeah, oh it's the. David: Okay yeah, I'm looking at the book. Okay, yeah, that is easy note to remember. What do you enjoy the most about your podcast? Trying to switch gears a little bit. Laurie: I love talking with people on my show about what's worked for them, what they've learned and what they would do differently and if I have an entrepreneur. I have two kinds of entrepreneurs that come on the show. One type is looking in the rearview mirror and that's where they'll get the lessons learned right. We really learn a lot from others where it just didn't quite go the way they would have liked and when they have successes, of course we learn a lot from that too. So that's one type of entrepreneur. The other type of entrepreneur is looking forward and I've started to have more conversations with entrepreneurs and I'm asking them questions about their legacy and how their intentions are for their transition and legacy, if they're open to sharing it. I've had a gentleman came on my show. He's in the HVAC space and he had let his company, his partner, know his intentions to retire in three years and it was almost like this huge weight was lifted off his shoulders and now that it's out there, they can create plans, they can work on things and it's a little bit freeing to do something like that. Other people who aren't quite ready to say what it is they want to do. We talk a little more generally about what's important to them as they think about transition and leaving a meaningful legacy for their stakeholders or family or employees, and I'm really enjoying those conversations. I also talk with people who are experts in the industry on some particular topic, like tax advisors, financial advisors, legal advisors, and those conversations are wonderful because then, as I build my Rolodex of professionals that are able to be the best fit for my clients, it's a wonderful way to do business development and people who listen to the show have. You know, not every listener becomes a client, but I have had listeners reach out. They've listened to succession stories for a year, two years, whatever it is, and they reach out and they said Lori, a longtime fan would love to talk with you. And the resources that are available from the show are on my website, like business assessments and different articles and knowledge articles give plenty of videos and ask to help people learn about different topics. So I feel like this body of knowledge. You know this thought leadership type of approach where if people listen, they learn about me, they learn about what would they do, and then maybe they want to follow up. You know is pretty exciting. So I really like that. I like when I hear from my audience. They tell me what's an interesting topic to them or questions they might have, and I think the learning is really the main thing. I'm a continuous learner I always have been and I find that with every show I'm learning something. You know, I'm learning something every time and I just love that. David: Yeah, and I've probably listened to half of your episodes. I suppose and you know that episode you have with Mike Silverman was really memorable that you know have had to introduce several clients to Mike, and so I think having the advisors on is also a great idea and that's kind of how you fit short of on my show, right? We're not talking about the ICDisc program at all, but you're somebody who my clients outside the ICDisc may find value to this conversation and yeah and I'm like you I love to hear, to hear, people's stories on the Colby. I'm an 8643, which I don't know. If you know the Colby, I do know the Colby. So I'm. That's what's called high fact finding. Okay, so I lead with the fact finding. So for me, I'm always more comfortable, you know, asking questions than answering them. Maybe that's from childhood trauma, where I was forced to answer too many uncomfortable questions by my parents. I don't know. Well, I can't believe how the time has flown by. By the way, what's your website? Laurie: My website is thebusinesstransitionsherpacom. David: Oh, okay, I like it. Laurie: Thank you, you know. I just wanted to mention David, because if your listeners are finding this topic helpful, that's good, you know, and then they probably might be wondering well, what's the next step? Or you know how do I sort of take small nibbles as opposed to biting off a whole arm, and I would recommend that. You know, I don't want people to feel overwhelmed, I want them to feel reassured that we have a process and we'll work with them to meet them where they are and I guess the you know. The next thing would be to reach out and whether they are in a mode of transition and planning, which is what I'll call pre-M&A right, not that they have to sell, but just conceptually. And then, for folks who are anticipating selling to a third party or a family member, you know that transaction somehow some way. So I'm a certified Mergers and Acquisitions Advisor and can help steer them on that path, from the practical side as well as the emotional side, to get a deal done that makes them happy. Okay, I like it. David: If people want to reach out to you, is LinkedIn probably the best way. Laurie: Yeah, linkedin's a great way. Let me know that you heard me on the show. That would be awesome, and I think, david, you'd probably love to know that too. And they could reach me on my website. As you said, the business transition Sherpa, there's a spot to book directly with me. We can connect via Calendly. David: Okay, and then what's the website for the podcast? Laurie: Successionstoriescom is the name of the show and again, you can find it directly on my website in the podcast section. All the catalog of the shows are there, but it's in every type of platform, so if you're Apple or Spotify or whatever you like, you'll find it. David: That's great. So here's the surprise question I promised you. Laurie: So I have two questions left. David: And so here comes the surprise one. So if you could go back in time and give advice to your 25 year old self, what advice might you give? Laurie: I think I should have bought a business. David: Okay, so you would have encouraged yourself to buy a business. Laurie: Yes, when I was 25 and I was graduating from my master's program. It was all about the next great tech startup, yeah, and creating that from scratch. And that wasn't me, yeah. But I knew I wanted to be an entrepreneur. I just didn't feel like that was me in that mold. And I think now I'm more attuned to entrepreneurs through acquisition, you know as a category, and I didn't mention them, but they also would fall under the financial buyer category and there are many of them out there, not just in the US but around the world, who are interested in being part of that succession plan for a founder next generation leader. David: If you do you ever listen to the my First Million podcast. Laurie: I'd spent a while, but I'm familiar with it. You like that. David: They had a guest on recently. That is probably certainly my top five favorite podcast interviews ever and it's about a woman Sarah I forget her last name, but she was getting her MBA and decided she was going to buy a business with and she had zero money. She was going to buy a business you like these real estate advertisements? Buying real estate with no money down. She was going to buy a business with no money down and it's just a fascinating story of the process she went through through in just an astonishingly wonderful interview that I couldn't recommend highly enough. So apparently she was able to somehow go back in time and give her a 25 year old self that advice because she managed to pull that off. That's very cool. Is there anything we didn't cover that you wish we had? Laurie: Well, I think just to reiterate for people that when time is on your side, you can make an impact on your future and give yourself the space to work on your business and not just in your business. That would probably be my main advocacy and surround yourself with people that can help hold you accountable to the process and meet you where you are. So if they are just thinking about it, trying to figure it out, trying to understand what's their business worth today, yeah, that's a great place to start to. You know, try to figure out and model. Where are you now, where do you want to be and what's the gap and how are you going to get there? David: That's awesome, Laurie. I really appreciate your time on the show and I appreciate you taking the time to be on here. Laurie: Well, David, thank you for having me. I know this is my second time around you and I talked on a different show. We did. David: Yeah, we did. Laurie: It's lovely to be back with you and reconnect, and I'm just so glad that you are sharing this content with your audience, and I appreciate you, thank you. David: Yeah, it is my pleasure. Well, I hope you have a great day. Laurie: You too. Special Guest: Laurie Barkman.
In today's episode of Building Texas Business, join us for a fascinating discussion with our guest David Fletcher, General Manager of Lone Star Sports and Entertainment. David gives us exclusive insights into the sports business industry, highlighting the economic impact of major sporting events on Houston. We learn about LSSE's role in the city's sports landscape and the excitement for the upcoming Tax Act Texas Bowl. David also enlightens us on why Houston is a major sports hub, touching on upcoming events like the college football championship and the 2026 FIFA World Cup. Tune in for a thrilling exploration of the fast-paced world of sports business. SHOW HIGHLIGHTS Chris talks with David Fletcher, the General Manager of Longstar Sports and Entertainment, about the intricacies and realities of the sports business world. David describes the significant economic impact of major sporting events on the business community, highlighting their ability to draw in substantial revenue and tourism. We discuss the role of LSSE in the Houston sports scene and its involvement in exciting upcoming events like the Tax Act Texas Bowl. David addresses some common misconceptions about the sports industry, revealing the hard work, long hours, and sacrifices behind the scenes. We delve into what it means to be a good teammate in the sports industry, focusing on traits such as being coachable, ready, and positive. David shares insights on why Houston has become a hotspot for sports business, citing its prime location, diverse population, and robust infrastructure. We discuss the upcoming national college football playoff championship and the anticipation it's generating in Houston. David gives a preview of the 2026 FIFA World Cup, expressing his enthusiasm for the global event to be hosted in Houston. I explore personal topics with David, such as his first job experience, his preference for Tex-Mex over barbecue, and his dream 30-day sabbatical destination. David shares his passion for skiing in Park City, Utah, expressing gratitude for the support and involvement of the Houston community in their work. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS David Fletcher About David TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet David Fletcher, general manager of Longstar Sports and Entertainment. David shares his insights into the business of sports, as well as the economic impact major sporting events can have on the business community. David, I wanna welcome you to Building Texas Business. Thanks for coming today. David: It's great to be here, Chris. Appreciate the opportunity. Chris: So let everybody know, you're the general manager of what's called Longstar Sports and Entertainment here at Houston. Tell the audience a little bit about what that company is and kind of how it fits into the sports landscape here in Houston. David: Yeah, longstar Sports and Entertainment, or LSSE, as we try to call it with such a long name, is really the events production and management company at Houston, texans. So we are a primary outlet for event production, promotion and really a focus to our efforts to date around filling event dates at NRG Stadium. Most of what we do, chris, is in the sports space, although we have certainly done fair share of shows in the entertainment side, but college football, international soccer, rugby are all really big parts of what we do and inside of that we can do anything and everything that we need to do to make an event successful. We've promoted and negotiated and done our own events. We work with partners like ESPN or the Major League Soccer to host events at our building for them. We work with global brands like Manchester United, real Madrid or even Taylor Swift to bring events to our place in a variety of different ways. So really our focus is on bringing people together in Houston and we've done some other things over the years some investments and some events outside of NRG Stadium. But at our core we are a major part of making NRG Stadium one of the world class destinations for events and we're very proud of what we've been able to do over the last 21 years. Chris: That's what I love about kind of the focus at LSSC and the Texans for that matter is really a focus on doing things for the benefit and betterment of Houstonians. It seems to be kind of maybe a core focus. David: No question. I mean, look, at the end of the day, our organization is only focus on three things it's creating experiences, it's delivering incredible vowed partners and it's about doing great things for Houston. So, in that core capacity, major events, whether it be bringing Leon O Messi to play at NRG Stadium in an event like Copa America a few years ago I mentioned Taylor Swift we had a chance to host her in 2018, or Keddie Chesney or George Straits or Tim McGraw done shows with all of them over the years to the big time college football, like the Tax Act Texas Bowl that we host each and every year. Our focus is on really those three initiatives and I think they play into exactly what you said, which our organization has been all about, and the family the McNair family has been all about since day one. Chris: So, speaking of the Tax Act Texas Bowl, where we've got a match up right around the corner with Oklahoma State and Texas A&M excited about that and I would think that there is some excitement from those fan bases about being here at Houston. David: No question, our 18th year of hosting that college football postseason spectacular that happens each and every year at NRG Stadium. Last 10 years we've had the Big 12 in SEC and you mentioned it Texas A&M, who's obviously one of, if not, the biggest collegiate brand in this part of the world, going and taking on Oklahoma State, an old rival there from the Big 12 days and 20th ranked Oklahoma State Cowboys, I might add, who made it all the way to the Big 12 championship game this year and have the nation's best running back in Oli Gordon. A lot of things to be excited about on both fan bases. Texas A&M obviously a great brand, but had their struggles on the field relative to their expectations this year. A lot of transition, including bringing in a really exciting new coach and Mike Elko, and this is an opportunity for both of these teams, but particularly Texas A&M, to start their 2024 March to the championship this December 27th. Chris: Very good. So let's talk a little bit just about you and kind of how you got into the sports industry and you've been general manager now at LSE like 10 years. That's crazy because I can remember when you first took over the role. So 10 years goes by fast. David: It goes by real fast, chris. Look, for me sports has been an incredible part of my life, like many, since my early days of youth, I know as a kid. For me there wasn't a day that didn't go by literally a day that I didn't have to go to some practice or didn't get to go to some practice of some kind, played a lot of sports really important to my family growing up and ultimately developed a very strong passion for sport itself. As I got a little older I was in school at the University of Texas I realized that you could make a business out of it. You could create a life around the, not just playing on the field, and for me my playing days they definitely ended in high school, which is okay. I still get to this day, get to go out there and try and hack it with the best of them every once in a while, but I do it vicariously most of the time in working with my kids and coaching them and watching them grow. So for me, like I said, I knew sport was a big part of what I had a passion for when I graduated from UT. I had an opportunity to be to work for an NFL team in my hometown right here in Houston Texas. They didn't even have a name until a few weeks into my job, but that was the Houston Texans, and so coming out of UT and having the opportunity to be a part of building a professional team no less an NFL team from the ground up was something that I thought was really cool and I thought would be something that would help fuel that passion further, and it has. There's no question, of course, as a graduate coming out of college, many of us, myself included had bills to pay, and working as an intern at any sports team is not a great way to pay off those bills very quickly. But you know, I knew I had. I knew I had a goal in mind. I knew that I could make a business out of this if I really focused on making the most of the opportunities I had about keeping a positive attitude and really just taking every opportunity I could to grow, and I did that. I worked at the Texans during that first season, had an opportunity after that to get into a sales side where I did start making money working in media sales after leaving the team, spent a few years doing that for the University of Texas Athletics and then with the Houston Rockets, but I had a chance to return back to the team in 2010 and have been with the Texans in some way or shape or form ever since and that's been a lot of fun to really get to be in my hometown to work for the NFL team ups and downs included along the way, right, as we've had some great years and some not so great years. But going back to what I talked about earlier about being able to make an impact, particularly in my hometown, it's been an amazing opportunity for me and I still wake up every day and I know this is gonna sound really silly and I've grown a lot in my career, but we office at NRG Stadium and there are a lot of days where I walk in I'll hear the voice guy, david Brady, in my head going welcome to NRG Stadium. Chris: And it's just for me as I walk in the office. David: You know, it's a subtle reminder in my head that you know what. This is something pretty cool and this is something really special and been fortunate enough to be a part of a lot of things that have helped grow this community as a sports destination and then hopefully a lot more going forward. Chris: That's great. I mean it's a very unique position, unique opportunity. It relates to working for an NFL franchise. Right, there's only 32 franchises that you can work for, so let's talk again. So you work your way up and then you get this opportunity to move into leadership and I like to talk to guests, entrepreneurs, about leadership. So let's talk about that with you, kind of give us a little idea of your journey. Who were some of your mentors that you kind of molded your leadership style after? David: Well, I think mentors are so important, chris. They're so important to provide you you know reality, to provide you guidance, to provide you you know somebody who can ultimately be a resource, good and bad, in any situation. You know, for me it started with a good friend of ours and I still think about him all the time as Jamie Roots, you know, arguably one of the best in the business, president of the Texans for 20 plus years and spent spent really so much time, energy and effort in creating and ultimately growing the Texans brand, and so getting a chance to watch him and be a part of his team for almost a decade myself was something that you know, I've taken so much from. You know, the things that we focused on were about relationships, and that's really where it starts in any of these businesses is, you know, whether you're working with clients, teammates or employees and just trying to find ways to connect. You've got to be able to connect at all levels and build relationships with people, no matter what role they're playing in your business. So it's starting with relationships first. You know, I think, looking at how Lone Star has been approached I talked to Jamie about this a lot over the years Texans, so important and ingrained in the business of, or the fabric of, the Houston community. But what Lone Star has really helped do is expand the reach beyond just football and reach into what is already arguably the most diverse community in the country and bring them in to a place that they could celebrate, that the passions they have can create memories that last a lifetime and ultimately, yes, do business. You know, and so you know, lone Star helps us reach in. We've done, you know, 21 Mexican national team soccer events at our stadium. We've hosted Beyonce. We've had, you know, lsu take on Wisconsin or, you know, coming up, the national championship game for college football. Yes, there's some core elements that are consistent across every sport, every entertainment property, every football event that I just mentioned, but each of those tie people back to our business, they tie people into, or they bring people into, our community and they ultimately, you know, give us an opportunity to create even more momentum for the team and for Houston going forward. So, when I look at how we've approached that from a leadership perspective, you know it's really been thinking about how our business, my business, can impact people outside of what we do in the Texans. And with that, you know, like I said from the beginning, it starts with relationships. Chris: Hey, you hit the nail on the head because I think that's true. No matter what business you're in, if you're a one man shop or you're growing it to be bigger, it's all about relationships, like you said, with your external partners but more importantly with your internal teammates. So, talking on that subject a little bit, let's talk a little bit. I know you know you've built a team around you at LSSC to help put on and promote these events. What are some of the things you look for when you're going through that process? One maybe identify whether it's through the recruiting process or onboarding or, as they're there, in kind of the training to make sure you're making the best decision you can in building that team. And then maybe we'll talk about the other side is when you know maybe this wasn't the right fit, the harder decisions to make. David: Well, I think it starts. You know I mentioned it earlier, but to me there's really three core elements of being a good teammate, and I think these matter whether you're the intern or you're the leader of the organization. One be coachable right. Nobody that I have ever met, even the best in the business, know everything right, so be able to take advice, take criticism, learn from your mistakes, and that's something I think's really important. Two be ready, right. Be when opportunities exist, don't be afraid to raise your hand, don't be afraid to speak up, don't be afraid to go all in. You never know when an opportunity could be the best opportunity for you if you don't ask. So be coachable, be ready and then, from my perspective, just be positive, right. The attitude is the only thing that any of us can control, and my experience and my life has taught me that if you focus on the good, you have a lot better chance of getting there than if you focus on the bad. And that speaks to communication internally. That speaks to the way you approach how you position your business. It speaks to how you approach your competition right. Ultimately, at the end of the day, if you focus on the good, there's a better chance you're gonna get good. Chris: Like I couldn't agree more on that positive mindset, kind of staying positive, focus on the positive, learn from the bad and the negative maybe, but your primary focus has got to be on improvement in a positive way. Yeah, again, there's books written about it all over, but mindset makes a big difference. David: No question, no question. Ultimately, if you're a teammate for us and you've got those qualities, we feel like that's a great start to being a positive contributor to our group. Chris: Well, no just from being around the organization as much as I have. Y'all are known the Texans and LSSE. You're known within the sports industry of training people to be great and I guess that's a blessing and a curse. You get really good people but then people come and take them. David: Well, I've always had the mentality, chris. I know it's one that may fly in the face of common thought, but look, if anybody's being approached or anybody's being seen as having an opportunity coming from where we have brought them to, then we've done our jobs the other day and so we wanna keep as many of those on our team as we can, no question, but many times, for a variety of reasons, you have to accept that maybe reality, and so do the best of what you've got, be ready for the next opportunity, keep moving forward. Chris: So, working in the world of sports, what's one of the things you think is maybe the biggest misperception that most have about what you do? Cause it sounds pretty glamorous. David: Well, that's probably the biggest misperception. I think that, and that I have access to every ticket for every event all the time. My wife still sometimes even has that misperception, but I love her for it. No, look, I think the reality is that. I think that people do think that. Well, let me back up. I think there can be a perception that it is all glamorous all the time. Right, there's a lot of very visible and very talented people that are in the media all the time, that are compensated well, that are creating brands of their own. There certainly is an element to that, but I think that more often than not, it's a job that, if you don't have a passion for what you're doing, what you're doing, it's gonna be hard, because the hours are long, holidays are not really holidays. The players have negotiated a very significant salary, and that's not always the case for everybody else. And on the business side, and there are so many facets of what working in sports can be, and I think that's also, at the same time, an opportunity A lot of people look at. Well, you work for a team so that you're working in sports. Working in sports can be working for an agency that's working with a brand that is creating a partnership with a team. It could be working on the media side, bringing the events to life through social, digital and television content. It could be being a lawyer that negotiates contracts. It could be taking tickets and welcoming people to NRG Stadium, and so there's just so many different ways. There are over 7,000 people that work on a major event day at NRG Stadium. Just on the day, just on the day itself, right Between part-time staff, texans, employees, police fire, you name it. That's crazy. So it's such a big it becomes its own little city. So ultimately, there's a lot of different ways that sports can touch somebody. Most often, people just think of the players and what happens on the field. Chris: Well, it's nothing. You said when you started that, and I think it's true and it transcends all industries Passion To be really good at what you do, you have to have a passion for it, because it's long hours and putting in real hard time to learn and advance and grow your expertise at whatever it is, and so it has to start and stop a passion. David: No question, and if I look towards my life personally, it's been the fuel that's put me on the path to the successes that I've had. I mentioned it from the beginning. I mean, I started out as an intern with the Texans. I'm very proud of the fact that I'm the only intern or the only member of the executive team at Texans that actually started out as an intern with the team itself and that wasn't by accident. I mean, certainly there's a lot of good fortune along the way and I was able to produce results when needed. But I look at that as a testament to. Without the passion that I had, I wouldn't have been able to go through the 120 hour weeks as an intern, making minimum wage, I might add. You know working on, you know lifting heavy equipment or organizing, you know volunteer groups or you know putting together hours of copy that may not even be used, right. I mean, it's just those things that are just little steps along the way that, personally, I had to do, but I think they apply to anybody who has felt success in their business is that it starts with that passion. Chris: Yeah. So let's turn the conversation a little bit and talk about something that I don't think gets talked about enough, certainly at least here in Houston. We, when you step back and look at it, we, being Houston, which means you and others have done an amazing job of making Houston a true, like sports event destination. So we can talk about that a little bit, but what I want to do is connect that to how that the impact that has on the business community in Houston, because it's significant. David: It's massive, you know. So I'll start with a couple of things. One, you know, I think Houston's success as a destination for sport really points to. You can point to a lot of things that have been contributing factors, and they all have been geography center of the country, center of the continent, certainly a very, a very easy to get to market with all the infrastructure here from the great airports, obviously our traffic and our freeways. But the port you know, the infrastructure itself is fantastic, have served us well over the last 20 plus years with this latest renaissance, and we'll going forward. You've got a Some may need some tweaking, right? Chris: No question about it. David: I mean NRG is certainly, you know, a fantastic, world-class facility throughout its history. But that definition certainly has changed over the years and there's opportunities to continue to be the biggest and the best that we're working towards getting in the future. But the market seven plus million people in the DMA it's the most diverse market in the United States. All of that creates a lot of reasons why Houston has been a major destination. But I think the most important element is the leadership and the people and when I say people I mean the people at all levels that help contribute to the experience that's created when major events. Stakeholders are looking for a place to go and they come into Houston and they get to see it. We've got a number of groups that have worked together very successfully over the years the Texans and Lone Star, nrg Park, houston Livestock Show and Rodeo, all the major professional teams, harris County, houston Sports Authority, houston First Mayor's Office, city and Fire, the Texas Medical Center. All of those groups and many others have created a winning formula with how we approach the event experience, whether it's a festival, a conference or the Super Bowl. You throw in the hospitality community, which Houston First is certainly a driver of, but the thousands of unbelievable hotels, restaurants and entertainment options that are here in this community and how they collaborate and work together around these major events. And you see, no other market in the country can offer what we have as a collective package, and that's why you've seen Houston be awarded more major sporting events than any other market in the country over the last 15 years. That's impressive. Chris: I mean, people don't know that. They don't, it doesn't get talked about. David: They don't, they don't. There's certainly a lot of energy around. You get the first one right and then it just kind of dominos and we've been very aggressive as a community in pursuing those options. We've been very successful and when we get those options here to put our best foot forward, there are great resources at state level that certainly help with that and a spirit of collaboration with the governor's office to try and generate as many major events in the state of Texas as possible. So those are all winning points in the formula for success. But it really starts with the people and as we look at the future of the sporting event business, the major event business in Houston, there's a reason why we keep going after this and a big part of it is what you talked about the economic impact. Pick any number of these. These events Final four, college football, playoff, national championship game, fifa World Cup, super Bowl, taksac, texas Bowl, copa America I'm missing thousands of events that happen and are the Major League Baseball All-Star game, nba All-Star game, mls Cup. All these events that you see have really generated billions of dollars collectively for our community and economic impact. That's people coming to Houston and staying in our hotels. They're going and having a great time down in Galveston. They are eating at some of the world's best restaurants and that fuels our economy. We don't have the typical transient business that a vacation destination like a Miami or New Orleans may have, where entertainment in the community can spark a lot of travel. We are very much focused on conference events and entertainment opportunities and we do it better than just about anybody else out there. Chris: So let's kind of try to, you know, put some context around that. You mentioned, and obviously I'm well aware of the Texas Bowl, Taksac, Texas Bowl economic impact of that event to the greater Houston area. David: Annual basis over the last 10 years has been over $30 million on average. Every single year, we'll have anywhere between 25 and 30,000 people traveling in, staying in our hotels, restaurants, for three or four days ahead of the event. You've got people they're even driving in, too right, people that are coming in from the outer areas getting to celebrate that event. So that's meaningful, especially when that event specifically happens every year. It's right, it's a re-accuracy. End of the year, end of the year, when a lot of people are traveling for the holidays or maybe not doing as much, we've got an event that brings people into our community. That brings people here that may not be from a drivable distance. They may be coming from, you know, south Carolina, or Louisiana, or Florida, or Colorado Now that the Big 12 has expanded or Arizona, so you know, it really is something that fuels those businesses and gives our community as a whole an opportunity to celebrate around a major event, and we're proud of what that particular event has done, as well as, obviously, many others. Chris: Then we've got a couple of big events on the horizon. I want to talk about some of that. So let's talk about the first one, and that's the national title football college football playoff championship on January 8. It's a huge deal. It's the last one, I guess, of the 14 format, but you know what can we look forward to as Houstonians, with that game right around the corner? David: Well, it's a true celebration of college football, a week-long celebration. So you know, from a community perspective, you know the impact has already started. The Houston Love Teachers campaign that the Harris County, houston Sports Authority and the College Football Playoff local organizing committee has put together is has already generated millions of dollars in support for and recognition of teachers in our community, excuse me and that's an impact that will obviously pay dividends well beyond the game itself on January 8. When you look to event week itself, got four teams and four big brands that are hoping to descend upon Houston right after the New Year's. Chris: Yeah, yeah, so we've got what I mean. I think, any way you slice it, there's four or two teams that show up here are going to have big followings. David: Well, they are, and so you know what that means. It's not just about the 70,000 people that will fill up NRG Stadium. You know, again, the week long of activities, with free concerts every night during the weekend leading up fan fest down at Georgia Brown, which will have all kinds of interactive opportunities for fans to celebrate and enjoy the game of college football. You've got a number of initiatives around the industry itself that you know just further fuel Houston as a destination for business around the sport conferences and events and media opportunities, literally billions, if not trillions, of impressions showcasing our city. Chris: So you're gonna have the eyes of the world really on Houston for that kind of that weekend leading up and, I think, encourage the Houstonians right to get out and enjoy it yeah, no question, I mean it is. David: Houston is one of the best college football markets in the country the, the tax act, texas Bowl and many other events that we hosted. Our place and throughout the city. You've age rice, you know hcu tsu, prairie view. There's so much around college football that really Houston should be part of this destination, going forward on a consistent basis, and I think we'll show that as we bring everybody together here next month very good, yeah, david. Chris: So I think there's a lot to be excited about having the national title game be in our backyard, and I hope Houstonians will show up and take advantage of all the the events that are being planned yeah, it's gonna be an incredible week. David: We've earned the opportunity and I know, just like we did with Super Bowl a few years ago, with Final Four earlier this year, sonians love their sport. They will be out and enjoying another great celebration, and that's something that we should be excited about, and it's not the only one. You look down the road. We've got the world's biggest event coming just two years from now. Chris: As well, and that's the World Cup that's right. David: Yeah, fifa World Cup returns to Houston in 2020, or returns to Houston, comes to Houston in 2026. Houston, one of the venues in North America that was selected and you know just when you think about the opportunity to host five, six, seven, eight events in NRG Stadium with an average audience of a billion people and names like Messi and Neymar and Mbappe, who probably mean a lot to many people in this community but are treated as icons around the globe, and for Houston to have its name among the great markets of the world, at a truly global market which we know from a business perspective and from a from a population perspective. It is but to have that that verification on that type of stage is something that you know. As a community we also be very proud of and Chris Canetti in the World Cup office and Janice Burke and everybody over at NRG Park that ourselves included that helped to be part of making that a reality. We know we got a lot of work ahead to live up those expectations that's great. Chris: Well, david, I appreciate you, you know coming on and sharing some of these specifics. I want to ask you just a few more questions about you personally. What was your first job before days? You know the years before you were the intern of Houston Texas so I my first job I'm gonna go with. David: I've got a 1, 1a, all right. So my first job really was I worked at a Kroger in Kingwood as a checker or, sorry, as a bagger. But my my first quote real job I didn't have that one very long was I. I ended up being a server at Kingwood Country Club and the reason I say that was my first real job is that I worked in the service industry throughout my career. I mean, I still do today, obviously, but I worked in the service industry for 10 years, all the way through my time in Austin, going to school at UT, and I will tell you that nothing will teach you more about the world good and bad, than working in the service industry and I am so appreciative of the opportunities that I got to again. Start with something simple as that. But as a funny story, chris, I will say my crowning achievement as a server is I did serve as Don Johnson, the actor, don Johnson's waiter for the 10 cup rap party, because Tim Cup was hosting. That's right and so I do have that up by resume. Chris: So there you go see one of the benefits of living in Kingwood that's right. Yeah, one of the many I'll add okay, so since you work so much in, I guess, service hospitality, this will be easy for you. All right, you prefer Tex-Mex or barbecue? Tex-mex all day long all right, and this one's gonna be hard for you to answer okay maybe not. If you could do a 30-day sabbatical, where would you go? What? David: would you do? That is a great question. I don't think it's very. I don't think it's very hard for me at all. I am an avid skier and my family and I have been fortunate enough to spend a lot of time in Park City, utah, and I try and get the 30 days even now it's not possible to do in our work, but I love Park City probably more than any place else in this planet, and so I'd love to be able to go up my family for three days and just ski our behinds off got you. Chris: Well, that's great. That's a good one. David, thanks again for taking the time. Congratulations to you and the rest of the team back at Energy Park, the Texans LSSE, for all you do for Houston well. David: Thank you, chris, and we appreciate your support and involvement as well. Special Guest: David Fletcher.
David: Hi, and welcome to the podcast. In today's episode, co host Jay McFarland and I will be discussing the AI Approach to Multiply Your Sales. This is part one in a multiple part series, and we're going to start off with targeting, communication, and reach. Welcome back, Jay. Jay: Hey, David, it's great to be with you. I'm really excited about this series because I think a lot of people shy away from AI. Or they're getting into it and they're hearing a lot of the things that it can do, but they're not sure how to approach it or even if it's the right thing to do for their business. David: Yes. Agreed. And the way this actually came about is that we've been talking for a while over the course of the past several weeks in particular about multiplying your sales. And some people really struggle with this concept. And I thought, well, what does AI have to say on the topic, and how does what AI says about it relate to what we do, and how we help our clients, and do these things line up? So I thought what I'd do is I'd take the answer to the question when we asked AI, "What are your best recommendations in terms of multiplying sales," to see what AI says and then compare that with what we're doing. And so the first three recommendations that it had were based on targeting, communication, and reach. Those are my words, not AI words in particular. But that's pretty much what it broke down to, so I figured that's what we'd start with. Jay: I love it. We're going to do a podcast on AI, and we've asked AI what it thinks first, and now we're going to psychoanalyze AI to see if it's in line. David: Well, to see how it lines up. Because one of the things that I found interesting was that when I asked it about multiplying sales, it was coming back with responses that talked about increasing sales. And so I asked it specifically to come up with recommendations based on multiplying sales. And at first it seemed resistant to that. So it talked about growing sales and multiplying sales. But this is where it landed. So I figured we'd start with this. Now, I had asked it to prioritize these things. I'm not quite sure if it did. But this is what it came back with. So the very first recommendation that it had in terms of multiplying sales. I'll tell you specifically what it said first and then we can discuss it. So the first thing that it recommended is it said: 1. Define Your Target Audience. Clearly identify your ideal customers and understand their needs, preferences, and pain points. So, that's how it started. What do you think of that take? Jay: It sounds very, very traditional, very typical, common knowledge. The first thing that I learned in a sales class years ago, identifying your target audience. But I feel like that's so basic, and when you talk about multiplying sales, I tend to think that's more about taking the existing clientele and getting them to spend more. That's what I think about. David: I tend to think that way as well, but I thought it's a pretty good jumping off point because whether your target audience means your existing clients and the new clients that you want to go after, I think it makes a whole lot of sense to lead with, determining who it is that you're going to be going after. I relate a lot of this to what we do in our Total Market Domination course. One of the very first things we do in our course is we have a three level system of targeting. So what AI is recommending here in sort of a general sense, in terms of defining your target market, is something that we really dive into pretty heavily with our clients. Because without that targeting up front, if you don't know exactly who it is that you're going after, who your ideal client is, the likelihood of bringing an ideal client through the door is Is generally slim to none. Jay: Yeah. And you know, we've talked a lot about this in the past that knowing who your target audience is,
David was the chief software architect and director of engineering at Stitch Fix. He's also the author of a number of books including Sustainable Web Development with Ruby on Rails and most recently Ruby on Rails Background Jobs with Sidekiq. He talks about how he made decisions while working with a medium sized team (~200 developers) at Stitch Fix. The audio quality for the first 19 minutes is not great but the correct microphones turn on right after that. Recorded at RubyConf 2023 in San Diego. A few topics covered: Ruby's origins at Stitch Fix Thoughts on Go Choosing technology and cloud services Moving off heroku Building a platform team Where Ruby and Rails fit in today The role of books and how different people learn Large Language Model's effects on technical content Related Links David's Blog Mastodon Transcript You can help correct transcripts on GitHub. Intro [00:00:00] Jeremy: Today. I want to share another conversation from RubyConf San Diego. This time it's with David Copeland. He was a chief software architect and director of engineering at stitch fix. And at the start of the conversation, you're going to hear about why he decided to write the book, sustainable web development with Ruby on rails. Unfortunately, you're also going to notice the sound quality isn't too good. We had some technical difficulties. But once you hit the 20 minute mark of the recording, the mics are going to kick in. It's going to sound way better. So I hope you stick with it. Enjoy. Ruby at Stitch Fix [00:00:35] David: Stitch Fix was a Rails shop. I had done a lot of Rails and learned a lot of things that worked and didn't work, at least in that situation. And so I started writing them down and I was like, I should probably make this more than just a document that I keep, you know, privately on my computer. Uh, so that's, you know, kind of, kind of where the genesis of that came from and just tried to, write everything down that I thought what worked, what didn't work. Uh, if you're in a situation like me. Working on a product, with a medium sized, uh, team, then I think the lessons in there will be useful, at least some of them. Um, and I've been trying to keep it up over, over the years. I think the first version came out a couple years ago, so I've been trying to make sure it's always up to date with the latest stuff and, and Rails and based on my experience and all that. [00:01:20] Jeremy: So it's interesting that you mention, medium sized team because, during the, the keynote, just a few moments ago, Matz the creator of Ruby was talking about how like, Oh, Rails is really suitable for this, this one person team, right? Small, small team. And, uh, he was like, you're not Google. So like, don't worry about, right. Can you scale to that level? Yeah. Um, and, and I wonder like when you talk about medium size or medium scale, like what are, what are we talking? [00:01:49] David: I think probably under 200 developers, I would say. because when I left Stitch Fix, it was closing in on that number of developers. And so it becomes, you know, hard to... You can kind of know who everybody is, or at least the names sound familiar of everybody. But beyond that, it's just, it's just really hard. But a lot of it was like, I don't have experience at like a thousand developer company. I have no idea what that's like, but I definitely know that Rails can work for like... 200 ish people how you can make it work basically. yeah. [00:02:21] Jeremy: The decision to use Rails, I'm assuming that was made before you joined? [00:02:26] David: Yeah, the, um, the CTO of Stitch Fix, he had come in to clean up a mess made by contractors, as often happens. They had used Django, which is like the Python version of Rails. And he, the CTO, he was more familiar with Rails. So the first two developers he hired, also familiar with Rails. There wasn't a lot to maintain with the Django app, so they were like, let's just start fresh, fresh with Rails. yeah, but it's funny because a lot of the code in that Rails app was, like, transliterated from Python. So you could, it would, it looked like the strangest Ruby code in the world because it was basically, there was no test. So they were like, let's just write the Ruby version of this Python just so we know it works. but obviously that didn't, didn't last forever, so. [00:03:07] Jeremy: So, so what's an example of a, of a tell? Where you're looking at the code and you're like, oh, this is clearly, it came from Python. [00:03:15] David: You'd see like, very, very explicit, right? Like Python, there's a lot of like single line things. very like, this sounds like a dig, but it's very simple looking code. Like, like I don't know Python, but I was able to change this Django app. And I had to, I could look at it and you can figure out immediately how it works. Cause there's. Not much to it. There's nothing fancy. So, like, this, this Ruby code, there was nothing fancy. You'd be like, well, maybe they should have memoized that, or maybe they should have taken that into another class, or you could have done this with a hash or something like that. So there was, like, none of that. It was just, like, really basic, plain code like you would see in any beginning programming language kind of thing. Which is at least nice. You can understand it. but you probably wouldn't have written it that way at first in Ruby. Thoughts on Go [00:04:05] Jeremy: Yeah, that's, that's interesting because, uh, people sometimes talk about the Go programming language and how it looks, I don't know if simple is the right word, but it's something where you look at the code and even if you don't necessarily understand Go, it's relatively straightforward. Yeah. I wonder what your thoughts are on that being a strength versus that being, like, [00:04:25] David: Yeah, so at Stitch Fix at one point we had a pro, we were moving off of Heroku and we were going to, basically build a deployment platform using ECS on AWS. And so the deployment platform was a Rails app and we built a command line tool using Ruby. And it was fine, but it was a very complicated command line tool and it was very slow. And so one of the developers was like, I'm going to rewrite it in Go. I was like, ugh, you know, because I just was not a big fan. So he rewrote it in Go. It was a bazillion times faster. And then I was like, okay, I'm going to add, I'll add a feature to it. It was extremely easy. Like, it's just like what you said. I looked at it, like, I don't know anything about Go. I know what is happening here. I can copy and paste this and change things and make it work for what I want to do. And it did work. And it was, it was pretty easy. so there's that, I mean, aesthetically it's pretty ugly and it's, I, I. I can't really defend that as a real reason to not use it, but it is kind of gross. I did do Go, I did a small project in Go after Stitch Fix, and there's this vibe in Go about like, don't create abstractions. I don't know where I got that from, but every Go I look at, I'm like we should make an abstraction for this, but it's just not the vibe. They just don't like doing that. They like it all written out. And I see the value because you can look at the code and know what it does and you don't have to chase abstractions anywhere. But. I felt like I was copying and pasting a lot of, a lot of things. Um, so I don't know. I mean, the, the team at Stitch Fix that did this like command line app in go, they're the platform team. And so their job isn't to write like web apps all day, every day. There's kind of in and out of all kinds of things. They have to try to figure out something that they don't understand quickly to debug a problem. And so I can see the value of something like go if that's your job, right? You want to go in and see what the issue is. Figure it out and be done and you're not going to necessarily develop deep expertise and whatever that thing is that you're kind of jumping into. Day to day though, I don't know. I think it would make me kind of sad. (laughs) [00:06:18] Jeremy: So, so when you say it would make you kind of sad, I mean, what, what about it? Is it, I mean, you mentioned that there's a lot of copy and pasting, so maybe there's code duplication, but are there specific things where you're like, oh, I just don't? [00:06:31] David: Yeah, so I had done a lot of Java in my past life and it felt very much like that. Where like, like the Go library for making an HTTP call for like, I want to call some web service. It's got every feature you could ever want. Everything is tweakable. You can really, you can see why it's designed that way. To dial in some performance issue or solve some really esoteric thing. It's there. But the problem is if you just want to get an JSON, it's just like huge production. And I felt like that's all I really want to do and it's just not making it very easy. And it just felt very, very cumbersome. I think that having to declare types also is a little bit of a weird mindset because, I mean, I like to make types in Ruby, I like to make classes, but I also like to just use hashes and stuff to figure it out. And then maybe I'll make a class if I figure it out, but Go, you can't. You have to have a class, you have to have a type, you have to think all that ahead of time, and it just, I'm not used to working that way, so it felt, I mean, I guess I could get used to it, but I just didn't warm up to that sort of style of working, so it just felt like I was just kind of fighting with the vibe of the language, kind of. Yeah, [00:07:40] Jeremy: so it's more of the vibe or the feel where you're writing it and you're like this seems a little too... Explicit. I feel like I have to be too verbose. It just doesn't feel natural for me to write this. [00:07:53] David: Right, it's not optimized for what in my mind is the obvious case. And maybe that's not the obvious case for the people that write Go programs. But for me, like, I just want to like get this endpoint and get the JSON back as a map. Not any easier than any other case, right? Whereas like in Ruby, right? And you can, I think if you include net HTTP, you can just type get. And it will just return whatever that is. Like, that's amazing. It's optimized for what I think is a very common use case. So it makes me feel really productive. It makes me feel pretty good. And if that doesn't work out long term, I can always use something more complicated. But I'm not required to dig into the NetHttp library just to do what in my mind is something very simple. [00:08:37] Jeremy: Yeah, I think that's something I've noticed myself in working with Ruby. I mean, you have the standard library that's very... Comprehensive and the API surface is such that, like you said there, when you're trying to do common tasks, a lot of times they have a call you make and it kind of does the thing you expected or hoped for. [00:08:56] David: Yeah, yeah. It's kind of, I mean, it's that whole optimized for programmer happiness thing. Like it does. That is the vibe of Ruby and it seems like that is still the way things are. And, you know, I, I suppose if I had a different mindset, I mean, because I work with developers who did not like using Ruby or Rails. They loved using Go or Java. And I, I guess there's probably some psychological analysis we could do about their background and history and mindset that makes that make sense. But, to me, I don't know. It's, it's nice when it's pleasant. And Ruby seems pleasant. (laughs) Choosing Technology [00:09:27] Jeremy: as a... Software Architect, or as a CTO, when, when you're choosing technology, what are some of the things you look at in terms of, you know? [00:09:38] David: Yeah, I mean, I think, like, it's a weird criteria, but I think what is something that the team is capable of executing with? Because, like, most, right, most programming languages all kind of do the same thing. Like, you can kind of get most stuff done in most common popular programming languages. So, it's probably not... It's not true that if you pick the wrong language, you can't build the app. Like, that's probably not really the case. At least for like a web app or something. so it's more like, what is the team that's here to do it? What are they comfortable and capable of doing? I worked on a project with... It was a mix of like junior engineers who knew JavaScript, and then some senior engineers from Google. And for whatever reason someone had chosen a Rails app and none of them were comfortable or really yet competent with doing Ruby on Rails and they just all hated it and like it didn't work very well. Um, and so even though, yes, Rails is a good choice for doing stuff for that team at that moment. Not a good choice. Right. So I think you have to go in and like, what, what are we going to be able to execute on so that when the business wants us to do something, we just do it. And we don't complain and we don't say, Oh, well we can't because this technology that we chose, blah, blah, blah. Like you don't ever want to say that if possible. So I think that's. That's kind of the, the top thing. I think second would be how widely supported is it? Like you don't want to be the cutting edge user that's finding all the bugs in something really. Like you want to use something that's stable. Postgres, MySQL, like those work, those are fine. The bugs have been sorted out for most common use cases. Some super fancy edge database, I don't know if I'd want to be doing, doing that you know? Choosing cloud services [00:11:15] Jeremy: How do you feel about the cloud specific services and databases? Like are you comfortable saying like, oh, I'm going to use... Google Cloud, BigQuery. Yeah. [00:11:27] David: That sort of thing. I think it would kind of fall under the same criteria that I was just, just saying like, so with AWS it's interesting 'cause when we moved from Heroku to AWS by EC2 RDS, their database thing, uh, S3, those have been around for years, probably those are gonna work, but they always introduce new things. Like we, we use RabbitMQ and AWS came out with. Some, I forget what it was, it was a queuing service similar to Rabbit. We were like, Oh, maybe we should switch to that. But it was clear that they weren't really ready to support it. So. Yeah, so we didn't, we didn't switch to that. So I, you gotta try to read the tea leaves of the provider to see are they committed to, to supporting this thing or is this there to get some enterprise client to move into the cloud. And then the idea is to move off of that transitional thing into what they do support. And it's hard to get a clear answer from them too. So it takes a little bit of research to figure out, Are they going to support this or not? Because that's what you don't want. To move everything into some very proprietary cloud system and have them sunset it and say, Oh yeah, now you've got to switch again. Uh, that kind of sucks. So, it's a little trickier. [00:12:41] Jeremy: And what kind of questions or research do you do? Is it purely a function of this thing has existed for X number of years so I feel okay? [00:12:52] David: I mean, it's kind of similar to looking at like some gem you're going to add to your project, right? So you'll, you'll look at how often does it change? Is it being updated? Uh, what is the documentation? Does it look like someone really cared about the documentation? Does the documentation look updated? Are there issues with it that are being addressed or, or not? Um, so those are good signals. I think, talking to other practitioners too can be good. Like if you've got someone who's experienced. You can say, hey, do you know anybody back channeling through, like, everybody knows somebody that works at AWS, you can probably try to get something there. at Stitch Fix, we had an enterprise support contract, and so your account manager will sometimes give you good information if you ask. Again, it's a, they're not going to come out and say, don't use this product that we have, but they might communicate that in a subtle way. So you have to triangulate from all these sources to try to. to try to figure out what, what you want to do. [00:13:50] Jeremy: Yeah, it kind of makes me wish that there was a, a site like, maybe not quite like, can I use, right? Can I use, you can see like, oh, can I use this in my browser? Is there, uh, like an AWS or a Google Cloud? Can I trust this? Can I trust this? Yeah. Is this, is this solid or not? [00:14:04] David: Right, totally. It's like, there's that, that site where you, it has all the Apple products and it says whether or not you should buy it because one may or may not be coming out or they may be getting rid of it. Like, yeah, that would... For cloud services, that would be, that would be nice. [00:14:16] Jeremy: Yeah, yeah. That's like the Mac Buyer's Guide. And then we, we need the, uh, the technology. Yeah. Maybe not buyers. Cloud Provider Buyer's Guide, yeah. I guess we are buyers. [00:14:25] David: Yeah, yeah, totally, totally. [00:14:27] Jeremy: it's interesting that you, you mentioned how you want to see that, okay, this thing is mature. I think it's going to stick around because, I, interviewed, someone who worked on, I believe it was the CloudWatch team. Okay. Daniel Vassalo, yeah. so he left AWS, uh, after I think about 10 years, and then he wrote a book called, uh, The Good Parts of AWS. Oh! And, if you read his book, most of the services he says to use are the ones that are, like, old. Yeah. He's, he's basically saying, like, S3, you know you're good. Yeah. Right? but then all these, if you look at the AWS webpage, they have who knows, I don't know how many hundreds of services. Yeah. He's, he's kind of like I worked there and I would not use, you know, all these new services. 'cause I myself, I don't trust [00:15:14] David: it yet. Right. And so, and they're working there? Yeah, they're working there. Yeah. No. One of the VPs at Stitch Fix had worked on Google Cloud and so when we were doing this transition from Heroku, he was like, we are not using Google Cloud. I was like, really? He's like AWS is far ahead of the game. Do not use Google Cloud. I was like, all right, I don't need any more info. You work there. You said don't. I'm gonna believe you. So [00:15:36] Jeremy: what, what was his did he have like a core point? [00:15:39] David: Um, so he never really had anything bad to say about Google per se. Like I think he enjoyed his time there and I think he thought highly of who he worked with and what he worked on and that sort of thing. But his, where he was coming from was like AWS was so far ahead. of Google on anything that we would use, he was like, there's, there's really no advantage to, to doing it. AWS is a known quantity, right? it's probably still the case. It's like, you know, you've heard the nobody ever got fired for using IBM or using Microsoft or whatever the thing is. Like, I think that's, that was kind of the vibe. And he was like, moving all of our infrastructure right before we're going to go public. This is a serious business. We should just use something that we know will work. And he was like, I know this will work. I'm not confident about. Google, uh, for our use case. So we shouldn't, we shouldn't risk it. So I was like, okay, I trust you because I didn't know anything about any of that stuff at the time. I knew Heroku and that was it. So, yeah. [00:16:34] Jeremy: I don't know if it's good or bad, but like you said, AWS seems to be the default choice. Yeah. And I mean, there's people who use Azure. I assume it's mostly primarily Microsoft. Yeah. And then there's Google Cloud. It's not really clear why you would pick it, unless there was a specific service or something that only they had. [00:16:55] David: Yeah, yeah. Or you're invested in Google, you know, you want to keep everything there. I mean, I don't know. I haven't really been at that level to make that kind of decision, and I would probably choose AWS for the reasons discussed, but, yeah. Moving off Heroku [00:17:10] Jeremy: And then, so at Stitch Fix, you said you moved off of Heroku [00:17:16] David: yeah. Yeah, so we were heavy into Heroku. I think that we were told that at one point we had the biggest Heroku Postgres database on their platform. Not a good place to be, right? You never want to be the biggest customer person, usually. but the problem we were facing was essentially we were going to go public. And to do that, you're under all the scrutiny. about many things, including the IT systems and the security around there. So, like, by default, a Postgres, a Heroku Postgres database is, like, on the internet. It's only secured by the password. all their services are on the internet. So, not, not ideal. they were developing their private cloud service at that time. And so that would have given us, in theory, on paper, it would have solved all of our problems. And we liked Heroku and we liked the developer experience. It was great. but... Heroku private spaces, it was still early. There's a lot of limitations that when they explained why those limitations, they were reasonable. And if we had. started from scratch on Heroku Private Spaces. It probably would have worked great, but we hadn't. So we just couldn't make it work. So we were like, okay, we're going to have to move to AWS so that everything can be basically off the internet. Like our public website needs to be on the internet and that's kind of it. So we need to, so that's basically was the, was the impetus for that. but it's too bad because I love Heroku. It was great. I mean, they were, they were a great partner. They were great. I think if Stitch Fix had started life a year later, Private Spaces. Now it's, it's, it's way different than it was then. Cause it's been, it's a mature product now, so we could have easily done that, but you know, the timing didn't work out, unfortunately. [00:18:50] Jeremy: And that was a compliance thing to, [00:18:53] David: Yeah. And compliance is weird cause they don't tell you what to do, but they give you some parameters that you need to meet. And so one of them is like how you control access. So, so going public, the compliance is around the financial data and. Ensuring that the financial data is accurate. So a lot of the systems at Stichfix were storing the financial data. We, you know, the warehouse management system was custom made. Uh, all the credit card processing was all done, like it was all in some databases that we had running in Heroku. And so those needed to be subject to stricter security than we could achieve with just a single password that we just had to remember to rotate when someone like left the team. So that was, you know, the kind of, the kind of impetus for, for all of that. [00:19:35] Jeremy: when you were using Heroku, Salesforce would have already owned it then. Did you, did you get any sense that you weren't really sure about the future of the platform while you're on it or, [00:19:45] David: At that time, no, it seemed like they were still innovating. So like, Heroku has a Redis product now. They didn't at the time we wish that they did. They told us they're working on it, but it wasn't ready. We didn't like using the third parties. Kafka was not a thing. We very much were interested in that. We would have totally used it if it was there. So they were still. Like doing bigger innovations then, then it seems like they are now. I don't know. It's weird. Like they're still there. They still make money, I assume for Salesforce. So it doesn't feel like they're going away, but they're not innovating at the pace that they were kind of back in the day. [00:20:20] Jeremy: it used to feel like when somebody's asking, I want to host a Rails app. Then you would say like, well, use Heroku because it's basically the easiest to get started. It's a known quantity and it's, it's expensive, but, it seemed for, for most people, it was worth it. and then now if I talk to people, it's like. Not what people suggest anymore. [00:20:40] David: Yeah, because there's, there's actual competitors. It's crazy to me that there was no competitors for years, and now there's like, Render and Fly. io seem to be the two popular alternatives. Um, I doubt they're any cheaper, honestly, but... You get a sense, right, that they're still innovating, still building those platforms, and they can build with, you know, all of the knowledge of what has come before them, and do things differently that might, that might help. So, I still use Heroku for personal things just because I know it, and I, you know, sometimes you don't feel like learning a new thing when you just want to get something done, but, yeah, I, I don't know if we were starting again, I don't know, maybe I'd look into those things. They, they seem like they're getting pretty mature and. Heroku's resting on its laurels, still. [00:21:26] Jeremy: I guess I never quite the mindset, right? Where you You have a platform that's doing really well and people really like it and you acquire it and then it just It seems like you would want to keep it rolling, right? (laughs) [00:21:38] David: Yeah, it's, it is wild, I mean, I guess... Why did you, what was Salesforce thinking they were going to get? Uh, who knows maybe the person at Salesforce that really wanted to purchase it isn't there. And so no one at Salesforce cares about it. I mean, there's all these weird company politics that like, who knows what's going on and you could speculate. all day. What's interesting is like, there's definitely some people in the Ruby community who work there and still are working there. And that's like a little bit of a canary for me. I'm like, all right, well, if that person's still working there, that person seems like they're on the level and, and, and, and seems pretty good. They're still working there. It, it's gotta be still a cool place to be or still doing something, something good. But, yeah, I don't know. I would, I would love to know what was going on in all the Salesforce meetings about acquiring that, how to manage it. What are their plans for it? I would love to know that stuff. [00:22:29] Jeremy: maybe you had some experience with this at Stitch Fix But I've heard with Heroku some of their support staff at least in the past they would, to some extent, actually help you troubleshoot, like, what's going on with your app. Like, if your app is, like, using a whole bunch of memory, and you're out of memory, um, they would actually kind of look into that, for you, which is interesting, because it's like, that's almost like a services thing than it is just a platform. [00:22:50] David: Yeah. I mean, they, their support, you would get, you would get escalated to like an engineer sometimes, like who worked on that stuff and they would help figure out what the problem was. Like you got the sense that everybody there really wanted the platform to be good and that they were all sort of motivated to make sure that everybody. You know, did well and used the platform. And they also were good at, like a thing that trips everybody up about Heroku is that your app restarts every day. And if you don't know anything about anything, you might think that is stupid. Why, why would I want that? That's annoying. And I definitely went through that and I complained to them a lot. And I'm like, if you only could not restart. And they very patiently and politely explained to me why that it needed to do that, they weren't going to remove that, and how to think about my app given that reality, right? Which is great because like, what company does that, right? From the engineers that are working on it, like No, nobody does that. So, yeah, no, I haven't escalated anything to support at Heroku in quite some time, so I don't know if it's still like that. I hope it is, but I'm not really, not really sure. Building a platform team [00:23:55] Jeremy: Yeah, that, uh, that reminds me a little bit of, I think it's Rackspace? There's, there's, like, another hosting provider that was pretty popular before, and they... Used to be famous for that type of support, where like your, your app's having issues and somebody's actually, uh, SSHing into your box and trying to figure out like, okay, what's going on? which if, if that's happening, then I, I can totally see where the, the price is justified. But if the support is kind of like dropping off to where it's just, they don't do that kind of thing, then yeah, I can see why it's not so much of a, yeah, [00:24:27] David: We used to think of Heroku as like they were the platform team before we had our own platform team and they, they acted like it, which was great. [00:24:35] Jeremy: Yeah, I don't have, um, experience with, render, but I, I, I did, talk to someone from there, and it does seem like they're, they're trying to fill that role, um, so, yeah, hopefully, they and, and other companies, I guess like Vercel and things like that, um, they're, they're all trying to fill that space, [00:24:55] David: Yeah, cause, cause building our own internal platform, I mean it was the right thing to do, but it's, it's a, you can't just, you have to have a team on it, it's complicated, getting all the stuff in AWS to work the way you want it to work, to have it be kind of like Heroku, like it's not trivial. if I'm a one person company, I don't want to be messing around with that particularly. I want to just have it, you know, push it up and have it go and I'm willing to pay for that. So it seems logical that there would be competitors in that space. I'm glad there are. Hopefully that'll light a fire under, under everybody. [00:25:26] Jeremy: so in your case, it sounds like you moved to having your own platform team and stuff like that, uh, partly because of the compliance thing where you're like, we need our, we need to be isolated from the internet. We're going to go to AWS. If you didn't have that requirement, do you still think like that would have been the time to, to have your own platform team and manage that all yourself? [00:25:46] David: I don't know. We, we were thinking an issue that we were running into when we got bigger, um, was that, I mean, Heroku, it, It's obviously not as flexible as AWS, but it is still very flexible. And so we had a lot of internal documentation about this is how you use Heroku to do X, Y, and Z. This is how you set up a Stitch Fix app for Heroku. Like there was just the way that we wanted it to be used to sort of. Just make it all manageable. And so we were considering having a team spun up to sort of add some tooling around that to sort of make that a little bit easier for everybody. So I think there may have been something around there. I don't know if it would have been called a platform team. Maybe we call, we thought about calling it like developer happiness or because you got developer experience or something. We, we probably would have had something there, but. I do wonder how easy it would have been to fund that team with developers if we hadn't had these sort of business constraints around there. yeah, um, I don't know. You get to a certain size, you need some kind of manageability and consistency no matter what you're using underneath. So you've got to have, somebody has to own it to make sure that it's, that it's happening. [00:26:50] Jeremy: So even at your, your architect level, you still think it would have been a challenge to, to. Come to the executive team and go like, I need funding to build this team. [00:27:00] David: You know, certainly it's a challenge because everybody, you know, right? Nobody wants to put developers in anything, right? There are, there are a commodity and I mean, that is kind of the job of like, you know, the staff engineer or the architect at a company is you don't have, you don't have the power to put anybody on anything you, you have the power to Schedule a meeting with a VP or the CTO and they will listen to you. And that's basically, you've got to use that power to convince them of what you want done. And they're all reasonable people, but they're balancing 20 other priorities. So it would, I would have had to, it would have been a harder case to make that, Hey, I want to take three engineers. And have them write tooling to make Heroku easier to use. What? Heroku is not easy to use. Why aren't, you know, so you really, I would, it would be a little bit more of a stretch to walk them through it. I think a case could be made, but, definitely would take some more, more convincing than, than what was needed in our case. [00:27:53] Jeremy: Yeah. And I guess if you're able to contrast that with, you were saying, Oh, I need three people to help me make Heroku easier. Your actual platform team on AWS, I imagine was much larger, right? [00:28:03] David: Initially it was, there was, it was three people did the initial move over. And so by the time we went public, we'd been on this new system for, I don't know, six to nine months. I can't remember exactly. And so at that time the platform team was four or five people, and I, I mean, so percentage wise, right, the engineering team was maybe almost 200, 150, 200. So percentage wise, maybe a little small, I don't know. but it kind of gets back to the power of like the rails and the one person framework. Like everything we did was very much the same And so the Rails app that managed the deployment was very simple. The, the command line app, even the Go one with all of its verbosity was very, very simple. so it was pretty easy for that small team to manage. but, Yeah, so it was sort of like for redundancy, we probably needed more than three or four people because you know, somebody goes out sick or takes a vacation. That's a significant part of the team. But in terms of like just managing the complexity and building it and maintaining it, like it worked pretty well with, you know, four or five people. Where Rails fits in vs other technology [00:29:09] Jeremy: So during the Keynote today, they were talking about how companies like GitHub and Shopify and so on, they're, they're using Rails and they're, they're successful and they're fairly large. but I think the thing that was sort of unsaid was the fact that. These companies, while they use Rails, they use a lot of other, technology as well. And, and, and kind of increasing amounts as well. So, I wonder from your perspective, either from your experience at StitchFix or maybe going forward, what is the role that, that Ruby and Rails plays? Like, where does it make sense for that to be used versus like, Okay, we need to go and build something in Java or, you know, or Go, that sort of thing? [00:29:51] David: right. I mean, I think for like your standard database backed web app, it's obviously great. especially if your sort of mindset bought into server side rendering, it's going to be great at that. so like internal tools, like the customer service dashboard or... You know, something for like somebody who works at a company to use. Like, it's really great because you can go super fast. You're not going to be under a lot of performance constraints. So you kind of don't even have to think about it. Don't even have to solve it. You can, but you don't have to, where it wouldn't work, I guess, you know, if you have really strict performance. Requirements, you know, like a, a Go version of some API server is going to use like percentages of what, of what Rails would use. If that's meaningful, if what you're spending on memory or compute is, is meaningful, then, then yeah. That, that becomes worthy of consideration. I guess if you're, you know, if you're making a mobile app, you probably need to make a mobile app and use those platforms. I mean, I guess you can wrap a Rails app sort of, but you're still making, you still need to make a mobile app, that does something. yeah. And then, you know, interestingly, the data science part of Stitch Fix was not part of the engineering team. They were kind of a separate org. I think Ruby and Rails was probably the only thing they didn't use over there. Like all the ML stuff, everything is either Java or Scala or Python. They use all that stuff. And so, yeah, if you want to do AI and ML with Ruby, you, it's, it's hard cause there's just not a lot there. You really probably should use Python. It'll make your life easier. so yeah, those would be some of the considerations, I guess. [00:31:31] Jeremy: Yeah, so I guess in the case of, ML, Python, certainly, just because of the, the ecosystem, for maybe making a command line application, maybe Go, um, Go or Rust, perhaps, [00:31:44] David: Right. Cause you just get a single binary. Like the problem, I mean, I wrote this book on Ruby command line apps and the biggest problem is like, how do I get the Ruby VM to be anywhere so that it can then run my like awesome scripts? Like that's kind of a huge pain. (laughs) So [00:31:59] Jeremy: and then you said, like, if it's Very performance sensitive, which I am kind of curious in, in your experience with the companies you've worked at, when you're taking on a project like that, do you know up front where you're like, Oh, the CPU and memory usage is going to be a problem, or is it's like you build it and you're like, Oh, this isn't working. So now I know. [00:32:18] David: yeah, I mean, I, I don't have a ton of great experience there at Stitch Fix. The biggest expense the company had was the inventory. So like the, the cost of AWS was just de minimis compared to all that. So nobody ever came and said, Hey, you've got to like really save costs on, on that stuff. Cause it just didn't really matter. at the, the mental health startup I was at, it was too early. But again, the labor costs were just far, far exceeded the amount of money I was spending on, on, um, you know, compute and infrastructure and stuff like that. So, Not knowing anything, I would probably just sort of wait and see if it's a problem. But I suppose you always take into account, like, what am I actually building? And like, what does this business have to scale to, to make it worthwhile? And therefore you can kind of do a little bit of planning ahead there. But, I dunno, I think it would kind of have to depend. [00:33:07] Jeremy: There's a sort of, I guess you could call it a meme, where people say like, Oh, it's, it's not, it's not Rails that's slow, it's the, the database that's slow. And, uh, I wonder, is that, is that accurate in your experience, or, [00:33:20] David: I mean, most of the stuff that we had that was slow was the database, because like, it's really easy to write a crappy query in Rails if you're not, if you're not careful, and then it's really easy to design a database that doesn't have any indexes if you're not careful. Like, you, you kind of need to know that, But of course, those are easy to fix too, because you just add the index, especially if it's before the database gets too big where we're adding indexes is problematic. But, I think those are just easy performance mistakes to make. Uh, especially with Rails because you're not, I mean, a lot of the Rails developers at Citrix did not know SQL at all. I mean, they had to learn it eventually, but they didn't know it at all. So they're not even knowing that what they're writing could possibly be problematic. It's just, you're writing it the Rails way and it just kind of works. And at a small scale, it does. And it doesn't matter until, until one day it does. [00:34:06] Jeremy: And then in, in the context of, let's say, using ActiveRecord and instantiating the objects, or, uh, the time it takes to render templates, that kinds of things, to, at least in your experience, that wasn't such of an issue. [00:34:20] David: No, and it was always, I mean, whenever we looked at why something was slow, it was always the database and like, you know, you're iterating over some active records and then, and then, you know, you're going into there and you're just following this object graph. I've got a lot of the, a lot of the software at Stitch Fix was like internal stuff and it was visualizing complicated data out of the database. And so if you didn't think about it, you would just start dereferencing and following those relationships and you have this just massive view and like the HTML is fine. It's just that to render this div, you're. Digging into some active record super deep. and so, you know, that was usually the, the, the problems that we would see and they're usually easy enough to fix by making an index or. Sometimes you do some caching or something like that. and that solved most of the, most of the issues [00:35:09] Jeremy: The different ways people learn [00:35:09] Jeremy: so you're also the author of the book, Sustainable Web Development with Ruby on Rails. And when you talk to people about like how they learn things, a lot of them are going on YouTube, they're going on, uh, you know, looking for blogs and things like that. And so as an author, what do you think the role is of, of books now? Yeah, [00:35:29] David: I have thought about this a lot, because I, when I first got started, I'm pretty old, so books were all you had, really. Um, so they seem very normal and natural to me, but... does someone want to sit down and read a 400 page technical book? I don't know. so Dave Thomas who runs Pragmatic Bookshelf, he was on a podcast and was asked the same question and basically his answer, which is my answer, is like a long form book is where you can really lay out your thinking, really clarify what you mean, really take the time to develop sometimes nuanced, examples or nuanced takes on something that are Pretty hard to do in a short form video or in a blog post. Because the expectation is, you know, someone sends you an hour long YouTube video, you're probably not going to watch that. Two minute YouTube video is sure, but you can't, you can't get into so much, kind of nuanced detail. And so I thought that was, was right. And that was kind of my motivation for writing. I've got some thoughts. They're too detailed. It's, it's too much set up for a blog post. There's too much of a nuanced element to like, really get across. So I need to like, write more. And that means that someone's going to have to read more to kind of get to it. But hopefully it'll be, it'll be valuable. one of the sessions that we're doing later today is Ruby content creators, where it's going to be me and Noel Rappin and Dave Thomas representing the old school dudes that write books and probably a bunch of other people that do, you know, podcasts videos. It'd be interesting to see, I really want to know how do people learn stuff? Because if no one reads books to learn things, then there's not a lot of point in doing it. But if there is value, then, you know. It should be good and should be accessible to people. So, that's why I do it. But I definitely recognize maybe I'm too old and, uh, I'm not hip with the kids or, or whatever, whatever the case is. I don't know. [00:37:20] Jeremy: it's tricky because, I think it depends on where you are in the process of learning that thing. Because, let's say, you know a fair amount about the technology already. And you look at a book, in a lot of cases it's, it's sort of like taking you from nothing to something. And so you're like, well, maybe half of this isn't relevant to me, but then if I don't read it, then I'm probably missing a lot still. And so you're in this weird in be in between zone. Another thing is that a lot of times when people are trying to learn something, they have a specific problem. And, um, I guess with, with books, it's, you kind of don't know for sure if the thing you're looking for is going to be in the book. [00:38:13] David: I mean, so my, so my book, I would not say as a beginner, it's not a book to learn how to do Rails. It's like you already kind of know Rails and you want to like learn some comprehensive practices. That's what my book is for. And so sometimes people will ask me, I don't know Rails, should I get your book? And I'm like, no, you should not. but then you have the opposite thing where like the agile web development with Rails is like the beginner version. And some people are like, Oh, it's being updated for Rails 7. Should I get it? I'm like, probably not because How to go from zero to rails hasn't changed a lot in years. There's not that much that's going to be new. but, how do you know that, right? Hopefully the Table of Contents tells you. I mean, the first book I wrote with Pragmatic, they basically were like, The Table of Contents is the only thing the reader, potential reader is going to have to have any idea what's in the book. So, You need to write the table of contents with that in mind, which may not be how you'd write the subsections of a book, but since you know that it's going to serve these dual purposes of organizing the book, but also being promotional material that people can read, you've got to keep that in mind, because otherwise, how does anybody, like you said, how does anybody know what's, what's going to be in there? And they're not cheap, I mean, these books are 50 bucks sometimes, and That's a lot of money for people in the U. S. People outside the U. S. That's a ton of money. So you want to make sure that they know what they're getting and don't feel ripped off. [00:39:33] Jeremy: Yeah, I think the other challenge is, at least what I've heard, is that... When people see a video course, for whatever reason, they, they set, like, a higher value to it. They go, like, oh, this video course is, 200 dollars and it's, like, seems like a lot of money, but for some people it's, like, okay, I can do that. But then if you say, like, oh, this, this book I've been researching for five years, uh, I want to sell it for a hundred bucks, people are going to be, like no. No way., [00:40:00] David: Yeah. Right. A hundred bucks for a book. There's no way. That's a, that's a lot. Yeah. I mean, producing video, I've thought about doing video content, but it seems so labor intensive. Um, and it's kind of like, It's sort of like a performance. Like I was mentioning before we started that I used to play in bands and like, there's a lot to go into making an even mediocre performance. And so I feel like, you know, video content is the same way. So I get that it like, it does cost more to produce, but, are you getting more information out of it? I, that, I don't know, like maybe not, but who knows? I mean, people learn things in different ways. So, [00:40:35] Jeremy: It's just like this perception thing, I think. And, uh, I'm not sure why that is. Um, [00:40:40] David: Yeah, maybe it's newer, right? Maybe books feel older so they're easier to make and video seems newer. I mean, I don't know. I would love to talk to engineers who are like... young out of college, a few years into their career to see what their perception of this stuff is. Cause I mean, there was no, I mean, like I said, I read books cause that's all there was. There was no, no videos. You, you go to a conference and you read a book and that was, that was all you had. so I get it. It seems a whole video. It's fancier. It's newer. yeah, I don't know. I would love to hear a wide variety of takes on it to see what's actually the, the future, you know? [00:41:15] Jeremy: sure, yeah. I mean, I think it probably can't just be one or the other, right? Like, I think there are... Benefits of each way. Like, if you have the book, you can read it at your own pace without having to, like, scroll through the video, and you can easily copy and paste the, the code segments, [00:41:35] David: Search it. Go back and forth. [00:41:36] Jeremy: yeah, search it. So, I think there's a place for it, but yeah, I think it would be very interesting, like you said, to, to see, like, how are people learning, [00:41:45] David: Right. Right. Yeah. Well, it's the same with blogs and podcasts. Like I, a lot of podcasters I think used to be bloggers and they realized that like they can get out what they need by doing a podcast. And it's way easier because it's more conversational. You don't have to do a bunch of research. You don't have to do a bunch of editing. As long as you're semi coherent, you can just have a conversation with somebody and sort of get at some sort of thing that you want to talk about or have an opinion about. And. So you, you, you see a lot more podcasts and a lot less blogs out there because of that. So it's, that's kind of like the creators I think are kind of driving that a little bit. yeah. So I don't know. [00:42:22] Jeremy: Yeah, I mean, I can, I can say for myself, the thing about podcasts is that it's something that I can listen to while I'm doing something else. And so you sort of passively can hopefully pick something up out of that conversation, but... Like, I think it's maybe not so good at the details, right? Like, if you're talking code, you can talk about it over voice, but can you really visualize it? Yeah, yeah, yeah. I think if you sit down and you try to implement something somebody talked about, you're gonna be like, I don't know what's happening. [00:42:51] David: Yeah. [00:42:52] Jeremy: So, uh, so, so I think there's like these, these different roles I think almost for so like maybe you know the podcast is for you to Maybe get some ideas or get some familiarity with a thing and then when you're ready to go deeper You can go look at a blog post or read a book I think video kind of straddles those two where sometimes video is good if you want to just see, the general concept of a thing, and have somebody explain it to you, maybe do some visuals. that's really good. but then it can also be kind of detailed, where, especially like the people who stream their process, right, you can see them, Oh, let's, let's build this thing together. You can ask me questions, you can see how I think. I think that can be really powerful. at the same time, like you said, it can be hard to say, like, you know, I look at some of the streams and it's like, oh, this is a three hour stream and like, well, I mean, I'm interested. I'm interested, but yeah, it's hard enough for me to sit through a, uh, a three hour movie, [00:43:52] David: Well, then that, and that gets into like, I mean, we're, you know, we're at a conference and they, they're doing something a little, like, there are conference talks at this conference, but there's also like. sort of less defined activities that aren't a conference talk. And I think that could be a reaction to some of this too. It's like I could watch a conference talk on, on video. How different is that going to be than being there in person? maybe it's not that different. Maybe, maybe I don't need to like travel across the country to go. Do something that I could see on video. So there's gotta be something here that, that, that meets that need that I can't meet any other way. So it's all these different, like, I would like to think that's how it is, right? All this media all is a part to play and it's all going to kind of continue and thrive and it's not going to be like, Oh, remember books? Like maybe, but hopefully not. Hopefully it's like, like what you're saying. Like it's all kind of serving different purposes that all kind of work together. Yeah. [00:44:43] Jeremy: I hope that's the case, because, um, I don't want to have to scroll through too many videos. [00:44:48] David: Yeah. The video's not for me. Large Language Models [00:44:50] Jeremy: I, I like, I actually do find it helpful, like, like I said, for the high level thing, or just to see someone's thought process, but it's like, if you want to know a thing, and you have a short amount of time, maybe not the best, um, of course, now you have all the large language model stuff where you like, you feed the video in like, Hey, tell, tell, tell me, uh, what this video is about and give me the code snippets and all that stuff. I don't know how well it works, but it seems [00:45:14] David: It's gotta get better. Cause you go to a support site and they're like, here's how to fix your problem, and it's a video. And I'm like, can you just tell me? But I'd never thought about asking the AI to just look at the video and tell me. So yeah, it's not bad. [00:45:25] Jeremy: I think, that's probably where we're going. So it's, uh, it's a little weird to think about, but, [00:45:29] David: yeah, yeah. I was just updating, uh, you know, like I said, I try to keep the book updated when new versions of Rails come out, so I'm getting ready to update it for Rails 7. 1 and in Amazon's, Kindle Direct Publishing as their sort of backend for where you, you know, publish like a Kindle book and stuff, and so they added a new question, was AI used in the production of this thing or not? And if you answer yes, they want you to say how much, And I don't know what they're gonna do with that exactly, but I thought it was pretty interesting, cause I would be very disappointed to pay 50 for a book that the AI wrote, right? So it's good that they're asking that? Yeah. [00:46:02] Jeremy: I think the problem Amazon is facing is where people wholesale have the AI write the book, and the person either doesn't review it at all, or maybe looks at a little, a little bit. And, I mean, the, the large language model stuff is very impressive, but If you have it generate a technical book for you, it's not going to be good. [00:46:22] David: yeah. And I guess, cause cause like Amazon, I mean, think about like Amazon scale, like they're not looking at the book at all. Like I, I can go click a button and have my book available and no person's going to look at it. they might scan it or something maybe with looking for bad words. I don't know, but there's no curation process there. So I could, yeah. I could see where they could have that, that kind of problem. And like you as the, as the buyer, you don't necessarily, if you want to book on something really esoteric, there are a lot of topics I wish there was a book on that there isn't. And as someone generally want to put it on Amazon, I could see a lot of people buying it, not realizing what they're getting and feeling ripped off when it was not good. [00:47:00] Jeremy: Yeah, I mean, I, I don't know, if it's an issue with the, the technical stuff. It probably is. But I, I know they've definitely had problems where, fiction, they have people just generating hundreds, thousands of books, submitting them all, just flooding it. [00:47:13] David: Seeing what happens. [00:47:14] Jeremy: And, um, I think that's probably... That's probably the main reason why they ask you, cause they want you to say like, uh, yeah, you said it wasn't. And so now we can remove your book. [00:47:24] David: right. Right. Yeah. Yeah. [00:47:26] Jeremy: I mean, it's, it's not quite the same, but it's similar to, I don't know what Stack Overflow's policy is now, but, when the large language model stuff started getting big, they had a lot of people answering the questions that were just. Pasting the question into the model [00:47:41] David: Which because they got it from [00:47:42] Jeremy: and then [00:47:43] David: The Got model got it from Stack Overflow. [00:47:45] Jeremy: and then pasting the answer into Stack Overflow and the person is not checking it. Right. So it's like, could be right, could not be right. Um, cause, cause to me, it's like, if, if you generate it, if you generate the answer and the answer is right, and you checked it, I'm okay with that. [00:48:00] David: Yeah. Yeah. [00:48:01] Jeremy: but if you're just like, I, I need some karma, so I'm gonna, I'm gonna answer these questions with, with this bot, I mean, then maybe [00:48:08] David: I could have done that. You're not adding anything. Yeah, yeah. [00:48:11] Jeremy: it's gonna be a weird, weird world, I think. [00:48:12] David: Yeah, no kidding. No kidding. [00:48:15] Jeremy: that's a, a good place to end it on, but is there anything else you want to mention, [00:48:19] David: No, I think we covered it all just yeah, you could find me online. I'm Davetron5000 on Ruby. social Mastodon, I occasionally post on Twitter, but not that much anymore. So Mastodon's a place to go. [00:48:31] Jeremy: David, thank you so much [00:48:32] David: All right. Well, thanks for having me.
In today's episode of the IC-DISC Show, we chat with Jerry Vaughn, founder and president of J Gault, a company revolutionizing business financing. Jerry explains how J Gault enables Main Street businesses to reap corporate credit opportunities by leveraging their EINs and NOT having to provide a personal guarantee. He shares insightful stories of entrepreneurs who, thanks to J Gault, secured lower interest rates and increased funding despite lacking revenue history or business plans. As Jerry describes, J Gault's approach prepares companies for economic uncertainty while ensuring they emerge stronger. Whether you're an entrepreneur looking to scale up or a small business owner pursuing growth, this discussion with Jerry Vaughn illuminates the transformative potential available by accessing business credit innovatively.   SHOW HIGHLIGHTS The episode features a conversation with Jerry Vaughn, the founder and president of J Galt, a company revolutionizing business financing. Jerry explains how Main Street companies can leverage their Employer Identification Numbers (EINs) to build corporate credit and access competitive rates. Real-life examples, such as Randy, a contractor from North Carolina, and a real estate investor from Texas, demonstrate how J Galt has helped transform businesses by improving their funding. Jerry emphasizes that J Galt's approach is not just about securing funding, but also preparing businesses for unpredictable events and ensuring their resilience. One of the major benefits of J Gault's approach is allowing smaller companies to avoid personal guarantees when accessing corporate credit opportunities. The company offers a membership program that provides lifetime support, including cash flow management services, business valuation assistance, and exit strategy planning. There are rules for "fundability" that businesses need to adhere to, such as having a business bank account, a registered phone number, a website, and a corporate email address. Building company credit on the EIN number and avoiding personal guarantees is a secret to accessing cash flow, according to Jerry. Jerry mentions that the mission of J Gault goes beyond merely selling—it's about serving and educating entrepreneurs and small business owners. The episode emphasizes that just because a business is labeled small doesn't mean it has to stay that way. With the right financing strategies, businesses can scale and grow. LINKSShow Notes Be a Guest About IC-DISC Alliance About J.Galt Finance Suite GUEST Jerry VaughnAbout Jerry TRANSCRIPT (AI transcript provided as supporting material and may contain errors) David: Hi, this is David Spray and welcome to another episode of the IC-DISC show. I had a great guest on today, jerry Vaughn, who's the founder and president of J Gault, and for those of you who are big and Rand fans, you may recognize that name. It's inspired by the character John Gault from the book Atlas Shrug by Ayn Rand. So J Gault is a disruptor in the business financing world and basically they allow main street companies privately held, closely held, small to medium sized companies to get access to the same corporate credit opportunities that large public companies have. And one of the biggest benefits of this approach is it allows smaller companies to get rid of the personal guarantee. I know for many of my clients that's one of their big frustrations is they really don't want to be personally guaranteeing business credit, business debt. Oftentimes it's because their spouse isn't keen on using their house as collateral for a business loan. So it's a great episode. We talk about a variety of different things some stories about customers of theirs. They have a membership program and it's really a great service that I find to be really intriguing. So I hope you enjoy the episode as much as I did. Good morning, jerry. Welcome to the podcast. How are you doing today? Jerry: I'm doing fantastic, David. I appreciate you having me on today. David: Well, my pleasure. So where are you calling in from today? What part of the world are you in? Jerry: A big metropolis of Indianapolis, Indiana. David: Ah well, one of your suburbs, I think, has the most roundabouts of any city in the country, carmel. Jerry: Yes, Carmel. Carmel in California and Carmel in Indiana just like the candy you would eat. David: Sure, have you been through any of those famous Carmel roundabouts? Jerry: Actually, where I live, carmel Fisher's, nobleville it's the city sister city is a roundabout. Yes, I actually like them. At first I was like what is this? But actually it moves traffic and sufficient as long as the people in front of you know understand. David: Yeah, I actually heard a podcast with the mayor of Carmel, because something like Carmel accounts for more than 50% of all the roundabouts in the US. It's a crazy number. And he was talking about all the benefits and he said the only drawback. He said there's a few times during the day, like peak traffic times, where it's arguably a little less efficient. But he said the other 23 and a half hours a day it's far more efficient because you never have to wait for a stoplight. And he talked to me have you ever been driving in the middle of the night and you come up to a stoplight and there's no traffic within a mile any direction? But technically you're supposed to wait for the lights to turn. Jerry: That is correct technically. David: Technically correct, I find. If it's three o'clock in the morning, I ask myself have I had any drinks this evening? And if I have, then I'm going to wait for the lights to turn. If I hadn't had any drinks that night, then how much trouble can I get into? Jerry: That is exactly right. I do the same thing. I'm like, well, there's nobody anywhere, you sit there and it feels like it's been 10 minutes, probably been a couple. But I'm like, really, why am I sitting here to stoplight? David: I know so are you a native of Indiana? Jerry: I am. I was actually born in Hoopston, illinois, but we grew up in a western city in Indiana, so almost to the border. But I've grown up as a Hoosier most of my life, okay. David: Nice Bye, folks, and fun Bye. Get into your business. So the name of the company resonated with me immediately because there's a character in one of my all-time favorite books by the name of John Galt and there's a famous phrase from the book called who is John Galt? Now, is this just coincidence, this JGalt, or is there any connection? Jerry: Well, I'm glad that you brought that up because it doesn't stand for Jerry Galt, I can tell you that. So we couldn't use John Galt because it's obviously patent and has a huge following. But it is off the premise of the book Atlas Shrugged by Anne Rand. So who is John Galt? The whole story of the government takeover, small business and controls and regulations and all of that and that fish, you know book that was written by a Russian immigrant that understood communism, came over. She saw it in the 1940s and she said what is going on? I'm saying the same stuff right here. So she wrote that fictional book in the 50s, as you know. But it's kind of a big deal and it's coming out and there's a big following and people get it. But yeah, you're exactly right, it is John Galt. David: So it's probably actually not a bad filtering process, because I find that there's three types of people in the world. There's people who've read Atlas Shrugged and think it's one of the greatest artistic works of all time. There's folks who've read it and think she's the devil and it's the worst thing ever written. And then there's folks who've never heard of it. So I find that people tend to follow one of three camps. There's not many people that are like yeah, I think I read it, I think I vaguely remember something about it. So it's probably a good self-selection process, right? Because the people who read it and think it's the most evil book ever written probably aren't the mindset of your ideal customer. Jerry: I'm guessing it's pretty close right, but it's surprising on how many people know, even myself. As we name the company, you know your particular activation system in your head, just like when we buy a car. Right then, after we buy a car, you start driving around like man. Look at all the people that bought the car I have this is great following my lead. Now, they were already there. I see who is John Galt stickers on the back of bumpers and on the back of their windshield. I've just it blows me away. But you're exactly right. Most of the entrepreneurs, because we are working only with main street business owners. Okay, small and medium-sized companies, not the wall street companies. So those are the people we're serving and most of them all of us that own businesses and have done that get the challenges and the works and we're just trying to do the best we can to serve the communities and then build a profitable and a great company with our services or products. David: Sure no, I like it. So her book, the Fountainhead, I have a slight preference for, like I mean they're my two favorite books, you know fictional books ever written, for sure. But I have a slight preference for the Fountainhead but only because the individualistic aspect. I assume you've read the Fountainhead too yes the individualistic aspect of the Fountainhead just resonates a little more. There's a great line in there where work has to sell an architectural commission to a committee and the committee all wanted to make changes to it and his sponsors, like they're minor, go for it. As you, you know, recall, he like can't do it. But he had a great line in there where he was talking, I think, to his, his buddy, his Irish construction buddy, explaining why he didn't get it and he said you know, I've never sold a project to a committee and that really resonated because that's how I've always been in my career. It's like you know, if I meet the entrepreneur and I have a conversation and it's a fit, good things happen. But when it's a committee, I don't seem to have much, much luck. Jerry: I'm glad you brought up this. One of my favorite things and that's when I you know it's amazing, it's. I agree with you. Both those books are in my top favorite fictional books ever written. But I think there's a lot of great content, especially for the entrepreneur, of what you have to do. I mean, if you're not a disruptor, if you kind of stay under a ceiling and you're like, hey, I'm not going to change where you work, I don't know what your thoughts are, but I kind of say that if you're an entrepreneur, a successful entrepreneur, normally you're kind of a freak. Right, you're looked at as a freak in the industry and I think that's well put on the committee. I'm not here to appease the committees, I'm here to disrupt the industry on how Main Street and business owners will get funding, not just through how the traditional style is. So that's not our company. So I think the whole Atlas shrugged and Fountainhead there, even though they're fictional books, there's a lot of great content and, I think, some kind of rules of engagement for the entrepreneur. David: Yeah, I was just before this. I had a call with a colleague and he really had very little familiarity with Ann Rahn's work and early heard of it, so he had just bought the audible for Fountainhead. So I'd recommend you start with Fountainhead, so we'll see how that goes. Jerry: That's excellent. David: So talk to me. So what are you guys doing to help those you know privately held, closely held you call them Main Street businesses. You know what's kind of your sweet spot, revenue wise? I get it's probably a broad one, but like for us, like 90% of our clients have revenues between 10 million and 100 million like what's your sort of sweet spot where most of your clients fall in? Jerry: I'd say 250,000 to 450 million a year. David: What if you had to narrow it down a little bit? Go ahead. Jerry: Your sweet spot today, david, is probably somewhere in that. I'm going to say 10 to 25 million is our sweet spot. You get to the 100 and 250 million dollar companies. They do have a lot of cash flow and they've got profits and they've got, you know, banks that give them lines of credit even though they're personally guaranteed. So it's a little harder to get in the door. But we're getting in the door with those now and they're seeing what's going on. But our sweet spot today would be that 10 to 25 million. David: Okay, that is helpful. And the reason I narrowed you down here is because our audience who CPAs and attorneys who have clients, when you say 250,000 to 450 million, it doesn't quite resonate. When you say 10 to 25, now all of a sudden they can think of their clients, or in the 10 to 25 range. So talk to me and you kind of touched on it talk to me about this whole personal guarantee thing and there's probably, I'm guessing, some history behind it. So what's the story? And talk to me about this personal guarantee thing. Jerry: Yeah. So when we say we're disruptors and I just want to make sure that your audience understands you know the 250 to 450. When you look at your EIN that tax number that you get from the IRS that's just like your SSN to building personal credit. Your EIN can build company credit. Your company has its own credit score and its own report and so does your personal social security number. So when you give that broad scope just for your audience, you get someone that's just starting out with a startup or they're cranking out 20,000 a month. It just gets hard to try to get funding without why bank revenue statements, tax returns, business plans, revenue looking at your personal credit just to try to get the operating budget to be able to run your company and then to grow and scale and seize opportunities to grow and scale, because we all know as entrepreneurs that when you have an opportunity in front of it, it's not like you can plan and then just hit exactly when it happens. When you need to seize an opportunity, you don't have 60 to 90 days to qualify for it. So we look at what Jay Galt's main premise is and our advantage and really how we impact that entrepreneur in the world is what we do is we focus on the EIN and to build credit on that. It's actually very simple. Has nothing to do with revenue, has nothing to do with what your financials, your tax returns or how long you've been in business. It's just about taking that tax number and making it fundable so you can get access to corporate vending and lending, and your rates are typically 0 to 5%. I mean, we're getting people vehicle and equipment loans at 1.9%. Corporate credit cards are 0% on three to 12 month terms, right, not just on balance transfers. So that's the power. That's how your Wal-Mart's and Googles and Amazons and your Apples of the world are able to do what you and I, david, have no problem with paying interest, as long as it's a positive arbitrage. What we can't do is pay 30% to 50% in interest when we're only making 25% to 35% in money. So how you flip the script is you got to get access and get your company fundable so you can get access to banks' monies to leverage that at better rates in terms, so you can grow in scale without going into what Debt risk or paying too much in interest where it's not a profitable proposition. We see that every day and I know you do, david, right. People get in these small little bridge loans and if they don't get them paid off they'll come out or close on your mortgage. David: And then the other aspect of it then is when the underwriting is done on the company's EIN, there's less of a need for personal guarantee right, because they're under the business Right Typically that doesn't even come into play your credit score, your personal inquiries or what your credit score looks like. Jerry: That has nothing to do with building company credit is vanilla. It doesn't matter if you're a man or a woman, you're a Democrat or Republican, what your religion is, because it's a tax number. There's no bias on that number. Where that can come into play on your personal credit, right when you walk into a bank. But it doesn't have that when you're looking at a company's index, because a company is not a man or a woman or a Democrat or Republican or a certain type of it. It's where your Social Security is tied to an individual. Your EIN, that tax number, is tied to the company. David: Okay, Well, that sounds good and is the motivation for your customers trying to get rid of the personal guarantee or trying to get better interest rates on borrowing. Jerry: Most of the time they get tired of the personal guarantee business. Right, you're married, you're watched like you're not putting the house on the line, right, exactly so if you want money, they always have you check a box and do a little initial where, hey, we're going to give you the money because we believe in you and you believe in your business. We just need you to check the box and this is just a what. This is just a normality. But if something would happen we know that's going to happen. If something would happen, you understand the banks right. Since we're giving you money is we'll have access to your 401ks, your kids college funds, your second home, your cars, your current home, your family's living underneath. That's just a technicality. So a lot of them want to get out of the personal guarantee business or they don't grow in scale because they don't want to risk tying up their personal assets to leverage to their company's funding. So that's the first thing. But getting corporate capital on your EIN, you're going to get 10, 20, 30, a hundred times the amount of money on your company. Then you're ever going to get on your SSN because you're only going to stretch that personal credit bubble so far, because then they're looking at underwriting risk on you personally. They look at the company's revenue, but the company has nothing to do with it. If you don't have a corporate credit. They're always going to look at your EIN first, but there's usually nothing there, so they always revert what Back to revenue bank statements, underwriting risk, ar balances, invoicing. So there's a lot that goes into that. So you can see how complex that gets and how it can. What limit you on getting and seizing opportunities and then, more importantly, getting better rates in terms of run the operation, so you can leverage the bank's money because, david, you and I get this right. I'd rather use the bank's money than my money. I'd rather take my money and put it in vehicles that does what with my money. David: No, that really makes a lot of sense. So what's the disruption you're doing is basically bringing this Wall Street credit access to Main Street businesses. Is that? Jerry: education Right. First thing we do is I was asking an owner. I said, hey, what's your personal credit score? And they always answer right, 720. What's your company's credit score? What do you think I get most of the time? David: Right, no idea what are you talking about. Jerry: Right. So we have a seven step blueprint, but we're all about education. We're not here to sell anything, we're here to serve. So, just like in the whole Atlas Shrug with J Galt, john Galt, right, we're here to serve and connect with people and give them education on things that they don't know. It's not the CPAs or the accounting firms fall. It's not the bankers, it's not the tax attorneys. That's not their job of what they do. What J Galt does is we do the same thing. People understand personal credit. They just don't understand company credit and how easy it is to get there. There's just a secret set of rules. So our job is to educate you on the seven step blueprint of how you can get your company fundable, so you, as the owner, can survive storms. Right, you don't have to worry about the four things that can take the legs out of a business economy. You and I do. We have control over economy, david. Nope, how about inflation? Nope, does that impact us? Sure, sure it does. How about a government regulation? David: No control, almost no control, I mean in theory. If you're part of a lobbying group, you know you might fit very little. And what's the fourth one? Jerry: Yeah, but then you're going to have to have some capital to have some of these lobbyists for it, right, they're not free, sure. And then the second thing is just a you ever. I don't know if you've ever experienced one of these at all, david, but you ever heard of a pandemic? David: I think I have. I think we had one of those like a hundred years ago. I heard about it 1918, I think we had one. Yeah, I think it was, if we had anything close. Jerry: I know you and I have never experienced one of those lately right. But, even on that it's a cripple of business. Some it's a lot of businesses actually did a really great job. Sure, a lot that it really affected there's over. You know, 60% of businesses haven't even made it back to pre-pandemic revenues today because they raise the prices, inflation's there. I mean you've got a lot of things going against you. So how do you survive that and how do you get through those things? How do you prepare for the storms and survive the storms? And it's really about if it makes sense for the business on you moving forward and getting to the goals or solving the challenges, but it's really about getting fundability on your company. That's the answer to that question or challenge. It's the most vexing problem with small and medium-sized businesses today is getting cash blow. David: Okay. So I love stories. I think they educate well. Do you have a story or two of, like, a client of yours that you could talk about anonymously and maybe kind of set up what their scenario was before they met you? What's their scenario like now that you can be mined? Jerry: Yes, we have a guy that's in the contracting business out of North Carolina. We'll call him Randy, okay, but he came to us and we actually approached him and we had a conversation. But he's been in business for almost eight years doing well, has access to his local Chevy dealer, his local bank, where he deposits his money, and his credit score wasn't bad. He said, oh, I know how to do this. I have a Dun and Bradstreet number, right, that's the largest credit bureau, like TransUnion is on our consumer side, Dun and Bradstreet is on the business credit side because there's business credit reporting agencies and there's personal credit reporting agencies, right? Well, personal credit reporting agencies nothing to do with your company. It's the business credit reporting agencies to have everything to do with your company. So that's another tip that I'll give your viewers out there and listeners today. Right, Okay, so, but with Randy as we were having the conversation, with Randy as we were having the conversation, David, he understood it, but he really didn't, because where he was going and putting his deposits in, he just thought this the way it was and he actually was doing pretty well. He had a credit line recommendation about 67,000 on his company. We ran his company credit report After four months and just getting his EIN fundable the same Chevy dealer that he's been buying his vehicles for the last eight years. He's been getting anywhere between a nine and 15% rate. Wow, After four months, with Jay Galdin focusing on his company EIN that tax number he would walk into the same Chevy dealer and got his lowest vehicle right About a $51,000 van for 1.9% interest rate. Wow, and that's impactful. He looked at me and he goes Jerry, I can buy five of these vans now instead of just one at a time, right, Because that interest rate is so impactful. So it's just about he's still going to pay interest, but 9% or 1 or 2%, which one's better for a company, right? So that's one success story. And that was just after four months of it's all intentional work. It doesn't take a lot, by the way, just so if you're asking. It only takes two to three hours a month to do this. I didn't say a day or a week per month, but it's like going to the gym, David. I mean, you're a healthy guy, right? You can sign up for a membership just because we're paying for a membership to the gym. Do we get six pack abs and do we get a healthy heart just because we pay a membership for a gym? David: Unfortunately not. Jerry: Or is there a thing you just take three pills a day and you can get physically healthy there? David: you go, that's what I'm looking for. Yeah, that's what we're selling today. Jerry: We're living an immediate gratification world, right, we want food today. We got DoorDash. We want same day shipping. We want our stuff today, and that's the world we live in. But to get access to that it does take the hustle and muscle. It doesn't take a lot, but you're going to have to do the work. It's just like taking a walk every day for 30 minutes is so good for our health and our heart and it's hard for us to find time to schedule it. But just like this, you have to put in the work if you're going to get your company f*****g and funded right. So that's one story. Second story is we have a real estate investor guy down in Texas and he's been in business for over 20 years. I mean he's a Texan, I mean you know Texas, I mean it's the Republic of Texas, I mean it's his own country. I mean you know what I'm saying there, right? I do, I do. I know you have some clients down there as well. So when I look at Texas, this guy had really a big ego, been doing a great job, very successful. He has over 105 properties, okay. So he's a big deal, okay. I'm not going to mention his revenue because some of my taggamer I was just saying, here he is. So he came to us and he couldn't get funded and he thought our program was full of it. Right, he says this is just sounds too good to be true. I don't. I've been doing this. I've got bankers, I've got a fractional CFO, I've got this figured out. I don't see your help. So then we got into asking about personal credit and company credit as company's credit score and he thought he had a good company credit score. So we ran the report, went through it. Here's the thing he had some blemishes, but here was the big problem on fundability. He'd been in business for 20 years and moved to a lot of different locations and it filled out a lot of paperwork. We're all busy. When you're an entrepreneur and you've got a hundred and over a hundred properties, I mean you're busy. Sure, you've got a lot of stuff going on. So he would have filled out the Dunn and Bradstreet and he put WM period with the secretary of state. He was listed as William. Well, you and I know that WM, period and William mean the same thing as humans, right, right, your cross references WM period and William. What does it say? A mismatch and it's an automatic decline. He also didn't have his phone number. Listen to this, folks your phone number can't be a cell phone number. It has to be a landline or a VoIP service. Now, the VoIPs can be what. It can be transferred to your cell phone number David, let me ask you a question When's the last time you use 411 or your area code in 5551212 to look up a business number 30 years, do you know? If your business landline or void number is not registered with 411 National Directory, it's an automatic decline for corporate funding. David: I did not know that. Jerry: So that's another secret rule. So this is some education that David and I are providing to just things like that Having a website or landing page, having a corporate email address. Your number has to be listed. You have to have a business bank account. There's just a little thing. And why is that, folks? Over 80% of small businesses fail in the first five years because of cashflow. Well, if you don't look like a real company, you don't have a phone number, you don't have the business bank account, merchant services, you don't have a corporate email it's a PO box. You can't use a PO box. Well, I have a UPS store, david. It's a fancy PO box. It's still a place where you don't live and they can't access you. So a home address can be used, even though I don't recommend it, because now they'll know where your family lives and lives the whole entire world. But you can do things and get systems and processes put in place. It's all about fundability. On the company, no different than you are personally, it's just a lot easier to get personal credit because there's over 4 million people using it to finance their lifestyle. However, on businesses, they tell us that we can be protected from lawsuits as a limited liability corporation and we'll get funding. Here's the only problem. We never signed up for the credit bureaus that report our business payments so we can build fundability with the corporate vendors and vendors, right? No one told us that. So when you go to deposit your money in the bank, david, what happens? They try to get you money. They look at you and they just said, hey, here's a business credit card, we can get you a line of credit, but we just need you to do what with it personally. Gary, you got to get it fundable and you got to find lenders and vendors that report. And this Texan okay that once we got his name right, got his phone number listed and he had a couple of blemishes that he wasn't aware of we were able to get him all of these commercial real estate loans with no guarantors, not leveraging his other properties. He was able to get corporate millions of dollars in corporate in less than a year, all on his company now, which is a couple of fundability rules and a couple of secrets that he wasn't available on how to turn his company in standing on his own two legs financially just by the fundability rules, the corporate credit bureaus and using vendors to report in the lining up so he can get access to the same things he was doing now, but he was personally guaranteeing everything leveraging his other properties or his name to continue to grow his real estate company. David: Yeah, and I imagine does that also mean that in theory, if he wanted to, if each project if he wanted to have as a separate entity, he could avoid that cross collateralization issue. Yes, because that's the other problem I understand there is that all 105 of those properties are all cross collateralized. So if he has one project that somehow just goes belly up or property that it risks the other 104 properties Correct. Jerry: And if you get it on your company, then it doesn't put that into play, because when you're using personal credit, they're always going to leverage those. Because you are, you're putting those other properties as a the guarantee against the loan for that new property. If it does go belly up or doesn't do as well as you thought, that happens, right. When you're in real estate, I mean, most time you have wins but there are losses. You don't have to put your other properties in jeopardy. Do those things on corporate credit. It's no different than if you guys remember Donald Trump, right? He opened up that huge casino, used $3 billion of the bank's money and then after two years it failed. I don't think Donald Trump wants anything to fail. He doesn't invest in things that are going to fail Just didn't work out because of economy, location and where the world was at the time. Well, he was able to walk away from that. Did it affect his personal credit? Nope. Did he have to give up any of his personal assets in that deal? I doubt it. No. Two weeks later, he bought a golf resort in Doral, florida, right, sure? So, without affecting anything with that. So that's the power of corporations. No different than I'll tell you another story. Remember Home Depot and Lowe's and LA Fitness? Right, those are all Wall Street corporations, right? Stock L's stock owned, and all of that During the pandemic. They were able to be open. You can only have 50 people in the store right, they were able to do that. But what about the local hardware guy in town? They had to be shut down. The local mom and pop fitness place? They had to be shut down. So there's a difference and that's why we talk about this. Jay Galt, we're here to give the power and advantage back to the main street business owners by building fundability so their corporation has the cash flow, the access because this is all about getting ready access, cash and capital for you to take on those storms, to survive those storms and to grow and scale. Walmart, sam Walton, would not have been the world's largest retailer if he didn't figure out corporate credit. He would still be in Benton, arkansas if that was the case. So now, obviously, then he went stock, went public as an IPO, so that made it a moral difference for him to get there. But he would have never got to that position if he wasn't able to scale that. Take advantage of the back in the 80s. Remember when he took down Kmart? Right, but it was through cash capital, corporate funding that allowed him to do the advertising and get belly up and take on the big giant. Now he's the big giant. So just consider that that just because you're labeled a small business owner doesn't mean you have to be small. What if you wanted to franchise? What if you wanted to grow and scale? What if you wanted to buy your own property and land and build your own manufacturing facility, get bigger into the corporate real estate market, be a truck driver and become a regional or national player? If those are things that you want to do and you just have an access, you're having problems accessing cash flow. The secret is building company credit on the tax number, that EIN number and getting out of the personal guarantee in the personal inquiry game. David: No, it makes sense so well. Thank you for those several stories. That illustrates it. So how does Jay Galt come into the picture? What's your role in helping these companies other than education? I'm sure there's more to it than that. How does your service work? Jerry: We're a SaaS company, which stands for Software as a Service. We have a robust platform that has seven-step blueprint inside of it that walks you step by step. But, more importantly, we have a white glove concierge service, kind of a do-it-for-you. But there's certain things you have to do. We can't use your bank lines of credit, your credit cards, and you don't want me to do that in your business, but we help you fix blemishes where to go to fix them. So we provide a coaching service that goes behind the SaaS platform so you're successful in your journey. So imagine getting a dedicated coach. They're not out of the Philippines or India. That's great for customer service. I think All of our credit analysts and our finance analysts. We have a whole back office advising team that helps our members. So we are a membership. There's a one-time fee that you would pay and when you come into that you get lifetime support from Galt through our SaaS product, the Getting Business Credit. So you have access to all of the corporate lenders and vendors that actually report. And our secret sauce is we won't work with your Put-Em-In Our Business Finance Suite unless they report to the credit bureaus. That'll help you for a robot, mobile and credit and if they don't show us the underwriting guidelines, because it's important to know what boxes must be checked before you apply for a loan, because in the corporate vending and lending world, if you get denied, you have to wait six to 12 months before you can reapply and that can really slow down momentum when you try to grow a business. So you don't have. That's not how consumer credit works, but that's how corporate credit works. So we have that. We also help with cash flow management. We really define ourselves as cash flow management experts getting you access and leveraging banks money at better rates and terms, understanding cash flow so you don't get into what expense or debt trouble, and then giving you a business valuation. David, this is the power. 98% of small business owners have never had a business valuation or appraisal done. So they're in the head and heart. They know what their company's worth, but you'll know exactly what it's worth, how to ensure it properly and where to invest your time. You'll get clear, sound facts about your company so you can invest your dollars and your time in the right parts to continue to grow the asset that you're building and properly protecting it, allowing you to do what Plan for an exit strategy and those are typically $10,000 on average. We provide that every year to our members with JGault. So we're really here with our three columns of getting corporate financing, access to lenders and vendors that report, understanding your cash flow management as you grow in scale, and then having your business valuation so you know the value, where to invest in it and to plan and know exactly if you want to sell it, when is the time to restructure, when is the time to sell it or if you're passing it down to one of your kids to run. Eventually you want to make it a generational company. Now you'll have corporate credit belt where they can walk into the seat, you can ride off into your retirement years and know that the corporate funding is going to be there for generations to come. So the legacy you can leave behind by building that company we passed on to generations, your kids, the grandkids and so forth and so on. David: No, it sounds great. So what should people do? Is their next step? If they're interested in learning more, Go to the website. What's kind of your first entry point for potential new customers? Jerry: I would highly recommend that you do that. David, I'm fine with you sharing my for your audience. It depends on how big that audience is my personal but I would go to jgaltio. That's J-G-A-L-T. No period, Just jgaltio and then you can check out our services and what we do and if there's more questions, there's a place where you can connect and have a private consultation if this is something you want to talk more about. David: Okay, that sounds great and that's jgaltio. Jerry: Yes. David: Okay, what is we're wrapping up here? Is there anything? I didn't ask you that you wish I had asked you? Jerry: Wow, that's a great question. You did a great job. I mean, obviously I can understand why you have a successful podcast out there, david. Well, you're too nice. Oh, no worries, I mean, you've been doing this a long time. The only thing that I would share with American entrepreneurs out there today is we're really passionate, and just me as an owner, my goal is not to sell something. I have four companies. The only reason why Cole and my partner and I started jgalt was to serve and educate. But there's more than education. It's all about impact. So if there's something where you're wanting to grow an asset and you want to get there, we're here to have an intelligent conversation, a consultation, if you will, about where you're at, where you're wanting to go, and about 80% you didn't ask this. So does everybody want jgalt? Of course we're going to think everybody needs jgalt right, it's our company. Same thing with yours, david. I'm sure you feel the same way. If you're exporting products, you will find a better guy right Outside the country. So we're really great at what we do. But only about 80% of the companies we talk to every week take advantage of jgalt services, because it's not for everyone. So there are depends on where you're at and what you're trying to accomplish. That's why we're kind of looking at ourselves as the doctors of business credit. It doesn't make sense for everyone. It may not make sense today, or it may not make sense at all If you're just have a side hustle or something in your house that you're just doing is just to make some additional income to pay off debt or something like that. We're truly looking at companies that are looking to grow and scale and really be disruptors, like us, in the product or the services that they're offering across the United States. David: Well, thank you for adding to that. So, as we wrap up, that's Jerry Vaughn with jgaltio Jerry, this has really been fun and I think there's a lot of great value that your company provides for small to medium size privately held companies. So I really appreciate you taking time to come on the show and share some information. Jerry: Yeah, you're very welcome. It was a pleasure to be on it, david, so thank you so much again for having me on my pleasure.
David Colebatch, CEO of Tidal, joins Corey on Screaming in the Cloud to discuss Tidal's recent shift to a product-led approach and why empathizing with customers is always their most important job. David describes what it was like to grow the company from scratch on a boot-strapped basis, and how customer feedback and challenges inform the company strategy. Corey and David discuss the cost-savings measures cloud customers are now embarking on, and David discusses how constant migrations are the new normal. Corey and David also discuss the impact that generative AI is having not just on tech, but also on creative content and interactions in our everyday lives. About David David is the CEO & Founder of Tidal. Tidal is empowering businesses to transform from traditional on-premises IT-run organizations to lean-agile-cloud powered machines.Links Referenced: Company website: https://tidal.cloud LinkedIn: https://www.linkedin.com/in/david-colebatch/ TranscriptAnnouncer: Hello, and welcome to Screaming in the Cloud with your host, Chief Cloud Economist at The Duckbill Group, Corey Quinn. This weekly show features conversations with people doing interesting work in the world of cloud, thoughtful commentary on the state of the technical world, and ridiculous titles for which Corey refuses to apologize. This is Screaming in the Cloud.Corey: Welcome to Screaming in the Cloud. I'm Corey Quinn. Returning guest today, David Colebatch is still the CEO at Tidal. David, how have you been? It's been a hot second.David: Thanks, Corey. Yeah, it's been a fantastic summer for me up here in Toronto.Corey: Yeah, last time I saw you, was it New York or was it DC? They all start to run together to me.David: I think it was DC. Yeah.Corey: That's right. Public Sector Summit where everything was just a little bit stranger than most of my conversations. It's, “Wait, you're telling me there's a whole bunch of people who use the cloud but don't really care about money? What—how does that work?” And I say that not from the position of harsh capitalism, but from the position of we're a government; saving costs is nowhere in our mandate. Or it is, but it's way above my pay grade and I run the cloud and call it good. It seems like that attitude is evolving, but slowly, which is kind of what you want to see. Titanic shifts in governing are usually not something you want to see done on a whim, overnight.David: No, absolutely. A lot of the excitement at the DC summit was around new capabilities. And I was actually really intrigued. It was my first time in the DC summit, and it was packed, from the very early stages of the morning, great attendance throughout the day. And I was just really impressed by some of the new capabilities that customers are leveraging now and the new use cases that they're bringing to market. So, that was a good time for me.Corey: Yeah. So originally, you folks were focused primarily on migrations and it seems like that's evolving a little bit. You have a product now for starters, and the company's name is simply Tidal, without a second word. So, brevity is very much the soul of wit, it would seem. What are you doing these days?David: Absolutely. Yeah, you can find us at tidal.cloud. Yeah, we're focused on migrations as a primary means to help a customer achieve new capabilities. We're about accelerating their journey to cloud and optimizing once they're in cloud as well. Yeah, we're focused on identifying the different personas in an enterprise that are trying to take that cloud journey on with people like project, program managers, developers, as well as network people, now.Corey: It seems, on some level, like you are falling victim to the classic trap that basically all of us do, where you have a services company—which is how I thought of you folks originally—now, on some level, trying to become a product or a platform company. And then you have on the other side of it—places that we're—“Oh, we're a SaaS company. This is hard. We're going to do services instead.” And it seems like no one's happy. We're all cats, perpetually on the wrong side of a given door. Is that an accurate assessment for where you are? Or am I misreading the tea leaves on this one?David: A little misread, but close—Corey: Excellent.David: You're right. We bootstrapped our product company with services. And from day one, we supported our customers, as well as channel partners, many of the [larger size 00:03:20] that you know, we supported them in helping their customers be successful. And that was necessary for us as we bootstrapped the company from zero. But lately, and certainly in the last 12 months, it's very much a product-led company. So, leading with what customers are using our software for first, and then supporting that with our customer success team.Corey: So, it's been an interesting year. We've seen simultaneously a market correction, which I think has been sorely needed for a while, but that's almost been overshadowed in a lot of conversations I've had by the meteoric rise and hype around generative AI. Have you folks started rebranding everything with a fresh coat of paint labeled generative AI yet as it seems like so many folks have? What's your take on it?David: We haven't. You won't see a tidal.ai from us. Look, our thoughts are leveraging the technology as we always had to provide better recommendations and suggestions to our users, so we'll continue to embrace generative AI as it applies to specific use cases within our product. We're not going to launch a brand new product just around the AI theme.Corey: Yeah, but even that seems preferable to what a lot of folks are doing, which is suddenly pivoting their entire market positioning and then act, “Oh, we've been working in generative AI for 5, 10, 15 years,” in some cases. Google and Amazon most notably have talked about how they've been doing this for decades. It's, “Cool. Then why did OpenAI beat you all to the punch on this?” And in many cases, also, “You've been working on this for decades? Huh. Then why is Alexa so terrible?” And they don't really have a good talking point for that yet, but it's the truth.David: Absolutely. Yeah. I will say that the world changed with the OpenAI launch, of course, and we had a new way to interact with this technology now that just sparked so much interest from everyday people, not just developers. And so, that got our juices flowing and creativity mode as well. And so, we started thinking about, well, how can we recommend more to other users of our system as opposed to just cloud architects?You know, how can we support project managers that are, you know, trying to summarize where they're at, by leveraging some of this technology? And I'm not going to say we have all the answers for this baked yet, but it's certainly very exciting to start thinking outside the box with a whole new bunch of capabilities that are available to us.Corey: I tried doing some architecture work with Chat-Gippity—yes, that is how I pronounce it—and it has led me down the primrose path a little bit because what it says is often right. Mostly. But there are some edge-case exceptions of, “Ohh, it doesn't quite work that way.” It reminds me at some level of a junior engineer who doesn't know the answer, so they bluff. And that's great, but it's also a disaster.Because if I can't trust the things you tell me and you to call it out when you aren't sure on something, then I've got to second guess everything you tell me. And it feels like when it comes to architecture and migrations in particular, the devil really is in the details. It doesn't take much to design a greenfield architecture on a whiteboard, whereas being able to migrate something from one place to another and not have to go down in the process? That's a lot of work.David: Absolutely. I have used AI successfully to do a lot of research very quickly across broad market terms and things like that, but I do also agree with you that we have to be careful using it as the carte blanche force multiplier for teams, especially in migration scenarios. Like, if you were to throw Chat-Gippity—as you say—a bunch of COBOL code and say, “Hey, translate this,” it can do a pretty good job, but the devil is in that detail and you need to have an experienced person actually vet that code to make sure it's suitable. Otherwise, you'll find yourself creating buggy things downstream. I've run into this myself, you know, “Produce some Terraform for me.” And when I generated some Terraform for an architecture I was working on, I thought, “This is pretty good.” But then I realized, it's actually two years old and that's about how old my skills were as well. So, I needed to engage someone else on my team to help me get that job done.Corey: So, migrations have been one of those things that people have been talking about for well, as long as we've had more than one data center on the planet. “How do we get our stuff from over here to over there?” And so, on and so forth. But the context and tenor of those conversations has changed dramatically. What have you seen this past year or so as far as emerging trends? What is the industry doing that might not be obvious from the outside?David: Well, cost optimization has been number one on people's minds, and migrating with financial responsibility in mind has been refreshing. So, working backwards from what their customer outcomes are is still number one in our book, and when we see increasingly customers say, “Hey, I want to migrate to cloud to close a data center or avoid some capital outlay,” that's the first thing we hear, but then we work backwards from what was their three-year plan. And then what we've seen so far is that customers have changed from a very IT-centric view of cloud and what they're trying to deliver to much more business-centric. Now, they'll say things like, “I want to be able to bring new capabilities to market more quickly. I want to be able to operate and leverage some of these new generative AI technologies.” So, they actually have that as a driving force for migrations, as opposed to an afterthought.Corey: What I have found is that, for whatever reason, not giving a shit about the AWS bill in my business was a zero-interest-rate phenomenon. Suddenly people care an awful lot. But they're caring is bounded. If there's a bunch of easy stuff to do that saves a giant pile of money, great, yeah, most folks are going to do that. But then it gets into the idea of opportunity cost and trade-offs. And there's been a shift there that I've seen where people are willing to invest more in that cost-cutting work than they were in previous years.It makes sense, but it's also nice to finally have a moment to validate what I've assumed for seven years now that, yeah, in a recession or a retraction of the broader industry, suddenly, this is going to be top-of-mind for a lot of folks. And it's nice to see that that approach was vindicated because the earlier approach that I saw when we saw something like this was at the start of Covid. And at that point, no one knew what was happening week-to-week and consulting leads basically stopped for six months. And that was oh, maybe we don't have a counter-cyclical business. But no, it turns out that when money means something again as interest rates rise, people care about it more.David: Yeah. It is nice to see that. And people are trying to do more with less and become more efficient in an advanced pace these days. I don't know about you, but I've seen the trends towards the low-hanging fruit being done at this point so people have already started using savings plans and capabilities like that, and now they're embarking in more re-architecture of applications. But I think one stumbling block that we've noticed is that customers are still struggling to know where to apply those transformations across their portfolio. They'll have one or two target apps that everybody knows because they're the big ones on the bill, but beneath that, the other 900 applications in their portfolio, which ones do I do next? And that's still a question that we're seeing come up, time and again.Corey: One thing that I'm starting to see people talking about from my perspective, has been suddenly they really care about networking in a way that they did not previously. And I mean, this in the TCP/IP sense, not the talking to interesting people and doing interesting things. That's been basically steady-state for a while. But from my perspective, the conversations I'm having are being driven by, “Wait a minute. AWS is going to start charging $3.50 a month per assigned IPV4 address. Oh, dear. We have been careless in our approach to this.” Is that something that you're seeing shaping the conversations you're having with folks?David: Oh yeah, absolutely. I mean right off the bat, our team went through very quickly and inventoried our IPV4, and certainly, customers are doing that as well. I found that, you know, in the last seven years, the migration conversations were having become broader across an enterprise customer. So, we've mapped out different personas now, and the networking teams playing a bigger role for migrations, but also optimizations in the cloud. And I'll give you an example.So, one large enterprise, their networking team approached us at the same time as their cloud architects who were trying to work on a migration approached us. And the networking team had a different use case. They wanted to inventory all the IP addresses on-premises, and some that they already had in the cloud. So, they actually leveraged—shameless plug here—but they leveraged out a LightMesh IPAM solution to do that. And what that brought to light for us was that the integration of these different teams working together now, as opposed to working around each other. And I do think that's a bit of a trend change for us.Corey: IPAM has always been one of those interesting things to me because originally, the gold standard in this space was—let's not kid ourselves—a Microsoft Excel spreadsheet. And then there are a bunch of other offerings that entered into the space. And for a while I thought most of these were ridiculous because the upgrade was, you know, Google Sheets so you can collaborate. But having this done in a way with particular permissions and mapping in a way that's intuitive and doesn't require everyone to not mess up when they're looking at it, especially as you get into areas of shared responsibility between different divisions or different team members who are in different time zones and whatnot, this becomes a more and more intractable problem. It's one of those areas where small, scrappy startups don't understand what the fuss is about, and big enterprises absolutely despair of finding something that works for them.AWS launched their VPC IPAM offering a while back and if you look at it from the perspective of competing with Google Sheets, its pricing is Looney Tunes. But I've met an awful lot of people who have sworn by it in the process, as they look at these things. Now, of course, the caveat is that like most AWS offerings, it's great in a pure AWS native environment, but as soon as you start getting into other providers and whatnot, it gets very tricky very quickly.David: No, absolutely. And usability of an IP address management solution is something to consider. So, you know, if you're trying to get on board with IPAM, do you want to do three easy steps or do you want to follow 150? And I think that's a really big barrier to entry for a lot of networking teams, especially those that are not too familiar with cloud already. But yeah, where we've seen the networking folks get more involved is around, like, identifying endpoints and devices that must be migrated to cloud, but also managing those subnets and planning their VPC designs upfront.You've probably seen this before yourself where customers have allocated a whole bunch of address space over time—an overlapping address space, I should say—only to then later want to [peer 00:13:47] those networks. And that's something that if you think you're going to be doing downstream, you should really plan for that ahead of time and make sure your address space is allocated correctly. Problems vary. Like, everyone's architecture is different, of course, but we've certainly noticed that being one of the top-button items. And then that leads into a migration itself. You're not migrating to cloud now; you're migrating within the cloud and trying to reorganize address spaces, which is a whole other planning activity to consider.Corey: When you take a look at, I guess the next step in these things, what's coming next in the world of migrations? I recently got to talk to someone who was helping their state migrate from, effectively, mainframes in many cases into a cloud environment. And it seems, on some level, like everyone on a mainframe, one, is very dependent on that workload; those things are important, so that's why they're worth the extortionate piles of money, but it also feels like they've been trying to leave the mainframe for decades in many cases. Now, there's a sense that for a lot of these folks, the end is nigh for their mainframe's lifespan, so they're definitely finally taking the steps to migrate. What's the next big frontier once the, I guess, either the last holdouts from that side of the world wind up getting into a cloud or decide they never will? It always felt to me like migrations are one of those things that's going to taper off and it's not going to be something that is going to be a growth industry because the number of legacy workloads is, at least theoretically, declining. Not so sure that's accurate, though.David: I don't think it is either. If we look back at past migrations, you know, 90, 95% of them are often lift-and-shift to EC2 or x86 on VMware in the cloud. And a lot of the work that we're seeing now is being described as optimization. Like, “Look at my EC2 workloads and come up with cloud-native or transformative processes for me.” But those are migrations as well because we run the same set of software, the same processes over those workloads to determine how we can re-platform and refactor them into more native services.So, I think, you know, the big shift for us is just recognizing that the term ‘migrations' needs to be well-defined and communicated with folks. Migrations are actually constant now and I would argue we're doing more migrations within customers now than we have in the past because the rate of change is just so much faster. And I should add, on the topic of mainframe and legacy systems, we have seen this pivot away from teams looking for emulation layers for those technologies, you know, where they want to forklift the functionality, but they don't want to really roll up their sleeves and do any coding work. So, they're previously looking to automatically translate code or emulate that compute layer in the cloud, and the big pivot we've seen in the last 12 months, I'd say, is that customers are more willing to actually understand how to rebuild their applications in the cloud. And that's a fantastic story because it means they're not kicking that technology debt can down the road any further. They're really trying to embrace cloud and leverage some of these new capabilities that have come to market.Corey: What do you see as, I guess, the reason that a number of holdouts have not yet done a migration? Like, historically, I've seen some that are pretty obvious: the technology wasn't there. Well, cloud has gotten to a point now where it is hard to identify a capability that isn't there in some form. And there's always been the sunk cost fallacy where, “Well, we've already bought all this stuff, and it's running here, so if we're not replacing it anytime soon, there's no cost benefit for us to replace it.” And that's actually correct. That's not a fallacy there. But there's also the, “Well, it would be too much work to move.” Sometimes true, sometimes not. Are you seeing a shift in the reasons that people are giving to not migrate?David: No, I haven't. It's been those points mostly. And I'd say one of the biggest inhibitors to people actually getting it done is this misconception that it costs a lot of money to transform and to adopt cloud tools. You've seen this through the technology keeps getting easier and easier to adopt and cheaper to use. When you can provision services for $0 a month and then scale with usage patterns, there's really no reason not to try today because the opportunity cost is so low.So, I think that one of the big inhibitors that comes up, though, is this cultural barrier within organizations where teams haven't been empowered to try new things. And that's the one thing that I think is improving nowadays, as more of this how-to-build-in-the-cloud capability becomes permeated throughout the organization. People are saying, “Well, why can't we do that?” As opposed to, “We can't do that.” You know what I mean? It's a subtle difference, but once leadership starts to say, “Why can't we do this modern thing in the cloud? Why can't we leverage AI?” Teams are given more rope to try and experiment, and fail, of course. And I think ultimately, that culture shift is starting to take root across enterprise and across public sector as well.Corey: One of the things that I find surprising is the enthusiasm with which different market segments jump onto different aspects of cloud. Lambda is a classic example, in that it might be one of the services that is more quickly adopted by enterprises than by startups and a lot of cases. But there's also the idea of, “Oh, we built this thing last night, and it's awesome.” And enterprises, like you know, including banks and insurance companies don't want to play those games, for obvious reasons.Generative AI seems to be a mixed bag around a lot of these things. Have you had conversations with a number of your clients around the generative AI stuff? Because I've seen Amazon, for example, talking about it, “Oh, all our customers are asking us about it.” And, mmm, I don't know. Because I definitely have questions about and I'm exploring it, but I don't know that I'm turning to Amazon, of all companies, to answer those questions, either.David: Yeah. We've certainly had customer conversations about it. And it depends, again, on those personas. On the IT side, the conversations are mostly around how can they do their jobs better. They're not thinking forwards about the business capabilities. So, IT comes to us and they want to know how can we use generative AI to create Lambda functions and create stateless applications more quickly as a part of a migration effort. And that's great. That's a really cool use case. We've used that generative AI approach to create code ourselves.But on the business side, they're looking forwards, they want to use generative AI in the, again, the sample size of my customer conversations, but they see that the barrier to entry is getting their data in a place that they can leverage it. And to them, to the business, that's what's driving the migration conversations they're having with us, is, “How do I exfil my data and get it into the cloud where I can start to leverage these great AI tools?”Corey: Yeah, I'm still looking at use cases that I think are a little less terrifying. Like, I want to wind up working on a story or something. Or I'll use it to write blog posts; I have a great approach. It's, “Write a blog post about this topic and here are some salient points and do it in the style of Corey Quinn.” I'll ask Chat-Gippity to do that and it spits out something that is, frankly, garbage.And I get angry at it and I basically copy it into a text editor and spent 20 minutes mansplain-correcting the robot. And by the time it's done, I have, like, a structure of an article that talks about the things I want to talk about correctly. And there may be three words in a sequence that were originally there. And frankly, I'm okay with plagiarizing from the thing that is plagiarizing from me. It's a beautiful circle of ripping things off that that's glorious for me.But that's also not something that I could see being useful at any kind of scale, where I see companies getting excited about a lot of this stuff, it all seems to be a thin veneer over, “And then we can fire our customer service people,” which from a labor perspective is not great, but ignoring that entirely, as a customer, I don't want that. Because by the time I have to reach out to a company's customer service apparatus, something has gone wrong and it isn't going to be solved by the standard list of frequently asked questions that I clicked on. It's something that is off the beaten path and anomalous and requires human judgment. Making it harder for me to get to people who can fix those things does not thrill and delight me.David: I agree. I'm with you there. Where I get excited about it, though, is how much of a force multiplier it can be on that human interaction. So, for example, in that customer's service case you mentioned, you know, if that customer service rep is empowered by an AI dashboard that's listening to my conversation and taking notes and automatically looking up in my knowledge base how to support that customer, then that customer success person can be more successful more quickly, I think they can be more responsive to customer needs and maybe improve the quality, not just the volume of work they do but improve the quality, too.Corey: That's part of the challenge, too. There have been a number of companies that have gotten basically rapped across the snout for just putting out articles as content, written by AI without any human oversight. And these don't just include, you know, small, scrappy content mills; they include Microsoft, and I believe CNN, if I'm not mistaken, had something similar with that going on. I'm not certain on that last one. I don't want to defame them, but I know for a fact Microsoft did.David: Yeah, and I think some of the email generators are plugging into AI now, too, because my spam count has gone through the roof lately.Corey: Oh, my God. I got one recently saying, “Hey, I noticed at The Duckbill Group that you fix AWS bills. Great. That's awesome and super valuable for your clients.” And then try to sell me bill optimization and process improvement stuff. And it was signed by the CEO of the company that was reaching out.And then there was like—I expand the signature view, and it's all just very light gray text make it harder to read, saying, “This is AI generated, yadda, yadda, yadda.” Called the company out on Twitter, and they're like, “Oh, we only have a 0.15% error rate.” That sounds suspiciously close to email marketing response rates. “Welp, that means 99% of it was perfect.” No, it means that you didn't get in front of most of those people. They just ignored it without reading it the way we do most email outreach. So, that bugs me a fair bit. Because my perspective on it is if you don't care enough to actually craft a message to send me, why should I care enough to read it?David: Completely agree. I think a lot of people are out there looking for that asymmetric, you know, leverage that you can get over the market, and generating content, to them, has been a blocker for so long and now they're just opening up the fire hose and drowning us all with it. So I'm, like, with you. I think that I personally don't expect to get value back from someone unless I put value into that relationship. That's my starting point coming into it, so I would maybe use AI to help assist forming a message to someone, but I'm not going to blast the internet with content. I just think that's a cheeky low-value way to go about it.Corey: I don't track the numbers anymore, but I know that at this point, through the size of my audience and the content that I put out, I have taken, collectively, millennia of human time focusing on—that has been spent consuming the content that I put out. And as a result of that, I have a guiding principle here, which is first and foremost, you've got to respect your audience. And I'm just going to have a robot phone it in is not respecting your audience. I have no problem with AI assistants, but it requires human oversight before it goes out. I would never in a million years send anything out to the audience that I hadn't at least read or validated first.But yeah, some of the signups that go out, the automatic things that you click a button and sign up for my newsletter at lastweekinaws.com, you get an auto message that comes out. Yeah, it comes out under my name and I either wrote it or reviewed it, depending on what generation of system we're on these days, because it has my name attached to it. That's the way that this works. Your credibility is important and having a robot spout off complete nonsense and you get the credit or blame for it? No thanks. I want to be doomed from my own sins, not the ones that a computer makes on my behalf.David: [laugh]. Yeah, I'm with you. It's unfortunate that so many people expect the emails from you are generated now. We have the same thing when people sign up for Tidal Accelerator or Tidal LightMesh, they get a personal email from me. They'll get the automated one as well, but I generally get in there through our CRM, and I send them a message, too. And sometimes they'll respond and say, “This isn't really David, is it?” No, no, it's me. You don't have to respond. I wanted to let you know that I'm thankful for you trialing our software.Corey: Oh, yeah. You can hit reply to any email I send out. It comes from corey@lastweekinaws.com and it goes to my inbox. The reason that works, frankly, at this scale is because no one does it. People don't believe that that'll actually work. So, on a busy week, I'll get maybe a dozen email replies to it or one or two misconfigured bounces from systems that aren't set up properly to do those things. And I weed those out because they drive me nuts.But it's a yeah, the only emails that I get to that address, honestly, are the test copies of those messages that go out, too, because I'm on my own newsletter list. Who knew? I have two at the moment. I have—yes, I have two specific addresses on that, so I guess technically, I'm inflating the count of subscribers by two, if advertisers ask. But you know, at 32,000 and change, I will take the statistical fudging.David: Absolutely. We all expect that.Corey: No, the depressing part, when I think about that is, there's a number of readers I have on the list that I know for a fact that I've been acquainted with who have passed away. They're never going to unsubscribe from these things until the email starts bouncing at some and undefinable point in the future. But it's also—it feels morbid, but on some level, if I continue doing this for the rest of my life, I'm going to have a decent proportion of the subscriber base who's died. At least when people leave their jobs, like, their email address gets turned off, things start bouncing and cool that gets turned off automatically because even when people leave voluntarily, no one bothers to go through an unsubscribe from all this stuff. So, automated systems have to do it. That's great. I'm not saying computers shouldn't make life better. I am saying that they can't replace a fundamental aspect of human caring.David: So, Corey Quinn, who has influence over the living and the dead. It's impressive.Corey: Oh, absolutely. Honestly, if I were to talk to whoever came up with IBM's marketing strategy, I feel like I'd need to conduct a seance because they're probably 300 years old if they're still alive.David: [laugh]. Absolutely.Corey: No, I get passionate about this stuff because so much of a lot of the hype now has been shifting away from letting people expand their reach further and doing things in intentional ways and instead toward absolute garbage, such as, “Cool, we want to get a whole bunch of clicks so we can show ads to them, so we're going to just generate all bunch of crap to your content and throw it out there.” Everything I write, even stuff that admittedly, from time to time, is aimed for SEO purposes for specific things that we're doing, but that's always done from a perspective of okay, my primary SEO strategy is write compelling, original content and then people presumably link to it. And it works. It's about respecting the audience and so many things get that wrong.David: Yeah, absolutely. It's kind of scary now because I always thought that podcasts and video were the last refuge of authentic content. And now people are generating that as well. You know, you're watching a video and you realize hey, that voice sounds exactly consistent, you know, all the way through. And then it turns out, it's generated. And there's a YouTube channel I follow because I'm an avid sailor, called World On Water. And recently, I've noticed that voice changed, and I'm pretty sure they're using AI to generate it now.Corey: Here's a story I don't think you probably know about yourself. So, for those who are unaware, David, I hang out from time to time in various places. There's a international boundary between us, but occasionally one of us will broach it, and good for us. And we have social conversations where somehow one of us doesn't have a microphone in front of our face. Imagine that. I don't know what that's like most weeks.And like, at some level, the public face comes off and people start acting like human beings. And something I've always noticed about you, David, is that you don't commit the cardinal sin, for an awful lot of people I meet, which is displaying contempt for your customers. When I have found people who do that, I think less of them in almost every case and I lose so much interest in whatever it is that they're doing. If you don't like the problem space that you're in and don't have respect for the people paying you to make these problems go away, you shouldn't be doing it. Like, I'll laugh at silly AWS misconfigurations, but my customers are there because they have a problem and they're bringing me in to fix it. And would I be making fun of? “Ha ha ha, you didn't spend eight months of your life learning the ins and outs of how exactly reserved instances apply in this particular context? What a fool is you.” That's not how it ever works. I wish I could say it wasn't quite as rare as it is but I'm tired of talking to people who have just nothing but contempt for their market. Good work on that.David: Thank you. Yeah, I appreciate that. You know, I had a penny-drop moment when I was doing a lot of consulting work as an independent contractor, working with different customers at different stages of their own journey and different levels of technology capabilities. You know, you work with management, with project people, with software engineers, and you start to realize everybody's coming from a different place. So, you have to empathize with where they're at.They're coming to you usually because you have a level of expertise, that you've got some specialization and they want to tap into that capability that you've created. And that's great. I love having people come to me and ask me questions. Sometimes they don't come to me nicely asking questions, they make some assumptions about me and might challenge me right off the bat, but you have to realize that that's just where they're coming from at that point in time. And once you connect with them, they'll open up a little bit more, too; they'll empathize with yourself. So yeah, I've always found that it's really important for myself personally, but also for our team to empathize with customers, meet them where they're at, understand that they're coming from a different level of experience, and then help them solve their problems. That's job number one.Corey: And I'm a firm believer that if you don't respect your customer's business, they shouldn't be your customer. It's happened remarkably few times in the however many years I've been doing this, but there have been a couple of folks that have reached out I always very politely decline to work with them when this happens. Because you don't want to make people feel obnoxious for reaching out and, like, “Can you help me with my problem?” “How dare you? Who do you think you are?”No, no, no, no, no, none of that. But if there's a value misalignment or I don't think that your product is going to benefit people who use it as directed, I will not let you sponsor what I do as an easy example. Because I can always find another sponsor and make more money, but once I start losing the audience's trust, I'll never get that back, and I know that. It's the entire reason I do things the way that I do them. And maybe, on some level, from purely capitalist perspective, I'm being an absolute fool, but you know, if you have to pick a way to fail and assume you're going to get it wrong, how do you want to be wrong? I'll take this way.David: Yeah, I agree. Keep your ethics high, keep your morals high, and the rest will fall into place.Corey: I love how we started having ethical and morality discussions that started as, “So, cloud migrations. How are they going for you?”David: Yeah [laugh]. Certainly wandered into some uncharted territories on that one.Corey: Exactly. We started off in one place; wound up someplace completely removed from anything we could have reasonably expected at the start. Why? Because this entire episode has been a beautiful metaphor for cloud migrations. I really want to thank you for taking the time to chat with me on this stuff. If people want to learn more, where should they go to find you?David: tidal.cloud or LinkedIn, I'm very active on LinkedIn these days.Corey: And we will, of course, put links to both of those in the show notes. Thank you so much for going down this path with me. I didn't expect it to lead where it did, but I'm glad we went there.David: Like the tides ebbing and flowing. I'll be back soon, Corey.Corey: [laugh]. I will take you up on that and hold you to it.David: [laugh]. Sounds great.Corey: David Colebatch, CEO at Tidal. I'm Cloud Economist Corey Quinn and this is Screaming in the Cloud. If you enjoyed this podcast, please leave a five-star review on your podcast platform of choice, whereas if you've hated this podcast, please leave a five-star review on your podcast platform of choice along with an angry, upset comment that doesn't actually make cohesive sense because you outsourced it to a robot.Corey: If your AWS bill keeps rising and your blood pressure is doing the same, then you need The Duckbill Group. We help companies fix their AWS bill by making it smaller and less horrifying. The Duckbill Group works for you, not AWS. We tailor recommendations to your business and we get to the point. Visit duckbillgroup.com to get started.
If you want to create desire in sales, it has to be about them. Their wants, their needs. The things that they're looking to accomplish from the relationship, because that's where all their desire comes from. David: Hi, and welcome to the podcast. In today's episode, co host Jay McFarland and I will be discussing creating desire with your communication in sales. Welcome back, Jay. Jay: Hey, David. It's great to be here, as always. read this title and I've been thinking about it, but I'd love to hear your perspective up front. What do you mean creating desire with your communication? David: Well, I think if we're In the business of conveying value and providing products and ultimately selling something to someone else, the only way that happens is if there is enough desire created in the other person to make them want to move forward. Without the desire to move forward, it's never going to happen. It's kind of a funny word, particularly in sales. We tend not to use words like desire a whole lot. We tend to think in terms of qualification and segmentation, and we keep it all very clinical. But without the component of wanting it, if the prospect or client does not want what we're selling, then absolutely nothing is going to happen. And the only way that desire is either created or channeled is generally with our communication. Now, if we're offering something that they already want, then the desire is already built in. But if not, if they don't see all the benefits, if they don't see what it can do for them, then they might not be feeling it enough yet to pull the trigger. And at that point, it becomes our job to say, all right what do I need to do in terms of my communication with this person to help either create some of that desire or ideally uncover the desire that's already buried inside there? Jay: Mmm. That's great. I think about my own sales process. One of the things we do in our company is we offer a free consultation, and that's my job. I give the consultation. And there's nothing I hate more than when somebody says free consultation, and what they really meant was free sales call, right? And so the minute you get them on the phone, they're pitching you their product, and I don't. I listen, I ask questions, I tell them about their circumstances, I tell them what steps they can take to make their life better. And I always start the call saying, "just so you know, this is not a sales call. My goal is to give you the information that you need." It never fails. I've never had a call in my life, and I've done probably a thousand of these. At the end of the call, they say, "well, how much do you charge for these services? And I'd like to move forward with you." I never, never tried to sell them on anything. And to me, if you can do it, you can't do it with every situation. But to me, that's just ideal. They're asking me how much I charge. I've created that desire in them without one word that sounds like a sales pitch. David: Right. Because if you go immediately into sales mode, if you start out with that, if you lead with a sales pitch, it's not going to create desire in anyone. Because a lot of the desire that we're going to be able to uncover in our prospects is going to come from the answers we get to the questions that we ask them. And so, you know, the whole diagnostic approach to sales, just like the diagnostic approach in medicine. First, you have to examine the patient to find out where it hurts. Examine, and then diagnose, and then and only then can you prescribe, right? So you have to examine the patient, find out where it hurts, find out what their needs are, find out if they need what we have to offer. If they don't have a need for what we have to offer, then yeah, there's no need for a sales pitch, right? And once we've done that examination, then we make the diagnosis. Based on what you've told me, it sounds like you're looking to accomplish this,
Many of us are getting robbed every day, whether we know it or not. We just may be robbing ourselves, too, without fully understanding the consequences of our behavior. It could be through ignorance, lack of attention, or bad decisions. Whatever the cause, we're getting robbed of the very energy that enables good health, inspiration, and possibility of higher connection, all to the detriment of our physical, emotional, and mental wellbeing. What do we mean? Throughout Portals we explore the energetic nature of human life: our physical systems, mind and body balance, creativity, and natural connections to higher intelligence and expanding awareness, all depend on different levels and natures of energy. Every feeling, idea, and thinking pattern carries energetic potential; we are continually generating or consuming energy from internal and external sources. But what quality of energy? Nourishing or depleting, toxic or regenerative, we can choose. In the latest chapter of the Portals series “Current Openings: What the World Doesn't Quite Get Yet”, Aviv Shahar and David Price Francis guide us through a deeper look at our energetic nature and the five basic fuels we use to generate energy. They explore the various energy ‘robbers' that can leave us susceptible to imbalance and ill health.We live between two worlds: the visible and matter; and the invisible and energy. We need to understand both, and the purpose or direction in which we travel in both worlds. These core self-insights — how to manage our energy, our cycles, our emotions — ought to be part of the knowledge of a life, but are usually left out of education. As the size of the energy problem and challenge grows, new energy potentials and energy sources are coming online to help us re-naturalize to planetary and universal frequencies. The invitation is to reground in our natural system; to become more aware of how we consume each of the five basic types of energy and become more intelligent about the value of sleep. It's the predicament of being addicted to the easy fast solution, easy fast food, easy fast energy sources. We develop our willpower by growing our will not power — what we say ‘no' to. It expands what we can say ‘yes' to, and uses our energies in a more purposeful way.This conversation is part of the continuing Portals discovery into what is emerging on the frontiers of human experience in this time of profound change. Information about upcoming special events can be found on the Events page. Also visit and subscribe to our YouTube channel.TWEETABLE QUOTES “My understanding of the word ‘ education ' in its origin is that it comes from the Latin word "educare," which apparently means to lead out from inside. ” ( David ) “Well, I think beginning today because it's always beginning in the now, what do we call a human with no energy? But I thought of a dead body. That's what a human is — without any energy whatsoever — and even then, there's a process of decomposition that causes certain kinds of energies to leave. So we compose and we decompose as human beings, right? But for a human being with no energy input, you can say the closest thing to it is a coma. But when you go beyond that stage, we move into the process we call death. So death is the departure of the energies that keep us alive. ” (David) “If somebody drinks polluted liquid over a period of time, they're going to disrupt their system through the liquid food. If someone starves themselves of oxygen, or if you've taken yourself too far away from a source of full spectrum lighting, that's where in the northern climates now they have special light boxes to emit full spectrum lighting that they found brings greater harmony and benefit to the human system. So we can cause that erosion and fragmentation through environmental reasons. ” (David) “So I think of the idea of the ‘ Sun Salutation ' in yoga; it's not a posture, although it is as well, but it's the idea of going out into the sun, being in the sunshine, and getting nutrients from the sun. So this would be structuring our lives for maximal nutrition at four levels, and then in the fifth level, it will be being aware of what we're introducing ourselves to. So something about our eyes - it's very interesting.” (David) RESOURCES MENTIONED Portals of Perception WebsiteAviv's LinkedIn Aviv's TwitterAviv's WebsiteEnergy Worlds
Jay: I'm not lying when I tell you that I struggle with this idea that I'm being a pest in sales. So I think it'll help my sales, I think it'll help my daily attitude towards what I do. David: Well, I'll tell you something, Jay, many of the most conscientious human beings feel this way. I mean, if you're one of those sales guys who, "Hey, everybody loves me," you're not even going to think of that. It's never even going to occur to you. So the people who are most likely to struggle with this are people who just want to help. They're there to provide a service. Jay: Yeah. David: They don't want to be a pest. And so really, most of the people who feel this way are the ones who are least likely to be a pest because they're not arrogant to begin with. David: Hi, and welcome to the podcast in today's episode, co-host Jay McFarland, and I'll be discussing the topic of how to avoid being a pest in sales. Welcome back, Jay. Jay: Oh, thank you for having me, Dave. This is a real problem for me. I always feel like a pest in sales, whether it's an email, whether it's a text, I always feel like they don't want to hear from me. And. it's been an ongoing problem. I'll just be honest with you when it comes time, okay? I got to sit down and reach out to people. I'm like, oh, do they really want to hear from me? Am I going to bug them? How do I get over that? David: Yeah, it's a great question. A number of years ago, I was doing a speaking presentation and Mary Lou Retton, the gymnast, was also speaking at the same event, and she told this story. It was just so great. I don't know if somebody asked the question, but it came up in her presentation where people were saying to her, when she was doing her routine, the person who went on before her did a really, really good routine. And so at that point, the pressure would really be on her to deliver a flawless performance if she wanted to be able to get the score that she needed. Jay: Mm-hmm. David: And so the question was how do you deal with that when this person delivers a great performance and you have to go on next? Don't you feel nervous after that? And her response, I'll never forget it. And this was easily 10 or 12 years ago this happened. Jay: Yeah. David: Her response was, "you know, I watched her performance and it was great. And I looked at it and I thought to myself, wait till they get a load of me!" Jay: Mmmm. David: And I was like, "wow, how much does that apply in sales?" Jay: Yeah, David: I mean, I think it applies every bit as much in sales as it does in gymnastics. If you go in with the idea of, oh, that person's better than I am, or they're not going to like me, or they're going to think that I'm annoying, or I'm rude, or I'm obnoxious, or I'm a pest, or whatever. If you go in with that mindset, then what you are likely to say, the way that you're likely to position yourself, all of those things are going to reflect that. But if you're able to go into a situation with the idea of "wait 'til they get a load of me," or at least "I have something valuable to offer." Now, any salesperson who doesn't feel like they have something valuable to offer should be either in another line of work or selling a different line of product. Right? Jay: Yeah. David: You need to be able to feel good about what it is that you're selling. And if you know that what you're selling is, ideally, better than the competition. If you know that you're going to deliver better than your competition, you know that you're going to be more responsive, you're going to be more concerned, you're going to be more caring. If you know all those things, then you owe it to the client to convey all that. And if you don't convey it to them, then you're doing them more harm than good, and you're doing yourself and them more harm than good. So, If you look at it from the standpoint of, "I'm here to provide a solution, I'm here to help,
When you are choosing worthy clients and making decisions about whether or not a prospect is worthy of your time and attention, whether or not they're worthy of follow up, you are bound to make some mistakes in that process. And so when you do this, you have to recognize that some of that is going to come with the territory. You may make a wrong decision that will cost you some business down the line. So you have to weigh that against quality of life issues. David: Hi, and welcome to the podcast. In today's episode, co-host Jay McFarland, and I will be discussing choosing worthy clients. Welcome back, Jay. Jay: Hey, thank you, David. It's such a pleasure to be back on again. And once again, I love this topic. I feel like, personally in my experience, there is a tendency to believe that you have to take every client. And you know what? In some businesses that is true, you're going to take every customer who comes through the door. In other cases, you can be more selective and it could make your life a lot easier. It can make your business a lot better. David: Yeah, that's one of the reasons I thought this would be a really good topic, because I believe that in many businesses they don't even consider this. I think that in many businesses we feel like, okay, we're going to serve whoever we can serve. We want to take whoever comes through the door, and we just want to serve them to the best of our ability. And while that is noble, it's not always great from your own standpoint, from your own business standpoint. And I wish this was something that I knew from the beginning, but it was not. As most things, we learn it the hard way and this is no exception. And at some point along the way, the idea of pursuing worthy clients, choosing worthy clients, tracking down worthy clients just really started to appeal to me. And when I started using that term with some of my clients, they were like," wow, that never even occurred to me. and what do you mean by worthy? You know, things like that. So we can dive into all of that in today's podcast. Jay: Yeah. I think that there are some things that we hear over the years and they start to sink in. We just don't ever challenge 'em in our mode of thinking. Like I think of the customer's always, right. I've come to believe. No, no, that's just not true. Do I want to do everything to satisfy the customer? Yes. Yes, I do. But there are customers who can never be satisfied or I can't provide what they want. So, no, they're not always right. So I love that we have these discussions. So let's start off with this word worthy. What in your mind is a worthy customer? David: Well, I think we have to decide that for ourselves, what we determine to be a worthy prospect or client for ourselves. And some of that can go back to what you talked about, in the customer's always right or the customer's not always right. But you can have a customer that is absolutely right about things and you can have a good relationship with them, but they may not still be a worthy client if they are taking up more time than they are costing. So if they're not really focused on buying from you to the extent that you need them to in order to be worthy of your time and attention, it may be something as simple as that. And in those situations, I'm not suggesting, okay, well you're just going to bag all these people. If you've got a relationship with someone and you like the relationship you have and you're okay with it, then you can deem that prospect or client worthy. You can say, "all right, well, I like dealing with this person, therefore they are worthy of my time and attention." But for me, I believe that's where it starts. We each have to decide. Is this prospect or is this client worthy of my time and attention? Because obviously our time is the most important asset we have, and when we fail to recognize that, we can invest a lot of it,
If our storytelling allows us to build trust, build credibility, build a bond, and increase sales, then we're telling the right stories. If it's just designed to be manipulative, then save your breath. David: Hi, and welcome to the podcast. In today's episode, co-host Jay McFarland and I will be discussing the power of storytelling in sales. Jay, tell me a story. Jay: Listen, I am a storyteller. I love to tell stories and I like to build when I tell stories, right? And so this is something that I use on a regular basis when I'm talking to people and it's not just telling a story. I think it's putting people in a story and what character are they in that story? And I think most people want to be the hero in their own story, right? David: They do. which gets to the whole idea of the hero's journey and all that kind of stuff for anybody who follows that sort of storyline or that Jay: mm-hmm. David: type of story arc, The Hero's Journey by Campbell, I can't think of his first name. But it's a book and it describes essentially the plot of most of the most popular movies of all time. Jay: Yeah, David: Right. Star Wars, Rocky, anything where you've got this person who is initially kind of beaten down and not winning, and then they come in contact with a mentor and then they learn new things and they have a confrontation and it might not go well, and then they learn some more things and then eventually they come out triumphant. There's a whole arc. And you're right, a lot of people want to be the hero, and the challenge as a salesperson is, in our storytelling, we can't be the hero. Mm. Right. We need to make sure that the person we're talking to is the hero and that we are the mentor or guide. We're not Luke Skywalker. We have to be Yoda. We have to be the one who's helping Luke to destroy the Death Star. Jay: Yeah. This is a really hard thing, I think for a lot of people. Because we want to go in and think we're the hero, right? I'm coming into your business. I'm going to provide something that is going to save the day, and then I'm going to walk away and you're going to praise me and you're going to pay me. But that's not what really is supposed to be happening, right? It's that I have the tools and the resources that you need to be the hero. David: Yes, and it's easy to forget that, particularly when we're trying to read ourselves in as the hero to each story. But one of the things that I've noticed in sales is that many, if not most of the very best salespeople are also the best storytellers. You can say. "Hi, do you know what time it is?" And instead of getting the time, you will get a fantastic story that might weave the time into it. Jay: Mm. David: But you're going off in all kinds of directions, and when they do it right, it's captivating enough that you sit there and pay attention. Jay: Yeah. But you pointed out "when you do it right." David: Yes. Jay: Right. so let's talk about that a little bit. Let's talk about your feedback on doing it right. David: Well, number one, as we already touched on, it can't just be all about you. You can't make the story about yourself. You need to make it about them, and a lot of that upfront comes from finding out about them, which means you're asking more questions, then you're answering, hopefully in the early stages. Jay: Yes David: Because customers always just want to know what it's going to cost upfront, and you don't generally want to lead off with that. So a lot of our storytelling will actually have to come from the conversations that ensue after we've gathered enough information. Jay: Yeah. David: To know what those stories need to be about. If we just go in and we meet somebody for the first time and we start telling them stories, that's probably not ideal. We need to still initially do some sort of diagnostic upfront to find out what their interests are. Now, of course,
David Colebatch, CEO at Tidal.cloud, joins Corey on Screaming in the Cloud to discuss how Tidal is demystifying cloud migration strategy. David and Corey discuss the pros and cons of a hybrid cloud migration strategy, and David reveals the approach that Tidal takes to ensure they're setting their customers up for success. David also discusses the human element to cloud migration initiatives, and how to overcome roadblocks when handling the people side of migrations. Corey and David also expand on all the capabilities cloud migration unlocks, and David explains how that translates to a distributed product team approach.About DavidDavid is the CEO & Founder of Tidal. Tidal is empowering businesses to transform from traditional on-premises IT-run organizations to lean-agile-cloud powered machines.Links Referenced: Tidal.cloud: https://tidal.cloud Twitter: https://twitter.com/dcolebatch LinkedIn: https://www.linkedin.com/in/davidcolebatch/ TranscriptAnnouncer: Hello, and welcome to Screaming in the Cloud with your host, Chief Cloud Economist at The Duckbill Group, Corey Quinn. This weekly show features conversations with people doing interesting work in the world of cloud, thoughtful commentary on the state of the technical world, and ridiculous titles for which Corey refuses to apologize. This is Screaming in the Cloud.Corey: LANs of the late 90's and early 2000's were a magical place to learn about computers, hang out with your friends, and do cool stuff like share files, run websites & game servers, and occasionally bring the whole thing down with some ill-conceived software or network configuration. That's not how things are done anymore, but what if we could have a 90's style LAN experience along with the best parts of the 21st century internet? (Most of which are very hard to find these days.) Tailscale thinks we can, and I'm inclined to agree. With Tailscale I can use trusted identity providers like Google, or Okta, or GitHub to authenticate users, and automatically generate & rotate keys to authenticate devices I've added to my network. I can also share access to those devices with friends and teammates, or tag devices to give my team broader access. And that's the magic of it, your data is protected by the simple yet powerful social dynamics of small groups that you trust.Try now - it's free forever for personal use. I've been using it for almost two years personally, and am moderately annoyed that they haven't attempted to charge me for what's become an essential-to-my-workflow service.Corey: Have you listened to the new season of Traceroute yet? Traceroute is a tech podcast that peels back the layers of the stack to tell the real, human stories about how the inner workings of our digital world affect our lives in ways you may have never thought of before. Listen and follow Traceroute on your favorite platform, or learn more about Traceroute at origins.dev. My thanks to them for sponsoring this ridiculous podcast. Corey: Welcome to Screaming in the Cloud. I'm Corey Quinn. Every once in a while at The Duckbill Group, I like to branch out and try something a little bit different before getting smashed vocally, right back into the box I find myself in for a variety of excellent reasons. One of these areas has been for a while, the idea of working with migrations on getting folks into cloud. There's a lot of cost impact to it, but there's also a lot of things that I generally consider to be unpleasant nonsense with which to deal. My guest today sort of takes a different philosophy to this. David Colebatch is the CEO and founder of Tidal.cloud. David, thank you for joining me.David: Oh, thanks for having me, Corey.Corey: Now, cloud migrations tend to be something that is, I want to say contentious, and for good reason. You have all the cloud providers who are ranting that cloud is the way and the light, as if they've just found religion, and yeah, the fact that it basically turns into a money-printing machine for them has nothing to do with their newfound advocacy for this approach. Now, I do understand that we all have positions that we come from that shape our perspective. You do run and did found a cloud migration company. What's your take on it? Is this as big as the cloud providers say it is, is it overhyped, or is it underhyped?David: I think it's probably in the middle of this stage of the hype cycle. But the reason that that Tidal exists and why I founded it was that many customers were approaching cloud just for cloud's sake, you know, and they were looking at cloud as a place to park VMs. And our philosophy as software engineers at Tidal is that customers were missing out on all the new capabilities that cloud provided, you know, cloud is a new paradigm in compute. And so, our take on it is the customer should not look at cloud as a place to migrate to, but rather as a place to transform to and embrace all the new capabilities that are on offer.Corey: I've been saying for a while that if you sit there and run a total cost analysis for going down the path of a cloud migration, you will not save money in the short term, call it five years or whatnot. So, if you're migrating to the cloud specifically to save money, in the common case, it should be for a capability story, not because it's going to save you money off of what you're currently doing in the data center. Agree, disagree, or it's complicated?David: It's complicated, but you're right in one case: you need to work backwards from the outcomes, I think that much is pretty simple and clear, but many teams overlook that. And again, when you look at cloud for the sake of cloud, you generally do overlook that. But when we work with customers and they log into to our platform, what we find is that they're often articulating their intent as I want to improve business agility, I want to improve staff productivity, and it's less about just moving workloads to the cloud. Anyone can run a VM somewhere. And so, I think, when we work backwards from what the customer is trying to achieve and we look at TCO holistically, not just about how much a computer costs to run and operate in a colo facility, look at it holistically from a staff productivity perspective as well, then the business case for cloud becomes very profound.Corey: I've been saying for a while that I can make a good-faith Total Cost of Ownership analysis—or TCO analysis—in either direction, so tell me what outcome you want and I can come up with a very good-faith effort answer that gives you what you want. I don't think I've seen too many TCO analyses, especially around cloud migrations, that were not justification exercises. They were very rarely open questions. It was, we've decided what we want to do. Now, let's build a business case to do that thing. Agree, disagree?David: [laugh]. Agree. I've seen that. Yeah, we again, like to understand the true picture of total cost of ownership on-premises first, and many customers, depending on who you're engaging with, but on the IT side, might actually shield a few of those costs or they might just not know them. And I'm talking about things like in the facilities, insurance costs, utility bills, and things like that, that might not bubble up.We need to get all those cards on the table in order to conduct a full TCO analysis. And then in the cloud side, we need to look at multiple scenarios per workload. So, we want to understand that lift-and-shift base case that many people come from, but also that transformative migration case which says, I might be running in a server-ful architecture today on-premises, but based on the source code and database analysis that we've done, we can see an easy lift to think like Lambda and serverless frameworks on the cloud. And so, when you take that transformative approach, you may spend some time upfront doing that transformation, or if it's tight fit, it might be really easy; it might actually be faster than reverse-engineering firewall rules and doing a lift-and-shift. And in that case, you can save up to 97% in annual OPEX, which is a huge savings, of course.Corey: You said the magic words, lift-and-shift, which means all right, the gloves come off. Let's have this conversation.David: Oh yeah.Corey: I work on AWS bills for a living. Cloud cost and architecture are fundamentally the same thing, and when I start looking at a company's monthly bill, I can start to see the architectural patterns emerge with no further information than what's shown in the exploded bill view, at least at a high level. It starts to be indicative of different things. And you can generally tell, on some level, when companies have come from a data center environment or at least a data center mentality, in what they've built. And I've talked to a number of companies where they have effectively completely lifted their data center into the cloud and the only real change that they have gotten in terms of value for it has been that machines are going down a lot less because the hard drive failed and they were really bad at replacing hard drives.Now, for companies in that position who have that challenge, yeah, the value is there and it's apparent because I promise, whoever you are, the cloud providers are better at replacing failed hard drives than you are, full stop. And if that's the value proposition you want, great, but it also feels like that is just scratching the surface of what the benefit of cloud providers can be.David: Absolutely. I mean, we look at cloud as a way to unlock new ways of working and it's totally aligned with the new distributed product team approach that many enterprises are pursuing. You know, the rise of Agile and DevOps has sort of facilitated this movement away from single choke points of IT service delivery, like we used to with ITIL, into much more modern ways of working. And so, I imagine when you're looking at those cloud bills, you might see a whole host of workloads centered into one or two accounts, like they've just replicated a data center into one or two accounts and lifted-and-shifted a bunch of EC2 to it. And yeah, that is not the most ideal architectural pattern to follow in the cloud. If you're working backwards from, “I want to improve staff productivity; I want to improve business agility,” you need to do things like limit your blast radius and have a multi-account strategy that supports that.Corey: We've seen this as well and born-in-the-cloud companies, too, because for a long time, that was AWS's guidance of put everything in a single AWS account. The end. And then just, you know, get good with IAM issues. Like, “Well okay, I found that developer environments impacted production.” Then, “Sounds like a skill issue.”Great, but then you also have things that cannot be allocated, like service quotas. When you have something in development run amok and exhaust service quotas for number of EC2 get instance info requests, suddenly, load balancers don't anymore and auto-scaling is kind of aspirational when everything explodes on you. It's the right path, but very often, people got there through following the best advice that AWS offers. I am in the middle of a migration myself from the quote-unquote, “Legacy” AWS account, I built a bunch of stuff in 2016 into its own dedicated account and honestly, it's about as challenging as some data center moves that I've done historically.David: Oh, absolutely. I mean, the cobwebs build up over time and you have a lot of dependencies on services, you completely forget about.Corey: “How do I move this S3 bucket to another account?” “That's the neat part. You don't.”David: [laugh]. We shouldn't just limit that to AWS. I mean, the other cloud providers have similar issues to deal with through their older cloud adoption frameworks which are now playing out. And some of those guidance points were due to technology limitations in the underlying platform, too, and so you know, at the time, that was the best way to go to cloud. But as I think customers have demanded more agility and more control over their blast radiuses and enabling self-service teams, this has forced everyone to sort of come along and embrace this multi-account strategy. Where the challenge is, with a lot of our enterprise clients, and especially in the public—Corey: Embrace it or you'll be made to embrace it.David: Yeah [laugh]. We see with both our enterprise accounts that were early adopters, they certainly have that issue with too much concentration on one or two accounts, but public sector accounts as well, which we're seeing a lot of momentum in, they come from a place where they're heavily regulated and follow heavy architectural standards which dictate some of these things. And so, in order for those clients to be successful in the cloud, they have to have real leadership and real champions that are able to, sort of, forge through some of those issues and break outside of the mold in order to demonstrate success.Corey: On some level, when I see a lift that failed to shift, it's an intentional choice in some cases where the company has decided to improve their data center environment at the cost of their cloud environment. And it feels, on some level, like it's a transitional step, but then it's almost a question that I always have is, was this the grand plan? So, I guess my question for you is, when you see a company that has some workloads in a data center and some living in the cloud provider in what most people call hybrid, is that outcome intentional or is it accidental, where midway through, they realize that some workloads are super hard to migrate? They have a mainframe and there is no AWS/400 available for their use, so they're going to give up halfway, declare victory, and yep we're hybrid now. How did they get there?David: I think it's intentional, quite often that they see hybrid cloud as a stepping stone to going full cloud. And this just comes down to project scoping and governance, too. So, many leaders will draw a ring around the workloads that are easy to migrate and they'll claim success at the end of that and move on to another job quite often. But the visionary leaders will actually chart a path to course that has a hundred percent adoption, full data center closure, off the mainframe, off AS/400, you know, refactored usually, but they'll chart that course at a rate of change that the organization can accept. Because, you know, cloud being a new paradigm, cloud requiring new ways of working, they can't just ram that kind of change through in their enterprise in one or two years; they really need to make sure that it's being absorbed and adopted and embraced by the teams and not alienating the whole company as they go through. And so, I do see it as intentional, but that stepping stone that many companies take is also an okay thing in my mind.Corey: And to be clear, I should bound what I'm saying from the perspective that I'm talking about this from a platonic ideal perspective. I am not suggesting that, “Oh, this thing that you built at your company is crappy,” I mean, any more so than anything else is. I've never yet seen any infrastructure that the people running it would step back and say, “This is amazing and perfect.” Everyone thinks it's a burning dumpster fire of sadness and regret and I'm not entirely sure that they're wrong.I mean, designing an architecture—cloud or otherwise—on a whiteboard is relatively straightforward, for a junior employee, even. The problem is most people don't get to start from scratch and build that thing. There's existing stuff that needs to be migrated in and most of us don't get the luxury of taking two years of downtime for that service while we wind up rebuilding it from scratch. So, it's one of those how do you rebuild a car without taking it off the highway to do it type of questions.David: Well, you want to have a phased migration approach, quite often. Your business can't stop and start because you're doing a migration, so you want to build momentum with the early adopters that are easy to migrate and don't require big interruptions to business. And then for those mission-critical workloads that do need to migrate—and you mentioned mainframe and AS/400 before—they might be areas where you introduce, like, a strangler fig pattern, you know, draw a ring around it, start replicating some services into cloud, and then phase that migration over a year or two, depending on your timeline and scale. And so, we're very much pragmatic in this business that we want to make sure we're doing everything for the right reasons, for the business-led reasons, and fitting in migrations around business objectives and strategies is super critical to success.Corey: What I'm curious about is when we talk about migrations, in fact, when I invited you on the show, and it was like, well, Tidal migrations—one thing I love about calling it that for the domain, in some cases, as well as other things is, “Huh, says right in the tin what it is. Awesome.” But it's migrations, which I assumed to be, you know, from data centers into cloud. That's great. But then you've got the question of, is that what your work looks like? Is it migrations in the other direction? Is cloud repatriation a thing that people are doing, and no one bothered to actually ever bother to demonstrate that to me? Is cloud to cloud? What are you migrating from and to?David: Well, that's great. And we actually dropped migrations from the name.Corey: Oh, my apologies. Events, once again, outpace me.David: Tidal.cloud is our URL and essentially, Corey, the business of migration is something that's only becoming increasingly frequent. Customers are not just migrating from on-premises data centers to cloud, they're also migrating in between their cloud accounts like you are, but also from one cloud provider to another. And our business hypothesis here Tidal is that that innovation cycle is continuing to shrink, and so whereas when I was in the data center automation business, we used to have a 10 and 15-year investment cycle, now customers have embraced continuous delivery of their applications and so there's this huge shift of investment horizons, bringing it down to an almost an annual event for many of the applications that we touch.Corey: You are in fact correct. Tidal.cloud does have a banner at the top that says, “Tidal Migrations is now Tidal.” Yep, you're correct, not that I'm here to like incorrect you on the name of your own company, for God's sake. That's a new level of mansplaining I dare not delve into.But it does say, “Migration made modern,” right at the top, which is great because there's a sense that I've always had that lift-and-shift is poo-pooed as a bad approach to migrating, but I've done it other ways and it becomes disastrous. I've always liked the approach of take something in a data center, migrated into cloud, in the process, changing as few things as possible, and then just get it stable and working there, and step two becomes the transformation because if you try and transform while it moves, yeah, that gets you a little closer to outcome in theory, but when things don't work right—and their computers; let's not kid ourselves, nothing works right—it's a question now of was it my changes? Is it the cloud environment? Is there an unknown dependency that assumes things in the data center that are not true in cloud? It becomes very hard to track down the why of these things.David: There's no one-size-fits-all for migration. It's why we have the seven-hour assessment capabilities. You know, if one application, like you've just talked about, that one application might be better to lift and shift than modernize, there might be real business reasons for doing that. But what we've seen over the years is the customers generally have one migration budget. Now, IT gets one migration budget and they get to end a job in a lift-and-shift scenario and the business says, “Well, what changed? Nothing, my apps still run the same, I don't notice any new capabilities.” And IT then says, “Yeah, yeah. Now, we need the modernization budget to finish.” And they said, “No, no, no. We've just given you a bunch of money. You're not getting any more.”And so, that's what quite often the migrate as a lift-and-shift kind of stalls and you see an exodus of talent out of those organizations, people leave to go on to the next migration project elsewhere and that organization really didn't embrace any of the cloud-native changes that were required. We'd like to really say that—and you saw this on our header—that migrations made modern, we'd like to dispel the myth that you can either migrate or modernize. It's really not an either/or. There's a full spectrum of our methods, like replatform, and refactor, rehosting, in the middle there. And when we work backwards from customers, we want to understand their core objectives for going to cloud, their intent, their, “Why cloud?”We want to understand how it aligns on the cloud value framework, so business agility gains, staff productivity gains, total cost of ownership is important, of course. And then for each of their application workloads, choose the right 6R based on those business outcomes. And it can seem like a complicated or comprehensive problem, but if you automate it like we do, you can get very consistent results very quickly. And that's really the accelerant that we give customers to accelerate their migration to cloud.Corey: One thing that I've noticed—and maybe this makes me cynical—but when I see companies doing lift-and-shift, often they will neglect to do the shift portion of it. Because there's a compelling reason to do a migration to get out of a data center and into a cloud, and often that is a data center contract expiry coming up. But companies are very rarely going to invest the time, energy, and money—which all become the same thing, effectively, at company scale—in refactoring existing applications if they're not already broken.I see that all the time in my work, I don't make recommendations to folks very often have the form, “Oh, just migrate this entire application to serverless and you'll save 80% or more on it.” And it's, “That's great, but that's 18 months' worth of work and it doesn't actually get us closer to our business milestones, so yeah, we're not going to do that.” Cost directly is very rarely a compelling reason to make a migration, but when you're rebuilding something for business purposes, factoring cost concerns into it seems to be a much better way to gain adoption and traction of those ideals.David: Yeah, yeah. Counterpoint on that, when we look at a portfolio of applications, like, hundreds or thousands of applications in an enterprise and we do this type of analysis on them with the customers, what we've learned is that they may refactor and replatform ten, 20% of their workloads, they may rehost 40%, and they'll often turn off the rest, retire them, not migrate them. And many of our enterprise customers that we've spoken to have gone through rationalizations as they've gone to cloud and saved, you know, 59%, just turned off that 59% of an infrastructure, and the apps that they do end up refactoring and modernizing are the ones where either there's a very easy path for them, like, the code is super compatible and written in a way that's fitting with Lambda and so they've done that, or they've got, like you said, business needs coming up. So, the business is already investigating making some changes to the application, they already want to embrace CI/CD pipelines where they haven't today. And for those applications, what we see teams doing is actually building new in the cloud and then managing that as an application migration, like, cutting over that.But in the scheme of an entire portfolio of hundreds or thousands of applications that might be 5, 10, 20% of the portfolio. It won't be all of them. And that's what we say, there's a full spectrum of migration methods and we want to make sure we apply the right ones to each workload.Corey: Yeah, I want to be clear that there are different personas. I find that most of my customers tend to fall into two buckets. The first is that you have the born-in-the-cloud SaaS companies, and that's the world I come from, where you have basically one workload that's 80% of your application spend, your revenue, et cetera. Like, they are not a customer, but take Datadog as an example. Like, the Datadog monitoring application suite would be a good example of this, and then you have a bunch of longtail stuff.Conversely, you've got a large enterprise that might be spending $100 million or so every year, but their largest single application is a couple million bucks because it just has thousands upon thousands of them. And at that point, it becomes much more of a central IT planning problem. In one of those use cases, spending significant effort refactoring and rebuilding things, from an optimization perspective, can pay dividends. In other cases, it tends not to work in quite the same way, just because the economies of scale aren't there. Do you find that most of your customers fall into one of those two buckets? Do you take a different view of the world? How do you see the market?David: Same view, we do. Enterprise customers are generally the areas that we find the most fit with, the ISVs, you know, that have one or two primary applications. Born in the cloud, they don't need to do portfolio assessments. And with the enterprise customers, the central IT bit used to be a blocker and impediment for cloud. We're increasingly seeing more interest from central IT who is trying to lead their organization to cloud, which is great, that's a great sign.But in the past, it had been more of a business-led conversation where one business unit within an enterprise wants to branch away from central IT, and so they take it upon themselves to do an application assessment, they take it upon themselves to get their own cloud accounts, you know, a shadow IT move, in a way. And that had a lot of success because the business would always tie it back to business outcomes that they were trying to achieve. Now, into IT, doing mass migration, mass portfolio assessment, this does require them to engage deeply with the business areas and sometimes we're seeing that happening for the very first time. There's no longer IT at the end of a chain, but rather it's a joint partnership as they go to cloud, which is really cool to see.Corey: When I go to Tidal.cloud, you have a gif—yes, that's how it's pronounced, I'm not going to take debates on that matter—but you have a gif at the top of your site a showing a command line tool that runs an analyze command on an application. What are you looking at to establish an application or workload's suitability for migration? Because I have opinions on this, but you have, you know, a business around this and I'm not going to assume that my strongly-held opinions informed by several weeks of work are going to trump, you know, the thing that your entire company is built around.David: Thanks, Corey. Yeah, you're looking at our command-line utilities there. It's an accompanying part of our product suite. We have a web application and the command-line utilities are what customers use behind their firewall to analyze their applications. The data points that we look at are infrastructure, as you can imagine, you might plug into VMware and discover VMs that are running, we'll look for non-x86 workloads on the network.So, infrastructure is sort of bread and butter; everyone does that. Where Tidal differentiates is going up the stack, analyzing source code, analyzing database technologies, and looking at the schema usage within your on-premises database, for example, which features and functionality are using, and then how that fits to more cloud-native database offerings. And then we'll look at the technology age as well. And when you combine all of those technology factors together, we sort of form a view of what the migration difficulty to cloud will be on various migration outcomes, be it rehost, replatform, or refactor.The other thing that we add there is on the business side and the business intent. So, we want to understand from leadership what their intent is with cloud, and there's some levers they pull in the Tidal platform there. But then we also want to understand from each application owner how they think about their applications, what the value of those applications are to them and what their forward-looking plans are. We capture all these things in our tool, we then run it through our recommendation engine, and that's how we come up with a bespoke migration plan per client.Corey: One of the challenges I have in the cost arena around a lot of these tools that oh, we're going to look at your various infrastructure-as-code situation and see what that's going to cost you for a given change. It's like, sure, that that's not hard from a baseline of I want to spin up ten more EC2 instances. Yes, that is the tricky part of cloud economics known as basic arithmetic. The problem where I see is that okay, and then they're going to run Kubernetes, which has no sense of zone affinity, so it's going to wind up putting nondeterministic amounts of traffic across a AZ boundary and that's going to spike data transfer in some use cases, but none of these tools have any conception as to what those workloads look like. Now, that's a purely cost perspective, but that does have architectural approaches. Do you factor things like that in when you move up the stack?David: Absolutely. And really understanding on a Tidal inventory basis, understanding what the intent is of each of those workloads really does help you, from a cloud economics basics, to work out how much is reasonable in terms of cloud costs. So, for example, in Tidal, if you're doing app assessment, you're capturing any revenue to business that it generates, any staff productivity that it creates. And so, you've got the income side of that application workload. When you map that to on-premises costs and then later to cloud costs, your FinOps job becomes a lot easier because now you have the business context of those workloads too.Corey: So, one of the things that I have found is that you can judge the actual success of a project by how many people who work at the company claimed credit for it on LinkedIn, whereas conversely, when things don't work out super well, it's sort of a crickets moment. I'm curious as to your perspective on whether there is such a thing as a migration failure, or is it simply a, “Oh, we're going to iterate on this in a new direction. We've replaced a failing part, which turned out, from our perspective, to be our CIO, but we have a new one who's going to move us into cloud in the proper time and space.” We go through more of those things than some people do underwear. My God. But is there such a thing as a failed cloud migration?David: There absolutely is. And I get your point that success has many fathers. You know, when clients have brought us in for that success party at the end, you don't recognize everybody there. But you know, failure can be, you know, you've missed on time, scope, or budget, and by those measures, I think 76% of IT projects were failing in 2018, when we ran those numbers.So absolutely, by those metrics, there are failed cloud migrations. What tends to happen is people claim success on the workloads that did migrate. They may then kick it out into a new project scope, the organizational change bit. So, we've had many customers who viewed the cloud migration as a lift-and-shift exercise and failed to execute on the organizational change and then months later realized, oh, that is important in order for my day two operations to really hum, and so then have embarked on that under a separate initiative. So, there's certainly a lot of rescoping that goes on with these things.And what we like to make sure we're teaching people—and we do this for free—is those lessons learned and pitfalls with cloud early on because we don't want to see all those headlines of failed projects under that; we want to make sure that customers are armed with here are the things you should consider to execute on as you go to cloud.Corey: Do you ever run an analysis on a workload when a customer is asking, “So, how should we go about migrating this?” And your answer is, “You should absolutely not?”David: Well, all applications can go to cloud, it's just a matter of how much elbow grease you want to put into it. And so, the absolutely not call comes from when that app doesn't provide any utility to the business or maybe it has a useful life of six more months and the data center is going to be alive for seven. So, that's when those types of judgment calls come in. Other times we've seen, you know, there's already a replacement initiative underway by the business. IT wasn't aware of it, but through our process and methodology, they engaged with the business for the first time and learned about it. And so, that helps them to avoid needing to migrate workloads because the business is already moving to Salesforce, for example.Corey: I imagine you're also relatively used to the sinking realization that customers often have when they're used to data center thinking and you ask them a question, like, “How many gigabytes a month does your application server send back and forth to your database server?” And their response, very reasonably, is, “Why on earth would I know the answer to that quest—oh, God. You mean, that's how it bills?” It's the sense of everything is different in cloud, sometimes, subtly, sometimes massively. But it's a different way of thinking.So, I guess my last real big question for you on this is, moving technology is relatively straightforward but migrating people is very challenging. How do you find that the people and the processes that have grown up in data center environments with people whose identities are inextricably linked the technology they work on, being faced with the idea of it is now time to pick up and move these things into an environment where things that were incredibly valuable guardrails in a data center environment no longer serve you well?David: Yeah. The people side of cloud migration is the more challenging part. It's actually one of the reasons we introduced a service offering around people change management. The general strategy is sort of the Kotter change process of creating that guiding coalition, the people who want to do something different, get them outside of IT, reporting out to the executives directly, so they're unencumbered by the traditional processes. And once they start to demonstrate some success of a new way of working, a new paradigm, you kind of sell that back into the organization in order to drive that change.It's getting a lot easier to position that organizational change aspects with customers. There's enough horror stories out there of people that did not take that approach. And quite rightly. I mean, it's tough to imagine, as a customer, like, if I'm applying my legacy processes to cloud migration, why would I expect to get anything but a legacy result? You know, and most of the customers that we talk to that are going to cloud want a transformational outcome, they want more business agility and greater staff productivity, and so they need to recognize that that doesn't come without change to people and change the organization. It doesn't mean you have to change the people out individually, but skilling the way we work, those types of things, are really important to invest in and I'd say even more so than the technology aspects of any cloud migration.Corey: David, I really want to thank you for taking the time to talk to me about something that is, I'd say near and dear to my heart, except I'm trying desperately not to deal with it more than I absolutely have to. If people want to learn more, where's the best place for them to find you?David: Sure. I mean, tidalcloud.com is our website. I'm also on Twitter @dcolebatch. I like to tweet there a little bit, increasingly these days. I'm not on Bluesky yet, though, so I won't see you there. And also on LinkedIn, of course.Corey: And we will, of course, put links to that in the [show notes 00:29:57]. Thank you so much for your time. I really appreciate it.David: Thanks, Corey. Great to be here.Corey: David Colebatch, CEO and founder of Tidal.cloud. I'm Cloud Economist Corey Quinn and this is Screaming in the Cloud. If you've enjoyed this podcast, please leave a five-star review on your podcast platform of choice, whereas if you've hated this podcast, please leave a five-star review on your podcast platform of choice, along with an angry comment that you will then struggle to migrate to a different podcast platform of your choice.Corey: If your AWS bill keeps rising and your blood pressure is doing the same, then you need The Duckbill Group. We help companies fix their AWS bill by making it smaller and less horrifying. The Duckbill Group works for you, not AWS. We tailor recommendations to your business and we get to the point. Visit duckbillgroup.com to get started.
Morgan Smith: You're listening to the Raise Your Hand Texas IntersectEd podcast where the stories of public education policy and practice meet. I'm your host, Morgan Smith. And today we're talking about the amount of money Texas pays to educate a student in public schools. This topic is notoriously complicated and can be very dense, but I've tracked down some very knowledgeable people to help guide us through it. We have three guests with us today, Laura Yeager, a public school parent and founder of Just Fund It TX, a nonpartisan group of parents, students, and community members, Bob Popinski, Raise Your Hand's, resident school finance and policy expert, and David Pate, the assistant superintendent of finance for Richardson Independent School District, which operates 55 campuses and serves more than 39,000 students in the suburban Dallas area.So right now, we are in the middle of the legislative session we've been hearing since last summer about this record-breaking budget surplus, lawmakers have to work with a historic $33 billion surplus. Plus there's tens of billions more in estimated growth in revenue over the next two years. Meanwhile, depending on what measure you use, Texas ranks at least in the bottom 10 states in public school funding. So the money is there. It's clear Texas is behind where we should be. So why can't we just give the schools what they need? Well, as I said, this is complicated. Here we go.Bob, so today we're going to be focusing on what's known as the basic allotment or the per-student sum the state uses as the foundational building block to determine how much money it will pay to educate a student. Could you start us off here by explaining how the basic allotment works in conjunction with the rest of school funding.Bob Popinski: Yeah, absolutely. The basic allotment is actually the building block of how we fund our students and our schools, and pay for our teachers and the operations of everything that goes on within a campus and a school district.So back in 2019, when they went through a lot of school funding changes, they set the basic allotment at $6,160. That's the basic building block per student. Now, if you have special characteristics, say you're a special education needs student or you qualify for free reduced lunch or you're in the bilingual program or you're in the gifted and talented program, you get additional dollars attached to that way. And so as you use that basic building block, you create what's known as an entitlement and that entitlement varies from school district to school district. But on average, it's about $10,000 per student. Now, it could be a couple $1,000 more in a school district or a couple $1,000 less in a school district. But on average it's $10,000. So that's kind of where we start. That $6,106 has kind of been set in stone for school districts for the last three years. And so there's really only a few ways to increase revenue for your students. You could either go out for a tax rate election or you could get additional revenue through enrollment increases or attendance. So we're really dependent on the state to do one thing and that's increase the basic allotment. So it flows through the rest of the formulas so that our school districts can actually give teachers pay raises and staff pay raises and operate the schools with our 5.4 million kids and over 375,000 teachers.Morgan: So David, what does the basic allotment mean to you in practical terms as you're working on a school budget? And why don't you also give our listeners a sense for where budget matters stand in Richardson.David Pate: On where budget matters stand for Richardson, our demographers are predicting that we're going to lose about 8000 students over the next 10 years. And we adopted a $26 million deficit for fiscal year, 22-23. And, for us, right now we're trying to figure out how we're going to provide raises to teachers, how we're going to provide for our cost increases. So the basic allotment, it is the major driver. When we're looking at 16% or 17% cost increases, we're having difficulty staffing. We're competing with quite a few districts here in the North Texas area for staff trying to raise our teachers starting salary.For instance, in our case, which we are different from all the other districts on this measure here in Dallas County, about 40% of our students are not economically disadvantaged. And then we've got another 20% of our students are not only economically disadvantaged, but they're living in the highest level of poverty according to the state measures. And so trying to meet the needs of those two groups in a situation where costs are increasing in revenue is declining is very challenging.Morgan: So you use the basic allotment, you pay for teacher salaries, you pay for support staff like classroom aides, cafeteria workers, bus drivers, I mean, the basic allotment really is the biggest part of your budget.David: Yes, it funds the basic needs of the district.Morgan: Laura, I want to bring you in here because you experience the hardships that districts go through when they have budget shortfalls from the parent side. Can you tell us what happened in 2018 when your child was a junior in high school in the Austin Independent School District?Laura: Sure thing. Thank you, Morgan. Yes, my three kids went through Austin ISD and my youngest was a junior at McCallum High School here in Austin. And she came home from school and said, “Mom, kids are crying in the halls and people are up in arms. We're worried they're going to close our Fine Arts Academy,” which is this beloved institution, one of many choices within Austin ISD. And a few of us got together to try to understand what was going on and it ended up being that Austin was facing a $30 million budget deficit and looking at things to cut. And that's when several of us decided to get together and try to help parents and community members understand how school funding works because that $30 million budget deficit was something Austin was facing. But really, it was a result of how our state funds our public schools. And so that's when Just Fund It started. And it was interesting because parents don't always think about funding. There are things that kids and parents think about every day. But funding was really hitting us at home because it was getting to the point where it was threatening just basic programs that we all rely on and parents pay, they see these growing property tax bills and think when they are paying them to the school district that they are either going to their district or a different school district through our recapture Robin Hood, what you want to call it, what people didn't understand is we're paying billions of dollars in that are then being just not given to any school district, they're going to the bottom line or to the surplus in this case. And I believe, Bob may be able to tell you better, but I think it's $8.2 billion of local school property taxes that have been paid in by parents that are going to the surplus. So we thought there was some educating that had to be done to help parents understand, to learn how to advocate, and also to educate legislators on how far behind we really are and that parents and students care that their schools are funded.Morgan: Well, so that brings us back around to the legislature. Bob, Governor Greg Abbott has been very vocal on education issues this session and one thing I've been hearing a lot from him and some other lawmakers as they talk about public schools is this idea that they have more money than they've ever had before. Is that true? And how do we square that with what we're hearing from parents and educators around the state?Bob: I think if you look at what your own household budget has done over the last three years, you can get a good glimpse of what's happening to a school district in terms of just purchasing power being the same as it was in 2019.Since 2019, inflation has gone up double digits, and the Comptroller has estimated inflation has gone up 12.5%. In some cases, it's even more than that. If you look at individual things that you're spending your money on. For some districts, fuel has gone up 40% if not more, insurance for their building and their buses have gone up double digits, food service, 25% in some instances. Even health insurance has gone up drastically and construction has gone up 50%. And so school districts are in a pinch just to keep up with inflation. And so if you look at what's needed to kind of keep up with that basic allotment of $6,160 for the same purchasing power they had back in 2019, it needs to be $1,000 higher.And so that's what we're aiming for, is to make sure that the basic allotment actually keeps pace with inflation and so with that, we're recommending that they invest more into public education. And, Laura is right. It's kind of the basics of school finance – if you don't want to kind of get into the weeds, is that as local property values increase, that means local taxpayers are paying more for the overall school entitlement and the state has to pay less. So the state, because the local value increases, saved roughly $8.2 billion last biennium for last state's budget and we want them to reinvest that back into our 5.4 million students.Morgan: So let's talk about inflation for a second. We've mentioned the last time the state increased the basic allotment in 2019. That's four years ago now. And then depending on what measure you use, there's been between 12% to 16% inflation. David, can you give us some specific examples of how that's affected your budgeting process in Richardson?David: Yes, our utility costs have been increasing substantially and Bob mentioned property insurance. That's one of the things that for us that we just recently did property insurance and it increased $900,000. So that increase of $900,000 is about 13 teachers for us.Morgan: Wow. So Bob, if I'm understanding correctly, there's not a mechanism that adjusts state funding for schools based on inflation. School districts have to come back every so often and ask for more money. And it kind of sounds like you're just asking to be funded at the same levels as you were in 2019, accounting for inflation.Bob: At a minimum, absolutely.Morgan: Yeah, at a minimum.Bob: I think because we're $1,000 below where we needed to be from 2019 because of inflation, that doesn't even consider that Texas is in the bottom 10. We're $4,000 behind the national average. And so what we're recommending is not only to catch up for where we need to be, but actually create an inflation adjustment so that school district don't have to come back every other year during a legislative session and say, “Hey, look, we, we need more funding just to keep pace with what's going on out in the world so that we can cover all of our expenses, so that we can give teachers a pay raise.”If you look at the Charles Butt Foundation poll from earlier in the year, 77% of our teachers are considering leaving the profession, and pay is a big important factor in that. We're $7,500 below the national average and inflation is catching up with our teachers' pockets books as well. Living expenses, being able to afford a home in some of these cities across the state. It's very difficult to keep teachers in the profession and school districts need to be able to compete.Morgan: Laura, I want to come back to you because through your work with Just Fund It and other grassroots education efforts, you have so much experience helping parents and community members develop political literacy around these issues. Can you tell us a little bit about what is at stake here if the legislature doesn't provide an increase to the basic allotment this session?Laura: I mean, it's hard to overstate it. There's just so much at stake. I mean the ability of our public schools to educate 5.4 million kids. We need more funding to keep up with kids around the country. We did increase funding in 2019, but everyone else did too and the national averages moved up and we are really no better than we were then and worse off because of the inflation situation that you just heard about. I mean, our schools need funds to address student needs so they can thrive.And as we mentioned before, funding is a little tricky because it's not felt directly, people feel it and then they blame the district and, there may be issues within a district but really it's so confusing. Administrators work so hard to shield students and teachers as much as possible and do whatever they can with the limited resources they have. And we are ranked better than we are funded in terms of actual output, but it just shows that we have been really squeezing our educators to do what they can with so little resources and it's unsustainable.It's being felt more and more by teachers and students and families from teacher burnout to overcrowded classrooms. We need counselors and mental health resources and more. And so all of this really comes back to increasing the basic allotment to make sure every single kid in the state of Texas has what they need to thrive.I'll mention that well-regarded economist, Dr. Ray Perryman, updated a study on the return on investment of every single dollar in public ed. And it's, it's almost unbelievable.It's the single best investment the state could make. And what they found was every dollar the state invests in Public Ed yields a lifetime economic benefit of almost $57. which includes benefits to the private sector, personal income. I mean, it's literally the highest return on investment of any public or private sector investment. And then just lastly I'll say, when we started Just Fund It we made a very clear point of doing something different.That we were not going to let the legislature do what they're so good at doing, which is dividing to conquer, dividing rich against poor, large, against small urban, against rural.And that we fight for every single kid in the state of Texas to be better than bottom-of-the-barrel funding. The way you do that is by increasing the basic allotment. Morgan: Please, David, why don't you give us a sense for what's at stake in Richardson?David: Well, so as we've been going through our budget meetings with the board, really since January, we've been presenting options for the opportunities we have to increase revenue here in the district. And there's really three options for us. We're one of three districts in Dallas County that still offers a local optional homestead exemption. That is an option our board could exercise and eliminate that. That would give us one-time funding of about $7.8 million.We can open our enrollment to students that are not residents of the district and that's going to generate somewhere between about $7,000 to $10,000 per student depending on the specific educational attributes of those students, whether they're, in generating bilingual funding or CTE funding, etc. And, that really just depends on how many students want to choose to come here who don't live here. We could have called a V A T R E. Our voters approved a tax ratification election back in November of 2018, which was then compressed.So we've got about a little over three cents. We could go back to the voters, which would generate about $3 million net to recapture. And then it's really a matter of, what can we do to reduce expenditures? When we start backing out the things that we have to do. So, I've got to pay the utility bill and I've gotta have property insurance. I've got to pay the Dallas Central Appraisal District. When you start backing out those kinds of activities, you're left really with people. And so, we had a staffing study performed and we're presenting that information to the board and it will be tough making any of these decisions.Everybody is attached to their individual campus and the staff in those campuses, those are their friends and neighbors. And so any time you start talking about making cuts in the school district, it's difficult.Morgan: Yeah, I mean, it sounds like you're doing what good school administrators do and is trying to kind of consider all options before you start kind of hitting things that are really going to affect the people in your district community. So we set up top that there's plenty of money to go around this session. What Bob is the challenge to getting this accomplished? Bob: Texas has a pretty substantial two-year budget. A lot of moving pieces. There's other programs other than public education, but public education is one of the largest expenses our state has. It's a $70 billion per year system when you take into account state and local revenue. Right now we have a house budget that's moving through the process. They're going to hear that pretty soon. We have a Senate budget that's moving through the process and they both have $5 billion in there for public education.Now, you remember what I said, we need at least $1,000 increase in the basic allotment just to keep pace with inflation. The price tag on $1,000 basic allotment increase is about $14 billion for the state budget and both sides right now are putting in $5 billion and it's not just for the basic allotment. There's a lot of other programs that they're funding on top of that. So what actually flows to school districts and to our students is going to be a lot less than that for operating expenses. And so we need to make sure that our members know as they continue these budget discussions that we're woefully short of where we need to be. And, so as they start moving through the process with less than 60 days left here, I think the more school districts and teachers and the general public and community leaders speak up that schools actually need more funding just to keep pace with inflation, is very important. We've got a long way to go in the session. And so I think it's time that our members hear from our communities.Morgan: Well, thank you. We're going to have to end here today.Thanks to Laura Yeager, Bob Popinski, and David Pate for being here and to you our audience for listening. And I also want to let you know that to stay informed on school finance and other critical education issuesToday's episode was written and narrated by me, Morgan Smith. Our Sound Engineer is Brian Diggs and Executive Producer is Anne Lasseigne Tiedt.As the 88th Session progresses, you can sign up online for Raise Your Hand Texas' Across the Lawn weekly newsletter and you can find that at www.raiseyourhandtexas.org/get-involved.
Did you know we have rainforest right here in the UK? Visit magical Bovey Valley Woods in Devon with us as we walk alongside a babbling brook and over a Tolkien-esque stone bridge among trees dripping with lichens and mosses and learn all about it. Site manager David Rickwood describes the features of UK rainforest, some of the fantastic species that live here and why this habitat is so important as he takes us on a lichen hunt, shows us an otter holt and much more. Find out what a rapid rainforest assessment involves with Tom, and meet Eleanor who is working hard to create a powerful alliance to protect rainforest in the South West. Don't forget to rate us and subscribe! Learn more about the Woodland Trust at woodlandtrust.org.uk Transcript You are listening to Woodland Walks, a podcast for the Woodland Trust presented by Adam Shaw. We protect and plant trees, for people, for wildlife. Adam: When most people think about rainforests, they're imagining the tropical, densely overgrown jungles of, well, mainly of our imagination, because so few of us have actually been there. But what they don't think about is the rainforests of places as close to home as a Devonshire cream tea. And that's what's so shocking because Devon and some other parts of the UK have in fact some of the most important temperate rainforests the world knows. And it's shocking not only because it's a bit of a surprise that we have these rainforests, but we've not really been taking much care of them. The ecologist Dominic DellaSala said that today's European rainforests are mere fragments, a reminder of a bygone era when rainforests flourished and they're now barely hanging on as contemporary rainforest relics. Well, I'm off to see, well, I hate to describe it as one of those relics, but one of those jewels that remains with us in Devon to see what a British rainforest looks like, why it's important, and what's fun about it. Well, I've come to Bovey Valley Woods, which, unsurprisingly, I suppose, lies in the valley of the River Bovey on the South East side of Dartmoor National Park, and rather close to Newton Abbot. You might have heard of that. There are lots of trees and there are lots of wildlife here, brimming with spring migrant birds, so we might come across the Dartford warbler, the brightly coloured kingfisher or the pied flycatcher, which arrives from Africa each spring to breed. We might come across some rather tiny hazel dormice, which I understand are here as well. I'm not here at night, but apparently if you are, there are lots of bats which hunt on the wing. And of course there's the Dartmoor ponies, which graze in the wildflower meadows around here, but we are planning on heading into the wood itself. David: My name is David Rickwood and I work for the Woodland Trust and I'm a site manager here at Bovey Valley Woods. Adam: Well, just describe to me sort of what we're looking out at now. We can, I can hear a stream somewhere nearby. So there's clearly that down in the valley, but describe what, what's going on around us. David: Yeah. So we're on the eastern edge of Dartmoor. There are 9 river systems that rise on, on Dartmoor. They carve these kind of deep valley systems off the edge of the moor. So a lot of people, when they imagine Dartmoor, they're thinking about the big open expanses of the moorland, but actually all of these river valley systems are where the concentrations of ancient woodland and temperate rainforests sit. You know, they have this kind of ambient temperature all year round, so we don't have these extremes of heat and cold. And they provide those kind of perfect conditions really. Adam: Yeah. I mean, when one thinks of Dartmoor, it is those, those bare sort of rather dramatic landscapes. But you were saying hidden in the creases around those are these, these rich temperate rainforest environments. David: Absolutely. You see so although people think of the open moorland of Dartmoor and the high moor, actually, a lot of that biodiversity and a lot of the diversity is around the edges in these wooded valleys. So woodland bird assemblages is particularly important in this part of the world, so species like pied flycatcher, wood warbler, invertebrates like blue ground beetle, and, of course, all of these lichens, mosses and liverworts that are, you know, in these sort of niches in these temperate rainforests. Adam: Right, so we've jumped into this discussion about rainforests. And we're in a temperate rainforest, but I'm still not sure what a temperate rainforest is, because it conjures up this image, sort of, of jungle, doesn't it, of hacking back dense forestry, of the Amazon, of sort of Victorian explorers, that's not the environment we're in, which leads, I think, me to a confusion, I think lots of people are confused about what it is we're talking about. How would you define a a rainforest? David: OK, so in visual terms, a lot of the trees around here have what they call epiphytic plants. There's things growing on the trees, there's things growing on the rocks. There's things growing on other plants and you get this lush abundance of particularly mosses. Adam: Yeah. So sorry, the epiphytic, it means it's living on it, but it's not actually taking its energy from that. It's quite a beneficial relationship? David: Yeah. So if you were to go and look at a tree branch in, say, central London, you're not going to see it carpeted in mosses and lichen. So here the air quality is very high and so you get this abundance of of plants growing on other plants. And because it's so wet, moist and damp throughout the year, those plants can survive actually quite high in the canopy. Adam: So the sorts of things that you're seeing in a rainforest are lichens. The trees aren't particularly different from trees you'd see elsewhere are they? The oaks and all of that. So it is, lichens are a big identifier and the amount of rain presumably? David: Absolutely yeah. So we're we're talking about sort of 200 days a year where rainfall is occurring in some form that might actually be cloud, just wet mist, not necessarily pouring down with rain. And we're also talking about rainfall in excess of say 12 to 1400 millimetres a year. Adam: And we're very lucky that we're in a rainforest and it's not raining. Well, it's lucky for me. So now this is a tell me about this piece of woodland itself. David: And we're right on the edge of the moorland. And so the woodland here is gradually creeping out onto the edge of the moor, and it's spread out from these kind of core areas in the valley. Now, that's brilliant in terms of renaturalising the landscape. But actually it can be quite problematic for some of the species in temperate rainforests, so in particular on this site here we've got lots of very old veteran trees and ancient trees that grew in a landscape that was a bit more open, had a lot more light. And it's those trees that often have some of these really key species assemblages on base rich bark or what they call dry bark communities. So it's all quite niche in terms of the conversation. But those trees are really the stars in this valley and so whilst we're kind of managing the woodland here, we need to give, you know, conscious effort to kind of manage around some of those key areas. Adam: So look, let's go off into the woodland, but just to tell tell me a bit about what we're gonna see the plan for the day. David: OK. So the plan for the day is we're going to just walk down this track here and we're going to drop down to a place called Hisley Bridge and that crosses the River Bovey. And that in itself is a very enchanting and beautiful place, and I think probably some of this mystery around temperate rainforest will start to fall into place when you see that. Adam: Well I tell you what, let's go, let's go off before we, before we go off on that adventure just, just pause for a moment to listen to that babbling brook. So we're talking about this rainforest in recovery or trying to build a rainforest here almost. How delicate is this environment? David: It's interesting, I think probably in the past five or ten years, I think we've become increasingly aware, particularly through working with partners like Plantlife, actually how vulnerable these sites are and, and how the changing climate is going to be a real threat to sites like this. And whilst we're doing our best in terms of managing the site and trying to restore it and trying to create the right kind of conditions, there are some aspects about climate that we cannot manage. And so resilience is really this much sought after objective and I think on a site like this, it provides an interesting template because over the past 100 years this site has kind of spread out into the wider landscape. That expansion has created an element of resilience for us. Adam: I'm not sure I fully understand, you're saying there is some resilience because of the expansion of it, but well, how does that create resilience? David: So things like lichens, so so this, this site in particular is really important for lichens and Hisley Wood on the other side of the river is probably one of a handful of sites in England. As this woodland has expanded, it's allowed some of those species to actually move into the wider landscape. So instead of there maybe being 3 or 4 oak trees with a particular species here, there might be 100 oak trees with those species. Adam: So the fact you've got more of them makes the whole thing more resilient, if something happens to one, it's not a disaster. Understood. So given, my feet are very wet, I I need new boots. Just just tell you if I'm grimacing, it's nothing to do with you. Oh, I was going to talk to you, but look at this. That is a bridge straight out of The Hobbit! Just, this is extraordinary! Tell me about that. David: So this here is a historic bridge that would have provided the access to Boveycombe farmstead. So Boveycombe farmstead probably is mediaeval in origin, but the the structure that there's now is abandoned. Adam: This is I mean just describe it, it's it's made of rocks and it looks so haphazardly done. It's straight out of, you do it in a film, isn't it? It's very high up, very slumped down. It is absolutely beautiful. I'm going to insist I take a photo of you on it. And and it's a lovely flowing river right underneath it as well. David: Yeah so this is the River Bovey and about 200, 300 hundred metres upstream there's a confluence of the River Bovey and the Becka Brook. And these are sort of torrent rivers so they go up and down really quickly with the rainfall. So this area here and the bridge, in fact, at times becomes an island because the river comes up so high. Adam: What where we are now, underwater? David: Yeah so if you look at all of these stones, they're all water washed and you can see the sand from the riverbed that's been washed out here. Adam: Oh, I can. Yeah, I can over there. It's amazing. David: So coming here, you know, particularly in the autumn last year, November, December or the late autumn when we had a lot of rain yeah this was kind of underwater at this point. But these rivers are really important, or really important for things like salmon, spawning salmon, sea trout, yeah. So these, it's these kind of rivers that really would have had an abundance of salmon and sea trout in the past. Adam: Do you still get some? David: Yeah, we still get some now. And interestingly, even though it was super dry last July, the salmon numbers were the best they've been for probably 5 or 10 years. Adam: I have many things to ask you, but we are gonna have to take a pause here as I take a photo. OK. Yeah. So the salmon, what other sort of wildlife have we got here? David: So I don't if you can just look across the river there, but there's an oak tree and underneath the oak tree, the root plate has been hollowed out by the river. Adam: Yeah, yeah, yeah. I can see that. Yeah, it almost looks like there's, it's nothing supporting that tree. David: Well, interestingly it does flex up and down, but that actually is an otter holt. So the otters move through this area on a regular basis and we've got a great little bit of footage actually of a mother with two kits in there and they're in there for a brief while. But these rivers are really good and things like otters are a really good sign that the fish population's good. So there'll be dippers on the river here, kingfishers, grey wagtails... Adam: I, I got distracted by the beautiful bridge, but it's all, what I wanted to ask you about, this is such a sort of, environment on the edge that you're trying to protect, but at the same time it's Woodland Trust policy to encourage engagement, people to visit. In this particular area and this particular circumstance, is that a very difficult decision because actually you're going, hold on a second, you do want people to engage. On the other hand, this is an environment which really needs to be left alone for a while. Do you feel that tension at all? David: Yeah, that's, that is an ongoing issue and so, for example here, one of the things we try to discourage, and we do that by just felling trees or putting in what you might describe as natural barriers, is we try and discourage some access to the river in certain areas. For example, like dogs, so dogs and the otter holt etc is not a great mix. And then you've got species like dipper that are nesting in these tiny little, really, balls of fern and grass along the edges here. And it's very, very easy for both a person, let alone a dog, to just flip those chicks out of that nest. Adam: A black Labrador just dipping into the river there. I mean there, there's this sense of, you know, sort of called honey pot, sort of attractions and that was an issue I think, particularly in Dartmoor, over lockdown, wasn't it, where it's, sort of places became overwhelmed and I suppose again there's a tension, isn't there on the one hand, they can get overwhelmed. On the other hand, if you manage that well it drags people to the big, famous place and leaves the quieter places on their own. So it's a 2 sided coin. Do you think that's a, a good argument or not? You're smiling at me, almost going, no, no, it's, talking rubbish, no. David: No, on the contrary, I think we have got to learn to manage it. And I think there's a number of aspects to that. I think we can try and draw people away from areas that we consider to be more sensitive. I think we need to engage people and try and broaden everybody's understanding of what's important about these places because the more people that appreciate them, love them and understand some of the nuance, and it is nuance, the more likely you are to be able to protect these places in the future and you know, for them to be sustained. Adam: We've got a lot of travelling to do and not much time, so let's cross the bridge and you're taking me to some, some lichen. Oh, God, I'm just tripping over there, OK, right. We're we're we're going lichen hunting. David: We are going to go lichen hunting. Although this isn't actually the best example, but there you go. Can you see these? There are these little teeth. Adam: Little teeth underneath the lichen, and so that's why that's called dog lichen. David: Yeah, and that's, it's part of a group of lichens that that behave in that way and they use those to actually attach itself to the moss or the rock. Adam: That's not the nicest lichen I've seen, it looks very crumbly to me. David: It looks a bit dry Adam: It does look a bit dry, is that how it's meant to look? David: Well you know, obviously we've had a very long dry spell. Adam: Now I've just picked up a stick and this is covered in the lichen I love, but what is that? Do you know what, do you know what that's called? Now you see, I'm sorry I've embarrassed you. David: No, no. Adam: No don't worry about it, you don't have to know every bit of lichen. David: No, it's palma... something or other, parmelia that's it. Adam: It's parmelia, parmelia you see the noises are from his lichen advisors. Parmelia, I think it's so pretty. It's nicer than jewellery or something, you know, I think that's very nice. So OK. So we're heading down the other bank of the river and where are you taking me Dave? David: Well, we're going to head down to a meadow that was cleared of conifer about 20 years ago, and so that's where part of this site has been restored. But on the way, we're going to have a look at a big ash tree and an oak tree that overhangs the river and that has a particular type of lichen called the lungwort growing on it. Adam: Horrible name the lungwort. And was that, tell me if this is true, that, was it the Victorians who gave them these names, oh no actually it would have been before that, wouldn't it? Because it looked like an organ and they thought it, therefore, it was medicinal. Oh, well, it looks like a lung, therefore, if you've got a lung disease, you should eat that. David: Yeah so that's exactly what, what it was. So this one looks like the inside of the lung, so it looks almost like the alveoli of the inside and people thought it was some kind of medicinal kind of treatment for any kind of ailment. Adam: We should tell people don't eat this stuff. David: No, don't eat it and certainly don't cut it or pick it, because it really is quite a rare species. Adam: And that's this? David: Yeah so there's, there's, there's several little pieces on this tree here. Adam: I must be careful because I'm right by the river holding my phone, my recorder and if you hear a big splash, that'll be me going into the river, right? Yeah. Also I don't want to tread on all the lichens. Yeah, go on. David: It's this one here. Which is looking a bit dry and crusty at the moment. So this is the, this is the lungwort. But if you look carefully this is an ash tree and this ash tree actually is dying. Adam: I was going to say is this ash dieback? David: Yeah so this is one of the trees that really will probably succumb to ash dieback in due course, but this one, thankfully, is leaning into this really big oak tree next door and the lungwort has managed actually to migrate across onto the oak. Can you see there's some small fragments here? And further up there's more fragments. So this is where potentially the loss of 1 species may be quite significant for the for the lichens that are growing on it. Adam: And do you get involved? Do you give it a bit of a helping hand and sort of pick one up and put it over on the oak? Does, is that a thing that happens? David: So we haven't done here, but that kind of translocation approach is being practised in some areas, particularly where the sites are almost pure ash. So this site here, we've got a range of species that lungwort can probably actually grow on. So we probably don't need to go down that route yet, but on some sites it's really critical. So they are translocating it. Adam: I love that, I go ‘pick it up and put it down' and you very neatly go ‘that's called translocation', but you did it politely, so you didn't make me sound an idiot, and I tell you what I can't, I can't, I want a photo of the lungwort, but I'm, I can't come over that close. I'm going to fall in, so I'll give you my phone, and you can take a picture. That way I won't be climbing all over the place. Well, joining us with our band of merry men and women is actually someone who's responsible for a lot of work behind the scenes and actually bringing people together to make projects like this, this rejuvenation of this temperate rainforest possible. Eleanor: So I'm Eleanor Lewis and I am the South West partnership lead for the Woodland Trust. Adam: I know one of the big problems with these projects is that the Woodland Trust can't, perhaps doesn't even want to do them by themselves, so actually bringing in local communities, other organisations is super important. Eleanor: Yeah, absolutely. I think the enormity of the kind of crises we face in terms of kind of climate change and biodiversity and nature just mean that no single organisation can do it on their own. And we can be so much more powerful and have far greater impact if we join together and create kind of partnerships and work at a landscape scale. So that's a fundamental part of my role really is identifying those kind of opportunities and working with other organisations to basically amplify all of our kind of organisational objectives. So at the moment we're seeking to kind of establish an alliance for the South West rainforest, so that's everyone from kind of Devon Wildlife Trust, Somerset Wildlife Trust, the National Trust and then you've got kind of Plantlife, RSPB, there's too many kind of to name, but a really kind of good mix of environmental kind of charities, but also those kind of policy makers. So we've been having conversations with Natural England and the Forestry Commission. Adam: So what are you trying to get out of that association? Eleanor: I think there's a number of different things, so there is already an existing alliance in Scotland, the Alliance for Scotland's Rainforest and I think one of the key things that has demonstrated is actually the power of having a kind of a coherent communications plan and therefore having a kind of 1 voice that is coming from all of these organisations saying this is important, this is under threat and this is what we need to do is a really kind of key aim of the alliance. Adam: Well Eleanor, thank you very much indeed. I do, I mean, I really do understand that sort of better together spirit really does help to achieve amazing things, so best of luck with that. I'm going to go off, Dave is down there and I can see he's he's joined by a colleague I think there, so I'm going to go back and join them. But for the moment, thanks, thanks very much indeed. Tom: So my name's Tom, Tom Pinches and we're contractors and consultants who work in the countryside. Adam: And you're brought in to sort of identify trees that, it's called what this rapid, it sounds very flashy, so it's like you're the SAS of tree men, rapid reaction force. What is it called? Tom: It's called the rapid rainforest assessment Adam: Right and what is the rapid rainforest assessment? Tom: The assessment formerly known as the rapid woodland assessment, it went through a little bit of a rebranding exercise. Adam: Right, so what is it? Tom: So the keyword there is rapid, so it's basically a toolkit which was developed by Plantlife to to easily identify temperate rainforests. I mean, my role as as a consultant really was to work with the volunteers. Adam: Right. So showing them how to use this toolkit. Tom: Yeah. So in theory it can be used by people with with less experience of ecological surveys. But there is some nuance there which requires a little bit of, a little bit of knowledge. Adam: And so what sort of things are you testing? What, what are the the characteristics you're trying to find to identify this, this temperate rainforest? Tom: So it it can be quite difficult to identify habitats and and that's something which ecologists have been struggling with for a while because there's no single identifying feature. So historically it was done by identifying indicator species. In certain habitats you tend to get communities of of species which which you find in that habitat. The problem with temperate rainforest is that those indicator species are plants like bryophytes, lichens, liverworts, mosses, which are very specialist, not not that many people can identify them, but the other things you can do are identify characteristics of the habitat. So these communities of species tend to be found in certain certain types of places. So one of the things we were looking at was was the structure of the woodland. We were looking at the age structure. We were looking at the amount of canopy cover, so those things are really important in temperate rainforest. Adam: OK, so that's really critical, so this isn't Amazon rainforest transplanted to Devon tea land. This is, it does look different from a a jungle type Amazon. Tom: So absolutely so the similarity is that they both require high rainfall, which is why you find them on the on the western edge of the UK where there's a lot of rainfall. Adam: OK. And I don't wanna get obsessed by this, but why is it important that we identify this as rainforest, it looks just a very nice forest to me. The fact whether we call it temperate rainforest or just a bit of forest, doesn't seem to me to be that important. Why is it? Tom: I mean, so temperate rainforest is is an incredibly rare habitat. So you could ask, why should we be conserving any incredibly rare habitats, I think, as a as a society, as an as a, as a, as a population, we all agree that that rare plants and rare habitats should be conserved, and so it's really important to identify them in order that we can conserve them. You know, we talk about diversity, we talk about diversity of species, biological diversity, diversity of habitats. And each of those sub habitats have their own biological diversity, biological uniqueness, and it's really important that we that we can identify as much nuance within those habitats and within that biological complexity as we can. So we can kind of save as much as we can, that's sort of under threat. Adam: And it's beautiful as well as isnt it. Tom: It is, yeah, it's really beautiful. They're some of the, I think some of the most beautiful habitats in the country, certainly in the country, maybe even the world. Very Tolkienesque, you know. Adam: It is, as we crossed that bridge, I said if you're making a film of The Hobbit, that's what you put in The Hobbit. Tom: Absolutely. And and and and you know these are habitats that inspired people like Tolkien to write about woodlands. Adam: There is something mystical about them, isn't it? They do feel sort of magical places, little weird stuff could happen like stories. Tom: They feel they feel timeless and ancient, and that's because they are ancient right and that's why they're so important because they're so old and they're so ancient. You know these really valuable habitats they're there because they've had so long such a long amount of time undisturbed to develop the diversity that they have. Adam: Well, that is a fantastic point to end on Tom. And we are right in the middle of the woods right now and I have a train to catch, so I've got to make my way out to this place. So Tom, thank you very much, of course, my thanks to Eleanor and Dave and even the birds, the trees, the muds and the rivers which have given us our wonderful soundtrack for today. Thank you for listening. If you want to find a wood near you be it a temperate rainforest or something a little less exotic even, you can find a wood near you by going to woodlandtrust.org.uk forward stroke find a wood that's woodlandtrust.org.uk forward stroke find a wood. Until next time, happy wandering. Thank you for listening to the Woodland Trust Woodland Walks with Adam Shaw. Join us next month, when Adam will be taking another walk in the company of Woodland Trust staff, partners and volunteers. Don't forget to subscribe to the series on iTunes or wherever you're listening to us and do give us a review and a rating. And why not send us a recording of your favourite woodland walk to be included in a future podcast? Keep it to a maximum of five minutes and please tell us what makes your woodland walk special or send us an e-mail with details of your favourite walk and what makes it special to you. Send any audio files to podcast@woodlandtrust.org.uk. We look forward to hearing from you.
To grow your client base proactively, you have to do more than just post stuff. It's about initiating conversations. And if you think of your social media content as your first contact, and you recognize that the goal of the first contact is to initiate a second contact (which means to get a response,) then your likelihood of success is going to be greatly increased. David: . Hi, and welcome to the podcast. Today, co-host Jay McFarland, and I will be discussing the topic of growing your client base proactively. Welcome, Jay. Jay: Hey, thank you for having me on. I'm super excited about today's topic. David: Yeah, it's great to have you here. Jay: Yeah, I, I know this is a big question for businesses. I've heard the phrase, if you're not growing, you're dying. And so growth is a constant thing that you have to be thinking about. How do you do that proactively? David: It's a great question because so often we get caught up in the day-to-day of what's going on. Particularly in the early stages of a business, when you don't have as much business as you need, it can be really scary. And what a lot of people tend to do is they just sort of default to whatever it is that they think is going to bring in business. And they lose sight of the fact that if they aren't proactive about it, you can really fall into bad patterns that can create problems and perpetuate a cycle where you're not generating the revenue that you need to grow and scale. Jay: Yeah. This is such important information because I think most people don't start a business because they know how to grow a business. They start a business because I have a great recipe and I'm going to put it in a food truck. Or I'm an attorney even, and I've learned the law or a dentist or a doctor. Those people are not trained or taught how to grow their business. They're taught how to do their craft. So this is outside of anything they've been taught. David: It's really funny because there was an electrician here earlier today at our house and he was taking care of some things and we were having exactly this conversation because he used to work for another electrical firm. He decided to start his own business and we started talking about what they don't teach you in electrical school, essentially, right? I know how to do electrical work, but do I know how to find customers? Do I know how to find the right customers? Do I know how to handle the billing and do collections and hire and fire, and do all the other things that become necessary when you have a business? It's a whole different set of skills. But you're right. And from the standpoint of our topic today, in terms of growing proactively, a lot of business owners really don't know how to go about that. They don't know how to do it, which is the reason we're having this conversation today. Jay: Yeah. And it can be so daunting. So where, where do you start? I mean, you know so many ideas. You know, you got social media, you've got all of these different tools available to you. Where do you begin? . David: Well, I think for a lot of people, if you want to take a strategic approach, you want to think in terms of the types of clients you actually want to have, the types of customers that you enjoy interacting with. By and large, these are going to be people who are pleasant to deal with. They're people who have money and aren't afraid to spend it. They're people who appreciate the value you bring to the table. And a lot of times we don't even think of that. Particularly in the early stages, if somebody is willing to pay us for what we do, we're like, "okay, great. I'll take it." I think that can really be a mistake, because it can lead us to establishing the type of client base that we might not actually want to interact with on an ongoing basis. So when I think in terms of building a client base proactively, to me that means deciding in advance what types of clients do I want...
INTRODUCTION: David Hernandez is the founder of Body By Purpose, creator of the Elite Champion Fitness Academy and host of the podcast, Listen, You're Not Defeated. He is passionate, inspiring, andmotivated. He believes that each of us was designed to live a life of purpose. He believes in one core component in everything he teaches... providing VALUE. So that men and women can learn the principles needed to achieve a healthy, fit and fulfilling life. His life's mission is to empower OVER 1MILLION people to live a better life, healthy, fit and free! After losing hischildhood best friend to obesity at the age of 21, David promised himself thatno one he loved or cared about was ever going to die of obesity if he couldhelp it. INCLUDED IN THIS EPISODE (But not limited to): · Super Sickening Health Advice· Male Self Esteem Issues· Obesity Concerns· Emotional Eating· Our Relationship With Food· Fitness Industry Tea· Lagging Indication Of Lab Tests· The Benefits Of Weight Loss· The Stress Of Weight On Internal Organs· The Mental Effect On Exercise CONNECT WITH DAVID: Website: http://www.DavidHernandez.coWebsite: http://www.EmotionalEatingSupport.comYouTube: https://bit.ly/3k6mW3tFacebook: www.facebook.com/davekhernandezTwitter: http://www.twitter.com/davekhernandezInstagram: http://www.instagram.com/davekhernandezLinkedIn: http://www.linkedin.com/in/davekhernandez/ DIETICIAN RECOMMENDED INFO: https://www.niddk.nih.gov/health-information/weight-management/adult-overweight-obesity/health-riskshttps://www.cdc.gov/healthyweight/effects/index.html CONNECT WITH DE'VANNON: Website: https://www.SexDrugsAndJesus.comWebsite: https://www.DownUnderApparel.comTikTok: https://www.tiktok.com/@sexdrugsandjesusYouTube: https://bit.ly/3daTqCMFacebook: https://www.facebook.com/SexDrugsAndJesus/Instagram: https://www.instagram.com/sexdrugsandjesuspodcast/Twitter: https://twitter.com/TabooTopixLinkedIn: https://www.linkedin.com/in/devannonPinterest: https://www.pinterest.es/SexDrugsAndJesus/_saved/Email: DeVannon@SDJPodcast.com DE'VANNON'S RECOMMENDATIONS: · Pray Away Documentary (NETFLIX)o https://www.netflix.com/title/81040370o TRAILER: https://www.youtube.com/watch?v=tk_CqGVfxEs · OverviewBible (Jeffrey Kranz)o https://overviewbible.como https://www.youtube.com/c/OverviewBible · Hillsong: A Megachurch Exposed (Documentary)o https://press.discoveryplus.com/lifestyle/discovery-announces-key-participants-featured-in-upcoming-expose-of-the-hillsong-church-controversy-hillsong-a-megachurch-exposed/ · Leaving Hillsong Podcast With Tanya Levino https://leavinghillsong.podbean.com · Upwork: https://www.upwork.com· FreeUp: https://freeup.net VETERAN'S SERVICE ORGANIZATIONS · Disabled American Veterans (DAV): https://www.dav.org· American Legion: https://www.legion.org · What The World Needs Now (Dionne Warwick): https://www.youtube.com/watch?v=FfHAs9cdTqg INTERESTED IN PODCASTING OR BEING A GUEST?: · PodMatch is awesome! This application streamlines the process of finding guests for your show and also helps you find shows to be a guest on. The PodMatch Community is a part of this and that is where you can ask questions and get help from an entire network of people so that you save both money and time on your podcasting journey.https://podmatch.com/signup/devannon TRANSCRIPT: David Hernandez[00:00:00]You're listening to the sex drugs and Jesus podcast, where we discuss whatever the fuck we want to! And yes, we can put sex and drugs and Jesus all in the same bed and still be all right at the end of the day. My name is De'Vannon and I'll be interviewing guests from every corner of this world as we dig into topics that are too risqué for the morning show, as we strive to help you understand what's really going on in your life.There is nothing off the table and we've got a lot to talk about. So let's dive right into this episode.De'Vannon: Good morning everybody, and welcome to the Sex Drugs in Jesus podcast. So glad to have you with me today. David Hernandez is the founder of Body by Purpose, creator of the Elite Champion Fitness Academy and host of the podcast. Listen, you're not defeated. Join David and I today as we get deep and heavy about obesity, our relationship with food, mental health, self-esteem, and so much more.David [00:01:00] lost a friend to obesity and had a near death experience himself,and so this episode is quite emotional.Please listen and share. Hello everyone and welcome back to the Sex Drugs in Jesus podcast. I love having all of you. I love having sex with all of you. I love doing drugs with all of you, and I love talking about Jesus with all of you. David, how are you? David: I'm doing fantastic. My man's doing, doing a, a great morning here and excited to be here with you.Thanks for having me. De'Vannon: Hells fuck yeah. So y'all, David Hernandez is in Florida. He's the founder of Body By Purpose. He's gonna tell you what that is in just a moment. He's the creator of the Elite Champion Fitness Academy. He's gonna tell you what that is in just a moment. He's a certified personal trainer, a certified nutrition specialist, the member of the International Sports and Science [00:02:00]Association.He's gonna tell me what that is in a moment, cause I'm most curious about it. He's the host of. Of of the podcast called Listen, you're Not Defeated, and he's gonna give us some tea about that too. So I'll walk you, I'll walk you through everything that you gotta tell us. So first, what is Body by Purpose?David: Yeah. Awesome. And look, I believe our body was designed with the specific purpose, and each one of our purposes are unique. And if our body isn't aligned to our purpose, to our desire, to our lifestyle, to the things that we desire to achieve and do in life, well, we may fall short of that because our body is the instrument that takes us there.right? It's what makes us travel to that destination in life. And so I believe that when we align our body to that purpose, we can truly become unstoppable and ultimately able to achieve whatever we desire to achieve. So that was critical with me. I was, I was kind of thinking about what name do I wanna [00:03:00] give?Because I believe that health is bigger than us, right? And if we can include purpose in all that we do, well, then we can make our body achieve that as well. De'Vannon: So is this like a nonprofit? Is it, you know, like your fitness organization? What is it? David: Yeah, it's my company where I run all of my fitness through.But primarily it's also A, a kind of like a, like a motto that I, that I want people to adopt in their own life, so to speak, because it's a message, right? And I think that when we put a message or a meaning to everything that we do, then we can enhance the value of what we're doing. And I believe that our body is a critical tool.It's an instrument that oftentimes we ignore. We're now starting to talk a lot about, a lot about the mind, and we talk a lot about our emotions and we talk a lot about many things, and the body's also talked about, [00:04:00] however, I believe the body is not presented in the correct. I believed oftentimes when we look at the media, when we look at how we should look, there's a specific stigma.There's a specific style. Right now we're getting back into the really, really skinny look, and oftentimes if the look or the body, again, isn't specifically aligned to your purpose, then it doesn't matter what body you have, it's gonna ultimately keep us from achieving our ultimate desires in.De'Vannon: Okay. All right, cool.So what is the Elite Champion Fitness Academy? David: That's the academy that I put together where I utilize to train all my students. So instead of me telling you what to do, I believe in educating you to take control of your own health. So it's a platform that I have. All of the years that I've been in fitness, 15 plus [00:05:00] years, all of the education that I've acquired, I've condensed it to a very specific core component system, so to speak.And in that academy, I put all of the principles that I believe are necessary for one to achieve the ultimate health that they desire in one place. And so that's basically my coaching platform that I put together, and it's what I utilize with all of my students. De'Vannon: Fabulous. Now, what is the International Sports and Science Association?David: That's where I got my certification from. It's a certification education company or a certification company where you can get your nutrition certification, your personal trainer, asso certification and all things related to health basically. De'Vannon: All right. Now they had me atk. I was like, okay,So the podcast, listen, you're not defeated. What is its premise? David: The premise is really to tell [00:06:00] people that doesn't matter what situation that you're in, you're really not defeated. And oftentimes as humans, we have one area or a few areas where we might feel defeated in, and that might be nutrition, that might be in health.I can't release weight. That might be in mindset. I don't know how to take control of certain negative thoughts to get me there. So it's a lifestyle show where we basically cover many areas to ultimately help you live a not defeated life. De'Vannon: Now, when I was researching that on your website it's the verbiage kind of makes it seem like it's geared toward women.Is that still the case or has it expanded to include. David: It's expanded to include everyone, and it's really now to the place of, well, what is your ultimate desire, right? In life, which initially when we started it, it was geared very specifically towards only health. But I realize that in that [00:07:00] health is covering all areas, right?It's not just a physical health, it's also a mental health. It's also emotional health. It's also spiritual health. And health is bigger than us because it does impact everything that we do. So through our development and kind of going episode to episode, we've now been able to diversified and expand it to anyone that wants to basically just live a freedom lifestyle or a lifestyle of freedom.for proper English, De'Vannon: oh, fuck, proper English . One thing, one thing I despise about this country. Is that we don't have like an actual language of our own. That's right. You know, we speak English well, that came from fucking England and fuck the king off with his head. Yeah. . You know, may I think that, I think that Mad Queen might've had a few Few.Hmm. A few, few, few good points there. [00:08:00] I don't know. I just it would be, I just love it that every other, basically every other country has its own fucking language. Yeah. You know, Australia at least has a goddamn accent, you know, and at least they have an accent, you know, over there in the uk, but pretty much every other country, you know, they have and in that their own language and that language really unites them, you know?Yeah. And everything like that. It's like, it's like, it's like when you're on a job, but you learn to speak that occupation's language and it bonds you. Mm-hmm. , you know, David: I feel like, I mean, it's an essence, right? I believe it's, it's an essence that makes up a country and it makes up an identity type. And look, I, I think holding onto that, that conversation there, I think it's the same thing for all language in terms of who we are as people, right?Because when we look at language, it, it's the, it's an essence that, that identifies something or someone, a country. [00:09:00] And I believe that in America, oftentimes we don't have our own unique language, meaning we strive to sometimes be like somebody else, to copy somebody else, right? To, to, to, to live the life that somebody else has.And we sometimes forget about, well, what is our core essence that we can adopt to live our own life and set our own standard, so to speak, in what we want in our life? So I just thought De'Vannon: I'd throw that in. Feel free to throw in anything you want, man. So I love, I love how how deep of a thinker you are. And the reason why I really wanted to have you on my show is that that passion, you, you talk like a preacher, like you have like one of the good preachers, y'all, not one of the rapy ones or one of the molesters , not one of the grif ones.Good one. So you have like that certain fire and intensity and passion and I could tell that you're living, like you're calling [00:10:00] and you even fused that into health and fitness and so Right. Thought it would be a unique take. I could have gotten anybody on here to talk about health and fitness, but I, I was, I was needing that, you know, I was looking for that, that.And so, which you have that spark. And so I'm curious when I Oh, you're welcome. And so when I was read, you know, researching you and everything I saw where you in the beginning of your fitness journey, you would go to the gym and you, you start up like the big muscley guys or whatever like that and mm-hmm.and I read where you were able to extract insight and wisdom and tips that you said that you felt like the personal trainers and things like that either didn't know or they weren't sharing. So I would like you to share with us some sweet ass David: secret. Yeah. Look, it really, what I've learned through I guess, looking at many bodybuilders life is that they've got [00:11:00] two to three things very clear for the.They've given meaning to everything that they're doing in the gym. Like it has a certain value and it has a certain standard of meaning for them. It's what drives them. It's what gets them up. It's what keeps them on diets for months and years on end. It's what keeps them committed to a specific outcome.So much so that even if they don't get it, they live satisfied because they know that the process and the journey has gotten them close to it or to achieving it. Right? And when I look at health, I look at, well, I started asking questions and saying, well, why is it that people don't stick to the journey?Why is it that people fall off? Why is it that they have, they're able to commit to other things, but yet they fall off? When we're talking about health, and I really come back to this piece, they've either not given health the value. That is necessary for them [00:12:00] to continue, or they've put other things at greater value that are overvalued or have greater value than they've put on health.And then the second component is really looking at, well, they haven't given value or they don't find value in themselves. They don't feel that they might be worth it. They feel that they might not be worthy enough. They might feel that they're not deserving of having the health or the life that they desire.So that was a big one. And I said, okay, so if this bodybuilder is living in this way and he's given this meaning to them, that's keeping them stuck, well, why can't we incorporate that to just any average person? To help them in their own health and fitness journey. Right? So that was one. The second, the second thing that I learned, the second sort of secret, right, which is really not a secret, but is their commitment to process, meaning their determination and dedication to the [00:13:00] sport, right?Or to their body or to their life. Because we look at, well, what does it take to get a body so greatly proportioned, so immaculate, right? So precise in a sense that it comes down to a science they're determined to achieve, that they're dedicated to that process. And oftentimes when we're looking at an average person, right, or, or, or a, a person that is on their own journey, sometimes that might be lacking the dedication, the determination, and it help, it doesn't allow them to get to their ultimate goal and destination.Right. And then thirdly, a lot of it was learning how they actually work out some of the methodologies in terms of how they're sculpting the bodies, how they're actually doing certain movement patterns and taking that muscle to failure and making the muscle grow through increasing the blood flow in that body part, right?And [00:14:00] ultimately reducing down to as little body fat as possible. So it, it brought a lot of insight that I was able to incorporate and look at, okay, if I'm not training a bodybuilder, how can I still incorporate some of these principles or some of these things that they do to a average person that is looking to maybe release 20 pounds, 30 pounds, 10 pounds, 50 pounds, a hundred pounds?Right. And it was some, some of the core essences that I believe have really impacted many people in their, in their own journey. De'Vannon: You know what I'm curious about? I don't really think like a male. I identify more with feminine energy, so I think more like a woman on mills dating. Okay. Right. And so I'm curious cuz all of this, everything that you said is like, so like meaningful and deep in terms of physique and stuff like that.So from talking to other guys and within yourself, like what are some of the things that motivate men to go, [00:15:00] you know, to work out, to get, you know, really, really defined bodies? We're gonna talk about like the obesity and everything. Yeah. You know, in just a second. weight loss goals can be different, you know?Absolutely. Going from 300 pounds to one 90 is like a huge deal, but you may not be like chiseled and well defined, but you are in super great shape, especially relative to what you were mm-hmm. . And I know that once you get like a six pack and eight pack, a nine pack or whatever, every guy I know who has that, the, if he gets out of the gym for like a month, that damn thing goes away.Mm-hmm. . And so so whenever, so they don't go more than like a week out of the gym and whenever they travel, they take their asses over the Gold Gym, fitness or whatever, like, like religion. So when I look at a man like that, I think, okay, he's hot. This is like a sexual thing. Mm-hmm. . But the, but from hearing you describe this, and from the way I have [00:16:00] observed other guys, I don't know that it's like a sexual thing.And so I don't, so how, how do men look at, how do y'all look at your own David: body? A lot of it is driven by ego in a sense that because we as men are achievers, right, strivers, we want to be in that place of, of chasing after things, achieving the provider at the home or whatever that might be for you.It really is driven oftentimes by. How can I be the best version of myself or how can I be better than him? Or how can I be better than myself to become better? Or oftentimes it's, I used to be this type of person that kept me in a low self-esteem state that wasn't who I wanted to be, for example. I can really identify to that.Growing up, I was super. [00:17:00] I was given a nickname, skinny. My dad used to call me that he didn't know. He thought it was a good thing for him, but for me, it would affect my self-esteem. It would affect the way I would view myself because I did not like the way I looked. I was excessively for my standard skinny.I would be made fun of because I wasn't able to possibly perform, be good at sports because I was a specific physique type, right? And I always found myself having to prove myself, proving myself that I was able to play football, proving myself that I could become the best athlete, proving myself that I was much more than what my body said.And so that took me into, okay, so how can I change that? I started reading magazines. I started looking at these bodybuilders and these physiques and saying, oh my gosh, who is this? Can I possibly achieve that? Then I look at their back stories, and many of these bodybuilders were the same way. They were skinny.They were very thin, they were bullied, they were made fun of. [00:18:00] And then that drove them to change that. So oftentimes it, it really comes down to each person's unique story, but I believe deep down inside there is something of that nature that is driving them, either growing up excessively skinny, low self-esteem, maybe being bullied, or it can ultimately come down to an ego-based drive that's just like, I wanna be the best.How can I achieve that wall? Let me be intimidating. Let me have these muscles because it's gonna give me a certain look or a certain presence, right? Wherever I go, that when I walk into a room, I can change or capture the environment based on how I look.Okay. No, I can't speak for every male. Right? But that's what oftentimes I've, I, I believe is, is the reasons. De'Vannon: I mean I think you might speak for quite a [00:19:00] lot of them, especially men who, who are more on the masculine side, you know, and you know, cause even like the gay world mm-hmm. , you know, your tops and everything.You know, you, you have your tops, your bottom tops are like, the dudes bottoms are like the girls, you know, for lack of better. Right. References. Even them, they get like this thing about being too thin. Mm-hmm. , you know, for me, I've always been able to keep a weight on, so I've always been like, okay, how can I get this shit offYeah. But I, but I didn't wanna be muscley or nothing like that. I wanted it like a nice, you know, curvy like, you know, womanly physique and stuff like that. And I, I guess it's just, and I guess it's just because I don't think like a guy like it, it was, it, it has been absolutely perplexing to me in my existence.Why somebody who's not overweight. Who's like super skinny has a problem with that. Yeah. You know, [00:20:00] I, you know, hearing you explain it helps me to digest that better, because all my life I'm like, okay, how can I get down to, to being, you know, skinny mm-hmm. , you know, and and then the skinny guys are like, I'm not enough.You know, I want to be more. And, and I'm all like, boy, don't you know, you fine as hell. What do you want? Like, what more do you want? So, and then perspective. Perspective, right? And then the relationships. That I've had, you know, the, the, the, the dude, he's all like, he thinks he's too thin. I'm all like, okay, whatever you need to do.I'm not judging your body, but they have it in their head. So much likes saying like, I can't, I just can't be thin. I need to like, have muscle or whatever. And so I don't know if that's like the xy chromosome primal. If I need to defend myself, I need to be bigger than the other person too. Maybe some of that's getting worked in there.I believe David: so. Yeah. And, and oftentimes it can become a coping mechanism [00:21:00] to something like when we're talking about life experiences, right? We're talking about emotional triggers, emotional pain, trauma, right? Something in experience that causes some type of impact to us emotionally or psychologically will produce a stimulant to search for a coping mechanism.And as humans, we all need them to survive to allow us to release whatever emotional impact we've received by X situation or X circumstance, right? And oftentimes, if it's body dysmorphia, right, which we can kind of label that as as well. I see myself skinny. I see myself skinny, but dude, you're not right.In our head, we create that dysmorphia type where we may never be satisfied or we just see ourselves at something else. And oftentimes when we're chasing after this and we fall into this coping action physique wise, [00:22:00] it can become a trap because again, we're never satisfied. I remember on my body building journey, it didn't matter how big I was.I wanted to be bigger. It didn't matter how good I looked, I wanted to look better. It didn't matter how many compliments I received of, dude, you have a great physique. No, no, no, but this, but that, right? We have a tendency of finding the flaws of not being satisfied, and that ultimately is caused in my belief by finding a coping action in the wrong things or releasing our set circumstances that we're feeling emotionally satisfying them or trying to satisfy them with the wrong things.if that makes sense. Oh, it De'Vannon: makes perfect sense. And that's a huge reason why I do all the work that I do to try to, to get people to understand themselves. Because so often we don't. And we think we do. Yeah. Yeah. So you hear me say all the time, people, why do you think, what do you think? Why do you feel [00:23:00] what you feel?Where do you get that belief and value system from? I love that. Is it valid? I love that. Yeah. I, I went the opposite direction. No matter how thin I got back in the day. It wasn't thin enough. I lost so much weight that I couldn't fit the men's jeans in the store that I would go to. So I had to start wearing wow jeans as I was down like a 26th waistline.And I was like, I need to be thinner, you know? And so so I guess that's like how the girls, that's how we do. And thin enough, the boys, you're not big enough. Oh my God, help us to just figure this shit out, , . David: But look, if we are doing things for the wrong reasons, that can quickly spiral to that. So that's why every time I'm doing a consultation, right, and I'm talking to a potential client, it's why do you wanna release weight?Why do you wanna build muscle? Because if the reason why you're doing it is an incorrect reason, right? Just to give it a, a name, to give it a [00:24:00] category. If it's placed for the wrong reasons or it's placed on the wrong things, that is when things can quickly become destructive. Mm-hmm. . It's why sometimes I even ask myself, right?And now, now we're get, I'm getting hypocritical because this is me and this is how I tend to look at things based on my understanding and knowledge. I become hypercritical about certain things, and it's okay, I wanna have this whole pizza. Why do I wanna have this whole pizza? I wanna have this cake. Why do I wanna have this cake?Right. And it might be, I don't sit there and ask myself this question. It happens here now because of the practice that I've had. But if we can get into a place to, to, like you said, ask ourselves questions. Why is it that I want this? Why is it that I wanna do that? Why do then we can stop and really think, is this really necessary?Is this what I want? Which is why [00:25:00] one of the questions that I teach my students to ask them is, is this choice that I'm, I'm about to do in line with who I wanna be in line with, who I wanna become? Mm-hmm. in line with the life that I desire. If we can practice, like you said, to ask ourselves these questions, I believe that we can really get good at taking control of our impulses, of our reactions, of our emotions, right.That sometimes drive us or lead us to making choices that later we can regret. . Mm-hmm. De'Vannon: you preaching now. Amen. And amen. . So, so you mentioned consultation. So tell, tell us about exactly the, so what, what kind of, so you have clients, are they seeing you in person? Is it virtual? Clearly they're coming because they want to change their physique.So kind of walk us through what that looks like and if people would reach out to you through your website. Like how does a, what exactly are you offering here? David: Yeah. Before, [00:26:00] before Covid, a lot of it was in person and it was very exclusive, right? It was like only a certain type of people. Only certain, certain instances would I take them.And after Covid I realized, look, I, I, I could be impacting more, right? And really the reason why I do everything that I do, it was to be able to help people avoid. Going through what my best friend went through, and we can touch on that story story a little later, but it was to support and to help people.And when this epidemic happened, it was a great opportunity for me to then make that expansion. So now everything is virtual. Everything is now online based, right through the academy, and we've got several different types of formats. We have a one-on-one type coaching, and then we have a group type model.And it's to accommodate people at different levels based on their commitment and also based on their finances. But it's really [00:27:00] just, we make it unique and personal to you because we're that type, right? As humans, we're all unique. We're all different types of people, so no program should ever be the same for.Because we're different, right? We have different desires. We have different lifestyles. And that's really the big key, because I believe if whatever you're doing today doesn't align to your lifestyle, meaning who you are as a person, the type of career you have, the type of of schedule you have, the type of time that you have, the commitment that you have, if it doesn't align to that, at some point or another, you will quit or you will fail, you'll give up, right?Because it just becomes unstable. It's not sustainable. So my approach in every consultation is really getting down to the root and to the desires of each person's life. Why do you wanna do it? What is your motivation? What is the driving force, right? What are the desires? What do you wanna achieve? And then from there, it's really getting to the person's commitment level, [00:28:00] right?So how much time are you willing to invest? What is your life like, right? How can we make this align or come together with your life? Because. If you're, if you're chasing health in a f in a program mindset, meaning I have an exercise program, I have a, a nutrition program, that means it's not necessarily a part of your life.You're just following a specific program. And at some point, if you don't like that program anymore, you are gonna stop doing it. But if I can now introduce health to become a part of your life, now I marry it. I bring it together with your life. It's gonna be a lot easier for you to sustain, and you're more likely to hold onto it.Why? Because now it becomes a part of you, a part of your essence, a part of your d n a, a part of your makeup as a human and as your life. [00:29:00] So that's a very critical component for me. When we're doing consultations and we're, we're working closely with any student because I wanna ensure that. You keep it lifelong.So De'Vannon: then give me an example of the sort of help you would offer. Is it meal plans? Is it workout plans? Is it helping someone see like, like, like, like what, like what, what would it actually David: be? Yeah. Again, it's customized for everyone's need, right? So it would include all those things. If let's say, no, I only need help with the exercise part.Okay, we'll tailor it to that. No, I need help with a lot of things, right? I need help with my nutrition, my, my exercise. And then I'm also battling some type of unhealthy relationship somewhere. That might be with sugar, that might be with, with alcohol, right? That might be with another controlled substance type form.There's all types of. [00:30:00] Of needs, so to speak, and we tailor it to what you are needing from mindset, the psychological side, because a lot of what we do stems from there. A lot of the choices that we're making stem from there. And my object or or my process is I wanna help you identify why you're doing what you're doing.If we can get to the core root of what is driving you to make these food choices of what is driving you to have this relationship with food, this relationship with yourself, this relationship with exercise, it might be non-existent. You might hate doing exercise, but if I can change your relationship to exercise, you're gonna have a different psychological understanding of what that is.Therefore, then you're going to be more likely prone to holding onto it and doing it long term if we can make the relationship healthy and your understanding to that is a healthy understanding. , [00:31:00]right? So we work with emotional people that deal with emotional eating, stress, eating, binge eating, right?Unhealthy, toxic relationships with their body, with themselves, with all sorts of, of, of relationship issues in that format, De'Vannon: as it says in the, in the book of Proverbs, in the, in the, in the Bible. In all, in all that I get and get understanding . That's right. So, that's right. So we're gonna, so we've talked about some of the some of the skinny boy issues.Now we're gonna talk about some of the some of the obesity issues. Mm-hmm. . And before we get into Eric, Eric is his best friend's name and he's gonna tell us Eric's story. And but I, I wanted to read some of the statistics that we had discussed before because I feel like it leads into that. So I'll read this, you can talk about that, then you can tell us about Eric.Cool. And so it says emotional stress eating is something that affects between 83 and 88% of [00:32:00] Americans, and it produces 75, 70 5% of all overeating. A recent article by C N B C revealed that 11 million people die each year due to non-communicable diseases caused by poor eating habits. And I pulled this from David's website.He has two emotional eating support.com, and then David hernandez.co. Of course, all that will go in the show notes. So just speak to us about those statistics and then tell us about Eric. David: Look, these statistics are meant. Not to alienate or not to bring shame or bring judgment to anybody. They're simply to bring awareness to help us recognize that this is a potential threat to many people's lives.And if there's a threat, the threat is to let us know while, let's avoid falling into that, or let's avoid being impacted by that threat. Or if I'm in that threatful situation, right, [00:33:00] being impacted by this, let's do something about it. Let's change because I believe we can do something about everything. If we're still breathing, we can impact it and bring change.Right. And my best friend was one of these individuals. He was part of this sort of of, of group, of people growing up. He was that kid that just. Kind of never fit in. He was husky, he was slow. He wasn't good at sports. He was he w he didn't, he wasn't coordinated, right? So he always felt like this outcast, and I was the opposite.I was skinny athletic, into fitness, into sports, super coordinated. So we had this really unique dynamic of a relationship that I loved him for who he was, but I [00:34:00] ultimately also wanted better for him because he desired it for himself. And so, through the years, we'd work out together, we'd do things together.I'd, I talked to him as much as I could about health because he was overweight and he always battled with being overweight. And his, his, his battle was, I wanna release weight, but I don't know how. I don't know what to do. And that's where I would come in. Right? I'd give him as much as I could at the time to help him.18 years after high school, we split. I moved to Miami to study nutrition and culinary arts, and he stayed in Texas and we kind of lost, we went our separate ways, so to speak. We lost communication for several years, and at the age of 21, I got a phone call, you know, that he had passed away and I couldn't believe it.I said, what happened? How did this happen? So he got so obese and he became so desperate to get the weight off that he went to get a gastric bypass surgery. Two days later, he got an infection [00:35:00]and he died. Right? And that tore me apart because I started blaming myself. I started to feel guilty. I started to.Blame. Why didn't I do more? Why wasn't I there? Why didn't I support him more? Why didn't I help him get that weight off? So after about eight months of this self sabotaging guilt and shame, I finally had to come to a place and realize, well, there was really not much more I could have done. There had to be something within him that really ignited to do whatever it took to fight for his own health.But after that, I looked at, well, what were the reasons that kept him stuck in that it was his relationship with food, even though he wanted to release weight, his relationship with food was so specific. Eating, [00:36:00] eating processed. Right, eating junk food all the time. He would love chips with cheese and hot sauce, right?He would eat that as a snack. He would love burgers. He would love pizza. He would love all of these foods that were leading him to this path. And so his relationship with food and his own psychological understanding of food was what kept him trapped. He was an emotional eater. He loved sugar, right? And it didn't matter how much he worked out.It didn't matter how, how, how he tried to change his food choices. He just could not give up what he already knew. And so when we look at people that are in this place, right, according to the statistics, it's we're using food for the wrong reasons. Our relationship with food is an unhealthy relationship.Therefore, our psychological view of food or [00:37:00] understanding of food is also an unhealthy one. And if we do not fix this or get to the core of these reasons as to why a person is making these choices, to get 'em to become obese and stay obese. Doesn't matter what diet you do, doesn't matter what exercise program you follow.It doesn't matter what ills you take, what supplements you take. The root, the core of what makes you up is your relationship with food and your psych, psychology of food. Therefore, if we do not change that identity piece, you're gonna stay stuck and you're gonna continue to go back to these habits. Right?Go back to these choices. That's why these statistics are so alarming and so eye-opening that if we don't do something about it, somebody in that state can become one of those 11 million. Right? And it's a staggering number. Hmm. [00:38:00] because of this poor relationship with food. Right. Meaning the poor habits that we have with food.De'Vannon: And you know, if when people go out and get these surgeries and everything, if their relationship with food doesn't change, they're just getting the weight back. Anyway. That's David: That's right. That's it. That's what I'm getting to. A hundred percent. Right. And we see that through many stories. But here's the thing.People go to that place because they're desperate. Mm-hmm. , right? And oftentimes people are just desperate. Give me a quick fix. Give me something. Just, that's why trends and the fitness industry makes so much money off of this. I have news for many people out there. The fitness industry doesn't care about your life.They care about your. , which is why they take out new supplements every year, new trends, every six months, right? Because they're playing off of your emotions because they know you're vulnerable. They know, a, as humans, we become very vulnerable [00:39:00] and become desperate for answers. So therefore they go, oh, now it's this.Ha ha, we just made several billion dollars. Okay, now it's this. Ah, we just made more million dollars off of this. And supplement companies know this, right? And that is where a lot of this toxic relationship starts to happen. But if we can pull back for a moment and say, okay, let's stop chasing these quick fix, let's stop going to just a quick, simple solution.Let's stop doing that and let's simply focus on this component. It's a small piece, but it is a large makeup of who we are. If I can teach you, That your relationship with food happened at a certain time in your life. And if I can help you change your relationship with food, therefore impacting your psychological understanding of food, your own psychology of food, we're gonna be able to [00:40:00]rewire your brain, which is now going to make sure that you don't go back to these unhealthy choices.You don't change you, you change those issues. Now you change you as a person. Now you don't need a diet program now. You don't need supplements right now. You don't need these quick fixes because now you've changed your core essence. And if we can change you and your makeup, you're gonna be able to stick to it.De'Vannon: It's been a long time coming, but change is going to come, so. So in your coaching, do you have like coaches that work under you? Do you deal with everyone yourself? How does that work? David: Right now everyone is myself. I do have, you know, other people within my business that help me with the management that help me with different of the technical side of things.But right now it's really just oversee by me because I've set it up in a way where I can manage it through group [00:41:00] trainings. If it's a larger base format through one-on-one type coaching. I only take a certain amount of students at a time to ensure that I'm bringing the best coaching to every individual.And then we also work with corporations helping them create corporate wellness programs for their own employees. De'Vannon: Marvelous. Now I wanna talk about, like, get a little bit more granular about some of like the the, the the health implications of becoming overweight. So it's not really about like looking fat so much as what it is doing internally.Yes, we buried somebody who was. In their mid twenties, you know, and he, because he was overweight, he, he, he was like, like his, he couldn't breathe. Mm-hmm. . And so before he, when as he was dying, he was in the hospital on a breathing machine and they had to induce a coma. Mm. You know, to just basically [00:42:00] let him pass, because what, what a lot of weight does it, it like, it strains everything.So That's Right. If you're, if you have like extra as they call it in the, in the, in the health world, Addie, post tissue, that's the scientific way of saying fat. That's right. That's right. I learned that in massage therapy school. Yeah. So if, if you have extra weight hanging on you, then it takes strain on the body.So that means your organs have to work harder to do what they're doing. They're less efficient. Your blood doesn't flow as well, because it has all this. added post tissue. In fact, to move around. It's like it's like if you feel a car full of just a whole bunch of junk and weights, it's gonna drain the gas faster, it's gonna grind the gears faster.The brakes are gonna wear out quicker of the extra weight. If you pick up a 50 pound weight and then you put it down, you feel lighter. Yeah. And so when you lose weight, you can move about easier, you sleep better, your whole quality of [00:43:00] life. Hell, for me, when I've been, like, when I've had a extra weight on me, it was hard for me to reach down and like time my shoes and shit like that.Like absolutely little simple like that, that simply get, like, that goes a really long way for like mental health and emotional wellbeing. Just That's right. Being able to, and then, then, you know, you know, sexually too, sex drive goes up when the weight goes down. That's right. So diabetes, heart disease, stroke, sleep apnea, which is kind of what I was talking about earlier.But tell us about, you know, your take on how this affects people in their daily lives and internally in their organs. David: Well, think of, think of a Python or a serpent that com contracts and compresses, right, and strangulate. When we have an excess amount on our body of this tissue, it's literally doing that.It's compressing our organs together. It's compressing our heart, it's compressing our veins, it's [00:44:00] compressing our tissues, it's compressing our lungs, a lot of it, and it literally starts to impact us in ways psychologically, emotionally, physically, right in bed to sleep, to have sex, to have relationships with people, to communicate.Most people that become overweight or become. In any of the levels of obesity also become very introverted, right? They're shamed. They don't wanna go out, they wanna stay inside, they get depressed. There's a lot of impact that happens to our life, and it's not so much about simply living, it really comes down to what is your quality of life like, what type of life, what quality of life would you like to have?So if we're in this state of being overweight and possibly OB obesity, your quality of life [00:45:00]isn't at a good standard. It's not a good quality. And when it's not at a good quality, it starts to really do a lot of damage, not only health-wise, but emotionally, psychologically, right? Which tears us down even faster.That is why health is a responsibility that we have to give to ourself and it's bigger than us because it doesn't only impact you, but it impacts everybody around you. It impacts your relationships, it impacts your mood, it impacts the way you speak. It impacts your energy levels. It impacts your relationship with your kids, with your spouse, with your boss.It impacts your performance. And so that is why I'm such an advocate of understanding that health is a [00:46:00] part of my life, my makeup. If we can take the view of it, our perspective of it in that way, which is why I'm really on a mission to change the scope of how people view health, right? And how people view healthy living a lifestyle of healthy.Freedom versus simply wanting to lose weight, simply wanting to look better. That's part of it, but it's not the makeup that really is the impactful part that should be impactful for many people's lives. Mm-hmm. . De'Vannon: Mm-hmm. , very well stated man. Very well stated. And I, and I also wanna point out like, you know, obesity in younger people.Yeah. It's like, it's like, just because you don't have like negative health problems specifically today mm-hmm. , sometimes it, it's like a [00:47:00] lagging indicator. It's like if you keep that weight on you for too long it can. That's right. Cause you to have problems later. Because, you know, sometimes some people go, well, you know, I feel fine.All my labs look good. I'm able to mm-hmm. , you know, but the thing is, Is that is that shit is sneaky, you know, it catches up. That's right. And lab, lab results and tests only things have to get bad enough for the lab results to the lab tests to be able to pick up on it. That's right. You know, it's like if you don't have enough of a problem, you know, those, those tests are not that thorough where they can just pick up on a little bit of an issue.It has to be enough of it. Yeah. For it to manifest on a test, and then by the, sometimes by the time that shows up, then it's too late to really deal with it. Yeah. So what I'm saying is don't think because you are young and you know, and you, you, you're, you're eating all of this. You what, how you know you're [00:48:00] overweight, that your health won't like suddenly fail you one day.Yeah. Like, I don't want people to fall into this trap of thinking like, well, everything looks good. So That's right. David: Yeah. Yeah. Because in the same way, it, it's just one moment, one. One consistent choice away from making all of that flip. Right. And look, and it's the same for skinny people. Did you know that skinny people are, have the highest heart attack rates than anyone out there?No, because they believe, because their metabolism, right. Is keeping them in this state of being thin. They believe that, oh, I can eat all this. I can eat this food, I can eat this, this burger, I can eat all this. So their intake of fatty food, of sugary foods are at a higher rate oftentimes that then causes that heart attack to happen.Right. And so it, it's, it's, it goes back to what is our [00:49:00] relationship with food like, what is our psychology of food like? Because if it's unhealthy at some point or another, it is going to break. It's going to blow up. In the same way, when we look at a relationship with a partner at the beginning, there might be some arguments, there might be some fighting.Then comes a push. Then that push becomes a slap. If the relationship is unhealthy, it starts to get unhealthy. If we don't address it, it's just a matter of time for it to blow up, right? Which is why a lot of what we do when we're even talking about obesity, I believe obesity is learned. Because when we look at, well, what makes up a person to become obese, if we're talking about the relationship with food and their psychologic psychology of food, well, we learn that at some point we were taught to eat this way.Food was introduced to us [00:50:00] from our young age. Therefore, in those moments of us learning how to become a human, how to eat, how to react, how to act, it stemmed from home. So if growing up all we were given was frozen food, ramen noodles, fast food, right? , as you grow up, you're gonna stay with that same relationship and sometimes it's gonna magnify to go from ramen noodles to eating, I don't know, one cup to five cups or whatever it is, to another type of food.Very similar to that. To salty foods. Right? To sugary foods. And that is why it's important parents, right? Or those that are adopting kids. We've got to learn for ourselves how to develop a healthy relationship and a healthy psychology psychology of food so that then we can teach that to our young kids so that then they can grow up with a healthy relationship the same way.[00:51:00]De'Vannon: Yeah. And I feel like marginalized and a lot of like ethnic. Communities are impacted more by this sort of thing because, you know, when you growing up in the hood and in poverty like I did mm-hmm. You know, you know, you too, the parents and everything are too focused on keeping a roof over the head or keeping you from getting murdered or shot or whatever.Yeah. So we never talked about like, okay, this is you gonna balance this plate. Like I have a dietician now, and so, you know, through the Department of Veterans Affairs and awesome. So they're like, and nobody's ever explained to me before. Okay, so if you're going to eat, say, boiled eggs, you just need two of those per day.And then you be sure that the most of your plate is vegetables and not proteins. You don't actually need that much protein. That's right. Like actually laying up re reading the back of a food label, paying attention to mm-hmm. , the amount of servings not being all quick Oh, a hundred calories. But it's Tenten servings in the [00:52:00] Yeah, that's right.That's exactly thousand calories. Yeah. Yeah. And so, So I just really David: wanted to, and how much is the serving? 10 chips? 14 chips, right? And we're eating the entire bag saying, oh, okay, great. There's no problem with this. Right? And look, we're responsible for our own, for our own body, for our own health, right?It's our responsibility. But we also have to look at, look, our environment may not be helping us, right? Let's look at the American standard diet, right? It's not the best. So it's very quick to sometimes say, well, this is the reason. Well, our boss is the one that brought these, these things. My friend is the one that brought my coworker, brought these donuts here.But just because things are like that in our environment doesn't mean we have to give into our environment. Doesn't mean we have to conform to these things. It doesn't mean we have to say yes every time they invite us to go get ice cream or to go do this. Right. It really ultimately, like you said, is educating ourselves [00:53:00] and taking this as our own responsibility.Because if I can be responsible for my own health and I can teach those around me as an example piece of how to be responsible the same way, then we can start to really take control of this thing that has just really spiraled from us, right? Mm-hmm. . De'Vannon: Absolutely. And so we just have a few minutes left here.I want to So we, so we, you know, we, we, we've given people some very, very heavy Yes. Information right now. And so I wanna lighten it up for a little bit. it takes back heavy again because I'm gonna have you close us out towards the end with your near death experience. So let's talk about some ways that people can maybe implement this.So for me, what I found is that I'm, I'm, I'm from Wakanda, so I like it hot. I don't do Yeah. Temperatures below like 70 degrees. I'm like, bitch, it's cold. I'm [00:54:00] putting my teeth David: up, and running. I'm inside the house with the sweater and the, the, the ACS off , De'Vannon: right? I'm like, I, so I, I observed within myself. I work out when I w used to try to go to the gym, come like October, I'm like, fuck all that.I'll see y'all again in April. Yeah. And so my weight would go up in the winter. Right. So what worked for me was I had an empty room in my house and then I put a treadmill in there, which you can get them from like Walmart at Target. Yeah. A weight bench. I got adjustable weights so that they take up less.Beautiful. That's right. And then my dad gave me one of those multi-function machine thingies and so, so that I had to bring the gym to me, so that's perfect. Yeah. That's what worked for me. So what suggestions do you have for people to, to make it work for them or anything like David: that? Look, that's one example of a great way we can do that, but might, some people might say, well, I don't like working out in that format.Okay, great. It's [00:55:00] how can we keep things simple? If one thing you take away, I want you to take away this is asking ourselves, how can I make health or healthy living? Simple meaning, what's one thing I can do? That is simple that I can achieve, but that I can make it fun. We forget that healthy, a healthy life should be fun.And when we get to these states, they're darn well fun because you're able to do more. So in today, if we look at, well, all I can do is walk. Okay, great. How can we make walking freaking fun? Can we find a, a partner that we could do with? Can I listen to some awesome music? Can I watch a video while I walk?Right? Can I, can I skip? Oh, what are people gonna think? Who gives a rats? [00:56:00] What can you do that is fun? You like to. Put on a freaking show in your living room. You like to sing, freaking sing your heart out in the living room while you dance. That is part of exercise that is part of fun. I had a student a lady, she, she loved to country line dance.What would she do? She'd go dancing as many times as she wanted, as she could line dancing, and that was her exercise, right? Get some pool noodles and freaking sword. Fight with your partner, get some Nerf guns and play outside, right? Like, it really is about how can I make it simple and how can I make it fun finding something today that you can do?What is one thing? Oh, well, I don't have time for this. Oh, well, I don't have time for that. What can you do? Let's stop being negative and look at what's One thing I can do. Another thing that I tell my students is every time you go pee, when before or after you're done, do five squats. Do 10 squats. [00:57:00] How much does that take you?That literally takes you five seconds to do that takes you 10 seconds to do. You go pee 10 times. How many, how many squats did you already do in one day? 50 to a hundred squats in a matter of seconds. Right? So it's really about how can I simplify this thing? Because if it, anything that we do in life is overwhelming and complicated, look, oftentimes we overcomplicate it, right?But if we can simply keep it down to, to the core essence, what is health? Health is being active, okay? What's one thing I can do to be active? Go up and downstairs while you listen to some cool music. Go walking, go punch, get a punching bag, put somebody's face that you hate and punch the snot out of it. I don't know.Let's get creative because it's so able, it, it, it's accessible and it's so achievable, but it really just comes down [00:58:00] to us.I De'Vannon: just love to hear you speak and y'all, he has a, a book that he's working on that'll be out eventually and I can't wait to get my fucking hands on it. To, to, to, to devour the written version of this artistic poetry that you weave with your vernacular. And so Yes, yes. But where, where are you? The book anyway, David: we are, first draft is done.We're going. Making tweaks and adjustments and we should be working on that second draft here pretty soon and hopefully becomes the final draft and then we can send it off to, to printing. So we're excited. De'Vannon: Oh, oh my God. If you could get a book edited in three drafts, I would be impressed. It took me 10, I believe it mine.My, David: what helps is my wife is she's like a, a, a really strong, she [00:59:00] didn't get her English major, but she got her psychology major, but she is one of her strengths if she could go back to school, would be to become an English major. So she's helping me make sure that that thing could be ready as soon as possible.So we're excited. And what's the De'Vannon: premise of the book or the, or David: it's, the premise is really to introduce this concept, this understanding of the root causes of why we stay stuck in certain behavior patterns. And it's really to shine insight on, it's not just that. There's a flaw in you or that you can't be healthy, you can't release weight.No, no, no. We all can. If we can really simplify it to the core principles that makes up this, which is really our choices and our behavior patterns, right? So we're really breaking this down into a very simple, digestible understanding for people to learn this, this side of of health, because I believe it's gonna really be groundbreaking for people to [01:00:00] start changing their choices that yet then changing their behavior patterns to become healthier.De'Vannon: Okay. I can't wait to have you back on the show to discuss that. So, before you talk about your near death experience, it just occurred to me, I'd like you to, to address some, some people may say, well the healthy foods only at places like Whole Foods, and I can't afford that shit. , you know, what, what would you say to people who may have like, budgetary concerns or believe that Great question.The healthy food is, is super expensive. David: Yeah. Great question. Great question. I believe we can all be healthy in any budget, right? Because we don't ha we don't have to eat all foods, we don't have to eat everything in a grocery store, right? There are core principles that if we can adopt and understand, we can make good food choices.And that starts with understanding, well, what is a lean protein? There's, there's four makeups, right? In the way we should be eating. There should be [01:01:00] some type of protein in every meal. There should be some type of fiber, right? There should be a small amount of carb, right? To give us energy. Our, our primary food, our primary energy source from our body comes from carbohydrates, right?And then there should be some sort of essential fat. That is the key essential fat, right? Not just fat of all, of any kind. Right. So it really, if we can simplify it and look at, okay, what lean, what protein can I get that is inexpensive right now? Prices have gone through the roof. Okay. Can we get canned chicken, right?Can we get tuna? Can we get things that are proteins that are fairly inexpensive? We don't have to have the high processed foods. When we're talking about carbohydrates, there's low glycemic carbohydrates, meaning they have some type of fibroid substance that allows it to be [01:02:00] slowly dispersed in our body to turn into sugar, right?We don't need the chips, we don't need the ramen noodles, we don't need the pasta. We can find a list of low glycemic foods. Carbohydrates that help us find good sustainable energy. Right. We got our brown rice, which is very inexpensive, right. There is couscous, which is also fairly inexpensive, right? We have whole grain foods that we can find that are fairly inexpensive vegetables.Oh, well I don't like vegetables. Okay, well why don't we start with one that you do like that we can eat, right? And then, like you said, is having a vegetable with every food choice, with every meal, as many as we can. Right? So it's, again, it's about the education piece. It's about the knowledge piece. Can I understand what good or healthy relationship with food is so that I can then start to implement it?Right? So it's find these three cores. [01:03:00] If we can have a protein in every meal, if we can have a carbohydrate that is a low glycemic carb with every food, and if I can have a vegetable. More than likely we're already cooking within essential fat anyways, like an olive oil or some type of, of avocado oil, which is a, a essential fat.That's really all we need. Hope that's helpful. De'Vannon: Very fucking helpful. So tell us about your near death experience and then that'll pretty much wrap us up. David: Fantastic. I'd love to. 2018, I went on a mission trip to Haiti. Went to go work with a lot of help and support kids, orphanages. We have a close friend who's out there who has a, a men's kids, young men's orphanage, and a w and a young girl's orphanage.So we went to support him in what he was doing. I got back five days later. I was rushed to the hospital, what seemed to be a cold, but I had very high fever, about 110, 109. They [01:04:00] couldn't take it down with anything. Two days in there I was misdiagnosed six times. They couldn't figure out what w what I had.The third day there, there was a doctor from Puerto Rico who happened to be there. He overheard a conversation. He comes in and he says, I know exactly what you have. You have dengue fever and two other tropical viruses, and you're gonna feel like you're gonna die and you just might because there's nothing else that we can do.It's up to your body if it wants to survive. And he walked out. So, to give you a kind of a, a of a picture of this, I was at my strongest and biggest in terms of physique in size. I was actually training to compete the following year in body building. So I was about 245 pounds. I had about 25% body fat, a lot of muscle on me.I was the biggest I'd ever been. And after telling me this, I wanted to die. What we know about the dengue fever is that it's called the bone [01:05:00] crushing virus. It literally breaks up your bones from the inside, and it starts to shut down and eat your organs from the inside, right? It eats the muscle fibers, the muscle tissues, everything from the inside.My left lungs shut down, my organs were starting to shut down. My kidneys were about to shut down. I was one step away from hemorrhage and I wanted to die. That was it. I didn't wanna fight anymore. And so I just stayed there, literally unconscious for 10 days. And on the 10th day, the doctor came in and he said, well, we've got good news for you.You've beat this ding. And he said, had it not been because you were so healthy and you had so much muscle on you, you would not be here today. There's no reason you should be alive. And I said, well, if it wasn't because I was healthy and I had that muscle mass and because of God, I wouldn't be here today, right.Based on my faith. And so that experience turned everything around for me because [01:06:00] after I got out of the hospital, there was like this little internal, small voice that said, now that you've been given a second chance of life, what are you gonna do with it? What are you gonna do about it? And I woke up, I was like, wait, what do you mean?I thought I'm doing my best. I thought I could be more. I, I, I thought I, I am doing a lot with my life. But that really brought me into the turning point of what I was doing with my business, right? I was only, like I said, working with very exclusive clients. And at that point it was like, well, I'm not doing enough to impact as many people as I can with what I know.And that's what really put together body by purpose. That's what changed my whole concept, my whole value of life, my whole appreciation to people. Because when I, I, I made a commitment with my best friend that as long as I knew of somebody, I wanted to help them avoid what my best friend went through.But I really wasn't holding myself to that fully right? And so that's why I say that this experience, near death experience was the best [01:07:00] thing that could have happened to me. It changed my perspective on life. It changed my perspective on so many things. And obviously I don't take life for granted ever, but also the way I live life has also changed for me.How, De'Vannon: how in the hell does somebody catch UE fever? Is that from, so did something bite you? Is it air, mosquito bite?Well, , I'm glad That's right. I'm glad that your body decided to just, you know, everything happens for a reason. Yeah. And and it seems like the, the lower, you know, God takes us knowing he's gonna pull us back up. It's like we're stronger. That's right. For it. Yeah. I was devastated when I got H I V and I thought I was gonna die and I had this whole nervous breakdown, but now I'm like, you know what?I'm glad everything happened the way it did because it refined me, you know? Very well said. Yeah. So many different ways. And so, yeah. Alright. Yeah. So his website is [01:08:00] David hernandez.co emotion. His other website is emotional eating support.com. They click through to each other, and I will put all of this in the show notes with David's social media.Yeah. Well do you have any closing words forDavid: you're incredible. I mean, if y if I can get you to understand that and what that really means, that I don't know what life situation you might be in. There is still a makeup and a creation inside of you that is far greater than
Manager Minute-brought to you by the VR Technical Assistance Center for Quality Management
In the studio, today is David D'Arcangelo, Commissioner of the Massachusetts Commission for the Blind. David has focused on making MCB the best it can be. Learn about the concept of disability as a qualification, the Accessibility Technology Survey, the entrepreneurial program developed with NIB, and dig into the 32 reallotment projects MCB has done over the past few years. David is the Idea Guy and shares a lot of information in this brief 30-minute conversation. Find out more about what is happening at MCB: MCB Home Page 2020 Reallotment Project Summary 2021 Reallotment Project Summary Listen Here Full Transcript {Music} Speaker1: Manager Minute brought to you by the VRTAC for Quality Management, Conversations powered by VR, one manager at a time, one minute at a time. Here is your host Carol Pankow. Carol: Well welcome to the Manager Minute. Joining me in the studio today is David D'Arcangelo, Commissioner of the Massachusetts Commission for the Blind. Thanks for joining me today, David. How are things going in Massachusetts? David: Going very well. Looking forward to a great 2023. And thanks for having me again. Carol: You bet. Me too. I love this 2023. I have my little resolutions for this year. You know, I really want to be intentional. That's one of my things. So I know I had you on the show over a year ago and we were talking about some of your great employment strategies during National Disability Employment Awareness Month. And you have had so many cool initiatives going on in your state that I think of you as the Idea Guy. I put you and Joe Xavier from California up there as two bold leaders in VR that we can all learn something from. Now, I know you've been keeping your head down and really looking forward focused on making your agency the very best it can be. And it also seemed like you were having some just really amazing employment successes for customers during COVID. So now more than ever, we need to take some serious steps to address the problem of spending VR dollars and improving outcomes. And you started looking at the problem when you first started at MCB and you hit the ground running. So let's dig in. I know we have lots to talk about. So David, can you remind our listeners about yourself? Where did you come from and how long have you been at MCB? David: Sure. Well, I'm a consumer of MCB also, and being legally blind from a young age. I remember getting VR services back when I was in junior high school and high school. So that's really my first impression with MCB was as a consumer, as a young man. But since joining MCB in 2018, I came over from the Office on Disability, where I was the director of the Massachusetts Office on Disability. So when the MCB position opened up and got an opportunity to serve. And, making great strides for these past five years and looking forward to hopefully more time to be able to get our people employed and help lead our people to more independence and self determination. Carol: That's awesome. So can you tell us a little bit about MCB? Like, how many staff do you guys have and how many customers are you serving currently? David: Sure. So we're one of the first blindness agencies in the country. We often argue with Connecticut, if they were first, we were first, but we were established in 1906 with one of our first commissioners being Helen Keller. So we have a long history and track record of providing services for people with blindness throughout Massachusetts. We currently serve approximately 24,000 people in Massachusetts with all types of services. Massachusetts is a little bit different than many of the other states. We don't provide just for VR services, and that's not to diminish VR services, but we also provide what we call our services or social rehabilitation services and deafblind extended support services. So we serve people who are blind and deafblind and people with blindness and then additional significant disabilities. So that adds up. Our 24,000 people and our range of blindness really is the whole spectrum. So everybody from hi partial and legally blind like me all the way to somebody who has no light perception at all. And we know from the data that we've collected that actually there's probably more people at MCB as consumers who have visions closer to me than vision, closer to somebody who has no light perception at all. So we've got some data that's going to be coming out that I would encourage everybody to look at. We did an assistive technology survey recently with all of our consumers that really reveals information that I think people will take notice of because many times people were thinking that, oh, well, your consumers, they can't see, so they're not on the Internet or they're not taking part with this technology. And our survey really sheds new light on that. So stay tuned for that. You can check that out on our website, Mass.gov/MCB. It's really going to be an important survey when we reveal these results. It's going to be eye opening for people. Carol: Well, cool. Yeah. Shoot me a note when that comes out. I'm really interested in seeing that. Do you also serve individuals like starting as babies? Like because some programs I know do that. We did not in Minnesota but I know some start very young with kids. David: Yeah in Massachusetts we serve people from birth to death. So cradle to grave with all of our services and the social rehabilitation services that we provide are really geared around independence and self determination. So we will start providing services as soon as somebody gets that mandatory report of legal blindness and they're declared, which we are the keeper of, that we register somebody as legally blind after their doctor, their eye care provider, has provided us with that record. And then we get the services flowing, whether it's teaching Braille or providing assistive technology, orientation and mobility, training, all of these core services, we really believe getting those in place first. Carol: Yeah David: That's really going to help in terms of VR. It's setting the bedrock so people are already independent and self determined and then can focus on their career goals. Carol: Yes. So smart. You've got the foundational pieces in place and early, you know, you're getting at the students early, which is incredible. That is great. That is great. So I really liked your getting grounded in that three part framework. You talk about it and I was reading it again on your website about the Path to Prosperity is Paved with Perseverance. Can you tell me more about that? David: Sure. Carol, thanks. Really. I first said that publicly during the commencement address that I gave for Lesley University's Threshold Program. Lesley University has a great program for people with intellectual disabilities where they provide a college like experience. And back in 2017, when I was director of the state's Office on Disability, I had the great opportunity to be able to provide the commencement address there. And that's really where I first laid out that I believe the path to prosperity is paved by perseverance. Or what does that mean? I think that becoming employed is not a one step thing. There are many steps on that path on your career journey. So we really try to instill in to our consumers here at MCB that there is no get rich quick scheme. This is not a one click approach like so many of us are conditioned today through these devices and through technology. Just one click in your in. Getting a career, getting employed, getting your job, getting on that path to prosperity takes many steps. You got to hang in there because it's not easy. If it was easy, it would be done easily and everybody would do it. Everybody would be a multimillionaire. It takes many steps and depending upon your disability or in mass commission for the blind on your blindness, there's such a spectrum. And really we have to work with everybody individually because everybody is in a different stage in life. And some people are aging into blindness. Some people, it comes upon them quickly. Some people have it from a young age, some people come to it at mid age. It's so different for everybody. And we really just want to make sure that people are clear what the expectations that we're going to be with them through their journey along this path and that it does take time. All good things come in time. So that's really what the path to prosperity is paved with. Perseverance is about that you've got to persevere. These are challenging things. The very essence of being a person with a disability. Disability comes with challenge, It does. And so we try to get people to accept their disability, accept that challenge and then help them work through it. And so I believe in people and I believe anybody can become employed. I think work matters. I think it goes to the identity of a person. If I were to see you in the grocery store and we would have strike up a conversation, invariably one of the first questions that you or I would ask each other is, Well, so what do you do? And if you're employed, you're going to tell me about your job because it goes to the identity, it goes to who you are and what you're accomplishing. So work matters. Our consumers matter, and that's why we want to try to get them employed, because there's so many contributions in our community that we're trying to bring out for the benefit of our consumers, but also for the benefit of society. I really believe that our people have a lot to give and you've got to hang in there. That's part of being on the path to prosperity. Carol: I think that is one of the cool things with blind services. It's very foundational. All the things that you have to learn. And I remember being at Minnesota blind and just seeing that, especially with people that came in that were new to their vision loss and it happened abruptly. Something happened, an illness or something overnight almost, and you wake up and you can't see and everything changes. How you read, how you get around in the world, how you get around in your home and your clothes and like how you do everything and having to learn all those foundational pieces first and getting that acceptance and then working on work skills because you can't just launch right into that when somebody goes, I don't even know if I'm wearing the orange socks with the black suit. I don't know what I have on. David: One of the initiatives we've been working on and we keep advancing is something that I came up with about ten years ago that I've been trying to encourage people in VR to embrace, and that is the concept of disability as a qualification. I really believe that the lived experience that our people have to learn to problem solve around is a qualification in and of itself. Let me give you an example. If I were to take somebody with good vision and ask them to cross a busy intersection, they probably wouldn't think twice of it. Right? Carol: Right. David: But to take one of our consumers who can't see and ask them to cross an intersection, the skills involved and the intestinal fortitude involved with crossing that intersection. You know what? I want that person on my team, if they're going to be able to go out and have the intestinal fortitude to be able to do that and then the demonstrated skill to be able to do it, because that takes sophistication, if that life experience does not qualify you for some type of role that deals with problem solving. How many employment opportunities are there out there for people who are good problem solvers, for people that have a solid backbone and won't just roll over? Right? Carol: Right. I love that you say that. David: Those are qualifications, those matter. Carol: They do matter. So I'm just going to say a little thing about me. When we were in Minnesota at the blind agency, all of the leadership team and the VR counselors, the staff, you had to go through six weeks of sleep shade training, so you were under sleep shades for six weeks. And so doing that as a new director myself, having that experience, it's just a taste, but we did go to one of our Adjustment to Blindness Training Centers. We had the experience of the classes all day under sleep shades. I still remember at the end of the day, walking out. I had my cane. I was still had my sleep shades on. I'd taken them off and I got in my car. I scared a lady that was across the street. She's like, That blind lady is driving now, but getting that very firsthand experience about that problem solving that goes into everything you do during the day that is so interesting and very applicable to the world of work, for sure. David: Yeah. So that's why we're pushing disability as a qualification. We believe that those lived experiences are going to help employers and a really good qualifications for employees. Carol: Yeah, that's very cool. Very interesting thought. So I want to take you back to 2020. You asked for reallotment dollars, but you had some very specific initiatives you wanted to accomplish and in fact, you were dealing with the pandemic and you wanted to figure out your role in pioneering a path forward in a post-COVID recovery. So talk to me about what went into that 2020 that ask for reallotment dollars and kind of how you framed up all of those initiatives. David: Sure. Well, we wanted to make the best use of our time knowing that we were not going to have the community interactions and be able to travel freely like we had been doing. So we said, let's study this and let's come up with some things now, some of the things we had put in motion, some of the plans that we had put in motion were prior to COVID. So it seemed that we were prescient on some of them, like our ad campaign we did, What's Your Vision? So now we've been on Massachusetts television with our announcements, not just public service announcements, but paid ads to be able to get the message out to employers, Hey, we've got candidates for you and get the message out to our consumers that, hey, we'll work with you to get on this path to employment. So there's campaigns like that. But then we followed it up. Once we knew COVID was in there and we did our Quest for Independence, which is a graphic novel which is aimed at not only the consumer, but people in the consumer's sphere of influence, their brothers, their sisters, their fathers and mothers and guidance counselors and people there so that those people can understand the path to employment that we lay out in the process that we do. So it starts at pre training and goes through all of the steps along the way and we make it like a questing journey. We made it like kind of cool and try to put it in a format that people of Pre-ETS age would be more apt to buy into. So many of the VR documents are black and white text only small print, like who's reading that? Who's consuming that? Certainly not a 15 or 18 year old person that we're trying to get interested in the workforce. So whether it's things like that or whether it's studying Disability as a Qualification that we just talked about or trying to do some of the other surveys that we put together, we really tried to make the best use of our time. I think in all total now we're up to 32 or 34 reallotment projects that we've done over the past three or four years. Carol: Oh my gosh! David: Yeah. We've really tried to make good use of our time and build the catalog of information. And all of this is available to VR people if they want to visit our website again, Mass.gov/MCB. All of the re allotment projects are out there. We have studies on the Built Environment in the Workplace. We have studies on Disability as a Qualification on Assistive Technology. So many different topics we have data on as well as these ad campaigns. We did one with Sleep Machine recently. We worked up 16 different types of consumers and interactions that it's not a one size fits all approach. We really got it into 16 different approaches, so it tries to suit all of the different demographic areas, and that's a VR approach that we took so many different projects that we encourage people to find out more on our website. Carol: I know you did a lot of data analysis. There were a lot of projects around different data analysis, so maybe talk about one or two of those and how you used that data to now kind of inform your programming or whatever you're doing now at the agency. David: Well, the assistive technology one is a perfect example like. When I came to MCB and I said, I want to do a survey, they kind of like chuckled and I'm like, Why do you want to do? And I said, Well, how many of our people have email or how many of them use the Internet? I remember distinctly without naming names, but some really veteran VR people saying, none of our people use the Internet Commissioner or they don't do this. Well, come to find out that 70% use it daily. That right there was like informing our programming because no longer was I going to allow this myth to be put forward that our people don't use the Internet. That's just not so. Now we've got to make sure that we're making these sites accessible. So a recent proposal that I've been working on is a registered apprenticeship program for our consumers who are blind. Who better to make these websites accessible than people who are already using screen reader technology? So we're trying to get two registered apprenticeships, one in making web pages accessible, and then the other for making other online things accessible apps and forms and documents online and things like in the electronic space. So we're working right now with the Department of Labor, but we're also seeking other states. You need five states to be able to make a cohort to do it. So if people are interested in joining our cohort, please contact us and let us know if you want to join in this registered apprenticeship program that we're going to be launching soon. Carol: That's super cool and very smart and needed. I mean, there's a lot of sites, a lot of websites in a lot of trouble because they are not accessible. I love that you did the Assistive Technology survey. I've thought for years, like the invention of Apple and the iPhone and all of that single handedly changed just information for people who are blind, visually impaired because that device is accessible and it was built-in. There's so many cool apps now and things out there that our folks are using now. I know you also contracted out for your comprehensive Statewide Needs Assessment and that that isn't necessarily new. A lot of states do that because it's much easier to contract with someone than do it yourself. But what was different about that particular assessment and how do you use the information that you got from that? David: Yeah, again, I think that was the one where we put it out there and the awarded bidder I think was the public consulting group. So they're a pretty big firm. They had worked in other states before. I think one of the things that they had worked in was like Indiana. And so we work with them. Obviously our sister agency, MRC, we wanted to make sure that we were kind of on the same page as well. So I think that helped and really it helped strengthen the things that we already knew we were doing well. They really came in and were able to look at that and say, Yeah, you know what, you should probably keep doing that. Did identify some areas and we've made some adjustments as well. And I think now in this post COVID world, we were prescient that we were trying to already get our people to be able to work remotely, whether it be our staff, who a significant amount of our staff are actually our consumers also, which were very prideful in that they'd been remote prior to COVID. And so now the trends in employment with less and less people in an office environment, we really were again, a little bit ahead of the curve in trying to predict that We think that's where the workforce is going. There's going to be more and more opportunities that are away from an office environment. So if you can work online effectively, that's just going to increase opportunities for our consumers. Carol: Oh, I agree 100%. So how has all of this helped your numbers? Like where are you at today? Do you feel like have things moved up or are you getting customers back? How about people getting into employment, all these different initiatives? Has it led to some success and outcomes? David: Yes, it has led to success and outcomes. Our numbers are up generally across the board. There's a couple of exceptions, but things we really like to talk about is the nature of the jobs that we're able to help our people navigate into. And just to be clear, we are very up front with our people. People like, get me a job, get me a job. We're very upfront with them and say, we can't get you a job. We can help you get you a job. We don't get anybody jobs. Our consumers get themselves jobs. We're there to help and build value and work within whether it be any of the networks that we develop with stakeholders or using the existing public systems or education, whatever the case may be. It's consumer driven, it's consumer informed, and it's consumer driven. We make that clear that really we're just a partner in this, and it's up to the consumer to be able to make the final decision. One of the things that I think is very successful is that there's more choice than ever before. I think our consumers were faced with maybe one opportunity, and if they didn't take it, it was like, all right, let's start all over again. Or, you know, now let's go on another six month search. Now our consumers are being presented with multiple offers, multiple opportunities. That's a really good sign. Another really good sign is the nature of the jobs that they're getting. We're now going past just the entry level job or the base job, and we're into more management. Some of our placements are six figure placements. These are consumers that many of them have been with us for a while, but some are fairly new. So like before, this is where I think our ad campaign is really helped us because consumers who maybe hadn't approach MCB before are now approaching MCB. So we're doing our best to reduce the stigma of what it means to join MCB. So many people before who were low vision, high, partial, legally blind... Carol: Yes... David: ...didn't really feel that they were. Well, I can see I'm not really blind. Well, if you're legally blind, then you're entitled to the services. And so people with existing track records of employment that they've been in the workforce for 20 years and now they've lost their vision. Before, many of them were just leaving. And then we would find out five years later, well, I left because I was depressed or I left because I couldn't do the job. Now we get to them more quickly and actually work with them and the employer to let them know, Hey, we're there for you. We're there to provide these reasonable accommodations. We're there to emphasize the great skills that you have. So many of these things can be remediated now with technology. So we're seeing six figure placements. We're seeing management level placements. These are all very encouraging signs. But again, they didn't just happen overnight. It's the culmination of all of these programs working together. And most importantly, let me just give a great shout out to our counselors, our VR counselors develop these relationships and work with these consumers. And really, they're part of the secret sauce here, sitting at their kitchen table with them and their families and letting them know that we're going to be there with them. I think that's irreplaceable. And you can create whatever program you want and fund it however you want. At the end of the day, that needs to happen. Without that, I don't think we'd be having the success that we're having. Carol: I love that. I know your PSA campaign was really clever because I had looked at the ads. Very cool. Are you still continuing to do that? Is that still going on? David: Yeah. So we're looking at another reallotment project to fund another ad buy. We're going to have a dialogue with RSA about it. I think we can show that we got results from it and if we can, I'm hoping that they'll say that that's a good use of the money. You know, right now we've gone through some change. We've had a significant aging of our MCB workforce. We've had retirements of people that have been at the agency for 40 years, 38 years, 39 years. So I think COVID really helped in a way where it gave people a pause to be able to adjust. And that's not only our consumers and our counselors, but really like the whole workforce. And as a result, many people are saying, you know what, it's now time I've put my time in and it's time to give it up to the next generation, which is good. But it's a challenge because now we spent a significant amount of time trying to backfill these positions and like something with orientation and mobility. I think one of our O & M people we got from California, another one from Michigan. So hunting around trying to find talent can be challenging and we're certainly not trying to raid other agencies or muscle other competition out because Massachusetts is the state where the cost of living is quite high. We want to make sure if we're getting people here, that they're positioned for long term success. So we've definitely been trying to navigate some of that, as I think many of my colleagues can probably resonate with on at their state level. Carol: Oh yeah, that is the hot topic of the day. The mass retirement and kind of exodus of people out of VR. I know when I was at Minnesota, this is, you know, ten years ago I walked in the door in HR hands me a list saying I think it was over 50% of the staff were eligible to retire in the next three years. I just went, what? And they did, you know, people did because people have been with the agency. They all started together. They'd been there 30, 40 years together. And they all went. And then that just got exacerbated by the pandemic. People going out the door for sure. If people are wanting to find your PSA information, is that also on your website still? David: It sure is. And it's on our YouTube channel as well. When I came to MCB, we had no social media. Now we've got Instagram and Facebook and Twitter and our own YouTube channel and all of these avenues that we've gotten such great input from our consumers and their families because, yeah, it's about serving the consumer, but it's also about serving their families because that's oftentimes the people that are working with the consumers just as much, if not more than our counselors. So it's about empowering the whole consumer. And what I mean, the whole consumer, I mean, it's their extended family. It's their spouse or their son or their daughter or their niece or their nephew. They're aunt, their uncle or their friend or neighbor. It takes a village. And we've had good success with that approach. Carol: Great. It absolutely does take a village. Can you give that website address one more time? David: Yeah, sure. It's. Mass.gov/MCB. So, its Mass dot gov. Forward slash m c b. Carol: Excellent! Yeah. Because I know you have a lot of really good stuff out on the website, so I know you are always thinking you don't ever stop. You're on to the next thing. So what's up on deck next for MCB? David: Yeah, I think we just need to continue to now emerge from the pandemic and continue to assimilate so many new staff that we've got. I mean, I think of our 130 staff, about 40 of them are new within the past couple of years. So there's a big assimilation going on, number one, but really making sure that our community feels safe to get back out there and independent and self determined, ready to go. That's job one. Is getting that adjustment to blindness, that acceptance of blindness, continuing to find new consumers to be able to provide the services to. Then once we do that, then at the tried and true, it's wash, rinse, repeat on what our counselors and what VR has established so well. It's mentoring and then interning and then interviewing and then getting a job and then staying upwardly mobile in that job and trying to move up into management or entrepreneurial. And one of the new things we're working on that we piloted last year successfully with National Industries for the Blind is this entrepreneurial program. We really believe that that is the future for many of our consumers that are interested in a small business opportunity, and that is establishing an e-commerce presence online where you own your own thing and you're really an entrepreneur at that point, selling products and services online through their accessible platform. For years, we tried to get our consumers interested in selling on Amazon or eBay or these other e commerce platforms. But the platform itself, the app, the technology itself was not accessible to screen readers working with the national industries of the blind and tremendous credit to them for investing a significant amount of their time and resources into making an e commerce platform that is accessible for screen reader technology. This is a huge opportunity for people with blindness who are interested in being their own business owner online in the e commerce space. Like I said, we piloted last year. We proved the proof of concept. We have another class now going in. I would encourage anybody who thinks they have a consumer interested in this space to contact national industries of the Blind. Mention the pilot with Massachusetts that we've done. They'll know what you're talking about and get your consumers enrolled because this really is the future and it's a great opportunity. Carol: Yeah, I thought that was a super smart idea when I was reading because that was one of your re allotment projects was to study it and to look at it and to figure that out so that can actually be a viable option for your customers. David: That's right. We didn't just rush in horns first. We studied it, we spent time, looked around, conferred with NIB, and NIB has done a great job. Like I said, they've really made a major investment here and using their Ability One shops that they've had, they have such a tremendous network of providers and vendors that many of the products, I think it's about half of the products are actually made by blind people also. So it's almost like a double win when you really get down to it. To be able to sell these products online. We're very optimistic about it. Good things start humbly and that's where we started. We started with the first class. I think we started with 12 people. Then it went to 6 because some people didn't have the screen reader skills necessary that you would need. Then from the 6,, 3 of them dropped out because they didn't want to own the lemonade stand. They just wanted to work the lemonade stand right there from the 3. It went to 2 and then 1 ended up actually seeing it all the way through and becoming profitable. So we've proved the proof of concept. We just now need more consumers. So if you've got consumers in your area, let's get them going. Carol: Well, it always starts with 1. You need one, you know, and then there's 2 and then there's 3 and it keeps moving up. That's great. At least it gives another opportunity. And it really is the gift that keeps on giving. You know, when you look at using those reeallotment dollars, it doesn't just benefit you. In Massachusetts, the work that you're doing can benefit the whole country. David: Yeah, I really think that, Carol. And if people again go to Mass.gov/MCB, look at the, again now, I think it's either up to 30 or 32 different real allotment projects that we've done. There's quite a bit of information in there from studies to these campaigns to the Quest for Independence guide that we did, all of these different things. they're there for everybody else to be able to use. If we've had success, you can just kind of repurpose it and have success in your area with it. Carol: Well, and your quest to independence. Guide You've been being very modest about it, but that is hilarious because it's a comic book and you're the superhero. In it. It is the coolest thing. I thought that was the most clever thing I had seen in that Pre-ETS space. David: Well, thanks, Carol. If it leads to one more employment, then we'll be pleased. Carol: Yeah, that's cool. So, David, I know there's a lot of new directors across the country like you were a few years ago. What kind of advice would you give them as they're wrestling with ways to effectively spend their funds? David: Yeah, it would really be, Don't just settle for what has been done previously. I've found the people at RSA to be very supportive, to be willing to listen, and just because it hasn't been done doesn't mean it can't be done. Find out what your consumers need and then figure out how to backtrack that to these federal dollars to be able to get them the resources that they need to be successful, whether it's a small business enterprise or Randolph Shepherd or they want to go to kind of a more traditional route of getting employed, whatever the case may be. There's a program that can be crafted to individualize everybody so that they feel like the job they're getting is the job for them, because that's what we want you to spend so much time getting somebody in the workforce. We want to make sure these people are staying in the workforce, staying gainfully employed, because again, we really believe that independence and self determination, that's the thing that you've got to get through so that people can long term stay viable on their own. Carol: Well, well said. Thanks so much for being on the show today. I've been a big fan of yours for a long time and I just really wanted to get your message out to our listeners and have folks look at your website and the very cool things you can do. I know there's a synopsis of all of your projects so people can get a really good sense of what you did and what you learned. I think it was brilliant, so I wish you the very best of luck in 2023 and thanks for joining me today. David: Carol, Thanks so much. You do such a great job. I appreciate you. Thanks for everybody for listening. And please contact us if we could be a support in any way. Carol: Thank you. {Music} Speaker1: Conversations powered by VR, one manager at a time, one minute at a time, brought to you by the VR TAC for Quality Management. Catch all of our podcast episodes by subscribing on Apple Podcasts, Google Podcasts or wherever you listen to podcasts. Thanks for listening!
David: I want to talk a little bit about the hospital, but I'm also curious about your life. So first, just tell me your name and what you do at Kijabe Hospital. Linette: My name is Linette. I'm a medical officer, general doctor at Kijabe. I work in the Internal Medicine department in general wards. When COVID was here in COVID ward – now it's respiratory center, and in ICU/HDU [Intensive Care Unit/High Dependency Unit] Unit. David: Why did you end up with adults? Linette: [Laughter]Well, I love internal medicine. Anything to do with Internal Medicine, I love it. Whether it's an adult or a baby. I just love it. I feel like it's easier and maybe it's easier because of where I went to school. . . Where I went to school there's a lot of lifestyle diseases, less infectious diseases. David: When you say lifestyle, what do you mean? Linette: Like hypertension, diabetes, things like that, which is most of internal medicine. And so, it was not like Kenya where you have infectious disease to think about. I feel like that was my foundation when I came for internship, I found this safe place, this comfortable place in internal medicine. So, it's like, oh, I know that. It's not new to me because I've seen it, and that just made me love it more and more because I felt like I know that and now I can build on that. I mean, it turns out you don't know anything. You don't know what you don't know! But it's fun to build on that one. Yeah. So [Internal Medicine] is my favorite one. And why adults? I'm very emotional when it comes to kids, and my pediatric rotation was full of a lot of tears. So, I was like, “No, I need to like, get myself together and be a doctor and look like a human. . .what? Hard-board or something. . .like nothing is touching me, I'm just okay.” But inside I'm all mushy. So, I feel like kids really remove that from me. And then adults are like, “okay, I can cry about this later, let's deal with it now.” But then kids, cry now! [Laughter] David: That's great. You did your you did your internship at Kijabe? Linette: Yes. Yes. David: Tell us about medical school. How in the world did you go to school where you went to school? Linette: I went to school in Russia, the Russian Federation. And it was just it was a miracle of sorts because I had no idea that I could go to school in Russia. In fact, I didn't even want to be a doctor until my last year of high school when I feel I felt the Lord telling me to be a doctor. And I was really against it for like a month. I spent a month arguing with God in my closet. Like, really? You really want me to do that? I've never wanted to do that. I want to be a lawyer. I want to be a scientist. I want to do research. I had all these other plans. David: Anything but medicine. Linette: Yeah, anything but medicine. Everyone wants to be a doctor, but who is going to take out the trash? Who's going to be the mechanic? Who's going to be the engineer? I don't want to be a doctor, everyone's going to be a doctor. It turns out not everyone became a doctor - I became the doctor! God has a sense of humor because the thing that I was fighting so hard not to do turned out to be the thing that I do the easiest. I went to med school and God make it made it so easy for me to learn and to understand the concepts. . .to understand physiology and how the body works and what drug goes with that. So, I was like, "Hey, man, it's good to follow what you feel God is saying to you." And boy, am I glad I did that. And then Russia. A friend of mine visited from Russia. I hadn't seen her for years. She was in second year [of medical school]. She told me Russia is good. David: She's Kenyan? Linette: She is Zambian. At that time, I was living in Botswana, that's where I grew up. So, my Zambian friend comes home for holiday and I'm like, "Hey, long time, I haven't seen you. It's been years. Where have you been?" She's like, "I've been in Russia." What are you doing? "I'm doing medicine." And I'm like, okay, that's amazing. I hadn't yet agreed with this whole plan to do medicine in my heart, but I thought, "This is a good like idea to look into Russia as a school option." I didn't want to stay in Botswana to do my university. So, I asked her questions, and she said that teachers are good, the groups are small when you study so the teachers can follow you very closely. And she said everything except that they don't speak English. [Laughter] And I feel like God literally blinded me to that because I asked every question except, "What language do they speak?" I mean, I know there is Russian, but surely, surely, they speak English, right? They're white! No, they don't. And I found that out when I landed in the country. [Laughter] So, I out of curiosity, I study Russian. I'm so excited. I'm going to Russia! And then, I land in Russia and it turns out I have survival skills now. I decided, "Well, I'm here, so I have to keep a positive mind about it and learn it as fast as possible so that life can get easier." And that's what I did. So, I learned it and life got really much easier. David: And so that was how long? Five years? Six years? Linette: Yes, six. David: And then. So, you're from Botswana. How did you get to Kenya? Linette: I'm from Kenya. David: Okay. Linette: I was born in Kenya. My parents are Kenyan, my dad is a civil engineer. When I was five, my dad applied for a job with the government of Botswana, and he got it. He moved to Botswana to look for greener pastures. Then the family followed him. So that's where we all grew up, me and my sisters, except for my youngest sister, who was like a bit young when they moved back to Kenya when I was in third year in Russia. When they moved back now, home became Kenya again. So, when I finished with Russia, I came home to Kenya. So now I had to learn a new language, Swahili [laughter] because, I know how to say hi, but everything else is a blur because I was five when we left. But because I had learned Russian, I was like, "This is nothing impossible. Surely it's just a language." And now I speak it fairly well. I can speak Swahili and no one knows I'm not really Kenyan, but when I speak English, they know because my accent is not Kenyan. David: Yeah, Botswana - that's like the usually the voice actors and people like on TV in America, like that's the pure like, classic African accent. So, like in Disney movies it's always a Botswana accent. David: And so, what were challenges? Did you have time off in between in between finishing medical school and starting internship? How did you end up at Kijabe? Linette: I had a whole year of nightmare. None of my papers were Kenyan, so I went through such a terrible time. I went to try and verify my degree and they said I had to verify my high school certificate. And then when I went to try and verify that, they said I had to verify the primary school certificate. And most of that was like, we need a physical letter from the governing body in Botswana. I have no family left there. How am I going to get like a real letter from them? But thank God for friends. I asked a couple of friends to help me, and they sacrificed time from their jobs to help me chase down that. It took a whole year from the time that I came back to the time that I started internship. And even after doing the whole verification thing, turns out you don't just do internship, you do pre-internship, which is like an internship, but then it doesn't count. And then you write board exams. So, I did that. And then just as I was about to ballot for a government place in the internship, a cousin of mine asked me, “have you tried Mission Hospitals?” She had worked for Mission Hospitals and she feels like they're great. Linette: I was like, "I've never thought of that. What's that?" She told me, "the last interview is next week, Monday, find a way there." So, I found a way there [laughter], showed up, did the Kijabe interview and I fell in love with Kijabe just from talking to the doctors on the panel. Dr. Arianna was on that panel that day. I was I was so in love with Kijabe. I was like, I'm done. I'm going to Kijabe! I didn't even interview the other two places. I'm going to Kijabe - I'm not going anywhere else. So, I went home all happy. I'm like, "I'm going to Kijabe, I'm going to Kijabe!" I don't know, that was just I was just so sure. I fell in love with this place before I came here. And since I came, I've not been able to leave since, like you think about going anywhere else and you're like, okay, so what's life going to be like there? Nope, I'll stick to this one. David: What particularly do you like about it? Linette: I love the compassion with which people approach medicine. I mean, there is science and there's evidence and there's all that. Anyone can get that anywhere, you know? But there's a human touch and aspect that you can't buy anywhere. You can't buy that. And then a lot of these doctors are Christians. . .and missionaries, they're here not because their homes are not comfortable, or their countries are not good. I mean, I've been a foreigner. I know it's home that's always best. It's very uncomfortable to be a foreigner sometimes, but the [missionaries] are here because they feel like their call to humanity is higher or greater than their comfort. I feel like because God told me to be a doctor, it's great to be around people who take medicine like a calling. There's also the evidence-based approach, you know. It's not quack medicine, it's not abracadabra. It's, "Okay, I read this paper and it says, 'This approach is better for this disease.'" And that's what we do. We do that because the best idea wins. The best idea is tested. It's tried. It's been through trials and studies and that idea wins. So, every protocol changes according to the idea, the evidence that has come up. The system of correction for mistakes, audit, is taken very seriously. Audit helps us change protocols, change our approach. It's one thing to say, "we will do" and then it's another thing to actually do. It's a culture that goes on from the highest doctor to the lowest staffer. Even a patient assistant adheres to the protocol. That's a cultural thing that you can't buy. If people's mentality is "I'm here to get my money and go," then they would never do that. But the fact that we say something in a meeting, and it actually happens - that's wonderful. David: Wow. That's awesome. I love it. So, internal medicine. . .What's good about it and what's hard about it? What do you love and what's the most challenging? Linette: Let me start with what's hard. What's hard is at least once or twice a week, there is this one patient, who, I'm like, "I have no idea what's going on here." And then, once in a while, there's this patient who everyone is like, "I have no idea what's going on." Really? That's mind boggling. But then that's also why it's great because every time you think you know, you don't know. You don't know what you don't know. But then, every time, you find out there's more to learn. I love that opportunity to grow. I like places where I can be put under pressure to grow. There's no bigger force or pressure than the feeling of "I don't know." Then there's this culture of mentorship that Kijabe has. I have awesome seniors who don't make me feel dumb for not knowing. So, when I don't know, there's always someone a phone call away who might know. And if they don't know, they're so honest. I love that they're so honest when they don't know. And they're always willing to offer advice on, "have you tried this, and have you tried that and how do you check this and that?" Then they teach you how they think so that you can be a proper mentee. I love that. That's what I love about internal medicine in Kijabe. I don't know about internal medicine in any other place, but here, it's like you're free to be dumb if you're dumb and we will help you get smart. David: I don't think that's a problem for you. You're very humble. Doctor Tony Nguyen is the head of internal medicine right now, and he was telling me that. . . Linette: He's my boss and he's awesome. David: Oh, that's great. He was talking about ventilated patients, that a lot of your patients are younger. Why do patients come to you? What are their issues? Linette: Well, our vented patients are younger, and most of that is because of our resource limited setting. Because of our resource limited setting, we can't afford to intubate everyone. So, our protocol favors a younger patient with less chronic disease going on. It's very sad that we have to make that decision, but we only have a very small amount of resources - in this case ventilators. David: So how many do you have that are working right now? Linette: We have five good vents. David: I think your definition of good is different from mine. Linette: Like, it keeps the patient alive. That's good enough. David: So, that's the distinction. There's actual good, because you have some good [ventilators] and others from 1953 and it's a small miracle. . . Linette: It's working. It's working. (laughter) David: But that makes me very nervous. Linette: It does. It does. But then we live by faith. I mean literally surviving on small miracles. So, there's two really, really good ventilators that have this nice screen. David: The GE ones? Linette: Yeah. They have all these screens that you can read. And then there's these [old] ones which are guessing some of the stuff in the background. David: It's totally manual, right? You have dials, you can adjust, but there's no waveform, there's no tidal volume, you're just. . . Linette: Guessing. There's nothing to see. It's just put in the settings that you want and hope and pray that that's it. Then if that doesn't work, you try something else and see if that works. And that's how we live. Imagine. David: Yeah, not that that's not good, but that's what I'm hoping we can improve on someday. Linette: If I have five solid ventilators, I think I can depend on. I mean, I think they can save five lives. David: And so, you're saying you can have protocols for younger people. What about - I don't know if you call it a dance or juggling - interactions between different departments work because? I mean, patients are surgical or medical somewhat, but there's a lot of overlap. Linette: Yes. It's a lot of teamwork that's required because a lot of patients in the ICU are surgical. But then if they're in the ICU, they're your patient [medical team]. They are surgical, but they're still yours. And that [relationship] needs a lot of communication between us, a lot of understanding, because sometimes we see with our eyes the medical stuff and they see with their eyes, the surgical stuff. And we don't see what they see, and they don't see what we see. So, every time we make decisions, it's important to like double back and ask them, "Okay, we want to do this. Is this going to affect what you are doing in any way? Is this going to harm the patient instead of help the patient?" Because sometimes you might do something and maybe cause bleeding or maybe it does something that we didn't intend to do, but the surgeon would have known that, and we didn't. So, it takes a lot of teamwork to survive a patient in ICU. Linette: Sometimes when we are admitting patients, we feel like this patient might need intubation and we might not be able to give them that resource, we try our best to refer them at the door before they even get to the point of deteriorating and needing the intubation. We just tell them, "Look, it's not looking good.” Usually, it's the family we are talking to because [the patient] is so badly off, and we tell them “It's not looking good. It's likely they're going to need intensive care. We don't have room, please go to another place.” Some of them refuse. Oh gosh, some of them refuse. They're like, “we don't have anywhere else to go.” Those are tough because they end up staying in Casualty forever. And then we end up like creating an Intensive Care Unit in Casualty because you can't just watch someone die. That's a hard thing. And then some of them die. That's the painful part because you're like, "If we had this, they wouldn't have died," but we don't. David: Do you have a sense of what it would take? I mean, we want to get we want to get some new ventilators. We want to get ten, maybe more, high dependency unit beds. What would it take to treat everybody you think we should be treating? Linette: Oh, my gosh. A lot of money! David: Well, not in the money sense, but how many HDU beds? How many ward beds? What would it take to do everything you would love to see us doing? Linette: That would be crazy, because, if I compare it to what other hospitals are actually achieving, they can have anywhere from 20 to 30 or 40 ICU beds and we have 5. So that's a huge dream for us. And then we have ten HDU (High Dependency Unit) beds. You can imagine if they have 20 ICU, they have like double that for HDU and we have only 10. So, it's going to take that much more muscle. Then the other issue is staffing, because we are so few in our department and a lot of our people are missionaries. It's wonderful because they are here to help, but then they can't always be here to help because they have their homes to go back to. So, we have a lot of visiting doctors who come in. Oh my gosh, when they come, we're like, oh, we can breathe a little bit, you know. We breathe for like a month. And then they go and then we're dying again. We have ECCCOs who are in ICU every week. David: What does that stand for? Linette: It's Emergency and Critical Care Clinical Officer. They are clinical officers who have a higher degree in critical care and emergencies. They're awesome. Awesome. They run the ICU very well. A whole ICU really depends on an ECCCO. If the ECCCO is good, they respond to the emergency quickly. They call the doctor quickly. And they a lot of times you get to [the patient], they're already intubated. They are so good. They respond to emergencies very, very quickly. So, there's always one just one in a whole week who does the day and then one in a whole week who does a night and then one in a whole week who does casualty. If we were to ever expand, I think more beds would be overwhelming for one ECCCO. And sometimes we have two because there's one and then a student. But then sometimes that could slow the [senior] one down because they're trying to do teaching, you know, like they're trying to show the other one. So that would take more doctors, more critical care nurses who by the way, are so awesome. David: And there's training, there's a lot of training going on. This is one of the things I look at. I think, "five beds." There's the patient side. There are more patients who need help. But then the training side, Oh my goodness. We have a critical care nursing program. We have the emergency and critical care clinical officer training program. Linette: Yes. David: And when I just look at it, I think we need to take care of more patients so they can, to use an exercise term, do more push-ups.The more patients they see, the better they will be coming out of school. Linette: It's much better for them. David: And then you're also taking the nurse anesthetists. They come through. Linette: On rotations, higher degree nurses doing their rotations and the anesthesia residents and surgical residents. David: Oh, and surgical. So that's part of their that's part of their residency? Linette: Yeah, there are a lot of learners, actually. Our teams are more than the patients by far. By far. David: That's at least 50 learners in a year. Linette: They could be more, because per week, it's crazy. The last time I was in the ICU, I had three ECCCO students and three KRNA's (Kenya Registered Nurse Anesthetists) and one more intern and two or critical care nurses. That's ten learners. And then if you're on the rotation, you have to teach the ICU curriculum for that week. David: So, you're doing that teaching? Linette: Yes. Yes. I teach. Right now, I took a break because I've been so busy with my family, but I teach physiology in the school. David: Oh, for the nursing students? Linette: For the clinical officers. Linette: I teach human physiology. David: Awesome. That is a lot. Linette: Yeah, it is. That's why I, like, put a pause on it, because I'm like, “Let me just have a baby first and then I can think about it.” David: Yeah, that's awesome. How old is your little one? Linette: He's turning one [year old] this week. David: So, you're entering a new phase, you're starting to sleep. And you're also starting to, realize, every second there's more trouble. Linette: He can get into. Yes, I'm battling chronic fatigue. He's such a handful. He's all over the place. And then he just discovered how to walk. So now it's like, "get everything out of the way." And just when you think you got everything out of the way, he discovers another one. David: What would it take to build a proper ICU? That will be a phase-three of the hospital master plan. This year there will be a new oxygen and facilities plant that they're calling an Energy Center. That will go It will be just outside of Wairegi [the men's ward]. That's part one. Part two is the new outpatient center. And then part three will be where outpatient currently is. They want to build a huge building that will be maternity, internal medicine, ICU. I think it'll take that [building] to get to 30 or 40 beds. But I'm hopeful that we can figure out how to do something substantially more in the near term. If we get equipment, it can roll where it needs to go. Knocking out walls and things like that are permanent, but equipment can follow the need. If it needs to go to Centennial [ward], it can go to Centennial. If it needs to go wherever, it can go wherever. So, I hope I hope we can do a substantial expansion this year. Because it's important and it needs to happen for you guys to be able to do what you're good at. Linette: Yeah. And now we have a renal unit, so we have, super-sick patients who we used to refer because we didn't have a renal unit. Now that we have an actual dialysis center in our hospital, we get called more and more into the unit because they code on the dialysis bench and we have to go there and resuscitate. That's an ICU patient. They cannot be anything less. If you resuscitate, and then you don't have a ventilator, you'll just be bagging and bagging and bagging and you're like, "okay, I'll be the vent for now." But then, "how long am I going to do this? Are we going to get an ambulance? Are we going to go to another hospital?" Most of them don't have the money to go to a hospital with an ICU. Kijabe is so friendly, in terms of ICU cost, on your pockets. So, you tell them about any other hospital in the family is like, "no, we can't afford that happen." David: Do you have to save ventilators? You have that dialysis situation. Do you have to reserve ventilators for surgical patients? Like if somebody knows something bad just came in, they're going to surgery. Linette: All the time. Yes. Every night I'm on call, I'm like, "how many ventilators do we have?" And the ECCCO tells me we have three vents. And then they're like, “the surgery team called ICU and they said that they're taking in a complicated case, and they want us to save a vent." So, if I get any emergencies overnight and I had four vents and I'm saving that one for the surgical patient. If I get any anything in casualty that needs an intubation, I can't accept. So, I have to refer. And that's terrible for those who come crashing because they crash, and our reflex is to intubate. We don't even think, we just intubate. And then suddenly somebody is bagging and we're like, "we don't have a vent." Sometimes we end up having to give away the vent we have reserved for an emergency, and that causes a whole chain reaction of problems because now the surgeon is angry at you because they saved the vent for the patient, and they've already cut. And you're like, "let's pray to God that you come out of anesthesia." Yeah, it's just a jumble, it's just a mess on those bad nights. And then sometimes we have to quickly extubate someone who we didn't plan to extubate today. Maybe we plan to extubate them tomorrow, and we're like, “maybe tomorrow they'll be able to get off the vent,” and then we're like, "Okay, you need to breathe for yourself now because we're coming off now." But you see, that's a problem because you're extubating prematurely and you're like, “fingers crossed, legs crossed, please breathe.” And then they breathe, and you say, "Thank you!" David: So how do you manage all this emotionally? Linette: That is just it's painful. It is very painful. Sometimes there is moral injury that comes with denying the vent to some patients because you're like, “if I had intubated, I am not 100% sure that you wouldn't have made it.” I'm just basing this decision on your co-morbidities or your other diseases and the fact that you have significant disease. There's this other [patient] with less significant disease and that you are likely to not make it. So that's a bit hard. David: What do you do with that? Like, how do you how do you process this? How do you not explode? Linette: Our culture in the ICU is when you have a really tough time, we debrief, we call the chaplain to come talk to us, or the palliative team. They're very good at counseling staff members about "What are you feeling about this? What are you feeling about having to extubate this one? What are you feeling about having to do this?" And everyone opens up their heart and says, "Well, I feel like crap, like this is terrible." And, well, I have a good husband at home and he's like a doctor now because I take all my stories to him. So, I just offload on him and he's a very good listener. So, I feel better because I have that at home. I have good support at home. David: I love that. Linette: Yeah. It's a tough journey, but it's also fun because we see people and its life changing. It's the difference between life and death for someone. So, our extubation days are really good. Like, "Yes, you did it, we saved one! And then 10 million more to go!” Always celebrate the small wins. David: I love that. Awesome. Thank you so much, Linette Linette: Thank you for having me. David: Appreciate, you're amazing. Linette: Thanks.
In a special Saturday edition of the Top Secrets podcast, David Blaise explains to co-host Jay McFarland why 100K per month in promo sales is not just doable, it's also a decent, worthy goal for promo distributors who aren't there yet. Comment below and let us know if you agree or disagree. David: Hi, and welcome to the podcast. In today's episode, cohost Jay McFarland and I will be discussing the significance of each $100,000 in promotional product sales. Welcome back, Jay. Jay: Hey, it's great to be back with you. David, and I really want to talk about this topic a little bit. I know you've put a lot of emphasis on that first hundred thousand dollars. What makes that so significant, so special? David: Well, that's a great question. I mean, it's the first hundred thousand dollars, it's every a hundred thousand dollars thereafter. And there's no real magic significance, I don't think. But if you bring in a thousand dollars sale or a $2,000 sale or a $5,000 sale -- and I'm talking in the promotional products industry primarily, because that's who this material was put together for -- it's helpful. It's good. It feels good to bring those sales in. But, ultimately that can be done in a day or a couple of days or a week. And I think sometimes it's just good to have sort of benchmarks that are out there a little bit. So generating a hundred thousand dollars in sales of promotional products for most people is an accomplishment. Whether that happens in the course of six months, or three months, or a month, or a week, or a day. It doesn't usually happen for most people in a day. The industry at large generally does about a quarter of a million dollars in annual sales. Most salespeople do roughly that on average in the industry. So each hundred thousand dollars is actually pretty significant. And I think that when you look at trying to make an impact and trying to generate the revenue that you need to be able to support the lifestyle that you'd like to become accustomed to, it's good to sort of stretch yourself a bit and to ask yourself. Okay. What am I doing to get to my next Hundred K in revenue or my first, if you're just getting started. Hitting that first hundred thousand is usually pretty significant for people. Jay: Yeah. I'm guessing most people remember that first hundred thousand. But I think you're right. You know, were they looking at that moment as benchmark? Were they saying " this is going to be significant and this is our plan on how we're going to reach it." Or was it kind of haphazard and what a great milestone, but what did they do ahead of time to get to that point? David: Yeah, and that's the question that each person has to ask themselves. What did I do to get me to this point? How long did it take to get there as well? I mean, there are some people who spend, and whether they start out part-time or whatever it is they're doing, some people spend six months or a year or a couple of years even before they hit six figures in gross sales. When you're doing that, you're not earning a lot of money. Some people start out and they're doing it part-time. They're doing it on the side. So if they generate a hundred grand in gross sales, it seems like a really significant accomplishment for them. But if you look at the amount of time that it took to get there, sometimes you have to say, okay, well could I have done that faster? And for people who really want to make their mark and want to be able to generate significant sales, I think that it's just a decent sort of benchmark to look at, to say, "okay, how long is it going to take me to get to my next a hundred thousand in gross sales? Is it going to take me a year? Is it going to take me six months? It's going to take me a quarter. Is it going to take me a month? How long will it take and how quickly could I do it again?" Because that will determine ultimately what your gross sales are going to be,
The paper's abstract reads: The failure of 27 wildland firefighters to follow orders to drop their heavy tools so they could move faster and outrun an exploding fire led to their death within sight of safe areas. Possible explanations for this puzzling behavior are developed using guidelines proposed by James D. Thompson, the first editor of the Administrative Science Quarterly. These explanations are then used to show that scholars of organizations are in analogous threatened positions, and they too seem to be keeping their heavy tools and falling behind. ASQ's 40th anniversary provides a pretext to reexamine this potentially dysfunctional tendency and to modify it by reaffirming an updated version of Thompson's original guidelines. The Mann Gulch fire was a wildfire in Montana where 15 smokejumpers approached the fire to begin fighting it, and unexpected high winds caused the fire to suddenly expand. This "blow-up" of the fire covered 3,000 acres (1,200 ha) in ten minutes, claiming the lives of 13 firefighters, including 12 of the smokejumpers. Only three of the smokejumpers survived. The South Canyon Fire was a 1994 wildfire that took the lives of 14 wildland firefighters on Storm King Mountain, near Glenwood Springs, Colorado, on July 6, 1994. It is often also referred to as the "Storm King" fire. Discussion Points:Some details of the Mann Gulch fire deaths due to refusal to drop their tools Weich lays out ten reasons why these firefighters may have refused to drop their tools:Couldn't hear the orderLack of explanation for order - unusual, counterintuitiveYou don't trust the leaderControl- if you lose your tools, lose capability, not a firefighterSkill at dropping tools - ie survivor who leaned a shovel against a tree instead of droppingSkill with replacement activity - it's an unfamiliar situationFailure - to drop your tools, as a firefighter, is to failSocial dynamics - why would I do it if others are notConsequences - if people believe it won't make a difference, they won't drop.These men should have been shown the difference it would makeIdentity- being a firefighter, without tools they are throwing away their identity. This was also shortly after WWII, where you are a coward if you throw away your weapons, and would be alienated from your groupThomson had four principles necessary for research in his publication: Administrative science should focus on relationships - you can't understand without structures and people and variables. Abstract concepts - not on single concrete ideas, but theories that apply to the fieldDevelopment of operational definitions that bridge concepts and raw experience - not vague fluffy things with confirmation bias - sadly, we still don't have all the definitions todayValue of the problem - what do they mean? What is the service researchers are trying to provide? How Weick applies these principles to the ten reasons, then looks at what it means for researchersWeick's list of ten- they are multiple, interdependent reasons – they can all be true at the same timeThompsons list of four, relating them to Weick's ten, in today's organizationsWhat are the heavy tools that we should get rid of? Weick links heaviest tools with identityDrew's thought - getting rid of risk assessments would let us move faster, but people won't drop them, relating to the ten reasons aboveTakeaways: 1) Emotional vs. cognitive (did I hear that, do I know what to do) emotional (trust, failure, etc.) in individuals and teams2) Understanding group dynamics/first person/others to follow - the pilot diversion story, Piper Alpha oil rig jumpers, first firefighter who drops tools. Next week is episode 100 - we've got a plan! Quotes:“Our attachment to our tools is not a simple, rational thing.” - Drew“It's really hard to recognize that you're well past that point where success is not an option at all.” - Drew“These firefighters were several years since they'd been in a really raging, high-risk fire situation…” - David“I encourage anyone to read Weick's papers, they're always well-written.” - David“Well, I think according to Weick, the moment you begin to think that dropping your tools is impossible and unthinkable, that might be the moment you actually have to start wondering why you're not dropping your tools.” - Drew“The heavier the tool is, the harder it is to drop.” - Drew Resources:Karl Weick - Drop Your Tools PaperThe Safety of Work PodcastThe Safety of Work on LinkedInFeedback@safetyofwork
Anybody who's been in sales has probably been in a situation where you've been in a room with someone and you're looking at them and you're having a conversation with them. And they're looking around the room. They're looking at things. People are buzzing them on the phone. They're like, "excuse me." They're taking the call and you're sitting there and you're thinking, "why am I here? Why am I doing this?" So other people's focus or lack of focus will give you a really good idea of where you stand with them. David: Hello, and welcome to the podcast. We are back once again. Jay McFarland, and I will be discussing, maintaining focus in your day. Welcome back, Jay. Jay: It's so good to be here, David. And I know that focus is something that everybody's working on. One of the reasons I know this is all of the technology companies are building focus tools into their devices. We must be wanting this because I can now tell my phone, no I'm focused on this and it gives me different screens for that particular time so that I can be focused in on this. So we must all want to be able to focus better. And the question is, how do we achieve that? David: Yeah. Especially when there are other technology companies that are trying to get you to focus on them. Right? You gave a great example. I noticed that too, on my phone, there's the new focus button. And I like that idea, but in the meantime, nearly every social media platform is designed to steal your focus, to derail you from what it is that you wanted to do today in favor of what they would like to have you do today, which is to scroll, scroll, scroll, scroll, and then scroll some more. So we do have technology that is working for us, and we have technology that is working against us. But last time when we were talking about the idea of building proactively, I think these things tie together. As we're building proactively, we recognize that it does require day-to-day focus. And so in order to do that, we have to say, okay, how are we going to make it happen? Particularly with all sorts of forces, potentially conspiring against us. Jay: Yeah. I love that point, that on the one hand tech is trying to help us focus, and then everything else in the world, I'm like, "squirrel!" You know, squirrel there's something new and it's not just social media who's trying to distract you. It's the employees who want your time, the customers who call up because they don't know your schedule. They just know they have a question, right? So they're calling you. So how do you go about building some semblance of focus throughout your day with all of these distractions that are coming in constantly? David: Well, from my standpoint, I think we need to decide at the beginning of the day, as early as possible, what really needs to happen today? Because that'll help us to determine where our focus needs to be. What is it that actually has to get done? What has to happen? What do you have to do versus what do other people in your organization have to do? So if you own the organization, you're going to have to determine what you're doing and what they need to be focused on. And how are you going to avoid distraction? Lots of people have, or had, open door policies when people were working together. Do I have my door open? Do I have my door closed? I liked the idea of having an open-door policy. So for many years in my business, I did. But unfortunately, that sometimes programs people to think, okay, door's open! I'm constantly available. So you really need to balance that and make determinations as far as how much of your time during a given day is going to be dedicated to focus time. The work that you have to get done in a specific timeframe, in a specific way, without distraction. And then adapt or create an environment that allows you to do that. Jay: Yeah. I have a funny story. I went to a company, it was a brand new company.
All of the things that we're talking about, go to the idea of building your business proactively. From the standpoint of a business owner, how am I going to do this in a way that will actually work? From the standpoint of an employee, how can I get that stuff done? It requires coordination. But more than anything else, I think it requires this proactivity that we're talking about. David: Hi and welcome to the podcast. In today's episode, cohost Jay McFarland and I will be discussing the idea of building your business proactively. Jay, great to see you. Jay: Thank you so much. So glad to be here as always, David. And I love this word, proactive. I know a lot of small business owners and I wouldn't say they're proactive. I would use the word haphazard. David: Ooh. Jay: Things just kind of happen. They're lucky because they get referrals or things like that. But there's not really any structure or proactivity to how they grow their business. David: Yeah. And I would love to say, "well, I started out being proactive." But I really didn't. And that's why I particularly enjoy this topic. So often when I'm doing presentations for live groups, this comes up. Because so many people feel like they're constantly having to react and deal with the day-to-day, I've got clients calling. I've got employees knocking on my door. And when you are reacting all day, it really leaves you in a difficult situation when you are actually trying to build a business proactively. So that's why I think it's a great topic to discuss. Jay: Yeah, I totally agree with you. When you're in your reactive mind you're, just not in a good place. You're going to be responding quickly, not giving time to actually think about what you're doing. If you're doing sales, it's going to put your sales at risk. If you're working with your coworkers, it might turn out to be something you're apologizing for later. Reacting is just not the way to go. I've always been taught you can act or you can react. And you want to focus on acting, because that's purposeful, and that's more the person that you want to be. David: Yeah, I think it was Steven Covey in one of the Seven Habits materials that he put out where he was talking about the difference between responding and reacting. Subtle nuance there as well. But I think when we talk about proactive, it's a completely different discussion. Jay: Yeah, I totally agree. So here I am. I've got this business, like you said, phone calls coming in. I got employees knocking on the door. I'm trying to have meetings. How do I go about this? What are some of the first steps to get to where I'm acting instead of reacting? David: Well, I think one of the first things is allocating time, creating time setting aside time. I'm not going to say finding time because no one ever finds time to do things. But creating the time, allocating the time to really think about what you want to have happen in your business. What type of clients you want to attract. What size customers you're looking for. How many you're looking for. What industries? All those types of things. Because, when we are being reactive, none of that comes into play. It's basically whoever stumbles through the door, whoever can fog a mirror. And if you want to build a business like we're describing, you can no longer just settle for that. Jay: Yeah. Are you a fan of time blocking? Like looking at your calendar the next day and blocking out like this hour is going to be for sales calls. This hour is going to be for training or whatever. David: I think it can be very helpful, but I wouldn't say that it's always completely effective. I think it's a great idea when you can pull it off, recognizing that life interferes sometimes. And so, yeah, I think it's good to have parameters in place to say, "this is the time I have allocated to this." And of course, if something comes along to disrupt it you've got to have a backup. "Okay,
Langley Vale Wood is a really special place. Created as part of the Trust's First World War Centenary Woods project, it's a natural living legacy for the fallen that symbolises peace and hope. Memorials offer space to remember in an evocative and moving tribute. As well as these important reflections on the past, the site has a bright future. Previously an arable farm that became non-viable, nature is now thriving, with butterfly, bird and rare plant numbers all up. Join site manager Guy Kent and volunteer David Hatcher to explore the ‘Regiment of Trees', the ‘Witness' memorial and Jutland Wood. Discover too how the site is being transformed into a peaceful oasis for people and nature and why some of these fields are internationally important. Don't forget to rate us and subscribe! Learn more about the Woodland Trust at woodlandtrust.org.uk Transcript Voiceover: You are listening to Woodland Walks, a podcast for the Woodland Trust, presented by Adam Shaw. We protect and plant trees for people to enjoy, to fight climate change and to help wildlife thrive. Adam: Hello! I've got to start by telling you this. I have driven to Langley Vale today and I've been driving through suburban London, really not very much aware of my surroundings, and you come up this hill and suddenly everything falls away and you burst out onto the top of the hill and it's all sky and Epsom Downs. And the racecourse is just ahead of you! And it dramatically changes. So, it's quite, it's quite an entrance into the Langley Vale forest area. I've come to meet, well, a couple of people here. I've drawn up next to a farm, I don't really know where they are, but it gives me a moment to tell you a little bit about the Langley Vale project which is amazing. It's a lovely thought behind it, because it is about honouring those who died in the First World War, and of course, there are many ways in which we honour and remember the people whose lives were changed forever during that global conflict. There are war memorials, headstones, poetry and paintings – and those man-made accolades – they capture all the names, the dates, the emotions and the places. And of course, they are vital in recording and recounting the difficult and very harrowing experiences from that conflict. But, what this venture, I think, wanted to achieve with its First World War Centenary Woods Project was a natural, living legacy for the fallen. Flourishing places that symbolise peace and hope, as well as remembering and marking the dreadful events of war, but doing that in the shape of nature and hope for the future. Both now and for many, many generations to come, providing havens for wildlife and for people – and I'm one of those people – and so it's a great project, it's in its very early stages, but it's a great opportunity, I think, to have a look around today. So, oh! There's two people wandering down the road there in shorts, I think they're hikers, I don't think they are who I am seeing. [Pause] Adam: So, Guy you're the site manager here, just tell me a little bit about the site. Guy: So, we are on the North Downs here in Surrey. It's a huge ridge of chalk that runs along southern England and down through Kent, it pops under the channel and pops up again in France. And this chalk ridge has got very special habitats on it in terms of woodland, chalk grassland, and we're very thrilled here that we've been able to buy, in 2014, a formerly intensively managed arable farm that was actually not very productive. The soils are very thin here on the hills the chalk with flints, so, pretty poor for growing crops, and we were very lucky to buy it as part of our First World War Centenary Woods project as England's Centenary Wood. Adam: So, tell me a bit about the Centenary Woods part of this. Guy: So, the idea of the project was to put a new woodland in each country of the United Kingdom, that being Northern Ireland, Wales, Scotland and England. This is the England site, and it is the largest of the four sites. We've actually planted 170,000 trees here. We did go through a full Environmental Impact Assessment and this enabled us to find out where we could plant trees because there are some special habitats here, and there is a national character to the North Downs – national character being that much of the woodland is planted on the high ground and much of the lower land is actually open space, be that for arable use or pasture. Adam: This is a Centenary Wood, so, is this just an ordinary woodland planted in the name of those who died during the First World War? Guy: Yes. The difference is… one of the reasons this site was selected was because we do actually have history here from the First World War. We've got a number of memorials that I hope to show you today. One of which commemorates a day in January 1915. Lord Kitchener inspected 20,000 troops here that had gathered and recently joined, taking up the call to join his new army. So, there were many sorts of civilians here in civilian clothing. They got up at 4am in the morning, I'm told, to all assemble here for him arriving at 10am with his equivalent French minister, and they inspected the troops for a very short period of time because they had other troops to go and inspect nearby. But many of those 20,000 actually then ended up going over, obviously, over to the frontline and many were not to return. Adam: Shall we have a walk down? And what is there then to commemorate that? Are there, are these just trees planted in memory of that occasion, or have you got a sort of statue or something? Guy: Yeah, well, the Regiment of Trees as we're just about to see, as you go around the corner… An artist, we commissioned an artist called Patrick Walls who has actually created some statues for us replicating that event. So, we have men standing to attention carved out of sandstone… Adam: Wow, yes. Just turning around the corner here and you can see this, yes, individual soldiers standing proud of a field of, actually, white daisies just emerging made from that sandstone you say? Guy: Yes sandstone. Adam: Sandstone soldiers. We are just walking up to them now, but behind that is all, I mean, I'm assuming this is a statue, but a statue made of trees. Guy: Indeed, what you're looking at there Adam is a memorial that we've called Witness. It's actually created by an artist called John Merrill and it is made up of parts of oak trees that have been assembled and it's inspired by the World War One painter Paul Nash, who was a cubist artist, and a particular painting of his called ‘Trees on the Downs' and that's inspired by that. And we're very lucky to have included within the memorial part of an oak out of Wilfred Owen's garden. Adam: Wow! Guy: Yeah so it's constructed to look like trees that have been obliterated, effectively, on the frontline, very evocative. Adam: Yes, you get very evocative pictures of a single tree either, you know, scarred black or sometimes actually still alive in a field of chaos. Guy: That's right yeah. And that's kind of trying to illustrate that in our memorial here, and what you can do, the public can actually walk through it. We've got a couple of benches within it, actually, where people can sit and contemplate, and actually written on the inside of some of these beams that go up are actually excerpts from poems from First World War poets. Adam: So, this first statue we're actually standing by it's sort of transformed in the flow of the statue – so it comes out of the ground as a sort of textured rock and as you go up 5 foot, 6 foot the statue also transforms into a man, but this man is wearing a suit and flat cap, so is a civilian. Guy: Indeed, and that's kind of trying to illustrate the fact that many of them are just joined up and a number of them haven't even got their uniform yet. Adam: So, let's move on, ahead of us, there's this sort of city gent on the left but looks a bit grander, but on the right, there are obviously… these look like officers. Guy: Yeah, the best, how I can best describe this is, that we've actually got 12 statues here and they're actually sitting among standard trees that were planted. So, we've got birch here, we've got beech, we've got whitebeam and we've got maple. But, these statues, the twelve of them, are in four lines. The guys at the back have only just joined up and they haven't had their uniform yet. And what the artist wanted to illustrate was the fact that all classes joined up at the same time. So, we have a working-class guy with his flat cap down the end there, we have our middle-class guy here with his hat on, and then we have the upper classes as well – it's meant to illustrate that everybody was in it together and joined in. Adam: I thought this was an officer, but I can see from his insignia he's a corporal. Guy: Indeed, and if you look at the statues Adam, as we go nearer the front to where Kitchener would have inspected, they all put the guys at the front who had all their webbing, all their uniform already, and as we move back through the lines it was less and less uniform and equipment. Adam: It's very evocative, I have to say, it's much more emotional than I thought it would be. Shall we go over to the sculpture? Guy: Yes let's. Adam: So, this is called ‘Witness'. Guy: So, this is ‘Witness' yes, and this is… John Merrill created this, he's got a yard in Wales where he works wood of this size. As you can see, it's quite a structure. Adam: So, yes as you say this size… So, I'm very bad at judging, six… I am trying to think, how many six-foot men could you fit under here? Six, twelve, I dunno thirty foot high? Was that fair? Guy: I tend to work in metres, I don't know about you, but I'm going to say about six metres at its highest point. Adam: So, it's made of, sort of, coming into it… it's… actually, it's quite cathedral-like inside. Small but is that a fair description? Guy: Yeah, I think so. Adam: *inaudible* Now, every second tree here has a line of First World War poetry etched into it rather beautifully. Do you want to read just a couple out for us? Guy: Yes… so here we have one saying: “And lying in sheer I look round at the corpses of the larches. Whom they slew to make pit-props.” [editor: Afterwards by Margaret Postgate Cole]. “At evening the autumn woodlands ring with deadly weapons. Over the golden plains and lakes…” [editor: Grodek by Georg Trakl]. Adam: Amazing, it's an amazing place. There are a couple of benches here and these are… Guy: These are the names of the poets. So, we have W Owen here, we have E Thomas, J W Streets, M P Cole, amongst others. Adam: Very moving, very moving. Okay, well it's a big site isn't it, a big site. So, where are we going to go to next? Guy: Well, we can walk through now Adam, we can see a new community orchard that we planted in 2017. Adam: So, we've come into, well a big part of, well there are a huge number of trees here. So, is this the main planting area? Guy: Yes, this is the main planting area. There are approximately 40,000 trees in here. Adam: We're quite near a lot of urban areas, but here they've all disappeared, and well, the field goes down and dips up again. Is that all Woodland Trust forest? Guy: That's right, what you can see ahead of us there is actually the first planting that we did on this site in 2014, on that hillside beyond. Adam: 2014? So, eight, eight… Guy: Eight years old. Adam: [laughs] Thank you, yes mental maths took me a moment. So, the reason I was doing that, is that they look like proper trees for only eight years old. Guy: It just shows you that obviously, you think that when we're planting all these trees now – that none of us will perhaps be here long enough to enjoy them when they're mature trees, but I think you can see from just by looking over there that that woodland is eight years old and it's very much started to look like a woodland. Adam: Very much so, well, brilliant. Well, very aptly I can see, starting to see poppies emerging in the fields amongst the trees. They do have this sort of sense of gravestones, in a way, don't they? They're sort of standing there in regimented rows amongst the poppy fields. So, where to now? Guy: So, we'll go to Jutland Wood, which is our memorial to the Battle of Jutland. Adam: The famous sea battle Guy: Yes, it was the largest battle of the First World War which raged over two days, the 31st of May to the 1st of June 1916. We're going to meet our volunteer, lead volunteer, David Hatcher now, who's been working with us on the site for a number of years, and he's going to tell you about this memorial that we've got to the Battle of Jutland. Adam: Right, I mean, here it's, it's different because there are these rather nice, actually, sculpted wooden stands. What are these? Guy: Yeah, these are… actually commemorate… we've got what we call naval oaks. So, we've got a standard oak planted for each of the ships that were lost in that particular battle and we've also, between them, we've got these port holes that have been made by an artist called Andrew Lapthorn, and if I can describe those to you, they are sort of a nice piece, monolith of wood with a porthole in the middle of…, a glass porthole, that indicates how many lives were lost and it has the name of the ship. Adam: So, this is HMS Sparrowhawk where six lives were lost, 84 survivors, but HMS Fortune next door, 67 lives lost, only ten survivors, and it just goes on all the way through. Guy: As you walk through the feature Adam, the actual lives lost gets a bit more, bigger and bigger, and by the end it's… there were very few survivors on some of the ships that went down, and they are illustrated on these nice portholes that commemorate that. Adam: And this is all from the Battle of Jutland? Guy: Battle of Jutland this is yeah. Adam: And just at the end here HMS Queen Mary, 1,266 lives lost, only 20 survivors from 1913. Very, very difficult. [Walking] Guy: This memorial, actually illustrates…, is by a lady called Christine Charlesworth, and what we have here is a metal representation of a sailor from 1916 in his uniform. And that faces the woodland here, where you can see ancient semi natural woodland that would have been here in 1916. So, this sailor is looking to the past and our ancient woodland. If we look to the other side of the sailor, we have a sailor from 2016 in his uniform and he's looking in the opposite direction, and he's looking at our newly planted trees – looking to the future. Adam: Let's walk through here, and at the end of this rather… I mean it is very elegantly done but obviously sombre. But, at the end here we're going to meet David who's your lead volunteer. So, David, so you're the lead volunteer for this site? And, I know that's, must be quite a responsibility because this is quite a site! David: That's very flattering - I'm a lead volunteer - I have lots of brilliant colleagues. Adam: Really? So, how many of you are there here? David: About seven lead volunteers, there are about one hundred volunteers on the list. Adam: And what do you actually do here? David: Ah well it's a whole range of different things. As you know this was an intensively farmed arable site. And there were lots of things like old fences and other debris. It was also used as a shooting estate, so there were things left over from feeding pheasants and what have you. Adam: Right. David: A lot of rubbish that all had to be cleared because it's open access land from the Woodland Trust, and we don't want dogs running into barbed wire fences and things like that. Adam: And it's different from, well I think, almost any other wood. It has this reflection of World War One in it. What does that mean to you? David: Well, it actually means a lot to me personally, because I was the first chairman of the Veteran's Gateway. So, I had a connection with the military, and it was brilliant for me to be able to come and do something practical, rather than just sitting at a desk, to honour our veterans. Adam: And do you notice that people bring their families here who have had grandfathers or great grandfathers who died in World War One? David: Yes, they do and in particular we have a memorial trail in November, every year, and there's a wreath where you can pick up a little tag and write a name on it and pin it to this wreath, and that honours one of your relatives or a friend, or somebody like that, and families come, and children love writing the names of their grandpa on and sticking it to the wreath. Adam: And do you have a family connection here at all? David: My father actually served in the, sorry, actually my grandfather served at the Battle of Jutland. Adam: Wow and what did he do there? David: He was a chief petty officer on a battleship, and he survived I am happy to say, and perhaps I would never have been here had he not, and all of my family – my father, my mother, both my grandfathers were all in the military. Adam: And do you remember him talking to you about the Battle of Jutland? David: He didn't, but what he did have was, he had a ceremonial sword which I loved, I loved playing with his ceremonial sword. Adam: Gotcha. And you are still here to tell the tale! [Laughter] David: And so are all my relatives! [Laughter] Adam: Yes, please don't play with ceremonial swords! [Laughter] That's amazing. Of course, a lot of people don't talk about those times. David: No. Adam: Because it's too traumatic, you know… as we've seen how many people died here. David: Yes. Adam: Well look, it's a relatively new woodland and we're just amongst, here in this bit, which commemorates Jutland, the trees are really only, some of them, poking above their really protective tubes. But what sort of changes have you seen in the last seven, eight odd years or so since it's been planted? David: It's changed enormously. It's quite extraordinary to see how some trees have really come on very well indeed, but also a lot of wildflowers have been sown. We have to be very careful about which we sow and where because it's also a very valuable natural wildflower site, so we don't want them getting mixed up. Adam: So, what's your favourite part of the site then? David: Ah well my favourite part…, I'm an amateur naturalist, so there's the sort of dark and gloomy things that are very like ancient woodland. We call them ancient semi-natural woodland. So there is Great Hurst Wood which is one of the ancient woodlands. Adam: Here on this site? David: Yes, on this site. It's just over there, but we have another couple of areas that are really ancient semi-natural woodland, but actually, I love it all. There's something for everybody: there's the skylarks that we can hear at the moment; the arable fields with very rare plants in; the very rare fungi in the woods. Actually, that line of trees that you can see behind you is something called the Sheep Walk, and the Sheep Walk is so-called because they used to drive sheep from all the way from Kent to markets in the west of the county, and they've always had that shelterbelt there – it's very narrow – so they've always had it there to protect the sheep from the sun, or the weather, or whatever. And it's the most natural bit of ancient woodland that there is, even though it's so narrow and it's fascinating what you can find under there. Adam: And I saw you brought some binoculars with you today. So, I mean, what about sort of the birds and other animals that presumably have flourished since this was planted? David: It's getting a lot better. The Woodland Trust has a general no chemicals and fertiliser policy and so as the soil returns to its natural state then other things that were here before, sometimes resting in the soil, are beginning to come up. We, I think, we surveyed maybe 20 species of butterflies in the first year… there are now over… 32! And there are only 56 different species over the country, so we have a jolly good proportion! We have two Red List birds at least here – skylarks and lapwings nesting. It's all getting better; it's getting a lot better under new management. Adam: [chuckle] Fantastic! Well, it's a real, a real joy to be here today. Er so, we're here in the Jutland woodland. Where, where are we going to next do you think? Where's the best place…? David: We're going to have a look at one of the wonderful poppy fields. Adam: Right. David: Because the poppies come up just as they did in Flanders every summer and it's, it really is a sight to behold. Adam: And is this peak poppy season? David: It's just passed… Adam: Just passed. David: So, we hope they are still there and haven't been blown away. Adam: It would be typical if I have got here and all the poppies have gone. Forget it, alright, let's go up there. So, well this is quite something! So, we've turned into this other field, and it is a field, well never in my life have I seen so many poppies! Mainly red poppies, but then there are…, what are these amongst them? Guy: Yeah. So, what you can see is a number of species of poppies here. The main one you can see, it's the red Flanders poppy. Adam: And is this natural or planted because of the First World War reference? Guy: No, it's mostly…, we did supplement this with some…, we've actually planted some of these poppy seeds, but most of them are natural and it's a direct result of the fact that we continue to cultivate the land. One of the most important conservation features we have here on site is rare arable plants. Bizarrely, these plants were once called arable weeds, but when intensification of farming began in the mid-20th century, the timing of ploughing was changed, the introduction of herbicides, all these things meant that these so-called arable weeds actually became quite rare and they were just hanging on to the edges of fields. What we've been able to do here is to continue to cultivate the land sympathetically for these plants and we now have much, much better arable plant assemblages here. We have rare arable plants here now, that mean that some of these fields are of national importance and a couple of them are of international importance, but a by-product of cultivating the land every year for these is that we get displays of poppies like this every year. Adam: And when you cultivate, you're talking about cultivating the land, you're planting these poppies, or what does that mean? Guy: No, it's almost like replicating the fact…, it's as if we're going to plant a crop, so we actually plough the field and then we roll it as if we're going to prepare a crop. Adam: But you don't actually plant a crop. Guy: No, no exactly. And then we leave it fallow and then naturally these arable plants tend to actually populate these fields. Poppies are incredibly nectar-rich, they're actually quite short-lived… Some of you may know poppies that grow in your garden, and they could be out in bloom one day and completely blown off their petals the next day. They don't, like, last very long, but they do pack a powerful punch for nectar, so definitely invertebrates… Because we don't use chemicals here anymore which would have been used constantly on this farm – and what that means is that many of these arable plants, they require low fertility otherwise they get out-competed by all the things you'd expect like nettles, docks and thistles. So as the land improves so will hopefully arable plant assemblages making them even more impressive than they already are. Adam: But actually, as the, as the soil improves isn't that a problem for things like poppies ‘cause they'll get out-competed by other plants which thrive better? Guy: It's a fair point, but what is actually crucial – is that to actually increase biodiversity in these fields it actually requires low nutrients. In terms of a lot of these fields, as well, we have, from years of chemical application, we have a lot of potassium, we have a lot of magnesium in them, and they have a lot of phosphorus too now. Magnesium and potassium tend to leach out of the soil so they will improve naturally, phosphorus tends to bind the soil and sticks around for a long time. So, we're trying to get these chemicals down to acceptable levels to make them more attractive for rare plants and therefore increasing biodiversity. Adam: Well, it is, it is like a painting and I'm going to take a photo and put it on my Twitter feed. I just, [gasp] so if anyone wants to see that, head over there. But it is beautiful, properly beautiful. I mean, so we were walking by this extraordinary painting of a poppy field to our right. It's a site which has been revolutionised because it was all arable farming less than a decade ago. What has that done for biodiversity here? Guy: Well, as we can imagine these fields, it's quite difficult to imagine them as we walk through them now, but these would have all been bare fields that were basically in crop production and there's clearly been an explosion of invertebrate activity here. We've got increasing butterfly species every year, our bird numbers are starting to go up, but also importantly we've got certain areas where habitats are being allowed to develop. So, we have a former arable field here that is now developing, it has been planted up with hazel coppice in a system we call ‘coppice with standards', where we plant… Adam: Coppice with standards? Guy: Coppice with standards yeah. Adam: Oo, well very grand! Guy: It is! It's an old forestry practice where they planted lots of hazel trees that would have been worked and then periodically in amongst them, there will be oak trees that would be allowed to grow longer and then harvested at a later date. What this has meant is that we've got long grass now that is growing between these trees and that's making it much more attractive for small mammals on site. Adam: Like what? What sort of small mammals? Guy: Things like voles, wood mice, field voles, these sort of things that make sort of tracks and sort of tunnels within the grass. And what that has meant is, as we go up the food chain is, that that's become more attractive now on the site for raptors. A nice story from two years ago - we have a volunteer that works with us who is a BTO bird ringer, and he sort of approached us to say “you've got barn owls nearby and your site is starting to develop nicely. How do you fancy putting up some raptor boxes to see if we can attract them in?” So, which was great, and we managed…, the local bird club donated some barn owl boxes, we put the barn owl boxes up in this field we have just talked about – the hazel coppice field – and the expert said “well they probably won't nest in it this year. They'll come and have a look…” Anyway, we put it up…, two months later… it was being used and we were able to ring those three chicks that came from that and they've been breeding ever since. Adam: Wow, how amazing! Must be very heartening to be working on the site which is growing like that so quickly. Guy: It is, it's amazing and when you consider that we're within the M25, we're very close to London, but we've got this site that is growing and it's only going to get better as we manage it sympathetically for the wildlife that it hosts. Adam: We're just coming round the bend and back to almost where we started into this field of standing soldiers amongst the growing trees, and the cathedral-like tree sculpture there which will take us back to the beginning. So we've just done a little tour… Guy: Yeah, Adam: So, I dunno half an hour, 40 minutes or so. Presumably, we skirted the edges of this… Guy: You certainly have Adam! It's a fraction of the site. We are 640 acres in size and we're just at the top part of it. This area that we've largely walked around today is very much focused on World War One and our memorials, but much of the rest of the site is, actually, is quite a bit quieter, there are fewer people around and the focus is definitely more on wildlife. Adam: Yes, well, it has been an amazing trip, I have to say, I've been to lots of different Woodland Trust woods all the way up the country, to the far stretches of Scotland. I have to say I think this is my favourite. It's quite, quite a site! And the memorial is done really tastefully and fits in with the landscape. I think this is quite, quite a site for you to manage, it's quite a thing. Guy: It's incredible and we are just so proud of it and we just can't wait to be able to open our car park and invite people from further afield, and not just locals who get to enjoy it as is the case at the moment. Adam: Absolutely. Well look, thank you! It started this morning, bright sun, it looked like I shouldn't need to bring a coat then all of a sudden, I thought “Oh my goodness”, we're standing under a completely black cloud but it has not rained, it is not raining, we're in running distance of the car so… Guy: Somebody's looking down on us Adam, at least for a couple of hours. Adam: They are indeed, well thank you very much! Voiceover: Thank you for listening to the Woodland Trust Woodland Walks. Join us next month when Adam will be taking another walk in the company of Woodland Trust staff, partners and volunteers and don't forget to subscribe to the series on iTunes, or wherever you're listening to us, and do give us a review and a rating. And why not send us a recording of your favourite woodland walk to be included in a future podcast? Keep it to a maximum of five minutes and please tell us what makes your woodland walk special. Or send an email with details of your favourite walk and what makes it special to you. Send any audio files to podcast@woodlandtrust.org.uk and we look forward to hearing from you.
Mike Isaacson: If your free speech requires an audience, might I suggest a therapist? [Theme song] Nazi SS UFOsLizards wearing human clothesHinduism's secret codesThese are nazi lies Race and IQ are in genesWarfare keeps the nation cleanWhiteness is an AIDS vaccineThese are nazi lies Hollow earth, white genocideMuslim's rampant femicideShooting suspects named Sam HydeHiter lived and no Jews died Army, navy, and the copsSecret service, special opsThey protect us, not sweatshopsThese are nazi lies Mike: Welcome once again to The Nazi Lies Podcast. I am joined by two historians today. With us is Evan Smith, lecturer at Flinders University in Adelaide, and David Renton, who taught at a number of universities in the UK and South Africa before leaving the academy to practice law, though he still finds time to research and write. Each of them has a book about today's topic: the free speech crisis. Dr. Smith's book, No Platform: A History of Anti-Fascism, Universities and the Limits of Free Speech, chronicles the No Platform policy of the National Union of Students in the UK from its foundation in 1974 to the present day. Dr. Renton's book, No Free Speech for Fascists: Exploring ‘No Platform' in History, Law and Politics, tells a much longer story of the interplay of radical leftist groups, organized fascists, and the state in shaping the UK's speech landscape and their significance in politics and law. Both are out from Routledge. I have absolutely no idea how we've managed to make the time zones work between the three of us, but welcome both of you to the podcast. Evan Smith: Thank you. David Renton: Thanks, Mike. Mike: So David, I want to start with you because your book goes all the way back to the 1640s to tell its history. So what made you start your story in the 1640s, and what did contention over speech look like before Fascism? David: Well, I wanted to start all that time back more than 300 years ago, because this is the moment when you first start to see something like the modern left and right emerge. You have in Britain, a party of order that supports the state and the king, but you also have a party which stands for more democracy and a more equal distribution of wealth. And essentially, from this point onwards in British, European, American politics, you see those same sites recreating themselves. And what happens again, and again, and again from that point onwards for hundreds of years until certainly say 50 years ago, you have essentially the people who are calling for free speech, whether that's the levellers in 1640s, Tom Paine 100 years later, J.S. Mill in the 19th Century. The left is always the people in favor of free speech. In terms of the right, if you want a kind of the first philosopher of conservatism, someone like Edmund Burke, he's not involved in the 1640s. He's a bit later, about a century and a half later. But you know, he supports conservatism. So what's his attitude towards free speech? It's really simple. He says, people who disagree with him should be jailed. There should be laws made to make it harder for them to have defenses. And more and more of them should be put in jail without even having a trial. That's the conservative position on free speech for centuries. And then what we get starting to happen in the late 20th century, something completely different which is a kind of overturning of what's been this huge, long history where it's always the left that's in favor of free speech, and it's always the right that's against it. Mike: Okay. Now, your contention is that before the appearance of Fascism, socialist radicals were solidly in favor of free speech for all. Fascism changed that, and Evan, maybe you can jump in here since this is where your book starts. What was new about Fascism that made socialists rethink their position on speech? Evan: So fascism was essentially anti-democratic and it was believed that nothing could be reasoned with because it was beyond the realms of reasonable, democratic politics. It was a violence, and the subjugation of its opponents was at the very core of fascism. And that the socialist left thought that fascism was a deeply violent movement that moved beyond the traditional realm of political discourse. So, there was no reasoning with fascists, you could only defeat them. Mike: So, let's start with David first, but I want to get both of you on this. What was the response to Fascism like before the end of World War II? David: Well, what you do is you get the left speaking out against fascism, hold demonstrations against fascism, and having to articulate a rationale of why they're against fascism. One of the things I quote in my book is a kind of famous exchange that takes place in 1937 when a poet named Nancy Cunard collected together the writers, intellectuals, and philosophers who she saw as the great inspiration to– the most important writers and so on that day. And she asked them what side they were taking on fascism. What's really interesting if you read their accounts, whether it's people like the poet W.H. Auden, novelist Gerald Bullitt, the philosopher C.E.M Joad, they all say they're against fascism, but they all put their arguments against fascism in terms of increased speech. So C.E.M Joad writes, "Fascism suppresses truth. That's why we're against fascism." Or the novelist Owen Jameson talks about fascism as a doctrine which exalts violence and uses incendiary bombs to fight ideas. So you get this thing within the left where people grasp that in order to fight off this violence and vicious enemy, they have to be opposed to it. And that means, for example, even to some extent making an exception to what's been for centuries this uniform left-wing notion: you have to protect everyone's free speech. Well people start grasping, we can't protect the fascist free speech, they're gonna use it to suppress us. So the Left makes an exception to what's been its absolute defense of free speech, but it makes this exception for the sake of protecting speech for everybody. Mike: Okay. Evan, do you want to add anything to the history of socialists and fascists before the end of World War Two? Evan: Yeah. So just kind of setting up a few things which will become important later on, and particularly because David and I are both historians of antifascism in Britain, is that there's several different ways in which antifascism emerges in the interwar period and several different tactics. One tactic is preventing fascists from marching from having a presence in public. So things like the Battle of Cable Street in 1936 is a very famous incident where the socialists and other protesters stopped the fascists from marching. There's also heckling and disrupting of fascist meetings. So this was big meetings like Olympia in June 1934, but then also smaller ones like individual fascist meetings around the country were disrupted by antifascists. There was also some that are on the left who also called for greater state intervention, usually in the form of labor councils not allowing fascists to congregate in public halls and stuff like that. So these kinds of arguments that fascism needs to be confronted, disrupted, obfuscated, starts to be developed in the 1930s. And it's where those kinds of free speech arguments emerge in the later period. Mike: Now immediately after the Second World War, fascist movements were shells of their former selves. They had almost no street presence and their organizations usually couldn't pull very many members. Still, the response to fascism when it did pop up was equally as vehement as when they organized into paramilitary formations with membership in the thousands. Something had qualitatively changed in the mind of the public regarding fascism. What did the immediate postwar response to public fascist speech look like, and what was the justification? Evan, let's start with you and then David you can add anything he misses. Evan: David probably could tell the story in a lot more detail. In the immediate post-war period in Britain, Oswald Mosley tries to revive the fascist movement under the title The Union Movement, but before that there's several kind of pro-fascist reading groups that emerge. And in response to this is kind of a disgust that fascists who had recently been imprisoned in Britain and their fellow travellers in the Nazis and the Italian Fascists and the continental fascists had been, you know, it ended in the Holocaust. There was this disgust that fascists could be organizing again in public in Britain, and that's where it mobilizes a new kind of generation of antifascists who are inspired by the 1930s to say "Never again, this won't happen on our streets." And the most important group and this is The 43 Group, which was a mixture of Jewish and communist radicals, which probably David can tell you a little bit about. David: I'd be happy to but I think before we get to 43 Group, it's kind of worth just pausing because the point Mike's left is kind of around the end of the Second World War. One thing which happens during the Second World War is of course Britain's at war with Germany. So what you start to get is Evan talked about how in the 1930s, you already have this argument like, “Should stopping fascism be something that's done by mass movements, or should it be done by the state?” In the Second World War the state has to confront that question, too, because it's got in fascism a homegrown enemy, and the British state looks at how all over Europe these states were toppled really quickly following fascist advance, and very often a pro-fascist powerful section of the ruling class had been the means by which an invading fascism then found some local ally that's enabled it to take over the state and hold the state. So the British state in 1940 actually takes a decision to intern Oswald Mosley and 800 or so of Britain's leading fascists who get jailed initially in prisons in London, then ultimately on the Isle of Man. Now, the reason why I'm going into this is because the first test of what the ordinary people in Britain think about the potential re-emergence of fascism comes even before the Second World War's ended. When Oswald Mosley is released from internment, he says he has conditioned phlebitis, he's very incapacitated, and is never going to be politically active again. And the British state buys this. And this creates–and an actual fact–the biggest single protest movement in Britain in the entire Second World War, where you get hundreds of people in certain factories going on strike against Oswald Mosley's release, and high hundreds of thousands of people signed petitions demanding that he's reinterned, and you start to get people having demonstrations saying Mosley ought to go back to jail. That kind of sets the whole context of what's going to happen after the end of the Second World War. Mosley comes out and he's terrified of public opinion; he's terrified about being seen in public. He's convinced that if you hold meetings you're going to see that cycle going on again. So for several years, the fascists barely dare hold public meetings, and they certainly don't dare hold meetings with Mosley speaking. They test the water a bit, and they have some things work for them. Evan's mentioned the 43 Group so I'll just say a couple sentences about them. The 43 Group are important in terms of what becomes later. They're not a vast number of people, but they have an absolute focus on closing down any fascist meeting. We're gonna hear later in this discussion about the phrase "No Platform" and where it comes from, but you know, in the 1940s when fascist wanted to hold meetings, the platform means literally getting together a paste table and standing on it, or standing on a tiny little ladder just to take you a couple of foot above the rest of your audience. The 43 Group specialize in a tactic which is literally knocking over those platforms. And because British fascism remained so isolated and unpopular in the aftermath of the Second World War, you know, there are 43 Group activists and organizers who look at London and say, "All right, if there going to be 12 or 13 public meetings in London this weekend, we know where they're going to be. If we can knock over every single one of those other platforms, then literally there'll be no fascists to have any chance to find an audience or put a public message in Britain." That's kind of before you get the term 'No Platform' but it's almost in essence the purest form of No Platforming. It's people being able to say, "If we get organized as a movement outside the state relying on ordinary people's opposition to fascism, we can close down every single example of fascist expression in the city and in this country." Mike: Okay. So through the 50's and 60's, there were two things happening simultaneously. On the one hand, there was the largely left wing student-led free speech movement. And on the other hand, there was a new generation of fascists who were rebuilding the fascist movement in a variety of ways. So let's start with the free speech movement. David, you deal with this more in your book. What spurred the free speech movement to happen? David: Yeah. Look in the 50s and 60s, the free speech movement is coming from the left. That's going to change, we know it's going to change like 20 or 30 years later, but up to this point we're still essentially in the same dance of forces that I outlined right at the start. That the left's in favor of free speech, the right is against it. And the right's closing down unwanted ideas and opinion. In the 50s and 60s, and I'm just going to focus on Britain and America, very often this took the form of either radicals doing some sort of peace organising–and obviously that cut against the whole basic structure of the Cold War–or it took the form of people who maybe not even necessarily radicals at all, just trying to raise understanding and consciousness about people's bodies and about sex. So for the Right, their counterattack was to label movements like for example in the early 60s on the campus of Berkeley, and then there's originally a kind of anti-war movement that very quickly just in order to have the right to organize, becomes free speech movements. And the Right then counter attacks against it saying, "Essentially, this is just a bunch of beats or kind of proto-hippies. And what they want to do is I want to get everyone interested in drugs, and they want to get everyone interested in sexuality, and they want everyone interested in all these sorts of things." So their counterattack, Reagan terms this, The Filthy Speech Movement. In the late 60s obviously in states, we have the trial of the Chicago 7, and here you have the Oz trial, which is when a group of radicals here, again that their point of view is very similar, kind of hippie-ish, anti-war milieu. But one thing is about their magazines, which again it seems very hard to imagine today but this is true, that part of the way that their their magazine sells is through essentially soft pornographic images. And there's this weird combination of soft porn together with far left politics. They'll get put on trial in the Oz trial and that's very plainly an attempt– our equivalent of the Chicago 7 to kind of close down radical speech and to get into the public mind this idea that the radicals are in favor of free speech, they're in favor of extreme left-wing politics, and they're in favor of obscenity, and all these things are somehow kind of the same thing. Now, the point I just wanted to end on is that all these big set piece trials–another one to use beforehand is the Lady Chatterley's Lover trial, the Oz trial, the Chicago 7 trial, all of these essentially end with the right losing the battle of ideas, not so much the far right but center right. And people just saying, "We pitched ourselves on the side of being against free speech, and this isn't working. If we're going to reinvent right-wing thought, make some center right-wing ideas desirable and acceptable in this new generation of people, whatever they are, then we can't keep on being the ones who are taking away people's funds, closing down ideas. We've got to let these radicals talk themselves out, and we've got to reposition ourselves as being, maybe reluctantly, but the right takes the decision off of this. The right has to be in favor of free speech too. Mike: All right. And also at this time, the far right was rebuilding. In the UK, they shifted their focus from overt antisemitism and fascism to nebulously populist anti-Black racism. The problem for them, of course, was that practically no one was fooled by this shift because it was all the same people. So, what was going on with the far right leading into the 70s? Evan, do you want to start? Evan: Yeah. So after Mosley is defeated in Britain by the 43 Group and the kind of antifascism after the war, he moves shortly to Ireland and then comes back to the UK. Interestingly, he uses universities and particularly debates with the Oxford Union, the Cambridge Union, and other kind of university societies, to find a new audience because they can't organize on the streets. So he uses–throughout the '50s and the '60s–these kind of university platforms to try and build a fascist movement. At the same time, there are people who were kind of also around in the '30s and the '40s who are moving to build a new fascist movement. It doesn't really get going into '67 when the National Front is formed from several different groups that come together, and they're really pushed into the popular consciousness because of Enoch Powell and his Rivers of Blood Speech. Enoch Powell was a Tory politician. He had been the Minister for Health in the Conservative government, and then in '68 he launches this Rivers of Blood Speech which is very much anti-immigration. This legitimizes a lot of anti-immigrationist attitudes, and part of that is that the National Front rides his coattails appealing to people who are conservatives but disaffected with the mainstream conservatism and what they saw as not being hard enough in immigration, and that they try to build off the support of the disaffected right; so, people who were supporting Enoch Powell, supporting the Monday Club which is another hard right faction in the conservatives. And in that period up until about the mid 1970s, that's the National Front's raison d'etre; it's about attracting anti-immigrationists, conservatives to build up the movement as an electoral force rather than a street force which comes later in the '70s. Mike: There was also the Apartheid movement, or the pro-Apartheid movement, that they were building on at this time as well, right? Evan: Yeah. So at this time there's apartheid in South Africa. In 1965, the Ian Smith regime in Rhodesia has a unilateral declaration of independence from Britain to maintain White minority rule. And a lot of these people who are around Powell, the Monday Club, the National Front, against decolonization more broadly, and also then support White minority rule in southern Africa. So a lot of these people end up vocalizing support for South Africa, vocalizing support for Rhodesia, and that kind of thing. And it's a mixture of anti-communism and opposition to multiracial democracy. That's another thing which they try to take on to campus in later years. Mike: So finally we get to No Platform. Now, Evan, you contend that No Platform was less than a new direction in antifascist politics than a formalization of tactics that had developed organically on the left. Can you talk a bit about that? Evan: Yeah, I'll give a quick, very brief, lead up to No Platform and to what's been happening in the late '60s. So Enoch Powell who we mentioned, he comes to try and speak on campus several times throughout the late 60s and early 70s. These are often disrupted by students that there's an argument that, "Why should Enoch Powell be allowed to come onto campus? We don't need people like that to be speaking." This happens in the late 60s. Then in '73, Hans Eysenck, who was a psychologist who was very vocal about the connection between race and IQ, he attempts to speak at the London School of Economics and his speech is disrupted by a small group of Maoists. And then also– Mike: And they physically disrupted that speech, right? That wasn't just– Evan: Yeah, they punched him and pushed him off stage and stuff like that. And a month later, Samuel Huntington who is well known now for being the Clash of Civilizations guy, he went to speak at Sussex University, and students occupied a lecture theater so he couldn't talk because they opposed his previous work with the Pentagon during the Vietnam War. This led to a moral panic beginning about the end of free speech on campus, that it's either kind of through sit-ins or through direct violence, but in the end students are intolerant. And that's happening in that five years before we get to No Platform. Mike: One thing I didn't get a good sense of from your books was what these socialist groups that were No Platforming fascists prior to the NUS policy stood for otherwise. Can we talk about the factionalization of the left in the UK in the 60s and 70s? David, maybe you can help us out on this one. David: Yeah, sure. The point to grasp, which is that the whole center of British discourse in the ‘70s was way to the left of where it is in Britain today, let alone anywhere else in the world. That from, say, ‘64 to ‘70, we had a Labour government, and around the Labour Party. We had really, really strong social movements. You know, we had something like roughly 50% of British workers were members of trade unions. We'll get on later to the Students Union, that again was a movement in which hundreds of thousands of people participated. Two particular groups that are going to be important for our discussion are the International Socialists and International Marxist Group, but maybe if I kind of go through the British left sort of by size starting from largest till we get down to them. So the largest wing we've got on the British left is Labour Party. This is a party with maybe about half a million members, but kind of 20 million affiliated members through trade unions, and it's gonna be in and out of government. Then you've got the Communist Party which is getting quite old as an organization and is obviously tied through Cold War politics to the Soviet Union. And then you get these smaller groups like the IS, the IMG. And they're Trotskyist groups so they're in the far left of labor politics as revolutionaries, but they have quite a significant social heft, much more so than the far left in Britain today because, for example, their members are involved in editing magazines like Oz. There is a moment where there's a relatively easy means for ideas to merge in the far left and then get transmitted to the Labour Party and potentially even to Labour ministers and into government. Mike: Okay, do you want to talk about the International Marxist Group and the International Socialists? Evan: Do you want me to do that or David? Mike: Yes, that'd be great. Evan: Okay. So as David mentioned, there's the Communist Party and then there's the International Socialists and the International Marxist Group. The International Marxist Group are kind of heavily based in the student movement. They're like the traditional student radicals. Tariq Ali is probably the most famous member at this stage. And they have this counter cultural attitude in a way. International Socialists are a different form of Trotskyism, and they're much more about, not so much interested in the student movement, but kind of like a rank and file trade unionism that kind of stuff, opposition to both capitalism and Soviet communism. And the IS, the IMG, and sections of the Communist Party all coalesce in the student movement, which forms the basis for pushing through a No Platform policy in the Nationalist Union of Students in 1974. Mike: Okay. So in 1974, the National Union of Students passes their No Platform policy. Now before we get into that, what is the National Union of Students? Because we don't have an analogue to that in the US. Evan, you want to tackle this one? Evan: Yeah. Basically, every university has a student union or a form of student union–some kind of student body–and the National Union of Students is the national organization, the peak body which organizes the student unions on all the various campuses around the country. Most of the student unions are affiliated to the NUS but some aren't. The NUS is a kind of democratic body and oversees student policy, but individual student unions can opt in or opt out of whether they follow NUS guidelines. And I think what needs to be understood is that the NUS was a massive organization back in those days. You know, hundreds of thousands of people via the student unions become members of the NUS. And as David was saying, the political discourse is much bigger in the '60s and '70s through bodies like this as well as things like the trade union movement. The student movement has engaged hundreds of thousands of students across Britain about these policies much more than we see anything post the 1970s. David: If I could just add a sentence or two there, that's all right. I mean, really to get a good sense of scale of this, if you look at, obviously you have the big set piece annual conventions or conferences of the National Union of Students. Actually, it doesn't even just have one a year, it has two a year. Of these two conferences, if you just think about when the delegates are being elected to them how much discussion is taking place in local universities. If you go back to some local university meetings, it's sometimes very common that you see votes of 300 students going one way, 400 another, 700 going one way in some of the larger universities. So there's an absolute ferment of discussion around these ideas. Which means that when there are set piece motions to pass, they have a democratic credibility. And they've had thousands of people debating and discussing them. It's not just like someone going on to one conference or getting something through narrowly on a show of hands. There's a feeling that these debates are the culmination of what's been a series of debates in each local university. And we've got over 100 of them in Britain. Mike: Okay, how much is the student union's presence felt on campus by the average student? Evan: That'd be massive. David: Should I do this? Because I'm a bit older than Evan and I went to university in the UK. And it's a system which is slowly being dismantled but when I was student, which is like 30 years ago, this was still largely in place. In almost every university, the exceptions are Oxford and Cambridge, but in every other university in Britain, almost all social activity takes place on a single site on campus. And that single site invariably is owned by the student's union. So your students union has a bar, has halls, it's where– They're the plumb venues on campus if you want to have speakers or if you want to have– Again, say when punk happened a couple of years later, loads and loads of the famous punk performances were taking place in the student union hall in different universities. One of the things we're going to get onto quite soon is the whole question of No Platform and what it meant to students. What I want to convey is that for loads of students having this discussion, when they're saying who should be allowed on campus or who shouldn't be allowed on campus, what's the limits? They feel they've got a say because there are a relatively small number of places where people will speak. Those places are controlled by the students' union. They're owned and run by the students' union. It's literally their buildings, their halls, they feel they've got a right to set who is allowed, who's actually chosen, and who also shouldn't be invited. Mike: Okay, cool. Thank you. Thank you for that. That's a lot more than I knew about student unions. Okay. Evan, this is the bread and butter of your book. How did No Platform come about in the NUS? Evan: So, what part of the fascist movement is doing, the far-right movement, is that it is starting to stray on campus. I talked about the major focus of the National Front is about appealing to disaffected Tories in this stage, but they are interfering in student affairs; they're disrupting student protests; they're trying to intimidate student politics. And in 1973, the National Front tried to set up students' association on several campuses in Britain And there's a concern about the fascist presence on campus. So those three left-wing groups– the IMG, the IS and the Communist Party–agree at the student union level that student unions should not allow fascists and racists to use student buildings, student services, clubs that are affiliated to the student union. They shouldn't be allowed to access these. And that's where they say about No Platform is that the student union should deny a platform to fascists and racists. And in 1974 when they put this policy to a vote and it's successful, they add, "We're going to fight them by any means necessary," because they've taken that inspiration from the antifascism of the '30s and '40s. Mike: Okay. Now opinion was clearly divided within the NUS. No Platform did not pass unanimously. So Evan, what was opinion like within the NUS regarding No Platform? Evan: Well, it passed, but there was opposition. There was opposition from the Federation of Conservative Students, but there was also opposition from other student unions who felt that No Platform was anti-free speech, so much so that in April 1974 it becomes policy, but in June 1974, they have to have another debate about whether this policy should go ahead. It wins again, but this is the same time as it happens on the same day that the police crackdown on anti-fascist demonstration in Red Lion Square in London. There's an argument that fascism is being propped up by the police and is a very real threat, so that we can't give any quarter to fascism. We need to build this No Platform policy because it is what's standing in between society and the violence of fascism. Mike: Okay. I do want to get into this issue of free speech because the US has a First Amendment which guarantees free speech, but that doesn't exist in Britain. So what basis is there for free speech in the law? I think, David, you could probably answer this best because you're a lawyer. David: [laughs] Thank you. In short, none. The basic difference between the UK and the US– Legally, we're both common law countries. But the thing that really changes in the US is this is then overlaid with the Constitution, which takes priority. So once something has been in the Constitution, that's it. It's part of your fundamental law, and the limits to it are going to be narrow. Obviously, there's a process. It's one of the things I do try and talk about in my book that the Supreme Court has to discover, has to find free speech in the American Constitution. Because again, up until the Second World War, essentially America has this in the Constitution, but it's not particularly seen as something that's important or significant or a key part of the Constitution. The whole awe and mysticism of the First Amendment as a First Amendment is definitely something that's happened really in the last 40-50 years. Again, I don't want to go into this because it's not quite what you're getting at. But certainly, in the '20s for example, you get many of the big American decisions on free speech which shaped American law today. What everyone forgets is in every single one of them, the Supreme Court goes on to find some reason why free speech doesn't apply. So then it becomes this doctrine which is tremendously important to be ushered out and for lip service be given to, just vast chunks of people, communists, people who are in favor of encouraging abortion, contraception, whatever, they're obviously outside free speech, and you have to come up with some sophisticated justifications for that. In Britain, we don't have a constitution. We don't have laws with that primary significance. We do kind of have a weak free speech tradition, and that's kind of important for some things like there's a European Convention on Human Rights that's largely drafted by British lawyers and that tries to create in Articles 10 and 11 a general support on free speech. So they think there are things in English legal tradition, in our common law tradition, which encourage free speech. But if we've got it as a core principle of the UK law today, we've got it because of things like that like the European Convention on Human Rights. We haven't got it because at any point in the last 30, or 50, or 70 or 100 years, British judges or politicians thought this was a really essential principle of law. We're getting it these days but largely by importing it from the United States, and that means we're importing the worst ideological version of free speech rather than what free speech ought to be, which is actually protecting the rights of most people to speak. And if you've got some exceptions, some really worked out well thought exceptions for coherent and rational reasons. That's not what we've got now in Britain, and it's not what we've really ever had. Mike: Evan, you do a good job of documenting how No Platform was applied. The experience appears to be far from uniform. Let's talk about that a little bit. Evan: Yeah, so there's like a debate happening about who No Platform should be applied to because it states– The official policy is that No Platform for racists and fascists, and there's a debate of who is a racist enough to be denied a platform. There's agreement so a group like the National Front is definitely to be No Platform. Then there's a gray area about the Monday Club. The Monday Club is a hard right faction within the conservatives. But there's a transmission of people and ideas between National Front and the Monday Club. Then there's government ministers because the British immigration system is a racist system. The Home Office is seen as a racist institution. So there's a debate of whether government politicians should be allowed to have a platform because they uphold institutional racism. We see this at different stages is that a person from the Monday Club tries to speak at Oxford and is chased out of the building. Keith Joseph, who's one of the proto-Thatcherites in the Conservative Party, comes to speak at LSE in the 1977-78 and that there is a push to say that he can't be allowed to speak because of the Conservative Party's immigration policies and so forth like that. So throughout the '70s, there is a debate of the minimalist approach with a group like the International Socialists saying that no, outright fascists are the only ones to be No Platformed. Then IMG and other groups are saying, "Actually, what about the Monday Club? What about the Society for the Protection of Unborn Children? What about Conservative Ministers? Are these people, aren't they also sharing that kind of discriminatory agenda that shouldn't be allowed a platform?" Mike: Okay, and there were some objections within the National Union of Students to some applications of No Platform, right? Evan: Yeah, well, not so much in the '70s. But once you get into the '80s, there's a big push for it. But probably the biggest issue in the '70s is that the application of No Platform to pro-Israel groups and Jewish student groups. In 1975, there's a UN resolution that Zionism is a form of racism, and that several student groups say, "Well, pro-Israel groups are Zionists. If Zionism is a form of racism and No Platform should be applied to racists or fascists, shouldn't they the pro-Israel groups then be denied a platform? Should pro-Israel groups be disaffiliated from student unions, etc.?" Several student unions do this at the local level, but there's a backlash from the NUS at the national level so much so the NUS actually suspends No Platform for about six months. It is reintroduced with an explicit piece of it saying that if No Platform is reinstituted, it can't be applied to Zionists groups, to pro-Israel groups, to Jewish societies. But a reason that they can't, the NUS can't withhold No Platform as a policy in the late 1970s is because they've been playing catch up because by this time, the Anti-Nazi League, Rock Against Racism are major mass movements of people because the National Front is seen as a major problem, and the NUS has to have some kind of anti-Fascist, anti-racist response. They can't sit on their hands because they're going dragged along by the Anti-Nazi League. Mike: One thing that you talked about in your book, David, is that simultaneous to No Platform was this movement for hate speech prohibitions. Talk about how these movements differed. David: Well, I think the best way to convey it is if we go back to the motion that was actually passed at the National Union of Students spring conference in May '74. If you don't mind, I'll just begin by reading it out. Conference recognizes the need to refuse any assistance, financial or otherwise, to openly racist or fascist organizations or societies (e.g., Monday Club, National Front, Action Party, Union Movement, National Democratic Party) and to deny them a platform. What I want to try and convey is that when you think about how you got this coalition within the National Union of Students in support of that motion, there were like two or three different ideas being signaled in that one motion. And if you then apply them, particularly what's happening as we're talking 50 years later now, if you apply them through the subsequent 50 years of activism, they do point in quite different directions. To just start up, “conference recognizes the need to refuse any assistance” dadadada. What's really been good at here, I'm sure some of the people who passed No Platform promotion just had this idea, right? What we are, we're a movement of students' unions. We're a movement of buildings which are run by students and are for students. People have said to themselves, all this motion is really committing us to do is to say that we won't give any assistance to racist or fascist organizations. So what that means in practice is in our buildings, in our halls, we won't invite them in. Now, it may be that, say, the university will invite a conservative minister or the university will allow some far-right person to have a platform in election time. But the key idea, one key idea that's going on with this, just those things won't happen in our students' unions. They're our buildings; they're our halls. To use a term that hasn't really been coined yet, but this is in people's heads, is the idea of a safe space. It's just, student unions are our safe space. We don't need to worry about who exactly these terrible people are. Whoever and whatever they are, we don't want them on our patch. That's idea number one. Idea number two is that this is really about stopping fascists. It's not about any other form of discrimination. I'll come on to idea three in a moment. With idea three, this is about fascist organizations. You can see in a sense the motion is talking to people, people coming on and saying like I might not even be particularly left wing, but I don't like fascists. Evan talked about say for example, Zionist organizations. Could a Zionist organization, which is militantly antifascist, could they vote this motion? Yes. And how they'd sell it to themselves is this is only about fascism. So you can see this in the phrase, this is about refusing systems to “openly racist or fascist organizations,” and then look at the organizations which are listed: the National Front, well yeah, they're fascists; the Union Movement, yeah, they're fascists; the National Democratic Party, they're another little fascist splinter group.And then the only one there that isn't necessarily exactly fascist is the Monday Club who are a bunch of Tories who've been in the press constantly in the last two years when this motion is written for their alliance with National Front holding demonstrations and meetings together. So some people, this is just about protecting their space. Some people, this is about excluding fascists and no one else. But then look again at the motion, you'll see another word in there. “Conference recognizes the need to refuse any assistance to openly racist or fascist organizations.” So right from the start, there's a debate, what does this word racist mean in the motion? Now, one way you could read the motion is like this. From today, we can all see that groups like the National Front are fascists. Their leaders can spend most of the rest of the decade appearing constantly in literature produced by anti-fascist groups, identifying them as fascist, naming them as fascist, then we have to have a mass movement against fascism and nazism. But the point is in 1974, that hadn't happened yet. In most people's heads, groups like the National Front was still, the best way to describe them that no one could disagree to at least say they were openly racist. That was how they described themselves. So you could ban the National Front without needing to have a theological discussion about whether they fitted exactly within your definition of fascism. But the point I really want to convey is that the motion succeeds because it blurs the difference between saying anything can be banned because it's fascist specifically or anything can be banned because it's racist or fascist. This isn't immediately apparent in 1974, but what becomes pretty apparent over time is for example as Evan's documented already, even before 1974, there have been non-fascists, there have been conservatives going around student unions speaking in pretty racist terms. All right, so can they be banned? If the answer is this goes to racists or fascists, then definitely they can be banned. But now wait a second. Is there anyone else in British politics who's racist? Well, at this point, both main political parties are standing for election on platforms of excluding people from Britain effectively on the basis of the color of their skin. All right, so you can ban all the main political parties in Britain. All right, well, how about the newspapers? Well, every single newspaper in Britain, even the pro-Labour ones, is running front page articles supporting the British government. All right, so you could ban all newspapers in Britain. Well, how about the television channel? Well, we've only got three, but the best-selling comedies on all of them are comedies which make fun of people because they're foreigners and because they're Black. You can list them all. There's dozens of these horrible programs, which for most people in Britain now are unwatchable. But they're all of national culture in Britain in the early '70s. Alright, so you say, all right, so students we could ban every television channel in Britain, every newspaper in Britain, and every political party in Britain, except maybe one or two on the far left. It's like, wait a second people, I've only been doing racism. Well, let's take seriously the notion, if we're against all forms of racism, how can we be against racism without also being against sexism? Without being against homophobia? So the thing about No Platform is there's really only two ways you can read it in the end, and certainly once you apply it outside the 1970s today. Number one, you can say this is a relatively tightly drawn motion, which is trying to pin the blame on fascists as something which is growing tremendously fast in early 1970s and trying to keep them out. Maybe it'd be good to keep other people out too, but it's not trying to keep everyone out. Or you've got, what we're confronting today which is essentially this is an attempt to prevent students from suffering the misery, the hatred, the fury of hate speech. This is an attempt to keep all hate speech off campus, but with no definition or limit on hate speech. Acceptance of hate speech 50 years later might be much more widely understood than it is in early '70s. So you've got warring in this one motion two completely different notions of who it's right politically to refuse platforms to. That's going to get tested out in real life, but it's not been resolved by the 1974 motion, which in a sense looks both ways. Either the people want to keep the ban narrow or the people want to keep it broad, either of them can look at that motion and say yeah, this is the motion which gives the basis to what we're trying to do. Mike: Okay. I do want to get back to the notion of the maximalist versus the precisionist view of No Platform. But first before that, I want to talk about the Anti-Nazi League and Rock Against Racism to just get more of a broader context than just the students in Britain in terms of antifascism. David, do you want to talk about that? David: Okay. Well, I guess because another of my books is about Rock Against Racism and the Anti-Nazi League, so I'll try and do this really short. I'll make two points. First is that these movements which currently ended in the 1970s are really very large. They're probably one of the two largest street movements in post-war British history. The only other one that's candidate for that is the anti-war movement, whether that's in the '80s or the early 2000s. But they're on that same scale as amongst the largest mass movements in British history. In terms of Rock Against Racism, the Anti-Nazi League, the total number of people involved in them is massive; it's around half a million to a million people. They're single most famous events, two huge three carnivals in London in 1977, which each have hundreds of thousands of people attending them and bring together the most exciting bands. They are the likes of The Clash, etc, etc. It's a movement which involves people graffitiing against Nazis, painting out far-right graffiti. It's a movement which is expressed in streets in terms of set piece confrontations, clashes with far-right, Lewisham in ‘76, Southall in ‘79. These are just huge movements which involve a whole generation of people very much associated with the emergence of punk music and when for a period in time in Britain are against that kind of visceral street racism, which National Front represents. I should say that they have slightly different attitudes, each of them towards the issue of free speech, but there's a massive interchange of personnel. They're very large. The same organizations involved in each, and they include an older version of the same activist who you've seen in student union politics in '74 as were they you could say they graduate into involvement in the mass movements like Rock Against Racism and the Anti-Nazi League. Now, I want to say specifically about the Anti-Nazi League and free speech. The Anti-Nazi League takes from student politics this idea of No Platform and tries to base a whole mass movement around it. The idea is very simply, the National Front should not be allowed a platform to speak, to organize, to win converts anywhere. Probably with the Anti-Nazi League, the most important expressions of this is two things. Firstly, when the National Front tries to hold election meetings, which they do particularly in the run up to '79 election, and those are picketed, people demonstrated outside of them A lot of them are the weekend in schools. One at Southall is in a town hall. These just lead to repeated clashes between the Anti-Nazi League and the National Front. The other thing which the Anti-Nazi League takes seriously is trying to organize workers into closing off opportunities for the National Front spread their propaganda. For example, their attempts to get postal workers to refuse to deliver election materials to the National Front. Or again, there's something which it's only possible to imagine in the '70s; you couldn't imagine it today. The National Front is entitled to election broadcasts because it's standing parliament. Then the technical workers at the main TV stations go on strike and refuse to let these broadcasts go out. So in all these ways, there's this idea around the Anti-Nazi League of No Platform. But No Platform is No Platform for fascists. It's the National Front should not get a chance to spread its election message. It's not yet that kind of broader notion of, in essence, anything which is hate speech is unacceptable. In a sense, it can't be. Because when you're talking about students' unions and their original No Platform motion and so forth, at the core of it is they're trying to control their own campuses. There's a notion of students' power. The Anti-Nazi League, it may be huge mass movement and may have hundreds of thousands people involved in it, but no one in Anti-Nazi League thinks that this organization represents such a large majority that they could literally control the content of every single TV station, the content of every single newspaper. You can try and drive the National Front out, but if people in that movement had said right, we actually want to literally carve out every expression of racism and every expression of sexism from society, that would have been a yet bigger task by another enormous degrees of scale. Mike: Okay, I do want to talk a little bit more about Rock Against Racism just particularly how it was founded, what led to its founding. I think it gives a good sense of where Britain was at, politically. David: Right. Rock Against Racism was founded in 1976. The two main events which are going on in the heads of the organizers when they launched it, number one, David Bowie's weird fascist turn, his interview with Playboy magazine in which he talks about Hitler being the first rock and roll superstar, the moment where he was photographed returning from tours in America and comes to Victoria Station and appears to give a Nazi salute. The reason why with Bowie it matters is because he's a hero. Bowie seems to represent the emergence of a new kind of masculinity, new kind of attitude with sexuality. If someone like that is so damaged that he's going around saying Hitler is the greatest, that's really terrifying to Bowie fans and for a wider set of people. The other person who leads directly to the launch of Rock Against Racism is Eric Clapton. He interrupts a gig in Birmingham in summer '76 to just start giving this big drunken rant about how some foreigner pinched his missus' bum and how Enoch Powell is the greatest ever. The reason why people find Eric Clapton so contemptible and why this leads to such a mass movement is weirdly it's the opposite of Bowie that no one amongst the young cool kids regards Clapton as a hero. But being this number one star and he's clearly spent his career stealing off Black music and now he's going to support that horror of Enoch Powell as well, it just all seems so absolutely ridiculous and outrageous that people launch an open letter to the press and that gets thousands of people involved. But since you've asked me about Rock Against Racism, I do want to say Rock Against Racism does have a weirdly and certainly different attitude towards free speech to the Anti-Nazi League. And this isn't necessarily something that was apparent at the time. It's only kind of apparent now when you look back at it. But one of the really interesting things about Rock Against Racism is that because it was a movement of young people who were trying to reclaim music and make cultural form that could overturn British politics and change the world, is that they didn't turn around and say, "We just want to cut off all the racists and treat them as bad and shoot them out into space," kind of as what the Anti-Nazi League's trying to do to fascists. Rock Against Racism grasped that if you're going to try and change this cultural milieu which is music, you actually had to have a bit of a discussion and debate and an argument with the racists, but they tried to have it on their own terms. So concretely, what people would do is Rock Against Racism courted one particular band called Sham 69, who were one of the most popular young skinhead bands, but also had a bunch of neo-nazis amongst their roadies and things like that. They actually put on gigs Sham 69, put them on student union halls, surrounded them with Black acts. Knew that these people were going to bring skinheads into the things, had them performing under Rock Against Racism banner, and almost forced the band to get into the state of practical warfare with their own fans to try and say to them, "We don't want you to be nazis anymore. We want you to stop this." That dynamic, it was incredibly brave, was incredibly bold. It was really destructive for some of the individuals involved like Jimmy Pursey, the lead singer of Sham 69. Effectively saying to them, "Right, we want you to put on a gig every week where you're going to get bottled by your own fans, and you're going to end up like punching them, just to get them to stop being racist." But we can't see any other way of shifting this milieu of young people who we see as our potential allies. There were lots of sort of local things like that with Rock Against Racism. It wasn't about creating a safe space in which bad ideas couldn't come in; it was about going onto the enemy's ideological trend and going, "Right, on this trend, we can have an argument. We can win this argument." So it is really quite an interesting cultural attempt to change the politics of the street. Mike: Okay, now you two have very different ideas of what No Platform is in its essence. Evan, you believe that No Platform was shifting in scope from its inception and it is properly directed at any institutional platform afforded to vociferous bigots. While David you believe that No Platform is only properly applied against fascists, and going beyond that is a dangerous form of mission creep. Now, I absolutely hate debates. [laughter] I think the format does more to close off discussion than to draw out information on the topic at hand. So, what I don't want to happen is have you two arguing with each other about your positions on No Platform (and maybe me, because I have yet a third position). David: Okay Mike, honestly, we've known each other for years. We've always been– Mike: Yeah, yeah, yeah. David: –your listeners will pick up, there's loads we agree on, too. So I'm sure we can deal without that rubbish debate. [Evan laughs] Mike: All right. So what I'd like to do is ground this discussion as much as possible in history rather than abstract moral principles. So in that interest, can each of you talk a bit about the individuals and groups that have taken the position on No Platform that you have, and how they've defended their positions? David let's start with you. What groups were there insisting that No Platform was necessary but its necessity was limited to overt fascists? David: Well, I think in practice, that was the approach of Rock Against Racism. They took a very different attitude towards people who were tough ideological fascists, to the people who were around them who were definitely racist, but who were capable of being argued out of that. I mean, I've given the example of the policy of trying to have a debate with Sham 69 or use them as a mechanism to change their audience. What I want to convey is in every Rock Against Racism group around the country, they were often attempts to something very similar. People talk about Birmingham and Leeds, whether it be sort of local Rock Against Racism groups, they might put on– might get a big band from some other city once a month, but three weeks out of four, all they're doing is they're putting on a local some kind of music night, and they might get a hundred people there. But they'd go out of the way to invite people who they saw as wavering supporters of The National Front. But the point is this wasn't like– We all know how bad faith debates work. It's something like it's two big ego speakers who disagree with each other, giving them half an hour each to debate and know their audience is already persuaded that one of them's an asshole, one of them's great. This isn't what they were trying to do. They were trying to win over one by one wavering racists by putting them in an environment where they were surrounded by anti-racists. So it was about trying to create a climate where you could shift some people who had hateful ideas in their head, but were also capable of being pulled away from them. They didn't do set piece debates with fascists because they knew that the set piece debates with fascists, the fascists weren't going to listen to what they were going to say anyway. But what they did do is they did try to shift people in their local area to try and create a different atmosphere in their local area. And they had that attitude towards individual wavering racists, but they never had that attitude towards the fascist leaders. The fascist leaders as far as they're concerned, very, very simple, we got to close up the platform to them. We got to deprive them of a chance. Another example, Rock Against Racism, how it kind of made those sorts of distinctions. I always think with Rock Against Racism you know, they had a go at Clapton. They weren't at all surprised when he refused to apologize. But with Bowie, there was always a sense, "We want to create space for Bowie. We want to get Bowie back because Bowie's winnable." That's one of the things about that movement, is that the absolute uncrossable line was fascism. But if people could be pulled back away from that and away from the ideas associated with that, then they wanted to create the space to make that happen. Mike: Okay, and Evan, what groups took the Maximalist approach to No Platform and what was their reasoning? Evan: Yeah. So I think the discussion happens once the National Front goes away as the kind of the major threat. So the 1979 election, the National Front does dismally, and we can partially attribute that to the Anti-Nazi League and Rock Against Racism, kind of this popular antifascist movement. But there's also that Margaret Thatcher comes to power, and there's an argument that's made by historians is that she has pulled away the racist vote away from the National Front back to the conservatives. It's really kind of a realignment of leftwing politics under Thatcher because it's a much more confrontational conservative government, but there's also kind of these other issues which are kind of the new social movements and what we would now term as identity politics, they're forming in the sixties and seventies and are really big issues in the 1980s. So kind of like feminism, gay rights, andthat, there's an argument among some of the students that if we have a No Platform for racism and fascism, why don't we have a No Platform for sexism? Why don't we have a No Platform for homophobia? And there are certain student unions who try to do this. So LSE in 1981, they endorse a No Platform for sexist as part of a wider fight against sexism, sexual harassment, sexual violence on campus is that misogynist speakers shouldn't be allowed to have a presence on campus. Several student unions kind of have this also for against homophobia, and as a part of this really divisive issue in the mid 1980s, the conservative government is quite homophobic. Section 28 clause 28 is coming in in the late eighties. It's a whole kind of homophobia of AIDS. There's instances where students object to local Tory politicians who were kind of outwardly, explicitly homophobic, that they should be not allowed to speak on stage. Then also bubbling along in the background is kind of the supporters of apartheid, so South African diplomats or kind of other people who support the South African regime including Conservative politicians, is that several times throughout the 1980s, they are invited to speak on campus, and there's kind of a massive backlash against this. Sometimes the No Platform policy is invoked. Sometimes it's just simple disruption or kind of pickets or vigils against them. But once fascism is kind of not the main issue, and all these different kind of politics is going on in the eighties, is that there's argument that No Platform for fascism and racism was important, but fascism and racism is only one form of hate speech; it's only one form of discrimination; it's only one form of kind of bodily violence; and we should take them all into consideration. Mike: Okay. Now there's been a fair bit of backlash against No Platform in kind of any of its forms from various sectors, so let's talk a bit about that. Let's start with the fascist themselves. So their response kind of changed somewhat over time in response to No Platform. David, you talk about this. David: Yeah. In the early ‘70s in Britain or I suppose in the late ‘70s too, what's extraordinary is how little use fascist make out of saying, "We are being attacked, free speech applies. We've got to have the right to be heard." I made the point earlier that Britain doesn't have a strong legal culture of free speech. We do have some culture of free speech. And again, it's not that the fascists never use these terms at all, they use them, but they use them very half-heartedly. Their dominant approach is to say, "We are being attacked by the left. The left don't understand we have better fighters than them. If they attack us on the streets, we'll fight back. In the end, we'll be the ones who win in a kind of battle of machismo, street fighting power." Now A, that doesn't happen because actually they lose some set piece confrontations, mostly at Lewisham in 1977. But it's interesting that they don't do the kind of thing which you'd expect the far right to do today, which is to say, like the British far right does today, they constantly say, "We're under attack. Free speech demands that we be heard. We're the only people who take free speech seriously." There's a continuous process in the British far right these days of endlessly going on social media every time anyone even disagrees with them a little bit, they immediately have their faces taped up and present themselves as the victim of this terrible conspiracy when in the mid-'70s when there really were people trying to put the far right out of business, that isn't what the far right did. I think, in essence, a whole bunch of things have to change. You have to get kind of a hardening of the free speech discourse in the United States; you have to have things like the attack on political correctness; the move by the American center-right from being kind of equivocal on free speech to being extremely pro-free speech; and you need to get the importation into Britain of essentially the same kind of free speech discourse as you have in States. Once we get all of that, the British far right eventually twigs that it's a far more effective way of presenting themselves and winning supporters by posing as the world's biggest defenders of free speech. But in the ‘70s, they haven't learned that lesson yet, and their response is much more leaden and ineffective. In essence, they say, "No Platform's terrible because it's bullying us." But what they never have the gumption to say is, "Actually, we are the far right. We are a bunch of people putting bold and dangerous and exciting ideas, and if we are silenced, then all bold and dangerous and difficult ideas will be silenced too." That's something which a different generation of writers will get to and will give them all sorts of successes. But in the ‘70s, they haven't found it yet. Mike: Okay. Now fascists also had some uneasy allies as far as No Platform is concerned among Tories and libertarians. So let's talk about the Tories first, what was their opposition to No Platform about? Evan, you talk about this quite a bit in your book. Evan: Yeah. So the conservative opposition to No Platform is essentially saying that it's a stock standard thing that the left call everyone fascist. So they apply it to broadly and is that in the ‘80s, there's a bunch of conservative politicians to try to go onto campus, try to speak, and there's massive protests. They say that, "Look, this is part of an intolerant left, that they can't see the distinction between fascism and a Conservative MP. They don't want to allow anyone to have free speech beyond that kind of small narrow left wing bubble." In 1986, there is an attempt, after a kind of a wave of protest in '85, '86, there is an attempt by the government to implement some kind of protection for free speech on campus. This becomes part of the Education Act of 1986, that the university has certain obligations to ensure, where practical, free speech applies and no speech is denied. But then it's got all kind of it can't violate the Racial Discrimination Act, the Public Order Act, all those kind of things. Also, quite crucially for today, that 1986 act didn't explicitly apply to student unions. So student unions argued for the last 30 years that they are exempt from any legislation and that they were legally allowed to pursue their No Platform policy.
If outperforming your competition is an issue for you, you want to look at who is the primary competition and what are their advantages? In what areas are they outperforming me? Are they outperforming me in terms of just price? If that's what it is. And a lot of times that's what people are up against in the online market. The online sellers are able to sell for less. And at that point you have to say, “okay, is that something I even want to try to compete with?” Or am I more interested in finding the types of clients who understand and appreciate the value that I bring to the table. David: Hi, and welcome to the podcast. Today, cohost Jay McFarland, and I will be discussing the importance of outperforming your competition. Welcome back, Jay. Jay: So good to be here again, David and this topic is very interesting to me. You know, I've been in small business. I know a lot of business owners and I got to tell you, oftentimes you're so caught up in, just generating sales that what the competition is doing, how much they're doing. Are you competing with the competition? A lot of times, those thoughts don't come up because there's just no time for that. And so I'm wondering what the consequences are if I'm not even thinking about my competition. David: Well, if you're doing great and you're making the money you need to make, maybe you don't have to think about your competition at all. Maybe you're the one that everybody is trying to come after. And when we think about that, it's not just about the fact that, okay, well, maybe somebody else is outperforming me. But a lot of people, if they've been in a market for a particularly long time and they've been selling to people who have other options, they'll find out who their competitors are. Because they'll say, "oh, I'm already doing business with somebody." And you ask who it is and they give you a name or they give you a company name. And you're like, okay, I've heard that name once now. And then you talk to somebody else and now I've heard another name and now I've heard another name. So you have three different names. Then you go to somebody else. And now you hear two for this one. Then you hear three for this one. And then four for this one. You say, "okay, this person has a lot of traction in this market." So you start to recognize them as competition. Also, as things have evolved online, there are now online competitors that compete with local businesses left and right. And so there are a lot of people who think in terms of the online competition. How can I compete with that? So, when we talk about the importance of outperforming your competition, it's not because, "well, I've got to win at all costs," and all that sort of thing. But if you are in business for yourself and you are counting on your sales and your salary to be able to put food on your table. And if your competition is sometimes interfering with that, then the necessity of outperforming your competition becomes very clear. You don't want to run into a situation where somebody says, "yes, I'm already dealing with this person." You want that person to go in there and they say, "no, I'm already dealing with you," right? Jay: Mm-hmm David: You want to be the person who already has that sort of foothold, that sort of traction in a market. So outperforming the competition starts with saying, "okay, who's doing a pretty good job in this market?" And is there somebody that I think is actually doing a better job in this market? Or is there somebody who is doing a job that the marketplace thinks is better? Right? Because you may know that you are already better than this competitor they mentioned. And nothing can be more frustrating sometimes for people, when you go into a situation, they say, "oh, I'm doing business with that person." And you want to say, "oh, they're awful. I can't believe you're doing that!" But of course you don't say that.
David: Hi and welcome to the podcast. Today, co-host Jay McFarland and I will be discussing reimagining the essentials. Welcome, Jay. Good to have you here. Jay: It's so good to be here once again. I'm very excited about today's topic. What's the Point of Reimagining the Essentials? David: Yeah. I mean the whole idea of the essentials to some people it's like, "oh, essentials, that's boring." Right? But it seems to me that in current times we really need to look at the essentials and say, "okay, how can we tweak them or fine tune them or change them around so that they're going to be more effective in a 21st century post-COVID economy?" Jay: Yeah. When I think about essentials, I think about foundational type things. And once you take away the foundation, other things that you have in play don't work as well. So what type of essentials specifically are we talking about that we want to, that we might look at in one when everybody looks at it that way, but we're going to reimagine or rethink about them in a different way? David: Well, I guess when I think of the fundamentals or the essentials, I tend to think of the real basics, prospecting, presenting, following up when it comes to sales. And sometimes you start talking about those things and people's eyes glaze over like, "oh, I know all that stuff." And yeah, we all know we need to do it. Knowing and Doing are Two Different Things We all know we need to do prospecting. We need to make presentations. We need to follow up with prospects and clients. But knowing it, knowing what to do, is really not the issue at all. It's how are we doing it? How well are we doing it? How much better are we doing it than our competitors? How frequently are we doing it? How consistently are we doing it? There are all these different nuanced aspects of it that completely change the results. And when we look at things like prospecting now versus five years ago, 10 years ago, it's completely different. Same thing with presenting, same thing with following up. In the past, it was basically phone and in person. Well now phone and in person are a lot less popular than other methods of communication. So that's really what I'm talking about here. Jay: Yeah, I think again, it's so important, you know, it's so easy to just fall into that trap of I've, you know, we've done it this way forever and it's always worked. I think it's hard for people to break free from those things, because it's hard to know what type of impact you really can have. And I think part of that is even understanding what your baseline is before you can make changes to understand if you're making any progress, right? What Happens When Everything Changes? David: Yeah, absolutely. And I hear both sides of that from people. I hear people who are like, " oh yeah, you know, I've been doing this forever. I know exactly what I'm doing and all that sort of thing." And then I have people on the other side who are like, "Hey, I'm doing all the things that I've done before. I'm doing it more aggressively. I'm doing much more of it. I'm doing it with more people and it's not working." And so for the people who are struggling with that... again, it's not really a matter of saying, "well, now instead of prospecting, we need to do something different." No, you're still going to need to do prospecting. The question is, "can we now do it in a way that is going to reach the people that you need to reach, communicate the things that we need to communicate and allow us to advance our communications and close the sales?" Reimagining the Essentials Post-COVID Jay: Yeah, I have to think that COVID has had a huge impact on reimagining the essentials. Before, in-person experiences were the norm. That was the expectation in so many ways. Now people are standoffish about that. We've become much more interested in doing something online or over the phone. That's not nearly as personal.
Join us at Queen Elizabeth Diamond Jubilee Wood, Leics to discover a thriving 10-year-old wood, chat royal trees and celebrate the Platinum Jubilee. We meet with site manager David Logan to explore the site's connections with the royal family, its special art features and some of the wildlife, sights and sounds you might encounter on a visit. Don't forget to rate us and subscribe! Learn more about the Woodland Trust at woodlandtrust.org.uk. Transcript Voiceover: You are listening to Woodland Walks, a podcast for the Woodland Trust presented by Adam Shaw. We protect and plant trees for people to enjoy, to fight climate change and to help wildlife thrive. Adam: Well, like all good podcasts let's start with a story and this one obviously is about a tree. It stands in a quiet part of central London called Lincoln's Inn Fields – the centre of the legal profession. It sits, well, just outside of a gated 11-acres of parkland in one of the otherwise busiest and noisiest parts of the country. It was planted in 1953 and since then the well-heeled men and women of the legal profession, who worked there, often sheltered under its branches, passed it by, both ignoring it and perhaps enjoying it. In the 70 years that tree has been growing, there have been many monumental events and world figures who have both entered and left the stage. When it was first planted, Winston Churchill was Prime Minister. Since then, entering and often leaving the limelight – Elvis Presley, Martin Luther King, Yuri Gagarin, The Beatles, Marilyn Monroe, John F Kennedy, video players were invented, personal computers and mobile phones were created, and there have been 15 prime ministers. But in all that time, as a living witness to that history of the new Elizabethan Age, there has been only one monarch – Queen Elizabeth II. No one has played such a long-lived part in the nation's history as the Queen. The tree that still stands by Lincoln's Inn Fields is one of literally millions that have been planted in the name of the Queen. Trees, of course, have an even longer perspective on time than Her Majesty but both stand as witnesses and part of history stretching back and reaching forward far beyond the timescales most of us live by. It's very fitting, therefore, that on this Platinum Jubilee the Woodland Trust has partnered with the Queen's Green Canopy Project to invite everyone across the UK to plant a network of trees, avenues, copse, and whole woodlands, in honour of the Queen's service and legacy From a single sapling in a garden to a whole wood, the aim is to create 70 Platinum Jubilee Woods of 70 acres each – every tree bringing benefits for people, wildlife and climate – now and for the future. And so, I took this opportunity to visit the Trust's Diamond Jubilee Wood in Leicestershire, where I met the man responsible for looking after the woodland, David Logan. David: So, this is Queen Elizabeth Diamond Jubilee Woods and it's a flagship site of a scheme that the Woodland Trust has to celebrate the Queen's Diamond Jubilee. So, what we endeavoured to do, and we've successfully done. We created 75+ woods of 60 acres or more and they were the Queen's Diamond Jubilee Woods. And, this is the flagship one of those woods, making it the largest single-owned block of native broadleaf woodland in the National Forest area. Adam: What immediate, I mean, we've not really gone in yet, but what immediately surprises me is this is really quite, well, it's a very young wood. Yet, it already but quite mature I mean, were these species, was this all planted? David: You're looking at a hedgerow and beyond that are the trees at the same height as the hedgerow. So yeah no, it is to me, you know, a refute to people who say 'why bother planting woods because you never get to walk under the bows of the trees' but these, only ten years ago this was planted and when you get into the site, you're definitely in a wood now 10 years later. Adam: those trees are all on the quite tall… David: They must be 10-12 feet tall. Adam: Yeah, looks even taller to me but then I'm unsure. Okay, go on, lead on. Tell me a bit about then what this site sort of is, why it's special, you know, biologically special? David: Because of, it's big! You get that really wild feeling when you're here. So, you know, 267 hectares are completely devoted to nature. There's not, well, I don't think there's anywhere else particularly like that in this part of the country. And, so yeah, it does stand out. We get lots of different wildlife: lots of birds, lots of invertebrates, butterflies and a really good show of wildflowers as well. We will see some of them. Adam: And what was here before? Was it just an empty field? David: No. So, it was an open cast coal mine. So, the whole lot was owned by UK Coal and then the central part of it where the lake is was the largest hole in Europe! When it was done 750,000 tonnes of coal came out. Adam: Wow! So, I mean, there's no sign of that at all, because open cast mining can be a real scar on the land, can't it? I mean, it doesn't look pretty and then yet is there still a hole, was that all backfilled? David: That's all backfilled yeah so all of the substrate that wasn't coal will have been stored around the site and then all put back in the hole. Adam: How long have you been here then? David: So, I've been site manager for three years now, so.... Adam: Right. David: Yeah, seen it develop. Adam: So, what sort of, I mean, three years is not a long time, especially in the life span of trees, but what sort of changes have you seen over that period? David: I think the biggest one recently is we took away all of the tree tubes and the fencing that the original kind of planting scheme relied on to protect it from deer and rabbits. Yeah, which has completely changed the way the site feels. So, no more sea of plastic tubes and no more fences to get in the way. So, you can get to walk where you like now, as well as the wildlife can get around the site a bit easier, and it really has changed the way it all feels Adam: In terms of the local community engagement and their use of this wood, what's that like? David: It's been great. Yeah, been great right from the outset, so, we had a lot of community involvement with the original planting and then again with extensions, voluntarily. Adam: And how well used is it by the locals then? David: Yeah, yeah, very well used, very rarely do you ever come to the car park and there's less than five cars in it. Adam: We're coming to, I can see... what's that building over there? That looks very pretty! David: So, that is what we call the welcome barn. So, I've got two buildings I've got on this site. I've got the welcome barn and I've got bird hide as well. Adam: Wow! So, what happens? Is there someone with tea and crumpets in the welcome barn for us? David: Unfortunately not no, but there are some interpretation panels that tell you the story of the site and a nice mosaic that was made by the volunteers as well, at the beginning of the site. And then a little compost toilet round the back! Adam: Laughs Okay that's good, good to know, good to know! And tell me about the bird hide then. David: So, the bird hide is yet another lovely building overlooking a lake. So, the lake was kind of formed by the sinking of the coal mine and the soil around it, and yeah, so just a nice bird hide, we'll go and look at it. Adam: What sort of birds do you get? David: The most exciting bird that we've had here is a hen harrier. Adam: Right! Wow! And look, and this welcome barn, this also seems to be unusual for a Woodland Trust site? You don't normally see these things. David: Don't normally get a building no, I'm lucky to have two! Adam: And look at... really, really lovely sort of mosaic on the floor – Woodland Trust mosaic which sort of looks quite 1950s like... Do you know how long this…? This can't be that...? David: No no, that was built when the barn was built and the site was created in 2012 and it's meant to, kind of, reflect the Roman history of the site. So, we've got a Roman road that we just crossed over there, and then we've got two areas of our underlining archaeology which we know are Roman on the site. And so, we know there's certainly a lot of Roman activity, hence a Romanesque kind of mosaic. Adam: So, just explain a bit about where we are. David: So, these are called the groves – The Royal Groves – as part of Royal Groves Walk, and as part of the creation of the site. There was a royal Grove created for each year of the Queen's reign, so, they're in a series of circles and each one has a post and people can sponsor the grove and the post and then they get their little plaque added to the grove post for their year. I believe that certain years become more popular than others for various reasons and, but yeah, you'll see all these names. My favourite one, I think, is just this one. This grove is dedicated to the dahlia. Adam: That's fantastic laugh dahlia appreciation society sponsors. So, tell me a bit about the trees we're seeing here, there's clearly a whole mixture. David: Yes. So, they're all native broadleaf trees. We have got birch and oak going round. There is no ash in this part of the wood because ash dieback was kind of discovered just as the planting was going ahead and so we're lucky. There is a compartment in the north which got ash put into it. You might see the occasional ash tree that's self-set. So, we've got a Jubilee Grove Trail going on at the weekend for the... to celebrate the Platinum Jubilee that's coming up, encouraging people to, kind of, wander around the trails, and we're going to have these tree rings, sections of a tree... one per decade of the Queen's reign and with various large events that happen within that decade there will be a tree ring. Adam: Will that be permanent? David: No, it'll just be for the month of June and there will be a large wicker crown somewhere onsite as well. Adam: That's all happening next weekend? David: Well, late this week, next weekend. Adam: You've got a lot of work to do. I'm amazed you've got the time spare to wander around with me. David: Yeah well. Yeah, yeah there's always... it's always a rare commodity time I'm afraid Adam. Adam: Now you didn't design this here? You're a new boy! David: I am a new boy here! Adam: So, who actually designed it? David: So, it was a lady called Kerrie who is here, here now. She knows lots more about the groves than me as the designer and helped put it all in. Adam: Brilliant, hi Kerrie! Kerrie: Hi Adam. I think I don't think I want to say that I designed the wood but... Adam: I was building you up! Kerrie: You were, thank you, but the layout of the groves and... I was certainly involved in the design of the concept and then how we spoke to individuals about whether they would like to be involved in this. So, it was an opportunity for families to dedicate their own acre of woodland and help us develop this wood, as well as being part of a feature that enables you to walk through the Queen's reign. Kind of, physically walk through every year of the Queen's reign, so it's really special. Adam: Which is amazing, isn't it? Kerrie: Yes, it is. Adam: Tell me a bit about this royal connection because this wasn't, sort of, just a random, sort of, marketing idea. There's a really good basis for this royal connection isn't there? Kerrie: Absolutely, yeah so, at the Woodland Trust in 2011 we started a project to celebrate the Queen's Diamond Jubilee – so, sixty years of the Queen's reign – and we wanted to enable people across the country to plant trees and create woodland. We did that in a number of ways. So, we had this aspiration to create sixty Diamond Woods each of 60-acres in size, which is a big, really big commitment! And we also encourage people to create Jubilee Woods which were much smaller copses of trees in community spaces. And we distributed trees to schools and communities all across the country. Actually, it was hugely successful so the wood we are here at today is the Woodland Trust's flagship Diamond Wood. And then we had landowners and organisations and local authorities who also wanted to be involved. We needed to create 60-acre woods, we didn't know if we'd get to sixty actually inaudible we did get to sixty, we surpassed that, we had seventy-five woods at that scale created! Adam: So, seventy-five 60-acre wood Kerrie: Plus woods yeah, amazing, so, it's the first sixty of the Diamond Woods and then we have fifteen woods that we call the Princess Woods. Adam: Amazing, and so this was to commemorate that reign, and this is a lovely theme though! You can wander through the years of the Queen's reign. But the royal connection to woods is long and deep, isn't it? Kerrie: It is yeah. So, we were really fortunate that Her Royal Highness the Princess Royal was patron of that project. But there's a long and well-established connection between the royal family and tree planting, and as part of the project that we did we wanted to map all the woods that were created, and the trees that were planted. So, we copied... Adam: So, for the, for the queen? Kerrie: For the Queen's Diamond Jubilee. So actually, we took inspiration and sort of copied the Royal Record that had been done previously to mark a coronation. So, we actually have physically created and produced, published a Royal Record which is a huge red tome and that charts where all those trees are. And this is something that had already been done before the Queen's father. It's actually very heavy and so we have a copy at our office in Grantham, there is a copy in the British Library, and we gave a copy both to the Princess Royal and to the Queen. Adam: There are lots of royal connections to trees and tree planting even beyond Queen Elizabeth. So, tell me a bit about that. Kerrie: That's right, yes. So, in the 1660s Charles II commissioned several avenues of sweet chestnut and elm in Greenwich Park and in 1651 he hid from pursuers inside an ancient oak during the English Civil War. and I think that's one of the reasons actually that you see so many pubs called the Royal Oak. Adam: Right okay because he hid in one? Kerrie: He hid in one yeah. Adam: Now you came... when did you see the hole in the ground? This was an open cast mine? Kerrie: Yes. Adam: You saw that? Kerrie: Yes, before any trees were here. So, I can't believe it's been several years since I've been here today, and it is now it's a wood! Adam: Yeah, there is no sign of that is there? Kerrie: No absolutely not, a complete transformation. Adam: It is amazing, isn't it? How quickly really that the natural world can recover. I mean, it needs a bit of help obviously and certainly in this circumstance. But no sign of what must have been really quite horrific bit of landscaping. Kerrie: Yeah. I think given how stark it felt at the beginning and when we first saw all trees grow in the ground here. It is genuinely remarkable for the transformation in a ten-year period of time! You can hear the birds, the trees are overhead, you know, we've seen butterflies, caterpillars... It really feels like nature has reclaimed this space it's really really exciting Adam: And when you start, I mean, look it's already done! It's a success! It looks fantastic, but when you started was this always a ‘this is gonna work' or at that stage did you think ‘this looks horrible, this might be a disaster, no one might come, no one might get on board with this project'? Kerrie: Well. I think we all had the vision, we all had hope. There are colleagues of mine that have been working at the Trust for longer than me who knew how this would look. I just didn't know that. This is one of the first projects I worked on so, to see it within ten years, the change that's the thing that I find you know really amazing! I thought I would have to wait much longer, and I'd be coming back with grandchildren to say look at this, but actually, here we are within a decade and it is transformed. Adam: Brilliant! Alright, well let's move on, let's find David again. Kerrie: Well, David on a previous visit has actually shown the Princess Royal around this wood. So, in terms of royal connections David has been a royal tour guide. Adam: Okay, so we have a living royal connection here? Kerrie: We do. Adam: Look here's a little bench, I might just sit here for a while. Brilliant, ah there's a dedication, what does it say? 'In honour of Sally Whittaker who believed in the beauty of wildlife and protecting it'. I have to say I always do like stopping at a bench and reading those dedications. Brief pause So, David, I'm not the only super important person you've taken around this woodland, am I? David: You're not the only super important person maybe, you are charming Adam! Adam: Ahhh thank you that's very sweet, very sweet laughs come on tell me about the even more important people you've taken around! David: So, yeah well, the most important person I guess would be Princess Anne, the Princess Royal, alongside Darren [Moorcroft] the CEO of the Woodland Trust. So, I was pretty nervous that morning, to be honest. The CEO, I'd never met him before and obviously a member of the royal family! But yeah no, I remember being nervous at the beginning, and then by the end of the day when I finally said goodbye to Princess Anne I was longing to spend a bit more time with her. She is incredibly charming, yes. Adam: Yeah. So, we come to a waymark, which? It's left, is it? David: Follow the blue and white arrows. Adam: Right so, if there are... there two different paths? Does blue and white mean anything or? David: Yeah. So, there's three waymarked trails around the site and we just happen to be happening on a little bit that's on two of those. So, there's the woodland walk which is the longest walk around the whole of the wood, and then there's the Royal Groves Walk. And then there's the lake walk as well Adam: Right so, explain a bit about where we're heading off to. You're taking me into the centre of the woods, it feels like? David: Yeah. So, we're continuing along the groves and eventually, we will get to a broad open vista, and you will be able to see most of the features of the site. Adam: So, we are already walking out to what looks like a less wooded area. David: Yes, we're kind of skirting the western edge of the site now and then... Adam: It's a big site, isn't it? how long will it take to walk over the whole thing do you think? How long are these paths? David: Like a good tour of every feature of the site here's looking at half a day really, probably, and that's with a bit of pace on. Adam: I've only got short legs laugh so I'd add a few hours. So, there's another one of these posts. Shall we just have a look? 1985 were through to, anyway so... David: Green woodpecker there, did you hear? Adam: Oh no wow! I missed out, I've been looking out for posts, I missed the green woodpecker. So, we're just coming out of a rather wooded area into – it suddenly opens up very dramatically – and look at that it's a very different view! So I can see a lovely wildflower meadow almost and then at the bottom a huge lake! A huge lake. So, this is where the old open cast mining just sunk down a bit and has since got naturally filled? David: Yeah. So, what you're looking at now is the epicentre of the open cast coal mine and obviously the wider landscape around it. So, yeah that's our lake and the end of the groves walk. So, you can just see the final three or four grove posts just heading off down the hill. And then this was an open area left to retain the view and then on the other side of the lake we've got a 5-hectare exclusion zone so there's no paths in that area. Just, no paths in the area, just to allow nature to completely have five hectares for resting birds et cetera. Adam: Let's go down because I think... David: We've got something else to show you. Adam: Sorry go on, rushing ahead, what is it? David: So, we got this piece of land sculpture that was created by an artist called Rosie Levitan and there are calls every now and again. We get somebody asking if we can put some kind of panel up to explain what it's all about, but the artist herself expressly asked that not to happen. So, I think she is more inclined to allow you to kind of figure it out for yourself or come to your own conclusions as to what it's all about. So, it was created with money from the Arts Council at the inception of the site. So, no money that could have gone into conservation went into creating this piece of art. But yeah, I'll leave you to... Adam: Sorry, this is it? This is it? David: This is it; I'll leave you to come to your own conclusions. Adam: So, when you said a piece of art, I thought you meant like a large statue of something out of wood, but actually, this is a sort of an earth tiered... almost like amphitheatre going downwards counts I think 5 tiers there. David: It's in a spiral so you can walk around the outside which takes a lot longer than you think! Adam: Laughs Yeah right I think I might take the direct route down, but to be honest, it seems like a brilliant place to put on a play! David: Yes! That's my thoughts as well, yeah I'd love to get a play here. Adam: Yeah! Have you ever gone down then done a soliloquy? David: Errr not, well, do you want me to? Adam: Yes, if you if you've got a piece ready laughing David: Unfortunately, I haven't. I mean I could maybe do a jaunty jig or something like that? Adam: Yes, well look, we're recording. David: Yes, well, no let's not! Adam: That's a shame laughing I think you probably come down when there are not many people around. So, if you ever do see a man in Woodland Trust clothing doing a jaunty jig at the bottom of this amphitheatre-like piece of art you know who it is and that he just wouldn't do it for us laughter very nice, very nice. Adam: So, you're gonna take me down to the lake now? David: Yeah, take you down to the lake. Adam: And it's there that we are going to meet one of your volunteers, is that right? David: That is right yep, a chap called Gerald. So, he's been volunteering with us on the site since the site was created and in various different roles Adam: And I've just gotta say it is beautiful walking down here because there are just huge numbers of buttercups aren't there? David: Yes, it is stunning, isn't it? Adam: It is stunning, it's like a sort of it's like a painting! It's like a painting, brilliant! David: This is our pond dipping platform. Adam: There's a cuckoo Bird song Adam: That's very good, so Gerald, sorry, we're distracting you. I can see you distracted by some swans coming over with their little babies. They're coming over to investigate you think? Gerald: I think they are yes! It's good to see it, I, they must be relatively young because a few weeks ago they were they weren't about so it's... Adam: Right. We'll let these swans investigate us as I chat to you so tell me. I'm told you do tonnes on this site. What was the local community's feeling when the trust took over this site and sort of explained what it wanted to do? Gerald: Generally, really good because you can imagine if you've got an open cast colliery on your doorstep a wood is a big improvement! Adam: Well, that's what I was going to say, because sometimes there is, sort of you know, some resistance or sort of misunderstanding about what is trying to happen. But here you go ‘surely this is going to be better for everybody'? Gerald: Yeah, so I think, overall, the mood was very good. There will be people who say yes but why don't you do this because this is better? We had some debates about whether we could put in some fruit trees, for example, and because we're in a sort of prime growing area in Leicestershire here. And there were debates about whether that was acceptable, whether they were native trees or not. But it was all good healthy discussion and it's interesting to see how the trees have grown and they have particularly grown well on this area here which was the open-cast. When you think – this all was disturbed ground that was put back – the trees have grown probably better here than they have in parts of what was the agricultural land. Adam: I have to stop because the swans have properly come up to us now. There they are! How involved do you get now, now it's well established what do you actually end doing? Do you come down here most weeks or? Gerald: It's a couple of times a month at least now. During the pandemic, it was sort of very limited of course, and well before that time, I used to do a monthly walk which was really... Adam: This is your guided monthly walk? Gerald: Yes guided, with a series of friends and colleagues. Adam: Do you have a favourite part of the wood? Gerald: Actually, probably near the bird hide just along from there. Adam: Why? Gerald: I don't know really. It's gotta mix, you got a mix with the water, you got the mix of the trees, a bit of the open meadowland here, and yes, the bird hide does add a bit of character to the place. I think we're lucky to have that there. Adam: I think David's waiting for me there. Shall we go over and have a chat with him? We've paused for a moment because we're just passing a black Poplar and a little plaque next to it saying it was planted by BBC Breakfast on 1 June 2012 in celebration of Her Majesty the Queen's Diamond Jubilee. Gerald: Yes, we have the two black poplars here. Adam: There's another one here. Was that planted by ITV for balance? Laughter Gerald: Oh no much more prestigious. Adam: Oh sorry, yes it was planted by Her Royal Highness the Princess Royal who is patron of the Jubilee Wood Project on the 1 of June 2012. And doing very nicely! Gerald: Yes, they are indeed! They've both grown quite a bit in the last year, I think. Adam: Very nice! So, what's the way to the bird hide? Is it round here? Gerald: Just go up to post on turn left. It's at the moment, hidden by a willow screen. It's a piece of willow art, although it's not particularly obvious Adam: You can see they've been bent over at the bottom haven't they to form a sort of willow fence. Gerald: If you were to look down on it from a drone it will be an outline of a skylark. It's a little bit overgrown and that's on our task list for next winter to prune that and try and weave in the lower bit. So, it's going to task our skills! Laughter Adam: We're going into the bird hunt now. We're in the bird hide. David, ironically having seen lots of birds the moment I get in here actually I can't – oh I think there is one over there – but do people, is this a good actual spot to be watching birds from? David: Yeah, yeah because it gives you that cover so the birds don't necessarily know you're here. It is quite a light bird hide though but it was created in conjunction with the Leicestershire Wildlife Trust, so they must have built a few bird hides, but yes. Adam: To be honest it's lovely weather today. But if it was raining a little bit this would be a fantastic place just to sit down for a while, wouldn't it? David: Yes, it would yeah. Just get out of the rain, I've done that a couple of times! Adam: Right, fantastic, alright well where are we going to next? David: So, there's just one last thing I would like to show you onsite which is just a short walk back up the hill. Adam: Okay, what is that? David: It is called the photographic plinth and so it's basically some encouragement for people to keep on visiting the site year after year. So, what we've got is we've got a plinth that you put your camera on and then a brick area that you supposedly stand on so you can get exactly the same photograph every year. You can visit the site and you can watch your family grow as the wood grows around you Adam: What a brilliant idea! What a brilliant idea. Okay, okay so David so there is a plinth. David: Yes, this is our photographic plinth. What it needs is updating, because obviously when this was made smartphones didn't exist and now you wouldn't really get a smartphone balanced on that! Adam: Yes, that's true David: It needs a little block bit putting on so you can rest a phone on it. Adam: So, it's not only the trees which have changed, it's the technology that it's referring to. I'll tell you what, I mean, obviously I'm going to have my photo taken aren't I? Can I give you my, I haven't got a camera, I do have my smartphone, so I'll go stand... I'll go stand here, and in a couple of years I'll come back and I'll have even less hair. Hold on a second – do I look better with my hat off or on? Pause Neither. I feel that was an undiplomatic pause I felt. David: What I was thinking is that I need to see both to answer correctly, that's why I was thinking. So, I'm gonna take it from the correct position. Click There you go Adam: I'm not confident that looked any good from the look on your face. I'm not going to look at it now I'll check it when I'm home. There is clearly a lot more to it than I've managed to explore today but what a wonderful treat, on a lovely, beautiful Monday, in this very special royal year! To come and celebrate that here! thank you very much David. David: that's quite alright Adam it's been a pleasure Footsteps Adam: Well, that was a great walk and thanks of course to everyone who arranged that. It's a fantastic place to visit especially in this Royal Jubilee year. If you know about these things, you can find it at grid reference SK 390132. The nearest train stations are Burton, Tamworth and Loughborough, although they're all a bit of a car journey, I have gotta say, from each of those stations. But if you're looking for a woodland perhaps nearer to you do have a look at the Woodland Trust website which has a special site to find a wood near you it is woodlandtrust.org.uk/findawood. I do recommend you do that until next time happy wandering. Voiceover: Thank you for listening to the Woodland Trust Woodland Walks. Join us next month when Adam will be taking another walk in the company of Woodland Trust staff, partners and volunteers. And don't forget to subscribe to the series on iTunes or wherever you're listening to us and do give us a review and a rating. Why not send us a recording of your favourite woodland walk to be included in a future podcast. Keep it to a maximum of 5 minutes and please tell us what makes your woodland walk special, or send us an email with details of your favourite walk and what makes it special to you. Send any audio files to podcast@woodlandtrust.org.uk and we look forward to hearing from you.
About DavidDavid is an AWS expert who likes to design and build scalable solutions that are fully automated and take care of themselves. Now he is focusing on selling his own products on the AWS Marketplace.Links: 0x4447: https://0x4447.com/ Products page: https://products.0x4447.com TranscriptAnnouncer: Hello, and welcome to Screaming in the Cloud with your host, Chief Cloud Economist at The Duckbill Group, Corey Quinn. This weekly show features conversations with people doing interesting work in the world of cloud, thoughtful commentary on the state of the technical world, and ridiculous titles for which Corey refuses to apologize. This is Screaming in the Cloud.Corey: Today's episode is brought to you in part by our friends at MinIO the high-performance Kubernetes native object store that's built for the multi-cloud, creating a consistent data storage layer for your public cloud instances, your private cloud instances, and even your edge instances, depending upon what the heck you're defining those as, which depends probably on where you work. It's getting that unified is one of the greatest challenges facing developers and architects today. It requires S3 compatibility, enterprise-grade security and resiliency, the speed to run any workload, and the footprint to run anywhere, and that's exactly what MinIO offers. With superb read speeds in excess of 360 gigs and 100 megabyte binary that doesn't eat all the data you've gotten on the system, it's exactly what you've been looking for. Check it out today at min.io/download, and see for yourself. That's min.io/download, and be sure to tell them that I sent you.Corey: This episode is sponsored in part by our friends at Sysdig. Sysdig is the solution for securing DevOps. They have a blog post that went up recently about how an insecure AWS Lambda function could be used as a pivot point to get access into your environment. They've also gone deep in-depth with a bunch of other approaches to how DevOps and security are inextricably linked. To learn more, visit sysdig.com and tell them I sent you. That's S-Y-S-D-I-G dot com. My thanks to them for their continued support of this ridiculous nonsense.Corey: Welcome to Screaming in the Cloud. I'm Corey Quinn. Today's promoted episode is brought to us by 0x4447. And my guest today is David Gatti, their CEO. David, thank you for taking the time to speak with me today.David: Thank you for getting me on the show.Corey: One of the things that I find fascinating about what you do and where you come from is that for the last five years, you've been running an independent company that I would classify based upon our conversations as pretty close to a consultancy. However, you've gone down the path that I didn't when I set up my own consultancy, and started actually selling software—not just software: Solutions—as a packaged thing that you can wind up doling out to various customers, whereas I just went with the very high touch approach of, “Oh, let me come in and have a whole series of conversations with people.” Your scale is a heck of a lot more. So, do you view yourself these days as a software company, as a consultancy, or something else entirely?David: So, right now, I did put aside the consultancy because yeah, one thing that I realized, it's possible but it's very hard to scale, it's also hard to find people at the same level. So yeah, the scalability of the business is quite hard, whereas with software sold on the AWS Marketplace, that is much easier to scale than what I was doing before, and that's why I decided to take a break from consulting and focusing one hundred percent on the products that I sell on the AWS Marketplace to see how this goes and how it actually works, and can a business be built around it.Corey: The common wisdom that I've encountered is that consulting, especially when you're doing it yourself, is one of those things that is terrific when you find yourself in the position that I originally did of your employer showing up and, “Knock, knock,” “Who's there?” “Not you anymore. Get out.” And there's a somewhat, in my case, limited runway as far as how long I've got before I have to go find another job. With consulting, you can effectively go out and start talking to people, and provided that you can land a project, it starts throwing off revenue, basically immediately, whereas building software, building packages, things that you end up selling to people, it's almost like a real estate business on some level, where you have to take a lot of investment up front to wind up building the thing, where—because no one is, generally speaking, going to pay you spec work to go ahead and build something for 18 months and come back and hope that it works.David: Right.Corey: I also bias towards the services because I'm bad at writing code. You, on the other hand, write things that seem to actually work, which is another refreshing difference.David: Yes. So, I did that, but now I have a guy that is just a Linux expert. So, you were saying that there is a high investment in the beginning, but what actually—in my case what happened, I've been selling these products for the past three years basically as a hobby. So, when I was doing AWS consulting, I was seeing, like, a company has a problem, a repeating problem, so I was just creating a product, putting it on the Marketplace, and then sending it to them. So basically, they had a situation where I can manage those projects to update when there's a need to do an update, and there was always a standardization behind that, right?So, if they had, you know, five SFTP servers, and there was a need to make an update, I was making the update on my image, putting it on the Marketplace, and then updating all those servers in one go in a much quicker fashion then managing them one by one, right? And so I had this thing for three years. So now, when I started doing this full-time, I have a little bit of a leap on what's going on. So, I already had a bunch of clients that are using their products, so that actually helped me not to have to wait three years before I saw any revenue coming in.Corey: I always thought that the challenge behind building something like this was that well, you needed to actually be conversant in a programming language; that was the thing that you needed to package and build these things. But I take a look at what you have on the AWS Marketplace—and I will throw a link to this in the [show notes 00:04:39]—but you offer right now four different offerings: A Rsyslog server, a Samba server, VPN server, and an SFTP server, and every one of those four things, back in my DevOps days, I built and implemented on AWS, generally either from scratch or from something in the Marketplace—and I'll get to that in a bit—that didn't really meet a variety of needs. And every single time I built these things, it drove me up a wall because I had to do this without, like, solving a global problem locally, myself, to meet some pile of needs, then I had to worry about the maintenance of the thing, making sure that the care and feeding continued to work. And it just wasn't—it didn't work for me in the way that I wanted it to. It never occurred to me that I really could have just solved this whole thing once, [unintelligible 00:05:28] it on the Marketplace, and then just gone and grabbed the thing.David: Exactly. So, that was my exact thinking here. Especially when your work with the client, this [unintelligible 00:05:38] was also great [idea 00:05:39] because when you work with clients, they want to do things as fast as possible, right? So, can they say, “I need an SFTP server?” Of course, it takes, you know, half a day to set up something, but then they scream at you and say, like, “Hey, do the next thing. Do the next thing. Do the next thing.” And you never end up configuring the server that you're making a reliable way, sometimes you misconfigure it because, oh I forgot this option, and now everybody on the internet can access the server itself.Corey: Wait, screw up a server config? That doesn't sound like something I would do.David: Well, of course not.Corey: Yeah, no one [unintelligible 00:06:08] they're going to until oops.David: Yes. You're amazing and you're perfect, of course, but I'm not. And I was seeing, like, oh, you know, in the middle of the night, oh, I forgot this option. I forgot this. I forgot that.And so there was never a, basically, one place when the configuration just correct, right? And that was something that sparked my idea when I realized the Marketplace exists. It's like, oh, wait a moment, I can spend few weeks to do it, right, put it there and never worry about it again. And so if when a client says like, “Hey, I need this,” I can deploy it literally, in less than one minute. You have any of those products that actually I'm selling up and running, right?And of course, the VPN is going to be a little bit slower because it needs to generate all the certificates at the beginning, but for example, the SFTP one is just poof, you're deployment with our CloudFormation file, provide username and password, and you're up and running. And I see, for example, this thing with clients, which sometimes it's funny, when there's two clients that they use the SFTP server only once a day for one hour. So, every day is like one new instance created, then one instance removed, and one instance created and one instance removed. And so it keeps on going like that.Corey: The thing that always drove me nuts about building these things out was first I had to go and find something on those rare occasions where I used the Marketplace. Again, I wasn't really working in the same modern Marketplace that we think of today when we talk about the AWS Marketplace. It was very early on, the only way that it would deliver software was via, “Here's an AMI, grab the thing, and go ahead and deploy it, and it's going to have an additional hourly cost on. It the end.” And more or less the whole Henry Ford approach of, “Oh, you can get it in any color you want, as long as it's black.”So, back in those days, I would spin up an OpenVPN server—and I did this at several companies—I would go and find the thing on the Marketplace from I think it was the OpenVPN company behind the project. Great, I grabbed the thing, it had no additional cost through the Marketplace. I then had to go and get a custom license file from the vendor themselves, load the thing in, then start provisioning users. And this had no integration that I could discern with anything else we had going on, so all of this stuff was built through the web config on this thing, there was no facility for backing the thing up—certificate, material, et cetera, et cetera—so if something happened to that instance or that image, or we had to go through a DR exercise, well, time to reprovision everyone by hand again. And it was annoying because the money didn't matter. At a company scale, it really doesn't for something like this unless you're into the usurious ranges. It does not matter.It's the, I want to manage this simply and effectively in a way that makes sense, and in many cases in a way that is congruent with our on-prem environment. So, “Oh, there's a custom AWS service that offers something kind of like this. Use that instead.” It's, yeah, I don't like the idea, personally, of having to use a higher-level managed service that I'm very often going to need the most, right when things are getting wonky during an outage scenario. I want something that I understand and can work with.And I've always liked, even if I have all the latest whiz-bang accesses into an environment, in production environments, I spin up something like this anyway, just to give myself a backdoor in the event that everything else breaks. And I really like how you've structured your VPN server as far as backing up its config, sharing its configs, you can scale it to more than one instance—what a ridiculous concept that is—and so on and so forth.David: So, it's not more than one—I mean, yes, you can deploy to more than one time, but the thing that—because again, when you were saying, like, companies don't care about the cost, right? It's more about how annoying it is to use and set up, right? And so I'm one of those people that when I, for example, see things like I've been playing with servers since the '90s, right, and I was keeping rebuilding and recreating everything every single time from scratch.And, yeah, it was always painful. It took always a lot of time. For example, our server took six months to set up the right way. And also the pricing [unintelligible 00:10:11] the competition has is quite aggravating, I will say. Like, it's very hard to scale above a certain point, especially for the midsize companies.And the goal with the Marketplace is also, like, make it as simple as possible. Because AWS itself doesn't make it easy to be on the Marketplace, and it's almost, like, crazy how hard it is. So, for anybody who will like to—who might think, like, “Oh, I would like to try this AWS Marketplace thing,” I would say should do it, but be super patient. You cannot rush it because it's going to take you on average six months to understand how even the process of uploading anything and updating it and managing it is going to take it because their website that they've built has nothing to do with the console and it's a completely custom solution that is very clunky and still very old-fashioned, how you have to manage it.Corey: Tell me more about that. I've never gone through the process of putting something up on the Marketplace. To my understanding, you need to be an AWS partner in order to use the Marketplace, correct?David: No you don't have to.Corey: Okay.David: No. Thankfully not. I hope it's not going to do this thing is not going to change. [crosstalk 00:11:20]—Corey: Yeah. I wound up manifesting it into existence by saying that. Yeah. If you're on the Marketplace team listening to this, don't do that, please. I really don't want to get yelled at and have made things worse for people.David: Don't give them ideas. [laugh]. Okay?Corey: Exactly.David: No, it's anybody can do it. But yeah, how to add a new product. So, the process is you have to build an AMI first. And then you have to submit the AMI to AWS by first creating a special AMI role—sorry, I always get confused AMI, [IAM 00:11:51], I never—IAM is users. Okay.Corey: I think we have a few more acronyms that use most of the same letters. I think that's the right answer here.David: [laugh]. So, either IAM or AMI, whichever is responsible for roles, you have to create a special role to give AWS access to your AMI. Then you submit the image to AWS providing the role that they have to use. They scan it and they do simple checks to make sure that you don't for example, have SSH enabled with regular users, do some regular scanning to make sure that you're not using an image from ten years ago, right, of Linux. And once you pass that, you are able to actually create your first product.Then you have to write your title, description provide, for example, the ports that needs to be open, the URLs to separate resources, the pricing page, which takes on average one hour to fill up because let's say that you have 20 instances that you support, and for every instance, you have to write the price for that instance per one hour. Then if you want to have a discount of let's say 20%—because you can set it by the hour, or someone can pay you for the full year. And so for the full year, you might have a discount. So, you have to have also the price per hour discounted by the amount of percentage that you want, and then you have to repeat it 40 times. Because there is no way to upload that.Corey: That feels like the internal AWS billing system in some respects. “Well, if it's good enough for us it good enough for our customers.” And—David: [laugh]. Exactly.Corey: —now, I have empathy for the folks in the billing system internally; their job is very hard, but that doesn't mean that it's okay to wind up exposing those sharp edges to folks who are, you know, paying customers of these things.David: Right. And it'd be a simple thing like being able to import the CSV file with just two columns and that would be perfect. But no, you have to do it by hand. There is no other way. So hopefully—Corey: Or someone has to. Welcome to the crappiest internship of your life.David: Exactly.Corey: It feels like bringing people into data entry for stuff like that is cheating.David: Exactly. So, you do that and then I don't remember exactly what the other steps are to a new creating a completely new product because I did that three years ago, and so now, I'm been just updating those products, but yeah, then they have to review your submission, and once everything is okay, then your product is on the Marketplace, and you can—are already accept everything. If you, for example, want to have the image also available in some specific regions that are not the default ones, you have to enable this by hand. I don't remember anymore how, but it's not obvious.Corey: And you have to keep redoing this every time they launch a new region as well, I would imagine.David: So, they say that you can have enabled the option to automatically add it, but it still won't work. Well, it will work, but… let's say, so in my case, I'm using CloudFormation. I gave a complimentary CloudFormation file where if you want to deploy my product, you go to the documentation page, you click the orange button, and you basically provide the parameters, and you click next, next, next and the product is deployed within a few minutes.And in that CloudFormation file, I have a map of every AMI in every region. Okay? So, if they add a new region and they automatically add the AMI there, then if you don't get notified that there is a new region, you don't know that you have to update the CloudFormation file, and then someone might say, like, “Hey, David, why this product is not deployed in this region.” It's like, “Oops. I didn't know that they have to update the CloudFormation file with a new region.” Right?Corey: Yeah, I'm a big believer in ClickOps, the idea of doing things in the console, but everything you're talking about sounds like a fraught enough process that I'm guessing you have some form of automation that helps you with a lot of this.David: Yeah. So, I hate repeating anything more than once, so everything in my book is automated as much as possible. The documentation, for example, how I structure it, there is a section that tells you how to deploy it by just using CloudFormation file and clicking next, next, next, next until you have it. And then there's also the option if you want to deploy manually because you don't trust what the CloudFormation file is doing, right? Of course, you can see the source file if you wanted to, but sometimes people are a little bit wary about big CloudFormation files.In any case, I have this option, but they have this option as a separate thing. So, AWS has an option where you could add a CloudFormation file that goes with your product. The problem is to be able to submit a CloudFormation file natively so they will take care of it requires you to get Microsoft Office 365. Because they give you an Excel file that has, I think, a few thousand columns. And for example, numbers under [unintelligible 00:16:40], when you export, you save the final—or sorry, you export it, it will cut around 500 columns. So, you miss, like, two-thirds of what AWS will likely to send you. And why they do that, I have no idea. I don't know if they still do it after three years, but when I was doing it, they told me like, “Hey, this is the file. Fill it by hand.”Corey: About that time period, that was exactly how they did large-scale corporate discounts on custom contracts is that they would edit the AWS bill in Excel, or if not, the next closest thing to it because there were periodically errors that looked an awful lot like someone typo-ing something by hand.David: What—Corey: Computers are generally bad doing that, and it took an extra couple of weeks to get those bills, which is right around the speed of human.David: Wow.Corey: I see none of those problems anymore, which tells me, that's right, someone finally upgraded off of Microsoft Excel to the new level. Probably Airtable.David: [laugh]. Maybe. So, I don't know if that process is still there, but what they did, like, then I realized, oh, wait a moment, I can just have a CloudFormation file in S3 bucket publicly available and just use that instead of going through that process. Because I didn't want to pay on a yearly basis for a product that I'm going to use literally once a year. That didn't make any sense to me and so I decided I'm going to do it this way. That's why, yeah, if they add on a new region, I have to go out and update my own CloudFormation file because I maintain that myself, whereas they would maintain it for me, I guess.Corey: The way that I see all of the nuts and bolts of the engineering parts of getting all these things up and running on the Marketplace, it feels like it is finicky; it is sharp edges that AWS is basically known for in many respects, but without the impetus of making that meaningfully better, just because there's such an overriding business reason, that—it's not like there's a good competitor for something like this. So, if you want to sell things to AWS people in most frictionless way possible, it reflects on the AWS bill, causes discounting, counts for their spend commitments, and the rest, it's really the AWS Marketplace is the only game in town for a lot of that.David: Right. So, I don't know if they don't do it because they don't have enough competition or pressure because to me when I first started doing this AWS Marketplace, it felt to me like more Amazon than AWS, right? It feels more like an Amazon team was behind it and not people from AWS itself. It felt like completely something different. Not to mention, yeah, the console that they provide is something completely custom that has nothing to do with the typical AWS console.Corey: I've heard stories about the underpants store division's seller tools as well; very similar to the experience you're describing.David: Mmm. And also the support is different. So, it's not connected to the AWS console one. The good thing about it, it's free, but it's also only by email. And so yeah, it's a very weird, clunky situation where I mean, I'm someone that, I guess, loves the pain of AWS. [laugh].I don't know if that's a good thing or a bad thing. But when I started, I decided, you know what, I'm going to figure it out, and once I do, I'm going to feel happy that I was able to. Maybe that's their goal: It's to give us purpose in life. So, maybe that's the goal of AWS. I don't know.Corey: There are times I really wonder about that where it feels like it could be so much more than it is, but it's not. And, again, my experience with it is very similar to what you've described, where it's buying an AMI, the end. But now they're talking about selling SaaS subscriptions on it, they're talking about selling professional services—in some cases—on it. And effectively, it almost feels like it's trying to become the Marketplace through which all IT transacting starts to happen. And the tailwind that sort of is giving energy to a lot of those efforts is, if you have a multimillion-dollar spend commitment with AWS in return for discounting, you have to make sure you spend enough within the timeframe, 50% of all spend on the AWS Marketplace counts toward that.Now, other cloud providers, it's 100% of spend, but you know, AWS is nothing if not very tight with the dollar. So okay, fine, whatever. There's a reason for companies to go down that path. Talk to me a little bit about the business aspect of it because for me, it seems like the clear win, in the absence of anything else is—especially at larger companies—they already have a business relationship with AWS. The value to someone selling software on the Marketplace feels like it would be, first and foremost, an end-run around companies procurement departments.It's just oh, someone has to click a button and they're up and running, as opposed to going through the entire onboarding and contracting and all the rest, manual way. Other than the technical challenges of getting things up and running on it, how have you found that it works as far as getting in front of additional customers, as far as driving adoption? You could theoretically have—I imagine—have not gone down the Marketplace route at all and just sold this directly on your website, click here to buy a license file the way that a lot of stuff I used to as well, and would have cut out a lot of the painful building an AMI and putting it into the Marketplace story. What's the value to being in the Marketplace?David: Yeah, so in the beginning, the value was basically that it's on the Marketplace, as I was saying, I was using it with pre-existing clients, so it was easy for me because I knew AWS images were there. So, it was easy to just click my own CloudFormation file and tell the client after one minute, “Hey, it's up and running. You have a bunch of profiles for your VPN. Enjoy and have fun.” Right?That experience, once you have it on the Marketplace, it's nice because it just works. And you don't have to do much work. Then I realized that AWS, in the search bar in the console, when you were typing, for example, you know, you type EC2, S3, CloudFormation, to find the service, what they were doing originally is when you were typing in the search bar, you were getting the services of AWS, and then when there was nothing left, they were showing the results of the Marketplace, which was basically amazing because you have primetime in the console with your product, you had to do zero marketing, and you get every week, took new clients that are using our product. And the trend was growing pretty, pretty well.And that was a proposition that is just amazing. Like, nobody has that because you can have Fortune 500 companies using our product without doing anything. It just—is it simple to deploy? Yes. Does it provide value? Is the price great? And people were just using them. Fast forward now; what happened is AWS changed the console. And instead of showing, after the services, the Marketplace, like, now they show the sub-section of the services, they show the results from the blog, the articles, videos, whatever, I don't even know what they've put there—Corey: Originally, you could search my name in that search bar, and it would pop up a profile of me they did for re:Inforce in the security blog.David: [laugh]. There you go.Corey: “Meet Corey Quinn. A ‘cloud economist'—scare quotes and all—who does not work here. And it was glorious. Now, they've changed the algorithm so it pops up. “Oh, you want Corey Quinn, you must mean IoT Core.” So, that blog post is still there, but it's below the fold because of course they give precedence to a service that they have that nobody uses or understands. Because, Amazon.David: Yeah, of course. And so that was awful because suddenly I realized that, oh, I'm getting less and less new clients because you know, after six months, one year, people are shutting off their things because they're finished using them, and I will not getting new ones. But at that time, I was doing [AWS 00:24:06] consulting, so it's like, oh, maybe it was a glitch in the Matrix, whatever. I got lucky.But then after a few months, I realized, wait a moment. When I was working in AWS, I realized that the console results changed, and I went like, oh, that's what happened and that's why I'm getting less clients, right? So, in the beginning, that was a great thing and that's why I'm actually paying you to promote my business and my products because now there is no way to put the products in front of customers because AWS took it away. And so that's why I decided to actually go full-force on this to make sure that I promote as much as possible because that one cool feature that AWS was providing, they took it away for whatever reason because blog posts are more important than their partners, [laugh] I guess.Corey: Well, it depends on the partner and the tier of partner, and it feels like it's a matter—to be clear, full disclosure: I am not an AWS partner; I'm not partnered with any vendor in this space, for either real or perceived conflict of interest issues, so I don't have a particular horse in the race. But back when there were a small number of partners, the network really worked. Now, there are tens of thousands of partners, and well, what winds up being surfaced? Customers, as a result seem to be caring less about various partner statuses, unless they're trying to check a box on some contractual requirement. Instead, they just want the problem solved, and it's becoming increasingly challenging to differentiate just by the nature of how this works.I don't believe, in 2022, that you could build almost anything, and put it on the AWS Marketplace in isolation and expect that to suddenly drive adoption by the fact that you're there. It feels, to me, at least on the other side of the fence, that the Marketplace experience is all about, you go there and you look for the name of the thing that you already know that you want because you've heard about it from other means, and then you just click it and you go, and that's the end of it. It's a procurement story; it's not a discoverability story.David: Right. And yeah, so that's sort of a bit disappointing, and I even made a post on Reddit about it to just bring this up to AWS itself to say, like, “Hey, UI change is pretty severe.” Because I mean, they get a percentage of every hour, the products are running, so basically they shoot themselves in the foot by making less money because now they're getting less products are being shown to potential customers. So, yeah, that's a disappointing thing.When it comes to also you ask what other way there is to show their products to potential customers, so there is an option where AWS can help you out. And when I talked to them, I think last year, they said that if you reach $2 million in sales a year, then they will basically show you around other potential customers, right? Which is a little bit disappointing because especially if you're a small company like mine, it's pretty hard to get to that $2 million in a meaningful time. And if once you reach that point, you might go like, “Hmm, how is this going to help me if you now show me in front of other people?” So yeah.And of course, I understand them in a sense that if they show a product from the Marketplace to a big company and the product turns out to be of poor quality, then of course the client is going to tell AWS like, “Why you're showing us something that just doesn't do its job?” Right? But it'd be nice to have a [unintelligible 00:27:24] when you say, “Okay, you're starting out. After a few years, so we can show you to this midsize clients.” You don't have to go to, immediately, Fortune 500 companies. That doesn't make any sense, right?Corey: And I still—even the companies that are at that level, I've talked to them about how they've grown their business, and not a single one has ever credited anything AWS did to help them grow. Other than, “Well, they threw re:Invent, so we spent extortionate piles of money and set up a booth there, and the fact that we were allowed in the building to talk to people was helpful, I guess.” But it's all through their own works on this, I'm not convinced, to be very direct with you, that AWS knows how to effectively drive sales and adoption of things on their own Marketplace. That is an increasing source of concern.David: Right. And then there's no plan of what to do with a company that is starting on the Marketplace, once it's a few—or it's already a few years and established in the Marketplace and a big one. Yeah, they don't have any way to go about it, which is a bit disappointing. But again, I like a challenge. I like the misery of AWS, so I'm just doing it. [laugh].Corey: No, I hear you. Would you recommend other people in your position explore selling on the Marketplace, given the challenges and advantages both that you've experienced?David: So, if you were to start from scratch, it will take you, like, three years—maybe not three years, but it's not something that should be the primary revenue source of the business if you want to go into the AWS Marketplace situation because you have to have enough capital to do enough marketing to see if you can get in front of people. If you already do some consulting like me, where I did some stuff on the side, and then realized, oh, people are using it, people like it, they get some feedback, the want new features, like, “Oh, maybe I can start growing this bigger and bigger, right?” It's not something that's going to happen immediately. And especially the updating process that happens, it can get quite stressful because when you make an update—so you have a version of a product that's working and running, right? Now, you make an update and you have to spend at least a week or even sometimes two weeks to test that out to make sure that you didn't miss anything because you don't want people to update something and it stops working right?Corey: You can't break customer experiences on these things.David: Yeah. No.Corey: It becomes a nightmare.David: Because especially you don't know if, literally, a Fortune 500 company is using your product or, like, a tiny company that has only ten employees, right?Corey: Your update broke the file server with a VPN means it's unlikely that they're going to come back anytime soon, too.David: Right.Corey: You're also depending on AWS, in some respects, to steward the relationship because you're you don't have direct contact with your buyers.David: No. So, that's important thing. They don't give you access to the contacts; they give you access to the company information. So, I actually do have Fortune 500 companies using my products, but yeah, there's no way to get in touch with them. The only thing that you get is the company name, the address, the domain that they used to create an email. So, at least you can get a sense of, like, who this company is.But yeah, there is no way to get in touch if there is a problem. So, the only way that you can notify the customer that there's a new update is when you make an update, there is a text area that you can say what's new, what did you change, right? And that's the only communication that you get with the client. So if, for example, you do a big mistake, [laugh], you basically have that just little text box, and hopefully, someone reads it. But you know, AWS is known for sending 20 emails a week for every account that you open. Good luck getting through that noise.Corey: Hope that you don't miss the important ones as you go through. No—David: Exactly.Corey: —I hear you. These are problems that I think are on AWS's plate to solve. Hopefully, someone over there is listening to this and will at least reach out with a bit of a better story. I really want to thank you for taking the time to speak with me today. We'll include links, of course, to this in the [show notes 00:31:09]. Where else can people find you?David: They can find us basically on the product page of what we sell. So, we have products.0x4447.com/. That's where, basically, we keep all our products. We keep updating the page to provide more information about those products, how to get in touch with us, we provide training, demos, anything that you want. It's very easy to get in touch with us instead of—sometimes when it comes to AWS. So yeah, we are out there, pretty easy to find us. The domain—the company name is so unique that you either get our website or—Corey: Easy to find on Google.David: Yeah, so we're basically—the hex editor. And that's basically it. [laugh].Corey: Excellent. Well, we'll definitely put links to that in the show [notes 00:31:50]. Thank you so much for taking the time to speak with me today. I really appreciate it.David: Thank you very much.Corey: David Gatti, CEO of 0x4447. I'm Cloud Economist Corey Quinn, and this is Screaming in the Cloud. If you've enjoyed this podcast, please leave a five-star review on your podcast platform of choice, whereas if you've hated this podcast, please leave a five-star review on your podcast platform of choice along with an angry comment that makes sure to mention exactly how long you've been working on the AWS Marketplace team.Corey: If your AWS bill keeps rising and your blood pressure is doing the same, then you need The Duckbill Group. We help companies fix their AWS bill by making it smaller and less horrifying. The Duckbill Group works for you, not AWS. We tailor recommendations to your business and we get to the point. Visit duckbillgroup.com to get started.Announcer: This has been a HumblePod production. Stay humble.
Understand why your individual brilliance isn't enough when it comes to scaling up your business Find out how you can achieve the “business owner joy” that can guarantee help in growing your business profitably and sustainably Learn what are the three components that you should watch out and work on to achieve business growth Resources/Links: Wanting to Find Out How to Put Joy Into Your Business, Smile on Your Clients' Faces, and More Profit on Your Pocket? Learn out how to scale your business using your own individual brilliance: www.abundance.global Summary Do you have all these life and business goals but feel like you've been stuck at a business plateau? Have you been wanting to know how to scale up our business fast and sustainably? Are you ready to know more about how you can generate more clients, more profit, and more joy in your business? Dr. David Dugan is a highly sought-after Business Coach, Mentor, and Co-author of “Bullet Proof Business”. He has personally guided over 2000 business owners towards a better lifestyle. In this episode, Dr. David talks about how you can grow out your business sustainably and profitably through achieving the “business owner joy”. He also shares what are the top three common mistakes that you should be stopping or avoiding that can affect your business and self-growth. Check out these episode highlights: 01:25 – David's ideal client: “Ideal clients are entrepreneurs or business owners who have well-established businesses. They've got a proven concept. So they're already good at what they do.” 01:48 – Problem David helps solve: “The biggest challenge that we see for the well-established business is the question they ask themselves, “How do I scale my business?” and not really scale it, because no one's going to grow or scale their business into the plain.” 02:38 – Typical symptoms that clients do before reaching out to David: “Well, I'd like to start with a little bit of a story. Because in the business world, when you do an amazing job at helping tell a different story that– you know, you've heard it even in the last 12 months, there are business owners who have really struggled over the last year.” 04:52 – Common mistakes that people make before they find David's solution: “Three things that really stand out to me. Number one is they don't know how to read the scoreboard of business.” 06:11 – David's Valuable Free Action (VFA): “I think the first thing is what we've talked about right now, Tom, is to be intentional. Be intentional around your business. And then there is, even though, initially, I can seem a little bit warm and fluffy, there's a real specific structure.” 07:06 – David's Valuable Free Resource (VFR): Check out David's Website: www.abundance.global 07:44 – Q: How do you choose the best coach, someone to support you? A: And that is making sure they've got results and they can help you in what you're doing. Results-based. Tweetable Takeaways from this Episode: “Be intentional around your business.” -David DuganClick To TweetTranscript (Note, this was transcribed using a transcription software and may not reflect the exact words used in the podcast) Tom Poland 00:10 Welcome, everyone, to another edition of Marketing the Invisible. I'm Tom Poland beaming out to you from little Castaways Beach here in Queensland, Australia, joined today by David Dugan. David, good day, sir. Welcome. David Dugan 00:22 Good day, Tom! Tom Poland 00:22 Where are you hanging out? Where are you calling in from? David Dugan 00:24 I mean, Brisbane, so just down the road from your place. Tom Poland 00:27 Bris-Vegas, as we call it here. Voted on more than one occasion the world's most livable city, by the way, folks, so nice part of the world to be in. For those of you who don't know David, he's actually Dr. David Dugan. He is a highly sought-after Business Coach. He's got a global business. He's a mentor and co-author of “Bullet Proof Business”. And he's personally guided over 2000 business owners and entrepreneurs to create a better lifestyle and a better business. So brings us nicely, David, to the title of this interview which is, “How to Generate More Clients, More Profit and”- drum roll, “More Joy in Your Business”. And personally, I just love the fact that we've got someone out there like David who's injecting joy into business because so many people feel like their business is a grind. And it doesn't have to be that way. So in seven minutes, David is going to share with us how to transform your business into one that gets more clients, more profit, and more joy. David, our time starts now. Sir, question number one, seven minutes, who is your ideal client? David Dugan 01:25 Ideal clients are entrepreneurs or business owners who have well-established businesses. They've got a proven concept. So they're already good at what they do. That's the first part. The second part is they have a very high commitment to growth– growth in themselves, and especially growth in their business, Tom. Tom Poland 01:41 Beautiful! And why wouldn't you want to grow both yourself and your business? Question number two, six and a half minutes left, what's the problem you solve? David Dugan 01:48 For, I think, the biggest challenge that we see for the well-established business is the question they ask themselves, “How do I scale my business?” and not really scale it, because no one's going to grow or scale their business into the plain. And that's the biggest thing and people hit this plateau. So the problem we solve is we help people to scale their business to create a true asset that can work without them. And without having to jump on the flavor of the month, marketing thing, or being overstressed, or running out of cash, but how to do it sustainably and profitably. Tom Poland 02:19 And joyfully, by the sound of it! David Dugan 02:21 And joyfully, well it's a big deal, exactly. Tom Poland 02:23 So six minutes left, sir. Question number three, what I'm up to here are the typical symptoms that your ideal clients experience before they start working with you. What's going on in their life, or their business that might give listeners here a bit of a heads up that they should find out more about what you do? David Dugan 02:38 Well, I'd like to start with a little bit of a story. Because in the business world, when you do an amazing job at helping tell a different story that– you know, you've heard it even at the last 12 months, there are business owners who have really struggled over the last year– the uncertainty of business, how to get leads, there's a why what you do, what you do, how to lead their team and how to get more cash flow. Then there are other people that because of the industry they're in, they've really cranked it. They've done really, really well. What ends up happening, though, is they get to a place and go, “Oh, my hell! You know, what am I doing here? I've got a bit of an imposter syndrome.” And then they start struggling to lead their team. They start to feel overwhelmed with all the things that they need to do. I think it's time we tell a different story, a story of hope, a story of confidence, and a story of true sustainable success, and what we talked about, which is “business owner joy”. So, for example, one of our members runs a construction tight in the construction space, was a bit over the seven-figure business, in business for quite a few years, and he came to us stressed around what, you know, he reached a plateau of his individual brilliance. And it was about two and a half years that we've helped to shape that business so it doesn't need having worked in it. He's created a true asset that gives him money, gives him time, and gives him the place to make a bigger impact on the planet. And those three things together are what we call “joy”. And right now, as we're speaking, he's in negotiations, and again, this was just a relatively small seven-figure business. He's going to sell that business for $13.4 million, well technical all-around that. In the process of doing that, we unpacked his intellectual property. We always leave the genius in, pull that out as a second business, and then about three months' time that business is going to sell for over $40 million. He's only 35. So that gives you a bit of an idea. Once you are intentional around the business and go in and go, “What do I want to have out of it?” around those three categories– money, time, and impact. And you join those together, that's how you create true joy. And for him now, he never needs to work again. He's got what we call “intergenerational wealth”. Tom Poland 04:37 Great story! Question number four, we've got three and a half minutes left. Some of the common mistakes. So folks like this, obviously, sounds like he was struggling a bit- successful business but still feeling stressed, etc. What would you say are some of the common mistakes that folks like that have made before they find your solution? David Dugan 04:52 Yeah, three things that really stand out to me. Number one is they don't know how to read the scoreboard of business. There are five financial dials that everyone needs to know– what they are, and know what they are, and then they need to know how to read. And that's the first thing! If you can't read the scoreboard- there's a one by, “If you can't read the scoreboard, then how do you know if you're winning or losing.” And so that's a very big one, and also helps you to shape up your product offerings. So that's big. And the second thing is that people need to go to principles around their lead generation. This is what you help at, Tom, with what you're doing. All we see is people are jumping from one bright, shiny object to the next one. And they have “flavor of the month” marketing rather than things that are more sustainable. That's the second one. And then the third one is, most of the people we work with have either a tertiary qualification or they've gone through many years of the University of hard knocks, they're highly skilled at what they do. They think that their own individual brilliance is going to help them because it got them to be successful, but they think that “Well, I should know how to do it. And that I need to do a little bit more to get to the next one.” So those are the three things around are, the scoreboard, how to do effective, consistent lead generation, and, number one, thinking that their own individual brilliance will be the thing that will get them to the next level. Tom Poland 06:02 So true! Thank you for that. Two minutes left. Question number five, what's one valuable free action like a top tip, not going to solve the whole problem but might get people to head in the right direction? David Dugan 06:11 Yeah, totally! Well, I think the first thing is what we've talked about right now, Tom is to be intentional. Be intentional around your business. And then there is, even though that, initially, I can seem a little bit warm and fluffy, there's a real specific structure. I've done 18 years in the military, served in the Middle East, was in the tsunami when hits. So we have a structure that we have which is understanding how do you map the financial goals into the time goals and into the impact goals. And all three of them need to be matched. So that you start off with that whole Stephen Covey, begin with the end in mind. Really begin with the end in mind so that you can have the business- you tell the business what you want out of it. Tom Poland 06:48 And that's what you mean by being intentional, being clear about what you want the business to look like, what's going to come out of it, what you're going to put into it. Get very conscious, very clear. Thank you for that! We've got one minute left, two questions to go. One valuable free resource. Where can we direct people to so they can find out more about this? I believe you have a joy playbook. David Dugan 07:06 We do! We have a Joy Builder Roadmap Playbook. So what we're going to do, on our website, www.abundance.global. If you jump on the website there, there is an “Explore & Learn”. There'll be a heap of videos but, specifically, there's one that has the “Joy Build a Roadmap”. It's a PDF. It's very structured. It's going to take you from 3, 2, and 1 year. It's going to connect everything from your team, right through to your promotions. Really, anyone can do it. Tom Poland 07:32 So abundance.global. Look for the “Explore & Learn” tab and then have a look for the “Joy-” David Dugan 07:38 “Builder Roadmap.” Tom Poland 07:39 Well, thank you, sir. We've got 12 seconds left. What's the one question I should have asked you but didn't? David Dugan 07:44 How do you choose the best coach, someone to support you? And that is making sure they've got results and they can help you in what you're doing. Results-based. Tom Poland 07:53 Look for evidence. David, thanks so much for your time. Tom Poland 07:57 Thanks for checking out our Marketing The Invisible podcast. If you like what we're doing here please head over to iTunes to subscribe, rate us, and leave us a review. It's very much appreciated. And if you want to generate five fresh leads in just five hours then check out www.fivehourchallenge.com.
Understand why your individual brilliance isn't enough when it comes to scaling up your business Find out how you can achieve the “business owner joy” that can guarantee help in growing your business profitably and sustainably Learn what are the three components that you should watch out and work on to achieve business growth Resources/Links: Wanting to Find Out How to Put Joy Into Your Business, Smile on Your Clients' Faces, and More Profit on Your Pocket? Learn out how to scale your business using your own individual brilliance: www.abundance.global Summary Do you have all these life and business goals but feel like you've been stuck at a business plateau? Have you been wanting to know how to scale up our business fast and sustainably? Are you ready to know more about how you can generate more clients, more profit, and more joy in your business? Dr. David Dugan is a highly sought-after Business Coach, Mentor, and Co-author of “Bullet Proof Business”. He has personally guided over 2000 business owners towards a better lifestyle. In this episode, Dr. David talks about how you can grow out your business sustainably and profitably through achieving the “business owner joy”. He also shares what are the top three common mistakes that you should be stopping or avoiding that can affect your business and self-growth. Check out these episode highlights: 01:25 - David's ideal client: “Ideal clients are entrepreneurs or business owners who have well-established businesses. They've got a proven concept. So they're already good at what they do.” 01:48 - Problem David helps solve: “The biggest challenge that we see for the well-established business is the question they ask themselves, "How do I scale my business?" and not really scale it, because no one's going to grow or scale their business into the plain.” 02:38 - Typical symptoms that clients do before reaching out to David: “Well, I'd like to start with a little bit of a story. Because in the business world, when you do an amazing job at helping tell a different story that-- you know, you've heard it even in the last 12 months, there are business owners who have really struggled over the last year.” 04:52 - Common mistakes that people make before they find David's solution: “Three things that really stand out to me. Number one is they don't know how to read the scoreboard of business.” 06:11 - David's Valuable Free Action (VFA): “I think the first thing is what we've talked about right now, Tom, is to be intentional. Be intentional around your business. And then there is, even though, initially, I can seem a little bit warm and fluffy, there's a real specific structure.” 07:06 - David's Valuable Free Resource (VFR): Check out David's Website: www.abundance.global 07:44 - Q: How do you choose the best coach, someone to support you? A: And that is making sure they've got results and they can help you in what you're doing. Results-based. Tweetable Takeaways from this Episode: “Be intentional around your business.” -David DuganClick To Tweet Transcript (Note, this was transcribed using a transcription software and may not reflect the exact words used in the podcast) Tom Poland 00:10 Welcome, everyone, to another edition of Marketing the Invisible. I'm Tom Poland beaming out to you from little Castaways Beach here in Queensland, Australia, joined today by David Dugan. David, good day, sir. Welcome. David Dugan 00:22 Good day, Tom! Tom Poland 00:22 Where are you hanging out? Where are you calling in from? David Dugan 00:24 I mean, Brisbane, so just down the road from your place. Tom Poland 00:27 Bris-Vegas, as we call it here. Voted on more than one occasion the world's most livable city, by the way, folks, so nice part of the world to be in.
This episode of the Crime Cafe podcast features my interview with crime writer David Kushner. Check out our discussion his nine-part series on Substack about a murder at the Texas Renaissance Fair and other writing. This is the Crime Cafe, your podcasting source of great crime, suspense and thriller writing. I'm your host Debbi Mack. Before I bring on my guest, I'll just remind you that the Crime Cafe has two eBooks for sale: the nine book box set and the short story anthology. You can find the buy inks for both on my website, debbimack.com under the Crime Cafe link. You can also get a free copy of either book if you become a Patreon supporter. You'll get that and much more if you support the podcast on Patreon, along with our eternal gratitude for doing so. Check us out on Patreon: https://www.patreon.com/crimecafe Debbi (00:54): But first, let me put in a good word for Blubrry podcasting. I'm a Blubrry affiliate, but that's not the only reason I'm telling you this. I've been using Blubrry Podcasting as my hosting service for my podcast for years and it's one of the best decisions I ever made. They give great customer service, you're in complete control of your own podcast, you can run it from your own website, and it just takes a lot of the work out of podcasting for me. I find for that reason that it's a company that I can get behind 100% and say, “You should try this.” Try Blubrry. It doesn't require a long-term contract, and it's just a great company, period. It also has free technical support by email, video, and phone, so you can get a human being there. Isn't that nice? If you want to podcast, try out Blubrry. No long-term contract, excellent distribution, and great technical support, too, by email, video, and on the phone. I've included an affiliate link on this blog. Here's a link to a PDF copy of the interview. Debbi: Hi, everyone. Today, it's my pleasure to have with me an award-winning journalist and author. And along with writing true crime and non-fiction graphic novels, he's written for a variety of major periodicals. Today, we'll focus on his writing for a newsletter he has on Substack called Disruptor. My guest today is David Kushner. Hi, David. Thanks for being with us today. David: Hi, thanks for having me. Debbi: Well, no problem. It's a pleasure for me. I was reading over what you wrote on Substack about the festival. The Texas Renaissance Festival. What prompted your interest in the crime that took place at this festival? David: Well, I had gone to the Texas Renaissance Festival. Actually, it was about 17 years ago to do a story on it for FHM magazine, which was a men's magazine at the time and I was interested in it for a couple reasons. One was because it's the world's largest renaissance festival. It's in kind of the middle of a small town, that's a town of about 100 people outside of Houston. So, it's kind of in the middle of nowhere. And this guy George Coulam who came there in the 70s and incorporated the town. Became mayor and then essentially transformed the town into a working recreation of a Renaissance Village, all that was super fascinating to me. And I went there and I was there for a few days reporting the story. Then at one point, when I was leaving the festival one night, a scuffle broke out very close to me and a lot of shouting and a crowd formed. And I got out of there, you know don't want to be in a situation like that. But what I later found out was that actually somebody had gotten killed in that fight. Somebody was stabbed multiple times and it was a terrible, obviously, terrible tragedy. It's something that I always thought about having just kind of brushed up so close to it. And then as things went, this magazine went out of business. I never wrote this story, but I thought about it for 17 years. And then I finally decided, you know, I have this newsletter and I thought there's a different way maybe I can approach telling it and telling it i...
Our guest today is Ron Schneidermann, CEO at AllTrails, the ultimate guide for outdoor adventures. AllTrails was early to the consumer subscription space, launching a $3/month premium tier way back in 2012. Ron joined as CMO and COO in 2015, and then took over as CEO in 2019, helping to grow AllTrails to over 1 million subscribers and tens of millions of active users worldwide.On the podcast, we talk with Ron about the magic of consumer subscriptions, experimenting with freemium strategies, and how private equity isn't always as bad as you've been led to believe.In this episode, you'll learn: How to refine and optimize your freemium strategy Two things you need to keep an eye on as a founder The pros & cons of outside funding vs. organic growth How Ron fast-tracked AllTrails' profitability Links & Resources Accenture Hotwire Yelp Liftopia Alex Honnold Spectrum Equity Ron Schneidermann's Links Ron Schneidermann's LinkedIn page AllTrails Celebrates 1 Million Paid Subscribers! (January press release) AllTrails' website AllTrails is hiring Follow AllTrails on Twitter Follow us on Twitter: David Barnard Jacob Eiting RevenueCat Sub Club Episode Transcript00:00:00 David:Our guest today is Ron Schneidermann, CEO at AllTrails, the ultimate guide for outdoor adventures, AllTrails was early to the consumer subscription space, launching a $3 per month premium tier, way back in 2012. Ron joined as CMO and COO in 2015, and then took over as CEO in 2019, helping to grow AllTrails to over 1 million subscribers and tens of millions of active users world.On the podcast, we talk with Ron about the magic of consumer subscriptions, experimenting with freemium strategies, and how private equity isn't always as bad as you've been led to believe.Hey, Ron! Welcome to the podcast. 00:00:59 Ron:Thanks for having me.00:01:00 David:Yeah. Really looking forward to the chat today. I wanted to kick it off, and most people know what AllTrails is, and it's a fantastic brand. It kind of tells you what it is right there on the tin. What's your pitch? We're in 2021, post pandemic.Give us the short version of what AllTrails is. What does it mean? 00:01:21 Ron:Yeah. So AllTrails is a free app and website that helps you find trails all over the globe, so you can spend more time enjoying the outdoors, and spending time in nature.00:01:34 David:That's awesome.00:01:35 Jacob:That's a very nice mission. That's way more beautiful than helping developers make more money. Both are important, but I can smell that. It smells, “piney” and I like it.00:01:46 David:Yeah, it smells like the Colorado forest. I haven't been hiking forever, and doing all the research to chat with you today was like, oh man, I need to go hiking more.00:01:55 Ron:I heard there's a great app for that.00:01:57 David:I heard that.So, I did want to also ask about your journey to AllTrails. You got there fairly early, and then grew in, and you're now CEO. Tell me, off the bat, what led you to AllTrails way back in 2015 when it was just six people?00:02:20 Ron:Yeah. To answer that I'm going to go a little bit further back in time. My first job right after college was at Accenture, at a global management consulting firm. It was great. A good jumping off point, and I learned a ton. I didn't know anything going into that job. You know, you get the rubber stamp and it opens doors.By the end of my third year there, I kind of had a realization. Epifany is a little too strong a word, but I just kind kinda realized I can't take a job just for money again. The amount of time and energy that I was putting into it, and the lack of work-life balance, it really made me rethink who I want to be. Who does working Ron want to be?So, I was able to parlay that Accenture job into a biz dev role over at Hotwire, an online travel company. That was really where it opened my eyes. Like, I am so much happier, and I am honestly so much better when I'm working at something that I'm just personally passionate about.That guiding principle has really held through throughout my career trajectory. From Hotwire, I want to do my own startup in the ski space. I love to ski. So, I did that for nine years. It was a ton of fun. Then I was over at Yelp, doing growth for a bit. I love finding non-chain restaurants, and supporting mom and pop businesses, and stuff. I live in Yelp, so that was great.Then, when the opportunity for AllTrails presented itself, it was just kind of a no-brainer. Of course I'm going to take this.I'll say this to you, one little addendum, one of the things I learned along the way, too. I am not a zero to one guy. That is not when I am at my best. It just causes me stress and anxiety, and just, figuring out how to keep the lights on for another day.So, again, knowing kind of that sense of self knowing. Like, alright, I'm best at B to C. I'm at my best when I'm using products I personally want to use and like talking about. I like hypergrowth, and I think that's probably my sweet spot.So, it starts to all align when AllTrials showed up.00:04:34 David:Yeah. And then how did that go from? You joined the company as COO, right? And then, what was the progression inside the company to eventually taking over as CEO?00:04:45 Ron:Yeah. So if you want to demo and COO, I dunno why I really wanted to have both, like, I didn't want to just be CMO in a vacuum, but not have any ownership or agency over kind of team composition and strategy and stuff. So I thought that it was really. Really important. And when you're a six person company, it's pretty easy to grab titles.It's not like how to take it from anyone.00:05:08 Jacob:I was going to ask, like, I mean, it's, it's not like you see this a lot where it's like a six person company and they had like five C-levels and you're like, okay. Yeah, sure. Like, like my title, for example. But like, I'm kind of curious, like, you know, you like your background, you founded a company, like you were like a real CX whatever.Right? Like it's not like it was fake. So how did, how did that, how did you go as like an executive, like choosing your next thing? That'd be a hell of a pitch to get you to like join a tiny little like, team like that.00:05:36 Ron:You know, I think I, I spent a lot of time thinking through again. I don't know, I, to be perfectly honest, I was, I was a little bit bored at the end of my tenure at Yelp. I love Yelp. It's a great company, but it was just, it was too big for me. And so I spent a lot of time thinking through what's next again?That whole question, like zero to one. Do I need, do I need to start something myself or what? So the smallness didn't bother me. I actually really liked the smallness cause it was almost like, it was almost like a cheat code. Like I got to do a startup, like basically from scratch, but I didn't have to do it from scratch.And then.00:06:09 Jacob:They had, they had a kernel of something at00:06:11 Ron:They did, they did. And you know, it was actually to, to give my predecessor credit. It was, it was actually more than that. Like they had, they had solid product market fit from a monetization perspective. And then what really got me across the line with their product channel. And I feel like that's often overlooked and that's something you kind of pick up in time.Like it's not just like, is this a product people are willing to pay money for, but just straight up, how are you going to get this out to market? And can you, can you do it in a way that is, you know, viable and scalable and, and ultimately, you know, going to be, be more efficient than, you know, it's kind of like net out, right?Like the whole LTV to CAC thing and everything that00:06:49 Jacob:Yeah. It's, it's something more efficient than paying for every single install. Right.00:06:53 Ron:Exactly. And so. You know, I, it felt like there was good bones, you know, maybe it was like a fixer upper kind of house. but it had good bones, like it had, it had the foundation in place. And I could see, you know, back in 2015, the product sucked, it sucked. and, and what was shocking after I came was how bad the data was.I didn't realize that when I was kind of doing my own diligence, but it was00:07:20 Jacob:You mean like analytics on the internally, what the company knew about itself or you mean like the, the, the trail00:07:25 Ron:The trail data, like the trail data that we were showing, you know, and that's that's subs high consequence. and so that was like a hard pivot, within a couple months, like, all right, this is, you know, all hands on deck thing.We're not doing anything else until we figure this out. but again, it just, it felt like there was a diamond in the rough, in this one. You know, I've been here six years now and I can say like, unequivocally, this is the highlight of my career. Maybe I just got lucky. I don't know. But, man, like, yeah, this has been a really, really great run so far.00:07:59 Jacob:I was just going to ask about the, that channel and monetization fit. I mean, I guess this was maybe I'm jumping ahead in our agenda here, but, but yeah, they were already charging a subscription before you got there. Right. And in terms of like monetization, maybe like describe that model a little bit and, and how that has changed.00:08:20 Ron:Yeah, I had never done this subscription business before coming here. So this was my first subscription business. And I'll tell you, you guys already know this. I'm sure your listeners already know this too. subscription businesses are magical. Oh my goodness. Compared to like e-commerce or you're trying to re when, you know, the transaction every single00:08:40 Jacob:I know I was looking at Hotwire just now, when you mentioned it. And I was just thinking about like, how many of those there were at that era, right? Like, and still are like, when you had to book a hotel on Google and they're like, oh, here's 15 different sites. You can actually like book it through it's like Wolf,00:08:53 Ron:Oh, so tough. Same with Liftopia. Liftopia the ski startup. There was the same thing. Right. you know, but, but with a much smaller niche and segment, and then, and then Yelp is, you know, they're, they're kind of the media model and then trying to, you know, kind of pivot more towards like B2B and subscriptions for businesses and value added services and stuff.And coming here doing a consumer subscription business, an annual subscription, the auto renew. It's like an annuity, like it just builds up every single year. Like obviously, like you can't take retention for granted and I'm sure we'll talk about that, but you know, just, if you're able to kinda, you know, do a, do a pretty good job on the retention side and you see this thing build up And just.Raise the tide every single year that I've been here and have it just, is that much more momentum that just gets like brought into each new fiscal year for us. It's just, it's incredible. It is incredible. the leverage that it offers. So that was cool. That was definitely a, 00:09:51 Jacob:One of those good bones.00:09:54 David:Yeah. And that's what I was going to ask you say the bones were good. Yeah, AllTrails had launched their subscription in 2012. So about three years before you joined, what was the state of that? And that's really early in the kind of consumer subscription software space. Was there a lot of push back was like, how was traction, chargebacks and things like that was the bones were there, but were there some serious doubts or questions in your mind as to how this subscription app space was going to play out? 00:10:28 Ron:Yeah, I mean, so can I share a secret with you guys? I honestly didn't know that our subscription business loss in 2012, until you guys showed me the research that you did leading up to this, I had always thought that, it launched with our ass. We launched our apps in, I think early 2015, I joined in September, 2018.And I just lumped everything together just in that, you know,00:10:53 Jacob:Yeah. It's yeah,00:10:54 Ron:Yeah. So I, I, I had always thought that it, that we had launched it when our apps launched, but I guess we were on the cutting edge, the bleeding edge, the subscription space here.00:11:05 Jacob:So, so, but that, then I'm, then I'm correct to assume that, you know, if you launched a description 2012 was on the web, if you didn't have apps until 20, 20, 15. Right. Right. Which, I mean, my, my experience, I guess I've been on old trails website, but like my vast majority of experience has been on the web.Right. Because I'm like, or sorry on the, on the phone because I'm going for a hike and I'm like, I need a map and like, boom, there's AllTrails. Right. Which I guess is that channel fit. You're talking about.00:11:27 Ron:Yeah. And that's been, that's been one of the cool things when I started. So a couple, a couple, I guess, data points, just to show like, sort of that, that snapshot in time of 2015, we probably had 20,000. subscribers at that point, maybe a million cumulative registered users since 2010, when we first launched and maybe 20,000 active paying subs.And in January of this year, we put out a press release. We don't normally do that, but it was two pretty cool milestones. We had cracked 25 million registered users and a million paying subs at the start of this. So, you know, again, like the, the, the unlock has been really cool and very, very powerful. but the other thing, like you said, like this was, you know, a web driven subscription business.At first, when I, when I first started here. probably 70% of our, of our web traffic was desktop desktop to mobile 70 30. And obviously that's inverted, since then, and then Mo the, the, the mobile apps, the native apps are by far the best form factor for what we're trying to do. Like you said, Jake would like take it with you on the go, the navigation, the GPS stuff, everything baked in there.And so that's become really the workhorses of, of subscription business and, and of our overall, UDC flat.00:12:42 Jacob:Yeah. I mean, it's so helpful. you guys have good SEO when you search a trail, it comes up on AllTrails. Right. But that's, I would imagine like this stage probably mostly like demand gen for the app,00:12:53 Ron:That's exactly it. No, that's exactly it. Right. So our se our legacy SEO, this is what, again, one of the beauties of being around for 11 years and counting, we have this amazing legacy SEO and that's, that was that product channel fit that brought me here was the sales pitch was he just showed me Google analytics.And he just like, look, look at all of this for your00:13:12 Jacob:Just like a hyper-local very valuable data, right. Index. And if you're, if you're the winner, that's a great real estate to00:13:20 Ron:I know. And, and so what we've been doing obviously as, sort of consumer behavior has changed and gone mobile first is, we're able to parlay all of that mobile first SEO traffic it's, incremental organic app installs, and that's a huge driver. Of our business. We get millions and millions of incremental app installs that we don't pay a dime for every mom's.00:13:42 Jacob:Yeah. And going back to your point, like yeah. Not having to push. Up the hill completely is a bit, you know, you think about a Compounding annuity analogy as you made, right? Like the cost of that compounding really, you know, if you net out the whole asset, right? Like that's going to be a big part of it is like, how much does it cost to push that that, that, that flywheel up a little bit. 00:14:02 Ron:It's a moat for business too, you know, you're around long enough and you're doing something good. You're going to see a ton of competitors start flooding into the space, which is great as validation of what we're doing, but the product market fit product channel fit conundrum is, is real.It's real. And you know, I see really great products, you know, beautifully designed products that just crank can't crack the code on either of those. And then they kind of, you know, whether on the line, right? Like see it all the time.00:14:31 David:No, that was actually my next question is that in those early days, and you already said when you joined and when y'all launched the apps in 2015, they were crap. So take me, how did you go from this crap up and what experimentation, what pain, what suffering did 00:14:53 Jacob:There's some, there's some old, there's some like a old guard at, at all trials that are going to listen to this and be like, crap. They were great.00:15:00 David:But what did it take and what was the approach to, to find you, you had some level of product market fit, but then to actually build a great product around those early signs. 00:15:12 Ron:There, there are a couple of philosophical things that we decided immediately. One was around funding. Do we want to go take funding, and try and do this faster? Do we want to do this kind of organically? And my predecessor had done a small seed round. I think he raised 3 million bucks in 2012.And we were still kind of drafting off of that. And then there was a little bit of subscription revenue and then a whole bunch of just, you know, classic entrepreneur head on the swivel stuff. Like let's throw a bunch of shit up on the wall. Like, let's see what we can do. So there's, you know, a media play and programmatic ads.Whatever, right. Just trying to buy time more than anything. Right? Like keep the servers running for a little bit longer. But we decided we very intentionally decided not to take funding. We wanted to control our own destiny. And part of it to be clear, part of it was the handshake agreement with the original founder, was to grow it and sell it.He wanted us to, to, to sell it. And so, so then if that was kind of the. The Mandy. And I was like, well, why would we even just, you know, deal with the, the opportunity cost and the headache of going out and trying to raise funds, as a pain in the ass. So, you know, it was like, let's just, let's put our heads00:16:22 Jacob:Especially, especially for our consumer subscription company in 2015, like00:16:27 Ron:Right? Yeah.00:16:28 Jacob:Ben kind of been party to that. It's not, it wasn't easy. Let's put it that way.00:16:32 Ron:Tried doing it in 2005, by the way I was with Liftopia was insane anyways. but so we decided to put our heads down and just say super scrappy, super scrappy, super lean. And so, it just came down to like relentless prioritization and essentially what we ended up doing was triaging sort of a different funnel metric each quarter.Right. So one quarter is. We've got to tackle bounce rate. All right. Now we've got to tackle signup rate and now we've got to tackle pro conversion rate. And now we've got to talk over attention and we just kind of spent cycles, through 2016 and through 2017, just each, each quarter, just like laser focus in on that one metric and do what we can and then move.And it worked because by the end of 2017, we actually achieved profitability. Which was cool, which was really, really great. You know, like we wanted again, when you've been around the block long enough, you talked to enough entrepreneurs, you've seen, you've seen enough. there's so many examples of people going and getting too much funding too soon, and then they develop bad habits, right?Yeah. Let's get a little hot in here. Is it.00:17:36 Jacob:I never heard of that.00:17:39 Ron:So, you know, but so you see it right? Like that you, you get the, unsustainable growth channels, again, the product channel fit question, like how are you actually going to bring this to market? And how are you going to do it when that VC money dries up? Like, is this actually00:17:50 Jacob:Five X that VC money, right.00:17:52 Ron:Right? Is this sustainable?Or you're just connecting yourself to the next round of00:17:56 Jacob:You can put yourself in a, in a dead man's corner, right. Where you're not your, market's not big enough, whatever you end up killing and otherwise like really great business,00:18:05 Ron:Totally. And I, you know, I'd seen that, I'd seen that. I really didn't want to do that here. It felt like because so much of our growth was coming through SEO. It felt like obviously there's an opportunity, which we later unlocked on the ASO side of things. It felt like even beyond both of those though, it's just like word of mouth and PR and viral loops and network effects.00:18:27 Jacob:Product market fit as a broad thing, right? Like growth kind of have you have a really good product and it serves a niche, like grit just starts to start to go.00:18:36 Ron:And especially organic growth, right? Like, and that was really the big key as like, do we need to be like one of these DTC companies and just raise millions of dollars for Instagram ads? Or can we, can we do something that's more sustainable for the long haul? And that was, that was one of the bats.The other big bet that we placed was, from a brand positioning perspective. You know, when I came in the app was definitely geared towards like the through hikers and search and rescue and, and the hardcore, like, you know, back country folks. And the challenge with, with, with that segment is that there's always these, you know, really esoteric and extreme product requirements that they want because they're they're edge cases.They're by definition, all edge cases. And in this space in particular, a lot of them. Kind of living the, you know, the van life, life, you know, trying to live as frugally as possible. and so they don't want to really pay you any money either. It's like this isn't a good growth segment. We got, we gotta rethink this one.And so, I've told this story a lot, you know, this strong man to this day still is, is my wife where like she likes going outside with me. You know, she's always down to go on a high. you know, spend time outside. We have three kids, totally trying to raise them on the trail. we have a dog who loves being on the trail and, but, but if I'm not there, you know, she's, she's not going out there.Right. So it's like, okay, okay. Maybe here's the play. Like what, what if we use technology? Kind of tear down the barriers for entry, like instill confidence, whether through like product functionality or content, but really make it so that someone like my wife and the hundreds of millions of people around the globe, like her who, who know that they feel better when they time spend in nature.They're just a little scared to do it. Like, can we help augment that? Can we help supplement that? And I think that's going to be the unlock. And that was the big bet. That was the other big bet that we placed in 2015. And you know, 00:20:30 Jacob:And just to summarize that, I understand it's like to kind of not ignore these like extreme users that are on the edge on the edges, you know, serve them, but maybe not in the way that they would want, but like let's focus on, you know, this larger segment. I mean, I think that's the thing, even some good founder advice is good for founders.Sometimes doesn't always apply. Like B to C stuff sometimes where it's like, yeah, like, listen to your most vocal users often. There's something there, but like with an ounce of like moderation, because yeah. They can lead you in really strange places. And think about the network. Think about the like user.Maybe you're not talking to her, her the next year saying next a hundred million users that you have to get. and that's potentially a much bigger surface area. And that doesn't mean you're going to abandon those court users. Like they might grumble a little bit and they might not be totally served by your use case.And like, that's maybe just life. but, but you know, you've now potentially, like if you think about the, you know, the mission of just getting people outdoors, like you've achieved that much better by going for this much larger market segment. Right.00:21:31 Ron:Yeah, and they're not mutually exclusive. It's just which one are we prioritizing? Which one are we preferencing? And how are we, you know, what kind of language are we? Are we using lingo or not? Right. Are we making this accessible for everybody or not for imagery? Right. Are we doing like, you know, Alex, Honnold like dangling one handed off of a cliff,00:21:51 Jacob:Or just, or just a picture of the N the end cap at an REI, Right. Like,00:21:56 Ron:Yeah. Yeah. Or, or just like, you know, a family like smiling and having fun out in nature together, you know, like, all right. It doesn't cater to the core, but they're not necessarily going to like walk away because they see that stuff either. 00:22:07 Jacob:Right. I mean, and that comes to. Channel fit As well, right? Like not your products fit and your products oriented for, and that like B to C you kind of, you can't divorce the two, like you can't have totally independent marketing and channel channels for the product itself, which maybe you could get away with a little bit in B2B.But, but, but they, but they don't necessarily have to be like completely like linked, you know, you can kind of serve both niches on the, on the product side to your point.00:22:34 David:And speaking of getting more folks out in the mission of AllTrails. I'd love to hear about your freemium strategy, because that's a huge part of it. Like what early on, what was your approach? And then how did that evolve over time? As far as what features you do give away for free to kind of reach the broadest audience possible, and then what things you pay wall to actually get paid? 00:22:57 Jacob:And, and, and I'd like to highlight how Ron, when we asked you to describe AllTrails, you put free in the name, which I'm sure was very intentional. Right? You said it is a free app, right? It is not a premium app. I mean, it is a premium app, but the highlight the free. So00:23:09 Ron:Yeah,00:23:10 Jacob:That framing, what, what, tell us about your free app.00:23:13 Ron:There's, this is a, this is, an ongoing. Like not debate, but, it's an open question always. And we're constantly like asking our employees and our board, like let's challenge our assumptions here just because we did something a certain way last year. Doesn't mean we need to do it this way.Like let's constantly reevaluate this, for us, there's sort of three main buckets we have. Free on authenticated users and then we have free registered users. So kind of that registration wall is like the first key funnel, metric. And then there's, pro subscribers, right? So we have two, two kind of core, success metrics.One is registration rate and one is pro conversion rate. And then what goes in front and behind the paywall and the red wall, the registration wall. Constantly influx constantly. And plus we actually just did this really fun workshop a couple of weeks ago, internally here. It was like the history of AllTrailss pro and just showing kind of which features started when I, you know, again in 2015, like what was the pro feature set?How much of those? We actually ended up pulling in front of the red wall and new features that we put back behind the paywall. So I feel like we're constantly in a state of experimentation here. we've been, we've been experimenting with that since day one. We've been experimenting with pricing also on day one.And there's still, I don't feel like we've cracked the code at all at all. When I, when I first started here, I'll chose pro was 50 bucks a year and I spent the first, like two months just trying to get as, as much like, obviously all the quant data that I could get my hands on, but as much qualitative data as I could get to.So reading every app store review, every Reddit thread, every blog post. Talking to customers, all of it. And aside from everyone telling us that our data socked and, you know, we can, we got them lost. So we got them tickets from the park ranger for telling them to bring a dog when it's not that currently, whatever it was.The other piece of feedback that we got was like 50 bucks, like it's way too much. And so we immediately started testing pricing and, and, and we tested it at 30 bucks a year and we tested that 15 bucks a year to kinda all right. If we really just take that price down is, the in incremental, purchase rate, gonna offset, you know, the, the change in that revenue per transaction.They were about to wash it, which was really interesting from a net revenue perspective, 15 bucks a year versus 30 bucks a year was, was basically flat. But we went with 30 because it gave us more maneuverability. We could do more. for the folks who were like price sensitive, do do discounting, intro offers, whatever.At 15, we really couldn't go any low, lower. So it's just like, this is it for everybody all the time. but even that we're revisiting now and thinking through like, all right, maybe are there other different tiers? We've never done monthly before. So what is, what is a world in which there's a monthly price?I don't, I don't love it. I mean, again, annual is magic. Like why mess with a good thing, but there is a cohort of users, especially outside of the U S where that's a pretty high00:26:16 Jacob:Oh, I mean, I live in the Midwest. Like I would, I only need your app from, from April to November. Right. Like I really don't need to pay all year.00:26:24 Ron:For the two weeks in00:26:25 Jacob:Yeah. I, but I mean, I think there's the counter argument there of the simplicity. It's like, yeah, sure. But. Whatever your value is. So your, your, your, this is the price.I really, I I've seen that effect before on the price experimentation, you just end up with the same area under the curve. Like, no matter how you move it, and some apps are like that, some apps are not. but I do think it's really fascinating, the wisdom of crowds, right. And just how, like, they know like the, the, the, the masses have priced and valued your products.And then just like showing that like, it's very efficient, right. No matter where it goes, then you can come down to like, It's almost a good place to be. Cause then yeah, you have that like opera, you can choose where you want it to price. You can basically, you're freed from the like fiduciary duty of like maximum extraction.And you can like, like, just focus on like, okay, what's gonna what's right. For us for some of those goals on company growth and stuff like that. If it was right for the mission. And then like also give yourself some like tactical opportunities in terms of discounting and other stuff like this, and then positioning as well.Like what is it? I think that's almost as important. It's like, how do you use. How do you see all trials? Like how do you see it as like, what's the value of perception? Like a $30 skew and a 50 and a 15, those are very different. Right. And those are, you know, I think about consumer goods on those scales.That's like each one of those things has like a different, like, feel to it.00:27:43 Ron:Totally. And, and then on top of it, though, our business is driven by UGC, right? We have this classic UGC flywheel. And so obviously we know our pro users are more engaged, but a ton of engagement comes from our free users as well. And so you can't kind of, turn the squeeze on them too hard without like really fundamentally damaging the business.00:28:05 Jacob:What kind of user generated content? Is it like pictures and updated and stuff or what? What's00:28:10 Ron:Yeah, ratings, reviews, photos, recordings, you know, and then there's this also this virtuous cycle that we have, this beautiful relationship we have with our users, where they, they help us create as well as Curie our trail Content. So that's the thing with trail content, just to go down this rabbit hole for a second, Joe Content, super fluid, like it's not like streets that are, that are relatively static.You know, a trail is you get, you get flooding, you get fires, you get maintenance, you get development, down trees, whatever. Like they're constantly in a state of flux. And it's really, really hard to stay on top of it. We can't do it alone. And so we00:28:49 Jacob:And there's no, it's not like, it's not like roads where there's like a national database, right. Of like uniform data00:28:55 Ron:Yeah, no, not at all. Right. so we, we do. We have this like really beautiful symbiotic relationship with our, with our users, you know, and, and it's kind of like, we both get value from each other and we're both very transparent about like the relationship, like you guys help us and you help the community.Right. And we'll package it. We'll, we'll keep improving and investing in the product experience and everything else. and again, like, this is where it seems to be working, but this is when, when we were talking about. Th th the choke points in the funnel and that, that red wall and the broken version Weill, this is the thing that's top of mind over all of it. 00:29:30 David:Yeah, that's great. I did want to move on and talk about in 2018, AllTrails raised, 75 million led by spectrum equity. And so I'm curious about that, about that story. So, I know, you know, the plan was to sell and then you've shared on other podcasts that, part of that was the founder taking, taking some money kind of his exit event.But I'm really curious just from like a company building perspective. I think so many founders and entrepreneurs think, oh, if I can just. More money. If I can just hire more people, everything's going to be easier. but I imagine that's not the full story. So I'd love to hear about the raise, but then also kind of how that changed the company and changed the trajectory.00:30:18 Ron:Yeah. So like I said earlier, right. That the handshake agreement was to grow and sell it. So we knew going in exactly what the deal was. and once we hit profitability in 2017, it kind of felt like, all right, it's probably next year. It's probably our year. And we got an inbound from one of the big tech companies early, you know, probably end of Q1 of 2018.And so I was like, all right, game on, right? This is it. We'll go get a bank. we'll run a formal process here. And we started going through it. We started going through it. This was actually, it was fun, right? Like I got to put together sort of like, all right, here's our top 100 strategic partnerships broken out by category, broken out by vertical.Here's like the, you know, the accretive value here is, you know, the, the investment credit. It was like a really fun thought exercise. You know, we're talking to online travel companies and real estate companies, and obviously like the retailers and just so many different types of companies out there. And we ran a process and it was, it was fun.But, and as we were going through it, well, a couple things happen. One is our business really took off. Like it was a breakout trajectory year for us. So that always helps. Anytime you, you meet with someone, you share your plan and then you come back a month later and it's like, Hey, actually, Outperforming outpacing.So your price just went up. so that was, I mean, that was great. Like a great position to be in. I've never had leveraged like that. And the other, the other thing was like, we could walk away at any point. If we, if we didn't like it, I had done a lot of fundraising before and that I've never had a position of, of leverage like that.So that was cool. But as we were going through the process and talking to these different strategic acquires, the other thing that kept jumping out was like, I don't want to just go be middle management at some big company that I already like have chosen not to work out anyways, because it doesn't align with what I want to do with my time.And so, you know, we're kind of going through, it's like, is this really, is this it is this the only path? and we're talking to our bankers about it and like, you know, there's a, a huge ecosystem of financial investors that are really excited about this consumer subscription space. let's, let's do a spike there.And so we started talking to somebody. Different financial firms out there. And that's where it got really, really interesting. you know, I think, I think we all probably have preconceptions about like private equity groups, like, you know, I know, right.00:32:36 Jacob:Just, it then the light dimmed here. When you said00:32:39 Ron:I know, cause a lot of the classic ones, they're just there in your shorts about like your bottom line expenses and micromanaging and telling you to cut costs and00:32:47 Jacob:That's, that's the, that's the, the stereotype at least.00:32:50 Ron:Totally right. but there's this whole class of growth equity shops out there and, and we, we sort of plugged into it and I would squarely put spectrum equity and that one, and the first time we talked to them, it was so clear. They're like, you guys, aren't thinking big enough. It's like, what? I love that.Okay. Let's talk growth. You know, like you guys need to be thinking global. Right. And it was just like, there was so much alignment around. This, this opportunity in front of us. And instead of like pulling the rip cord and just kind of being absorbed and integrated into something else, it's like, how about, like, we really make a, make a run at this.And so the more we talk to them, the more it's was like, yes, hell yes. And it wasn't just from like, a funding perspective, you know? Cause if it was just that like again, then you just do an auction and you just see whoever's the highest. But we really wanted, like I needed a partner. I wanted a value added partner that I wanted someone who could bring in, you know, a sense of community, not have to reinvent the wheel all the time.That's always nice when you can plug into our portfolio of similar companies and just pick their brain. All right. Like how did you guys00:33:54 Jacob:Yeah. I mean, that's an under, that's an underappreciated aspect of raising versus like going at your own. It's like the network, like it's, I think feces oversell it, but maybe founders undervalue it. Right? Like00:34:05 Ron:A hundred percent. Couldn't agree more. It does. It really does. and so yeah, we kinda went, yeah. I, I feel incredibly fortunate that we were able to partner up with spectrum equity. And so David two question, I have, it's like it for us, it was this huge unlock. It was this huge online. Like we have another partner, we're going to be more formal, with our board structure and, you know, the, the sort of like metrics, which is great, like we needed to level up, and our corporate diligence and everything.And they've been, they've been a partner and we've, we've grown the board. We've added more expertise. And again, like the, the portfolio being, being sister companies with, with like Headspace and the not worldwide and survey monkey, whatever, like these cool companies that I respect and be able to, you know, hit up the CEO and be like, okay, how did you guys deal with this?Because like you said, like there are a ton of challenges that come when you're going through that, you know, that the slope of the curve at that point, right? Like the true hyper-growth curves. All right. You know, we can't fall back on, on money as an excuse, you know, like it's purely an execution play and how do we do more faster?And that's honestly like, that's my, I think one of the coolest things I can say about my board, that the single biggest piece of feedback I get from them where they're just like yelling at me all the time and a great way. It's like, you gotta do more faster. Why aren't you doing more faster? Right. Like that is the mantra here because everyone sees this opportunity.It's ours, it's ours to go take. Right. But we got to execute and do it as fast as we can.00:35:33 Jacob:Yeah. That's that's, I mean, I'll say as somebody recently constructing a board, like that was sort of my cause as a founder and as a CEO, like you're always, you're just, you're you're at, you should be at the limits if you're doing your job. Right, right. Like you should be kind of feeling at least like thinking, you know, what your limits are and what the company's limits are.And it's nice. Even if there isn't anything more you can do. It's nice to have some people who like, ostensibly are aligned with you to be like, Are you sure there's not more right? Like, is there anything like, are you doing like, could, could you change this? Like, could you go go faster potentially? And sometimes the answer's no, but it does always kinda, you leave those board meetings going like, like maybe there is like, maybe there is some way we could do this, like better or faster, right.00:36:10 Ron:Yeah. And then you build a team, right? And that leads back to like the team growth. And this, you know, this is our third year in a row of, of doubling head count. Hopefully next year will be our fourth year in a row. And all of the leverage, I'm a big believer, like two things are the lifeblood for companies like ours.One is culture and the other is momentum. And you can't, if you lose either of them, Right. Like, you cannot take your eye off of either of those as a CEO, as a founder, whatever it is. and so like building both, you know, they, they got to go hand in hand, or you can sacrifice culture as you're doing the internal hypergrowth.00:36:43 Jacob:Have an exit strategy, right?00:36:45 Ron:Exactly.00:36:46 Jacob:Going to last very long.00:36:47 Ron:Because you'll never get it back. That's exactly right. But, but generating momentum through like value added hires and raising the bar or bringing, you know, a bringing in a plus, I love being the dumbest person in the room. That's my favorite thing at all. Choose walking in there. It was like, all right, I'm going to learn something.Someone's going to teach me something cool. and building a team.00:37:06 David:So it sounds like the biggest unlock for y'all taking the money was just the ability to hire faster, hire better folks, offer better pay. but was there anything else that you feel like taking funding helped unlock for AllTrails? Did you, were you able to spend Mo did you start spending more on, on user acquisition or ramping anything else out? 00:37:27 Jacob:Can I ask a clarifying question without like you sharing your term sheet or whatever, but like D w like these, these deals can be very different than like a venture deal, right. Where like, almost always all of it hits the books and it's dilutive, meaning that the company gets the money, but this was like kind of a buyout for the founder as an alternative to a sale.It's like, did you guys structure it? So some hit the books and not, or was it all to the founders or how did it, whatever you're comfortable00:37:50 Ron:We, we hardly took any primary capital in 2018. I didn't, I didn't want it. I don't want it. Like I liked our organic trajectory. I didn't want. And obviously I've gotten to know spectrum a lot better. They're not built from the CNA, but you take money from a VC. And the expectation is like the success metric is suspended as hard and aggressive as possible because they're incentivized to keep you hooked, you know, on the next round.And I wanted to, you know, accelerate more like on the product development side of things, but I didn't want to get stuck in a, a growth model that's dependent on unsustainable paid acquisition. Right. So. almost the entire deal with secondary capital, which was great, which was00:38:33 Jacob:And for the financial illiterate IME, like 18 months ago,00:38:37 Ron:Yeah,00:38:38 Jacob:The company gets the money. Secondary would be somebody who's already a shareholder gets the00:38:41 Ron:Exactly the people on the cap table. so it was buying out the founder, buying out the original investors, like really cleaning it out. It was a new chapter, a new book altogether. At that point and, you know, start sort of starting together. I think, you know, to the question earlier, in terms of like the other value as like, I really can't stress enough, just the strategic value add that I was able to get like, again, because as a founder or as a CEO or as an example, You're kind of stuck in your own head a lot and you can talk to other founders, but you know, there's this like culture, especially in Silicon valley, like, oh bro, coaching it.Yeah. I mean just crushing it, you know? No, one's, you know.00:39:19 Jacob:I didn't, you didn't have to put air quotes around culture there, but like, I could hear the00:39:24 Ron:Yeah.00:39:24 Jacob:I'm called.00:39:25 Ron:You know, and very few people are like really open and transparent, about the challenges and what have you. And so being able to go in. and have this board that I trust that I feel like we're all aligned. I've had boards, you know, especially VC backed boards, where you get like a different, you know, venture capitalists from every round that you do.Like you have a lot of misaligned incentives. You have a lot of sharp elbows in a room.00:39:47 Jacob:I was gonna say, there's a lot of, you know, these are all competitors in a lot of cases, right? Hopefully you pick well, and you have people that are professionals, but like you can totally end up in a situation where you have frenemies,00:39:57 Ron:Yeah, you're watching your back at your own boards. That's a horrible way to live. Whereas with this one, it was so clean. It was like, we were owned by spectrum. This is great. I work at on their behalf. This is great. We've got the two of them there's me. And then, and then, but to their credit, they're like, let's bring on two more operators.And so, you know, they didn't care about like, well, we have to have 51% plus of the seats. It was just like, no, let's just surround ourselves with really awesome. And so we got, you know, we got the former CEO of ancestry, who, you know, they know a thing or two about, subscription businesses. And then we got the COO of Robin hood and obviously like they know a thing or two about hyper-growth and everything else.And again, like, so it's almost like it's this team, you know, it's like this dream team we're just collectively, like they're helping me chart stuff. Like see things. I wouldn't have been able to see on my own, whatever the pattern00:40:45 Jacob:Yeah.I mean, I think it's, it's, it's a good story in the sense that like, I think, I think we think too terminally sometimes about companies, right? Like it's like, they're born, they are grown and then they get sold and then they die usually like nine times out of 10, right? Like it's, it's not often that an intern, like I say, all goes well and the integration goes, well, some spectrum of results.Right. But this is a result where I think you, you guys have a company that's two important. To let die, right? Like if you had sold, I don't know what, you know, your fangs or whoever was like, I'm sure I could see any number of massive tech company wanting this to be a part of their data set or part of their like social, like aspect of whatever.It's just, I could see a plugging into a lot of things, but you know, to get Google's exciting acquisition today and not saying you guys. Talking to Google or not, but as an example, like their exciting acquisition today is tomorrow is like, you know, happy trails, blog posts, right. That actually a good name for the, the shutting down AllTrails, acquisition at Google blogposts.But, but the, you know, and this is a, this is a path where, you know, people who are passionate about the mission, the employees and the users, like can kind of, you know, get that exit that people are looking for. But without like jeopardizing. Thing that's important. And like, maybe this is very hippie, right?But like, I think there is some aspect of companies that's beyond like the capital value and beyond like, even like the culture, but like actually achieving the mission and, and making that change in the world or providing that service. That's, that's, that's more important than, you know, Hypergrowth or whatever.And look, I mean, we should get into talking about now, like posts around, but it sounds like you guys are in hyper-growth anyway. Right. So it didn't, it's not like it's, it's this false dichotomy of right. Like either you're like raising for venture and you're like going at it really hard or Like you're a lifestyle business or, you know, whatever.And it's just like, Maybe, whereas maybe us like lampooning, this straw man of a false narrative has like most of the talking about this to like make that is the, the, the totality of the false dichotomy is us talking about it. But I really think this is a great example of like one of those like interesting, you know, outcomes and, and stories.So it tell us about what's happening now. 00:42:52 David:I appreciate you sharing that specifically because even in researching it, I listened to a couple of your other interviews. I still assume that that the. A pretty big primary chunk that, that went into the balance sheet of the company and then it accelerated it from there. So it's an even more interesting story to me that that raise was mostly secondary.So from the $3 million seed way back in, whatever it was 20 12, 20 13, it really has been an almost bootstrapped company and becoming what it is today on. Little capital is really incredible and it really kind of speaks to consumer subscription space and, and how you can operate and go big without spending a ton of money.If you do it right. If you don't, if you don't just plug into Instagram and blow $5 million of VC money acquiring the wrong users, if you actually talk to them and build a good product and everything else. but I did00:43:55 Ron:Well, and I was just stay on top of not only that at the first board meeting that we had with. I, I walked in and I said, Hey, you know, this is great high five super-stoked, we're also, I think we should donate 1% of our revenue to environmental causes. I know you guys just shelled out a whole lot of money, but would that be okay?And to their credit, they're like Yeah, let's do it. Let's do it. And you know, one of the first things we did post-transaction was signing up for 1% for the planet, you know, like there there's totally a different path here. I didn't realize it. And I think it's cool for people.I don't know. I, I wish I heard this earlier in my career. Like there are, like you said, like there's not a dichotomy, like there's so many different ways to do this. I think we have. Fetishizing almost, or like putting on a pedestal this whole like massive VC round kind of stuff, you know, and there's a time and a place for it, for sure.But like, that's not the success metric in and of itself, like more often than not, especially for earlier companies, the death knell. And so I think that, I'm always, you know, I get, I get hit up by people, you know, for whatever I'll all the time talking about this kind of stuff. And so I was like, dude, if you can boot shop, if you can control your own destiny, like do it, you know, find right partners that are gonna unlock growth and everything else.Don't fall, don't fall victim to that. Like, just that story that you think is like the classic Silicon valley startup story, which is you go out, you raise a big round and you have an IPO. It never works. It never works that way00:45:19 Jacob:Who would do that?00:45:20 Ron:To too many man.00:45:22 Jacob:We're running out of time. I do want to know. So you're talking about like doubling and so I'm guessing like the pandemic, like we've seen across the ecosystem has been really, especially, I can imagine there's two aspects to it, right? Like one your digital service.And then secondly, like you're very good compatible with like, social distancing. So did you like think you would be having this conversation for whatever four years after the spectrum, deal like doubling every head count every year? Cause that's typically not what private equity companies growth rates look like.00:45:51 Ron:I know. No, it was, I mean, so I'll preface this by saying we were incredibly fortunate during COVID and sometimes you just get lucky. Sometimes you get like, there's a ton of great companies out there that just like how to pull sales reps out of the field, or we're an equip for like the supply chain issues or whatever it was.Right. Like, Well, like you said, we're digital first company. we, we already, we had a somewhat distributed workforce, so we already like using zoom and slack and going fully remote. Like we, we saw no, no drop in productivity. Now granted like when, when the world shut down mid-March that was a little bit scary.But we knew it would be temporary. I, you know how long no one really knew. Bye bye. Mid April, we were going to our board and saying like, look like, I know things look a little bleak right now. Like the, the machine has fully ground to a hall, but we think actually like this is going to be an insane accelerant.Once things open back up, there's nothing to do. Like you said, it lends itself perfectly to social distancing. You know, people who can't travel anymore. Like, all right, we're going to explore our local state parks now, you know, like we'll scratch that. It's that way I got three kids and you know, school is canceled and obviously, you know, summer camps forget.What are we going to do? What are we going to do with these kids? And it's like, we're going to run them ragged on the trail, you know, every weekend we're just going on the trail and we're running them ragged and00:47:10 Jacob:There's a good ad campaign in there. Just00:47:11 Ron:Totally right. And so,00:47:13 Jacob:Sleeping kids in the back of a Subaru Forester and it's like,00:47:16 Ron:Yes, exactly. So, I mean, you know, we made, we did make a big strategic decision, to get in front of it and, and start hiring like crazy, and just make, you know, make a play, make a play. And, and again, Sometimes you get lucky. you know, that works, that works all these companies around us, that we were never able to like really poach from or whatever.Something like we're able to go grab their talent. Like not just from people who are like, oh, but people were actively working there who were just like, I don't want to do this with my life anymore. I like spending time outside. I had the number of people, the number of inbound applicants that like write in their cover letter.I was looking at which apps I use the most. And I just started applying to those jobs. You know, I think that there really is. It's like really. Great. And I applaud it and I love it. And I hope it never stops people like taking more agency and control over their career and not just like reactively, you know, just doing whatever leftovers00:48:10 Jacob:Yeah. I mean, the geographic unlock of remote, I think is a big part of that. Right. Cause suddenly like you're, you can just literally go on your phone and pretty probably today, nine times out of 10, you're going to be able to work for that company depending on your like, you know, locale or like time00:48:22 Ron:Totally.00:48:23 Jacob:It wasn't that way two years ago,00:48:25 Ron:Not at all, not at all. Exactly. So, a lot changed. A lot has changed in this time. With all of that, with the big accelerant they were seeing on the usability side through 2020, there is, I think David, you had asked this like pre pre-show, you know: there's two big questions hanging over our business as we went into 2021.One is, are the registered users who we got last year during COVID are they going to convert to pro like our conversion to pro happens over time? We look at a lot of stuff through a cohorted basis, and it goes up and to the right. It will take years for some users across the line to go pro, but it's great.It just keeps going up. So, are the folks who signed up when there was nothing else to do, are they ever going to convert to pro or not? The other big question is: all the folks who converted to pro in the height of the pandemic in 2020, once the world opens up, are they going to retain? Or, are we going to have the bottom drop out from under us?These were two questions hanging over our heads. We have a seasonal business, it follows the sun pretty much. So, as we headed into May, June, July of this year, thankfully that the answer for both was a resounding “yes.” The folks who signed up last year are converting at a higher rate than normal.The folks who subscribed are retaining at higher rates than normal, too. And I think it's kind of more of a testament to how the zeitgeists has changed a little bit post pandemic. Being outside just makes people feel good. I guess it's that simple. It's not very complicated.You feel better when you spend time outside, and people are just incorporating it into their regular routines.00:50:08 Jacob:Yeah. It's interesting. For positives and negatives, I think you came up three cherries, right? It just really lined up, and then it's continued. You're talking about the hiring thing, too. Like a lot of habits changed during COVID, and I don't think anything will necessarily go back. Especially if people have found a new, happier, maximum for their lives. You guys are part of that. That's great. and that seems like, I dunno, we don't have total good analytic quantitative data on this, but it doesn't seem like the whole boosts from last year totally collapsed.It seems like it just was like an accelerate, and I think other industries would sort of back that up. 00:50:54 David:Yep. Well, we're coming up on time. Is there anything else I should've asked you? 00:50:59 Ron:No, this was fun.00:51:00 Jacob:You guys are probably hiring, right?00:51:02 Ron:We're hiring like crazy right now. Yeah, absolutely.00:51:06 Jacob:AllTrails?00:51:07 Ron:Yeah.00:51:08 Jacob:There you go.00:51:08 David:Any particular roles you want to shout out? 00:51:11 Ron:We're always starving for great engineering talent. Android, iOS, front end, back end dev ops, security, all of it. PMs, product designers, mapping designers, customer support, the full gamut. The entire company, every department is hiring right now.00:51:28 David:Well, it sounds like a really fun company to work for. We'll put links to your job page and to your personal LinkedIn, and a few other places in the show notes, but this was really fun chatting with you today, Ron. Thank you so much for taking the time. 00:51:41 Ron:My pleasure guys. Thanks for having me. This was fun.
Our guest today is Eric Crowley, a tech investment banker with GP Bullhound. With investments in companies ranging from Spotify to Whoop, and clients such as AllTrails, Pinkbike, and Lingoda, GP Bullhound provides transaction advice and capital to many of the leaders in the Consumer Subscription Software space.On the podcast we talk with Eric about his 2021 report on Consumer Subscription Software, the truth about LTV calculations, and the new era of organic user acquisition.In this episode, you'll learn: Was 2020 just a “COVID Bump,” or a shift in consumer behavior? Are the Bumble & Duolingo IPO multiples justified? How savvy developers are adapting to Apple's App Tracking Transparency The truth about LTV The new era of customer acquisition Links & Resources Spotify Whoop AllTrails Pinkbike Lingoda Bumble Duolingo Instacart Match Group Netflix Noom Weight Watchers Tinder The Dyrt Day One Journal Automattic Tech Crunch Scribd Pandora Eric Crowley's Links Follow Eric on Twitter GP Bullhound GP Bullhound insights Eric's LinkedIn GP Bullhound 2021 CSS survey Follow us on Twitter: David Barnard Jacob Eiting RevenueCat Sub Club Episode Transcript00:00:00 David:Hello, I'm your host. David Bernard. And with me, as always, RevenueCat CEO, Jacob Eiting. Our guest today is Eric Crowley, a tech investment banker with GP Bullhound. With investments in companies ranging from Spotify to Whoop, and clients such as AllTrails Pinkbike, and Lingoda, GP Bullhound provides transaction advice and capital to many of the leaders in consumer subscription software.On the podcast, we talk with Eric about his 2021 report on consumer subscription software, the truth about LTV calculations, and the new era of organic user acquisition.Hey, Eric, welcome to the podcast.00:00:56 Eric:Hey, David, Jacob. Thanks for having me back. It's always a pleasure. 00:00:59 David:Yeah. Every year you release this report, so we had to get you back. This is the third annual Consumer Subscription Software Report, and I wanted to kick off just asking you a little bit about the motivation, and where your headspace is in thinking about creating this. Who the target is, and what kind of questions you're asking yourself as you prepare this report.00:01:24 Eric:Yeah. The report is the GP Bullhound Consumer Subscription Software Report. I call it CSS, which is kind of a playoff SaaS. This is the third year I've been writing it, and it started back in 2018. I worked with a company called AllTrails that was starting to monetize really well by selling subscriptions.It was like a light bulb went off in my head. I was like, this is a phenomenal way to provide a consistently improving product to consumers, where the margins are pretty good. It's easy to access a ton of different people globally through the app stores or through the web, and I just got really excited about it.I started putting some notes down on my own, and then GP Bullhound really supported me in saying like, “Hey, this is actually a pretty big trend. There's gonna be some amazing companies built around this space,” and companies like RevenueCat, that are supporting CSS companies, are just as exciting.So, we've been slowly educating ourselves. The goal behind the report is really just to force me to do some thinking about the space. What it looks like. What it will be. As a banker, you can quickly focus on transaction, transaction, transaction, and not really do any long-term thinking about where the world's going.It's putting myself in your guys's shoes. You guys are building RevenueCat not for what the world looks like today, but for what the world looks like in three to five years. I try to take the same approach with CSS, and think about where's the world going to go. So I talked to a lot of smart people as I put the report together. Entrepreneurs, investors, get their opinions.You guys can see their interviews in the report, and then ultimately we publish it. The audience I like to think about is entrepreneurs, people that are thinking about starting a CSS company, or already launched one, and they're looking to improve their metrics, or think about their target audience as entrepreneur-rich.By partnering with them, investing in their businesses, it takes them to the next level. The other way I like to think about it, it's my own personal scoreboard. I love to flip back two years ago and see, was I right about this company? You're publishing in public, so people can always come back to you and say, “Man, you were way off.” So, I look forward to that.00:03:26 Jacob:I remember the F finding the first one, the 2018, I guess, reporter 2019, whenever the first one you put out,00:03:33 Eric:2019, I think that's how we met actually.00:03:36 Jacob:Did you reach out to me or? I think I found it, or I don't remember what it was, but00:03:39 Eric:We've had a mutual friend, Nico introduced us and said, Hey, you guys should talk about this. and then I think we just went off on a two hour tangent.00:03:47 Jacob:But yeah, I remember being, it's still, there's still not a ton of like really focused research or writing on this space. and I think that, that, you know, this will probably won't be true for very long, right. As long as it continues to grow, but like going back to like who it's for. I mean, I imagine it as some, you know, end of the day, if you're employing.Pushing into some kind of lead gen. Right. But it does provide a lot of value for, you know, even if you're not interested in a transaction or whatever, just. Some like holistic data on a space. Cause like, I, the same, I mean, Eric, you said we're, we're thinking three and five years in the future. It's like, I wish like a lot of times I'm thinking like three to six weeks in the future.Right. and so it's even useful, I think, you know, even if you're, you know, I, you know, we're, we're in a bit of an interesting place as a infrastructure provider to be at kind of a bird's eye view, but it. Founder on one of these CSS apps, you know, like it is useful for you to know, like what's the meta environment, how's it evolving, you know?And if nothing else to like connect you with other people who have experimented with things and stuff like that. So, yeah, I think it provides beyond, beyond the, the, the lead gen aspect of it. It provides a lot of value for people. So I'm glad, I'm glad you're, you're still doing it. 00:05:04 Eric:Yeah. And just for any of the listeners, it is free. So you just go to the GP, bullhorn.com website. It's all easy to download and then you can see all our past reports as well. So 00:05:12 David:Yeah, and we'll drop it in the show notes. but, yeah. And, and, and speaking of all that, you know, it, it's something we as RevenueCat want to get more into as well. I mean, just seeing how much value you've created in producing these reports, and we're kind of sitting on a, you know, Processing over a billion dollars a year in, subscription revenue.We've got a lot of interesting data that, that we, that I'm very personally excited to share that we haven't, kind of had the infrastructure to, to do yet, but are, are getting there. And, so hopefully we'll, we'll have our own kind of, state of subscriptions that dives into the data and some of the trends and stuff in a different way than, than your kind of, strategy and higher level look at things.But when one thing that has happened, in the actually. It was announced before your last report, but actually implemented since your last report. And that's the app tracking transparency and iOS 14, which didn't actually ship till iOS. What was it? 14.4 or five or something. So, so we're kind of just now starting to see the impacts of it.And, and, you know, you took a couple of slides in your report to start discussing it. And it really is kind of one of the biggest topics and top of mind for subscription app developers, because it really is a huge shift in the landscape. So I want it to. Start with talking about that. And one of the things you shared in the, in the presentation is that you feel like it's a short-term pain, that's ultimately going to lead to a long-term gain.So I'd love to hear your thinking around what that pain is, but then also what you see the long-term game being.00:07:01 Eric:Yeah, it's a, it's a, great point. And, you know, anytime apple or Google make changes to their, their, their app stores, right. It's a seismic shift throughout the industry because it's something that impacts everyone. And so everyone has to be aware of these changes and then ultimately have a plan for them.And so I think that the change you're talking about David is really the. The implementation of, removing tracking for a lot of, a lot of these businesses specifically, like. And so what the change did with IDFA, is it, it really deprecated the ability for, for marketers within some of these CSS businesses to really accurately target people, specifically using Facebook or some of these other social networks.And so what it's doing is it. It's impacting the conversion rates on, CSS, CSS, businesses, marketing to consumers. And so if you just can't find that person that just is in love with, for example, biking, if you're a Strava marketer, it just takes you a lot longer to find that specific subscribers you might have to market to 10 people now to find two subscribers versus before you can market to five people and find two subscribers.And so it just means marketing efficiencies going down. And that can mean. Growth rates. It can impact conversion rates and ultimately impact just financials of these businesses. And so it's a pretty important consideration for any, CEO marketing team on how they go out and get their, their business in front of consumers.If Facebook's no longer as efficient, they have to find other ways. And so. So my, my thought is like, this is a short-term problem, right? It's something that's going to take people two to three months to adapt and find a new way to reach consumers. But ultimately my hope is for the space is you see the long-term game, which is what I was referencing.People really focus on organic ways of acquiring customers. Right? So instead of just pumping ads through Facebook and trying to find someone who fits a profile, you spend a lot more time really narrowly targeting your demographic, your niche, and then finding ways for them to find your product organically either.You know? So like a company that I work with, we sold a company called Pinkbike and so what they do is they partner with, the trade associations for mountain. And those trails associations now act almost as the marketing partner of pink bike to let consumers know about the fact that all the trail details.Is on, is on the pink bike app or it's called trail forks. And so that's, that's a really powerful, organic customer acquisition tool that they don't have to pay for. And so you're seeing, seeing the same thing happen with, like Strava is doing this, pre.com recently partnered with the NFL. So if your team's got a last fourth quarter fuel goal and you need to get something kicked, you can go to pray.com and submit a prayer for your kicker. I wish I was joking. It's a pretty brilliant idea. So I think this is really good for the sector overall, but yeah. Happy to dive into it. It's it's a fascinating00:09:37 Jacob:We it's a callback to a sub club podcast content, but, Greg, this, the plant app, this is something that they were doing, which is like, we're partnering with, plant nurseries. Yeah. To like, get their app into people's hands. And, yeah, I don't know if it's an earned media or. Bought media, but this is more like this is earned, right?This is like building an audience. You've seen it in the maker community, actually a lot, like in the indie SaaS community, more it's a different game when it has to be consumer scale. Right? Like there's a little bit different. You have to build maybe a bit more than you would in like, oh, just blog about.Built this thing and that's enough to get Indies, but you can apply the same thing, right? It's like produce content, produce something like low investment for users to get engaged with your brand because you're not building an app unless you have some, I mean, maybe you are, but you're not going to build something with very high, like multiples.Like if you're, if you don't have something unique to offer in the first place, but put that into like a more like lightly consumable format, start to build that audience and then make that an on-ramp and yeah, I agree. Like that's, that's something you own, right? Like your brand is. your brand doesn't exist on the app store, right?Like your brand can exist outside of these, like shifting sands and regulations and whatnot, and ultimately is like, you know, going to get reflected in your asset value if that's something you care about. Right. So, 00:10:53 Eric:Yeah, that's a key thing we talk about, right. If any business that we look at that's potentially selling or, or thinking about raising capital, right? It's like, how are you finding your. And if you're, if you're one channel is Facebook, and then consequently, like doing Facebook ads or apple ads on the, on the app store, that becomes pretty challenging.And so you want it to be such a good product, right? So it involves more work upfront. And just as you're talking about Jacob, the product's gotta be better. It's gotta be more efficient. It's got to reach consumers where they are with the problem they have. it becomes a lot more viral and a lot more sticky.So I think, I think it's going to be good for the sector.00:11:26 David:You wouldn't want to name names of course, but I am curious if. Had any clients, or just talks about anybody in the space where they were very reliant on Facebook specifically, and then, and have really struggled as things have changed. You know, I've been seeing some tweets around the, the consumer packaged goods space where some of these CPG companies are really struggling.And so I'm just curious. You know, without naming names, if, if there's any kind of high level things you could share around, apps that have struggled in this new paradigm. 00:12:02 Eric:Yeah. I mean, I definitely can't name names, you know, obviously I keep everything confidential with my clients, but even non-clients, you've seen CACs go up 20, 30%. you see, like, if you think about like conversion rates from installs to subs, That's a big metric of actual intent. Did you find the right user, right?Did someone just click on it and download it? Great. But if they're not actually subscribing that wasn't a successful transaction for you. And so the way I think about this, David is it's the app stores made tracking a lot harder, so it's harder to find your right consumer. So imagine if you're a CPG company, you walk into a grocery.And instead of stuff, being laid out perfectly across the shelves at the right height for you, they just tossed everything in the middle of the store and said, find what you want. Just go pick it out. Right. You're going to have much lower conversion. You're going to have much lower purchase rates because people aren't being targeted with the stuff they want to see.And so I think now you have to find, you know, it becomes more of a specialty situation where you're walking into a store that has stuff for just outdoor gear or very healthy granola. Right. And you're going specifically to that store for that. That's probably better in the long term, for a lot of these companies, 00:13:01 Jacob:Yeah, but there's, there's a lot of, there's a lot of folks that have benefited from this ease relative ease, right. And any sort of market disruption is going to be painful. I was like, anecdotally, I mean, David, we've heard on this podcast and elsewhere people who have just like straight up pause acquisition, who are like all re scrambling because yeah.You get it tuned to this very fine knife edge. And I imagine for like consumer physical goods, like DDC stuff, it's even worse because their margins are thinner than software. Right. 00:13:28 Eric:And you've got inventory and everything. Yeah. It's a totally different. 00:13:31 Jacob:But, you know, as you do like you, the market reshuffles and the people, I can figure it out, the fastest are gonna are going to come out the best.So. 00:13:39 Eric:There's going to be a shift though. So people under this is like that seismic shift that just shows how much of your reliance is on maybe one or two channels. Right? Two, two major tech companies sitting here in San Francisco. If you're super, truly relying on those and you're doing great, fine.But if a bump happens, right, how exposed are you? And so like, this will be a benefit. Right. I think it's going to be a huge benefit for Tik TOK. Right? I think people are finding really good ways to acquire customers through tic-tac. And so that's a very interesting channel. I think it'd be really good for influencers, right?If you have people that are very passionate about a certain space and then they go out and, you know, have a very core customer base that loves what they do specifically. It's going to be pretty powerful for them to.00:14:18 David:Yeah, and I was just gonna say, anecdotally, you know, we haven't done a super deep dive in our data, but at a, at a high level, I was. Bracing for our numbers to take a big dip. Like I, I mean, Jacob and I had talked about it in the spring about, you know, how, what is going to look like for RevenueCat, you know, are some of these subscription apps just going to completely unwind and people are apparently figuring it out because you know, it keeps going up until the right. 00:14:49 Jacob:I mean the consumer, the consumer need hasn't disappeared. Right. So maybe if they just weren't driven, you know, it's not going to, it can't just disappear overnight. Right? Like if you never, if you, if you are a Coke fan who never saw Coke out again, and it's like, you're still gonna buy it. Right. Like there's, there's, there's a certain amount of demand.That's just going to find the supply. But, but yeah, no, I mean, it's hard for us to, to definitively say looking at our data and aggregators. Cause there's so much, but they're definitely. Like this summer was definitely slower than we've had in the past. Like on my, as I'm writing my investor updates of the year and each month and stuff looking at it.But yeah, it wasn't like this catastrophic, you know, macro thing. And they were talking about a lot of like, you know, probably outliers that we hear about people who were affected, you know, more than others, but overall. I, I don't think our, I don't think our prediction last year of, of a potential recession was necessarily false.Like it doesn't, it definitely doesn't feel like it's sped up the ecosystem. Right. But it doesn't necessarily feel like a depression, right. Maybe, maybe a slight recession or just the normalization. 00:15:49 David:Looking at our data in aggregate that, some folks use this to their advantage and actually, and, and accelerated because they knew it was coming and they did focus more on product and organic and other things. And so for whatever, you know, losses, there were. Other folks more than made up for that.And that's it kind of the interesting thing about working with so many, I mean, we're closing in on 10,000 apps on revenue cat. And so, you know, you kind of have a pretty broad basket where you, you know, there are going to be winners and losers, but in aggregate subscription apps are just continuing to tick along and do really well. 00:16:26 Eric:David it's like you read directly from bullets on my report. I, I, I completely agree with you.00:16:34 David:Another thing I wanted to dive into was the, the COVID bump. Cause that's, that's another thing that's kind of been on everybody's mind is simultaneous to this. I was 14 and, and this is something we've talked about again internally, with revenue cat, is it. This summer was the, everybody who was vaccinated and, and Delta hadn't kind of bumped yet.And so, you know, may, June and July, there was a big shift socially. kind of it felt like it, especially in the U S that we were coming out of the pandemic. and, and so simultaneous to the app, tracking transparency, going into effect, we had these like societal shift. And then now we're kind of back into it a little bit with the Delta surge, but just curious what your thoughts are on how much of the boosts we saw in 2020 really was dependent DEMEC and then how much of that will actually linger as kind of shifting consumer preferences and shifting consumer spend.00:17:36 Eric:Yeah. I mean, there's, there's absolutely a companies that benefited from us is called the removal of inf in in-person conversations. Right? So like Bumble and DuoLingo, two companies that both went public, right. They both benefited because their, their business model is designed around, not meeting in person for the first couple of conversations.Right. And so. There's no way to say that they didn't benefit. the way I think about it, though, in this, in the CSS space, it's very similar to like the overall e-commerce space, right? Is consumers looked around to find a solution for a problem they're having right. Instacart you couldn't, you couldn't go to the grocery store or maybe you felt less comfortable going to the grocery store.So you tried an Instacart for the first time. Maybe you were, you know, thinking about meeting someone, you know, long-term but you never, you never wanted to try online dating or you couldn't go to the bar. So you tried online dating for the first time and sorry. What the pandemic did was it really opened up people's eyes to other options from what they'd been doing for the last 20 years, 50 years, whatever it was.And so they had to find other solutions to, you know, their demands, their needs. And so I don't, I think it's absolutely a COVID bump, but I still look at it as really as an accelerant of people adopting new products and services that they would have tried in three to four years. but the pandemic kind of pushed them to try something, to move out of their comfort zone and try something new.So, you know, I absolutely think you'll see a little bit of a downshift in, in some of these companies that had a really big boom, right? Like language learning. People had nothing to do for four to five months, especially over some of the winter times. So people tried new hobby, tried language learning, you know, that'll probably go down a little bit, but overall, if you look at it from like a five-year trend, It's going to be up substantially from where it was in 20 17, 20 18, 20 19, and 2020, you know, made it look like a little bit of bump, but eventually I think those companies will continue to grow and surpass what anything they did in 2020. 00:19:21 David:Yeah, that's really interesting.00:19:22 Jacob:I'll back that up as well with the, the unreleased, Jacob looks at graphs and then gives a, gives a hand wavy descriptions of them. But we, yeah, we, we were, I was kind of bracing for it as well. And then I would say this summer was slow and like, David was. We're not sure why. I think it was, I think it was a number of factors things have since picked up again.But I think generally summers are slow for software a and then B. Yeah, I think we were seeing kind of like a little bit of the payback for, for COVID perhaps it's a, it's a vial. I think it's a plausible theory. We don't, it's really hard to prove. but we have not seen, you know, we, we saw our COVID experience was really drastic.And we have not seen. Similar, like back off from that, like, it has been like, it has been like we just compressed six months and I'm saying partially, this is just revenue casts, individual story because of where we were last year. But then I think also it's, it's indicative of the system in general.It's like, I think, yeah, we just compressed a whole bunch of, like consumer behavior change into like a very short period of time. And yeah, we're not gonna be able to keep that up. Right. We're not gonna be able to continue. To, to crunch that in, or we'll run out of consumers eventually. But, but it doesn't look like everybody's, you know, because, you know, I think the story for CSS in general, it's like we've delivered value for people, right?Like it's, it's a good, it's a good product, right? The whole line, not every product is good, but in general it's like a it's, it's a decent deal. And so I, I think more people discovering that. Yeah, it can only get bigger, right.00:20:55 Eric:Yeah, I think we talked about it in our first year, our first time together, right on the last podcast, which is if these businesses are truly making consumers' lives better, this is going to be a very long-term.00:21:04 Jacob:Yeah. 00:21:05 David:And speaking of that, and the two companies you just mentioned, in the, Time since we last spoke, but Bumble and DuoLingo went public and some other consumer subscription, apps went public. so tell me a little bit about your, your perspective on the, the public investor. Excitement for CSS.I mean, we're seeing pretty high multiples in the both of those IPS did, did very well. so what are you seeing in the, in the public investor space?00:21:33 Eric:Yeah, I think, I think the public market has really woken up to this business model, the power of it and understanding, you know, it's public markets. They do a lot of pattern matching, right? If they've seen something be super successful, they look for something that looks similar to that. And so I think a lot of people are waking up to, how powerful Salesforce is not waking up.They're well awake, very aware of SAS businesses. But I think they're seeing that same pattern starts to take, hold on, CSS. It just has different metrics. Right? And so, you know, Bumble's now public, the match group's been public for quite some time. Once I spun out of IAC, you've got Netflix and Spotify, which are fantastic examples of the international global reach of Content, and how consumers are very sticky for something they love.And so. These businesses who can get to scale really quickly, like you nuMe, right, is a competitor to weight Watchers. Weight Watchers has been around for decades, but Newman built a better mouse trap and they acquired customers at a really quick rate. And, you know, they're well over 400 million in revenue and ready for the public market.So I expect them to go public. Pretty soon. And so I think there's going to be a lot of businesses that follow them that are using this, this metric. So, and then that'll cascade all the way through, from public market investors as, as exit opportunities all the way down to, you know, series a series B investors, seeing this business model work and scale.00:22:47 Jacob:Yeah. I mean, I guess my, like, what's your, like, I, I, when, when we started seeing these go public in the last, like couple of years, so, well, I mean, honestly, it's like, Since we started RevenueCat, like was actually the, kind of the first unicorns, even like, I guess Bumble might've been passing unicorn when we got started, but like there weren't a ton and now it's like every, every month there's a funding announcement for a CSS company.That's a, that's a university. I mean, partially that's just like valuations going up and stuff like this, but like, how do you see. The evolution of this market. Long-term, you know, so DuoLingo pops becomes the first, you know, are they going to be like Salesforce and just be dominant in that space forever?Or do you see it being maybe more dynamic than sasses?00:23:31 Eric:I think it's a little more dynamic than SAS for, for a couple of reasons. One, new consumers like to try stuff, right. And so if it's with like a Salesforce or something, right. That integrates into your day to day operations from a business model perspective, right. So if something breaks there, right.Your business. 00:23:47 Jacob:Is very high. 00:23:48 Eric:Yeah, it's a little higher, right. And it's not just you using it. It's your entire business. Right? So you've got 10 people using this product or 20 people or 5,000, depending on the size of your company. Right. In CSS. It's it's you, maybe you and your family. Right? So it's a little bit of a different switching cost.So that's, that's one. However, these companies can scale a lot of. and they can, they don't have like the heavy, heavy cost and, you know, on the sales and marketing side. So I think they have an ability to actually get to profitability a lot faster, especially if they have an organic customer acquisition engine.And so I think that's going to be a big difference between that, between CSS and SAS. 00:24:23 Jacob:So, yeah, you mentioned the metrics are different. What are, what are the metrics that folks are, public investors are looking at for these companies that it might be different from a SAS company?00:24:33 Eric:Yeah. I mean, a lot of them are the same metrics, but the numbers that are like good are different, right? So like on a SAS business model, right. Revenue growth is just as attractive as a CSS business model revenue growth. Right. Everyone wants to see high double digits, triple digit numbers on revenue growth.But like an interesting thing is net revenue retention. Now that's very different, right? In CSS, you typically don't upcharge people or have additional seats be filled because it's just one person. Right. So, you know, maybe you get an. 00:24:59 Jacob:It's not much expansion opportunity. 00:25:00 Eric:Yeah, you can, you can do maybe some, some packages, upgrades, and people are starting to experiment that you can pack it and you can experiment with bump, bundling 00:25:07 Jacob:But it's certainly never going to be greater. It's never going to be net positive, right? 00:25:11 Eric:No, you're never going to see a net positive number where a lot of the SAS businesses, right.People are looking for net revenue, retention, numbers of north of one, 20, 120% net revenue retention 00:25:18 Jacob:I mean the opposite of churn, right. Which if you have a CSS business with opposite, Congratulations. like 00:25:25 Eric:Yeah. You're doing something well, and I haven't found it yet, but yeah, 00:25:28 Jacob:You might be the only one 00:25:29 Eric:Yes, I think that's right. 00:25:31 David:Quick, point though, to counterpoint to what y'all were both just saying, of all the apps, dating app, it's totally slipping my mind. 00:25:40 Jacob:Tinder. partnership. David, look at us. We're like on a wavelength. 00:25:46 David:They, they have in-app purchase. They have consumable in-app purchases to boost your, profile. They're one of the few that I've seen that could potentially actually have a. A a positive, net revenue retention. whereas most subscription apps are just a subscription. it's going to be interesting to see if other subscription apps can pull off that sort of model that you could actually generate a, a net net revenue retention. 00:26:19 Eric:I think you nailed it, David. So that's coming from. Right. I think people first experimented with, Hey, how do I get someone to buy my product every year or every month? Right. And now is how do you make it even better? So they're starting to listen to their core users. And we talk about this a little bit on the LTVs.And what do these people want and what makes this experience even better for them. And I think you nailed it with Tinder, right? It's the most, it's the easiest thing to convince people to, to encourage more is more, you know, more relationships, right? People love more relationships and people are willing to pay for that.And so, you know, then what else, what else could this go down the path of, right. What other options could people pay for additional services? Or what we've seen is like marketplaces or transactions spinning on. Right. So if you have a really passionate user base and they're going out there doing, camping, for example, like on, on the dirt, it's a camping site, right?What about doing a marketplace to buy and sell use tents right now is not a subscription, but now if someone's paying, like, okay, now they bought something through your marketplace and you get 10% of that purchase price. So there's going to be a lot of stuff. I think that happens there, to encourage that, to encourage that LTV numbers start rising, I just haven't seen a ton yet, make it happen above 00:27:26 Jacob:It's a scale problem. I need to do that either be at such scale for that to make sense. So I was going to say for anybody, listening to this, that hasn't reached 20 million in ARR, probably north of that do not add a marketplace to your 00:27:37 Eric:I totally agree with that. Very, very much focused focus, focus. And so I would even say like closer to 50 00:27:43 Jacob:Yeah. I mean, until you're like, how do we get this thing public? Or how do we show, like, how do we show like N plus one revenue streams, right? Like it's kinda more what it's about than it is necessarily the revenue generated. 00:27:53 Eric:I'm just a dreamer though. You're just a realist. I'm here, I'm here. And you're just telling me all that stuff that could go wrong. 00:27:58 David:One of the things you just kinda touched on that I wanted to dive deeper into was, was a truth about LTVs. And I love this slide on the, on your presentation, kind of defining these two cohorts, which I've never heard, defined this way. And I really loved the analogy and I'm going to start sort of stealing it from you and use.And crediting you of course. but in the presentation you define, tourists and locals, and then talk about kind of the importance of identifying these different cohorts. So tell me about Who the locals are and why that matters and who the tourists are and how companies can start, analyzing their data to understand this and better target marketing, better, craft the experience in the app and, and those sorts of things. 00:28:46 Eric:Yeah. So we're going to geek out here guys, and, really go deep into STSS. Right? So this is where, this is where my brain goes sometimes on a Saturday night, which is just exciting. but so the way I've been thinking about CSS a lot, and so the LTV component of CSS, which is lifetime value, Which I'm sure all your listeners are very, very well aware of is kind of like how much money can you make from this consumer over time.Right. And it's a function of your pricing and it's an, a function of your turn rate. And so, a lot of people are very focused on this metric as investors or buyers, right? Because it's effectively, how valuable is your customer? So it's an extremely important metric. The problem with this metric and lots of other metrics is it's, it's derived from an app.Right. It's looking at all your users that come into your, in your ecosystem is paying customers. And then how do they perform over time? and it's, it's driven, it's driven off an average of all your users. And so when I've gone through some of my client's data and you look at their user base, right, we, we quickly discovered there's a, there's kind of two different profiles.And I won't use any names here, but let's just, let's just say it's, a walking company, right? So you're, you've got people that go out and they, they sign up, you have a hundred people that. And 20 of them start walking every day and they're, and they, this is what they love and they're tracking, they're walking and you've got another 40 that do it for like a month or two.And then they kind of drop off and then just like, I'm going to go do biking or skateboarding or something. And I switch and you've got another people that sign up. They subscribed to it because their friend pressured him into it and they hate walking and they're never going to walk again and they turn off immediately.Right. So you kind of have those three different groups, some that are just going to do whatever. Some that do it for two to three months and then leave. And then some that do it the first month. And then say, forget this. I'm never going to use this again. And so the problem is your LTV of each one of those three groups are very, very different.And so what, we've, what we've been guiding investors and entrepreneurs, as they think about their growing their businesses, really find out who those locals are, who those people that are going to come and use your app every day, every week, every summer, whatever, whatever the metric is that you're looking.And find ways to measure that, right? Because ultimately that's who you need to bring to your community. And one, those people make the community run more robust, right? Cause they're constantly contributing feedback into the. To, they're much more likely to stay around with you guys. And so you need to find those tools that they're looking for.Right? Like seeing around the corner and saying like, okay, this person loves walking. What else can I provide them? What about a weather forecast? So now that they are about to go out and walking, you know, what does the weather look like? And, oh my God, this is now, this is my one-stop stop for, for walking.And so I think w we've been guidinGP Bullhound's like if you use the averages as a broad metric and that's great, and you should, because investors are going to want to know that, but, but really dig deep into your, your cohort and understand like who's using this every day, all day and what do they need. And so if you can really identify that and show that LTV to, to invest in.I think you can get people a lot more excited than just like that average LTV, right? Cause this shows them potential of what it can be over three to five years, which is really important if you're two or three year old company. Right. And try to convince someone to invest in you showing them that lifetime value of the tour or the locals is going to be a lot more valuable than that average.00:31:46 Jacob:I mean, if you think about just as the, you know, I think it's one of the, you highlighted one of the hard parts of assessing these businesses early on, is that yeah. Your cohort, your total subscriber base is very heavily biased on like your most recent cohort, because often you're also growing, right?Like that's often, like your most recent cohort might be the size of your first five, you know? just because, and for that reason you can really have scurry looking data. but you know, if you think five years from now, mostly. Those other two groups you mentioned there they'll have turned out from most cohorts.Right? And then the only ones remaining for four years of cohorts will be these locals and these long-term retention. And then your total subscriber base is gonna look very different than it does today. Right. And yeah, I'll admit revenue. I've tried to solve this problem in the product. And we still are trying to solve this problem in the product.It's how do we like show people? Cause you're, you're dealing with a mixed population, right? And like you, you can also also run into a problem with begging the COO or like doing very, like, look, you got to invest in and say like, look, look how great my retention is. If I just ignore them. Bad users. Right?Like, let me just look at the good ones. Right. But there is something there in that. What you're talking about, Eric, that long, that very long-term view is that if these users really do retain for a long time, eventually they will be the lion's share of. Subscriber base. And that churn that we talk about, like, you know, if you're adding 1% of your total user base, the most you can experience off of that as like 1% of churn, right.Versus when you're adding half, you know, if you have 110,000 subscribers and you add 10,000 in a month, that's going to be a huge effect to your overall subscription subscription base. Right. so yeah, I think, I think, you know, we certainly have a lot to build on the tooling side. Right. And I think it goes to what you're talking about.Air. We're very early. Like, I think we've just kind of solved infrastructure, like infrastructure. I mean, I would even say kind of, cause there's a lot for us that we need to do yet. but as far as like data science and actually yeah. Being able to outside of a spreadsheet, understand this stuff. It's it's, it's not trivial.It's not trivial. All 00:33:51 Eric:It's extremely hard. And I think like, cause there's so much more you could do once you've broken those two cohorts into tourists and locals, right? Like how do you acquire the locals versus how do you acquire the tourists? Are tourists coming through like Facebook, apple store and the locals are coming from referrals.Okay. So maybe your Facebook spend, is that even worth doing the spending on right. If they're, if they're turning off after a month or two, you know, subscribers is a vanity metric, right. If they don't. All right. You can grow. We talked about this in our 2020 report. We have like this cheetah versus thoroughbred.Right. And it's really easy to show a ton of growth. And you've got all these subscribers and everything is fantastic. Right. But if those subscribers get tired and they turn off right away, you kind of probably wasted money on them. Right. Maybe you got paid back in a month, right. So you didn't lose like on the CAC spend right in here, but you're not building your business.Right. You're just gonna you're pinching pennies. 00:34:36 Jacob:But not a lot of work. Right? Like it's not actually getting translated into business 00:34:39 Eric:Exactly. So is it better to kind of focus on the product, right? Figure out what those, those, tourists are using and spend less time on the marketing side and really nailed the products like, Hey, you'll probably grow slower, right? And That's an issue. That's a risk you have to take, but maybe you can grow more efficiently, more capital efficiency.00:34:55 Jacob:Capital's free now, so that's not a 00:34:58 Eric:That's a fair point of half my fault, I'll take full responsibility for some of that. Right. 00:35:03 Jacob:I think it's interesting how this like feeds into, you know, kind of going back to targeting and ad targeting how often. Optimized Facebook campaigns on like trial conversion. And that doesn't even that doesn't, that's all your tourists and your locals. I mean, maybe some of those that never even start a trial would be cause, but there's a lot of tourists in that group that started trial right.Or convert a trial. And a lot of people are targeting off of that. Right. And so as these methods become less. Good. it will force it'll force developers to yeah. Maybe do one of these scary things actually talk to users, right? Like actually like find those locals, like go in your analytics. And I think just the thing as you were talking about, I just want to point out that, like, I don't think you necessarily need to define this off of monetization retention either could just be retention, like pure usage retention, but it could also be engagement.Yeah. I think about the way Facebook, Oriented their growth teams very early on, which was like findinGP Bullhound that connected, like that was a really key step for them in their product, was to get people to make like three or four. I forget there's some number of friends and they oriented all of their growth efforts around that.Find the thing that people do in your. Shows that they're engaged and give them opportunities to show that. And then, you know, you can use that as an indicator. Okay. Talk to those folks and actually talk to them, right? Like find out, always put something in your app that lets you reach out to them in some way.And like, have you can get on a zoom call. I've done. It's easier now in SaaS land because like, I, I, I, people I'm an app. People like I know how to talk to them, but when we were, when I was working in consumer. Phone calls were more awkward, right? It was different. You're not going to books like outside of computer land, but still like just incredibly valuable.And, and, and, and I think like, you know, if we want to talk about the way to build the way to fully realize how CSS is going to, I'm just going to go all in on your turmeric, by the way, I said, I'm going to, 00:36:57 Eric:That.00:36:57 Jacob:I'm going to push it. We're going to standardize. But 00:36:59 Eric:It's not trademark, but knock it out. 00:37:01 Jacob:All right. So to fully like, to fully realize the potential to like help problems for people.Like, I think we need to lean into this more of this model. Right. Rather than I've always kind of like had an uncomfortable relationship with how our RevenueCat fits into the like hyper fast monetization stuff. Right. I'm like, get users, check your CAC, put more money into Facebook. Right. And so, the more the industry gets away from that. The happier I am. I don't know. Like you said, maybe it doesn't go quite as fast, but I think the overall Tam will be larger. Right? If we take that approach,00:37:33 Eric:Think that's right. And, you know, I mean, I've talked to a bunch of founders that haven't raised capital. Right. And they build something that like their users love. Right. Like, so I don't know if you guys saw the deal with day one that got bought by automatic braised almost as your outside capital.Right. He built. 00:37:46 Jacob:Big fans that they won. 00:37:47 Eric:Yeah. Yeah. I was a big,I got it's an awesome business and he did that exact same thing. Right. He just listened to his users. He didn't care about vanity metrics grew really nicely. Right. And it wasn't like, you know, he's not getting tech crunch publishing, but that's fine. Right. You know, on an amazing business.And then, you know, I've got a fantastic exit out of it. So I think, I think people are really waking up to that's a very much a possibility here in the.00:38:08 David:Yeah, one thing I wanted to highlight too, in that graph that you made, and for people that are listening to this, you can go to the show notes. We'll have links to the, Eric's presentation and you can find this chart, but to visualize it00:38:25 Jacob:Page 18. it open right here. 00:38:27 David:Following along at home, the, line for the locals drops.So, you know, even, even for locals, you're going to have some turn early on, but then it essentially flat lines. and I'm sure you did that very purposely to kind of illustrate how. How long term some of these, these, this retention can end up being, and it's something we've actually been talking on the podcast about recently is that we're so early in the space.We don't even really know what, how to measure LTV. Cause you're going to have people who ended up subscribing for decades. and years and years and years, if not decades. And so, and, and then, you know, to your point about the cheetah versus thoroughbred, another great chart in the patient number, Jacob Page number00:39:16 Jacob:I 00:39:17 David:Cheetah versus thoroughbred but in that tuna versus thoroughbred, The other aspect to locals, and we're kind of touched on it earlier is that those cohorts start to stack. So when you identify this cohort, that is going to be a very long-term cohort. That's going to stay subscribed and have very low churn. You, you acquire a hundred thousand this year, and then they're still there next year.And you put a hundred thousand on top of that. And those are still there next year. And by year three, you know, you just continue to grow this pie of people who are very, very sticky in the product. And I think that's part of what. you know, what you're talking about with delinquent and Bumble and other companies is like, we're still just starting to understand even as different as this is from SaaS.We're starting to see similar dynamics as far as. Early on the churn is so high, but then you do have this really strong stickiness over the long-term that, that, that can build a really healthy business of people who really love your, your product and really are invested in it and are going to stay for a really long time.So yeah, I just wanted to point that out that, that I, I love that aspect of the chart of how flat that line is for the locals. 00:40:35 Eric:I mean, you, you can see it in your own spending patterns, right? Like how many of you guys have subscribed to Netflix or Spotify for more than five years? I bet it's a good chunk of your listeners. Right? So, I mean, if I look at my phone, right, I'm going to subscribe to all trails for the next decade, 00:40:47 Jacob:Yeah, I've got CSS. I I've started subscribing to in 20 13, 14, like as 00:40:52 Eric:Yeah. 00:40:52 Jacob:It was a thing, 00:40:53 Eric:I've, been a script user for four years and I still download audio books or download other books from like the San Francisco library. Cause I'm probably the cheapest banker of all time. but you know, I still use script 00:41:04 Jacob:It's finding margin, Eric you're finding margin. That's what that is. 00:41:07 Eric:Exactly. I've pinched counties all day.But yeah, so I mean, I, I think those tails David to your point are still being written. And so that's the whole point, right? If you use average LTV and you say, all right, well, we have 30% churn that math means you lose every user in three years, and that's just not how it works. And if with really good businesses that are delivering value, right?And so then once you convince people of that, right, the investment case becomes a very different company.00:41:30 David:And speaking of that, you, you had a great, slide on investor benchmarks. And so I wanted to get to that real quick, tell me about how you, how you thought. These different metrics. And what, and how investors think about these metrics? Because you know, we're talking about LTV and in there you have LTV to CAC of you, you know, for a really strong app, that investor would be super excited about.You're closest to. Six X versus less than three X, you start to cool off. So, yeah. Walk us through each of these metrics and kind of how you think about it, how you think investors think about it, And even how that's kind of maturing as we understand the space better. 00:42:10 Eric:Yeah. And just to note like these metrics are all different for different types of businesses, right? If you've been around for a year, these metrics are very different versus if you've been around for 10 years, right. If you're in high growth, you know, venture back, spending a lot of money, these metrics look very different than if you're a bootstrap business, you know, just trying to inch out.You know, 10% growth a year. Right. So they can be very different. And the important thing is how does the story of your business and what you're trying to accomplish tie to these metrics? Right. So that's what we spent a lot of time talking to founders about is, is what's good based on what you're trying to do.Right. So it's just how you, how do you tell your story through the metrics? but yeah, so a couple of your points on the S on the slide, we talk about like user growth rates, gross margins, LTV to CAC, churn rates, free to paid conversion rate, and then sales efficiency. and then, you know, just to talk about something different, we, we talked about LTV a little bit earlier, but maybe talking about, churn, right.And so like how quickly do people churn off? Right. And so that's, there's a couple different ways to interpret churn, right? It's one, they didn't find your product. Too. They thought it was really expensive. or if they're not turning, they really love something you've put together. Right. And they decided to pay you multiple times for that either monthly or annual.And so what we just try to do is try to tell the story of where the business is at and where it's going by looking at these metrics. And so, you know, that's why it's so important to truly understand these metrics, because if you don't understand the metrics, it's hard to tie that to the story. so we spent a lot of time with any client or even non-clients just talking about this stuff to truly understand, you know, what investors care about.And it's, you know, if someone's buying the business, they may care a very good. They may care about very different metrics for someone who's investing your business for growth, right? So someone's going to put 40%, $40 million on your balance sheet to go grow. They may be focused less on LTV to CAC now because your LTV is not formally formed, right.They don't know how good it is, but they will focus very heavily on churn, which is a reflection of how good your product is and how good you're finding consumers that love your product. Right. So those, those are metrics that they may focus. They made me more comfortable spending a lot of money in the next two years.Right. So your CACs going to look a lot worse because they watched, you acquire a lot of users to make the platform a lot better. Right. And a lot of CSS businesses, right. UGC is a, is a, is a spinoff of user activity on the post. Beautiful uploading photos reviews. They're adding new new items on, on the platform for other users to use.And so it's worth spending more money to get those people in the first two to three years because your platform becomes that much better and that much more valuable, right? So you may be willing to burn down to a, an LTV to CAC of three X or something like that in the near term, or sometimes even two extra one X, because it's a land grab for those.Once you're on their platform right now. You want to see that LTV to CAC, start to move up a little bit, right? So you start to put it to four or five, six X, LTV to CAC. So it's all about where your business is. It's each different stage, but it's important to have a story and a message around why your numbers are, what they are.00:45:03 Jacob:Of the, I have the slides up in third slide, 37 for anybody who's following along at home. all of these as a veteran SAS CSS person, every annual user growth rate, gross margin to be cash I'll clear me, sales efficiency ratio. Can you talk about that one? Cause that one's, that one's, not as a little foreign to me. 00:45:22 Eric:Yeah. It's, it's a, it's more of a metric that's come out of SAS just to be honest. So it's thinking about like, it involves like how, how many users are you gaining? It's how much revenue you're gaining versus how much money are you putting out there? So it's a little bit of a different metric. and most CSS businesses don't get to that yet because they typically don't have heavy sales team.And so we've included it because you're starting to see some of these CSS businesses really start to grow. And so how much revenue gaining versus how much revenue you're losing and how much is it costing you to do that? And so that's when you're starting to get into like the tens to $20 million of, of, marketing spend a year, it's, it's, important to understand like how efficient is that spend being, and this is the best metric 00:46:00 Jacob:We, it says called sales, but you actually throw in marketing, spend in there as well. So it's like all go to market spend 00:46:07 Eric:Yeah. Are using head count, not just like the ad dollars. right. 00:46:10 Jacob:Right. 00:46:11 Eric:It's like a fully loaded CAC number, like 00:46:13 Jacob:Your, all of your people telling Facebook what to do, 00:46:17 Eric:Yep, exactly. Exactly. 00:46:18 Jacob:Content graders, like all that stuff, right? Yeah. 00:46:20 Eric:If you've got a hundred people running around campus, right. Promoting your app. Right. Okay. How much those people cost. Right. So it's an important way to think about how much you grow. And it's a way to think about like how well can you grow a capitally efficient capital with limited amounts of capital.So it's an important one. We look at it, it's typically a later stage, right? So you've gotta be like north of 20 million of 00:46:40 Jacob:So he's going to be super high when you're small, right? Because you're, you're your. 00:46:43 Eric:Sir. Request important. 00:46:44 Jacob:People are discreet. Right. And that you can't, you're not continuous. So, and also your, your, your revenue just grows less because of like, you know, you're smaller, you're less, well-known like, you're less is momentum is things like this. 00:46:56 David:Well, we're starting to run low on time, but there's so much more I want to talk to you about, but just to hit one last thing. I also love this chart you did, of Pandora versus Spotify. It's such a. And encapsulation, really everything that we've been talking about on this podcast is to see how well Spotify revenue has compounded over the past few years versus a Pandora, which, which look was the juggernaut.You know, when, when, when Spotify started. so, so walk us through this chart. And in how and why you think, you know, Spotify was able to, to grow the way they did while Pandora really struggled. And obviously there's a ton of, you know, other business factors and execution and other things. But, but I think overall, this does speak to the power of CSS.00:47:54 Eric:Yeah. And this is, this is something we did back in 2020 when we were just trying to decide like, Hey, what's is this CSS thing real? And, and a big question you get from, from investors. And listen, I think a lot of them have stopped asking this question because the case studies are out there is why would someone pay monthly or annually for something they can get for free?And by get for free, it means listening to, or watch. Right. And so I wanted to see like, alright, graphically or like actually numbers to will people, more companies make more money by making that really hard decision and say, pay me for what I'm giving you first. I'll give you something for free and exchange every half hour, you watch two minutes of ads, right?That's a really hard question to say, because it involves you putting a lot of value in your product. And so entrepreneurs, you know, product developers have to. Is this worth money or am I giving something out to people that, Hey, they'll kind of use it if they get it for free. Right? So it's a, it's a gut check for people to say, like, did I build something that someone will buy?That's hard. That's really challenging. Ask yourself, especially if you've started with advertising. and Spotify, you know, listen, they were a small company based in the Nordics, right. Versus Pandora US-based juggernaut and, and raised a lot of money. Right. That's a tough challenge. And so they took a really tough thing and said like, Hey, we're going to get.And make people pay for our product and we're going to make it better. But the crazy thing that happens though, right, is you make so much more on a user from subscriptions than you do from average. Right on advertising. You're trying to pick up pennies per subscription on some or pennies per user on the subscriber.You're making 10, 20 bucks a month, depending maybe maybe $60 a year for a subscriber. So the amount of users you have compounds so quickly, and then if you have that heavy retention, all of a sudden, you've got these really thick layers of cashflow that come in every year, use that cashflow. You invest it back in.He invested back in product and you do it again and again and again, and all of a sudden you've got a better product. And if you have a better product, people will come to it. And if it's something that they're using daily, right. Why would you not be comfortable like paying five bucks? Right. If I think about like how much my Netflix subscription is, right.It's $11 a month or something like that. Right. Well, I probably watch 10 hours of Netflix a month, right? So I'm paying a dollar an hour to be entertained. Pretty good deal. And so, like, I think if people, people start doing that math and you start to see like how powerful that that subscription is for user versus an ad driven, it becomes pretty interesting.And so I think you've seen this case study play out over and over and over across CSS, where if you build a good enough product, you know, a 10 X product versus the free option, people will pay for it. 00:50:24 David:And Spotify does double dip as well, which is interesting is that they have a good enough free tier and people can listen for free. But they choose to spend, even though they can. And so, so Spotify is a great example of, of double-dipping with a great freemium tier, but then a good enough product in a compelling enough reason that people will pay.00:50:47 Jacob:Yeah, another dimension. I don't know the specifics of Pandora and Spotify. It's like fundraising history, but if you have like the subscriber. Subscription revenue momentum makes capital more easy to access. And you look at some of this. I think of some of the strategic stuff that Spotify has done. Like they got the Beatles on Spotify pretty early on and lets up, they spent big on partnerships and Content and stuff.And if you have momentum, if you have hard dollars, it's a lot easier to go to an investor and be like, Hey, like I want to raise X million dollar. Revenue growth. I have, like, this is very clearly a business. I can remember raising money in the pre revenue is everything era or like trying to raise money.And it was like a lot harder. Right. Cause it was just like hand waves and we're going to grow and like, and now it's like, yeah, for better or worse, you go over the curtain and you show something. Right. But the big benefit too, I think for founders, it's not just for investor, for founders. It's like, yeah, you build a great business.You're building a safety net, right? Like if you can't fundraise, it's not the end of the world. Like you have options. And I think that's part of the reason why also, I mean, now we're getting into fundraising like macro, but that's part of the reason the funding environment is crazy because businesses are sturdier than they've ever been.Like they need capital less than they've ever needed it. Right. And so like, that's why it's gotten cheaper. or, you know, evaluation's gotten higher same thing. Right. So, Anyway. Yeah. And this is a fascinating to put this. I already was not on here, which was my horse. And I was like really pulling for them.And then it gets to a whole different story of why that's not on there. But, but yeah, it's fascinating.00:52:11 David:Well, I think that's a really fun place to end the story of Spotify, one of the biggest juggernauts in the space. We're going to include in the show notes a link to the report, a link to your LinkedIn and Twitter to follow along.Anything else you want to share as we wrap up? 00:52:27 Eric:No guys. Always a pleasure to join you. One thing for your audience users, we are trying to make the GP Bullhound CSS report a resource for founders. This year, for the first time ever, we did include a link to a survey.So, if you want to contribute your data, what we'll do is aggregate everything, anonymize it, and then we'll provide back a summary to users to say, “Hey, here's your LTV to CAC. How does this compare to other founders at this stage?” We are trying to be a resource. I'll probably give you guys that link, if you don't mind. We'd love to have as many people as possible. No pressure.Of course, all of it would be anonymized. This isn't a marketing tactic for us. It's us giving back to the community. We'd love people to take a second to do the survey, but if not, don't hesitate to email me, tweet at me, hit me on LinkedIn with questions, comments, and specifically stuff We got wrong. Absolutely love to hear where we can learn.00:53:22 Jacob:Yeah. 00:53:23 Eric:Because we're not building, we're just talking about what you guys are doing.00:53:26 Jacob:By the time you print this thing, it's like, stuff's changed, right? Like it's changing so fast.00:53:32 Eric:The whole Apple thing when we were publishing was happening everyday. And I was like, this is unbelievable.00:53:36 Jacob:And wait to...00:53:36 Eric:Since July, and I have to change every minute. Yeah. I had to change a PowerPoint. You guys had to change code. So I think one was a lot harder.00:53:44 David:Well, it was great having you on, Eric, and we'll have to make this an annual thing.00:53:49 Eric:Sounds good.You're welcome.00:53:51 Jacob:Yeah, we'll see you next year. 00:53:52 David:See you in 2022.00:53:54 Eric:All right. Thanks David. Thanks Jacob.
Watch the video version of this show on YouTube »Matthieu Rouif is the co-founder and CEO of PhotoRoom. PhotoRoom enables anyone to create studio-quality photos on their iPhone. Before founding PhotoRoom, Matthieu was the Senior Project Manager at GoPro. Matthieu is also the co-founder and CTO of HeyCrowd, and co-founder and CEO of As-App.Matthieu earned his graduate degree in materials science and engineering from Stanford University, and his bachelor's degrees in economics, and physics from École Polytechnique. While at École Polytechnique, Matthieu was a member of the skydiving team and debate team. Matthieu also served as a Parachutist Commando Officer in the French Air Force.Matthieu started developing apps in 2009 as a student at Stanford, and subsequently started two iPhone app companies. He was part of the Replay app team when they won App of the Year in 2014. Matthieu started PhotoRoom after leaving GoPro in 2018.In this episode, you'll learn: Matthieu's retention strategies for keeping app users subscribed Innovative and clever ways to get users to demo your app Balancing your app's pricing and features How churn can be an asset Links & Resources YC HeyCrowd GoPro Photoshop Zenlea Shopify Poshmark Depop Corel Matthieu Rouif's Links Matthieu on Twitter Matthieu on LinkendIn PhotoRoom is hiring! 10 Tools to Ship an iOS App in 2 Weeks PhotoRoom's Website PhotoRoom API PhotoRoom on Twitter Follow us on Twitter: David Barnard Jacob Eiting RevenueCat Sub Club Episode Transcript00:00:00 David:Hello, I'm your host, David Barnard. And with me as always, Jacob Eiting, RevenueCat CEO. Our guest today is Matt Rouif, co-founder and CEO at PhotoRoom, the app for removing backgrounds and creating studio quality photos right from your phone.On the podcast, we talk with Matt about how his time at GoPro led to founding PhotoRoom, how churn can actually be an asset, and how being locked in Apple's basement led to one of PhotoRoom's biggest marketing wins.Hey, Matt. Thanks for joining us on the podcast today. How are you doing?00:00:48 Matthieu:Great. Hey David, Hey Jacob.00:00:51 Jacob:Hi, it's nice to finally meet internet/virtual face-to-face. We've known each other for a little while. I've become fortunate to know you kind of through RevenueCat, but not actually know-know you. So, it's nice to finally put a face to the name.I was looking back through my email and I think the first I ever heard of you was from our mutual friend, Cisco, if I say that correctly?00:01:23 Matthieu:Yeah, Francisco.00:01:24 Jacob:Francisco, who shared with me a blog post that I had seen that you wrote where you talked about RevenueCat as part of your stack. Since then, I think we talked as you were thinking about going into YC, and then after YC, I put in a little bit of money, so this is a good opportunity to check in on my investment.I'm super excited to dive in, because there's a lot of questions. I kind of have followed you guys and kind of seeing some of the stuff you've been doing, but I don't know, like the behind the scenes decision making processes and like, and all that stuff. So yeah, I'm excited to hear the story firsthand.00:02:04 David:Yeah, but before we get into PhotoRoom, you've got quite a history in app development. So, I want to go back to the beginning and talk war stories. A lot of people were in the industry way back when. Jacob and I both started really early as well. So, you got your start during the Stanford class and you were actually a teaching assistant at Stanford at the time, right? I'm kind of stealing your story, but yeah. Tell me, tell me how you got into it.00:02:34 Matthieu:Yeah. Actually I wasn't a teaching assistant in physics. I was doing a master's in physics at Stanford, right at the moment of the first iPhone class. And, I actually went to Stanford because I was fascinated by the entrepreneurship. And I had this business idea of printing photos and sending them.And that seemed a lot easier not to buy hardware, but just use the iPhone which just started at that point. So, I was at Stanford, there was the iPhone class. I wanted to do a photo app. So, see, 12 years later....00:03:05 Jacob:A 12 year overnight success.00:03:07 Matthieu:That's what they say. Exactly. And, yeah, I got, I actually, I got started, programming.I was doing physics before, and I didn't know anything about programming. So I took a class with a friend that went through the basics, and I just wanted to push products on apps. And I found that the iPhone was the best at that point. And actually the photo app became something else.The first company I started back in grad school and they became like a ski resorts app. I shipped, we had all of the major ski resorts. And, It was a great, I did that for two years and a major ski resorts and, yeah.I started an apps company after that, one called HeyCrowd around a social network. So like we had surveys that you could answer to with polls, like, a bit like Instagram stories now, and that didn't work so well compared to the ski resort, but, yeah, I got into iPhone apps right since the beginning.00:04:18 Jacob:I remember the Stanford course. It was on iTunes U that was mass disseminated or was it the later one?00:04:25 Matthieu:No, it was the one that it wasn't Stanford U. There was a, the guy from Fitboard during the class. I don't know if it was doing that.00:04:42 Jacob:Yeah. I remember. I remember it being like the moment when we were like, oh, this is going to go mainstream. Right? Like, because up to that point, you had to learn iOS by doing basically Mac OS. That was like the one point there was the big nerd book you learned Mac OS, and then the SDKs came and you like tried to learn quickly, like what worked and what didn't.But, if you were like me who came from no Mac programming, there was really no iPhone entry into it. I remember when the Stanford course came out. It was like one year too late for me. Because like at that point I had already done a lot of stuff, but it was still really great.I still watched the whole thing. I remember watching it. But it's interesting. We have the same path. I don't know if we ever talked about this, but I was studying physics in undergrad as well. Yeah, I didn't go to Stanford, but I went to a small state school instead, just cause, you know. But yeah, kind of similar story where like I was in, I wasn't in grad school, but I was physics, undergrad.Didn't really know what I wanted to do. I really loved physics and the math and all that stuff, but like, there's a stronger economic pull, let's put it that way, to work on apps. That was the same story for me. Like took a little bit of what I had learned, writing code for experiments and things like this, and then kind of started making apps.And then, yeah, the rest is history.00:06:06 Matthieu:Yeah. I think one of the introduction to physics is like how fast data applies to the real world from science to real world. And you don't find that in a, like a physics job where you kind of find that back in, like a software development where you like, can we solve a math problem, a computer science problem, and you can directly apply it to real00:06:25 Jacob:Yeah. Or like, even with business modeling and stuff too, you know, you think about how a business moves and like what number moves this number. And there's no physics there. You're not approximating a physical system, but some of the same principles apply. Right. You're like trying to find some laws that are underlying it and work from there.So yeah, I found it hasn't been terribly unrelevant, but, but yeah, that's interesting. What else, what else do we have in common? Let's keep going.00:06:48 Matthieu:Yeah, sure.00:06:49 David:Well, actually, I, I want to jump in. I want to get to PhotoRoom, so we're actually going to skip over. You've done a lot now. So after, after that you went to replay and replay was like onstage at a keynote. And you're the co founders that you were working with, you know, as, as you joked, before we started recording, spent a month in the basement and apple, as everyone does before a keynote.But then you ended up at GoPro working on imaging. so just tell me about that. Leaving GoPro. I mean, Great company done a lot of innovative stuff. but tell me about leaving to start a PhotoRoom and what the inspiration, I guess we've heard part of it, you know, 12 years of working on imaging and wanting to build a photo app.But yeah. Tell me about the founding of, of.00:07:36 Matthieu:Yeah, I, I, so GoPro is an amazing company, but it's more marketing and hardware. And, I really wanted to, I grew a bit frustrated about like how we could, do better software. Yeah, a few frustration from that I, as a product, I was product manager by them. So I was like frustrated with the design tool, like a Photoshop and, and, you kind of have to move to, and by that time you had to move to California to move the stuff.And I was based in there in Paris and I decided to stay there with the family and, and kind of, we had an amazing missionary team at GoPro in Paris, but it's really difficult to. To change the paradigm of a kind of a software, like a, if it works from a kind of more deterministic way. So I kind of realize that it's really tough to ship a new software with new paradigm, and we've mentioned our new insights.So I thought there was a big opportunity with the new, new hardware coming on, the iPhone formation, learning the new, the new, yeah, this new kind of way of thinking about software. And, I left the GoPro to start a company and we've just ideas in mind. And I also, at the time realized that there was a. A lot of apps, you know, like after 10 years on the app store, you kind of know the tricks of the app store. And I knew there were a lot of apps in the top of the photo apps that were around razor and background eraser. I realized like, okay, if they're just kind of a, you know, I say scam, but it's certainly scam, but all these apps that are built quickly, there must be some demand around it.And so that's, I started with the background remover idea. Like I saw that there was a mission learning team at GoPro that there was some background removal, paper and all that. Okay. There must be some demand. Let's ship something quickly and see how it goes. And that's kind of the nice thing of like 10 years of development, you know, the right tool to go fast and just shipped a prototype in two weeks.We've actually referring at, by then I have a blog post on like the 10 tools I use there and, And, yeah, it was, it went super fast, super fast to the store and we have some machine learning and, on-device machine learning by then. So it's as a, and it kind of caught up, like you tried a dozen ideas on some kind of stay on the wall on some, like, and just stay on the wall.00:09:43 Jacob:So at the time it was called BGE app background app. Right. was the focus initially, did you have like a big scope for it or was that your entry? You were like, Hey, I know that they there's these photo apps that kind of suck that are doing this background thing. I think we can do it better. And like, let's see where it goes from there.Or did you have like a bigger plans or longer term aspirations? 00:10:04 Matthieu:I think there was, an understanding that people kind of needed that and the tech tech was 10 X better as they say. So it was really interesting, but I didn't, I mean, we didn't have the full plan for that. It's really a few months in that we are understood with Elliot the kind of the market fit.And we understood also like this idea of, and we call it, we translate pixels into concept that makes it much easier to, to, to edit. So w for the room is the best for digital for entrepreneurs. And the idea is that instead of using mask and layers and pixels, you just like, the machine learning, understanding what are the.The big cells and they just tell you, okay. A cat. So we call it cat to catch up on the cat. And you should have actions that are relevant to a Catholic changing the fur color. if it's, if it's a piece of clothing, it should be the texture of the clothing. If it's a, if it's a kind of graphic change of color, you know, kind of, it makes it much more accessible than what exists in like 10 year, 20 years, software that exists by for the editing.00:11:03 Jacob:So, so yeah, I mean, I think that sounds like a very much a pitch and a story that somebody would be taught at Y Combinator. So I'm curious, like what I'm curious, like, how did that evolve? Like how so you, you, you, you guys launched the app in the, I remember I was talking in like the spring of 2019.00:11:20 Matthieu:Yeah. Like may 2019. Exactly. 00:11:22 Jacob:And then, you started YC in the fall or the winter?Yeah.00:11:25 Matthieu:No, we actually, so we started YC in the following summer. We were supposed to do the winter batch after that. So seven months. And, we, we couldn't because our visa issues, at some, with the family, I couldn't move to, to, to YC. Yeah. 00:11:42 Jacob:Can tell you there's one way to solve that problem.A global pandemic.00:11:49 Matthieu:Exactly. Yeah. That's exactly right. So we did it involve, I think we shipped super fast. We failure my co-founder who is like a, like a machine learning genius. and we follow early on the YC startup school, which is kind of the, first step to. And, and so what does it help you? It kind of, you measure the, yeah, the progress.So, how much customer you're talking to, Ahmed, how much money you made and how happy you are doing what you do. And so that's kind of how we iterated 00:12:24 Jacob:You were 00:12:25 Matthieu:Months. 00:12:26 Jacob:During, startup school or 00:12:28 Matthieu:Yeah, the school kind of asks you every, every week, discussion and you make sure you make progress on that. I think these are the right question to make progress on your business.And here's, what's kind of, kind of natural, like two months later. So we started in may, may, June on that, application for YC where I probably in September, like, so, so we did like all summer, we did the startup school scheme and then framework and made some progress on that. And we got the YC application in September and the interviews actually in Paris, In, I think November.00:12:57 Jacob:And then, ha had you, I guess like, your, your aspirations or your reasons for applying, I guess, are in some ways, self evident to somebody. You know, obviously you don't need to convince me, but for the listeners, I, what was your, yeah. What were your motivations? Like? Why did you, well, I guess for one there's, you know, I don't know.I always hear there's a couple of reasons, right? Like sometimes it's prestige, like people want to the prestige of YC, sometimes it's, it's the help, which I honestly think is the, the, the best reason. Cause I, you know, it's, it was honestly really good for us, but then there's also like, you know, it's, it's a great way to springboard venture back.Thing, right as well. So like, did you have like strong reasons? Was it all of the above or what was the motivation for, for getting on the venture? 00:13:44 Matthieu:Yeah, that's a good question. so I think number one reason was, ambition. I think like a lot of your brain startups, you Batara, can be not ambitious enough. And I think if you're ambitious, like YC is really a way of, the alpha taking the ambitious path. Okay. Then how to make it like a business and a product that has a strong impact, like on a very large number of people.So that was, that would be my number one. I think then it's kind of the learning. we are at the beginning of the company, we sit for failure, then what's what kind of is the most important, you know, for their culture. And we talked about it also. And, one thing we really value is learning fast and I think YC kind of helps you, you probably a lot of like, you learn so much faster because you're at the right contact.So it's, I mean, it's. It's on the partners. Like every time we have a office hour, almost every time, like, wow. Blown away, there is like also Atlas. I get the right investors, I mean on the revenue, on the like mobile subscription and like, yeah, like you like auger from Blinkist, like, someone from, John from Spotify.So that's really helpful and also extra connection like we have in AI, we have the VP of AI and locale Facebook, and I don't think we could reach this network with, with. 00:15:01 Jacob:Yeah, the network thing is depends on, you know, what your background is. Obviously you had been in the peninsula, but still it's hard to be really deeply networked and still it's hard to. Invest in your engineering skills. Right. And like your IC skills and invest in a network at the same time, which was kind of my world.Like I had an okay network, but like, it wasn't super well networked. So YC was like a big like boost to that. Right. You could get interest to people. You could get a little bit, it's still, a who, you know, game Silicon valley is still in a lot of ways or the broader concept. 00:15:33 David:Before we move on. I wanted to talk to us a little bit more about the, about the ambition of PhotoRoom, because, and this is something I think is, would be really relevant to a lot of our listeners who are, are building apps in the space. And, and I, as an indie developer for 12, 13 years, feel like I've, I've, I've worked too much with, with blinders on.Not thinking about the bigger opportunity. So like the first app I launched was trip cubby. It was a model it's log tracking app, to get reimbursements from taxes or get reimbursed from your company, for your mileage. And I just, I treated it like a little tiny indie business, lifestyle, business, and everything else.Meanwhile, 00:16:19 Jacob:IQ00:16:20 David:IQ built a huge 00:16:23 Jacob:Probably launched about the same time. Right. I would think. 00:16:26 David:No, they launched much later actually, which is even again, it's like I had a multi-year lead as kind of the, how to do that 00:16:33 Jacob:Assuming the market was there. Like my, like you probably came when the market was finally there, 00:16:37 David:Starting to grow, but yeah. But what's so cool. Is that, I think there's so many opportunities in the app store that people overlook that seem really niche. Like you just started out replacing backgrounds in photos, 00:16:50 Jacob:And now you're going to be the next generation Photoshop. Is that a good one? Is that a good pitch? I don't know what the 00:16:54 Matthieu:Yeah. 00:16:57 David:What, what's the ambition that, where that took you from, okay.We can replace background images too. This is, could be a huge business because we're, un-bundling one of the like key parts of Photoshop, which is a massive business. So what, what, what is the, what was the ambition and what is the ambition that you feel that this, this can be such a big thing. 00:17:21 Jacob:How did you, how did you convince yourself of that? The ability to do that?00:17:25 Matthieu:Yeah. 00:17:25 David:Yeah.I mean, it's, it's amazing.00:17:27 Matthieu:I think it's, well first like working on photo, video editor, like I realized that, I mean, video is big. Like we got, I think we free-play then named quick by GoPro. We got to $100 million. It's kind of tell you like, and most people, they are still using like photo collage. So everyone's working on photo and video is too complex for most people.So like, if you get 100 million for a video, then it's probably like any good, like yeah. Project improvement like 10 X product improvement on photo must get like 1 billion users. And I think it's like, that's one of the YC model, but it was really starting from a pain point of myself, like creating the assets for actually for the app store.Like you have to create a PSD. And I was like, you spent so much time on non creative task. And I was like, I want to make that much simpler. And I think the big heart moment was kind of talking to the user. So, and also like talking, yeah. Talking to people like we kind of build in the open and people told us, it's like, yeah, Yeah, it's a, it's like a actually it's like programming, like a U instead of you're you're doing like, object oriented, editing, like you understand what kind of objects you have and you make actions that are relevant to that.And that's, that's kind of done myself, like really burning myself away. Like it's much simpler. Like you have an object and you, you offer it to the user. What's the logic for the subject lines, Photoshop. It's such a pain to learn. Like I think everyone would remember is kind of the blown away part of Photoshop, but also the pain it is to understate.00:18:51 Jacob:And it hasn't gotten easier in 20 years. Like the only way now you can paint on a sphere or something like, there's nothing like new, I still open it and it's comforting. Cause I learned in CS two or whatever, and it's all still the same, but like, I don't think it's necessarily, like, I think, I think there's even a broader near you.I'm going to make your, your $10 billion company, a trillion dollar company. But I think there's an even broader narrative there around just like the future of software and how machine learning. Further like narrows the gap between like in software, like programming, not in the traditional sense, but like telling a computer what to do and the computer telling, like asking us or like bringing us like the things it can do.And you see this in like varying degrees of it working well. Right. like Gmail, like suggesting like absolutely insane sounding replies that I would never say, like, that's kind of that, but, but I think that's all maybe a little bit too far, but I think what you guys are doing, it's really great. You know, like segmenting photos, like giving people those tools, like taking, especially for a tool like email it's like writing, like, I don't know.An AI assistant to like, say, thanks like I can, I got that. Thank you. But for, for, yeah, like, like cutting backgrounds out and like setting up. Yeah. Just building like, things that to a human, because we're so visual in the way we think seem really basic, right? Like I want the cat in front of a blue background, right?Like that. Just tell the computer and it can do that right now. The existing tooling is like very manual and very skills driven. And you guys are bridging that gap. So like yeah. Who knows something? I don't know. Maybe photos, aren't the end of it for you guys, maybe next you just start tackling the next software domain.Right? I, you know, I don't know that we'll get to 10000000001st and then we'll worry about the trillion dollar.00:20:28 David:And that's the really magical thing about your app and your onboarding that I wanted to ask you about. So exactly what Jake was saying. When I think of removing a background and I've worked in Photoshop literally since the nineties, late nineties, I'm old. but it's, I've tried that like a hundred different times.And even in the most modern Photoshop, I don't even know how to do it. I expect it to be. I downloaded PhotoRoom and in like three taps, your onboarding is magical because you don't get in the way of the person having a desire to get something done. And then seeing it happen. So in like three tops from opening the app, I see a background removed and it was just like00:21:16 Jacob:Okay. 00:21:16 David:Instant, like mindblowing experience. 00:21:19 Jacob:Yeah.00:21:20 David:This thing that like, I know it's so hard and I think of needing professional tools and needing to be a professional to even figure it out. It just happens magically after three or four taps in your app was that I assume that was very intentional. Did you have different onboardings before and kind of iterate to that point?Or what led you to just such a focused get the person to that?00:21:45 Matthieu:Yeah, that's a good grade. She was our interview. I think, we like, if we, especially in the beginning every week, we'd go to McDonald's and pay a meal to student or anyone. And they like the tagline for McDonald's and Frances com. Everyone can come in and come as you are. So we really met like tourists students professionals, and like doing user interview.We got so frustrated. I think that people didn't get to the step of removing background that kind of like00:22:12 Jacob:Oh, so you would give them an unlogged out like a brand new device and like, watch them go through onboard.00:22:17 Matthieu:We would like pay the meal initially for downloading the app. We'd like first ask you three, four questions about their photo usage on their, on their phone. kind of ask them to download the app and yeah. Blinded as yeah. And, and we were like came sneaking. We just were, we were just iOS at the beginning.So try to find people with iPhones and not Android, and that was stuff, but yeah, I mean, people usually stopped before and they don't understand something and like to build trust with them, we figured out like the best is to short tech. So I can we get to the point where. We actually have all these people, we try the app that actually see the bag, the magic effect of Futterman like, so like taking a white sheet of paper, we valued microphone and like thinking, how can we do that?And it got to like adding that as early as possible in the onboarding. I think that's, that's, that's fine.00:23:06 Jacob:I think, I remember now reading about the McDonald's testing and your, your, YC application and being like. That's the moment I knew these guys were going to make it, I guess like it's was brilliant, right? Like I, I don't know how much user testing, like real good user testing is. If you do it in some sort of like professional context, it's probably really weird and like expensive and like hard.And this is dead simple, super scrappy. Right? People don't do it because I don't know nerds. Don't like talking to people like we don't like, you know, it's, it's, it's tough to put your, your app in front of somebody and see them. Not, it's one thing to read like bad retention numbers on amplitude is another thing to like, see somebody actually churn and like, but honestly that's the best way to learn.Like this is the best way to like, get really actionable feedback. So, I'm sure that was, that was super beneficial.00:23:53 Matthieu:Yeah, it's a, it's a trick from Zenly. So the social network and maps, like that really is, one of the best, app in embarrass and they, and we apply that and yeah, it requires some. It's not easy, I must say. But, you really, you learn so much and the pain today is more like we have more qualified users.So it's really easy in the beginning when you're in your photo apps and people just as the app and everyone has photos. So it's easy to explain. Then you want to like talk to your kind of retain user. It's difficult to get them at the McDonald, but now we're friends with all the vintage shops around the block.So in Paris, so we get.00:24:28 Jacob:So that, yeah, that was I kind of my question I wanted to ask. I'll just slide it in now, but like I've noticed, I don't know. I don't know if you had this intention initially, but it seems like you've found a new. Even amongst these apps in something I would say commerce or even e-commerce it seems like a lot of people use these, use your app to take photos of objects, to use as like advertising or gone Shopify.Is that, is that true and statement or am I just like misreading investor updates?00:24:56 Matthieu:No, it's totally true. Actually, it's not. The interesting thing is it came from a personal lead, like using, as you say, Photoshop and wanted it much easier for me, but I wasn't clear who was using the CRA's background apps. I'm talking to like user at McDonald's. We realized like there was all these reselling apps, especially in the Europe and the U S where people.Yeah, they're just like selling Poshmark on vintage in Europe and they, there is no app that's focusing on their photo need. Like everyone's doing like selfies or I dunno, whatever lens on video you can make or, but, no one's in it helping them. And it actually came from the user interview like, oh, that some user told us like, oh, my girlfriend would love that she's selling on Depop.And, and we kind of like it after multiple user asking us in support. asking us, and in talking at the user interview of my goal, we realized that, oh, that's a niche that we should kind of focus on. So that's Allie Kim, 00:25:51 Jacob:Was that pre YC, like pretty early in the process.00:25:55 Matthieu:And it came in a few, just not in one day, but it, I think early, after being taken at twice a 00:26:02 Jacob:Okay. 00:26:03 Matthieu:Like early 20, 20,00:26:04 Jacob:So then my next question, I guess, is like, how do you decide then? So you have a car for strong product. You, you, you might have like varying. This is, I think this is very common for a lot of apps and companies is like, you have probably different levels of product market fit depending on the market.Right? So like maybe broadly across all users of iPhone, your product market fit may not be as strong. But then when you look at this one niche, like maybe it's really strong. And then I think some. End up in a situation where you have to kind of decide, like, do I want to go for this maybe less fit, broader market, or maybe a tighter market with a stronger fit that I'm starting out with.Did you have that internal conversation? And then did you make an active decision? Like we're going to focus on this and then yeah. And then what's the plan after that? Like, or is that the forever plan?00:26:48 Matthieu:I think we, the easy part is as a product guy, I'm really convinced that our usage is really deep. Like we're starting from a different Lego brick, like, okay, you don't need it mask or square pixels, you edit like objects. So, I mean, any app that kind of want to copy that Nike that's to stop doing what it does today.So it's kind of the thing that relates to the missionary understanding excelled in the beginning. So we were confident. Digging into this usage and this product paradigm and like product basic block is interesting. And then we decided to focus on the pro usage and, and it's difficult as a follower. You want to serve everyone at the beginning, we were even doing a video plus photo, like in December of 2019, we dropped the video, just for animation.And then we dropped kind off the casual use case to focus on the pro and, and it's, it's been helpful. You're not like giving up on the other users. You, I mean, some of the features, they're still going to use it, the other, the casual, the people doing memes from, from the app, but she just like when you build features, you think about them.And I, around that, I think YC is helpful because. like if you reach local maximum from one vertical, like product market fit, then you investing so much on the take. It gets better than the, all the local maximums or, or adjustment. Like you can reach them after, and it's not a big deal and kind of believe and believing and trusting that helps you on, on like a, okay, we're going to focus on this one for, let's say three months and we say,00:28:14 Jacob:Yeah. I mean, I think that's a really good point in that I think can trip up people early in the process is that you think. That making an active choice to close yourself off to part of the market as a mistake. Cause you're like, well, I want to serve everybody or, well, I want to, you know, I want to have the most broad appeal I can cause it does, it feels wrong, right.To not serve a use case. but often tactically it's a bad choice because yeah, in the early days, anything. Hey find any users that love your product, even if it's a small group, there's, it's a, it's a closer step to like, get your foot onto that than it is to try to get sustainability on like mediocre product market fit across the broad market.Because then also it makes, yeah, it makes your McDonald's discussions easier. Well, maybe you don't have McDonald's discussions anymore. It makes your product discussions easier. Cause you can say like, okay, these are pilot. We're not going to do all this stuff. We're going to focus on this stuff, which gives you more of a loss city.I just really feel there's so much to getting that velocity early. Right. Like getting something that's like moving and growing and getting fast. And I think that's one of the things, I mean, I don't know, I won't, I won't docks you guys on retention numbers and stuff, but you know, when you have a, I'll just say that when you have a pro user base, that's using it for something non casual retention gets easier, right.Like have a reason to come back. And so if you, I mean, there's not that many apps like that. That on it's hard, it's hard, it's hard. It's rare to find mobile apps that have that opportunity. Right. So when it's there, you need to take it00:29:45 Matthieu:Yeah. 00:29:46 David:How do you think about pricing for that value creation? Since, since those that kind of pro segment really probably gets a lot more value than you're even currently charging. because they're actually making money with your product. Like how did you think through your print pricing? And did you iterate to this point from a more kind of consumer pricing to them to a, I mean, to me it feels like you're in the middle still of somewhat consumer-friendly and really honestly, probably cheap for a professional use case.So how did you land on your current price?00:30:24 Matthieu:Yeah, to be honest, it's like most of the photo apps. I mean, when we started and maybe it's different, they are all pricing like 10 bucks a month and that's kind of given by, I guess, Spotify Netflix, like it's kind of the, the glass ceiling of the price of subscription, even for prosumer. And, and we kind of iterated on the under yearly from 40 bucks to 69 bucks, in, in the U.So we didn't like, we kind of landed on that quite early. you don't want to alienate the user, especially if you put the up-selling in the onboarding, like, to be too expensive. I think we have a major opportunity though, to like address the more advanced business and the more than one person in a shop, it's just, it's really difficult to build this a B2B case in in-app like, you don't have that many apps that use that in the up-sell of the phone.So you probably have to show it like. The the first price, to every user and on the pro you probably can to brigade them after, I think it's something we can do later, like focusing on the product for now and make it simple as much as you're like, if you start with two prices, like the support, basically it is going to go crazy.We still do the support of the users. That's something we try to maximize for simplicity here.00:31:37 Jacob:I mean, it's a good point to make, especially too. It depends on, depends on your cashflow constraints as well. Just like how much, how extractive you want to be, how much you want to push it. Right. because you know, when you have good retention, like there's an argument, an argument to be made to not mess that up by because you're raising your price will hurt your attention, right?Like it's kind of at least on paid, right? Like more expensive. It is. People are going to churn more. and if you're compounding your total, like paying subscribers, that might be more important and then extracting an extra, an incremental $2 or $10 or whatever from each user, right. It might be better off just to keep them happy and longterm.And that's what makes it, I don't know, pricing just so complicated. It's about finding that equilibrium to maximize like the longterm area under the curve and not just, not just like the individual LTVs.00:32:27 Matthieu:Yeah, exactly. I think there was one. yeah, we, you want to talk to, like, you don't want to. Expensive at the beginning, you should have too expensive. Like one of the really source of feedback was also our support. And like, if you're too expensive, you get less pro. And the goal, I mean, the reason we launched after two weeks with was like the feedback from process so much more valuable than the feedback from, for users.I mean, you still want people to pay, like, just stop at 500 bucks in long month is going to be like, there's no way people are going to pay for that. So, and I was actually talking on Twitter that like, we actually put forth first a monthly plan because we wanted people to churn and be able to talk to them.So there was really a focus on learning from the 00:33:07 Jacob:Interesting. 00:33:08 Matthieu:Early days.00:33:09 Jacob:Yeah, I've always. Yeah. The, the short, I think, long, the annual subscriptions obviously have a bunch of benefits to, to, to app developers, but you do end up flying blind for a very long time. Right. Until you really know what those numbers look like. So if you're on monthly, purely, it does kind of simplify things early on.Which is another case to be made for just not over thinking your pricing, like initially, right? Like you guys launched just with the monthly and it was fine that you added, I don't know when you added an annual product, but you brought it in when the time. 00:33:40 Matthieu:I think the logical, so learning from GoPro and replay days is the pricing is quite elastic. So you double your price, you divide by two, the number of pros like minus plus 10%. And so, so it doesn't, I mean, it's, I mean, when you get bigger, it's way of doing experiments on pricing, but in the early days it's worth, it's not worth like taking too much time on that.00:34:01 Jacob:Yeah. I mean, it's good to know if you have an elastic curve, it means you're pretty close to, to the optimum already, right?00:34:06 David:Did you start from day one at that $10 a month price point?00:34:10 Matthieu:I think we were at eight or nine. it's pretty much like every pro for the pro apps. Like not selfies was at that on the photo and it's, and I think. The co, I mean, it goes from Spotify on Netflix. Like, everyone's like a, it's like if comparing industry report, they tell you a comparing you to Spotify on that fixed anyway.So it's a, I think it's a good, like a way to start on as they increase the price, they increase kind of the time of all the possible ATV of all the apps, which is really good. Thank you.00:34:40 Jacob:If they don't take care of it, inflation will don't worry. 00:34:43 David:But, but that's just amazing two weeks, to an MVP that you could charge $8 a month for, and people actually paid it.00:34:50 Jacob:Well, 12, 12 years in two weeks, David, if00:34:52 David:Well, right, right, right. No, no, that's a great point. But the point being that there, there are still opportunities that when you have experience and domain knowledge, that it's not the, the programming, it's not the, it's not such a monumental task to build something that's really valuable to people in this space on mobile, that you can build something good quickly with that experience.00:35:17 Matthieu:The first app was really crappy though. Like I think we 00:35:20 David:Yeah. 00:35:21 Matthieu:A few weeks before having our pay first paid users.00:35:23 David:Gotcha. I did want to talk a little bit about your marketing, so, What did you do at launch? Did, did you get a little pressed? Did you, you know, talk to apple, how did you get that initial code?00:35:35 Matthieu:So yeah, we were super, I mean, apple has been super supportive to us. I think. Before GoPro, GoPro acquired replay. so we play was, app of the year, senior as, elevate. So 00:35:46 Jacob:You guys at the year in France, is that what the00:35:48 Matthieu:No, so so I have a card, I brought the screenshot that, 00:35:52 Jacob:The U S 00:35:53 Matthieu:So we didn't, yeah, we didn't, get the U S we didn't get the U S and north America, and it's kind of a private, taser, but it's, we got like most of the Europe and Asia. And, yeah, and then I was seeing like the star that elevate their they're thinking the other U S and we should get that. 00:36:14 Jacob:It was good for you that we hadn't localized maybe 00:36:18 Matthieu:Yeah, 00:36:19 Jacob:That was the thing we were like only English at the time.00:36:22 Matthieu:Well, elevate is such a difficult business to localize. So I think it's a photo video is easy to localize it. Yeah.And, and so we got like, we got the keynote, so, and we kind of, I mean, the app is really good at marketing. using the latest technology of, apple in, like the metal and using the lasers, the GPU, I kind of build a relationship from there, with the apple team and also like learning AR that's kind of the narrative of apple, like to showcase apps.Leveraging the latest technology. They do their marketing through developers and that's awesome for us. Like it's super opportunity. And so what was that? When we started, it was well, we're using a Carmel to do the background removal and we did use like really early on in September of 2019, we use our KPIs to remove the background, to do some live preview of the photo.And so we got into, there is an accelerator inference in the biggest, like sexual life is one of the biggest things. Accenture and apple has a program there and we got in there and they helped us and like marketing and, and business, during the summer. And we had some tech workshop and in September we got Macy's, marketing from the using Eric.He, three, I think, API APIs. So I think all the days was marketing through, using the latest tech software and hardware from.00:37:42 David:And where did it go from there? Yeah. So after, after you've, you've gotten some traction in some of those early customers. did you jump into paid user acquisition 00:37:52 Matthieu:No. 00:37:54 David:Of, of, paid to, organic growth?00:37:58 Matthieu:Yeah. So we got into, we didn't do paid until like, we really got traction and market fit. So early 20, 20, and we started to have some, we got Gary V tweeting about us, like a video, farmer. So that was like a viral video demoing the app. And we kind of, I mean, the thinking was if some videos of demoing for term or viral, it probably works so-so as ad.So we kind of use these viral videos and try ads on that. Started ramping up, I think before YC, Facebook ads. So in April of last year and, it kind of, yeah, it was a good, channel of acquisition for us. And we always had in mind, like, we don't want to spend too much, we wanted to have it under control, but the payback was really good.So we kind of, added mix like, I don't know, it was three 17, maybe at that point in between the, between paid 30% beta and the 70%. And, yeah, organic and so that we ramped that up and I think it wasn't a good time to all this marketing and we kind of fast in that, at that point, because there was a COVID, the beginning of the COVID and all marketing was going down.So it was super cheap to try stuff there. 00:39:09 David:Yeah. 00:39:09 Matthieu:So I tried to be a part of these tick on that an influencer. I like a lot of times. So like all of that, we were at the right time and at the right moment for that day,00:39:17 Jacob:So how much, like are you balancing? I mean, obviously there's always so much you're balancing as a founder. but you know, how much are you thinking about investing back in the app and like broadening your appeal, making it better new markets, like new platforms versus. The scale of approach, like how can we scale marketing and, and continue to grow?Or is it like 50, 50? Like, do you have a top priority right now? Or, or how has the, like, how has your, your mind thinking about like your biggest growth levers?00:39:48 Matthieu:Yeah, we try to try to have a higher, level kind of privacy laws. So let's focus on retention or let's focus on this specific kind of users. So, in the U S for just three months, and we tried to align product and growth, on like a three months of that. And so that's kind of. that's yeah, that's how we think about it with Elliot and, and try to have it on growth and on product and kind of put us to talk more to these kinds of users, so to improve on, on these kind of shoes or just, just niche for instance.And, I don't know if people are selling on this marketplace for a month and then we'll see maybe another nation, another country, but still improve the experience for everyone.00:40:29 Jacob:And are you thinking about marketing in terms of like specific people selling on specifics, like marketplaces, like the you're actually going like channel by channel that, that, that, that closely. And does that inform like features or does that inform creative or how does that feed back into your part?00:40:44 Matthieu:Yeah, we're good. We're getting into that. Like we tried to understand bearer by a persona use case. What's the LTV and what's the retention is, and I think we are at the scale where we start to do that, but before it was like a general, a general creative for everyone and kind of demo the value of the app.And we were super lucky that our creative we're working for them. And I think like now, like the way marketing works, it's, like a. Facebook or Google are doing most of the optimization and you're more into like, what can I add up my creative so that it fit the focus I want to do for it. I don't know if the U S so I'll be a make sure you're in English.I'll make sure if you're like looking at multiple countries, try not to be too localize. I think there is a Netflix called neutralize, or they have a specific wording on making the, the artwork or the creative, not to localized, not to English, for instance. Okay. So you just content that's good. So it's kind of, that dictate kind of what we try to do with growth and marketing.00:41:39 David:That's great. Well, I have a million more questions, but we do need to, to wrap up. We're going to put links into the show notes to find you on Twitter and LinkedIn and, and PhotoRoom is such a great name, easy to Google, easy to find on the App Store. but you're also hiring, what, what positions do you have open?00:42:02 Matthieu:We're hiring a lot. We're hiring on growth and paid acquisition, hiring project designer, iOS developer, Android developer. And the way we think about the team is really to have a, like, we are 10 people, and we have a strong impact to millions of users. So, really leveraged like a small team, high impact.I think it's possible because of apps. So, we're looking for really senior people for that, and mostly in Europe. So we have like a, two, three days a month, in the Paris HQ, but, you can work from anywhere in Europe.00:42:35 Jacob:Yeah. And I'll, I'll second that. I think working on this product would be really interesting. Purely based on my insider knowledge as an investor and your friend, but for real, I mean, a lot of apps don't, you know, get to the point you have. You've got a lot of tailwinds and I think actually, the upsides are go far beyond the App Store.The future is very, very, very big. And you guys are ambitious. So take these jobs. Thank you.00:43:02 David:Yeah. 00:43:03 Matthieu:Yeah. We were thinking be everywhere. We stopped for a while, but we were like mobile first, not mobile only. And we have the web app web tool that we launched last week. We have an API for any developer that wants to remove the background. We have photo and attribution, and have the module folks using it.So it's really, I think we want to be close to the entrepreneurs, and we want to communicate through pro images that sell. And so sometimes it's not an app, it's just a photo and button. And so you can use the API for that. So, yeah. 00:43:33 Jacob:It's pretty great when you have a good product market fit, it just gets really fun. 00:43:37 Matthieu:Yeah. And we have that kind of, now that we have money, we kind of, we have like super smart people on the machinery team. So, we have the best thing on the market to do that. And that's super exciting. Now we're shipping new machinery next, I think next week. And it's going to be awesome. I can't wait to see the result on the analytics.00:43:52 David:That's amazing and 10 people. I thought you were bigger. I guess you want to be, you want to be, 15 or 20 with all the postings you have. 00:44:01 Jacob:That's why I'm really bullish on this market, David.00:44:04 Matthieu:Yeah. 00:44:04 David:Yeah, 00:44:05 Jacob:A small team can do a lot of stuff in this space. It's crazy.00:44:07 Matthieu:Yeah, It's00:44:08 David:It is crazy. Well, thank you so much for being on the podcast. It was great chatting, and thanks for sharing your insights, Matt. 00:44:13 Jacob:Yeah. We'll have to catch up again in two years to see how, see how it's going. 00:44:17 Matthieu:Yeah, of course. With pleasure. Thank you guys.
Learn why you just can't do everything on your own especially in your business Find out more about the value of emotions and relationships with customers as a business Discover how the price isn't as important anymore once you've developed a great and understanding customer service system Resources/Links: Wanting to Learn More on How to Improve and Grow Your Business Through the Magic of Customer Service? Find out the Why's, the How's, and the What's of Customer Service: ultimateCXexperience.info/freeyellowbook Summary Have you been putting aside your customer service systems and prioritizing other parts of your business instead? Are you constantly struggling with making valuable and deep connections and relationships with your clients? Do you want to know more about why doing everything on your own isn't the best and right way on growing your business? Dr. David Moffet and Jayne Bandy are respected speakers and writers on customer service systems and processes. They coach private SME clients on how to improve their businesses by focusing on customer retention and providing World Class customer service. In this episode, David Moffet shares his insights on why customer service systems are very crucial in business and in increasing profit. He also talks about how asking for help and guidance is one of the stepping stones to becoming successful and growing your business. Check out these episode highlights: 01:28 - David's ideal client: “My ideal client is any small business ranging, in turnover, from 3 million to 50 million with between 5 and 50 or 60 employees, and they want to grow their business.” 02:00 - Problem David helps solve: “Well, the problem I solve is that these businesses want to increase their revenue. They want to increase their top line. They want to increase their bottom line.” 02:50 - Typical symptoms that clients do before reaching out to David: “Well, I think the easiest way to identify that you've got a problem is that your sales are either dropping, or they're stagnating. Every business should grow year after year after year. That's a given if you want to survive or just keep up with inflation.” 04:01 - Common mistakes that people make before they find David's solutions: “I think I see plenty of mistakes all the time. But I think one of the most common mistakes I see is business owners trying to do everything on their own. And that's just an error that just compounds upon itself.” 05:18 - David's Valuable Free Action (VFA): “Well, I think they need to reflect. Yeah, sometimes people are just too busy chopping wood to stop and sharpen the saw. You know, they need to reflect and stop micromanaging, as I said, you know and start delegating.” 06:13 - David's Valuable Free Resource (VFR): Get a FREE PDF Copy of David's Best-Selling Book: ultimateCXexperience.info/freeyellowbook 07:13 - Q: You're a dentist. How can you help my business? A: Customer service is in my blood. It's always been in my blood. Tweetable Takeaways from this Episode: “If you've got a great business, price becomes irrelevant. They won't care what your competitors charge because they get such great value and great relationships from dealing with you.” -David MoffetClick To Tweet Transcript (Note, this was transcribed using a transcription software and may not reflect the exact words used in the podcast) Tom Poland 00:09 Welcome, everyone,
Learn why you just can't do everything on your own especially in your business Find out more about the value of emotions and relationships with customers as a business Discover how the price isn't as important anymore once you've developed a great and understanding customer service system Resources/Links: Wanting to Learn More on How to Improve and Grow Your Business Through the Magic of Customer Service? Find out the Why's, the How's, and the What's of Customer Service: ultimateCXexperience.info/freeyellowbook Summary Have you been putting aside your customer service systems and prioritizing other parts of your business instead? Are you constantly struggling with making valuable and deep connections and relationships with your clients? Do you want to know more about why doing everything on your own isn't the best and right way on growing your business? Dr. David Moffet and Jayne Bandy are respected speakers and writers on customer service systems and processes. They coach private SME clients on how to improve their businesses by focusing on customer retention and providing World Class customer service. In this episode, David Moffet shares his insights on why customer service systems are very crucial in business and in increasing profit. He also talks about how asking for help and guidance is one of the stepping stones to becoming successful and growing your business. Check out these episode highlights: 01:28 - David's ideal client: “My ideal client is any small business ranging, in turnover, from 3 million to 50 million with between 5 and 50 or 60 employees, and they want to grow their business.” 02:00 - Problem David helps solve: “Well, the problem I solve is that these businesses want to increase their revenue. They want to increase their top line. They want to increase their bottom line.” 02:50 - Typical symptoms that clients do before reaching out to David: “Well, I think the easiest way to identify that you've got a problem is that your sales are either dropping, or they're stagnating. Every business should grow year after year after year. That's a given if you want to survive or just keep up with inflation.” 04:01 - Common mistakes that people make before they find David's solutions: “I think I see plenty of mistakes all the time. But I think one of the most common mistakes I see is business owners trying to do everything on their own. And that's just an error that just compounds upon itself.” 05:18 - David's Valuable Free Action (VFA): “Well, I think they need to reflect. Yeah, sometimes people are just too busy chopping wood to stop and sharpen the saw. You know, they need to reflect and stop micromanaging, as I said, you know and start delegating.” 06:13 - David's Valuable Free Resource (VFR): Get a FREE PDF Copy of David's Best-Selling Book: ultimateCXexperience.info/freeyellowbook 07:13 - Q: You're a dentist. How can you help my business? A: Customer service is in my blood. It's always been in my blood. Tweetable Takeaways from this Episode: “If you've got a great business, price becomes irrelevant. They won't care what your competitors charge because they get such great value and great relationships from dealing with you.” -David MoffetClick To Tweet Transcript (Note, this was transcribed using a transcription software and may not reflect the exact words used in the podcast) Tom Poland 00:09 Welcome, everyone, to another edition of Marketing the Invisible. My name is Tom Poland beaming out to you from little Castaways Beach here in Queensland, Australia, joined today by another Australian, David Moffett. Good day, sir. A very warm welcome. Where are you- where are you based? David Moffet 00:22 Hey, Tom! Thanks for having me. I'm based in Burrawang, New South Wales,
Recently Kevin DeYoung in a blog article called ‘The World is Catechizing Us Whether we Realize It or Not,' commenting on his recent experience of watching the Olympics he writes, ‘You couldn't watch two weeks of the Olympics—or at times, even two minutes—without being catechized in the inviolable truths of the sexual revolution. Earlier in the summer, I watched parts of the Euro, and you would have thought the whole event was a commercial for rainbow flags.' His point is right, we are being catechized whether we like it or know it or not. He issues this pertinent warning: ‘It is worth remembering David Well's famous definition: Worldliness is whatever makes righteousness look strange, and sin look normal. Here's the reality facing every Christian in the West: the money, power, and prestige of the mainstream media, big time sports, big business, big tech, and almost all the institutions of education and entertainment are invested in making sin look normal. Make no mistake: no matter how good your church, no matter how strong your family, no matter how gospel-centred your Christian school or home-school, if your children and grandchildren are even remotely engaged with contemporary culture (and they are), they are being taught by a thousand memes and messages every week to pay homage to the rainbow flag. The Christian family, Christian church, and Christian school must not assume that the next generations will accept the conclusions that seem so obvious to older generations. We must talk about the things our kids are already talking about among themselves. We must disciple. We must be countercultural. We must prepare them to love and teach them what biblical love really means. We must pass on the right beliefs and the right reasons for those beliefs. We must prepare our children—and be prepared ourselves—that... Read More Source
Dads are constantly flooded with messages to be helpful and supportive to their birthing partner, but where are those specific tips on how to do just that?Cue David Arrell. David has developed a passion for everything surrounding birth with his main focus centered around helping dads learn the things he wished he knew when he became a dad for the first time. According to his own words, “I am just a dude who has been through this journey.”With his very specific dad tips as well as big ideas, David's advice will take your birth support partner from feeling clueless, guilty, and overwhelmed to feeling hopeful, empowered, and inspired. When both partners learn to be a strong team during pregnancy, their bond during labor and throughout parenting will thrive even more.And the tip that gets 100% of his recommendation? “Dude, Hire a Doula.”Additional linksThe VBAC Link on Apple PodcastsDavid's website: Welcome to FatherhoodWelcome to Fatherhood: The Modern Man's Guide to Pregnancy, Childbirth, and FatherhoodFull transcriptNote: All transcripts are edited to correct grammar, false starts, and filler words. Meagan: Happy, happy Wednesday everybody. This is Meagan and Julie. You are listening to The VBAC Link. You are going to be excited just like we are for this episode today, so make sure you are somewhere where you can hear all the words, and honestly, you probably want your birth partners to list them as well. We have David Arrell. He is an author, entrepreneur, consultant, and men's coach currently in Colorado. We have actually had quite a few special guests in Colorado which is really fun. He is passionate about coaching men on how to more fully embrace and embody help, masculinity, and especially through the powerful modalities of partnership. His most recent work-- now I can't speak.Julie: Sorry.Meagan: You're fine. --in this area is a book and we have the book. We are so excited. It's called Welcome to Fatherhood and I really like it because it is like “WTF”.Julie: WTF.Meagan: Through the whole thing, it's the modern man's guide to pregnancy, childbirth, and fatherhood better known as WTF. So this is really a big deal because in so many ways, and I even talk about this with my doula clients. There are so many things in pregnancy that are so woman-focused or birther-focused, right? We kind of forget sometimes about dad and his role. That's, as the doula, so important for me not to forget that and make sure that dad doesn't feel that because I remember the day in my second labor. I remember my husband had to sleep on the couch in the corner and everyone coming in not addressing him, not talking to him, not saying anything that's happening, not asking him has an opinion on anything, and it only revolves around me, and so I just think this is so awesome. A lot of dads enter childbirth clueless not because they don't want to know, but because people don't include them, right?And then fatherhood. I also know that as a mom and my husband, we've had times where I'm like, “No. I am doing it right and he is doing it wrong.” I remember someone saying, “You are both doing it right. You are doing it your way,” and I loved that. So I am really excited to talk to him today and get to know more about his book, and the role, and the fourth trimester coming back home, and how to give these tips to these dads because they need them.Julie: I was just going to jump in and say, “I love this,” because David, our guest today, literally wrote the book for dads about the fourth trimester, what to do when you get home with baby, well, I mean, it is for pregnancy, and childbirth, and fourth trimester, right? So that's the first three months after the baby is born. It's from a dad‘s perspective. He gets it. He has been there. That's what me and Meagan really like about it because, at The VBAC Link, we are doulas, but we have also had VBACs. We have been there. We get you. I feel like he is right on our level, but talking to the dads because yes, like Meagan said, dads, a lot of time, get forgotten. I wish my husband would've had something like this back when we started into parenting because he was completely oblivious about pregnancy, and birth, and everything. I dragged him to a HypnoBirthing class but that's about it, and now he knows way more about birth than he ever thought he would ever have dreamed to know about, but this is going to be really helpful. So we are excited. We have asked our social media followers questions. We have some questions for him. Review of the WeekJulie: But anyway, before I keep talking, holy cow. Let me read a Review of the Week.This is from Natalie in San Diego. It is on Apple Podcasts and she says, “I am SO thankful I found this podcast. I've always wanted a vaginal birth and felt like I could never get one after my C-section in 2018. I started listening to this podcast when I got pregnant (currently 28 weeks) and then I asked my provider if I was a good candidate and she said, ‘No.'”Dang it. Oh my gosh. Sorry. That kind of caught me off guard. That was probably a little bit of an inappropriate laugh. That's what I do when I get caught off guard. I laugh inappropriately. All right, let's see.“She said, ‘No,' so I resigned to the fact that I would need a RCS with this pregnancy and stopped listening for about a month but the nagging feeling that I could ask more questions and advocate for myself more just never went away. I started listening again and realized that so many women switch providers late in the game so why couldn't I? After requesting my post-op report and asking my OB more questions, I realized that I am a good candidate and that she just wasn't supportive, so at 26 weeks I switched to an amazingly supportive provider here in San Diego, hired a doula, and signed up for HypnoBirthing!” Hey, speaking of HypnoBirthing…“I'm doing everything I can to educate myself and am so hopeful for a VBAC this April or early May.”Oh my gosh, maybe like right now.“I wouldn't have had the courage to do any of this without the stories from the women on this podcast so thank you!!!”Do you like my commentary? I don't think I can read a review without jumping in and putting my own thoughts into the review. Anyway, talk about being long-winded. Okay so, thank you for the review. We love reviews. You already know that if you haven't had a chance yet, please go leave us a review on Apple Podcasts or Google or Facebook. Wherever you leave us a review, it will help us reach other people, so if you enjoy the podcast and think everybody should have a listen, definitely go ahead and give us a review in whichever is in the easiest place for you to do so.Q&A with David ArrellMeagan: Okay, David. We are excited to dive in with you. We have questions and all these things that we want to ask you, but I would love to invite you to share a little bit more about your book because I know I just went right through it. But tell us more. What inspired you to do this?David: Sure. Thanks for having me on, ladies. I really appreciate it. I think part of my inspiration was the gap that I experienced as a guy who has really committed to trying to be that “helpful and supportive partner” and I thought I was doing all the things. As our first pregnancy, and then ultimately the labor and delivery, and then that first experience for us of that fourth trimester, I have looked back and I realized there are so many opportunities where I wish I had done some things a little bit differently, but I realized I didn't get the information, or the education or the encouragement that I felt would have helped me be that much more helpful and supportive for my wife during her pregnancy, and childbirth, and coming back home. So I looked around and even the birth classes I took, the amazing doula we worked with, which I will circle back to later, and some of the books I read, there just wasn't that sort of succinct, clear sort of discussion of some of the things that are really important for us guys to really get a better sense of. And also, just some specific things like, “Hey, guys. Really think about doing this,” or “If you did this one thing a little bit differently, you might have more success.” So that was my main inspiration. It was to pave the path a little easier for the guys coming after me who are going to be going through their own sort of pregnancy adventure.Meagan: Love it. Love it. You know, I have a client, a husband, who started a podcast. Kind of the same thing. He was just like, “After the first birth experience, I just realized there was so much more that dads needed to know,” so I love what you guys are doing. This is going to be awesome. So are you ready for the list of questions? Julie, I don't know if you want to go back and forth, but we have a list of questions that some of our followers have asked. Julie: Yeah.Meagan: if you don't mind, I would love to jump into those.Julie: Let's do it.David: Sure. Let's jump right in.Meagan: Perfect. Okay, so number one is: Best advice for husbands to support wife in labor? I know you talk about pregnancy a lot in your book too. You talk about all of it, all the trimesters, but we are going to jump right into labor. Best advice for husbands to support their wives in labor?David: Sure. The way I describe that journey though, going into labor, is if the pregnancy is a rollercoaster going up the hill, slowly working its way to the top, once you realize, “Oh wow. We are really in labor,” that's when that rollercoaster crests the hill and goes zooming down the other side. It's a very different sort of immediacy for all parties concerned.The main thing I tell the guys out there is Big Idea #10 in the book. The book has Big Ideas and Dad Tips. But Big Idea #10 is that your new mantra is to be attentive, be calm, and be competent. At the end of the day, regardless of all the other things going on, if you as the dad, the partner, perhaps the most important support partner in the room here, if you can maintain that mantra and really be attentive to mama and all of the things that are happening for her whether it's holding a hand, or rubbing a brow, or adjusting a position for more comfort, or be calm.There are definitely times I know in my wife's childbirth and some of the guys I talk to also where things get a little active, but still, for us guys, we have to be calm. We have to be that rock in the storm of the emotions and feelings for our partners to connect to. And then being competent. This comes down to feeling like you have done the work ahead of time with the education and the practice where you feel pretty good about what your role is, what it's not, and how to really show up as that competent person throughout this process. So that's the mantra. Be attentive, be calm, and be competent.Meagan: Yes. I love that. You know, something that happened in one of my labors-- I have had three babies and my third baby, my labor was 40--Julie: Are you going to tell the story about the pillow? You should tell the pillow story.Meagan: Oh no, but I should. 42-hour long laborDavid: Wow.Meagan: My husband had a not-so-supportive moment where I was doing my thing in my zone. Sometimes we moan. That's what we do. Our uterus is the strongest muscle in our body and it's contracting around a baby really hard. It doesn't feel awesome so you have to work through it, right? He totally shoved a pillow in my face and told me to muffle myself because he and the other kids were trying to sleep.Julie: I think that Rick needs a copy of your book.Meagan: I know. But there was a moment in my labor and I had been laboring for a really, really really, long time, and what had happened that I just still to this day will remember the feeling that came over me. All he did was touch my back and lean into me, kind of just grazed around my head and my shoulders, and it was a complete moment of, “I am not alone in this,” even though I knew I wasn't alone. I had a great team. Just that touch was exactly what I needed and like you said, it could be a touch of a brow, or an adjustment, or just being there. It was just amazing. So I would not disagree at all with that.David: I'm glad he bounced back. That's good. That's good.Meagan: Yeah. Yeah. Between that and then when he looked at me and was like, “Remember, this is what you wanted.” I was like, “This is not what you say to me right now.”David: Well, that's the trick. So many of us guys get these-- the general vibe is we are told to be helpful and supportive.Meagan: But you don't know how.David: But we are not given explicit instruction beyond that and so we guess, and then we guess wrong, and we get frustrated, and so that's exactly it. It's the different challenges that we go through and the learning curves that can be really steep sometimes.Meagan: Absolutely.Julie: Yeah. I get that. Do you know what's so funny? While you were just talking, we are actually going to make the link to where you can go and buy David's book Welcome to Fatherhood and the link, I just had to say this because it is so funny. The link is going to be thevbaclink.com/wtf. So we will make it super easy for you to go and find his book.Meagan: I love it.David: Exactly. That sentiment is very popular.Julie: I mean, yes. You started at Tip #10, right? So I am just like, “Yeah. It's really good stuff.” I haven't read all of it, but I have skimmed through it and I have had my husband skim as well and there is some really good stuff here. So we are going to put it in the show notes. This is normally what we would do at the end of the episode, but I just had to say it. I am making the link right now. So anyway. Great stuff.I remember my husband felt helpless too. For my Cesarean birth, he still says it was the scariest moment in his life. Watching me on the operating room table, not knowing if I was okay, not knowing if baby was okay and I'm sure he would have really appreciated this type of advice to help him because men instinctively have this nature to support their partners and fix the problem, right? They want to be strong and they want to be able to comfort them, and childbirth is such a foreign concept that it can really-- what are the words I'm looking for? It can really just, it's not familiar to you. So you don't really know what to do and it can cause birth partners sometimes to feel a little hung up, and uncertain, and unsure, so just giving them these tools, like you talked about, and telling them what to do-- yeah. You are supposed to be supportive of your wife during labor, but this is how you do that. I think it's so valuable. It's so valuable. So I really appreciate that.Oh, next question. I guess that's on me.David: Well, let me jump in with one quick thing here.Meagan: Sure.David: One of the challenges as guys I have seen happen in my experience and some of my buddies is that we get into the labor and delivery and like you mentioned, it's overwhelming, it's a novel experience, but then also, that sort of fix-it vibe just doesn't work. There's nothing for us to fix. Our partners are maybe going through some pretty intense experiences and sensations, and we are just sort of supposed to be-- you know, we feel very helpless sometimes. I remember at one point, my wife was squeezing my head really hard and she was really having a challenging series of contractions there and I just felt so helpless. And so that's where I think this mantra comes in, but I definitely wanted to touch base on one other thing. I think it's one of the Dad Tips that I am very strong on. Most of them are recommendations, but this one, I am very strong on and that's Dad Tip #7: “Dude, Hire a Doula.”Julie: Yes.David: That would get 100% of my recommendation energy. Some of them are 60, 70, does this work for you? But dude, hire a doula. That doula is going to be your wingman too. Not just your partner's, but your wingman to really help you. They can give you some tips. They can give you some direction. They can help normalize some of the beeping and some of the other things that are going on. Again, I can circle back to this a little bit later, but that's definitely what will help you focus on your job which is to be that supportive partner. Most dads out there are not birth professionals, so you can just focus on your partner and your mantra, and let your doula really help adjust you as necessary. So I didn't want to skip over that Dad Tip #7: “Dude. Hire a Doula.” Please.Julie: I love that you said that. It reminds me of an article I read a long time ago. I think it was called, Just Hire the Damn Doula. It was a blog.David: Perfect.Julie: it was a dad‘s perspective and he was just like, “This is why you need a doula. Do you know what to do when she is at 4 centimeters and she's only been there for three hours? No, you don't. Do you know how much blood is normal? No, you don't. Do you know what positions to do to help or what labor positions to help encourage baby to descend? No, you don't know that.” He was just like, “You just need a doula.” Anyway, that was a really broad explanation of the article, but I love that. As a doula myself, I make my clients' partners be present at their prenatal visits because it's really important to me to not only get to know the dynamic of their relationship so I can better strengthen that during the labor process, but also so I can get to know the dad and how to support him because doulas are also for dads. I know a lot of times they think, “Oh yeah, doulas are just for the mom, but we are here just as much for you guys to help you know how to best support your partner. The best feeling in the whole world is right after the baby is born and then the dad comes over and gives me a great big hug and I am totally not a hugger. Like as I doula, I can put my hug face on and I can hug if people want touch and stuff, but by nature, I am not a hugger. But when a dad comes and grabs me off my feet-- I just remember this one particular moment. He spins me around and he is like, “Thank you so much.” This was after a VBAC birth and I was just like, “Wow. This is really cool.” It is just really extra special when the dads say those kinds of things.Every dad is a little bit different, but I really appreciate that you say that. I think it's important because a lot of times, dads think that doulas will replace them, but really, a good doula will really work on enhancing your relationship in knowing how to better support your wife. Okay, ready for the next question?David: Sure.Julie: All right. So I don't know. We kind of have already talked about this. I think there might be some overlap a little bit in some of these things, but you have got lots of great tips and advice in your book, so I am sure that we are not even going to scratch the surface into that, but the question is: What do you tell men to do to support women during pregnancy?David: The subtitle of the book is “Better connected, better prepared.” And so I think that focus really helps shape some of the suggestions that follow in that envelope and that's what is so important. I think some of the dads out there-- I know for me, that connecting bit was tricky because my experience of pregnancy is sort of like it's happening over there whereas, for my wife and every other person who has been pregnant, it's literally the biggest deal ever. It's like, “No. This is now. I am already a mom. I am monitoring my vitamins, and sushi, and which cheese I should eat,” and all of these different things. That sense of motherhood is very real but whereas for us dads, a lot of times, we don't think we are dads until the baby gets here.So one of the things I think that's important to remember is that both of those truths are true for each person, but for us dads, there is plenty of opportunity for us to reach over and really try to better connect with mama and her experiences, and just knowing how real and important that is, is a great first step to putting that as a top-tier priority rather than just sort of like, “Oh yeah. We are pregnant and the baby will be here in a couple of months,” kind of thing.So there are so many things you can do as the dad to really get in there. I mentioned hiring a doula is a great thing, a birth class where are you are excited and you want to take on that. You're just as excited about the birth class as mama is. That's a great way to really foster that connection where you are going through that together and learning about it together. Another thing I like are some of these pregnancy tracking apps where-- I know my wife and I really enjoyed each week, as the pregnancy progressed, sitting down and watching the five or ten-minute little video about what's happening this week. Some of them are pretty funny. They compare the size of a growing baby to French pastries or random, exotic animals, and so we would laugh about how baby is the size of a hedgehog this week or the size of a croissant, a big one.So those things where you're really connecting with mama and really doing your part to get really on the inside of her journey as well, all of those things are great ideas because at the end of the day, the goal is to really have that relationship be really strong and vibrant as you are going through the delivery, and then you come home for that fourth trimester because now you're parents together. Now is not the time to figure out how to be a team. Being a team starts during that pregnancy.Meagan: Yes, yes. Love that. I love that. If you can walk in as a team, into parenthood, it's just going to set yourself up so much better.Julie: And can I just say, dad? Even if you don't love the whole “baby is the size of a kumquat” thing, just pretend you do.David: Exactly.Julie: Just pretend.David: Exactly.Julie: Just fake it until you make it.Meagan: Or if the class that you are taking is HypnoBabies or HypnoBirthing and you're like, “Oh, this is really weird,” try your hardest to get in there. I know sometimes it is far-fetched or far out there and it's like, “This is so strange,” but this is something that she may have picked that resonated with her to help her cope through this labor journey, and crazy enough, it will connect. Like when you said, “Take childbirth education classes,” it will connect you two together so much more and help you in all stages.Julie: I love it.David: Exactly. It's funny, I've heard some dad say, “Well, I am not having a baby, you are.” Like, discussing this with their partners about these different things and you know, not that they are adamant about it, but that's their reality and I'm like, “Yeah dads. I get it.” Having a baby is a huge deal. I mean, it's easy for some guys to think, “Well, that's how all of us got here. There may be one or two test-tube babies running around, but we all got here this way,” and it's like, well, this is the first-time experience or second-time experience for your partner. This is a very huge deal. Don't look at it in the abstract. Look at it in the concrete. Your partner is excited and enthusiastic, as are you. It's meaningful. It's a little bit scary. There's a lot of uncertainty. Really get in there to be that supportive partner by connecting with her and her journey rather than sort feeling like you need to stay on your side of the fence in your journey. So that connection piece is so important.Julie: Great life advice too.Meagan: Yeah. Yeah, seriously. You know what? Are you going to write the next one on marriage? Because all of these tips-- this is also how to have a really great date. Julie: We're taking notes. I'll give it to my husband. I'll be like, “Read this. Just kidding.”David: That all becomes so much more pressing once baby gets here. I am a terrible illustrator but if I had any skill, I would have drawn a little series of two stick figures: mama, dada, and then a little small tiny baby stick figure. This is what you think it's going to be, and then the second one would have been the same size mama, dada, and then this giant Michelin Manbaby illustration like, this is the impact of a new baby on your lives. It is not this third thing that joins you.Meagan: It's not tiny.David: No. It's just the middle and the center of everything.Meagan: Yes.David: So now is the time to forge those teammate bonds.Meagan: Love that.Julie: Yes, absolutely.Meagan: Love that. Okay, so this is a hard one because sometimes I know it can be daunting when you are in the birth room and in labor and stuff, but it says: Do you encourage men to stand up for their wives' wishes during labor and birth? And I'm going to add on to that one and say: If you do, what do you feel like is the best way for a dad to say, “Okay. I know she didn't want this. I am going to try to make sure that we go about this a different way”?David: Well, my first answer is yes, absolutely. Dad is the main support person looking out for the bigger picture. I know there were times in my wife's-- especially with our first baby where she couldn't hear anybody else in the room. She couldn't see anybody else, hear anybody else. It was sort of that fugue state that some women go through and she needed me to basically repeat everything that the doula was asking or our OB was asking.So yes, you need to be fully connected there. This circles back to-- I mentioned a doula already, but having that really trusted birth team where both mama and dada can really feel like their birth team is on the same page with you. They are looking out for your best interest and baby's best interest obviously as well. But that birth team coming in, as I mentioned before, most dads aren't going to be birth professionals, but that's where that birth team comes in.So to whatever degree you can start with that team, really be all on the same page. We have gone over the birth preferences. We understand where we want to go with this whether it's what types of pain management we want to use, with breathing, or massage, or etc. But there are times where things might get a little tricky.Like for example, during our first birth, we had a very low intervention birth, no pain medications, and at one point, my wife was struggling a little bit. They wanted to put an oxygen mask on her face and she did not want that. She was trying to swat it away and I felt like I needed to go with her wishes rather than whatever the nurse was trying to do. And so I gently removed the oxygen mask from her face. I looked at both our doula as well as the OB and I am like, “if she doesn't absolutely need this right now, then it's only going to cause her more duress and anxiety to be fighting off this mask which is not what we are looking for.” And they both agreed. But that was on me to not just sort of automatically go with whatever is happening, but to remind them of what our plan was.So again, absolutely stand up for those wishes during the labor and birth. The more you are on the same page with both your wife or your partner and that birth team ahead of time, the easier it is for you to do that because you are not worrying about somebody coming in and trying to change the birth plan, or there is a shift change and a new OB comes in and they have a different idea or they haven't read your birth preferences, so the more you're clear about that as a team, I think the easier it is for us guys to be less focused on being an intervention blocker and more focused on being that supportive teammate with our mantra of being attentive, and calm, and competent, focusing on our birthing partner and being supportive for her.Meagan: Yes. I love that. So tell me, I am trying to think how to ask this. What tips would you give for those dads who are very medical-minded? and trust-- I don't want this to sound negative. My husband is very much like, “What the doctor says, we do because the doctor is the professional. He went to school. He knows it.” But then there are also times where I am like, “But that's really not what I want and I have researched differently.”He told me that he felt like I put him in a really hard place because he was like, “I feel like I was against you and the doctor because I believed what the doctor was saying but you wanted something more. I wanted to make you happy, but I wanted to do what he said because I was worried.” Do you know what I mean? What tip, if you have any, specifically for that type of situation where we have got a dad who doesn't know how to navigate that feeling that they have?David: I think you hit a really, that's a really perfect space because that's where it can be so tricky for us guys. Especially if we have had some experiences in the past where doctors have been helpful or if we have had experiences in the past where they have been unhelpful. We are bringing our own stuff into this equation also. And I think, I know doulas are explicitly focused on the non-medical aspects of all of that birth, but having a doula with you where you can at least have a consultant. It's okay in about 98% of the circumstances to say, “You know what? I need to think about this for a minute.”Julie: Yes.David: I mean, if it's not an emergency, emergency, then you can always ask for a few minutes. You can try to speak with your partner depending on her level of awareness, and consciousness, and interest in the topic, and your doula as well, or even phone a friend. But you usually have time.Sometimes I find that those circumstances relax a little bit when you create some time around them to really sit with it and check-in with your partner. “I know our birth preferences. We wanted to do A. They are really recommending B. What should we, can we wait a few minutes? Do we need to decide now?” Because things can change pretty quickly in a birth and sometimes waiting, things sort of tend to clarify both whether it's the circumstances shift, or the answer that you are working with shifts, or your agreement around the answer shifts.So I would say, look for more time to let things settle or simmer a little bit more before you make a decision. If you don't need to make it right that second, then look for some time. That will usually help the consensus clarify where you're not feeling like you're being pushed into making a decision because nobody likes that sense of being rushed into a decision especially if it doesn't need to be made right that second.Julie: Yeah.Meagan: Love it. Love it, love it, love it. Time. Okay.Julie: Absolutely. Great advice.Meagan: All right, Julie. You are on the next question.Julie: All right. These last two made me chuckle. Okay.How do you convince your husband to read this book and be a better support?Meagan: Yeah.David: You know, that's a great question. I joke sometimes that-- this material, I started offering in a workshop format, an in-person workshop.Julie: That's cool.David: The challenge was that the guys who most needed the workshop were the ones that were actually the most oblivious to the fact that they needed the workshop.Julie: Yeah.David: So well, I think there are a couple things I will mention. One, this book is not like many of the other books out there. Some of the books out there are 500 pages. They are very encyclopedic which is great for the guys that really want to get into those details of the changes mama is going through, the developmental trajectory of baby, but for guys who aren't interested in that, it's just all starts to sound like Charlie Brown's teacher. It's like, “Wah, wah, wah, wah, wah.” And they're like, “God, what am I supposed to do? Where is the part where it says, ‘do this?'”Julie: Yeah.David: So that's the book I wrote. These are some specific things you can do at various times in the pregnancy, and labor, and even the fourth trimester. All the dad tips. There are 28 of them in there, but each of them are very specific for that time period. Dad Tip #, randomly, #2 is knowing the baby's age in weeks. The baby is not four months. You probably wouldn't know it at five weeks, but they are 12 weeks, or 15 weeks, or 17 weeks. That is relevant early on, but that falls away once you are in labor and delivery. It doesn't matter how many weeks you are at this point. So those are very specific things. That's what the book is built on. It is built on these very specific dad tips as well as these big ideas that helps shape your understanding.I joked with you earlier that one of the early subtitles I was playing around was, “All the things I wish I did better the first time.”Julie: Yeah. I know. We could all write a book like that.David: Right. Right. But that's kind of the goal is like, I want the guys out there to have a chance to read this and their list, which, there will be a list of things they wished they did better the first time, or even the second time, or third time. I want that list to be shorter than mine.So that's where it is coming from. It's not another, “You are doing it wrong” kind of book and it's not super encyclopedic. It's short. It's sweet. It's pretty much to the point. It's written by, I am just a dude who has been through this journey. I talk a little bit. It's straight talk. I have done a great job in not cursing on the podcast, but there are some curse words mixed in there, a little salt and pepper, because when us guys get joking around, sometimes our language flows a little bit more freely.That's how the book is written. It's not preachy. It's not, again, like I mentioned, not a “You are doing it wrong” book. It's like, “Hey man. Yeah. This is challenging. It's tough and sometimes it's really hard.” One of the early big ideas is what I call the “Dude Zone to Dad Zone and Avoiding the Dud Zones”.Meagan: Yeah, I was going to say I saw that in there. “Avoiding the Dud Zones”. Yes.David: Yeah. The two dud zones I talk about-- I talk about the journey you are on. I tell the guys, “You don't know it, but right now you're on this journey from the dude zone to the dad zone. The dude zone is when you're hanging out. You have your relationship. You have your job and all these other hobbies and cool things that are priorities for you, and now that you are going to be, you are a dad, but you're going to be a dad when the baby gets here, as these expectant fathers are thinking, but you need to move into that dad zone,” which is shifting some things around, looking at things a little bit differently, re-prioritizing a couple things and during that pregnancy journey, things are really tricky for us guys because we know we are supposed to be helpful and supportive. We don't know what that means and we bump into doing it wrong a lot.We are guessing. We are sort of like, “Well, I don't know.” We are trying to figure it out, and so the two dud zones I talk about are Wimpy Town on the left and Jerkville on the right. Wimpy Town are the guys that just gave up on trying to figure it out and they basically say something to the effect of, “Just tell me what to do and I will do that.” They are defeated. They have given up on trying to figure out because they're just tired. They are just frustrated with guessing wrong but that's not really a good place to be. No expectant mama wants to have to tell her partner what to do, and when to do it, and all of that kind of stuff. That's not a good teammate or good teamwork there.And on the other side is Jerkville. Those are the guys that occasionally will be like, “You know what? I don't know what to do. I'm guessing. You do it. I saw a zebra pop out a baby last night on a nature show and the zebra was running around five minutes later. I don't quite understand what's going on here.” They get a little testy and defiant. That journey to the dad zone, you can bump into those dud zones a lot.There were many times I felt like I had one foot in Wimpy Town and one foot in Jerkville and I was like, “I don't know what to do. I really want to be great and to be an awesome partner, but last night this worked and then tonight, the same thing is the worst idea ever. I am trying to remain connected but it is just really tricky.” So that's where I am coming from. A lot of what I am trying to offer here is specific tips to help these guys make that journey from the dude zone to the dad zone with fewer slips into those dud zones. So that's another reason I would say, give it a shot out there.Julie: Love it.Meagan: That's awesome.Julie: That's great. Yeah. I am going to add in a little question before Meagan asks the last one and we wrap it up. What about the dads who are less assertive? I know for some dads, it's harder for them to stand up for their partner in the birth room. It's harder for them to tell the doctor that they want to do something different even if they agree that they should do something different. Everybody's personalities are different, but what advice would you give for those dads who are less confrontational but who want to be a solid, strong support for their wife?David: That's a really good question.Meagan: Yeah. Would time still be the suggestion or do you feel like there is a different approach for those guys?David: I think time is always a great first place to start because then you have a chance to marinate a little bit and think about what the question is that is being asked of you or the suggestion. You have a chance to speak it over, talk it over a little bit with you. Ideally again, this gets back to that doula and having a great doula as your wingman. This is a great resource for us guys to discuss some of these things and also to check in with our partner and see how they're feeling. Sometimes, something that is very clear in the birth plan or the birth preferences, as things progress, your partner may change her mind also and you don't want to be adamantly holding the ground against something that your partner has now shifted her opinion on too.So that's where having those conversations-- but it's tricky. I am not an OB. I am not a midwife. I am not an auto mechanic. I am not going to argue against these people too strongly when they are specifically trained to do these things and I am not. So it's really hard because most of us guys who aren't birth professionals don't really feel like we have too strong of a leg to stand on when push comes to shove.Julie: Yeah.David: We want our partners to be safe. We want our babies to be safe and that's what the experts are there for ideally. That's what their focus is too. So I still think time is your best first resource to ask for, and then to just confer with your partner and confer with other people on your birth team. “What would you do if this was your partner? What would you do if this was your baby?” could be some good questions to ask back or “What are some other options?” But at the end of the day, sometimes you have to make a decision and you just have to make the best one you can at the time with what information you have.Julie: Yeah. Totally. Yeah, I guess that was kind of a bad question. It had already been answered, but I think maybe you gave a different perspective from it and we learn by repetition, right? All right, Meagan, you are up. Last question.Meagan: Yeah. So one of the questions is: Are men actually reading your book? And I can almost guarantee that the answer is, “Yes”. But yeah, do you feel like you have had a good turnout from your book?David: Yeah. So far, it's been pretty exciting. The book just came out in the fall of last year and one of the funny things about this is, assuming that they purchased a book somewhat early in the pregnancy, they are just now getting into the actual experience of having labor and delivery, and that fourth trimester. The sales have really been taking off recently which is great, but I have been starting to get some feedback from some of the guys out there and from some of the mamas too. I've gotten a couple thank you emails recently.Meagan: Awesome.David: I have gotten a couple more that said, “I probably should have taken you more seriously earlier in the journey.”Julie: Aw snap.Meagan: That's awesome feedback though. You are like, “Yeah, okay. I am writing something really good here.” Yeah.Julie: You're like, “Heck yeah. I'm so legit.”David: I got one. It was like, “It's 3:00 a.m. I am working at one of your Dad Tips. My baby was crying. They are finally asleep in my arm and I am typing this on my phone with one hand, but thank you so much for this tip. This was great, some of the suggestions. I have looked back at the book also in some of the earlier chapters and I was thinking, ‘Yep. Should have done that. Yep. That would have been better.'”So ultimately, at the end of the day, it's the guys out there who have had a chance to go through the pregnancy journey and now their buddies are going through their own pregnancy journey and their friends are asking them, “Hey, what kind of tips or advice do you have for me?” A couple of guys have said, “My first step is going to be to read this book and I am going to give them my copy.” And I am like, “That's great. Pass it on.” Let the information get out there and make these birth experiences for all parties-- mama, dad, and baby too. Anything any of us can do to make that a little bit smoother and easier is great.So yes. Thankfully, they are reading it out there. Some of the mamas too. I got one email from a mama recently who, she had glanced through the book in preparation whether she should recommend it to her husband or not and she said she learned a lot about how he was looking at the pregnancy that she was able to be more, I don't wanna say compassionate, but--Meagan: Understanding.David: Understanding, yeah. Like, “This is hard for him too. He is not only over there or not connecting with me, but he has got his own journey and a lot of this is new.” You can't hold somebody accountable for something they haven't been trained to do or informed about. So she was able to be a lot more understanding and workable in connecting with him and his journey too which I thought was awesome. I thought, “That was unexpected but great.” Teamwork makes the dream work.Meagan: Seriously though. That's what I'm saying though. So many people are focused on what mom is doing. Mom is carrying baby. Mom is growing. Mom is doing this. Her boobs are getting big. You know, all these things, but it's not like, you know what? Dad is struggling seeing her in pain. Dad is struggling seeing her not sleep very well. Dad is struggling with the fact that soon there's going to be a child to take care of. You know? There is so much. And so I love that, that she was like, “I was able to understand his point of view too.” That is really cool. That is really, really cool.David: Yeah, that was neat. I really liked that one because, at the end of the day, the parenting partnership is what's really going to be coming into play here, and whatever we can do to strengthen those bonds coming from both the mom's side and the dad‘s side, that just makes that family unit so much stronger to work with those fourth trimester challenges, of which there can be many.Julie: Yeah.Meagan: Yes.David: So build those bonds now.Meagan: Well, and I just want to touch back on what you said, there is so much in your book that talks about things before baby even comes. And so Father's Day is in June? When does this air?Julie: This is airing on June 2. When is Father's Day?David: Awesome.Meagan: Okay, see? Father's Day is not June 2. It is after. This is a great Father's Day present. So I am just going to quickly go over a couple of the chapter titles. “The Dad Instinct” which, in my opinion, is awesome that you are calling it that. It seriously made me so happy when I saw that because we always talk about mama's instinct, mom instinct knows best. Guess what? Dad's instinct knows best too. So “Dad's Instinct”, “We Are Pregnant: Through the First Trimester”, “The Second Trimester: Setting the Table”, “Third Trimester: Giddyup Cowboy”. Oh yeah. That's when all of the complaining happens. “Labor and Delivery: The Time is Now”. “Welcome to Fatherhood: The Fourth Trimester”.And then he's got tips and gift tracker spreadsheets, oh my gosh, go-bag essentials, birth plan topics, big ideas. I mean, there is so much in this amazing book. So ladies, grab this book for your husband. Read it together. Read it together.Julie: thevbaclink.com/wtfMeagan: WTF, yes.Julie: Alive and active. I just tested it on my browser. It is on Amazon, both paperback and audio versions.Meagan: Which is awesome. Are you the person reading it?David: The Kindle is available, but the audio version is not yet available.Julie: Oh sorry. I saw Kindle. Yeah.David: That's okay.Julie: No, sorry.David: Yeah, Kindle is there. I did do the audio and I am waiting for that to get a little bit more polished up with some of my coughing and whatnot taken out, but that will be available soon too. So we are almost there.Julie: We can relate.Meagan: Awesome.Julie: Yay.Meagan: Okay ladies, Father's Day is coming up. Definitely go grab this.Julie: Perfect. All right. Was there anything else you wanted to add before we cut you loose?David: No, this was great. I really enjoyed coming on here chatting with you ladies. Everything around birth is something I am super passionate about and like I said, anything out there that is helping people have a little bit easier, smoother journey is fantastic. So thanks again for having me on. I really appreciate it.Meagan: Thank you for joining us.Julie: Yeah, absolutely. It was fun having you on. All right, ladies, we are going to drop the link to his book in our bio, so go ahead and click on it there.Meagan: Do you have social media, David?David: I have a Facebook page that is pretty not active. I have been getting a lot of requests to get on Instagram and do some fun live videos, but I am a little bit behind the curve on that. So hopefully I can get that soon. But the website has tons of great resources on there. It's just www.welcometofatherhood.com.Julie: Perfect.David: Like you mentioned, the birth plan, the gift tracker spreadsheet, and all kinds of cool stuff. So you can always reach me through there too and send me emails. I love emails. I love questions and comments so please send them on in.Meagan: Awesome.Julie: Perfect.ClosingWould you like to be a guest on the podcast? Head over to thevbaclink.com/share and submit your story. For all things VBAC, including online and in-person VBAC classes, The VBAC Link blog, and Julie and Meagan's bios, head over to thevbaclink.com. Congratulations on starting your journey of learning and discovery with The VBAC Link.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy
1248 跟老外去吃麵記:一口氣點了六碗麵老闆很困惑Lily:Hello David, we just came back from the noodle shop. David:We did.Lily:How do you feel right now?David:Full, hahaha.Lily:Very full. What was your favorite part of the whole experience?David:I think my favorite part was how confused the laoban (shop owner) was.Lily:What happened to laoban?David:Well, we were two people and we ordered six bowls of noodles. And so the poor man had to make six bowls of noodles for two people.Lily:Yeah. I think he was happy to get so many business, you know, from us.David:But I think he thinks we're crazy...Lily:Right. A little bit. Yeah. I agree. He was confused when I was paying the bill and yeah. And, but it was fun. It was fun. It was fun. And we made a video, we recorded something and then we are about to share our experience. 莉莉:哈囉,泰偉,我們剛從麵館回來。泰偉:是的。莉莉:你現在是什麼感覺?泰偉:飽,哈哈哈。莉莉:你最喜歡的是什麼部分?泰偉:我覺得我最喜歡的部分是那個老闆有多困惑。莉莉:老闆怎麼了?泰偉:嗯,我們是兩個人,點了六碗麪。於是,這個可憐的人不得不爲兩個人做六碗麪條。莉莉:是的,但我想他很高興從我們這裏得到這麼多生意。泰偉:但我覺得他覺得我們瘋了莉莉:對,有一點點。是的,我同意。我買單的時候,他很迷茫,但是很有趣,很開心。我們錄了一段視頻,錄了一些東西,然後我們要分享我們的經驗。接下來我們會播放我們在吃面之後的幾段討論,請別忘記了持續收聽,然後約上你的老外朋友一起上麵店!可以的話關注我們的IG & 臉書粉絲頁是Fly with Lily,或者是在Apple Podcasts 和喜馬拉雅FM給我一個五星的評價,這樣就會有更多人和我們一起踏上學英語環遊世界的旅程。
1248 跟老外去吃麵記:一口氣點了六碗麵老闆很困惑Lily:Hello David, we just came back from the noodle shop. David:We did.Lily:How do you feel right now?David:Full, hahaha.Lily:Very full. What was your favorite part of the whole experience?David:I think my favorite part was how confused the laoban (shop owner) was.Lily:What happened to laoban?David:Well, we were two people and we ordered six bowls of noodles. And so the poor man had to make six bowls of noodles for two people.Lily:Yeah. I think he was happy to get so many business, you know, from us.David:But I think he thinks we're crazy...Lily:Right. A little bit. Yeah. I agree. He was confused when I was paying the bill and yeah. And, but it was fun. It was fun. It was fun. And we made a video, we recorded something and then we are about to share our experience. 莉莉:哈囉,泰偉,我們剛從麵館回來。泰偉:是的。莉莉:你現在是什麼感覺?泰偉:飽,哈哈哈。莉莉:你最喜歡的是什麼部分?泰偉:我覺得我最喜歡的部分是那個老闆有多困惑。莉莉:老闆怎麼了?泰偉:嗯,我們是兩個人,點了六碗麪。於是,這個可憐的人不得不爲兩個人做六碗麪條。莉莉:是的,但我想他很高興從我們這裏得到這麼多生意。泰偉:但我覺得他覺得我們瘋了莉莉:對,有一點點。是的,我同意。我買單的時候,他很迷茫,但是很有趣,很開心。我們錄了一段視頻,錄了一些東西,然後我們要分享我們的經驗。接下來我們會播放我們在吃面之後的幾段討論,請別忘記了持續收聽,然後約上你的老外朋友一起上麵店!可以的話關注我們的IG & 臉書粉絲頁是Fly with Lily,或者是在Apple Podcasts 和喜馬拉雅FM給我一個五星的評價,這樣就會有更多人和我們一起踏上學英語環遊世界的旅程。
1248 跟老外去吃麵記:一口氣點了六碗麵老闆很困惑Lily:Hello David, we just came back from the noodle shop. David:We did.Lily:How do you feel right now?David:Full, hahaha.Lily:Very full. What was your favorite part of the whole experience?David:I think my favorite part was how confused the laoban (shop owner) was.Lily:What happened to laoban?David:Well, we were two people and we ordered six bowls of noodles. And so the poor man had to make six bowls of noodles for two people.Lily:Yeah. I think he was happy to get so many business, you know, from us.David:But I think he thinks we're crazy...Lily:Right. A little bit. Yeah. I agree. He was confused when I was paying the bill and yeah. And, but it was fun. It was fun. It was fun. And we made a video, we recorded something and then we are about to share our experience. 莉莉:哈囉,泰偉,我們剛從麵館回來。泰偉:是的。莉莉:你現在是什麼感覺?泰偉:飽,哈哈哈。莉莉:你最喜歡的是什麼部分?泰偉:我覺得我最喜歡的部分是那個老闆有多困惑。莉莉:老闆怎麼了?泰偉:嗯,我們是兩個人,點了六碗麪。於是,這個可憐的人不得不爲兩個人做六碗麪條。莉莉:是的,但我想他很高興從我們這裏得到這麼多生意。泰偉:但我覺得他覺得我們瘋了莉莉:對,有一點點。是的,我同意。我買單的時候,他很迷茫,但是很有趣,很開心。我們錄了一段視頻,錄了一些東西,然後我們要分享我們的經驗。接下來我們會播放我們在吃面之後的幾段討論,請別忘記了持續收聽,然後約上你的老外朋友一起上麵店!可以的話關注我們的IG & 臉書粉絲頁是Fly with Lily,或者是在Apple Podcasts 和喜馬拉雅FM給我一個五星的評價,這樣就會有更多人和我們一起踏上學英語環遊世界的旅程。
1248 跟老外去吃麵記:一口氣點了六碗麵老闆很困惑Lily:Hello David, we just came back from the noodle shop. David:We did.Lily:How do you feel right now?David:Full, hahaha.Lily:Very full. What was your favorite part of the whole experience?David:I think my favorite part was how confused the laoban (shop owner) was.Lily:What happened to laoban?David:Well, we were two people and we ordered six bowls of noodles. And so the poor man had to make six bowls of noodles for two people.Lily:Yeah. I think he was happy to get so many business, you know, from us.David:But I think he thinks we're crazy...Lily:Right. A little bit. Yeah. I agree. He was confused when I was paying the bill and yeah. And, but it was fun. It was fun. It was fun. And we made a video, we recorded something and then we are about to share our experience. 莉莉:哈囉,泰偉,我們剛從麵館回來。泰偉:是的。莉莉:你現在是什麼感覺?泰偉:飽,哈哈哈。莉莉:你最喜歡的是什麼部分?泰偉:我覺得我最喜歡的部分是那個老闆有多困惑。莉莉:老闆怎麼了?泰偉:嗯,我們是兩個人,點了六碗麪。於是,這個可憐的人不得不爲兩個人做六碗麪條。莉莉:是的,但我想他很高興從我們這裏得到這麼多生意。泰偉:但我覺得他覺得我們瘋了莉莉:對,有一點點。是的,我同意。我買單的時候,他很迷茫,但是很有趣,很開心。我們錄了一段視頻,錄了一些東西,然後我們要分享我們的經驗。接下來我們會播放我們在吃面之後的幾段討論,請別忘記了持續收聽,然後約上你的老外朋友一起上麵店!可以的話關注我們的IG & 臉書粉絲頁是Fly with Lily,或者是在Apple Podcasts 和喜馬拉雅FM給我一個五星的評價,這樣就會有更多人和我們一起踏上學英語環遊世界的旅程。
David Meltzer Interview - Be Kind To Your Future Self I was a true honor and thrill to have David Meltzer on my show. He inspires me and I love his approach to life. I look forward to creating a genuine relationship with him in the years to come and being mentored by him as well. David Meltzer is the Co-Founder of Sports 1 Marketing and formerly served as CEO of the renowned Leigh (“Lee”) Steinberg Sports & Entertainment agency, which was the inspiration for the movie Jerry Maguire. His life's mission is to empower OVER 1 BILLION people to be happy! This simple yet powerful mission has led him on an incredible journey to provide one thing…VALUE. In all his content, and communication that's exactly what you'll receive. As part of that mission, for the past 20 years, he's been providing free weekly trainings to empower others to empower others to be happy (held each week at 11AM Pacific Time). Link to Register: https://dmeltzer.com/training David Meltzer Co-Founder of Sports 1 Marketing formerly served as CEO of the renowned Leigh (“Lee”) Steinberg Sports & Entertainment agency, which was the inspiration for the movie Jerry Maguire Website: https://dmeltzer.com/ Weekly Free Trainings - Fridays 11am PST https://dmeltzer.com/training/ Instagram: https://www.instagram.com/davidmeltzer/ Facebook: https://www.facebook.com/davidmeltzer11 LinkedIn: https://www.linkedin.com/in/davidmeltzer2/ Twitter: https://twitter.com/davidmeltzer YouTube: https://www.youtube.com/channel/UCflt1OopRWIApMOjVgZyJ6Q David's Podcast - The Playbook: https://www.entrepreneur.com/listen/playbook Text Community: (949) 298-2905 Email: david@dmeltzer.com Podcast Music By: Andy Galore, Album: "Out and About", Song: "Chicken & Scotch" 2014 Andy's Links: http://andygalore.com/ https://www.facebook.com/andygalorebass If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. For show notes and past guests, please visit: https://joecostelloglobal.libsyn.com Subscribe, Rate & Review: I would love if you could subscribe to the podcast and leave an honest rating & review. This will encourage other people to listen and allow us to grow as a community. The bigger we get as a community, the bigger the impact we can have on the world. Sign up for Joe's email newsletter at: https://joecostelloglobal.com/#signup For transcripts of episodes, go to: https://joecostelloglobal.lybsyn.com Follow Joe: https://linktr.ee/joecostello Transcript Joe: So my guest today is David Meltzer. I've been very excited to have this interview and I can't wait. So, David, welcome so much and I appreciate you coming on my show. David: Oh, thanks for having me. I appreciate any opportunity to share a message on your platform to help other people make money, help people have fun, be happy. Joe: I appreciate it. So is it really weird if I tell you that I love you? I mean, I love if I start the interview off that way, that I love everything about you. I'm so glad I found you. For me, you are the the full package of someone that I look up to all that you do, your humble, your kind. When I see you on your live videos and you're talking with people, you can see the emotion that's there. It's just hard to find the whole package like that. David: Well, it takes years of work, internal work to allow yourself to love yourself, and they told me that if I could ever learn to love myself and I'm still on the journey, that more people would love me. So it's not weird to say that it's we're connected. We're connected in those people that feel me that here and listen to me. And it moves them just there's a clear connection between us. The tree has no branches. So I am well adjusted in the fact that I take it as a huge compliment. If anyone says that to me that I'm doing the right work internally so that other people feel the same way. Joe: I actually wrote down different notes, one of them is kind of your future self, I'd like you to explain that. David: My favorite could ever be kind of your future self is a perspective of finding the light, the love and the lessons, the super power and everything, so many people, they look for what they don't want. They look for what's missing in their lives. They look for what other people want for them, and they're not being kind to their future selves by doing so. When you look for the superpowers and others in yourself, when you look for the light, the love and the lessons, your being kind to your future selves. And people ask me, well, how how do I do that? Pragmatically, David and I have a simple, pragmatic methodology, which is do good deeds, smiley people wave out that my wife still thinks I'm a complete kook? We go walking, hopefully every day we go walking together. It's one of the things that I do is an adaptable routine to make sure I spend a minimum of time with my wife, but I'll wave and everyone. And so, you know, that person know she looks at me like I'm absolutely insane. But to me, that's being kind to my future self. And you never know. I'm telling you, so many people have told me that I've impacted their lives because I've had that perspective one word at the right time or one action of letting someone in front of you at the grocery store. There's a woman that sit there and go, she had babies and she had items. And I just, you know, I'm on a coaching call. What's the difference about doing it in my car or in line at the grocery store? I let the lady before me. She turns around in tears. I was like, Are you OK? She's like, No. She goes, We moved here and we thought we had to move back. And I told myself, if I don't find somebody, you know, to show me that kindness that I was going to think about moving back. And there you were. And I was like, that's what we do. That's being kind to your future self. And all that impact aggregates together to change the world. Joe: One of the other things that I wanted to ask along the same lines is, are you a believer of we are where we are supposed to be? You know, the thing that people say, you know, the universe delivers when you're ready. And I just thank God, doesn't the universe have more for me? I want to live a much bigger life. That's why I completely look up to you. And I aspire to what you do. And I just feel like I just turned fifty nine in February and I'm like, God, there's got to be something more. I want more. I want to live a bigger life and I can't believe this is all the universe thinks I deserve. David: Yeah, so the paradigm that needs to be shifted is, yes, I believe that we are at the right place at the perfect time, that we have everything we need or we wouldn't be here. But I also believe that we need to live in the Law of GooYa and the Law of GooYa. Get off your ass. John Assaraf taught me that and he was explaining first time I met him, you know, he I started to read the law of Attraction, thinking he would dive deep. And he said, whoa, whoa, whoa, whoa, whoa. I really don't believe in the law of attraction. I believe a lot of Coya, which creates a frequency that will allow things to happen. And it really changed my perspective, because what I want you to think about and everybody out there is what if you already have everything? Meaning what if you already are connected to the health that you want, the great wealth that you want, and the great happiness that is yours? You talk about the minute we say that there's more for me, we actually are thinking about what's missing in our lives instead of shifting the paradigm and saying, I already have it, what am I doing to interfere with it? I stem from a belief above exactly where I'm supposed to be. I'm going to do everything I can, the law of GooYa, to angle to what I want, to clear the interference from me to what I want to come through me for others, because I'm going to give it away anyway. David: But there's much more for me because I live in a world of more than enough. More than enough of everything for everyone. It's my job not to go get it, not to think that there's something missing, but to figure out what's interfering with me and everything that is already mine. The greatest source of power, light love lessons, the greatest source of abundance of everything that is beyond our fathomable dreams and imaginations called infinity. And if I can, just for an instant every day, touch limitlessness an infinity, if I can do that through my perspective of gratitude, forgiveness, accountability and inspiration, just an instant that allows me to hopefully tomorrow have two instances where I've cleared everything out of the way and I feel that way of abundance, truly unconditional love. And so I want everyone out there to think about what is already theirs to remind themselves. Remember all these words, recollect again, knowledge, the fact that we already have it, and when we don't feel as if we have it, that it's an illusion created by an interference, usually the ego is creating that interference. And so what do we do to clear that out of the way so that all of the things that are already ours, the material wealth, the extraordinary health, the extraordinary happiness that they actually come to us more rapidly and accurately. They come through us for others in the same way. Joe: So you're saying that I by doing that, I will be able to identify what the resistance's. David: Correct. You already have everything you dream of, you're just resisting it and you're creating void shortages and obstacles between you and what you already have. Joe: I just I'm getting in my own way, is what you're trying to say in a nice way. David: So, no, I think that is a nice thing to say, I'm in my own way all the time, I'm just limited by what what I'm doing in comparison is an extraordinary way of stealing your joy. So I'm consistently trying to expand my own pipe to what I already am. And as much as I can see where you have that perspective of, there's so much more. Why don't I have it? That's the world of not enough. And I live there for a while. I know what that's like where you become a victim, where there's not enough of anything and you should have more. And why do they have this? And I don't have this. And then even the world of for me, you know, everything's for me. And I lived in this abundant or supposedly abundant world where I bought things I didn't need to impress people I didn't like creating more resistance in my life to teach me even more valuable lessons. But I try to spend only minutes in moments and interference instead of days, weeks, months and years. And I live as much as I can in the pursuit of a world of more than enough of abundance, where I truly believe that infinity is my possibility. Joe: So I read about in your book, so I love this book, and I bought 10 copies because I want to share this with people I care about. And I read in there about how you talk about meditation and manifestation. And the really cool thing was the point where you say you get up and you meditate at and you said in the two a.m. and four a.m. time period is when there's less vibration around. And so the four a.m. time slot for you is really important. So if meditation was taken away from you for some reason, just hypothetically, what would that do to you or what would you think that the importance of meditation in your life is? David: Yeah, it would it would diminish my capacity to plateau and grow, it would diminish my capacity to have a baseline in which I can recognize, recollect, remember my highest frequency so that I know when the ego based consciousness is that I have are interfering with me and what I want or what is already mine. And so I think without the practice of being quiet, it would be more difficult to expand, grow and accelerate at the pace that I do to spend minutes and moments and ego based consciousness instead of days, weeks, months and years. It's a very essential time. Is important is meditation is to me, so is the shift in the paradigm that I've utilized for my time in all of the things that is not in to goodness, that has evolved from connected to goodness. The book that you have is that I have a philosophy about my days. My tomorrows starts today. So where everyone gets excited about tomorrow, that means 9:00 PM to me. So I've shifted the man made construct of time. I know it screws up my wife in the calendaring because I'll say, Oh, I can't wait for tomorrow. And then my tomorrow starts at 9:00 p.m.. And the reason it does is that it shifts my entire perspective of life, that I have an unwinding routine to start my day, that my day starts at its highest frequency at nine p.m. David: I then put my mind, body and soul in the right position to recover at the beginning of the day, to recover physically, then to allow the greatest flow of connection with the least amount of resistance to start my day, which is sleep. Sleep is the physical, natural realm of being able to get out of your own way. And so to utilize nine p.m. is the beginning of my day to set me up for what most people call tomorrow. But now I call it tomorrow. Today is extraordinary because then leading into four a.m., I'm now at my physical recovery of the highest vibration. But I also have elevated my awareness through less interference between subconscious and unconscious connectivity to the greatest source of light, love and lessons, which leads to what I call the plateau and growth methodology of life. So you're not living and can move the stranger's myth of Sisyphus pushing a boulder, which I live many years of my life feeling this way, pushing a boulder to the top of the hill just to start over in the morning. My tomorrow starts today. I think the nine p.m. and routine is equal to, if not greater than importance to the practice of being quiet. My for a meditation for twenty minutes. Joe: And what does that 9:00 p.m. unwinding look like? David: So for me, it's understanding negative energy, so temperature wise, for me, it's sixty seven degrees so that I'm in a state of temperature that allows for the most physical recovery dark, no negative conversation, no negative content, disturbing content. Everything to me is to whine down, no eating, no drinking, no drugs or alcohol, obviously, which I laugh at. But there's plenty of times, believe me, after nine o'clock, that I was partaking in things that were interfering with what was the most essential time for me to connect to the greatest source that has helped me to elevate my life and other people's lives. So, you know, the unwinding routine is a discipline of making sure no emails, no dams, no communication outside other than the intimate conversation with me in my family and I regulate. If someone brings up, you know, I want to quit college, that conversation is not going to be had at nine o'clock. I do have an adaptable routine. You know, I have my priorities. I take inventory of my values. So if there was an emergency, you know, somebody either my my health or my family's well-being, then that would take priority over the unwinding routine. So I do have an adaptable routine. So I'm not like some strict robot. You know, my daughter is like, oh, well, I need you. Nope. Sorry, it's nine or five. I'm not here. I can know I'm a human being. I prioritize my family. But I will tell you that I feel differently in the morning when I allow interference to the beginning of my day. And I can definitely feel the difference. And once again, I'm blessed because minutes in moments is all I'm spending there lately and very few days. Do I have to even implement my adaptable routine? Joe: So if someone comes in contact with you via, let's say, social media and I don't even know how you keep up the pace that you do with the live videos on Instagram and Facebook. And I have a question about Miles that I want to ask you before we finish up. Are you getting to bed at 11 like it mentions that in the book? Are you actually only sleeping five hours? You're getting about 11, getting up at four for meditation. David: So this is the great Dave Meltzer lie that I wrote and connected to goodness that Joe: Ok. David: Pissed my wife off because my wife has rolled her eyes at this question more than not, because she's been the victim of me passing out at nine or five, nine thirty, ten o'clock. I mean, if I was more honest when I wrote that book, I would have said I have unwinding routines starting at nine. I must be passed out by 11 and there are many road trips to hundred of them. A year before covid where I was pushing myself because I didn't have the family aspect of being on the road. So I pushed myself and make sure I was passed out by 11 p.m. Pacific Time. But most of the time I've passed out before 11, so somewhere between five, five and seven hours a night. So I would say I averaged six. But there's many times I've gone months and months and five hours. I prefer it's it's interesting because physically I'm getting in better shape. So I was just talking about Mondays. I take my day off of physical, hard, physical exercise and I do yoga stretching balance. And so I've been finding that I wake up at two thirty to three if if I fall asleep too early just because I'm pushing myself, I pass out at nine thirty. Now I only go to thirty. So I just need the five hours. Today was one of those days like driving everyone in my business crazy because they woke up with one hundred emails. Joe: So I want to know if I can steal your bunch or make a lot of money, help a lot of people and have a lot of fun. I love that. Is that OK to steal? David: Absolutely Joe: It's totally. David: Share Joe: I love it. David: Share my concern and do good deeds. Please tell everyone to make money, help people have fun as part of my mission to empower over a billion people. And the more you tell people, hey, this comes from my mentor, David Meltzer. Join him for his free trainings, books, exercises, guys, whatever I can do, please share that message, because that's the definition to of happiness. If you make a lot of money and you help a lot of people and you have a lot of fun, I promise you you'll be one of the happiest people you've ever met. Joe: I love it. OK, I know our time is limited, I could sit and talk with you all day. I have a question about Miles is David: My son. Joe: Is yes. Is he going to be it seems extremely knowledgeable about sports. When I spoke with one of the Instagram where you and he was sitting on your lap and you were doing a Sunday morning and people were rattling questions off in the comments and he seems to be a sports fanatic, what's he going to what's he going to be when he grows up? Does he know yet? David: Whatever he wants, he knows that three things he knows that I tell him every day. Number one, I'm proud of him to that I love him. And three, I always have his back. I tell him I need four things from him. I need one him to be happy, too. I need him to be healthy. Three, I want him to love me. And four, I want him to appreciate me, meaning that allow me to bring value to his life. So those are the three in the fours. And then whenever we do activities, I always tell them we have three objectives. When we do activities together, whatever they may be, he has to do his best. He has to have fun and he has to learn at least one lesson. So if he does his best, has fun and learn the lesson following all the other constructs or whatever it is he is in, what he loves to do, it will find and it's already there. And he is extraordinary by all my four kids. I'm blessed to become even a better father now than it was. But I'm blessed. They have good genetics, which helps. But they also have really good mindsets and hard assets to follow the quantum genetics that they've been gifted with. Joe: Well, they are lucky to have you, David. This has been such an honor for me, I can't even begin to tell you. Thank you so much for your time. And I hope our paths cross someday. I would love to meet you in person. And thank you so much for doing this. David: Come visit me. You're welcome every Friday for my free trainings, we have a studio where covid safe if you want to wait till after. You're always welcome to come visit me on a Friday Joe: Thank you so much, David.
The world is moving toward being decentralized in every area from the internet to big business. What that means is that the way we do things will change, and in some cases, those things are already vastly different than the norm we all have grown accustomed to.Funding and investments are one aspect of the business world that for a long time have operated in silos. But the tide is shifting, and David Koifman is helping to democratize the world of investment through his work at Kickfurther.Kickfurther is an investment platform that uses the power of crowdfunding to help CPG companies fund their inventory and production runs. Most of the deals on Kickfurther are fully funded and closed within minutes, which proves there is an appetite for this kind of investment in the general market. On this episode of Up Next in Commerce, David explains the model and its benefits to both businesses and investors, and he explains how crowdfunding will continue to make an impact on ecommerce companies in the decentralized future. Main Takeaways:Democratizing Investment: For too long, companies have been at the mercy of financial institutions to help fund early production runs or other operational costs. And while that solution works for some, we think that new solutions are still needed. Opening up investment opportunities to the general public is a peek into where the world of funding is headingKeep Proving Yourself: When a company gets a bank loan and pays it off, the business is seen as more successful and its credit rises. A similar thing happens when a company uses crowdfunding for inventory: by delivering the inventory the crowd has purchased and then opening up a new round of funding, a business is building credibility with a consumer and broad investor audience that it otherwise would not have been able to reach.For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length.---Up Next in Commerce is brought to you by Salesforce Commerce Cloud. Respond quickly to changing customer needs with flexible Ecommerce connected to marketing, sales, and service. Deliver intelligent commerce experiences your customers can trust, across every channel. Together, we’re ready for what’s next in commerce. Learn more at salesforce.com/commerce---Transcript:Stephanie:Welcome back to Up Next in Commerce. This is Stephanie Postles. And today we're talking to David Koifman, the head of growth at Kickfurther. David, welcome to the show.David:Hey Stephanie. Great to be on the show.Stephanie:I'm glad to have you. So I was looking through your background and I was hoping we could start there because I saw that you've been in sales and partnerships and business development, and it seems like you've had a wide ranging career. So I wanted to hear a little bit about what you did before Kickfurther, and what brought you here.David:Before Kickfurther? I was in marketing right out of college. And then I went into the world of startups in financial technology. I began as a sales rep and grew within a small organization to a much larger organization, led the team, and basically built out sales account management partnerships. And then we were getting to a stage of growth where I wasn't feeling the excitement that I initially felt and joined the team at Kickfurther to do it all over again. So I've been here three and a half years. It's been awesome. We've grown tremendously, and I'm very excited about the next few years to see where it will go.Stephanie:Awesome. So you've always, always had the startup bug, where you're looking for that crazy hectic environment, fast growth.David:Yeah. It's like I see myself as a sales guy who doesn't like just selling. What I like is building the sales process, building the team, understanding the customer. So a little bit more beyond just knowing individual customers and building a book of business.Stephanie:Yep. Got it. So tell me a bit about what Kickfurther does.David:So Kickfurther solves a unique problem that every consumer goods business faces in their early stages of growth. You'll see a lot of companies are funding on platforms like Kickstarter, Indiegogo. These are crowdfunding platforms where businesses raise money to fund their first production run. Production run is when a business is producing inventory. Inventory is the product that they sell. So as that business completes their crowdfunding campaign or determines that they have product market fit, they will need to come back and order more product. Sometimes, they're buying that product from a supplier, maybe a manufacturer in China or here in the U.S., somebody that produces a finished product, and then they receive it in their warehouse and they sell through it. Sometimes they're buying a bunch of raw materials and making a product themselves. Usually that's the case in food or some health and beauty applications.David:But the bottom line is that costs a lot of money, and the faster the business grows, the more they have to invest into inventory upfront. You have to pay for that inventory, it takes months to produce, and then you get it into a warehouse and then you start selling it to customers. And then your customers start paying you. So there could be a long amount of time from when you need to outlay that cash to produce the inventory until you're able to recoup that revenue and put it into the next production run. So as businesses grow, they encounter this cash flow pinch, and Kickfurther solves that pinch. We have developed a marketplace on kickfurther.com, where we will vet companies and structure deals. And then a community of users will come to those deals and participate in purchasing the inventory for that business. The business will then produce the inventory, sell it, and pay back Kickfurther and the users who participated in the deal; we'll make some money and get to do it all over again.Stephanie:Yeah. Very cool. It reminded me of, I saw quite a few real estate investment platforms like this too, where you get the fund, the next three or whatever it may be. So it seems like they're popping up in different ways to have a Kickstarter approach, but also getting people in the market who have the funds to be able to fund this inventory or investments or whatever it may be. So is that the main way that Kickfurther is different, where it's sourcing investment from the community instead of traditional lenders or actual investors?David:Yeah. So I mean, what we're doing is using the power of crowds rather than financial institutions. There's a lot of solutions out there that take money. They borrow money from banks and other financial institutions, and then present it to businesses and take a cut. And what we're doing is creating that opportunity for any individual on the internet, somebody who has money sitting in their bank account, and they want to use that money to make money by participating in a purchase of inventory for a consumer goods business. And so what we do is, it's not a loan. It's not an investment, it's actually a consignment agreement. So what we're doing is purchasing inventory for a business and consigning it to them to sell on our behalf. And as the business sells that inventory, then that triggers the consignment, and then we invoice them for it and they buy it back plus their cost of funding.Stephanie:Got it. Okay. So how do you make sure that you're bringing on companies onto your platform that won't make you nervous, where it's like, are you actually going to sell all this inventory? Because I'm not trying to cover that cost.David:Yeah. Well, there's a pretty thorough diligence process that we go through for every business that goes on the platform. We evaluate everything from their revenues to their supply chain, to how they distribute that product. And it's all verified through documentation. So it's not like anybody can come to us and say, Hey, we need money," and then just go up on the platform. There's a diligence process, just like there would be going to a bank or any other financial institution. I would say our uniqueness is we look at supply chain and distribution, and we assess risk in a very specific way. It's different from a bank. So some of our customers, everybody wants to go to a bank. Bank money is the cheapest. You want to go to a bank and get a line of credit and fund your business that way.David:However, if you're a small business, whether you're a restaurant or a clothing store, the bank looks at you the same. They say, how long have you been in business? Are you profitable? How much have you sold? Whereas we're looking at a very specific sector of small businesses that are consumer goods, businesses with supply chains. And we understand the intricacies of that supply chain and then how they get that product to their warehouse, get that product from the warehouse to the customers, and collect that money through their distribution channels. And so we use that information to determine who has access to capital on Kickfurther.Stephanie:Got it. Yeah, what's cool is that you guys are acting as like the trusted source, so that the community doesn't have to do as much due diligence, or I don't know if they do any at all, but you're acting as like the mediator, to be like, "We've done all the research. We know this company, and it's for the most part trustworthy," and then people can come in and fund that based off of your research and due diligence.David:We do verify all the information that's presented about the company. The individuals still do decide which deals they participate in. And that's based on what they read in the public profile. Some of them will go investigate more. Some of them will actually ask questions on the platform. So you have the ability as a participant to ask the owner or CEO questions before you participate, or during the deal, about distribution or how they're making products, or what if they're worried about competition? Any topic is welcome. There's a lot of additional diligence that an individual can conduct before they make the decision to participate.Stephanie:Cool. And is there a risk rating of, okay, this company is more of a startup one, this is going to be their first time raising money here; we're going to give them a risk rating of this? so maybe you have a higher payoff because of that if they end up selling all the inventory, or how do you guys think about the risk-based approach when it comes to getting investment?David:It's not as simple as just boiling it down to a one to 10 scale or something like that. But there's a lot of categories which each one of the customers that we fund will be shown in. And so you can look at how many years in business, what their revenue range is, how many different wholesale buyers they have, how many times they've gone through the supply chain and produced with their supplier. So there's a number of different elements that, that are categorized in terms of risk.Stephanie:Got it, cool. And what is the average return for someone? If I were to go in there and invest right now in a deal, is there an average range of what you make over one year or that a longer time horizon?David:So the deals range in duration from two to 10 months. So the way we compare deals is on a profit per month basis, and businesses will offer anywhere from one to two percent per month. And so you can annualize that in a way where, if you participate in a deal and then that money comes back to you, then you can redeploy it into another deal. And if you continue doing that, let's say 1.5% a month will translate to about 18% per year.Stephanie:Got it, cool. So what kind of struggles do you see ecommerce brands having right now when it comes to ... Obviously not having money to fund inventory is the high level problem, but maybe what kind of sticky situations do you see brands getting in by either waiting too long to get funding or not even thinking about it. What are some stories that you have around the whole inventory funding?David:Yeah, I think the biggest thing to do is to be proactive and understand what solutions are out there and how to use them before that need comes around. Because being desperate is the worst time to be looking. And if you've run out of inventory as a business owner, you're missing out on opportunities to sell. So like you could have a really successful Q4, and then you get to Q1 and people still want to buy your stuff, but you're all out. And then you placed an order with your supplier, and the supplier takes two months to produce. And then maybe you're in a position where you have to air freight instead of going on the water and you have to pay a lot more money to get it there faster. So there's all sorts of obstacles that come into play. And that's ecommerce.David:A lot of the businesses that we work with are multi-channel sales. So they're selling ecommerce and then they're selling to target or Best Buy or REI. And those companies will place orders, if you don't deliver those orders when you say you will, then you're probably going to lose that opportunity or at least jeopardize it in the future. So it's important to make sure that you have the inventory ready when you're going to need it. And you also don't want to have way too much. So if you buy a lot, and then you don't sell at the rate that you expected, you have a lot of cash sitting in the form of inventory in your warehouse. Sometimes it's going to go bad, if it's a crude product or it's just cash that you want to spend on advertising to sell the product, but you can't because you don't have it.Stephanie:Cool. So if I'm a new brand and I'm looking to crowdfund my inventory, what are some best practices that attract the investors in the crowd? What kind of things do you see connecting with people? How would I write up a good post right now to attract funding for someone to help with my inventory?David:The most important things are that you've done it before. So we don't work with businesses that are doing their first production run. We did in our very early days, and, as you can imagine, it's much higher risk. So we only work with businesses that have at least $150,000 in sales. And once they've demonstrated that, it's good to talk about how you work with your suppliers, what sort of things you do to ensure that you're going to receive the product that you want to receive within the timeframe that you plan on receiving it. So being conservative with time estimates, making sure that you have testing in place so that once your supplier says the product is ready, that somebody goes in and looks at it and you don't get a bunch of broken stuff.David:And then once it arrives, it's important that you have reliable distribution. People want to see good reviews. People want to see lots of reviews. And I would say, if there's somebody who's selling to a wholesale customer and they just have one customer who is placing large orders, that's pretty high risk. Because if that customer decides they don't want to buy anymore, who are they going to sell that product to? So those are the kinds of things that users on Kickfurther are taking a look at, reading through the profile, to decide if they're going to participate. One thing I will say that we haven't touched on is how fast these deals fund. So it's good for us at this point. It means that there's an imbalance in the marketplace in our favor. So the deal flow that we put up gets funded oftentimes in minutes.Stephanie:Yeah, I know. I noticed that, because I'm like, "Hmm, maybe let's see if I should investigate these deals." And I think it looked like everything was sold out, or it was all met to the limit. At least the two I was looking at. And it seemed like it happened really quick, where I'm like, "Hmm, this is competitive."David:Yeah. It's super competitive. So we have the ability to scale our deal flow pretty substantially without having a concern for deals funding fast enough. And as a user, if you're thinking about participating, you're going to get emails, you got to act on it fast. And so we put deals up. They have about 24 hours before they launch. And they always launch at 5:00 PM Eastern Standard Time. And if that, there's hundreds of people that are clicking, trying to get into deals like within a minute or two of 5:00 PM, when they usually fill up.Stephanie:Wild. I think you need more deals then for people to get in on.David:Yep. That's my job. I've been working hard on it. So we we've grown quite a bit. We have aggressive growth goals for 2021, and so far we're on track. It's early, but it's an exciting time to be at Kickfurther.Stephanie:That's great. So what brands are you trying to get on the platform right now? Who are you trying to convince to get on there?David:There's a lot of repeat customers, and we have really good retention. We average over four deals per customer, but they're all across the board. We're pretty product agnostic. We serve anybody who either buys or makes physical goods and then sells them with the exception of regulated things like alcohol, tobacco, firearms, THC, anything that's temperature controlled or perishable. Because of the consignment agreement nature of the contract, the inventory is our collateral in these deals. So we don't want it to go bad. And we want to make sure that it is available to anybody who participated in the consignment, they have to be able to purchase it.Stephanie:Yep. Oh, got it. So if the inventory doesn't sell out, you guys essentially have it in a warehouse, and me as an investor could be like, "I want one of those t-shirts then." Is that how to think about it?David:Yes, that is a way to think about it. So if the business is unable to sell the inventory, and they're unable to pay back Kickfurther and their users for the cost of it, then Kickfurther, based on our contract, will require a delivery of that inventory to us, at which point we'll attempt to sell it, and all the proceeds of that resale goes to the participants in that agreement.Stephanie:Have you had to do that yet?David:We have had to do that. We've been around for seven years. So it's happened, but these days it's very infrequent, and that's why these deals fund so fast as people who are participating on Kickfurther have great returns and they tell their friends about it and they the deals. So the performance, overall, is strong.Stephanie:Yeah, got it. So when I'm thinking about, as a business myself, getting credit and working with banks, you're building up your business credit worthiness. When you get traditional loans, I know we had to take on a couple of last year and it does help being like, "Oh yeah, we took on this size loan, we paid it off." How do you view crowdfunding in that kind of sense? Is it building up a business's credit worthiness or is it so siloed still at this point that it doesn't actually build up the financial view of the businessDavid:In some ways, it does, and in some ways it doesn't. It isn't considered debt to them. So it doesn't operate the same as taking out a loan and paying it back. But there's a lot of transactions that still occur that show the business is selling and making money. So their business credit will improve as a result of that. But yeah, it's kind of a mixed situation.Stephanie:Yeah, yeah. That seems tricky. Because it seems like a really good avenue to not only help the businesses, but then also bring in a lot more players. It seems like it's much more decentralized, which is great. The whole world's moving in that way, but if you can't really use it, be like, "Oh, look at these three different loans I have right now, the market funded them." I feel like the world needs to move to that place, the more of that crowdfunding and the decentralized approach is coming to the forefront.David:Well, the world is moving in that direction, but what's really cool is Kickfurther moves in that direction with the clients themselves. So as we establish a relationship with a business and they come back for repeat deals, we increase their limits substantially. And they have access to lower rates. Basically, they're earning credibility with this community. So let's say they offer one and a half percent per month on their first deal and they complete on time, and then they come back, they can offer less. It's really in the hands of the business owner what they want to offer, and the community, the marketplace, will decided if that business has earned that rate and are able to fund it at a lower cost. So as a customer at Kickfurther, as your revenues grow, you'll be able to take on more funding with Kickfurther, buy more inventory, and do it at a lower cost.Stephanie:Got it, okay. So you're building up that credit worthiness, just in a different hub, but you're doing that by just performing well and, yeah, that makes more sense.David:We will work with businesses who are starting at 150,000 in annual sales, and all the way up to 30 million. So there's quite a range of growth in service by Kickfurther. There's businesses that, once they reach a certain stage, either they're not accelerating as much as they used to and they have the cash flows to fund their own inventory and continue producing, or there's other businesses that have been long and around long enough where they are now exciting to banks and other financial institutions that have very low cost lending.Stephanie:Yep. Is there any guidance or any point where you're like, "Oh, you should probably just reinvest revenue or profits instead of getting a loan." Do you ever give guidance on that? Because I could see a lot of businesses always being like, "Oh, at such a low rate, why don't I get loans?" But then quite a few businesses have a lot of cash on their balance sheet too, and they don't know how to fully deploy it, but they're just so used to getting low interest loans. Is there any point where you've actually advised a company like, "You guys are good. Maybe you should reinvest profits." Or do you even see it from that angle?David:I don't think anybody's coming to us if they don't want additional capital. And I am always very transparent with everybody, and [inaudible] make sure you know, what your options are. We don't make money off convincing you to do one deal. We want that long-term engagement [inaudible] coming back. But I think the reason people come to Kickfurther is they have an opportunity with a buyer, or sales are growing so fast and in a channel where they want to launch a new product, they just don't have the cash to be able to do that. And that's why they're looking for funding solutions. And maybe they go to their equity investor and they say, "Hey, I need some additional capital to be able to take advantage of this opportunity." And the VC says, "You know what, why don't you seek some non-dilutive capital for that? That's a much better use of, why give up five or 10% of your ownership just so you can produce the next run when you're going to have to do another one and another one and another one after that?"Stephanie:Yep, yeah. That makes sense. So, since you're deep in the crowdfunding space, I'm sure you just see opportunities all around. So much stuff could be crowd crowdfunded. Where do you see that world headed? What kind of new opportunities do you see popping up in that space? Or what do you think is missing right now, where crowd funding could be meeting a need?David:I think there's a lot of money and power in crowds. And there's the ability to cut out middlemen and big entities that have been around for a long time and empower individuals to help these business owners grow. It's also not just the money that's coming from them. Why are people deciding to participate in these deals? A lot of them believe that they have an advantage and they have the knowledge in the space. So maybe they want to help the business owner. I've had plenty of users come to me and say, "Hey, I actually work in this space. And I have a couple of distribution opportunities that I'd like to connect with your client about." And I'll make a direct introduction, and all of a sudden they acquire a new sales channel. Or somebody who's got a lot of money and they want to do a side deal. Yeah, I am looking for equity investors, let me connect these two people.David:So those kinds of things happen rather frequently. And that's not going to happen when you're working with a sales rep at a bank. Because everything's coming from the bank's bank account. And actually the money that the bank is using is just coming from account holders and their deposits. So if you're storing money in a bank, the bank is using that money to lend to businesses and whoever else. So we're cutting that out of the mix. And I think it's good for everybody involved.Stephanie:Yeah, I think it's a good reminder too, about diversifying investments and why finding opportunities. Yeah, you don't want to just keep your money in a bank and let inflation just wither it away to nothing. So, yeah. It's cool to hear about opportunities like this that are very different, but will definitely help diversify your portfolio.David:Yeah. And it's really fun, from our standpoint, to work with all these young business owners. I mean like the business is young, not the individuals per se, but some of them just started a few months ago and they've had some real success. Some of them, it's a family business that's been around for a couple of generations, and all of a sudden they're discovering that ecommerce is a way to skyrocket the business. They have a really good product; they just haven't put it in front of the right audience. And they're figuring out how to make this happen financially, and we're there to help them. And it's just really great to be side by side with them as a partner and see that growth.Stephanie:Yep. Yeah. It seems like there's also could be a lot of international opportunities. I know that's a lot more risky once you start going that route and finding people who are doing much smaller scale ventures and being able to help back that, then turn into a bigger thing. But I have read a few stories of finding people doing amazing things in other countries, but they just don't have any kind of funding. Or they can't buy inventory for even 10 things to sell. And yeah, it seems like there's a lot of opportunity around the world, but of course it'd be much more risky trying to vet those projects and companies.David:It is definitely a challenge. It's something that we're considering doing down the road. You probably start with Canada and some EU companies, but there's different regulations in different countries. And also, if we get into a bad situation with a client, we have to pursue them legally. So working in a foreign legal system is very costly, and we try to help businesses out, and so our margins are pretty slim. So being able to afford that kind of activity is probably a ways down the road for us.Stephanie:Yeah. So what are you guys looking forward to for the next, maybe, two to three years? What are you planning for? You said you were going to be growing really quickly this year. What kind of things are you putting in place right now and where do you want to be in the next couple of years with Kickfurther?David:I'd say we want to be a household name for inventory funding. A lot of people are starting their own businesses. And we want to create an opportunity for them to grow at the rate that they're able to grow and have access to capital. And so our goal is to put our name out there in a way where it becomes recognizable to all business owners who are in the right space for us.Stephanie:Yep. Very cool. Yeah, Amazon be a good space, but then sometimes those one-off products that are being sourced and sold on there. So maybe that's not the best space. I'm not sureDavid:Those people are business owners and growing too. So if you have one product that's selling really well, and that's what you want to focus on, sure, that's great.Stephanie:Cool. All right. Well, let's shift over to the lightning round. The lightning round is brought to you by Salesforce Commerce Cloud. This is where I'm going to ask you a question and you have a minute or less to answer. Are you ready, David?David:I'm ready.Stephanie:All right. What one thing will have the biggest impact on ecommerce in the next year?David:Probably the state of the world. So the ability that people have to shop and travel and continue to live their lives the way they did before lockdowns and quarantine.Stephanie:Yep. All right, cool. If you had a podcast, what would it be about, and who would your first guest be?David:I don't think I would have a podcast.Stephanie:What would you have then, a clubhouse? What would you have then?David:A clubhouse. I think that, honestly, I was a little bit foreign to this whole world of supply chain and inventory finance when it came to Kickfurther, and I've discovered a passion for helping these business owners. So I think the clubhouse that I would have would be one where business owners get together and talk about different solutions that help their business grow, and what vendors they use and what are best practices, just an exchange of information across business owners and vendors.Stephanie:I like that, because yeah, I think even thinking about, "What manufacturer should I use? And how do I even source those people?" Still always feels like a black box and it's referrals. Or you have to know someone and that'd be a good one.David:We make quite an effort to make those resources available to our customers. So, as we go through our diligence process, we cover a lot of topics, and oftentimes customers will identify pain points, and we will say, "If you're interested in these, this is a partner of ours, or we've got a few different options or people you can talk to, to learn more about the solutions in this space."Stephanie:Yep. Cool. What's up next on your reading list?David:Can't Hurt Me by David Goggins.Stephanie:Okay. Nice. Where are you traveling to next when it's easier to travel again?David:In two weeks, I'm traveling to Salt Lake City to go skiing, but that's a drive for me.Stephanie:Yeah.David:Big skier. And whenever the snow comes, I'm out there.Stephanie:I love that. All right. And then the last one, what is your favorite piece of tech that you're using right now? It can be personally or with the business.David:Don't hate me, but it's my iPhone 12 Pro.Stephanie:What's to hate? I have the same thing. It's my favorite. It has the best cameraDavid:I bought it for the camera, but it's really fast. It's a computer in my pocket that does pretty much everything my actual computer does.Stephanie:Yeah.David:Super valuable piece of tech.Stephanie:Yep. I agree. All right, David, thanks so much for joining the show. Where can people find out more about you and Kickfurther?David:Kickfurther.com is the best place. You can find me on LinkedIn, David Koifman, and I look forward to connecting with anybody who's interested. Also, if you're a business owner listening and you're interested in funding with us, you can go to our website, fill out an application, or you can just email me david@kickfurther.com.Stephanie:Yeah.David:Thanks so much, Stephanie.Stephanie:Cool.David:It's good to be on here.Stephanie:Yeah, thanks, David. All right. See you.David:Take care.
02:15 - David’s Superpower: Being Confused * Norms of Excellence (https://notebook.drmaciver.com/posts/2020-05-31-09:20.html) * The Inner Game of Tennis: The Classic Guide to the Mental Side of Peak Performance (https://www.amazon.com/Inner-Game-Tennis-Classic-Performance/dp/0679778314) 11:56 - Daily Writing * David’s Newsletter: Overthinking Everything (https://drmaciver.substack.com/) * Unfuck Your Habitat (https://www.unfuckyourhabitat.com/) 15:47 - Learning to Be Better at Emotions 23:22 - Achievement and Joy as Aspirational Goals * [Homeostasis vs Homeorhesis](https://wikidiff.com/homeostasis/homeorhesis#:~:text=is%20that%20homeostasis%20is%20(physiology,to%20a%20trajectory%2C%20as%20opposed) * Aspiration: The Agency of Becoming by Agnes Callard (https://www.amazon.com/Aspiration-Agency-Becoming-Agnes-Callard/dp/0190639482) * Seeing like a State: How Certain Schemes to Improve the Human Condition Have Failed by James C. Scott (https://www.amazon.com/Seeing-like-State-Certain-Condition/dp/0300078153/ref=sr_1_2?crid=HEYGC212F6SG&dchild=1&keywords=seeing+like+a+state+by+james+c+scott&qid=1613057768&s=books&sprefix=seeing+like+a+state%2Cstripbooks%2C164&sr=1-2) * Philosophical Investigations by Ludwig Wittgenstein (https://www.amazon.com/Philosophical-Investigations-Ludwig-Wittgenstein/dp/1405159286/ref=sr_1_1?crid=1JRUU030WBCWQ&dchild=1&keywords=philosophical+investigations&qid=1613058025&s=books&sprefix=philos%2Cstripbooks%2C209&sr=1-1) Reflections: Jessica: Trying not knowing yourself. Rein: You shouldn’t be the owner of all your desires. Instead, you should measure your life by how well you follow the intentions that arise out of your values. Jacob: Thinking of yourself as the sum of all of the habits you maintain or don’t. David: The [Homeostasis vs Homeorhesis](https://wikidiff.com/homeostasis/homeorhesis#:~:text=is%20that%20homeostasis%20is%20(physiology,to%20a%20trajectory%2C%20as%20opposed) distinction, and cleaning a home as an ongoing process. This episode was brought to you by @therubyrep (https://twitter.com/therubyrep) of DevReps, LLC (http://www.devreps.com/). To pledge your support and to join our awesome Slack community, visit patreon.com/greaterthancode (https://www.patreon.com/greaterthancode) To make a one-time donation so that we can continue to bring you more content and transcripts like this, please do so at paypal.me/devreps (https://www.paypal.me/devreps). You will also get an invitation to our Slack community this way as well. Transcript: SPONSORED AD: Whether you're working on a personal project or managing enterprise infrastructure, you deserve simple, affordable, and accessible cloud computing solutions that allow you to take your project to the next level. Simplify your cloud infrastructure with Linode's Linux virtual machines and develop, deploy, and scale your modern applications faster and easier. Get started on Linode today with $100 in free credit for listeners of Greater Than Code. You can find all the details at linode.com/greaterthancode. Linode has 11 global data centers and provides 24/7/365 human support with no tiers or hand-offs regardless of your plan size. In addition to shared and dedicated compute instances, you can use your $100 in credit on S3-compatible object storage, Managed Kubernetes, and more. Visit linode.com/greaterthancode and click on the "Create Free Account" button to get started. JACOB: Hello and welcome to Greater Than Code, Episode 223. My name is Jacob Stoebel and I'm joined with my co-host, Rein Henrichs. REIN: Thanks, Jacob and I'm here with my friend and also stranger because we haven't done this together in months, Jessica Kerr. JESSICA: Thank you, Rein! And Iím really excited today because our guest is David MacIver. Twitter handle, @DRMacIver. David MacIver is best known as the developer of Hypothesis, the property-based testing library for Python, and is currently doing a Ph.D. based on some of that work. But he also writes extensively about emotions, life, and society and sometimes coaches people on an eclectic mix of software development, intellectual, and emotional skills. As you can probably tell, David hasn't entirely decided what he wants to do when he grows u and that's the best because if you had decided well, then so few possibilities would be open. David, hello! DAVID: Hi, Jessica! Great to be here. JESSICA: All right. I'm going to ask the obligatory question. What is your superpower and how did you acquire it? DAVID: So as you saw me complaining about on Twitter, this question doesn't translate very well outside of the United States. JESSICA: Yeah, which is fascinating for me. DAVID: I'm a bit too British to say nice things about myself without sounding like I'm being self-deprecating. JESSICA: Self-depreciating it is! DAVID: [laughs] So I thought about this one for a while and I decided that the answer is that I'm really good at being confused and in particular, I have a much more productive response to being confused than it seems like most people do because basically, the world is super confusing and I think I never know what's going on, but then I notice that I know what's going on and I look at it and I'm just like, ìHmm, this is weird, right?î And then I read a book about it, or I sort of poke at it a bit and then I'm not less confused, but I'm less confused about that like, one little facet of the world and have found ten new things to be confused about. [laughter] JESSICA: Nice. DAVID: Usually, I can then turn this into being slightly better at the thing I was previously confused about, or writing about it and making everyone else differently confused than they started with. JESSICA: Definitely confused. That is a win. That's called learning. DAVID: Yeah, exactly. [laughter] This is where a lot of the writing you were talking about comes from and essentially, about 2 years ago, I just started turning these skills less on software development and more just going like, ìLife, it doesn't make sense, right?î [laughter] And noticing a whole bunch of things, I needed to work on and then that a lot of these were shared common problems. So I am, if anything, far more confused about all of it than I was 2 years ago, but I'm less confused about the things I was confused about that and seem to be gradually becoming a more functional human being as a result of the process. So yay, confusion. JESSICA: That superpower, the productive response to confusion, ties in with your reaction to the superpower question in general, which is as Americans, we're supposed to be ñ we want to have power. We want to be special. We want to be unique. We want to make our unique contribution to the world! And as part of that, we're not comfortable being confused because we need to know things! We need to be smart! We need to convey strength and competence and be the best! I hate the superlatives. [laughter] I hate the implied competition there, but instead, we could open our hearts to our own confusion and embrace that. Be comfortable being uncomfortable. DAVID: One of the things that often comes up for me is it's a thing that I think is slightly intentioned with this American tendency youíre pointing at, which is that I kind of want to be the best, but I don't really want to be better than other people. I just want to be better than I am now. I wrote a post a while ago about neuromas of excellence like, what would a community look like, which helped everyone be the best version of themselves and one of the top lists was basically that everyone has to be comfortable with not being good at things, but another is just that you have to not want to be better to the other people. You just need want to be better. Again, this is where a lot of the writing comes from. I've just gone, ìWell, this was helpful to me. It's probably helpful to other people.î That's not as sense of wanting to change the world and wanting to put my own stamp on things and it does require a certain amount to self-importance to go, ìYes, my writing is important and other people will like to read it,î but then other people like to read it so, that's fine and if they don't, that's fine, too. JESSICA: Well, you didn't make anyone read it, but you did start a newsletter and let people read it. JACOB: Is this weird thinking reflect a journey that you took in your life? Because I think about my company and my team and how incredibly generous everybody is and even still, I just find it's natural to compare myself to everyone else and needing to not be on the bottom. Part of me wonders if that's just like a natural human tendency, but just because it's natural doesn't make it so. JESSICA: Way natural American. JACOB: Yeah, basically I'm asking how do I stop doing that? [laughter] DAVID: It's definitely not something I've always been perfectly good at. But I think the thing that helped me figure out how to do this was essentially being simultaneously at the bottom of the social rung, but also super arrogant. So it's your classic nerd kit thing, right? It's completely failing at people, but also going, ìBut I'm better than all of you because I'm smart,î and then essentially, gradually having the rough edges filed off the second part and realizing how much I had to learn off the first part. I think sometimes my attitude is due to a lot of this is basically, to imagine I was a time traveler and basically going back in time and telling little David all the things that it was really frustrating that nobody could explain to me and I sadly haven't yet managed to perfect my time machine, but I can still pay it forward. If nobody was able to explain this to me and I'm able to explain it to other people, then surely, the world is a better place with me freely handing out this information. I don't think it's possible, or even entirely desirable to completely eliminate the comparing yourself to others and in fact, I'd go as far as to say, comparing yourself to others is good, but I think theÖ JESSICA: Itís how do we have a productive response to compare ourselves to others? DAVID: Yeah, absolutely. There's a great section in The Inner Game of Tennis, which is a book that I have very mixed feelings about, but it has some great bits where he talks about competition. If you think of a mountain climber, a mountain climber is basically pitting themselves against the mountain, right? They're trying to climb the mountain because it is hard and you could absolutely take a helicopter to the top of the mountain, but that wouldn't be the point. It's you're improving yourself by trying a hard thing. I mean, you're improving yourself in the sense that you're getting better at climbing mountains. You might not be improving yourself in any sort of fully generalizable way. JESSICA: Okay. [laughter] DAVID: When you are playing tennisóbecause this is a book about tennisóyou are engaged in competition with each other and you're each trying to be better than the other. In this context, essentially, what you are doing is you are being the mountain for each other. So you are creating the obstacles that the other people overcome and improve themselves that way and in doing this, you're not just being a dick about it. You're not doing this in order to crush them. You're doing this in order to provide them with the challenge that lets them grow. When you think about it this way, other people being better than you is great because there's this mountain there and you can climb it and by climbing the mountain, you can improve yourself. The thing that stops everyone becoming great is feeling threatened by the being better rather than treating it as an opportunity for learning. JESSICA: Yeah, trying to dynamite the mountain instead of climbing it. Whereas, when you are the mountain for someone else, you can also provide them footholds. Rein, do you have an example of this? REIN: I sure do, Jess. Thanks for asking. So I was just [laughs] thinking while you were talking about this, about the speed running and speed running communities. Because speed running is about testing yourself against a video game, which in this case, serves the purpose of the mountain, but it's also about competing against other speed runners. If it was purely competitive, you wouldn't see the behaviors, the reciprocity in the communities like sharing speed running strats, being really happy when other people break your record. I think it's really interesting that that community is both competitive, but there's also a lot of reciprocity, a lot of sharing. JACOB: And it's like the way the science community should work. It's like, ìOh, you made this new discovery because of this discovery I shared with you and now I'm proud that my discovery is this foundation for all these other little things that now people can be by themselves in 10 seconds instead of 30.î JESSICA: Yeah. Give other people a head start on the confusion you've already had so that they can start resolving new confusions. DAVID: Yeah, absolutely. Definitely one of my hopes with all of this writing is to encourage other people to do it themselves. Earlier this year, I was getting people very into daily writing practices and just trying to get people to write as much as possible. I now think that was slightly a mistake because I think daily writing is a great thing to do for about a month and then it just gets too much. So I will probably see if I can figure out other ways of encouraging people to notice their confusion, as you say, and share what they've learned from edge. But sadly, can't quite get into do it daily. JESSICA: This morningís newsletter you talked about. Okay, okay, I can do daily writing, but now I want to get better at writing. I've got to go do something I'm worse at. DAVID: Yeah, absolutely. I think daily writing is still a really good transitional stage for most people. To give them more context for this newsletter for people listening. Basically, most of my writing to date, I just write in a 1- or 2-hour sitting from start to finish. I don't really edit it. I just click publish and I've gotten very good at writing like that. I think that most people are ñ I mean, sometimes it's a bit obvious that I haven't edited it because they're obvious typos and the like. But by and large, I think it is a reasonably high standard of writing and I'm not embarrassed to be putting it out in that quality, but the fact that I'm not editing is just starting to be sort of the limiter on growth for me. It's never going to really get better than it currently is. It's certainly not going to allow me to tackle larger projects that I can currently tackle without that editing skill. JESSICA: [laughs] I just pictured you trying to sit down and write a book in one session. [laughter] And then you'd be tired. DAVID: Yeah. I've tried to doing that with papers even and it doesn't really work. I mean, I do edit papers, but Iím very visibly really bad at editing papers and it's one of my weaknesses as a academic is that I still haven't really got the hang of paper writing. JESSICA: Do you edit other people's papers? DAVID: I don't edit other people's papers, but I provide feedback on other people's writing and say, ìThis is what worked for me. This is what didn't work for me. Here are some typos you made.î It's not reading as providing good feedback on things, that is the difficult part of editing for me. It is much more ñ honestly, it's an emotional problem more than anything else. It's not really that I'm bad at editing at a technical level. I'm okay at editing at a technical level. I just hate doing it. [laughs] JESSICA: That is most problems we have, right? DAVID: Yeah. JESSICA: In the end, itís an emotional problem. DAVID: Yeah, absolutely. I think that is definitely one of the interesting things I've been figuring out in my last 2 years of working on learning more about emotions and the various skills around them is just going, ìOh, right. It's not this abstract thing where you are learning to be better at emotions and then nothing will change in your life because you're just going to be happier about everything.î I mean, some people do approach it that way, but for me, it's very much been, ìOh, I'm learning to be good at emotions because this really concrete problem that I don't understand, it turns out that that's just feelings.î [laughter] It's like, for example, the literature on how to have a clean home, turns out that's mostly anxiety management and guilt management. It's like fundamentally cleaning your home is not a hard problem. Not procrastinating on cleaning your home is a hard problem. Not feeling intensely guilty and aversive about the dirty dishes in the sink and is putting them off for a week. I don't do that. But just as a hypothetical example. [laughter] I mean, not a hypothetical example, I think a specific example that comes from the book, Unfuck Your Habitat, which is a great example of essentially, it's a book that's about it contains tips, like fill the spray bottle with water and white vinegar and also, tips about how to manage your time and how to deal with the fact that you're mostly not cleaning because of shame, that sort of thing. Writing books are another great example where 80% about managing the feelings associated with writing; it turns out practical problems pretty much all come down to emotionsóat least practical life problems. REIN: Sorry, I was just buying Unfuck Your Habitat real quick. [laughter] DAVID: It's a good book. I recommend it. JESSICA: Our internal like emotional habitat and our external habitat are very linked. You said something earlier about learning to be at emotions is not just you're magically happier at other things in your life change. DAVID: Yes. I mean, I think there are a couple of ways in which it manifests. One of them is just that emotions often are the internal force that maintains our life habits. It's you live in a particular way because moving outside of those trained habits is scary or aversive in some way. Like the cleaning example of how, if your home is a mess, it's not necessarily because you don't know how to make your home not a mess. Although, cleaning is a much harder skill than most people treat it as speaking as someone who is bad at the practical skills of cleaning, as well as the emotional side of cleaning. But primarily, if it were just a matter of scale, you could just do it and get better at it, right? The thing that is holding you in place is the emotional reaction to the idea of changing your habits. So the specific reason why I started on all of this process was essentially relationship stuff. I'd started a new major relationship. My previous one hadn't gone so well for reasons that were somewhere between emotional and communication issues, for the same reason basically every relationship doesn't go so well, if it doesn't go so ñ Oh, that's not quite true. Like there are actual ñ JESSICA: Some people have actual problems. [chuckles] But these things are. I mean, our emotions really, as sometimes we treat them as if they're flaws. As if our emotions are getting in our way is some sort of judgment about us as not being good people, but no, it just makes us people. DAVID: For sure. JESSICA: So you started on this journey because of the external motivation of helping someone you're in a relationship with, because it's really hard to do these things just for ourselves. DAVID: It is incredibly hard to do things just for ourselves. I guess, that is exactly an example of this problem, right? It's that there is a particular habit of life that I was in and what I needed to break out of that habit of life was the skills for dealing with it and then figuring out these emotional reactions. But unfortunately, the thing that the habits were maintaining, it was me not having the skills and so having the external prompts of a problem that was in the world rather than in my life, as it was, was what was needed to essentially kick me out of that. Fortunately, it turns out that my standard approach of reading a thousand books now was one that worked for me, in this case. I probably haven't read a thousand books on this, but that certainly worked. JESSICA: It wouldnít surprise me. [laughs] DAVID: I read fewer books than people think I do. I may well have read more than a hundred books about emotions and therapy and the like. But I probably haven't, unless I cast that brush really broadly, because I mean, everything's a book about emotions and therapy, if you look at your right. REIN: Have you read any books by average Virginia Satir? [laughter] DAVID: I don't know who that is, I'm afraid. JACOB: Drink! REIN: Excellent! Excellent news. [laughter] JESSICA: Itís about Virginia Satir, right? REIN: Virginia was a family therapist who wrote a lot about processing emotions and I have been a huge fan of her work and it's made a huge difference in my life and my career. So I highly recommend it. DAVID: Okay. I will definitely hear recommendations on books. What's the book title, or what's your favorite book title by? REIN: I think I would start with The Satir Model, which is S-A-T-I-R M-O-D-E-L. The Satir Model, which is about her family therapy model. JESSICA: Chances are good, you've read books based on her work. I was reading Gerry Weinberg's Quality Software Management: Volume Two the other day, which is entirely based on The Satir Model. REIN: Yeah. He was a student of hers. One of the things that she likes to say is that the problem is never the problem, how we cope is the problem. JESSICA: Can we have a productive response to the problem? DAVID: Yeah, that absolutely makes sense. I think often, the problem is also the problem. [laughter] JESSICA: It's often self-sustaining like the habits you're talking about. Our life habits form a self-sustaining system and then it took that external stimulus. It's not like an external stimulus somehow kicked you in the butt and changed you, it let you change yourself. DAVID: Yes, absolutely. I guess what I mean is ñ so let's continue with the cleaning example. The problem is that your flat is messy and your flat is messy because of these life habits, because your emotional reactions to all these things. If you do the appropriate emotional work, you unblock yourself on shame and anxiety around a messy flat, and you look around and you've saw you've processed all these emotions. You fixed how you respond to the problem and it turns out your flat is still messy and you still have to clean it. I think emotional reactions are what either ñ Iím making it sound like emotional reactions are all negative and I really don't mean that. I mean, that way is just ñ JESSICA: Oh, right because once you've dealt with all that shame and the anxiety and stuff, and maybe you've picked up your flat some, and then you come in and you have groceries and you stop and you immediately put them away and you get a positive, emotional feeling from that as you're in the process of keeping your flat tidy. The emotions can reinforce a clean flat as well. DAVID: Yeah, absolutely. I think this is something that has always been one of my goals more than it is what am I active? JESSICA: No, I love this distinction that you're making here. Is it a goal or is it something I'm activelyÖ? The word goal is [inaudible]. DAVID: Yeah. So I think for me, one of the other problems, other than the relationships it starts, was me essentially realizing that my emotional experience, it wasn't bad. I mean, it wasn't great, but I wasn't actively miserable most of the time, but it also just didn't have very many positive features, which it turns out is also a form of depression. It's very easy to treat depression as just like you're incredibly sad all the time, but that doesn't have to what it can be like flatness is. So I think very much from early on in my mind was that the getting better at emotions wasn't just about not being anxious. It was also about experiencing things like joy, it was about being happier and I think having this as sort of an aspirational goal is very, very motivating in terms of a lot of this work and in terms of a lot of trying to understand all of this, because I think I don't want to be miserableóit only gets you so far. If you have a problem that you're trying to solve, and that turns out to be an emotional block, you have to actually wants to solve the problem. It's like, I think if you don't want to clean the flat, then it doesn't matter how much you sort of fix your anxiety around that. You're still just going to go, ìOkay. I'm no longer anxious about this messy flat. That's great,î and your flat is going to stay messy because you don't actually want it not to be and that's fine. JESSICA: Itís just fine, yeah. Who cares? Especially now. DAVID: Unless it becomes a health hazard, but yeah. [laughter] DAVID: Certainly like thereís ñ JESSICA: If you're affecting the neighboring flats with your roaches, thatís fine. DAVID: [laughs] Yeah. JESSICA: So you were talking about joy as an aspirational goal, but it's not the kind of goal where you check the box at the end of the year and declare yourself worthy of a 2% raise. DAVID: [laughs] No, absolutely not and I think for all big goals, really, I find that I want to be very clichÈ and say, it's the journey, not the destination. JESSICA: But it is! No, it totally is! DAVID: Yeah. JESSICA: See, the word goal really irks me because people often use it to mean something that you should actually reach. Like write every day per month, that's a goal that you find benefits from hitting, but feelings of joy are, as you said, aspirational. I call it a quest, personally. Some people call it a North Star. It is a direction that can help you make decisions that will move you in that direction, but if you ever get thereÖ No, that doesn't make sense. You wouldn't want to exist in a perpetual state of joy. That would also be flat. [laughs] DAVID: No, absolutely. And I think even with big but achievable goals, it still is still quite helpful to treat them in this way. So for one, quite close to my heart right now, a goal of doing a Ph.D. I think you've got a 3-, 4-year long project in the States, I think it's more like 5 or 6 and if you treat the Ph.D. as it's pass/fail, like either you get the Ph.D. or those 3 or 4 years have been wasted, then that's not very motivating and also will result in, I think, worst quality results in work. Like the thing to do is ñ JESSICA: Like anxiety, stress, and shame. DAVID: Yeah. Yeah, very much so. [chuckles] So just thinking in terms of there's this big goal that you're trying to achieve of the Ph.D., but the goal doesn't just define a pass/fail; it defines a direction. Like if you get better at paper writing in order to get your Ph.D., then even if you don't get your Ph.D., you got better at paper writing and that's good, too. JESSICA: Because the other outcome is the next version of you. DAVID: Yes, exactly. JESSICA: Itís about who does this aspirational goal prompt you to become? REIN: This reminds me of the difference between homeostasis and homeorhesis. Homeostasis is about maintaining a state; homeorhesis is about maintaining a trajectory DAVID: That makes sense. Yes, very much that distinction and also, one of the nice things about this focus on a trajectory is that even if a third of the way through the trajectory, you decide you don't want to maintain it anymore and actually you're fine where you are. This goal was a bad idea or you've got different priorities now, possibly because a global pandemic has arrived and has changed all of your priorities. Then you still come all that way. It's like the trajectory doesn't just disappear backwards in time because you're no longer going in that direction. You've still made all that progress. Youíve still got to drive some of the benefits from it. JESSICA: Yeah. There's another thing that maybe it's an American thing, or maybe it's wider than that of if it doesn't last forever, then it was never real, or if you don't achieve the stated goal, then all your effort was wasted. DAVID: Yeah. I don't think itís purely an American thing. It's hard to tell with how much American pop culture permeates everything and also, I shouldn't say that although I'm quite British, I am also half American. So Iím a weird third culture kid where my background doesn't quite make sense to anyone. But yeah, no, I very much feel that. This idea that permanence is required for importance and it's something that every time I sort of catch myself there, I'm just like, ìYeah, David, you're doing the thing again. Have you tried not doing the thing?î [chuckles] But it's hard. It's very internalized. JESSICA: If you clean your flat and a week later, it's dirty again. Well, it was clean for a week. That's not nothing. DAVID: Yeah. I do genuinely think that one of the emotions that people struggle with cleaning. Certainly, it is for me. JESSICA: Oh, because it's a process. It is not a destination. Nothing is ever clean! DAVID: Yeah. JACOB: I think of myself sometimes as I want to be the kind of person that always has a clean home, as opposed to, I like it when my house is clean. JESSICA: Yeah. Is it about you or is it about some real effect you want? JACOB: Yeah. Is it about like the story that that I imagine I could project if I could project on Instagram because I'm taking pictures of my pristine house all the time, or is it just like, I like to look around and see things where they belong? DAVID: Yeah. I'm curious, does this result in your home being clean? JACOB: No, it doesnít and thatís sort of the issue that I'm just realizing is it's not actually a powerful motivator because it's just not possible trying to imagine that I could maintain homeostasis about it. It's not a possible goal and so yeah, it's not going to happen. REIN: Yeah. The metaphor here is it changes motion, but it's always happening so it's more like the flow of time than motion through space. JESSICA: Itís not motion, too. REIN: Actually staying the same is very hard to do and very expensive. DAVID: Absolutely. JESSICA: No wonder it takes all of our feelings to help us achieve it. [chuckles] DAVID: So the reason I was asking by the way about whether this idea of being the sort of person who has a clean home is effective is that this ties in a little bit to what today's newsletter was about. There's this problem where when you have self-images that are constructed around being good at particular things, being bad at those things is very much, it's a shame trigger. It's essentially, you experienced the world as clashing with your conception of yourself and we get really good at not noticing those things. You see this a lot with procrastination, for example, where you are putting off doing a thing because it does force you to confront this sort of conflict between identity and reality. I think sometimes, the way out of it is just to identify less with the things that we want to achieve in the world and just try and go, ìI'm doing this because I want to and if I didn't want to, that would be fine, too.î Essentially, becoming fine with both an outcome and failing to achieve that outcome is often the best way to achieve the outcome. JESSICA: So practicing editing in order to practice editing, whether you achieve writing a book or not, whether you're good at it or not, and it does come back to the journey. If what you're doing is a means to an end and yet not in line with that end, it often backfires because the means are the end. In the end, they become it. So having a clean house is stupid. That's not a thing. Picking up is a thing. That's something you can do and what I am picking up. True fact! [laughs] You don't have to worry about whether you can, are you doing it? All right then, you can! Whereas, having a clean house is not a thing. DAVID: Very much. This kind of ties into the comments about books earlier, where you were talking about how many books I read, and one of the things that I think very much stops people from reading books is the idea that oh God, there are so many books to read, I'll never get through all of them. JESSICA: If I started, I have to finish it. DAVID: Oh, yeah. I mean, people definitely shouldn't do that; books are there to be abandoned if they're bad. JESSICA: I read a lot of chapter ones. DAVID: Yeah. I have a slightly bad habit of buying books speculatively because they seem good and as a result, I think my shelf of books that I'm probably never going to get around to read, but might do someday and might not and either is fine is probably like a hundred plus books now. JESSICA: I love that shelf. I have big piles everywhere. [laughs] There's always something to read wherever I sit and most of it, I will never read, but it's beautiful. DAVID: I'm currently in a very weird experience where I write, for possibly the first time in my life, I have more bookshelf space than books. JESSICA: Huh, that's not a stable state. DAVID: No, no. This will be fixed by the time I leave this flat. The piles will return. JESSICA: You will maintain the trajectory. DAVID: Yeah. [laughs] Because I'm just reading. I can read these as many books because I just sit down and read and at some point, I will finish a book or I will abandon the book and both are fine. But I think if you treat this as a goal where your goal is to read all the books, then that's not the thing and also, I think people go, ìMy goal is to read a hundred books a year,î or I don't know how normal people guesstimates are. JESSICA: Itís like, is it really or itís their goal to learn something. DAVID: Yeah, exactly. JESSICA: And the means is reading books. DAVID: Yeah. I think if one instead just goes, ìI like reading and it's useful so I'm going to read books,î you'll probably end up reading a lot more than setting some specific numerical goal. Also, you run into sort of Goodhart's law things where if your goal is to read a hundred books in a year, great buy the Mr. Men set. But wait, it's not a thing in ñ the Mr. Men are a series of kidsí books which tells ñ JESSICA: With the big smiley face? DAVID: Yeah. Exactly, that's the one. [laughter] You can read a hundred of those in a weekóI assume there are hundred Mr. Men books, I don't actually knowóand youíll probably learn something. JESSICA: Then again, you might choose Dynamics in Action, never get through it, and then feel bad about it, and that would be pointless because you learned more from the introduction than you did from the Mr. Men series. DAVID: I don't think I've even opened my copy of Dynamics in Action. I think you recommended on Twitter or something and I was just like, ìThat does sound interesting. I will speculatively buy this book.î JESSICA: It's a hard book. DAVID: Yeah. It's far from the hardest book on my shelves, but it's definitely in the top. I'm going to confidently say top 20, but it might be harder than that. I just haven't done a comparative analysis and I don't want to overpromise. [laughter] JESSICA: The point being read books because you want to know. DAVID: Yeah. JESSICA: Or sometimes because you want to have read them. That's the thing. There's a lot of things I may not want to pick up, but I do want to have picked up and I can use that to motivate me. DAVID: Yeah, and even then, there are two versions of that and both are good, actually. I think one of them sounds bad. One version is you want to have read it because you want to understand the material in it and the other one is just, you want to be able to say that you have read it and thus, you ñ and probably for the status game and also, just sort of as a box ticking, like I think ñ JESSICA: Oh, itís not completely wrong. DAVID: No, it's not completely wrong. JESSICA: You still get something out of it. DAVID: Yeah. JESSICA: On the other hand, if you want to read it because you want to be the kind of person who would read it. I don't know about that one. DAVID: Yeah, I agree. I thinkÖ JESSICA: Then again, life habits. Sometimes, if you want to be the kind of person who picks up and so you fake it long enough to form the habit, then you are. DAVID: Yeah, absolutely and I read a book recentlyóof course, I didóby Agnes Callard called Aspiration, which I'm glad I read it. I cannot really recommend it to people who aren't philosophers, because there's a thing that often happens with reading analytic philosophy, where the author clearly has a keen insight into an important problem that you, as the reader, lack and the way they express that insight is through an entire bookís worth of slightly pedantic arguments with other analytic philosophers who have wrong opinions about the subjects. JESSICA: Half of Dynamics in Action is like that. DAVID: Yeah, I think it very complicated. REIN: Was it written as a thesis? DAVID: I don't think so. I'm not certain about that, but it might've been. It ended up being quite an influential book and I think she was mentioning that there's going to be a special issue of a journal coming out to recently about essentially, its impact and responses to it. But I think it's just genuinely that analytic philosophers had a lot of really wrong opinions about this subject. So the relevance of this is the idea she introduces the book is that of a proleptic value where ñ JESSICA: Proleptic, more words. DAVID: Proleptic basically, I think originally comes from grammar and it means something that stands in place for another thing. A proleptic value is what you do when you're engaged in a process of aspiration, which is trying to acquire values that you don't currently have. So she uses the example of a music student who wants to learn to appreciate the genre of music that they do not currently appreciate and they find a teacher who does appreciate that genre and they basically use their respect for that teacher as a proleptic value. They basically say, ìI don't currently value this genre of music, but I trust your judgment and I value your opinion and I will use your feedback and that respect for you as a value that stands in place of the future value of appreciating this genre of music that I hope to acquire.î So I think this thing of reading a book because you want to be the sort of person who reads that kind of book can have a similar function where even though, you don't really wants to read the book, that process of aspiration gives you a hook into becoming the sort of person who does want to read the book. JESSICA: That's like being the mountain for each other. DAVID: Yeah. JESSICA: In some ways. You're not going to get a view yet. You're only 10 feet off the ground, but meanwhile, just climb to climb because it's here. DAVID: Yeah. I'm not necessarily very good at being the sort of person reading books for this reason. Partly because there are so many books, I have so many other reasons to read, but yeah. JESSICA: Yeah, you're fine. You don't need more reasons to read a book. DAVID: [laughs] But I think two books that I have read mostly to have read them rather than necessarily because I was having an amazing time and learning lots of things reading them are Seeing Like a State by James Scott, which it's a good book. I don't think it's a bad book, but it is very much a history book that also has a big idea and there are like 70,000 blog posts about the big idea. So if you're going and wanting just the big idea, read one of the blog posts, but I'd seen a reference so many times and I was just like, ìYou know, this seems like a book that I should rate,î and my opinion is now basically that like, if you like history books and if you want lots of detail, then yeah, it's a great book to read. If you just want the big idea, donít. JESSICA: Right, because other people have presented it more succinctly, which probably happens with your Aspiration book that you talked about. DAVID: I would like it to happen with the Aspiration book. The Aspiration book is only a few years old. JESSICA: You've written a ñ oh, okay, so it's too soon for that. So you'll write about it, if you haven't yet. DAVID: Yeah, I havenít yet. Looking at it, it was published in 2018 and you have the paperback from 2019. So this is really cutting-edge philosophy to the degree that there is such a thing. [chuckles] JESSICA: Yeah. Oh no, what do you mean? [inaudible]. REIN: Seeing Like a State is. DAVID: Well, I've had this argument with philosopher friends where I was arguing that it was a thing and the philosopher friend was just like, ìIs it a thing, though?î Because the interesting thing about philosophy is just that it never goes out to date. People are sort of engaging with the entire historical cannon so the question is not does new philosophy get done? The question is more, I think is this less ñ? JESSICA: This isnít really a cutting edge. DAVID: Yeah, exactly. JESSICA: Itís more kind of a gentle nuzzling. DAVID: [laughs] Yeah. But also, is this more cutting edge than, I don't know, reading Aristotle's Nicomachean ethics? I don't know. JESSICA: Philosophy [inaudible]. DAVID: Yeah, I personally think that there is cutting-edge and this is on it, but plenty of room for philosophical dialogue on that subject if you can sort of dig Socrates up and ask him about it. [laughter] Yeah, and speaking of philosophy, the other book that I have read essentially to have read it rather than because I was getting a lot out of it was Wittgensteinís Philosophical Investigations where I essentially read it in order to confirm to myself that I had already picked up enough Wittgenstein by osmosis that I didn't really need to read it, which largely true. JACOB: This is the part of the show where we like to reflect on what we took from everything and just wrap things up a little bit. JESSICA: I have one thing written down. We talked a bit about who you are and who you want to be as a person, and how sometimes what you want to do is in conflict with how you think of yourself. Like, when you think of yourself as good at something, it's hard to be bad at it, long enough to learn better. It occurs to me that in our society, we're all about getting to know yourself and then expressing your true self, which is very much a homeostasis more than a homerhesis. But what have we tried not knowing yourself? What if we tried just like, I don't know who I am and then I can surprise myself and have more possibilities. That's my reflection. REIN: All of this discussion about happiness and pleasure, and diversion and striving reminds me a lot of Buddhist philosophy, or what I should say is, it reminds me a lot of my very limited understanding of Buddhist philosophy. Specifically, this idea that you shouldn't judge your life by the outcome of your preferences; that you shouldn't identify yourself with your wants and cling to the outcome of things. You can acknowledge that these things have happened and you can avoid unpleasant things, but you shouldn't be the owner of all of your desires. Instead, what you should do is measure your life by how well you follow the intentions that arise out of your values. JACOB: Yeah. Maybe to put another way, I'm starting to think maybe I could think of myself as the sum of all of the habits I maintain or don't, and try to think of outcome of those habits as what a lagging indicator, I guess, or as a secondary and think more of myself like, ìWell, what are the things that I find I am naturally doing and if I'm not, what can I do to just try to enforce it for myself that I'm going to do that more?î Or maybe I don't care. DAVID: So I'm not finding myself with sort of a single cohesive summation of the conversation, but I've really enjoyed it and there's been a couple of things I'm going to take away from it and mull over a bit more. I really liked the homeostasis versus homeorhesis distinction. I'd obviously heard the first word, but not the second word and so, I'm going to think about that a bit more. Sort of tying onto that, I very much liked Jessica's point of how a clean home isn't really a thing, you can only do cleaning and thinking much more in terms of the ongoing process than trying to think of it as a static goal that you are perfectly maintaining at all times. Slightly orthogonal in relation to that, but I'm also just going to look up Satir as an author and maybe read some of her books. [chuckles] REIN: Yay! DAVID: Because as we have established, always up for more reading. [laughs] JACOB: That should wrap up our Episode 223. I'd like to thank David for joining us and weíll see you next time. Special Guest: David MacIver.
Dr. Lesch was one of our earliest and most popular guests. We could not cover it all in one hour so he rejoined us for some additional discussions of what he has been working on lately. This includes local elections, hostage negotiations and upcoming publications. Transcript: [music] Justin Hill: Hello, and bienvenido, San Antonio. Welcome to The Alamo Hour, discussing the people, places and passion that make our city. My name is Justin Hill, a local attorney, a proud San Antonian, and keeper of chickens and bees. On The Alamo Hour, you'll get to hear from the people that makes San Antonio great, and unique, and the best kept secret in Texas. We're glad that you're here. [music] Justin: All right, welcome to The Alamo Hour. Today's guest is our first repeat guest. You may remember he had a giggle fit last time, and said that he met Bashar al-Assad on a dating website. Dr. David Lesch from Trinity University. Thank you for being here. Dr. David Lesch: I can't talk about that. [laughs] Justin: Before this, I said I was going to ask him things, because lately in our friendship, he has become very self-important in telling us things he can and cannot discuss in public settings. David: I can't talk about that either. Justin: Yes, I know. David: I'm going to be a great guest, I can't talk about anything. Why the hell you got me on here? [crosstalk] Justin: Most of this could just me being like, "Hey, tell me about," insert a thing or a person, and then having you turn red as you laugh and say you can't talk about it. David: Exactly. Justin: Like our previous conversation about your telephone, I could ask you about that, and you also would have to say, "I can't talk about that." [crosstalk] David: Well, they're listening on the telephone right now. [crosstalk] Justin: I think they are. David: Probably are. Whoever they are. [crosstalk] Justin: Probably going to advertise-- [crosstalk] I don't know. David: Here, I am talking about it, so you already got me to-- Justin: On most of my episodes, I normally go through like a top 10 list and what are you into and what do you like. I generally know that about you, but what have you been up to during the shutdown? David: Writing my next book. Justin: Yes, what's the title? [laughs] It's not ambitious at all. What was it? David: It's the history of the Middle East from the Prophet Muhammad to the present. Justin: 78,000 pages long. David: I'm through five pages, man. At this rate, in the 23rd century, I will be done. Justin: I asked you how you broke down what to include and what not to include, and you use the word triage. [crosstalk] David: It's a historical triage. Absolutely, I've done that before. You just can't go over every little thing, or else it would be 78,000 pages. This will be about 350-400 pages. Oxford University Press will be putting it out. Justin: It'll be $250. David: Only for you. Only the hard back copy. [crosstalk] Justin: You had one book that was approachable and at normal price. [crosstalk] David: That's only if I don't autograph it. If I autograph it, it's down to $2 or $3. Justin: I paid $7.80 for your Syria book on Amazon. Does that make you feel bad? David: [crosstalk] Oh, used? The thing is, you got it used. [crosstalk] It was only out for like a month. It's like, "Okay, who read it and sent it back?" or, "Who didn't read it and just sent it back?" Justin: What a jerk friend, "I'll buy your book." [crosstalk] David: Yes, exactly. I was like, "Geez, maybe I can make some money off of this," [laughs] because it's like $15. Justin: Is that the only book you're working on now? David: I think one at a time is enough, thank you very much. Justin: No, I think you said you were working on more than one. David: Sometimes I am, but this time no. This is focusing on that. I've got a lot of writing done since I'm at home more often than not, not traveling as much, obviously. I'm halfway through. It should be published in 2022. I'll...
On this episode of Quiet Light, David Newell talks about when a SaaS business earns a revenue-based multiplier. David is one of our colleagues who just wrote a guide outlining everything he knows about SaaS valuations. Tune in to hear his thoughts on how SaaS businesses have unique needs, the ideal scenario for revenue growth, and which valuation metrics to use when scaling. Topics: Revenue-based multipliers. What happens when SaaS businesses scale. The ideal scenario for revenue growth. SaaS valuation metrics. Why there is a bias towards monthly plan revenue. Comparing scaling a business to dating. Takeaways from David's guide. Transcription: Joe: I understand you spoke with our colleague David Newell about when a SaaS business becomes a listed at a multiple of revenue instead of multiple of discretion earnings, how'd that go? Mark: Well, there's an interesting dynamic when it comes to SaaS businesses, right? E-commerce is pretty straightforward. We have some pretty good metrics that just show that vast majority of e-commerce businesses will be measured as a multiple of their SDE but SaaS businesses, especially on larger levels, we see transactions happen as a multiple of revenue even in some cases when you have a business that is not turning a profit or is currently EBIDTA zero or close to it. And so there's a big question out there, what are the criteria that allow you to apply a revenue multiplier versus an SDE multiplier to a SaaS business? Obviously, this makes a huge difference, right? I mean, if you're multiplying your revenue by five, that's going to be a much bigger number than multiply SDE by five, or four, or three, or whatever. So SaaS valuations can accelerate incredibly rapidly. I mean, it's breakneck sort of whiplash valuations that happen. So I talked to David; I sat down with David. He had just finished writing a 15,000-word guide that really picks apart everything he knows in SaaS valuations and that's a lot that he knows. And he goes into how do we first make this determination between a revenue-based multiplier versus an SDE multiplier? And then the second question, which is again equally sort of murky if you haven't been doing this as long as David has, is where do you then find the multiplier because the ranges are a bit broader than we see in other sectors. And so he goes over the approach he takes for it and then we started talking about some of the individual metrics as well, which are going to apply to all SaaS companies whether it be revenue based multiplier or SDE multiplier. If you are a geek when it comes to valuation talking this is the podcast for you. It's definitely meaty. We get into it pretty in-depth on this. But if you really enjoy this, take a look check out the guide that he wrote. It's now published. It's going to be available on our website. It's also available for PDF download. Share it. Discuss it. Reach out to David. Chris Guthrie would be another great person on our team to discuss these items with. He knows SaaS extremely well. And frankly, anybody on the team, we've all worked in this space ourselves but really, when it comes to our resident expert, we look to David first and foremost and part of it is because of the guide that he put together here. Joe: Let's go to it. Mark: Hey, David, thanks for coming on the podcast. I know you've done a couple of these before, right? David: I have, yeah. Mark: Well, cool. I'm glad to have you back on and I'm excited to have you on this week because you finally finished, and I shouldn't say finally because it wasn't even expected of you but you put together a very comprehensive guide on valuing a SaaS company. How long is it? David: It's a jargon. I think it's about 15,000 words. We shouldn't say that just in case that thwarts people from reading it. I think we're going to do a distilled down version of it. Mark: It's kind of like a mystery novel, how to value a SaaS guide. You know I wrote the ultimate guide to website value years ago when that was what we were really talking about is valuing websites and I think that was a 25,000-word guide. I started out thinking this should be something I can hammer out in a week and it turned out to not be a week. It was much longer than that. It took a while to put that together. And I know this took me a while to put together but the stuff in here is really an authoritative guide on the valuation principles behind a SaaS company. David: Yeah, it's a strange terrain this SaaS valuation conversation because unlike other business models that everybody's familiar with is not purely an earnings-driven model. It's not all about seller's discretionary earnings. And you see that so much in kind of public markets, they speak about SaaS businesses based on revenue multiples and then obviously in our kind of business brokerage landscape, you see it more around SDE multiples and so there's this kind of big confusion in this cross terrain between both buyers and sellers about what is my SaaS business worth and on the other side of the table is how much should I pay for it. And so there's a surprising amount of similarities in the valuation logic between both but what I wanted to point out was the crucial distinctions between them and why they're there to really help people understand that both buying and selling. Mark: Yeah, and I think this is an interesting conversation because we talk so much about valuations at Quiet Light Brokerage. And I've said in the course I put together on how to sell an online business for six, seven, or eight-figures I spent a lot of time on the valuation side and trying to dispel the myth that the valuation formula creates the value of the company as opposed to the valuation approaches and formulas and methodologies are really a predictive exercise more than anything else. And that really, when you boil it down into kind of a philosophical standpoint, it's really a measurement of expected return on investment for the buyer discounted by risk or mitigated by risk. And so you can have other valuation approaches that are completely valid. I know in the web hosting space, which is where I cut my teeth in the brokerage world, that was a revenue-based multiplier as well, because you had a lot of strategic sort of sales going on. It was typically 10 to 16 months of revenue was the average range that we were seeing so I'm interested to get into this. Because I know when I talked generally to people about valuations, I always have this asterisk of but SaaS companies are different and it's kind of a mystery box. So let's talk a little bit about that right there. We'll start with the revenue-based multipliers. Why are we using revenue with SaaS companies and are all SaaS companies going to be valued on their revenues as opposed to SDE? David: Yeah, that's a great question. You hit the nail on the head with what you said there which is that it comes all down to expected return on the asset. And I think the way to think about it is actually kind of in the life cycle of starting a SaaS business. If you imagine starting as many you do people SaaS businesses out of their bedroom; a lot of entrepreneurs see a problem, decide they didn't like it, wants to code a solution to it, put in their own money into it, then they might bring in a developer to start helping them out and they start putting their own money into start scaling it. They get friends as customers and sooner or later they are 10,000 in MRR or so forth and then they start to scale a little bit beyond that. And so initially you're in this period of scaling often with your own capital. And this is kind of a lot of the businesses that we see in the very early stages; kind of like homemades, bootstraps, sub million dollars in ARR businesses. They can remain focused for a large part on earnings and that's why they get they tend to craft some seller's discretionary earnings-based valuations. A lot of these SaaS businesses, for example, one doing 300,000 ARR might have about a hundred thousand in seller discretionary, slightly more multiple of that. Now, what happens? Typically a SaaS businesses look to scale particularly as they kind of arrive more towards a million in ARR and above is that typically what's the case is quite a lot more infrastructure is needed to be brought in to solve the biggest challenges of SaaS businesses which is churn. And that infrastructure is a lot of sort of customer success, it's a lot of additional development in terms of creating better onboarding, and it's putting a lot more sort of infrastructure around the business to really mature and allow it to scale from a small business into a much, much, much larger one, which can happen very quickly, arguably faster than any other business model. And so what happens it seems to me has been the case is that it has become acceptable and standard within the SaaS establishment to at this kind of sub million and arriving at a million in ARR level be able to say we're going to sacrifice our earnings in the near-term, in the short term in order to now chase absolute scalability in the business. And this is acceptable, more so in SaaS than any other kind of business, largely because we have a recurring revenue model with unit economics that are stable once you have churn in place that allow you to do that race up and scale and then cut back on that expense and immediately just be accruing very, very, very significant profitability in the business. And so the quid pro quo for you, reducing profitability of what was a relatively profitable small SaaS business to a now significantly unprofitable or flat profit business is that you'd have to start chasing revenue growth significantly. And so to your point, Mark, about having this kind of expected rate of return, buyers basically say we'll let you run to EBITDA or EBIDTA 5% margins in order that you're going to start sharing consistently 40% to 50% to 60% year over year growth or higher while still going between a million in ARR to five million in ARR, to 10 million in ARR, and 20 million in ARR and beyond. And so that is really the thinking behind why you get to a revenue-based multiple with businesses because the expectation is that eventually a SaaS business will mature and become extremely profitable. A great example of that is something like Salesforce which is now striking off enormous amounts of cash but for a long period of time before it wasn't. And so a lot of the businesses that you see come to market eventually even IPO still have this same kind of fundamentals and eventually, their hope is that they do become very profitable businesses. So it all kind of descends really back from that and I think that some of the question marks around valuation methodology is where is in this kind of hundred thousand in ARR to three million in ARR level which is, of course, where we do a lot of business and where a lot of other market participants are; people listening to this looking to buy and to sell often are is figuring out where are you in a lifecycle, the life journey of the SaaS business, like what is your aim and what are you trying to achieve? And that really informs what the valuation method is for the business. Mark: So as you said there, and there's a lot in there to unpack but the tradeoff or the requirement if you're going to be running at a low EBIDTA or a low profitability or even zero profitability, and I have seen this, by the way, we get these messages from private equity all the time saying we are actively seeking out X, Y, and Z with these characteristics. And I've talked to private equity that is looking for SaaS companies where they said we are not concerned about the EBITDA, we're not concerned about the profitability, but the expectation there is revenue growth at that. I would imagine, though, that there's got to be some other elements in there as well that; let me back up a little bit, we have the revenue growth, but I'd mentioned the expense structure needs to also look at this as being a growth-driven company where the expenses are being driven mainly towards growth. I can't imagine a scenario where you wouldn't necessarily see that but what happens if the growth is minor? So you have a company who is maybe a 500k ARR and they're growing and they're trying. So they're investing heavily in advertising, but their cost of acquisition has skyrocketed. Or they've invested in a large sales team to do onboarding, but they just have not figured that out yet. At what point can we start to say it's not working or is that a solution or somebody just needs to wait in order to sell the company, how do we start to make that discernment in that kind of squishy middle territory where we don't have the clear revenue growth, but we still have the low EBITA? David: 100%. That's what we call the struggle and there's a lot of SaaS businesses in that exact pocket. And the decision for the management team really is what do we do to grow or do we park this and move on to something else? And the former can involve all kinds of different decisions. Obviously making pivots within the business, like changing terms of software products, customer base, also looking to kind of raised capital, the venture capital or angel just to try and get into different channels or find capital to source it from there. And you more or less, Mark, have to push towards that fabled grace, because that's the only available kind of exit option to you from there. Or you go the other way, which is; and you see there is a lot of businesses we're promising and then they haven't reached the cap in the market or a competitor outcompetes them or management loses interest or whatever, and they start to trail off, go flat, and you end up with what's called zombie SaaS which is a not particularly affectionate side while it's probably still a lovely business. And then the option there is more or less you have to cut back all of that operating expenditure in the business in order to restore some earnings and try and exit at typically a much lower multiple of revenue still, but considerably lower that looks more like a normal of an EBITDA type sale and just cut your strings basically and move on to the next thing. And so many businesses, of course, we all know how hard it is to grow and scale any kind of business are in that struggle and trying to figure out that option. Mark: Yeah, I love going through with people the basic framework that we created of the four pillars of value. You want to mitigate your risk, you want to have good growth, make it easily transferable, and have great documentation. Well, that's second pillar of growth is so easy for us to say, right? You want to have great growth and everyone's thinking, well, yeah, of course, I do. It's a lot harder to do. Let's talk about the ideal scenario here. You have a company that is growing strongly and let's say that you're in that one to three million ARR range and we're seeing that ARR grow rapidly so we can apply a multiple to the revenue here. I know what people are thinking, what sort of multiples can we apply to them? David: Yeah, so this is when we flip into a slightly different structure but with very similar dynamics to how we think about business value at Quiet Light and the way we model multiples but the difference, the departure is the starting point. So whereas we in the private buyer side particularly the earnings businesses, we draw upon the several hundred previous transactions we have. We know where the average multiples are for businesses with certain characteristics in nature and we can call on that data set. To start with the revenue multiples side of things you have to again go find the data set and the data set to pull on is generally the public market. And so the best thing to do to start with is actually go look at like an index of cloud companies; SaaS companies that are publicly traded on Nasdaq and so forth, and use that as the benchmark for that kind of revenue multiple that normal publicly traded SaaS businesses are trading at. And that could be something like 10 times, 11 times forward multiple around probably what it is right now. And then, of course, naturally, that's a multiple that's appropriate for a large publicly listed company so already you're saying like, well, that's not really relevant to my smaller private business. So the first thing you have to do is make a public to private discount on that and so there are varying schools of thoughts around what that kind of discount is. It can be somewhat arbitrary. There's a lot of private equity companies out there that speak about what they do, and they have portfolios of private companies that they pour. The received wisdom is it's anywhere between 25% to 30% immediate haircut for being a private company. So you can come down off that 11 to something like eight, for example, and you have what feels like a large private company SaaS business should be trading at. And then we get more into the territory of what we do Quiet Light and what you're just talking about, Mark, in terms of the different four pillars of the business and you start to adjust based upon where this business is aware of the SaaS business we're talking about is relatively strong or weak compared to businesses of its size and businesses of its nature. So three million in ARR is a great example, you'd actually expect on average businesses at that level and this kind of valuation exercise to be growing probably at something like 50% to 60% year over year because it gets harder and harder to grow faster and faster, obviously, with scale. And so if it was much larger, say like a hundred million, you'd actually reduce it and say the average business at a hundred million ARR would be growing at about 30% year over year. And so already you need to compare what's the revenue growth rate of this business versus the paired average for other similar-sized businesses. And it's again a case of going through all of these different classic criteria that we normally do; revenue growth, churn, lifetime value, diversification, all of this classic operational metrics that go back in kind of normal business logic land and just comparing where does it look like versus businesses of its size and businesses in its same kind of customer segment of category and that begins the adjustment process down until you get to a multiple and that starts to make sense. Mark: Yeah, so I want to touch real quick on just the size of a business in general because I know we experience this across the board with all different types of businesses. And yeah, my alarm bells went off, and let's just start with the publicly traded companies. Because I can hear all of my e-commerce clients saying, well, fantastic; I don't know what Amazon is trading at right now as a multiple of revenue, but I'm sure it's a ridiculous number. David: Yes. Mark: But Amazon is also the largest company in America at this point. Actually, I don't know that for sure. I'm sure they're up there, though. They're top five. So sort of with the publicly traded markets is a starting point but there's a lot of discussions that are going to happen in place. So if we're looking at a publicly-traded company like a Salesforce, as we scale down in terms of revenue down into the seven-figure territory from the nine-figure, eight-figure, seven-figure, the discounts do come in pretty rapidly. Why is it that larger companies earn a higher multiple of either revenue or earnings, in your opinion? David: Well, there's a perception of greater stability with greater size. Additionally, just generally speaking if you were to say a business growing 30% year over year at a hundred million in ARR versus one at 10 million in ARR it's more oppressive to be doing a more valuable; you're creating more value at a hundred million than you are at 10 million and therefore, it's commensurate with so the business is worth a greater multiple. It's much, much, much harder to do so. And you see that very, very clearly if you just go and look at a size-adjusted scale in public markets, at businesses at scale that are growing very quickly, they're the ones that are trading at the highest value and that's why Amazon's ballistic valuation. But it's because it's delivering unbelievable revenue growth for business scale. It's already absolutely huge in size so it is very, very, very impressive. But you're right, you need to start discounting down quite significantly. But it's tempting to be like we're starting so kind of pie in the sky with these public numbers and public multiples like wipe off of there. They are the heartbeat of overall like macro SaaS macro sentiment and like it or not, that is where a lot of sentiment; investment sentiment, think about it like kind of customer confidence. It's kind of like investor confidence really does benchmark from public market tech valuations. Mark: I mean, it makes sense, right? Everything that we're talking about here, any sort of valuation is really a market-based valuation. Anytime we're valuing any asset, whether it be a business or apples, it's based off of market dynamics here. So that part makes sense. I want to dig into the business metrics though that we start to get into in more. The regular as we are characterizing it, the regular valuation metrics that we look at. Within the SaaS world, these are going to be somewhat different anyway from, say, an e-commerce business, right? On an e-commerce business, we're going to be looking at gross profit margins, we're looking at growth, we're taking a look at some qualitative aspects of the products that they're selling such as the intellectual property protections and everything else. What sort of business metrics are we going to look at for a SaaS company, regardless of whether we're looking at it from an SDE valuation viewpoint or a revenue multiplier viewpoint; what are some of the other metrics we want to look at? David: Yeah, it's a great question because it's both actually identical and this is where the commonalities between the two methods are huge which is that it's all very well talking about in a revenue growth way of SaaS businesses but you have to look at what's the quality of that growth. And the key barometer of quality of revenue growth in any SaaS business is churn, average revenue per user, lifetime value, a monthly versus annual plan split, and the gross margins on there. So clearly if you just take the first one, because churn is such a focal point for everybody, if you have a business with an outsized level of churn versus its size and category, then that's a major red flag in terms of the business. You see that quite a lot in terms of Shopify or Amazon plugin type add-ons, where largely because of the type of end-user which on Amazon can turn over quite quickly buyers and sellers come and go there. Those tools can kind of have quite high churn rates. And so it's an interesting one because they often have very fast growth rates in general, like a very sharp revenue growth rate because Amazon is an absolutely enormous space to be in. There's tons of new sellers turning up, signing up for new tools that they're churning away after three to four months. So you have to immediately look at can I appraise this tool that's going 100% year over year growth versus the 15% monthly churn? Because if it stops growing even just a little bit within 12 months, it's going to churn out almost the entire customer base and cut off all the growth. And so you have to look at those two. They're absolutely symbiotic. And it's the same with seller's discretionary earnings type businesses because ultimately that impacts the bottom line as it is with revenue multiple. And then the interesting one is looking at monthly versus annual plan split. Naturally, most SaaS businesses are an amalgamation of both and it's definitely favored and preferred that there's a much stronger bias towards monthly planned revenue if that makes up sort of 85% plus of your overall business. That's perceived as a very good thing. If annual is a bigger proportion of that, that's something of a concern. And that's really just because what you want in SaaS is predictability. That's what everybody loves with recurring revenue. Monthly plan revenue is more predictable than annual planned revenue, which seems psychologically counterintuitive, but it's not when you consider that every single month customers have the opportunity to churn away, whereas with annual planned revenue that only happens once every 12 months. So you have no idea what's going to happen in 12 months' time to a large cohort of any bias. Their whole lives could have changed quite a lot so the data set there is less rich and so it makes it more opaque for bias. And so they actually value that pop business generally lower than monthly occurring revenue. So they are just a few of a couple of the kind of revenue quality metrics that should be really important for both buyers and sellers. Mark: I want to talk about ARP but before that, I'm going to talk about churn and a concept of it. I don't know if you would take this into account an evaluation of an Amazon SaaS business, for example, that is supporting sellers. As you know, David, I have an interest in a dating website online and there's a concept in dating world called the good churn. It's somebody canceling their account because they met somebody. And within the dating world, you want to have good churn even though it does impede growth. I know with the site that I have interest in, the business I'm interested in, we have monthly turnover on 23%, which is massively huge and it does impede growth, but we want to have 23% be made up as much of good churn as possible because when people meet somebody they then talk to each other. So within the Amazon space, do we take that into account or with any sort of support service where you're getting somebody off the ground and they outgrow your product because it served its need, right? That's really the dynamic here. If your SaaS business serves a need that your users no longer need it that would be good churn. Would that be taken into account with that churn number very much or are we really looking more just the throttling on growth and the fact that you're chasing ever-increasing growth numbers with high churn? David: Yeah, it's hardly the latter, because if you think about it, I mean, SaaS valuations, in general, are higher than any other business model. And the reason for that is because for every single unit of revenue you're bringing in you can predict how long it's going to stay with you for and you can't with any other business. And so helping people out for a shorter period of time, even if they're then canceling for good reasons while still brilliant from a customer success standpoint, isn't something that a buyer would attach a higher multiple to. So you kind of want to help people for the longest amount of time to create the most amount of value and that's why I like businesses with very high lifetime values and their churn are generally speaking, the most valuable type of SaaS businesses. So, yeah, you've got yourself a beautiful paradox there Mark with your site. I think in that situation, you just have to turn into a massive marketing spend then. You need to post those numbers all over your website and say people are gleefully canceling because of what we do. Mark: Well, you know it bleeds out into the other metrics, I think. And I wish I could say our 23% was good churn. It's not but it bleeds into be other numbers, right? Because if you have good churn where it trickles into is your cost of acquisition becomes effectively lower. So the more good churn you have, the lower your effective cost of acquisition compared to people that don't have as good of churn because you have more social proof. Now, it may not be a very clear or strong relation, it's more murky but let's talk about ARPU and also a lifetime value of a user. When we're looking at these metrics, how much does taking look at cohorts in terms of time play into that? Because I know Chuck sold a business a while ago, it wasn't directly SaaS. It was sort of SaaS-y in its makeup, which it was pretty much awash for the first 24 months in terms of lifetime value and cost of acquisition. But after that 24 month period, everything was profit on top of that. And I look at that and say that's fantastic. That's great. I get it. But from a buyer's standpoint, the cash requirements for a business like that, especially if you're growing rapidly, becomes a constraint to growth. You have to be able to fund a business with a 24 month period lead time. How much does a cohort analysis play into a valuation? And I would assume kind of the logical conclusion here is the shorter period of time to be able to get from your cost of acquisition to your revenue is more desirable. But is that something that you look at closely? David: Yeah, I mean, from the challenges with LTV in many monthly recurring revenue businesses, is it's moving around so much. I just sold a business just recently where the LTV posted up and profit well is going everywhere from 2,800 to $7,000 month to month. So try marketing a business with that level of variance. So to your point, Mark, you do have to look at cohort analysis, I think to go back and be like, what's the kind of longer-term trend in the business here? Like what's actually evolving because that business is a great example, the same phenomena you're talking about which for two years, more or less, didn't really make any money and then started to hockey stick. Not so much because the revenue growth was absolutely phenomenal it's just because the cost base no longer needed to go up anymore to substantiate it. They kind of refined the products enough, spent enough on development, finally figured out the marketing channels, stopped spending really a lot of both and then it just started to fly. And that is the case in point for so many SaaS businesses, which is that it's kind of like swimming into the dock a bit for an indefinite period of time until you do hear those unique economics that makes sense. And it just flies from that point in many cases, anyway. Mark: I think that the whole world of trying to value SaaS companies, especially in this murky range, is a fascinating exercise. When we do an e-commerce valuation, so much of it is cut and dry and I think part of that is just due to the volume that's out there. It's also the nature of these e-commerce businesses as you buy an asset and you turn it around and you're selling it so your profit becomes kind of immediate as opposed to the longer periods of baking and growth with the SaaS company for the long term, which makes it more of a complex exercise. So let's talk a little bit about the guide. 15,000 words, you talked a lot about this idea of moving over to the revenue-based multiplier. I would imagine that there are some examples. And we joked about this before we started recording, I haven't seen the guide yet and reviewed it so I'm going to be speaking a little bit and guessing. I'm assuming that you have some examples in here and other information. Tell us a little bit about what's in the guide and what people could take away from it. David: Yeah, so the guide really breaks down how to do the traditional SDE approach valuation and the revenue approach valuation, and most importantly, how to discern the difference between case studies where you should do one or the other. And I kind of put a four-part test in there which is really the size test. Is it or around or above the million dollars in ARR level? The next thing we look at is where's the revenue growth trending towards, is it showing these kind of fundamentals we're talking about 40% plus year over year growth? The next thing is looking at is this still a business that's kind of a single owner-operator in a relatively thin personnel business, or is it starting to staff up with customer success, starting to wrap around some significant infrastructure to enable it to start going from one to 10 million dollars? That's a really important kind of qualitative factor. And then the last one, of course, is churn, because in reality smaller apps, generally speaking, have higher churn rates. So you'd expect to be seeing kind of an over tuned 4% to 9% in monthly churn in immature let's say, and to the immature SaaS apps. And as you start to get up to this million in ARR level you'd like to see that really dropped below 4% monthly churn. That's the big thing, because churn, as every SaaS business more or less in the world will tell you is the hardest problem to solve for because it is the ultimate barometer of whether people think you're creating enough value to not want to churn out and cancel. And so the more value you're creating, the more helpful you are to people, the less they're going to churn. And that's ultimately what anybody wants to pay for in any business. And so it being the most difficult problem to solve for makes it the most valuable one for a buyer to want to buy. So the lower the churn, generally speaking, the higher the value of the business all else being the same. So those are some of the key distinction points. And then, of course, I'm aware that there's both sellers and buyers looking at it. It's really useful information for both sides to see. Buyers are looking to buy to grow up and scale, sellers are looking to increase the multiples, everybody wants to increase value so I put in a bunch of additional kind of growth value; what I call value-centric growth levers. And what I meant by that is like what essentially the top three things that you can do that will most dramatically impact the most part of the business right away beyond just getting more growth which, of course, always helps. But like specifically one of the things that we've seen over the years in Quiet Light selling businesses, one of the things that we know dramatically increase the multiples of businesses. So I shared some of those in the guide as well for both buyers and sellers to look at. Mark: So if we want to just be trite, we can say if you want to get a great valuation, grow your business or reduce the churn, right? David: Yeah. Mark: All right, the guide is going to be available on the website. We will include links, obviously, in the podcast. You're going to be seeing some emails from us about the guide. We'll also have a PDF downloadable version of the guide. And of course, if anybody has questions about the valuation of your SaaS company and where you fall or questions, I'm sure David would be more than happy to answer any questions about this as well. David: Absolutely. Mark: David@quietlightbrokerage.com. David, thanks for coming on and enlightening me a little bit on this. And it's a complex topic, its super interesting, though. You know, I've been doing this for 14 years now, and it's sort of refreshing to look at different types of companies, different approaches to the same problem, and seeing where we can get some variation. So this is absolutely fascinating to talk about it and I'm looking forward to reading it, which I should have access to it. I'll be reading it here soon. David: My pleasure. Mark: Thanks David. Resources: David's Article About SaaS Valuation Quiet Light Podcast@quietlightbrokerage.com
In this episode we have David Young from RCN Capital tell us all about the world of private lending: what it is, how it works, who might want to use it, where the money comes from and how it differs from traditional lending. --- Transcript: Tom: Greetings and welcome to the remote real estate investor. In this episode, we're going to be talking about what investors should and need to know about private capital. We're connecting today with David Young of RCN capital to answer all of our questions. Alright, let's do it. -Theme song- Tom: Awesome David. Well, first off, thank you so much for joining us. And, why don't we start by telling us a little bit about yourself. David: Thanks to Tom and Michael for having me, really appreciate the opportunity. Yeah. My name is David Young. I'm the director of business development with RCN capital. We are a direct private lender headquartered in South Windsor, Connecticut, just outside of Hartford. And we do lend nationwide. I'm actually located personally in Boston, remote to the office as are some of our employees. And my background is pretty diverse, prior to arriving at RCN where I got to RCN in 2014, the company started in 2010 in response to the previous financial crisis. If you will, now, we're certainly going through another challenging period, but if you go back to the 2007/2008/2009 nine meltdown RCN was started in response to that, and I'll get to that a little bit more. So my background is spreads across a variety of things. I graduated from the United States military Academy. At West point, I was in the army active for about seven and a half years upon leaving the service. I took on a variety of roles, many of which were oriented around sales business development. I had executive level positions as a division vice president as well. I also ran a small business in central Massachusetts as a VP running a outbound and inbound call center and a variety of other roles spread across a lot of different types of skills and levels of experience that cover a lot of different ranges of medical, home improvement financing, and several others as well. Tom: All right, that's great David, let's jump right into the meat of questions around private lending. So a lot of remote investors, they like to invest with debt, lot of great benefits to investing with debt. And there's this decision right of private capital versus more traditional loans that you would get in your personal home mortgage. Why don't you break down some of the differences between private capital and a more traditional mortgage? David: Sure. So, you know, the more traditional route of a mortgage say going to a bank of America or Wells Fargo and applying for your typical 30 year mortgage is certainly an option and might be the best option for somebody depending on their particular situation. In fact, private lending essentially exists and evolves in response to those that can't be served by the traditional sector. So it's filling a gap that isn't being met in the traditional sense. So, you know, a traditional mortgage may be suitable if there are no issues to consider in terms of, you know, damaged credit, if there's not an extreme or even a high sense of urgency in terms of time and being able to complete a transaction in a very rapid amount of time, perhaps if there is no issues with, you know, citizenship, you know, private lending, a lot of the firms such as ours will work with foreign nationals, you know, with traditional mortgages or other, you know, hoops, if you will, that you have to jump through. There's a lot more that goes into the underwriting with a traditional mortgage in terms of looking at income verification, tax returns and so forth. So, but again, it may be the right route. Generally, the rates are going to be lower and a traditional mortgage, as you see right now, 30 year mortgages are somewhere in the low to mid threes and on private lending, you're not going to be able to get that low, but that's because you're being represented in a different asset class and there's different variables that come into play. So why would somebody pursue a private loan in terms of making a real estate transaction? That could be a variety of reasons. Let's just look at a typical fix and flip, if you will. Timing might be very critical. Somebody might be analyzing an asset that they want to move on and they need to line up financing on that. There may be competition for that particular asset, perhaps there is perhaps there isn't, but either way investors tend to feel a sense of urgency when they identify something that they want to acquire and then renovate and eventually flip. So private lending, generally speaking is going to give you a much faster response time. In other words, you can link up private lenders, such as RCN capital and fairly quickly get through the process and get approved and actually get funded on that loan. Why? Well, there's generally a lot less that goes into the underwriting and there's general early, a lot less in terms of a regulatory issues and traditional banks, you know, going back to the bank of America in order to administer and process your typical mortgage, there's a lot of regulation involved. There's a lot of issues that they have to consider. They're not necessarily the ones that are thrusting that upon you. Those are things that they must comply with, private lending, not as much, for example, we're not at least in RCN and many others as well. There's no check on tax returns. There's no check on income verification in terms of you don't necessarily have to have a W2 type wage job in order to be approved. And it certainly wouldn't hurt, but you don't necessarily have to have that private lending, particularly if we look at hard money fix and flip, you know, residential real estate where RCN focuses on non owner occupied residential it's asset based. So the focus is on the asset itself. And then other key factors tend to be the experience of the borrower. So how many transactions have the borrower has the borrower completed? We tend to look at the last, most recent 36 months by verifying if their name is on entity that completed a transaction. And then there's going to be a look at other things like credit score. But for example, in private lending, there are requirements or expectations on a credit score typically lower. In fact, maybe even much lower than in traditional mortgages case in point right now, just in response to the COVID crisis. In some tightening of lending standards across the board, both traditional and private lending, a lot of your traditional banks have really ratcheted up their standards and expectations. Credit score minimums have gone way up liquidity requirements, et cetera, that in and of itself is going to bump a lot of people over to the private lending space and private lending. Currently at RCN Capital, the minimum FICO is 650. If you look across all of our product categories, you're not going to find that at a Wells Fargo. So speed, credit requirements, the ability to be perhaps a little bit more creative with an approach and how to go about getting something done and being rewarded much, much more so for the asset itself. So is this a good deal that you're going for? You know, that's going to be a very high concern to a private lender. Yeah, nd the experience that you bring to the table. So do you know what you're doing? Do you have the experience, do you have the liquidity to accomplish it? That is what really matters as opposed to what, you know, a Wells Fargo or bank of America is forced to look at. Michael: That's a really great point. Yeah, I was just going to ask you, you mentioned it in passing hard money is private capital and hard money. Are those two synonymous or do they really differ? David: Yeah, that's a great question. Now again, I've been with RCN since 2014. Initially I wasn't directly on the real estate side, but a lot has changed as RCN originated in 2010. What private money consisted of in hard money was what a lot of people I hear now refer to as you know, kind of the old school where, you know, you know, a guy who might know a guy who could get you alone. And then when we say asset based, I mean, it's, there may, there may not even have been, and this still exists today, by the way, we compete with this and RCN where leverage, LTVs loan to values. If you will, to keep it simple, tend to be lower and you're more old school had money, maybe even no doc may not have require barely any documentation. And certainly not necessarily an appraisal or even running a credit score and for the purposes of just adding it to a file. So now when you kind of, it's almost, you know, a point of contention or even something that people joke with each other about in the industry where, you know, hard money has really evolved into a much bigger and more sophisticated ecosystem where more money comes in, where there's more requirements like just looking at the FICO, FICO requirements, FICO minimums. A lot of that is tied to where the capital is originating from to fund these loans. So there's institutional capital that helps. And not in all cases, there are funds. Well, there are private investors that buy loans directly, but institutional capital tends to come with certain expectations. The FICO is one of those where you have to check the box. If you will, the old school, if you will hide money, probably shrug their shoulders at that. Um, they're not concerned with that. They're not necessarily concerned with an appraisal. They want to see the asset and they're going to protect themselves by, in all likelihood having a lower level of leverage, lower LTV we had prior to COVID essentially the whole private lending, hard money space fix and flip space was getting, you know, leverages, you know, up to 90% or even higher with some particular vendors out there where you were getting 90% of LTV, plus a hundred percent of the rehab funding to close a loan on a flip, as an example, someone doing your so-called old school, hard money. I mean, I haven't heard of anybody doing that high of leverage in that space, but it's still out there. There's those people that, whether it's a lot of times it's speed, somebody will close alone very, very quickly with minimal underwriting work done aside from looking at the asset itself. So there's still a market for that, but there's a lot to your question, a lot of crossover or kind of a lot of blending they're one and the same in some ways. And then they separate from each other as well in different segments of the marketplace, depending on who you ask, different people have different interpretations as well. Tom: One piece you touched on is room for, I don't know is creativity is the right word, but there's a little bit more variability in the different products in that it's just, there's way less regulation I'd say on it. Would you mind touching on that on some of the different products that, and maybe one of the more popular products specifically as a remote investor that you guys originate? David: Yeah. One of the ones that really took off, uh, heading into COVID and we've now just activated it again is our 30 year long term rental. Okay. So this is a 30 year fixed, fully amortized loan, much like what many people are familiar with with your traditional 30 year mortgage that we talked about a couple of minutes ago. So 30 year fixed non owner occupied residential. We have that available on one to four units. This really came into play. It. This really took off like a rocket, uh, in March of roughly in the spring of 2019. I don't remember the exact date when we launched it, to be honest with you up to COVID. This thing was already approaching 40% of our originations at that point. And it gives people a lot of flexibility. We could look at portfolios of assets, so you'd have investors out there with say they had 10 single family residences and they had 10 different financing situations on each one. Maybe two of them were with a particular guy. I know a guy who knows a guy who gave them a bridge loan a couple of years ago. Maybe one of them was with someone else. And there was just all spread out everywhere. The 30 year longterm rental, you could take a whole portfolio and roll it into one transaction and get that entire portfolio into a 30 year fixed fully amortized mortgage. At that time, back in February, you know, rates were getting as low as four 449 on that, which is very low for non owner occupied resi. So you had that, you had the ability to look at those assets. So you may have one particular, if we stick with that example, one house perhaps was not cash flowing as strongly as the others. You weren't necessarily penalized for that. You weren't necessarily told that that one couldn't join the party, so to speak. That one was weighed against the portfolio as a whole. So we could look at the whole portfolio, also look at the investors level of experience, their level of liquidity and take all of that into account to make a decision. We have an executive committee at RCN Capital that looks in each and every transaction and they can exhibit, you know, a certain amount of creativity, if you will, at any point in time to see if the transaction truly makes sense, as opposed to trying to run that through a large bank, traditional bank could potentially be an entirely different experience. Michael: That's so cool. David, it's something I talk a lot about with students in the Academy about portfolio loans. It's something that I've used on the commercial side of things, and I think it's the best thing since sliced bread. So I've always thought that they existed for single families, but that's great to hear that they do indeed. So anybody listening that have spoken to me within the Academy about getting, go for portfolio loan, go call David Young at RCN Capital. Tom: in coming up with what the rates are. Is there a little bit of a discount for larger pools, larger portfolios, or how does that typically work? David: Yeah, that's a great question. So we have generally, you'll see, uh, and right now, as listeners are hearing this, uh, allow me to emphasize if I can, that things are changing very quickly. So in terms of pricing as a whole rates points and whatnot, we saw a very high level of liquidity is kind of sloshing around the system, heading into a COVID and then things really tightening up seizing up even, and then starting to now loosen up. We've seen changes on almost a daily basis over the last couple of weeks here at RCN capital. So the way those rates are determined, you know, in terms of the price at anything is which is, you know, in large part driven by supply and demand as things seized up and there was less or no liquidity for this paper and the secondary market, it became very difficult to price it, you know, because we didn't know what it was trading at when there was a lot more trading volume and activity on this paper and the secondary. Then you could determine pricing a lot more clearly. Furthermore, you had a lot more of the competitors actually active and lending in the last couple of months, people have pulled back. So we don't necessarily know what this company over here is doing because they've completely ceased lending at this current time. So a lot of that is supply and demand driven, how much volume and activity is there for this paper behind the scenes. And then that results in, you know, subsequent pricing that the retail sees factors that we look at from an underwriting standpoint, and to determine kind of how to bracket that again, back to experience and also the size of the loan. So generally speaking again, pre and post and kind of while we're still with COVID here for the time being, it's a little different, but generally speaking, more experience and a higher loan value dollar absolute dollar value would generally lead to better pricing to the retail client. And through our wholesale channels. My role primarily is with our correspondents that work on our private lending platform, other hard money lenders, private lenders out there in the community that are looking to leverage our infrastructure to grow. We also work in that capacity as well, but the pricing, the borrower's experience and the size of the loan, we have systems in place. Whereas the loan exceeds a certain amount in dollar terms, you may get some relief in terms of the yield. There may be some relief in terms of the origination, but those would be the two main things experienced in the loan size. Tom: Got it. And for the kind of ongoing ownership, you know, so there's a secondary market where you guys are selling the mortgages that you guys originate from the experience of the person who was getting their loan originated, or do you guys ongoing service them after you, it, of the loan, David: Yeah, depending on the product, but actually RCN Capital. What we have here is, is pretty unique in the industry. And I leveraged this a lot with our wholesale partners when they're looking to find somebody to work with in terms of a capital partners that we have essentially everything in house now, right now, a lot of folks are remote. In fact, almost everybody is given the scenario, but if you'd look past that for the current situation, when we talk about servicing the loans, yes, we have our own servicing team at RCN capital. A lot of lenders in this space are set up with a situation where they're outsourcing that, which is fine. That's a decision. A lot of people make. We actually did that ourselves for a certain amount of time and decided to internalize that and make that organic to RCN, to place that amount of value on the customer experience. So yes, we're doing that, not all do that, that also holds true for another good example is our legal team. A lot of these transactions involve, you know, somebody originating and kind of setting the table if you will. And then the actual closing of the loan document prep and so forth, working with attorneys, which that can be intimidating and frustrating as a whole to a lot of people that is sent out to some other entity to conduct that business where we have that internally. So we have that an entire legal staff. That's all they do all day long is work on legal issues, closing stock preps, et cetera. We have our accounting team, our marketing team and everything actually in house in RCN. And that really helps as well. Not only does that help the retail client by providing them, they get a loan from us that they're to get an exceptional level of service, everything under our control. If there's a problem, we identify it, we fix it. But also with our, you know, our B to B or our wholesale partners, if you will, other lenders brokers, when they choose to work with us, they have that entire team, all organic to RCN capital to support them and help them grow their business by using our infrastructure and platform. Michael: Great. David kind of a specific question for you around some of our CMS product, but anytime someone's using hard money, they want to get out of it as soon as possible because it's typically more expensive than traditional lending. So do you guys have any type of prepayment penalties that would prevent someone from getting out or is that really too specific of a question it's kind of on an ad hoc basis based on the product? David: No, that's a great question. It depends on the product. I'll walk you through each of them here briefly. So on our long-term rental. Yes, we do encourage investors to be, you know, fully aware and committed to the asset for that exact purpose. You know, long-term rental and holding of that asset. There is a five, four, three, two, one step down. In other words, you can choose, you know, at what level you are, what time period and what penalty would be associated with that if you were to try and refinance out of that loan. So, you know, obviously that's a big decision to make that you have to be aware of that on our midterm product, which actually now is presenting all kinds of interesting opportunities for investors. It's a two years of interest only we call it a two plus one and already has built in an option to extend for a year. We have this available on one to four units, multifamily five-plus and mixed use, as long as it's at least 51% residential by square footage. On that product, there's a six month prepay penalty. So if you think it through, if you were to enter into that product to interest only for two years, perhaps you have an asset that you do want to rent, but you're not entirely sure you could change your mind. You may try to sell it. You make, you know, you may rent it for a year. And then at that point, you may want the flexibility to see if you want to do something different with it. The two plus one with only a six month prepay gives you that exact flexibility because after six months you could theoretically enter into a new transaction to get out of that one without a penalty applying. So there's that on the short term, I won't get into specifics on that. It can be on a case by case basis, but there's nothing to dissuade you from completing your project as quickly as possible. You know, as a lender in particularly with the yield component, you know, there's origination, which are the economics kind of front loaded to the front of the transaction. And then there's the yield component in terms of collecting the actual payments as each month goes by. So there can be challenges that a lender or a transaction ends up being very short. There wasn't much time to collect yield, but again, we don't want transactions that drag out for long periods of time and have to ultimately potentially approach modification as well. So on a 12 month, you know, a flip, if you will, our transactions show that, you know, investors are not penalized for, you know, being expeditious and efficient with their work. And we also have incentives to, you know, not, uh, enable them or make them feel like they should consider trying to extend it or go past a certain point. We try and we want to position them so that the project is done efficiently. According to the data that we have that shows, you know, what success looks like. Michael: Awesome. Kind of taking a step back and looking more high level at private lenders. I mean, you touched on it briefly, but who where's this money coming from to fund some of these loans? David: That's a great question. When you let's compare it to conventional, you know, just here in COVID, this, this could go in a lot of different directions, but in COVID what we saw was the federal reserve came in and really just threw the kitchen sink at everything essentially. I mean, they've, they've done things that are truly unprecedented that that's cannot be overstated, but one of the things they did is something they've done before. They certainly did it as part of so-called QE, quantitative easing since the 2009 crisis, which was to come in and provide a backstop to mortgage backed securities MBS. Now, even just saying that they're going to do that can have a huge effect regardless of how many they ultimately buy, but those are the traditional mortgages that are originated from, you know, you know, Fannie Freddie type stuff from a bank of America type of transaction that are sliced and diced into exotic securities, and then sold the fed comes in and says, look, we'll back up those, you know, we're gonna, we got your back on that, that helped that particular sector kind of spring back from the depths of the COVID crisis, if you will. And private lending, you know, we don't have such a backstop from the government. So this money is coming from, you know, private capital sources. However, there's been a big evolution, you know, for a period of time, a lot of this was from a private, you know, private investors, private investors would form funds. So you might form a fund with a group of investors that has, you know, I don't know, $20 million together. And then that funds purposes to invest in these various private lending transactions in whatever area that they choose to focus on. So they're out there lending and recycling that cash and doing their thing. And that's with, you know, that amount of money that they've been able to put together. There's also one off transactions that occur when an originator may take a loan and say, look, here's a loan. We have, do you want to fund this? So they take this loan, it's a 500 K transaction. They present it to that particular investor and they get a yes or no answer. And it's funded that way. RCN can help in those scenarios where you run out of capital and then you can come and jump on our platform. If you happen to be in one of those positions, any of the listeners out there. And then as the industry grew, you know, you have yields here that are pretty juicy compared to traditional. You look right now. Uh, if I pulled it up, I know from looking recently, uh, the 10 year note is what around 0.7%. So you're lining the government money for 10 years, for .7% annualized. A lot of institutions are, you know, they have to do that, but if you can lend as an institution into the private lending sector for loans that are collateralized by real estate and get five, I don't know, I'm just throwing these numbers out there. A lot of pricing is bounced around, I don't know, five, 6% versus less than one on government notes, government bonds. Then that's certainly a decision that you might want to take a look at. So a lot of that, I think yield differential investor demands for yield, the thirst for yield. You've had interest rates just being destroyed down to nothing. You have negative interest rates in some parts of the world. A lot of folks speculate, you know, rates could even be driven negative here in the United States. So pension funds, you know, other people that manage money institutions, there's no yield. It's very difficult to get yield secured and then incomes private lending, where you have these loans that are backed by hard assets. And as the ecosystem grows, becomes more mature. You have more underwriting standards, you have more eyes looking at it. You have more ability theoretically to, uh, make better loans, uh, minimize the faults and kind of feed the whole beast, if you will. Institutions look and they say, Hey, that's pretty juicy yield. I wouldn't mind getting some of that. And then you have that type of money coming in institutional level. So say, you know, you have funds, people put funds together, you have private investors to do one off transactions and then institutional capital. Michael: Super great description. Tom: That's a great overview. I'd love to learn a little bit more about the different types of customers and the different flavors of customers that use private capital. So there's individual investors, perhaps there's syndications, I'd love just to learn a little bit more of the different kinds of avatars or profiles of people that use private capital. David: Right, yeah. So back to our discussion on experience. So when RCN creates products and underwriting standards, generally speaking, that experience factor is huge. So we do lend to people that have no experience. In many cases, those are, you know, kind of a mom and pop, maybe, you know, an individual that's looking to get involved with their first flip transaction. And that person might be someone that could come from a variety of backgrounds. It may be somebody that was working with someone else on these transactions actually executing the labor, the work, you know, watching a project, go from A to Z with their own eyes, and then deciding that they want to dive in on their own. Maybe it's a husband and wife, couple that are, you know, have a little side hustle going on. So you've got that. You certainly have the mom and pops. Then you have the call it a small business. If you will, maybe that tends to have multiple projects going on at one time, they may have their own crew in terms of contractors and a more sophisticated setup in terms of having a, you know, a playbook on exactly how to execute a transaction and already having the resources lined up or even on their own staff, you have that. And then you have even bigger organizations that are doing this in big numbers. You know, maybe they may have 20, 30, 40 transactions going on at any given time. They may, you know, they talk in terms of flips. In many cases, they may flip a couple of hundred houses in a given year. You have that as well. We're also seeing, you know, more activity and more interest in the multifamily space. So multifamily five-plus units, you know, these are small balance apartments. Generally. I know in Boston and other areas on the East, you see these spread throughout the communities, a building that may have eight, 10, 12, 16 units. You know, there's estimates, there's about 10 million of these out there in the country. And those are starting to get more activity as well. And for those, you know, that's probably a project that's going to require more than just a couple of guys working together on a side gig and some more sophistication. So you see a variety of different flavors out there. You see people that have made this, their, their living. This is how they make a living. This is their job. This is their career. This is everything. So we've seen different variations. Tom: Awesome David, I think people hear private capital or private money tossed around a lot, like we were saying before, and you've given us such a great overview and background of kind of the institutional side of things, if you will, but from a private lending perspective, if I'm looking for money and I happen to know someone that has some extra, could I just go ask them to lend it to me and I think work out some kind of agreement with them, or do I have to go through maybe the more traditional channels of private money? David: Yeah. I mean, we have actually specific to my role. We have investors lenders, if you will, that were doing exactly that. Or maybe they may even still do that, where they are providing kind of one off direct transactions between themselves and an individual investor out there looking to flip a house or what have you. So to your question, can you do that? I mean, there's nothing that I could say that's could literally stop somebody from doing that. There may be other things to take into consideration in terms of making sure everything is within compliance. I mean, the compliance is certainly looser on the private lending side than it is on traditional, but you want to make sure that you're working with, you know, it may be worth considering to take a look at working with an established organization or entity. That's been doing this to ensure that all documentation is done correctly, to ensure that all procedures are done. They'd probably be, it's in their vested interest to help you, help you to look at the project and make sure it makes sense. And there's ROI available there for you to capture, obviously to be able to pay back, pay them back and make the monthly payments. So I, yes, you can still, you know, there's nothing stopping someone from, I suppose, from approaching an individual saying, Hey, do you think you could give me X amount of flip this house? And that's kind of how it all got going, you know, looking at, you know, maintain a certain leverage level minimum or no doc, you know, obviously securing with a lien, putting that money out, collecting interest, only getting it paid off and then getting the balance back, you know, your principal balance back. So there's nothing per se stopping you. I think there's other things to consider in terms of, you know, working with an established entity that, you know, has a strong reputation has done this before, and they may have a lot more options. You know, you're kind of guy on the corner of the street, if you will, may have certain options that might fit certain people, but you go to a lender such as RCN Capital, and there may be more choices there for you that might be a better fit to your situation after you take a complete and thorough look. Michael: Okay, great. Tom: That's awesome. I think we're, we're getting close to covering all the questions we have. I guess another question, practical question is geographic footprint. So do you guys have any limitations on where you originate loans? David: Yeah, that's an excellent question. Anyone that's curious, it's a better description than here in me, you know, yap about it would be to go to rcncapital.com and see if I can get some traffic to our website. Here are capital.com and scroll down to the bottom. You'll see the map and that will show, but yeah, we can originate and close loans in the entire country everywhere except for a few States, Alaska, Oregon, Nevada, the Dakotas, Minnesota, Vermont. So the bulk of where the business is and where the volume is not nothing against those other locations where we're not currently able to do that. We have that covered. So any investor that is looking to do whether it's activity locally, or perhaps even dabble in other areas, you know, another benefit of an established entity such as RCN capital is the fact that we have that footprint nationally already. So we're already established in those areas. If you have something in Tennessee, great, but you may also have something in Oklahoma, we can do both of them. So we've got a pretty well covered. Tom: My last question has to do with a product that I'm not that familiar with, but very interested. I'm just not sure I'm interested. If you guys carry it like a revolving credit where you can add properties in and out of a facility, do you guys offer any type of products like that? And this is a self serving question. Just something that I've heard about and just interested in learning more about, David: Yeah. I mean, what I can say on that and thank you for that. It is a great question for investors with a certain level of experience, you know, a strong level of experience. If they get connected to RCN Capital and a loan officer, they can certainly take a look at pursuing what we would call a line of line of credit in the precise definition of that is probably not the best description, but we, it comes up a lot in the, in that, in those terms. And people use that to describe it. It's not exactly what it is, but we could potentially consider and look at that for someone with a certain amount of experience in the sector and has that documented and demonstrated. And what that could look at like is just use a million bucks to keep it simple. Perhaps someone being granted exposure of a million dollars every 12 month period, every annual designated period at certain terms. And in that case, they're, you know, why would it benefit them? Why would they care about that? It could be improvements in terms of speed and efficiency. If the borrower's already underwritten, ie. the entity, you know, on these short term loans in particular can only lend to a legal entity. So if that entity and the owners of it are already underwritten, then that's all locked and loaded. And now you're presenting each asset as you identify it and decide to move on it into the mix from an underwriting standpoint. So you still have to follow procedure, you know, appraisals and whatnot, but you've got some of the things out of the way to expedite the process and make it more efficient and make it a cleaner experience for your high volume, high experience clients. And that also would take into account. You may be able to add more fuel to the more logs on the fire in terms of supporting your own case, by adding in, like, if you have other things that contribute to your liquid net worth, you could provide that to perhaps support your case. If you're trying to obtain a certain amount of exposure that you're granted annually, you could look at doing things like that on. Michael: Tom you gotta get on that. Tom: I know. Yeah, definitely. David: It sounds like, Tom was thinking about that one, Tom: For sure. Yeah. Okay Michael, do you have any other questions? Michael: I think that's it for me that this has been awesome. Tom: David, this is great. Yeah. So we're going to end this David with a couple of what we call quick fire questions, and these are just general investing philosophy. It's great having smart guests, such as yourself, come on the show and just love your thoughts on this either or type of question. So are you ready to do it? David: I'm ready unless you got a bunch of trick ones in there. Tom: All straight forward ones. All right. So consolidation or diversification. David: You want me to give a quick answer? Speaker 4: All quick answers, all quick answers. Yes. You can say both. I'll always... Speaker 1: I'll say both, I always tend to, when I, if I may, when I identify a trend, I tend to favor something. If it depended on my belief in it, I tend to consolidate, I'll give you an example, crypto. I can consolidate Bitcoin. I don't need to mess around with the others, but in other scenarios, I might favor diversification. Tom I think a good way to say that is either shallow and wide or deep and narrow. David: Yeah. Tom: Deep and narrow, I like it. High property taxes or high income taxes? David: Neither Michael: That's the best answer we've had yet. Tom: High rent growth or low vacancy? David: Probably say low vacancy. On that type of thing, I like to play it more safe. Tom: Yup. Yup. Cashflow or appreciation? David: I'm going to say cashflow. Cause I look at real estate as the primary benefit to me is a hedge against the inevitable destruction of your purchasing power over time. So I feel like that will happen when a hired asset, if it's chosen properly. So I'll go for the cashflow. If you pinned the two against each other. Tom: Debt or equity? David: From the standpoint of real estate, debt. Tom: Love it. Single family or multifamily? David: Tough to go against SFR right now. Tom: I like it. Alright. Last couple of questions. Turn key or massive project? David: How cheap did you get it? Being realistic, turnkey. You know, assessing my own situation. Tom: Yeah. Midnight oil or early bird worm? David: Early bird worm Tom: Text message or email? David: Neither. No, I'm kidding. I'm either, probably either. Tom: Alright. And the last one kind of an off the wall, olive oil or butter? David: Well, I do like that butter that is allegedly made with olive oil. Tried that on a steak and that worked out pretty well, but.. Tom: I know what you're talking about. David: Yeah. It's olive oil or butter with olive oil. I'm not sure what brand it was, but I tend to use olive oil fairly consistently. So I have to be true to myself and to you and this excellent show we're on. Tom: Awesome. Well, well, that's it. You made it through the quickfire questions. Want to give you a chance to yeah. Where can people find you get a hold of you and get ahold of RCN? David: Folks can find the company at rcncapital.com, blue and white colors there. If you're Googling around looking for it, usually you'll find it. You can link up to myself. You could certainly shoot me an email if you'd like a first initial, last name dyoung@rcncapital.com. You can hunt me down on LinkedIn as well. Love to make connections with folks and expand the network and learn from people. So those are probably the best ways to get ahold of me and the company. Tom: Awesome. David. Well, thank you so much for coming on. Michael: David. Thanks so much. This was great. David: Thanks guys. Really appreciate you having me and I'd love to do it again. Appreciate it. Thanks. Speaker 1: Thanks again to David Young for answering our questions. Today's episode was brought to you by Roofstock Academy and we're running a special promotion right now. For a limited time you can receive a $100 discount with the promo code JULY4. With Roofstock Academy we have all these benefits: coaching, on demand lectures, the tools, the SFR paybook, on and on, but the Roofstock Marketplace credits just got that much sweeter. So initially it was a $750 credit when you buy, now it is a $2500 credit. So you buy Roofstock Academy and for your next 5 transactions you will $500 back at the close of your transaction. Happy Investing!
Today's podcast considers David Well's classic, No Place for Truth, the Westminster Divines answer to "What Is Sin?" and affirms that God is a God who relates.
Twenty years ago David Wood was ahead of the curve in the coaching space thanks to a workshop that led him to delve into the emotional aspects of business leadership. He is here today to discuss ways owners can use emotional intelligence to overcome the hurdles and valleys of growing a business. David is a high performance life and business coach, working solely with established entrepreneurs. He got his start on Park Avenue at the age of 23 and thought he had it made as a consulting actuary. A mandatory personal growth workshop made him realize that he was clueless about anything emotional in business. Today he uses his knowledge in his own business, Play for Real, to help entrepreneurs and business leaders push through tough scenarios with themselves and others and help them to do great things. David also is a coach trainer, mentor, author, and host of the Tough Conversations podcast. Episode Highlights: Reasons why David is speaking with us today. How he takes surface level goals and delves deeper into them. What questions entrepreneurs should ask themselves in order to get through any growth challenges in their business. David's focus on goal setting. The difference between a coach and a therapist. Why people seem so eager to move to the next thing when a sale is over. Quick coaching tips for business owners. The 4-step approach David suggests for sellers and buyers. How David's techniques can help your business and improve your life. Transcription: Mark: So a few years ago Joe I wrote a blog post on the Quiet Light blog and you can actually look this up and it's called I made a bad website acquisition. It was about a business that I bought and made some mistakes with and subsequently sold later on. At the end of that little ownership period that I had with that; it was a really small acquisition, we're talking a very small five figure level here but at the end of that period I hated that business. I hated it so much because it wasn't making any money. It was taking a bunch of my time. The logistics were a bit of a pain. And I got to the point where frankly I was willing to get rid of it for just about anything. And when we talk about the soft side of a transaction a lot of times people want to talk about the financial side and the metrics and the numbers and the financials; how do you actually juice that multiple, how do you get the value as high as you can? But so much of what we do is on that other side and that is the soft side of the transaction and understanding the arc of an entrepreneur's ownership of the business and how are you going to feel when you sold that business as well. And look before you turn it off and think this is all soft gooey stuff; this has a real impact on valuations. And I know you talked to David Wood about this, he was a business coach, because he really kind of keyed in on that as well. Joe: Yeah I know it has a tremendous impact. I like to say don't let the business outgrow you. That's generally why people sell because they've got a certain capacity and the business outgrows them; they get sick of it, they get frustrated, trends change, and they sell which is exactly what not to do. So working with a business coach like David who spends a lot of time with people in the e-commerce world helps you understand what your own personal goals are in business and in life. They're combined when you're an entrepreneur. And helps you get through those valleys and over those hurdles as you need to. David is a good friend of Ezra Firestone. I met him at Blue Ribbon Mastermind. Brad and I and Chris were there so I heard him do a fantastic presentation and I just had to connect with him afterwards and have him on the podcast. I think he can and will and has through the podcast I listened to he imparted some great wisdom when it comes to operating a business within your own capacity. Mark: Let's hear it. Let's get to it. Joe: Hey folks Joe Valley here from Quiet Light Brokerage and today I've got David Wood from Play for Real with us. David is actually a high performance life and business coach. I met him at Ezra Firestone's Blue Ribbon Mastermind event in; where were we David? St. Petersburg, Florida. David: Yeah. Joe: In January of 2019. I'm sorry 2020. David is a good friend of Ezra's and he did such an amazing presentation I wanted to have him on the podcast. Welcome to the Quiet Light Podcast David. David: Hey thank you. I'm happy to be here. Joe: Well, I'm glad you're here. We don't do fancy introductions so why don't you go ahead and give the people listening a little bit of background on yourself and what you do. David: Sure. Well I thought I was successful and I was at the age of say 23 because I was working on Park Avenue. I grew up in our country town in Australia. And here I am on Park Avenue consulting with Sony Music for the next song and I thought I pretty much got it made. I was a consulting actuary and for people who don't know what that is, we deal with financial projections going say 50 to 100 years into the future. Joe: Wow. David: And so my job was risk assessment but then I lucked into doing a personal growth program and I nearly didn't do it because they were all smiling way too much and they all wore nametags. I'm like this is very cult-y. I don't know about this but I didn't let that stop me and they cracked me open. They had me realize that I'd gotten great at systems and logic and results but I didn't know anything about vulnerability. I knew nothing about deep connection with other people and how to really influence people. Emotional Intelligence was something I hadn't even heard of. So the first half of my life was about business and results and success in that line of work and then the last half of my life has been about researching the more I still call it hippie woo-woo stuff like the touchy feely stuff. How do I make eye contact with someone? How do I be vulnerable? How do I deeply connect? So the people who come to me don't just want their business to be better. You can get a lot of business coaches for that. And they don't just want a part of their life to be better. They want everything to be to be better than it was before. So that's the short version of; oh I didn't say to in that course I got to coach somebody. Someone was really stuck about something that was destroying her marriage and I was able to hold space for her and her life changed and I got hooked. I was like this is amazing. I just spot the patterns and see what's missing and make a suggestion and she ran with it, totally revamped her marriage and her life, and I was like I can do this more than as a hobby? And this is back in ‘97 and it turned out yes you can. People were just starting to consider coaching as a career. So now I've been doing it for 20 years and I don't see any sign of stopping. Joe: You were ahead of the curve then and you're doing pretty amazing stuff now. You didn't mention that you wrote a book, that you're on stage quite often, you're on 70 podcasts last year, then Loosening Jack Canfield or John Gray did the inside cover of your book or things of that nature. You're pretty well connected with high level people but you deal with a lot of entrepreneurs as well in your coaching business, is that right? David: Yeah I'd coach entrepreneurs mainly for the last 20 years. Now I'm doing more corporate stuff, some vice presidents and also some prison work and working with prison inmates so I'm expanding but I'm an entrepreneur at heart. So I love working with entrepreneurs who are already doing great things. I don't work with just startup. You have to have a track record of success and then let's; how do you go further? Joe: The people listening are probably saying well why are we on the podcast together; why are you here? David: Yes. Joe: And when we list a business for sale oftentimes someone will say; a buyer, well if it's so great why are they selling? Or we always ask the question why they're selling. And more and more often what happens, people, is that a business outgrows the individual. And what we want people to do is understand first and foremost who they are, what they're capable, what their likes are, what their dislikes are, what drives them, what fills the cup and makes them happy. And that's a lot of what you do in your day to day work, David, is that correct? David: Yeah. Joe: Okay. David: Yeah I get people who have got surface level goals. They come to me like they want to be a better leader. They want to learn how to manage their team or something like that. And that's fine. Let's start there. But then I want to know what's really going to have you be happy. And some people know and they just don't think it's possible or they haven't put time and attention on making it happen. Some people haven't really asked themselves the question; how could my life be better? And that's the sum total of my initial sessions with a client; how can your life be better? Sometimes it's a business goal. If my business increased by 30%, that would do a lot for me financially and my family and then my life would be better. Okay maybe I'll buy that. But normally there are other things like what if my relationship with my partner was deeper? What if my kids opened up to me and talked to me about their life? What if I had the health that I wanted? So yeah I like digging into those questions like how could it be better? Joe: How can the people listening today sort of figure out what questions to ask themselves? Imagine we've got an audience that it's got a healthy mix of entrepreneurs that someday may sell their business. They're learning about buying and selling and preparing the business for sale. And then the other half of the audience might be those that are thinking you know what I'm going to buy one of these someday because they're unhappy in the corporate world or they've sold one and they don't want to take the risk of building another so they're choosing to buy. But let's focus first on those people that are struggling with the business that they have; they've grown it, they bootstrapped it, it's growing like crazy, and they're just trying to keep up. How does one identify what their own comfort level is with the size of the business or the staff or the growth? Because a lot of what we deal with are people that wait too long that things get pretty miserable because it's grown to the point where it's beyond their comfort level. They don't want to manage people. Mark and I had this conversation this morning and he's like we're doing an organizational chart here at Quiet Light Brokerage and I'm in a particular place mark and we're all in different places. The key center of our organization is the advisors; our team of advisers. And I'm straddling a couple of areas, Mark is straddling a couple of areas and we said to each other we have the right as entrepreneurs to do what makes us happy. We want to choose that path. How does one identify what it is that makes them happy? Is there a is there a process that that they would go through in terms of goal setting or asking questions of themselves and I will just stop rambling now answer that question help me out. David: So the question is how can people identify how they can be happy; what are the right questions they can ask themselves? And I love this, on 75 interviews last year no one's really asked me this question. So what I did is I went straight to my website and I'll read out some of the questions. I have a life assessment that anyone can take. And if you like we can give it to people at the end of the show. They can go and fill it in but I'll read out some of the questions. I have people in this assessment rate your life areas out of 10; business career fulfillment, wealth and money, your key relationship, health and peace. I even include relationship with yourself; like how much do you like yourself. So these are a few of the areas, there are a few more which I don't want to steal all the thunder. I'll leave some for people to find when they go and fill it in. And I have people rate them out of ten and that helps them look at oh wow this area is really a three; like my health and peace is a three, what's going on there? Or my relationship with my partner is like a six. Is that really okay with me? Like am I really going to leave the rest of my life at a six? So that's the first point and then I have people rate coaching areas; how about how are you doing with real goals? I'd like to talk about; and you heard this in my presentation at Ezra's Blue Ribbon, GPA, goals planning and action. So out of ten how are you doing with setting real goals, having a real plan, and taking real action? A lot of people would like to be more focused. We're kind of like a monkey on crack when it comes to getting work done. How about your daring, your caring, your decisiveness? So you rate these out of 10 and by the way this form doubles as prep if anyone wants to do a session with me. I use this as an intake because I want to go straight to wow you're doing great here, here, here, here, and here are three areas that look like they could be doing better. Which of these do you want to focus on? Joe: I think the real goals thing is amazing and critical and so obvious that everybody should be doing it but I don't think they do. I read decades ago; right David, we both got some gray on the chin that Harvard; I took a little class at Harvard, half the kids wrote down their goals and half didn't. Those that wrote down their goals were something like ten times as wealthy or successful and happy as those that didn't. One of the things that we're trying to do here and having you on is part of that mind shift. I want people to stop asking the question how much is my business worth, how much can I sell my business for, I'm ready to some business how much can I, how much can I? Instead set goals and say in three years I want to sell my business for X and then reverse engineer the pathway to that and understanding, gaining the knowledge on valuations and setting goals to that pathway exit. Are you working with people in terms of that goal section of their life whether it's personal, with their partner, with their business, with whatever it is that is weak on that scale and helping them with goals or do you just sort of act in a way almost, and what's the difference between a therapist and a life coach and a business coach in this situation? David: All right we've got three areas I want to address here. We'll see if I can track and remember all of them. The first one… Joe: I won't remember them all so don't worry about it. David: The first one is for me I like your process in this many years I want to sell my business for X. I think that's missing a key step. I would say firstly how do you want to feel in three years? It's incredible; and you can do this when you're doing a New Year's visioning session if you ever do that kind of thing. Like don't set goals first, set feeling goals. I want to feel this. And then you can set some goals that will help you feel that. I want to feel at peace. I want to feel deeply in love with my partner. I want to feel joy as I walk down the street and look at strangers. Those aren't some bad goals; actually this came off the top of my head. And then all right to feel like that what would I need to be doing? And I looked at well I love coaching. I've wrote this down; it was three or four years ago, I need to be more coaching and training because I'm inspired when that happens and I want to feel inspired. It's like oh wow I didn't know that. So it is a goal. So first step, how do I want to feel, secondly what do you need in your life to feel that and there might be a financial component to that. All right I need at minimum this amount of money to support these goals that are going to have me feel good. And you probably found this when you coach your clients, it might be less money than you thought the minimum. They have done some studies that show that first; I don't know how much it is 50 or 60 grand can really do a lot to provide happiness in the year and after that it drops way off because you need your own food and you want shelter and you want some basic peace. But after that that poor show that extra trip or vacation isn't going to do that much at all. So that's the first thing. And then there was a second component. I know I remember the therapy component but what was the other component to your question? Joe: I told you I wouldn't remember David. Come on, I'm serious. I meant it. David: Oh that's right. I wanted to say some people come to me ready with goals. They're like I know what I want I'm just not getting there fast enough. So we might do brainstorming or we might have to strategize a plan and they might just need some accountability to put attention on it. All right every week I'm going to do it. Other people it might take three to six sessions to peel the onion and to just uncover. They may not know yet. Like people would come to me with I want this this and this, six months later we've uncovered that; I'm working with an executive right now who finally has seen that he's really arrogant and he thinks he's smarter than everybody else which may be true but it's not serving him. He didn't come to me with that but it's a merge and it's impacting all of his relationships not just at work. Joe: Did he come to that realization and share it with you or did you go you know you think you're; how do you come about that realization? David: Well, sometimes I might gently point it out and I have that privilege because they're paying me. So I can say you know I think I have some feedback that might not be easy to hear but it might be very valuable, would you like to hear it? You're never going to get a no from someone who's paying you to hear your idea. But he came to me. He said you know what I think I can be a bit of a jerk and we; actually this was really fun. Sometimes you get to have fun in coaching. I said to him there's a chance. I know this is hippie woo-woo but I think you could really make a big difference for you if you're willing. It comes from the Himalayas and you're willing to trust me on this. He said all right. So I took him through this Himalayan chant. It starts with; maybe you've heard it, it starts with Owa Tajer Kiam and we did this and we kept on going and he got faster and faster saying it with me until he realized he was saying oh what a jerk I am, oh what a jerk I am, oh what a jerk I am. And when he finally got it he laughed so hard and that's part of my style is let's bring some humor to it. Yeah, you can be a jerk, so can I. When I'm frustrated I'll use my intelligence to belittle the waiter and they may not even know. And then I'll feel bad about it. But we're getting off track. So some people have a sense of what they want, other people it's going to take some time to uncover and I find that really fun and fascinating. And then you said how is coaching different from therapy. It's very contentious. A therapist will argue about this but once I heard this metaphor a therapist will help a man with a broken leg to walk again and a coach will help that man to run the four minute mile. Joe: Okay. That's not mental therapy though that's physical therapy. How do you differ from somebody sitting down and saying I'm unhappy with my life? David: Well the metaphor is more about someone who's really, really struggling to go from bad to okay versus helping someone to go from okay to good or from good to great. Joe: Okay. And you're the okay to good or good to great. David: Yeah, that's my target market. Now there are coaches who might be willing to work with someone who's really struggling financially. For example if someone's got a lot of historical stuff trauma and baggage from that; and I'm one of them, I have no judgment about that. That's not me. I would say a therapist could spend time with you to help you unpack and bring up all those feelings from the past and like that. I'm more interested in what do you want and what are you going to do about it and there is some overlap because sometimes people have limiting beliefs. And I've got one vice president who said I think I've got some limiting beliefs that are holding me back, can you help me with those? I'm like yeah we can bust those open. But I'm not going to do a lot of how was it when your father treated you this way and whatever; that's not my style. I'll refer someone to a therapist if it looks like there's some old stuff that's really holding them back. And a disclaimer and a plug for therapists there are some therapists who will work with people who are doing just fine and help them go to great. So it's a broad brush painting with right now. Joe: But I got to tell you in the future audience you may hear me say how do you want to feel in three years when you sell your business instead of what's your financial goal. What do you want to exit for? Inaudible[00:21:40.0] a combination of both. Because I've got to tell you people are this is their baby they've built it up and sometimes they're sad to sell it. But I'm interviewing people right now for the purposes of writing a book. Yes this is the second time I've mentioned this on the podcast and I will not be obnoxious and plug it all the time but it's fascinating. The idea is when that wire hits your account and you can do it with your phone now and you see all of those zeros in your bank account for the first time, what was that feeling like is the question that I asked. And the feeling was okay, that's good. Now I've got to get to work and helping with the transition of the business and keep going. It wasn't champagne popping and jubilation and things of that nature. And do you think that's because; and I heard this literally at three out of the five interviews that I've done so far. Do you think that is just because they're caught up in time focused on the work at hand versus setting a financial and feeling goal when someone exits their business? David: I think the question is why are people so quick to move on to the next thing and they're not celebrating and enjoying? Joe: Yeah I guess so. Thank you. You do a better job of reframing my questions than I do. Thank you. David: My pleasure. Firstly tell me do you have a working title for your book? Joe: I do. We talked about it. That's right. David: I think there was one line you said and like oh you got to hold on to that line. I can't remember what it was. Joe: We did. I've settled on; and this is the part where I'm either an idiot or brilliant. I sent out two title options; I already said it to everybody here, one was Incredible Exits which is a series we use here on the podcast for people who have sold their businesses. And the other was Exitpreneur. David: That's the one I remember, yeah. Joe: That's the one that stuck. Right. So I think probably 24 out of 25 people said Incredible Exits, go with it, it's just that. David: Do you remember the book title that I suggested? Joe: Yes Making Exit Sexy Again or something along that lines. David: No, that might be the subtitle but you said to me something like the real money is in the something. Joe: It's when you exit the business. Yeah the real money is when you exit. And then yes… David: It was nothing like where the real money is. I forgot what it was but I was very excited about it at the time. I really am. Joe: We're Making Financial Sexy Again that was the subtitle that you suggested. David: Your financials; because you said the real money is in the financials and people might get that and so you can make it sexy. Joe: Or eyes bleed. Well I ended up settling on The Exitpreneurs Playbook with the whole goal of setting a goal and reverse engineering your pathway to that. But we might add some feelings in that goal. David: Yeah. So speaking about reverse engineering I'll comment on why I think we're so quick to skip over the celebration but firstly I want to tweak or reframe something you said. I agree with you it would be good to ask them how do you want to feel when you sell the business. So that's great. I think that would be a good move. And what I'm talking about that I want to clarify it is much broader than that. I'm saying how do you want to feel in your life generally. Joe: Yeah. David: And so just for listeners to make sure that that's clear; how do you want to feel generally when you wake up, as you go about the day, when you go to bed. How do you want to feel and what kind of activities and things actually have you feel that and then reverse engineer the life of that. And you may find that money would be a component and that's where Joe can come in and help you maximize what you get for your business to support what you've already created in terms of your life goals. Now why I think we're so quick to skip and I'm one of them once a while this is I say why we are quick to skip the celebration and I got this from Dan Sullivan I think; a Strategic Coach. So we're looking forward, that's how we're oriented. We're looking forward and we constantly see the gap between where we are and where we want to be. And that's great that's the ego's job because it wants to put food on the table. But when we do that all we're going to see constantly are gaps. We're constantly going to see what there is to do and it can be overwhelming and we miss the celebration. If we want to feel good and acknowledge ourselves for how far we've come we have to turn around. Metaphorically look backwards and see how far we've come and that's the gain. So he talks about Gain and Gap and I'm always like all right that was good. Now what's next? And I have to slow down and even say to people we're celebrating or I'm going to pop some champagne or we're going to dinner or dinner's on me because I want to really acknowledge this win in my life that for example my health has been pretty rough for quite a while and I went out three times last week to go and be with people and get limbic connection and that's a win. So we can slow down and celebrate that and say wow look how great that is instead of looking forward to go there's still so much to do health wise to heal. So does that answer your question? Joe: It does. Thank you. Have you got any quick tips for those that are too afraid to hire a personal and business and life coach; have you got any quick tips in terms of somebody that's caught up in that grind every single day just trying to keep the wheels on the bus and not run out of inventory and deal with the coronavirus now and tariffs and so on and so forth? How do they kind of slow down and focus and appreciate what it is that they've got so that they can look forward with a clear vision? David: Yeah well I would recommend filling in the life assessment at PlayforReal.life. It'd take you five or 10 minutes and it's great information to have about your life. And then you can see oh maybe I want to work on the real goals, I'm going to sit down and do an hour session with myself and set some specific measurable targets that will have me feel great. So that's one thing. I like to talk about truth and daring in particular. Joe: I played that as a kid. David: Yeah well that's Truth or Dare. Joe: I know, I know. David: I like truth and dare. I don't know if those are quick tips but I think the more we speak out truth the better life gets the more attractive we get. We might rock the boat a few times and have some teething pains but I think… Joe: So speaking the truth to those around you, to yourself, is a daring thing to do? David: Most of us have grown up learning to hide things. We learn it covertly and subconsciously. We're like I'm just going to keep all this stuff in here and I'll show the world what's safe. And I get that and sometimes that's appropriate. But nine out of 10 times I think it separates us and a great leadership move and personal growth move is to share the things that are a little edgy. Hey when you said that I felt disappointed or I notice I want us to feel better working together and it feels strange and I don't know what it is to talk about it. Joe: It's hard to initiate that. David: Yeah. Joe: How do you initiate that? I remember I was a kid; I was in my 20s and I was volunteering at this theater in Portland, Maine and doing a massive renovation. It was going to end up being a concert venue and I volunteered to work my tail off so that I could become an employee of the company when it finally opened. And I got that opportunity and it really pissed off somebody else and we weren't done yet. We still had another three or four weeks and that person he could have been bumping into me with his shoulder because he was so upset he would have. It was that kind of you know mental stare and whatnot and finally I just said hey what have I done to upset and offend you? And it was hard for me to figure out what to say but it worked and we became friends afterwards oddly enough. And so I did; I was truthful and confronted him I dared to and it worked out very well but it's very hard to do. David: Yeah. Joe: How do you bridge that gap and say it? David: Well the biggest obstacle is most people aren't even aware of those troops that are swimming around in their subconscious. They're just like that guy's a dick. Or that I don't like her or I'm just not going to work with him again. He's unreliable, right? We don't even see that I could speak up and possibly change this. So that's the first thing is become aware of it. And I'm working on an app called it; that will help you do a true thought to try and work out oh what are the truths that I could say if I felt courageous? Secondly once you work it out say it's like that guy and you're feeling like things are strained and you want to bring up the conversation, the thing that gets in the way is lack of clarity. You're not aware yet what your hope or intention is like what's the good that could come out of it? You haven't generated that yet. So it's a bit murky. You're not totally clear what you're afraid of. It's probably something like he might get defensive or it might be really awkward and might make things worse. But that's not clear in the mind. So I have a free download on the on the website. It's called A Four Step Tough Conversations Blueprint and the worksheet will help you get clear, it'll even ask you is there a request you could make; something they could do that would improve the situation? so you get clarity then you're going to be much more likely to have the conversation because like oh now I know what's going on. Before I was just this jumble of I just didn't like what was happening. Then once you got the clarity you can follow the four steps which give you to them in a nutshell. You asked permission, don't just dump the conversation; can I talk to you about something for a few minutes? You share one hope and one fear. My hope is that we'll feel more connected after it because I'm feeling like things are a little strange now my hesitation is I might make it worse. But are you willing; can I share the issue? And then three you share the issue and make your request. My request would be just that you let me know what's going on or if there's any way I can improve the situation. Joe: You make it sound very easy. David: Well I've had a lot of practice doing them and talking about it and the worksheet really does make it a lot easier. I'm not saying you're not going to feel uncomfortable and I'm not saying there isn't risk. That's what makes it a little bit exciting but your chances of it going better are much clearer because you'll have the steps. You can even take a printout with you and say I wrote down some talking points because I wanted to do a good job at this. And then the step four; super important, is get curious and listen. How is this from your side? What are you experiencing? Do you have a better idea than what I do? And then you shut up and you listen and then you'll work it out together. Joe: I love it. Can you summarize for us as we're wrapping up and running out of time how is it David that this is helpful for people in business; the entrepreneurs that are here in the audience? David: Oh my God. It's helpful for everyone but specifically in business you want your staff to be motivated and empowered. I had my assistant quit out of nowhere. She did only three things that weren't working for her and she didn't have the training as most people don't know how to speak up. She didn't even consider a conversation was possible. So by you learning these techniques and practicing it you can model it for others so that you can have more communication among your team. You become more attractive as a leader. You're going to build more loyalty that people want to work with you. They will have a sense that they can trust you. You'll have more customers because your energy is going to shift. And they'll be like oh wow; like Ezra, right? I say one of the reasons that people go and pay and be part of Blue Ribbon Mastermind is because of who Ezra is and how he shows up. And he's learned how to have these conversations and speak truth. So if we had more time I could probably go into 10 more benefits but here's one final benefit. You will feel better and you will like yourself more if you're speaking truth. Joe: Yeah that's a pretty huge benefit, that's called being happy. So I'm going to go ahead and download it myself. I know you and I are going to chat personally next week and I'm very confident that I will actually become one of your clients and maybe we'll have you back on and talk about my personal experience and how we went through that process and what it's made; a difference for me, in my life here at Quiet Light Brokerage. All right. Any last minute thoughts and then of course again the URL at how people reach you if they want to touch base and possibly have a coaching session or just learn more from what you do on the website. David: Yeah. Thank you. So my last thoughts are you're doing great; wherever you are, whatever you're doing, life is incredibly complex. I'm going to do a rant sometime on this. Things are designed to break down. That's how it's going to work. And you made it this far. You're doing great. You don't need anything else. That's the number one thing. Secondly there's always room for more; for things to be better. That's the game I'm playing. How I do better and get the most out of this this life. And so if you want to practice speaking a truth more maybe having a few tough conversations I think that'll help. Setting goals and really we didn't talk about laser focused action but those are some things that can help. My invitation, if people want to find out more or get in touch with me PlayforReal.life is my website and there are three cool things you can do at that site all at the same link. One you can download this blueprint if you want to have a blueprint; a roadmap for your tough conversations. Secondly I have my own podcast if you want to listen to me as well as Joe. I've got Tough Conversations with David Wood, you can subscribe at the website. And the third thing if something resonated for you on this call and you'll like I want life to be better. I want business to be better and if you think you might be coachable like you're open to input see if you qualify for a discovery session. If you qualify I don't charge for that one because it's fun and too because it's how I find the right people to work with long term. We'll actually dive into your life and business and create a plan. And if you want to implement it on your own, keep me posted. Let me know how it goes and if we both believe that coaching can have a big impact we'll talk about setting up coaching and that's all at PlayforReal.life. Joe: All right. Well I'm looking forward to it myself David. Thanks for coming on the show I appreciate it. And I hope you can help a lot of people in the audience just be happier in life and happier and more successful in business. Thank you very much. David: My pleasure Joe. Thank you. Links and Resources: Play For Real David's Podcast
How do handwritten notes help businesses improve outbound meeting books, increase customer retention and boost customer loyalty? This week on The Inbound Success Podcast, Handwrytten Founder David Wachs explains how combining handwritten notes with inbound marketing can yield incredible results, and how his company is helping customers automate and send handwritten notes at scale. Check out the episode to here exactly how Handwrytten works and how companies large and small are using it to increase sales and improve customer retention. Highlights from my conversation with David include: David is the Founder of Handwrytten, which enables companies to automate handwritten notes at scale. Handwrytten has a website and smartphone app interface, as well as integrations with Salesforce, HubSpot and Zapier. The notes that Handwrytten creates are generated using robots that hold real pilot G2 ballpoint pens, so they look incredibly authentic. Handwrytten is growing at about 300% a year. Companies use Handwrytten in three different ways: 1) sending thank you notes to customers; 2) ecommerce companies include notes in-box with new orders; and 3) outbound outreach. Handwrytten clients that use handwritten notes for outbound meeting booking requests get 3x to 4x more responses, which tracks with the fact that handwritten envelopes get opened three to four times more than typed ones do. One of the companies ecommerce clients has improved customer retention by 5 to 10% by including handwritten notes in their boxes. Several other clients have gotten valuable social proof when their customers post pictures of the handwritten notes they receive on their social media accounts, driving incredible brand loyalty. Handwrytten offers a number of options for customizing notes, from custom handwriting fonts, to inserting your business card or a gift card, etc Resources from this episode: Visit the Handwrytten website Follow David on Twitter Connect with David on LinkedIn Request samples from Handwrytten Follow Handwrytten on Instagram Follow Handwrytten on Pinterest Listen to the podcast to learn how companies are using automated handwritten notes to get better inbound marketing results at scale. Transcript Kathleen Booth (Host): Welcome back to the Inbound Success Podcast. I'm your host Kathleen Booth and this week my guest is David Wachs who is the founder of Handwrytten. Welcome David. David Wachs (Guest): Thank you very much Kathleen. I'm thrilled to be here. David and Kathleen recording this episode. Kathleen: I am really excited to have you here and I say that every week. I do really mean it, but I'm really excited for this one and I have to share this story with my listeners because how this happened I think is so serendipitous. Not that long ago, a few weeks ago, I was sitting around my dining room table with my husband on a Sunday morning and I subscribe to the Washington Post, which I get once a week, and I read this article in the Washington Post that mentioned this company called Handwrytten and talked about what it was doing and how it helps businesses send handwritten notes. I stopped him and I was like, "You have to read this. This is really interesting. We should check this out." Not more than one week later, David sends me a LinkedIn message saying, "Hey Kathleen, I've been listening to your podcast and I would love to come on." I was like, wait, what? This is the same person. How did that just happen? Anyway, that's my story of how David and I connected. David, can you tell my listeners a little bit about yourself, Handwrytten, and what led you to start this business because I think it's really cool? About David Wachs and Handwrytten David: Well thank you very much and it really is an honor to be here. I am a listener to the show and I've learned a lot and because of it I am now an Inc. contributor because I listened to one of your episodes where you talked about getting your own content out there in a number of ways as well as a lot of other stuff. Thank you for putting on this wonderful podcast. I've actually been doing Handwrytten - we are a six year old startup - I've been doing this for six years now and I have to apologize, there's some construction noise in the background that I have no control over, so hopefully ... Kathleen: I don't hear anything, but if we hear a beep, beep, beep, we'll hope that nobody's backing up into your office. David: I started this six years ago. Prior to Handwrytten, and this is important as to why I started Handwrytten, I had a company that did text messaging and in that business we'd send millions of text messages a day for large brands like Abercrombie and Fitch, ToysRUs, Chicago Tribune and others. What I realized from that, while all that marketing worked and people came out in droves to tropical smoothie cafe and Abercrombie and those types of things, when we sent the messages, they were quickly forgotten and deleted. I started looking around when it was time to exit Sell It - the name of the company was Sell It - when I was looking around for other opportunities and I walk into my sales people's offices and I'd see handwritten notes on display in their offices. Not only were they kept, but they were treasured. I think a lot of this is because the average office worker gets 147 or 150 emails a day. You typically get about 40 to 50 text messages a day, something crazy like that. In all that, and with new tools, and I know HubSpot's a great tool, but tools like HubSpot and all the rest, it's easier and easier to send all these emails and electronic forms of communication. After a while it all just becomes noise. When somebody takes the time to send you a handwritten note, it really stands out as something unique and thoughtful and cherish. I thought, gee, I'm too lazy to actually send handwritten notes. For my mom's birthday, I would go to the Walgreens, buy a greeting card, promised myself I'd mail it, stick it in my briefcase, and never get around to it because I wouldn't get a stamp, and I'd never sit down to write it. Kathleen: I may or may not have that problem in common with you. David: This happened over and over and in all my suitcases and briefcases, I find banged up birthday cards and stuff. I thought there has to be a way to automate this. That's what led us to start Handwrytten, was being able to take an offline form of communication and make it scale in the same way that emails and texts and tweets and all that does. We do that through technology in a few forms. On the front-end or what you use, we have a website where you can type in one handwritten note or upload a spreadsheet of 10,000. We've got iPhone apps and Android apps mostly for consumers, but they can be used for businesses as well. Then we have a salesforce.com integration. Directly from Salesforce, you can send notes and track them. HubSpot CRM integration, and then Zapier integration. All these methods are trying to turn our software really into a platform where you can send handwritten notes wherever you want and even better, hopefully automate that so you don't even have to think about it. Then on the other side, the way we fulfill your orders, is we have now about 85 robots that we build here in our facility in Phoenix, Arizona. Each robot holds a real pen. It's a pilot G2 ballpoint pen. You can buy them at Staples, and it writes your note out just like you would. In fact it's no faster, maybe a little bit slower than you are, but it doesn't take any breaks. We're constantly building robots to keep up with demand. We don't sell the robots or lease them out, we just keep building them and putting them on racks in our facility here. We've got about 85 of those. They're pretty cool. They're 3D printed and laser cut and there's all sorts of cool technologies that I've learned about throughout this process. When the notes come off the line, if I'm staring at some of the notes that might have the handwriting styles that I am not familiar with, perhaps it's a handwriting style of like a client and we've custom made it, I am flabbergasted because it looks so real. I see it coming off the machine and I can't tell the difference. Anyway, we're doing about a hundred thousand last month. December was a very busy month. We did about 115,000 of those notes. We've been growing at about 300% a year, so after six years we're finally hitting our stride. It was a long curve, but it's been a very interesting process because we have clients that range the gamut. They range from individual realtors and mortgage brokers all the way up to high-end Italian goods manufacturers that sends us with their quarterly catalog. I'm happy to talk about all those. In a nutshell, if I had to segment how clients use us, they really use us in three different ways. They use us for thank you notes or correspondence to existing clients. That is if you buy a home or if you buy a handbag or whatever, we will package up a handwritten note with a handwritten envelope and then mail it out to you. The second way is we do in-box. For large online mattress companies or meal box companies, when you open up that meal box or that mattress box, you might find a handwritten note sitting at the top of that package that says thank you so much for your purchase. We all really care about what you think. Review us on Amazon, Yelp, Trustpilot, or whatever that is, or refer us to your friends. We do a lot of that. Then the third is the outbound outreach, such as a jewelry store. They might be opening up in a new location. We'll do a database pull of all the homes in that area that meets certain revenue criteria and then send them all a handwritten note. Now that is very expensive because you're paying for a real forever stamp. Unlike a junk mail piece, which is just printed, we have to start at that level. We have to print something, print the stationary, and then we have to write on top of it. It's never going to be as cheap as a junk mail piece, but it also gets opened substantially more frequently and I can talk about that. Those are the three ways: inbox, send via the mail to existing clients and customers, and then outreach to new prospects, but the new prospects is rather small just because it is so expensive. Kathleen: I have so many questions I want to ask you. David: Go for it. How do handwritten notes fit in with digital marketing? Kathleen: I'm about to ask my question, but before I do, I want to let everyone who's listening know you're going to notice that it sounds a little different because David and I were talking and we heard a little echo on his end. We've switched gears and he's called in so that we can give you guys better audio. That's why, if things sound a little different, you're not going crazy. What I wanted to ask you, David, I think it's so fascinating what you're doing and I want to zoom out and start big picture, which is that, so much of, when we talk about inbound marketing these days, we're almost 99% of the time we're talking digital. You've almost, everyone else is going right you're going left. You've gone really back and you're investing in this very traditional form of, I don't even know if most people would call it marketing. Handwritten letters. It's a very old school approach. Talk a little bit about, if you would, how you see that fitting in with digital marketing or the future of marketing in general. David: Yeah, and I hope everybody can hear me. I think as everything's gone digital people are really craving human connection and they can't go to the store now and know that person that sold them the good in China on Amazon. They want to feel like there is a human on the other end of that Amazon shipping box. That's really where we step in. When I started this company six years ago, the tagline was and still is: quality cards, your words in pen and ink. Really we were quality cards first because we thought everybody wanted that tactile experience. That's certainly part of it, but how does this fit into digital marketing? Well we think marketing is marketing and sales is sales and you have to have a holistic cross channel approach. When you visit the Handwrytten website, and obviously this is a very specific example because it has to do with us, but when you visit the Handwrytten website and you request handwriting samples, that triggers a whole Zapier flow that obviously includes a handwritten note that gets sent out to you automatically. We do this a lot for insurance firms and other people as well. The same website form interaction flow. On top of that, you also get emails and you get phone calls from us. I don't see Handwrytten the company being any different than anybody else. If you're looking to reach out to your clients, whether they're inbound leads or outbound prospects, you want to have a multichannel approach. Not everybody quite frankly connects online. For example, we're working with some healthcare brands and they're trying to go after Medicare seniors and they're finding a lot of these patients aren't responding to emails. By sending them a handwritten note to get them to come into the doctor or sign up to their plan or whatever it is, it's able to appeal to a different demographic. David: Also, there is definitely a novelty factor. I think the average person receives between one and two actual handwritten notes, or we're an actual handwritten note too, handwritten notes a month. While you might get hundreds of junk mail pieces and tens of thousands of emails during that time, this is a very different piece of mail that you're going to receive. I think it can apply almost universally. People say, who are your clients? We say it's anybody that wants to use the mail. That's really what it is. I don't know if I'm answering your question, but I think whether it's an inbound campaign or an outbound communication process that you're trying to build, you have to think about voice and you have to think about obviously email and perhaps social, but you should also think about what's your mail strategy and does that mail strategy include handwritten notes. Kathleen: Yeah. It's interesting to me because I've been observing what's happening with marketing and with consumer behavior and there definitely is a little bit of a craving. I think I agree with you for things that harken back to a different time because we have gotten into this era of everything being so digital and so disconnected in terms of, you're not necessarily talking to a real person and everything's very automated. I think it's interesting that there's this resurrection of the handwritten letter at this time. I also think it's interesting as the parent of a 13-year-old that kids that age are not being taught cursive in school anymore and I can see where the prospect, especially for younger people coming into the workforce, the prospect of sitting down and having to spend time writing out notes, cards, letters, what have you, seems daunting because they're not really taught to write the way that perhaps somebody my age was when we went through school. Examples of companies using handwritten notes in their marketing David: Yeah, absolutely. This stuff does work. We know that handwritten envelopes, forget about the actual note itself, but the handwritten envelope gets opened three times as frequently as a printed envelope. We have clients that are doing outbound meeting booking requests, and they get about a three to four X response right there versus sending out email blasts. We've got Team Rubicon, which is one of the...Unfortunately most clients don't want us to mention who they are, but we have a few examples that do. Nobody wants to be known as sending notes through us, but Team Rubicon, it's a nonprofit organization and they've been able to improve their redonation rates substantially. A meal box subscription is able to increase its customer retention by 5% to 10%, which was moving the needle for them. Just the simple thing of including this little note in the box has had some really cool results. Another side effect is thanks to Instagram and pint-, I guess more Instagram and Twitter, people are tweeting and Instagram sharing the notes they receive. Another client that I'm allowed to mention is a VYNL, V. Y. N. L. They're a record subscription. They are perfect for us because they're old school records and we're old school handwritten notes and a lot of people will Instagram and tweet pictures of the handwritten notes they received from VYNL. What's so amazing about VYNL is each note is individually curated for the recipient. it's like, "Hey Kathleen, I saw on Spotify you listen to whomever, because you're listening to that band we sent you these two other records." Then that note gets written out by us and then every day we ship notes to VYNL and they insert them with records. It's pretty cool. There is that Instagramming, tweeting element, which gets back to your online marketing strategy. What's crazy is we work with one client that runs a huge, one of the most popular daily YouTube shows, and they were trying to create a fan club basically, and part of that $5 admission to the fan club, you get a handwritten note from the stars of the video. People were complaining if they didn't get their handwritten note fast enough, which was crazy. They'd see all these handwritten notes online and the YouTube group didn't change it up per person. Pretty much the same note everybody got, but they loved it so much that they would complain if they didn't get that note fast enough. Oftentimes, I mean the vast majority of the times it had nothing to do with us. It was just the post office or a bad address or whatever, but it was really interesting to see that. I think all of this just comes down to customer experience management and improving that process for the individual because they feel so genericized by everything else. We have one client that does snack boxes for offices. You could sign up and get a box of granola and chips and whatever else and they'll send it to you on a monthly basis. What they found was if they screwed up your order on your snack, and then they followed up with sending another free snack box with the handwritten note, now granted the free snacks play a huge part in this, they follow up with a free snack box and the handwritten note, your loyalty was much higher than if they never screwed up at all. Then they actually started screwing up on purpose. Kathleen: That's hysterical. David: Yeah, because they found that it added so much value to have that experience where you reprove yourself to the clients. That was super interesting to us as well. Kathleen:That's incredible. I don't know whether I feel like it's just sad or exciting that people are so thrilled to get a handwritten note that the tweet it. It's sad in the sense that it's become a lost art, truly. I still do force my kids to send handwritten thank you notes after Christmas. It's so funny because some of them resist and don't necessarily always do it. The younger ones I can stand over and force them and they're always like, why? Why do I have to do it? No one does this anymore. I'm like, you will do it. David: That's exactly why they should do it is because nobody does it anymore. Customizing the handwriting for your notes Kathleen: Exactly. Well, that's neat. Now I want to switch gears for a second and talk about, somebody listening and they're like, this sounds really interesting and I might want to do it. You said something earlier that really peaked my interest, which is that you can customize the handwriting. Talk to me about that because that I did not realize and that is a game changer. David: Yeah, so we have two options there. One, you can use any of our pre-canned fonts. I shouldn't call them fonts, handwriting styles. You can find them on Handwrytten.com and those, I think we're up to 18 currently, and they range from overly fancy Jenna, to compact Lulu, to very blocky, to everything in between. Most clients can get by with those. If you want to go and actually have your own handwriting style made, it is a process. It's really an art form. We have two people here. That's all they do is generate these handwriting styles. It's not cheap. Relatively, I guess it's cheap. It's about a thousand dollars one time fee, but it takes several days for us to perfect that style because it's not just writing out the alphabet and writing out capitals and lowercase, but it's writing six copies of each letter, and then writing a ligature combinations, which are like two O's together, two L's together, two T's, because the way you'd write two T's, would you cross them with one line. How do your double O's look? Do you loop those together? All that type of stuff gets taken to account and then the end result is something that looks pretty darn close to your own handwriting. For a much lower fee of a thousand, instead of that, for $250 we can just do your signature and then you could just insert that in any note. The thousand dollars does include the signature. You get it for "free" there. We do have about 60 to 65 clients that have done that. The vast majority of our clients just use one of our, I don't even have my own custom style, I just use one on the website. Kathleen: Right, the cobbler's child. Right? David: Yeah. Yeah, exactly. We didn't even send out Christmas cards this year for the same reason. We were too busy sending everybody else's. That's how all that works. I will say, like I said earlier, they do look, overall the biggest question we got is, we get a few questions, but the number one question is, does it look real? I would say on some of those to me it fools me even, but if I were to hand you a handwritten note and I say, "Hey Kathleen, did you receive my handwritten note?" You'd say, "Absolutely. Looks great. Thank you so much for thinking about me." If I said to you, "Hey Kathleen, what did you think of that handwritten note? Could you tell it's written by a robot?" If I asked you that it's going to change your viewing of that handwritten note entirely. At that point maybe 50/50 you might determine, oh wow, at the bottom it looks like that. Oh, at the top or something like that. Kathleen: Right. The lines are very clean. That's the one thing I noticed. When I write, I'm all over the place, but that's the only tell to me is that it's very linear, I don't know if that's the word, but... David: Yeah. We're getting there. On that way we actually have two different types of what we call jitter. We have a left margin jitter so that the left margin moves in and out every line. It doesn't look like you started the characters at the same spot. Then we also have, and maybe some of these aren't showing up in the samples on the website, but we do jittering. Then the other type of jitter we do is interline jitter. One line to the next below it is going to have a different spacing than the line below that. We vary that on a line-by-line basis. We do not angle those lines because that would look overly done. That jitter amount is incredibly subtle because we find people aren't super close then super far then super close. It's within only a couple of points per line that we jitter both of those, but we do try to make it subtle enough where, it's not going to look too perfect with a hard edge on the left side of the screen. Kathleen: This is totally fascinating to me. It sounds like you guys have studied human behavior as regards how people write notes with an incredible level of detail. I will say that to me, $1,000 to have a custom font made for your handwriting seems incredibly reasonable if you're going to do any volume. That pays for itself very quickly. Having said that, it's really funny because I'm on your site right now looking at the handwriting samples and I've determined that I am somewhere in between messy Michael and darlin Darlene. David: Yeah. All the styles are actually, this is where we become a small company all of a sudden, all the styles are named after either me and my family. I am casual David, even though that's not my handwriting, or office workers. It's down to the point where even my dog, who's the office dog compact to Lulu because she's six pounds and compact, has her own handwriting style there. The real popular ones, or my favorites are, tenacious Nick, chill Charity, dapper Will. They all look really great and what's nice about if you choose one of these standard 18 handwriting styles, we're constantly refining those styles and just making sure they look better and better. For example, with the very formal cursive styles, they look wonderful, but then if somebody were to write something in all caps in that cursive, it looks weird. Now we're going back and refining all those ligature, they're not really ligature combinations, but combinations of all cap words written in a cursive style. You just go down a rabbit hole of things you want to improve on each of these things. Luckily we have ASU, Arizona State University, not too far away. We have the design students from there come in and they help us with all that because it's a lot. There's a lot to be done. Kathleen: That's so fascinating. I could talk for hours about these little details and I think it's really cool that you are paying attention to the details in that way because if you're going to do this, I think it would totally backfire if it wasn't done well. If it's an obvious robotic attempt at writing a card. David: Yeah. We actually have one client that their quality assurance person, who is in a quality assurance mindset, was rejecting our cards because each card looked different. We said to him, well, that's the whole point. Not each card is supposed to be identical because people are, I know for a fact, for their brand, people do Instagram and do Pinterest and all that stuff, pictures of their cards, and if two people see the exact same card with the exact same spacing and everything else, it's going to look terrible to them. I was able to get them over that hump. It was funny that that was...He came at it from sourcing or let's get this laser printed perspective, and we said, no, no, no, that's not how it's supposed to be. They are all supposed to have a little variation so it looks more realistic. What types of cards can you choose from? Kathleen: Yeah. Yeah. To that point, my understanding from looking at your site is you can do folded cards or flat cards, correct? David: Yes. Yep. Really we can write on pretty much any piece of paper. On our website, we've got an inventory of about a hundred folded cards to choose from. Most of those now are designed in-house by us under the Red Wagon label. Nothing ever says Handwrytten when it comes in the mail, because we don't want to be the ones to spoil that. Those will come with that on the back. Instead of saying Hallmark, it says Red Wagon. In addition to that, we've got a variety of either blanks or blank on one side, 5X7 flat cards. With those, if they're totally blank on both sides, you can put a big image on the back, or I think confusingly which is called the front in our system, and then on the other side you can put your logo at the top and maybe a footer at the bottom and then we'll write between that and it looks like a nice luxurious piece of stationary. That is a very popular option. If you're a larger client and you've got your own stationary like some of our luxury brands do or whatever, they can always obviously just send that to us and we'll use that instead. What's nice about the online card customizer is it's so simple. You can literally spend like, I'm doing demos for prospects and I'll go online and in three minutes with them on a Zoom call, I'll create a piece of stationary that looks totally legitimate for them to use and then we can write it on it and send them a sample on their own stationery. It looks really good. The reason it's a flat card and not a folded card is basically we're resource constrained at Handwrytten currently and we can't afford a huge digital press that we'd then have to cut everything down and all that so it's easier if we just stick to a 5X7 flat card and it allows us to offer these at a price point in quantity one where it still makes sense. Kathleen: Yeah. David: It's $3.25. Kathleen: You guys also do handwritten envelopes too, correct? David: Everything is handwritten. The note is handwritten. The envelope is handwritten. There's a real forever stamp put on that piece if we're mailing domestically or an international first class stamp, if we're mailing outside of the United States. In addition to sending cards, clients can send us their business cards and we can insert those. There is a small fee for that for the storage and handling all those business cards. How companies are using Handwrytten David: Then additionally we've got probably 15 different denominations of gift cards for you to choose from. Amazon, Starbucks, Target, Home Depot, Visa gift cards, that type of thing. You could choose any of those and include that with your order at checkout too. We do a lot of $5 Starbucks cards typically for, "Thank you for meeting with me - here's a coffee on me" type things. We also do quite a few Home Depot for realtors and mortgage brokers. Kathleen: Oh yeah, that's a good idea. David: Yeah. Then also quite frankly for lazy people sending birthdays to their friends wherever, we do a lot of visa cards for that. I would say by and large, our biggest seller is the $5 Starbucks. Kathleen: Yeah, I could see it being really useful for companies that are trying to get more online reviews for their products. Somebody reviews you, you send them a thank you with a little gift card as a token of your thanks. That seems like a complete no brainer. David: Yeah, and we do a lot of that for Amazon sellers. Amazon's changed up the rules a little bit, so now it's not allowed to go out and contact them outside of the channel. You can't just send them a note in the mail. Now we're just inserting those notes with the packages themselves prior to getting shipped to Amazon for fulfillment, but we do a lot of those types of notes for them. Then a thank you for your referral and then a ton of insurance renewal type. When your insurance is up for renewal, it automatically triggers through Zapier a handwritten note to you thanking you for your renewal. On the inbound side, quite frankly, I think a lot of it is automatic triggering on forms. When people fill out a form online, that rep might take a few days to get in touch with them and in that time, we send all notes within typically the next business day. Then the post office takes their snail mail time to get to you. It's a nice follow up to whenever the rep contacts you. Kathleen: Yeah, that's what I was thinking of is I could see a lot of applications in sales. I could also see, in one of my previous roles I had, my team did an annual conference and I could see sending it to people who've registered for the conference or sponsors or even follow ups after the conference. There's so many different ways to use it with events. David: Absolutely. We were able to get our hands on the attendee list for our conference luckily a few weeks before the conference started, and we were able to track down all the mailing addresses. I didn't even attend that conference quite frankly. I just sat in the lobby and it was by far the most successful conference we ever had because we had meetings booked. I had so many meetings booked. I had to cut meetings short to get to the next meeting. It was great. It was a great example that our service worked for ourselves. It is absolutely great for pre-conference meeting scheduling and post-conference followup. It certainly does break through the din. How to automate handwritten notes Kathleen: Going back to something that you started with. I wanted to just revisit the...You talked about really this evolving into a platform because you have these integrations, so for people who are listening, it sounds like you have the option of doing this in a very transactional way. Either sending you a CSV file with a bunch of names and addresses or you could literally connect this to your CRM and trigger actions from there, correct? David: Yeah, absolutely. Our deepest integration right now is with Salesforce and in Salesforce you can send a handwritten note from the account screen, from the contact, from the lead, or from the opportunity. Then we could also automate through Salesforce. There's automation play, which was called process builder. Quite frankly, I'm a much bigger fan of Zapier, so even if they know how to do process builder, I know nothing about it. I say just spend the $29 a month and do Zapier and send it out. That way it's much easier. Either through Salesforce or through Zapier, you can do it. What's nice about doing it in Zapier or through HubSpot's CRM is any time you send a Handwrytten note, it's recorded in the CRM systems - within Salesforce or within HubSpot's CRM timeline. Therefore, when you go into that record and you see, "Oh, I called Kathleen on Monday, I sent her an email on Tuesday, I sent her a Handwrytten note with a $5 Starbucks on Wednesday", all that's recorded in your CRM platform. Then depending on the CRM platform, I know Salesforce is really robust in this way, your manager can oversee you and see all the notes you sent. Track your spend. Maybe not allow you to send gift cards or not allow you to send too many notes a month or whatever it is. We are looking to expand on that more into HubSpot and into Shopify. Trying to get these small stores to automatically follow up upon certain thresholds. On Shopify, if I send somebody a third order or they've spent over $500 in their lifetime with me or whatever that is, that would automatically trigger a note. Currently, we do all that through Zapier, but we just want to make it more transparent by putting it directly in the Shopify store. Quite frankly, for Handwrytten, I just want to be everywhere and every touch point is better SEO and it's more availability, more people will know about us and that type of stuff. Even if they in the end, commonly uses us through Zapier or uploading a CSV into our website. Kathleen: The real power of this to me is just that it has the potential to eliminate the human error factor. As somebody who works with companies as a head of marketing, I think there's so much potential to, I was mentioning before, integrate this in the sales process. I'm a marketer who loves working closely with sales teams because obviously you can judge yourself based on the number of qualified leads you pass to a sales team, but really with marketing, at the end of the day, it all comes down to how many of those leads turn into customers. I like to look at what happens after that lead gets passed over. I think being able to say, okay, we did a demo for this person. When that's marked off in Salesforce or in HubSpot CRM, if I can go in and automatically trigger it so that handwritten note goes out, I don't then have to rely on the sales team. It also makes their life easier, which improves my relationship with them. Anything marketing can do to make sales life easier, is always a good thing. I know for sure that it's going to happen. To me that makes it incredibly appealing as a marketer. David: Yeah, and that's where we're really trying to get with all of our clients. We want to be the plumbing of the organization on the handwritten notes side. You have your email plumbing and your CRM plumbing, but we want to be the handwritten note plumbing that you don't even think about. You just know it's going to work. For instance, we work with a solar panel installation company in Louisiana and they're sending about 400 notes a day. All of these notes are simply triggered off of people setting up meetings. They don't do anything. These notes are automatically triggered. They don't even have to think about it. We have a major car manufacturer if you call into their main customer support number in Detroit, and I'm not sure why you'd call them versus your dealership, but whenever people still do call the car manufacturer, depending on if you were resolved or unresolved in the call center, it automatically triggers one of three different handwritten notes to that car buyer. That purchaser saying "I'm so happy we were able to help you" or "I'm so sorry we weren't able to resolve this" whatever. To your point, exactly, it's taking the compliance or the follow through aspect out of it. The last thing you want to do is sit down and you're trying to answer the phone and you don't want to have to sit down and remember to send 40 handwritten notes and have your hand cramp up and everything else. We work with a super premium luxury perfume company and we do all their online purchases. We send handwritten notes following an order. I was just walking through a department store with my wife and they had that premium brand and I pointed it out, and the store clerk came up and she was asking me why I was pointing it out and I said, oh, it's because we do the handwritten notes for you guys. She goes, "No, you don't." I have to write all my own handwritten notes and it takes all day to do it and that's a pain in the neck. I said, "Well, we do it for the online orders." She said, "Well, geez, you should do it for me too", because she's very busy. I'm sure she can't get around to sending all her handwritten notes. If she does, maybe they start looking terrible by the end of the day because her hands cramped or whatever. We're doing a lot of that trying to make the online experience just as good as the offline. Kathleen: That's awesome. I think this is a no brainer. I know I'm going to be using it in some capacity, but I've been fascinated by solutions like this for a while because the same pain point that you expressed when you started the company, I felt that a few years ago and I went and started Googling to try to find a solution and there wasn't really one that existed. There were some very, very high priced ones that if you're a company that's going to do tremendous volume, it might be worth investing in it, but there weren't any good solutions that supported a lower volume and a smaller budget. I love that you have a solution that spans all of that. I think that's great. It makes it so much more accessible. David: Right now for better or worse, I actually wrote a medium post about this, our big competitor who you probably saw, they are no more because they spent all their money on marketing and very little money on technology. I come from a technology background and I spent all our money on technology so that we could support the business and maximize throughput of messages so that you didn't have to have somebody sitting there placing each note individually on a handwriting robot like they did. They are no more, and right now we are pretty much the only game in the United States. I know of one in Germany doing it and the big problem we're coming across right now are companies claiming to be handwritten, but we've received their product and it's laser printed. There's a little bit of market confusion out there currently, but in the actual handwritten notes space in North America, we are in an interesting position to be the only game in town right now. You'd think we'd be bigger given that. We're getting there. We're definitely getting there. Kathleen: Oh, I have a feeling that in a few years everyone is going to be talking about you. Well not even a few years. I don't think it's going to take long because it's a really great product and it sells itself to me at least. David: Thank you. Kathleen's two questions Kathleen: Well, I want to make sure I save enough time to ask you my questions that I always ask all my guests. The first one is, we talk a ton about inbound marketing on this podcast. When you think about companies or individuals out there who are practicing inbound marketing, who do you think is really doing it well right now? David: This is actually not a client of ours, but I have some friends that do digital marketing and we've been talking about it. I actually ran this question by them because I knew you're going to ask it. There's a company called GhostBed based in Florida. They do online mattresses. They've been doing them quite a long time and they rely heavily on people writing video reviews or doing video reviews and putting them on Instagram or on Twitter and then they pull them off those social channels and actually put them on their website and then they tag you with that ad roll and everything else once you're there. They really got ya. I know they use a marketing influencer network. I think they're using one called Intellifluence, but they do a very good job. As far as our clients, I think VYNL does a very good job within their niche of building this huge branding presence on, for certain, very specific niche demographics. Those hipsters that want to receive old fashioned vinyl. They've done a great job of getting out there and getting in front with a lot of Instagram and a lot of Facebook marketing and then driving that back to their website and then just having everybody, at least when we started, there was a lot of excitement about these handwritten notes with them and there was a lot of taking pictures of those and posting them online. That worked really well. Then I got to say we've done a pretty good job of it just because of the cobbled together HubSpot-like platform we've built, which is a nine or 10 step Zapier zap that when you come in and you request, I will warn all your listeners, that if they request samples, they're going to get emails from members of my team and then a phone call and they're going to be put in our CRM system and all that. That whole process is totally automated. I'm pretty happy about the inbound processing machine we've created here based on creating an item of value, which is a handwritten note sample that people want to receive. I think GhostBed has done a really pretty incredible job. Kathleen: Oh, I can't wait to check that out. It's amazing what you can do with Zapier. It's pretty limitless. David: It really is. I should work for them. Kathleen: Yeah. I had a guy named Connor Malloy as one of my guests many episodes ago. He's from a company called Chi City Legal. I think it's him and one partner that have a law practice in Chicago and he runs his entire practice on Zapier on basically zero budget. It's amazing what he has done. That was one of my favorite episodes because he was like, "I don't know if you want to talk to me because it's just me and my partner and we don't have a big budget and we don't have any fancy software." I'm like, "No, that is why I want to talk to you because you've done all this incredible stuff on a shoe string with just you." David: I remember the episode. He had Zapier pre-filling his contracts and all that stuff. Kathleen: Yeah. It's amazing. That's really cool that you guys have an integration with Zapier because I've used it at many companies and it's really a game changer. Second question is, the digital marketing changes really quickly and the biggest complaint I get from marketers is they can't keep up with it. How do you personally keep up with it? How do you stay educated? David: Well, recently I have to admit I have become a Reddit addict and I don't know if you've gone on the Reddit bandwagon yet, but it's a never ending rabbit hole to go down for good and bad. I can go on certain channels and just dive in to silly videos for hours on end or I can look at the growth marketers subreddit and get some really great ideas. I find Reddit to be really good. The latest idea, and I almost hesitate to mention this on your show, is a little black hat idea for LinkedIn marketing called LemPod, L. E. M. P. O. D. I don't know if it's worth getting into because somebody...It was posted on Hacker Noon as well in other websites they talked about LemPod, but basically it's a way of preseeding your LinkedIn posts with engagements. You join a group of other digital marketers or people in your same vertical or what have you, and it automatically fills your post with comments from them, and because of that, the more engagements your posts have, the more visibility they have. My recent posts have all received 5,000 to 10,000 views because of LemPod. It's a little bit black hat, but I learned about that through Reddit as well. Also, I'm a huge fan of Flipboard and I'm part of the hashtag inbound marketing content on Flipboard, so I read that. Then finally I listen to you and I've heard all these episodes you've mentioned. Those are the three ways. LemPod is certainly interesting if you're looking for an interesting approach to massively increasing your views, even if it's a little funny at the beginning. Kathleen: Yeah, I'll definitely have to check that out. I am so humbled that you mentioned me in that mix and that you listened to the podcast and get some value out of it. That means a lot to hear that feedback. Thank you. David: No, absolutely. Like I said, during the preinterview for this and then again I write for Inc. magazine and I tried to create items of value on the website because of that gentleman that worked at HubSpot, then G2 Crowd. I really take what you're doing to heart and I think I cannot be the only one. There has to be other listeners out there doing the same. Thank you for doing this and I hope it's paying off for you because it's paying off for us. How to connect with David Kathleen: Oh, well thank you. That is why I love doing it. It makes me happy to hear that it's working for you. Well, I'm sure there are people who are listening to this and they're thinking this Handwrytten things sounds really cool. I want to check it out. How should they do that? What's the best way for them to learn more about Handwrytten and or connect with you online? David: Yeah, you can always connect with me online. I'm David B Wachs on Twitter, I think David B. Wachs On LinkedIn, but just search for David and Handwrytten on LinkedIn. The company is Handwrytten.com. That's Handwrytten with a Y, H. A. N. D. W. R. Y. T. T. E. N. I do recommend the samples requests. You can always say "stop emailing me" after you get your samples, because with the samples you get a whole bunch of material. You get custom cards, you'll get standard cards, you'll get a whole page of different writing styles and a nice little folder to hold it all in. People really do like our samples. You could just get that at Handwrytten.com/business. We are rolling out a new website in the next two months, which I'm super excited about. If you check us out now, please check this out in two months. That's it. We have a small presence on Instagram. I think our tag is Handwryttennotes on there, and we are on Pinterest because we do a lot of consumery style notes, but for the most part, just feel free to connect with me on Twitter. You know what to do next... Kathleen: Awesome. Well, I will put links to all of that in the show notes, so head over there if you're interested in connecting with David or learning more about Handwrytten. There's so much good stuff on the website, so I definitely do recommend people check that out. Of course, if you're listening and you enjoyed this episode or you'll learn something new, I would really appreciate it if you could head to Apple podcasts and leave the podcast a five star review. That would help us get in front of more listeners like you. That's it for this week. Thank you so much, David. This was a ton of fun. David: Thank you very much. It was an honor to be on your show.
Engineering Influence sat down with David Ohrenstein and Theo Angelopolous from Autodesk at the Moving America Forward presidential forum on infrastructure in Las Vegas.Transcript:Host: Welcome to another edition of Engineering Influence on the road - we are coming to you from Las Vegas right before the first ever, single issue focused presidential candidate forum on infrastructure being put together by United for Infrastructure and also hosted by some of our corporate friends, including Autodesk who I'm joined with today. I'm joined by David Ohrenstein, Director of government affairs and Theo Angelopolous. He is the Senior Director of Infrastructure Programs. I'm very, very pleased to have you join us today. Autodesk is something, the services that you provide, the digital technology, is something that our industry uses on a daily basis. I want to get your thoughts on why this forum is important, number one. And number two, from your position in the marketplace, what do you want our elected leaders to do? What could Congress do? What should the industry do to really move forward on the integration of digital technologies with engineering and the construction and design of infrastructure?David: Sure. I'll start - I'm David Ohrenstein. First of all, we're really excited to be at this event and we think it's great that this is a big national conversation going on about how to have ambitious plans to build out America's infrastructure as a, as a technology provider to companies that design and construct infrastructure. We know the big challenge that the country faces in meeting its infrastructure needs and we think that technology can play a key role in meeting those needs. We work with big firms, with small firms, some are more advanced in the use of technology. Others have a way to go. And we think that any big infrastructure proposal by the candidates, by the administration, by Congress, all of them ought to have incentives to improve this use of technology.Host: And Theo, from your perspective as a senior director in infrastructure what's your take?Theo: Yeah. So I mean, I think, you know we all talk about the trillion dollar global infrastructure gap and we talk about the aging infrastructure in the U.S.. What's interesting is when you look at that gap, world economic forum is projecting that gap to get bigger every year for the next 20 years. And more than half that gaps actually in the U S and primarily in roads and highways. So, you know, I think we know that we have to do more, you know, better with less. And I think there's a couple of things we'd like to see happen. One is obviously we want to see the faster adoption of digital technology in design and construction. And then, you know, like David said, we'd like to see the government be more progressive and incentivizing, you know, their supply chain to go digital. And I think if you look at governments like the UK and governments in the Nordics, they've done that. So I think it's a really good opportunity for the U.S. to really go faster and, and be a leader in the area of digital technology for infrastructure.Host: And before we went on you mentioned the fact that there's been a greater adoption of digital technologies in countries in Western Europe and are there any good examples? I mean, is there any one country, I mean, you mentioned a couple, but anyone who has really done it well, that could actually be a good I don't know - example for the U S for policymakers to follow in the way that they embrace digital technologies with infrastructure projects?Theo: I mean, the one that really stands out for us is really the UK. I mean the UK has basically, you know, mandated that all projects over a certain threshold are delivered in building information modeling and they've actually adopted certain compliance and regulatory requirements on those projects. So I think, you know, I think there's definitely the standout right now. David, I don't know if you have anything to add.David: Yeah, the UK is, in addition to having these policies, they have a real, like national construction strategy. So they really see this as a key industry to support both. In building in within the country, but also as you know, as an industry that can, they can export these services around the world. So they have, they're a great example of having a comprehensive national construction strategy.Host: And David, from your perspective in government affairs, I'm a former T&I staffer. I kind of know that there's some, not everyone is current on exactly all the technologies that are out there, especially when it comes to infrastructure design. There may be a habit of looking backwards instead of forward. How should, Members of Congress, what would you, what would you advise T&I members for example, to do, to become more knowledgeable and more open to the idea of, you know you have, you've got digital twins, you've got all these different technologies that are out there to, to learn more about them and take advantage of them?David: Well, you know, the, the past surface transportation bills have had some incentives for using digital modeling,Host: Minor minor technology titles in the bills.David: And the current Senate EPW bill that also a technology section to it. So we think those sections ought to be a robust part of any package. And not just around the design but also using digital technologies and construction. That's going to be a key, key piece of it. So you know, we want, we want the overall plans to be ambitious, but one of the things we're focusing on is making sure that the technology piece of these plans is robust. And as I mentioned you know, things like autonomous vehicles and broadband, smart cities, those are all important and those get a lot of attention. But also using more technology and how you design and construct infrastructure. I think that has sometimes not been as you know, upfront as part of the conversation we'd like to, for policymakers to be thinking about that too.Host: And then finally, for the forum in general we're going to have a couple of presidential candidates come up and talk about infrastructure. What do you hope to hear, what would make your day from any of the candidates today? You know, on the issue.David: They all have ambitious plans and we think that's great. What we'd like to hear is a little bit more detail, again about technology, how technology can play a bigger role. Because if we're going meet as, as Theo was saying, if we're going to try to build more infrastructure, built better infrastructure with, you know limited resources, then technology is key to that. And we'd like to hear them get a little bit more granular about about how to promote technology as a key part of these proposals.Theo: No, I mean, I agree. I think the devil's in the details always of course. But I think, you know, for me what I would like to hear is definitely the how, you know, I think we all can align on both sides of the aisle around the value of investing in infrastructure. And really the challenge is how do we do it? And that for me, that's kind of the key takeaway that I'd like to understand from each of the candidates.Host: Hopefully we hear that and we've got a long time until November. But our members - the engineering industry is going to be very interested throughout. So hopefully it's a good forum and, and, and successful one. And I really appreciate you both coming on our podcast. You have an open invitation anytime you want to when anything comes up, our members of course are very interested in the services and products that Autodesk provides the industry. So if you have news or information, please consider us as a, as a place to come. And I want to thank you both for being on the show.Theo: Great. Thank you. Thanks for having us.
Welcome to the first ever Teach Them Diligently Podcast. This week, David and Leslie Nunnery, founders of Teach Them Diligently, give you some insight into their decision to homeschool. They explain why they started and what they have seen God do all along the way. We hope that through it, you'll get a fresh view of how God can use you as parents, as you invest in your children. We're so glad you're here. So let's jump in. Additional Resources: Download a FREE copy of Leslie Ebook, Rethink Education, where she seeks to turn the scary questions about homeschooling into exciting opportunities. Attend a Teach Them Diligently Event to find a refined vision of your own mission as a homeschooling family. You will also get equipped and encouraged to pursue that mission with more passion and confidence. It could make all the difference in the world in your resolve to stay the course. Teach Them Diligently 365 is the world's largest, perpetually-running online homeschool convention, and it brings all the amazing workshops and a touch of the fellowship and camaraderie of Teach Them Diligently events straight to your home all year long. The more well-equipped you are (and feel!) each and every day, the easier it will be to stay on mission and have more good days than frustrating and discouraging ones. Transcription of "Are you still homeschooling. What an unusual question." Leslie: [theme music playing] Hey there, and welcome to the Teach Them Diligently podcast where we discuss marriage, parenting, discipleship, homeschooling, and everything else that comes into play when you're following God's plan for your family. We are David and Leslie Nunnery, and today we're going to be talking about an unusual question I was asked recently. We hope that through it, you'll get a fresh view of how God can use you as parents, as you invest in your children. We're so glad you're here. So let's jump in. Leslie: [theme music ends] So David, I was asked before an interview not too long ago, a most unusual question, and it got me thinking. So let me throw out the question for you and then see how you are impacted by it. I was asked before I did an interview the other day, "are you still homeschooling?" And I thought, what a very unusual question to ask us. when we have kids still in the home, we are doing all of this stuff. So, um, I thought we'd talk about that today because are we, are we still homeschooling David? David: Yeah, absolutely we are. Leslie: How many? David: Well, we have one in college. He still lives at home. Leslie: Uh, he still sleeps at home [laughter]. Let's clarify. David: He still sleeps at home, that's true. Three. Leslie: We have three. David: We have three, and we are homeschooling. Leslie: Why? Why are we still homeschooling when, um, there's so much stuff to do. There's so many opportunities. There's so much going on. Why are we still doing this? David: Our belief around homeschooling is anchored in the fact that we believe is the best way to disciple our kids. And it's much deeper than the education part of this. It's much deeper than the place. Meaning, do they go to co-op? Do they go to dual credit or you know, at a college? Are they at home all day long? We're not trying to insulate them. We're not trying to protect them from the evil school system. It is about discipleship and because it is about discipleship and because we believe that it's the best way to disciple our kids is to be around them all the time. We have stuck with it and we've had opportunity to move on. Matter of fact, you know, uh, uh, I don't know how many people know this story, but we actually took our kids out of a really good private school. We actually moved down here from Lexington, Kentucky, and when we moved down here to Greenville, South Carolina, we were excited because we were finally going to be able to put our kids in the private school that we wanted. And I want to say that when we moved here,
ALPS Risk Manager Mark Bassingthwaighte sits down with ALPS CEO David Bell to discuss David's past, ALPS future, why every company should have a vision for their core cultural values (and what shouldn't be in it). Transcript: MARK BASSINGTHWAIGHTE: Welcome. This is ALPS In Brief, the podcast that comes to you from the historic Florence building in beautiful downtown Missoula, Montana. I'm Mark Bassingthwaighte, the risk manager here at ALPS and joining me today is David Bell, our CEO. David, maybe can we take just one minute or so here for listeners that may not know a bit about who you are, what your background is. I'd love to have you just share a little bit because I think your background and experience is relevant to where we're going to go today in our conversation. DAVID BELL: Sure. Well thanks, Mark first and it's a pleasure to be speaking with you. I guess the short version of my short history is I started my career in insurance out of college with Chubb and with that in a large company with a long history and a long vision for the future. Then after moving up through various roles at Chubb, after 9/11 Chubb, AIG and Goldman Sachs started a joint venture and I went with Chubb's capital to start that. And over the course of the next decade plus, we took that organization independent from its founding shareholders public and it was ultimately sold. DAVID: In 2012, we moved back to Montana where I had gone to college and my wife had been raised and had the good fortune of joining ALPS in 2012 and a very different type of organization, very different size. My career before that had been in a big multinational company. ALPS is a smaller domestic only company and really a fascinating juxtaposition of different types of cultural priorities and different types of opportunities. So, just I feel fortunate and blessed to have had this journey and to have the point in my journey be right here in this moment. MARK: Very good. You recall we sat down about two years ago and spent some time discussing the ALPS corporate vision at the time. I thought it'd be fun to kind of revisit that topic today. If I may, I'd like to start by asking a few questions about the process that you go through with us in terms of the company, with the hope of having this discussion and example serve as a concrete example to others wanting to learn sort of the how to, so putting their own vision in place. Before we really even start to dig into this, would I be correct in assuming that the success that you in the large multinational setting as well as the ALPS setting, you're contrasting these two, is very different, but does vision have a role? Do you feel that that was significant in terms of your success in both spaces? DAVID: 100%. Even when the vision is quite different, as they have been over the course of my journey, not having one is dangerous and I think would lead to a rudderless ship type of approach organizationally, even if you feel like you're generally going in the right direction. If you have a community of people, whether that community is two or three or two or 3,000, if they're not rowing in the same direction with some sense of rhythm, then success would only come by accident and that's not a really good plan. MARK: I like that. I really do. I want to come back to that here in just a moment. Can we start just by having you share some of the highlights, whatever you feel comfortable sharing in terms of the ALPS vision for 2020? DAVID: Sure. Well the ALPS vision for 2020 is more of our strategic operational objectives. When you have a vision for the short term, this 12 month duration, it's more actionable, quantifiable, executable milestones. So, I would describe the vision as how do the success of those fold up more broadly into an intermediate and longer term vision? And that pertains to the vision as respects where the organization is going. I mean, why are we laboring as hard as we are and making sacrifices personally with time and otherwise to be here to try to strive to be better? There has to be a reason and it has to be beyond monetary in order to affect people, particularly people at all levels because you're going to have folks at the managerial level who are very much privy to the discussion around the why and the vision. Then you're going to have people who are just doing their job every day and they don't have the benefit of the philosophical discussions as to why. So, the vision needs to be as relevant for them as it is for the vision creators. DAVID: So, the 2020 vision is a puzzle piece that is simply the beginning of the equation for the intermediate and longer term vision of why are we doing what we're doing. We're all conditioned as humans to first and foremost think, how does this affect me? What's in it for me? So, I think from a managerial perspective, we would be wise and probably have an obligation to go to that place first. We're really going to think about this as it is seen through the filter of everybody else individually as why is this relevant to everybody who's here, and why should they care and sacrifice in order to realize this vision? And how bought in are they to the vision, and how much is the vision a function of their own engagement and involvement and contribution? MARK: What I hear, and I love that, it seems to me that part of this is really kind of trying to give some meaning and purpose at the individual level all the way to the corporate level in terms of these whys. I like that. Very, very good. I think this next question kind of relates to what you've been sharing, but I would like to be very specific about it in terms of some clarity. What is the value from a business sense and perhaps personal sense of having a corporate vision? I think we've hit that some, but I'd like sort of a concrete statement. DAVID: Sure. Well, I would break that down into two different categories. MARK: Okay. DAVID: The value of having a vision about the core values, meaning the cultural values of an organization, I think is essential. In fact that frankly, it's more important than the financial and operational vision because if you get the cultural values vision right, the rest of it will more naturally fall in place. If you don't get it right, it'd be very difficult to successfully execute on operational and financial objectives if at its core the culture has a cancer in it. So, you have to start with the cultural side. I think never more so than now when the labor force is increasingly made up of purpose-driven people, people who have an absolute expectation that there is something broader than a paycheck that's part of this compact. DAVID: So, the cultural vision, the cultural value that we've established at ALPS is intentionally very simple. We ask ourselves four questions and these questions, they are prominently placed around our environment but it's not kind of a sentence written on a wall for the purposes of marketing. It is really supposed to serve as the litmus test through which not just the words that we speak but ideally the thoughts that we have are filtered through that litmus test. They are quite simply, is it the truth, is it fair, does it benefit our people and the company and does it help us make a profit? Right. We didn't hire a fancy consultant to help us come up with those. I'm sure they could be worded more eloquently in some ways. DAVID: But it is, at its basic level, the most honest, intentional approach to say what are some things that we want to exhibit as individuals working in community that if we strive towards these four things, will life be better for all of us? I think we think the answer is yes. If we're committed to telling one another the truth and we are committed as an organization to speaking the truth externally, even when it's uncomfortable, then it doesn't mean that every day will be rainbows and unicorns, but every day will be a day that we can feel proud about what we've done. MARK: Yes. DAVID: That type of thing is important to people to have worth in their role. The second is, is it fair? Fairness is a subjective measurement. So one person's idea of fair is not the same as the other person's idea of fair. So, what the question of is it fair means is, do you as an employee of this company have confidence that the underlying motivation of the decision maker is to strive for fairness? It doesn't mean that we're always perfect or that we get it right all the time as it pertains to decisions about our own people internally or the endeavors that we have with our constituents and the people around us. We don't claim to be right 100% of the time, but we are always trying to be fair and we aren't afraid to pull back and correct ourselves if we feel we've jumped off course. So, it's the pursuit of fairness. DAVID: Then the third and fourth are somewhat kind of unapologetic affirmations of the reality. The third one is, does it benefit our people and the company? I mean, there is an unapologetic self interest that we have as an organization. Is what we're spending our time and money on going to benefit the people here and this organization because if it's not, then we should be thoughtful about how we allocate those resources. Then fourth, doesn't it help us make a profit? I think the need to make a profit can't be understated. It's very intentionally on the list and it's also intentionally not first. DAVID: It is there and we shouldn't gloss over the reality that without financial solvency and financial strength, we are not able to accomplish all of our other goals. So, we should keep a really sharp eye on that question. But we also don't wake up and work our days simply and solely for the purpose of making a profit because there's candidly no inspiration longterm for anybody. So, those are four of the cultural values. In our recent vision meeting, we asked what we don't want just so we can keep an idea of what we do want by acknowledging characteristics that many of us have seen exhibited at other companies or read about or watched. DAVID: I think it's healthy to spend just a few moments in discussion about what we don't want just so we call it for what it is. We put a label on it, don't want that, right. And some of those, there's just five of them that we talked about in the most recent meeting, which was "corporate" culture where you're just a job. You're a number. You're a commodity. You can be unplugged and somebody else plugged in there. That's not inspiring if you feel like you are commoditized. So, we don't want that. We don't want uncertainty from the fear or concern of financial instability. But it's one of the reasons why making a profit and financial success is on our top four that we do because it gives people a sense of calm and confidence in everything else that they're doing knowing that we do this from a position of strength. DAVID: Third, we don't want me people. We want we people. We acknowledged in our discussion that, I'll just speak for myself, as human beings, I am an inherently selfish person, right. My default position is one of self interest and selfishness. I believe that that's just the way that we were created. So, in order to not be a me and be a we, we have to consciously fight against that and be thinking first and foremost about the people around us. Then another is, we don't want to have a kind of that's not my job mentality. I mean, if the coffee needs to be changed, I should change the coffee. It doesn't matter who you are, if you come across it and it needs to be done, then you should do it. You should do it comfortable that other people do the same thing. DAVID: Then finally, and this is really important, gossip. I mean, gossip is a cancer that can debilitate companies. So, we are almost transparent to a fault, and in large part, in an effort to preempt any type of gossip. So those are things that you don't want, and then that quickly leads you to the type of cultural vision that you do want. You want folks that just take initiative. When people see a problem, they address it. When people have an idea about something that can be done better than the way we're doing it today, the first instinct should be action. The first thought should be empowerment that I have an idea that I think would benefit others, and I know that I work for a company that that idea can be put in motion in a relatively short period of time. DAVID: You want to be a solution provider both for our folks internally and for our customers. We have a business where we have a finance department and other and a HR department. We have legal departments where their constituents, their consumers are internal. They're our own people or our customer. Then we have departments, the business development and account managers and others and claims who are external facing. Their clients are our policy holders, our customers. So, we want to be solution providers for everybody. DAVID: Finally, we're just wrapping up here on the cultural what you do want, you want this to be a fun place to work. I'm not suggesting for a second that this is Disney World and that every day is like a vacation. I know the adage, if you find a job that you love, you'll never not work another day in your life. I personally don't subscribe to that. I think we can be honest about the fact that we come to our jobs because it's a living and we get paid for it. And hopefully it provides the means through which we can pursue some of our other passions in life. Hopefully, it is not the singular interest in your life. I think that would be unhealthy, but we are involved in a serious business. We take risks. We make promises. DAVID: There's lots of law and finance in what we do, but we should still be able to have fun. We should not take ourselves too seriously. We should be self-deprecating and people should not feel guarded. I think as we talked about this in the all company meeting, I think the sense amongst our staff is that we do a pretty good job at that. You want people around you to want you to win. I think whether it's who we're working next to or our marriage or our friendships, you want to be in community with people who are "for you", who genuinely want to see you succeed and to enter your success with you. DAVID: Then again, just from a vision perspective, size through diversification, right. I mean in our business there is strength in size and there is strength and protection in diversification. So that is something that we're quite intentional about. We want everybody finally to just know that they're supported, whether they're in our home office in Missoula or in any one of our number of remote locations around the country. I mean, whether I get to see you physically, regularly on a day to day basis or whether you're in Atlanta, Georgia or Richmond, Virginia or any of the other places, you should feel like you are as a valued and that the resources you're giving to succeed are as high a priority as anyone else. DAVID: So, those are cultural vision checkpoints. I would suggest that if we are wildly successful on making all of those real in the lives of everybody that work here, we will be and continue to be the best legal malpractice carrier in the country. Candidly, we would be the best in anything we were doing. If we, for whatever reason, stopped doing this and started doing something else as an organization full of people working together, we would do that well too. MARK: Yeah, I agree. I agree. Let me sort of share, just speaking personally for a moment. I have participated as all of us at ALPS have at the all company meetings and talking about these things. I like you're sharing the point of the discussion where folks, what don't we want? I think taking risks like that to invite these kinds of discussions really enables people to make it real. I describe our culture, what we do, and I think at an individual level as well as at the company wide level, we are really striving to be, and I think we accomplish this, authentic and intentional in our actions. Even in terms of just how we interrelate with each other, how we interrelate with our customers. MARK: I'll share David, for many years I would sign my email as you're emailing with different customers, internal and external, Mark and things like that. But in more recent years, I have a signature. I'll say, "Please don't hesitate to reach out if there's anything else I can do," but I'm more and more adding if I can be of service to you. I really take great pride in, and I think I am not alone or unique in this, I take pride in that's my experience of who and what ALPS is. That we do take joy and pride in being in service to others in what we do. MARK: So, I'm just trying to give our listeners a sense of what you're talking about is being internalized and taken up by those that you're trying to share the vision with. But can I ask, what is your process? When you sit down and think about vision, any thoughts to share or insights? Is this something that's very organic? How do you go about it? DAVID: Sure. Well, the cultural vision is an exercise of really drawing on both my personal experiences with positive cultures and destructive cultures. Then being in discussion with others internally in this company and just externally people who you just benefit from talking about their experiences and taking the good and the bad, and then coming up with a vision of what you want to pursue. So, I think it is generally in a constant state of evolution in that it's kind of being refined but at its heart, the truth and fairness, those are kind of time-tested, immovable virtues for a company. DAVID: So, when you hear people... When you do some of these things well, and we are by no means perfect. In fact, we make mistakes regularly and we strive to be better. The fact that we feel like we get better means that we've always got room to improve. But when you do these things well and as you hire people and they're exposed to this culture for the first time as an employee and they come from reputable companies, competitors or otherwise. And you listen to them as they describe their experiences here, it's really inspiring. It makes you want to make it better, refine it more because you kind of feel like you're really onto something. It does tap into a part of the psychology for all of us that just numbers alone I don't think can tap into. MARK: I think you and I have seen this over the years in terms of our professional experiences and looking at competitors and whatnot, but I think businesses, corporations, small law firms, you can come up and create a good vision. I think have something that's pretty solid and yet it doesn't go anywhere. The vision fails for lack of a better reason. Just it never gets implemented perhaps. Why do you think that is? What gets in the way of, in terms of your experiences, success with a vision? Any thoughts about that? DAVID: Well, that's a great one. I suppose there are risks that a vision is established, but it's not a core conviction, and so it's not front of mind. When we first started this discussion, Mark, I talked about the four cultural vision points, the truth and fairness. I described those as the litmus test, the lens through which all things should be filtered. You really have to, whatever your vision is for your small firm or your family or your nonprofit, if it's not important enough that it will resonate with you and with everyone else such that it's front of mind in all thoughts and actions, then there's a real danger that you drift away from it. I think that's one risk because you can have a strategy session with the people who you work with and two weeks later no one could even quote a single sentence of what was discussed in that. MARK: I have been through that more than once. Yes. DAVID: I'm sure there is value in those types of days, but it really needs to be something that people are genuinely bought into. So, I think drifting away from it as is one risk. A second risk that I suggest and I've experienced this in my various failures to pursue certain vision elements, I think a vision, like most other things, can be distilled down to a project needing project management. If you have a certain vision characteristic, you need to disaggregate it into its pieces, put it in align sequentially of what needs to be done and then manage it towards that goal. DAVID: A vision is a point that if you slice it into 10 sub points and then line them up from where you are right now to what would realize that vision, then you kind of methodically and actionably check off on those things. I think sometimes we think of visions in the softer context. So, we're not as disciplined at project managing our way, methodically checking off certain actions or behaviors that are marching towards realizing that vision. Then we wake up one day disappointed that we haven't realized the vision. MARK: Yeah. Yeah. I think when I look back on my own career over the years where it has failed, there tends to be we come up with this vision and then you sort of say it at the front line to the bulk of the company, "Implement this and do it." There's no tools. It's not a bottom-up kind of process in my mind. When you try the bottom-up, it fails. It has to be a top-down in the sense that, in the ALPS example here, you and upper management really do genuinely live and exemplify the vision just in the day to day interactions with everybody you interact with, again, internally and externally. I think that is also key to some of this. You have to walk the talk. That's been my experience anyway. DAVID: Yeah. Well thank you. I appreciate that observation. There are aspects of a vision that need to be top-down because in some ways that's the charge of leadership is to be spending time thinking and deciding about vision. But the vision is carried out by everyone else. So, if you just, in an autocratic kind of way, instruct people on what they're going to do when, that generally is not a recipe for success. But if you go to the folks who are going to be executing and say, "This is the vision. Can you do this? Do you have the resources necessary for you to accomplish this? And how long do you think reasonably it will take under an aggressive timeline for you to get it done?" DAVID: If the people are engaged and just being asked if they're prepared to sign up for this vision, being asked if they have been armed with the resources to fulfill what they've just committed to and just being asked how long they realistically they think it's going to take. Those are not particularly complex questions, but it's amazing the difference of whether or not you go through those other steps and ask those questions. Versus just barking out an instruction to people who then look at you as though you're hopelessly unrealistic about what it actually takes to get these things done. MARK: I absolutely agree with you. The way I describe that is there is a difference between allowing the workforce, however you want to define that, allowing them the opportunity to own the vision, giving them tools, explaining, those kinds of things. Versus having sort of the dictator approach, this is the vision, make it happen and I'm out. It has to be owned from top to bottom. Again, I think that's another key reason why ALPS has been successful at this. I'd like to switch just a little bit. Wellness and wellbeing has been a significant issue, as you're well aware, particularly in legal profession in recent years. MARK: ALPS has been involved in the national movement to put together some emphasis on wellbeing and some resources. It's been an exciting time. I think ALPS has done internally a good job focusing on wellbeing. Do you see, is there a connection, is there a relationship between the vision that you have, the vision that ALPS has embraced here and wellness, a wellness, a wellbeing component? Is there a connection there at all or in your mind is that sort of separate topics? DAVID: No, I think there's very much a connection between the division and the cultural priorities and wellness in general because whether it's at ALPS specifically where we happen to employ a lot of people who are attorneys and have been in their prior lives practicing attorneys and the legal community that we insure. That's obviously the wellness category is, at the legal profession, pretty well documented. I mean mental health, substance abuse, physical wellbeing, stress in the job. I mean, the role of the attorney is one where people can quite literally and often do work themselves to death because there really is not a governor on when it becomes an unhealthy. I think the small firms and solo practitioners or perhaps even most susceptible to it. They don't really have the check and balance of a lot of other people in an organizational structure. DAVID: So, I think there's similarities between the community of people of 20,000 people that we insure all around the country and the people that are within this organization itself. I think wellness it is really important. It's a tricky one because the cause and effect of what you spend time on and what you spend money on and how that correlates directly to measurable wellness outcomes is very difficult. So I'm a big metric fan and I tend to rely much of my decision making on data of some sort. The data there is a little bit harder to pin down, but you just know that there is a correlation and that that correlation is necessary even if it's not as mathematical as some of the other decision points that drive our business. MARK: One final little question I'd like to throw your way, before I ask it, I need to explain something to the listening audience here. In recent years, David has taken the time to meet individually with every single employee in the company. It is what we call a coffee talk. It's just sit down for however long that the conversation goes. There's no rules on the conversation. You talk about anything you want. So, I'm going to ask the question. Why do you do or what is the value of coffee talk to you? DAVID: That's a great question. Something as simple as a 45 minute conversation shouldn't have as many and as complicated benefit and reason as it does, but I get the benefit of a lot of information from those discussions. It's also a great opportunity for me to help demonstrate in our flat managerial structure that we aren't a hierarchy. That everybody has access to everybody else and that no manager should have any apprehension about me having a discussion. I should have an appropriate level of deference in the role that the manager's tasked with not to do anything to undermine them by having this direct one on one conversation with their staff member. But I learn a ton about what makes people tick, what's important to them. I get a ton of information about where there are obstacles in the day to day aspects of people's jobs, obstacles that are not that difficult to remove, but for whatever reason, it kind of helps to talk about it and enlist some assistance. DAVID: I pick up a lot of personal context of the journey that people go through, and this is perhaps the most valuable aspect of this. In my old life in the role that I had before, I was the COO of a large publicly traded multinational insurance company. So, I just didn't have the benefit of knowing people personally. I didn't want people to be a number, but there just wasn't really another option. I didn't have context of the life of that person in London or in New York in the decisions that I was making. DAVID: So, there's a real blessing to being in an organization of this size where you really get to put your thumb on the pulse of these people and the journey that they're going through and how their profession intersects with that, where it intersects positively, where it creates challenges. So, it really makes the whole game more of a human one but it is a pain to schedule. If we just be honest about the challenge, I had two coffee talks today and they're so different and they were both great. But when I'm traveling, and so these are generally done, unless I'm in one of our other locations with another employee, I'm generally doing these when I'm here. So, it is not an insignificant commitment of time, but it is a commitment that yields a result and return that makes it well worth it in my mind. MARK: Yeah, I would agree. Let me share again for our listening audience here why I think coffee talk is valuable. At the end of the day, it really just boils down to when you couple it with emphasis on wellbeing, the corporate meetings we have, we get together and have these discussions. But there's a two way street in play here and it's when a corporation through management and even you, David as the CEO, take the time to personally invest in the employees. It creates the opportunity again for the employees to reciprocate and invest personally in the vision and the mission of what the corporation is doing, what ALPS is doing. In my mind, I think that's just a huge invitation. I see that as fundamental to the success of implementing the vision and really keeping things moving forward so that we're not drifting to use your word. You're keeping the pulse on us, but we're also keeping the pulse on you as representative of the corporation. It's really good stuff. MARK: Well folks, we are out of time. David, I really appreciate the opportunity to sit down and visit a little bit. It's always a pleasure when we get together. I hope for those of you listening that you can appreciate. I thought this would be valuable because it's a real world example of how when a thought leader creates a vision and has the ability and a desire, intent, energy to implement this, you really can have some tremendous success. I don't think that these kinds of processes aren't limited to a corporation. This can happen in a three man law firm. So, I hope you found something of value. Thanks for listening folks. It's a good one. So long.
How did David Bain turn his podcast content into a book? This week on The Inbound Success Podcast, Marketing Now author David Bain talks about how he went from podcasting to livestreaming to publishing a book - and how any marketer can repurpose audio content into electronic and printed books. Highlights from my conversation with David include: David started podcasting all the way back in 2006. His first attempt at repurposing audio content was to publish transcripts and compile them together. When he did that, he realized that transcripts don't work well for creating longer form content that people want to read. If you're thinking of creating audio content, quality audio is key. David recommends purchasing an ATR 2100 mic. You can also add professionally recorded intros and outros. David uses an iPad app called Boss Jock to edit his audio. After David got more serious about his audio content, he began pre-recording video using hangouts. From there, he moved on to live streaming. In 2015, he recorded a year end episode for his podcast that featured 20 to 30 marketers giving tips. The next year, he decided to feature 100 marketers and make a book out of their advice. David has worked with both Kindle Direct Publishing and Ingram Spark to produce ebooks and physical books out of his repurposed content. Resources from this episode: Visit the Marketing Now book microsite Connect with David on LinkedIn Follow David on Twitter Listen to the podcast to learn how to repurpose podcast content into a book - and what that can do for your marketing results. Transcript Kathleen Booth (Host): Welcome back to the Inbound Success Podcast. I'm Kathleen Booth, and I'm your host. This week, my guest is David Bain, who is an author with the book, "Marketing Now", coming out any day now, and also a prolific podcaster. Welcome, David. David Bain (Guest): Hey, Kathleen. Great to be on with you. Thanks for asking me. David and Kathleen recording this episode. Kathleen: Yeah, I'm excited to talk with you, because you have quite a bit of experience with podcasting. You're also a marketer by trade, who has held various marketing roles. But, it seems like recently your focus has really been on the medium of podcasting, and now turning what you've done with podcasting into a book. Maybe we could start out and just you could tell your story, your background, what you've been doing, kind of led to you where you are now, and what you're doing now? About David Bain David: Sure. I've come to realize recently that's impossible to do everything in the world of marketing. It used to be possible, I reckon, maybe about five to 10 years ago when you're talking about marketing or maybe digital marketing, to say that you're a marketer or you're a digital marketer, and people would understand that you do a broad variety of different things, but all under the marketing umbrella. Nowadays, it's just so much involved, I think you have to specialize a bit. I guess I'm specializing a bit in podcasting and live streaming, and turning that into a book, as you say. I've been involved, I guess, in marketing for about 15 years or so. It was about 2004 that I really started to realize that I could publish webpages and do things like Google Ad Sense onto the pages, and start to make some decent money out of doing that. That's how I got started in marketing experience. Within a year or so, people were asking me, "How on earth do you actually do that?" So, I was helping a few people to do that, and I ended up building that into a few digital marketing courses, and discovering podcasting about the same time. I actually launched my first podcast way back in 2006. Kathleen: Wow, that's really early days for podcasting. David: It is, it is. It's a year or so after iTunes introduced podcasts. Prior to that, I guess you could do it with RSS feeds, but it was becoming really technical, and there wasn't much of an audience out there. It was really iTunes that brought it into the mainstream. Kathleen: That's amazing. I mean, that's so early on. How did you decide to do a podcast at that point? David: I think I had an iPod, or maybe a device that could listen to it, or at least I was able to download iTunes onto a computer and then discovered podcasts through there, I think, and then thought, "Wow, this could be an incredible medium for marketing, or for actually broadcasting content and distributing content." I had a website at the time, that was a fairly generic business article's website, because at the time when you're involved with SEO, then if you wanted a webpage to be ranked fairly highly, then all you had to do was submit an article to a third party article's directory, and have yourself an author bio at the bottom that had a keyword-rich link back to your website. That could fairly quickly rank it highly. I thought, "Okay, I'll get into this article's game by having an article's website." So, I had a business article's website. The first podcast was actually reading articles in audio form that people had submitted to me. Kathleen: So, you were like Audible before Audible. That is so interesting. David: Well, maybe a very, very small version of that. Kathleen: Yeah, wow. Fascinating. It's changed so much over the years too, really. It's gotten so much more sophisticated in terms of the delivery mechanisms, and the people that are participating, and the formats, et cetera. David: It's absolutely crazy. Back then, you're only talking about 30 years go. We're obviously recording this in 2019, but it's night and day in terms of quality and technology that's available to you, but also people's Internet connections, and devices. There's just so many things that have happened over the last few years or so. From podcasting to publishing a book Kathleen: Yeah, it's amazing. Now, your latest kind of adventure is taking some of what you've done with podcasting and turning it into a book, correct? David: Yes, it is indeed. I think podcasting lends itself quite nicely to either producing transcripts, or making the content available to people in other means. What I tried to do initially was produce some transcripts of the show and publish that. I came to realize fairly quickly, that actually people don't love to read transcripts, books, articles, whenever people write anything. It's an entirely different form compared with the way they actually say something. What I ended up doing was transcribing a series of live streams initially, and then taking the transcripts and completely rewriting them, to be honest with you, to make them into a readable form for our book. It's a whole lot of work to do that. I figured out that actually, I had to have an eight hour live stream to produce roughly 60,000 words of transcripts, and that is an average size of a 250 page book resource, or an average book basically. But in order to actually get the book in really nice readable form, you have to rewrite it. So, it's as much work, if not more work, than actually writing a book from scratch. Kathleen: You know, this is actually a really interesting topic to me, because I have show notes, and my show notes include an executive summary, if you will, but then I include the full transcript. Part of the reason I do that is also just for accessibility, anybody who is hearing impaired and wants to be able to read it. There's also an SEO benefit to having all of that copy and keyword-rich stuff on the page, but I will say that it's interesting when you look at a transcript. I really read mine, and I go through and I don't really heavily edit it, but I just sort of clean it up a little bit, and I add some headings to make it a little bit more digestible. I'll add some links in here and there. One thing I've learned from doing that, is you're absolutely right when you say that people speak differently than they write, and also than they want to read. I have learned that I start pretty much every sentence with "Yeah." David: I know, it's horrible, isn't it? Kathleen: From reading my own transcripts. David: When you edit everything. Kathleen: It's horrifying. I have now this conscious effort I need to make to not say the word, "Yeah" at the beginning of a sentence, and I'll probably do it 20 times on this podcast now that I've said it. I've had a few guests who have, for reasons connected with how they manage their personal brands, who've wanted to go back and edit the transcript and make it sound like it was something that was written as opposed to said. It totally turns it into something different. I've actually had some debates. With one of my guests in particular, I had a real debate about this because I was like, "It's a transcript. It's there for people who can't listen to the podcast, and want an accurate representation of it. So, we can't just completely change it." But I like what you're talking about, because that's really taking it to a different medium, where you don't have to preserve the integrity of the transcript. You can turn it into something that captures the spirit of it, but is much more elegantly written, if you will. David: Definitely. There were so many things you were sharing there, Kathleen, that we could probably have a full conversation about. When you were talking initially about the fact that obviously transcripts themselves have to be turned entirely into something completely different. What I find is actually the guests, as you've to a certain degree alluded to, actually prefer the written form when that form is representing them. I've reached out to every single person that have participated in the production of a live stream, and they've been completely happy. So, I've done it with the approval of other people as well. But you're also talking about SEO, and an SEO benefit as well. I believe that although Google, because it's probably the most important search engine for the majority of us listening, although it is looking for text to crawl, it's increasingly becoming better at being able to look into audio and see what people are saying, and looking through videos and seeing what the video is about as well. It's not perfect yet, but we're getting to a stage where Google is going to be able to transcribe audio without the written text being there. To a certain degree, the SEO value of producing a transcript, I think next to a podcast, is going to diminish over time. Then the question is, why are you doing that? Are you doing it really for people to view? I've probably been a little bit lazy in the past, of not wanting to do podcast transcripts beside every single episode. Have you actually had many people ask you specifically for transcripts? Or are you doing it because you feel it's great as an inclusive thing to do for all of your audience? Kathleen: It's really more of the latter. Philosophically, I like the idea of making the content accessible regardless of someone's ability to consume it in a certain format. I've philosophically chosen to include transcripts for that reason, but I will say that it's interesting, I publish my show notes on IMPACT's website, which has a lot of traffic. There are several podcasts on that website, and I believe, if I'm not mistaken, that my show notes get more views than most of the other podcast show notes. So, I do have a theory that from an SEO standpoint, there's something there. But again, it's not just a straight transcript. Like I said, I put some H2s in to chunk out the sections, help kind of make it easier to digest. There's also a section at the beginning that if you don't want to read through a whole transcript. You can just look at that. It's been an evolving experiment, honestly. David: I think that's a lovely tip, actually, putting H2s in there, because Google is looking for ways to break down the tanks on a webpage. If you're demonstrating that actually it's more than a transcript to a certain degree, that is what you're greeting because you're editing it so much, and you're ensuring that it's correct, and you're making it as easy as possible for the reader to consume it. I guess those simple things like H2s and perhaps some other small elements that you can bring in like list elements, maybe, if someone's referring to a list as well, would make it much more likely for search engines to treat that text positively. Kathleen: Yeah, it's a labor of love. Quite honestly, I'm not sure if you just made an ROI calculation, if I could prove that there was the ROI and the amount of time I spend. But it's interesting. It's just sort of the direction I've been going lately. Getting started with audio content Kathleen: I feel like we could have a whole conversation about that. But back to yours. Let's actually rewind for a minute. Can you talk a little bit about the podcasting or the live streaming that you were doing, that led to this notion to create a book? David: Sure. Sorry, I can't help asking questions. It's the podcast career in me. Kathleen: No, it's great. I love it. David: I love having a conversation. Kathleen: This is a good conversation. David: I believe that when I see other people live streaming, or producing lots of video content that they get some of the basics wrong, such as decent quality audio. I'm a strong believer that people should start off with a basic quality audio podcast to begin with, and that if they do that, if they have a piece of equipment like... Sorry, I'm talking a microphone that I'm using at the moment actually, but this ATR 2100, I wanted to refer to. The microphone that I'm using is an Electro Voice RE20, which is a more professional microphone. The microphone that I was wanting to refer to was the ATR 2100. The ATR 2100 is a very basic dynamic microphone that you connect to a computer using a USB. It's got a more professional connection cord, an XLR as well, but you don't need to worry about that. If you have a basic microphone like that connected to your computer, you connect with someone using Skype, and you record using a free piece of software that you can connect to Skype. That's all you need to begin with. Then you record 20 or so episodes to begin with, and you get comfortable with producing your audio podcast, and then you move on to video after that. I would encourage anyone that is looking to do live streaming, produce video, is to really think about your audio quality to begin with because certainly when it comes to YouTube, many people consume YouTube videos by walking around the house and occasionally referring to the screen. They're actually out for the decent audio quality content, and they're more likely to skip your video if you're difficult to hear, or you're just not good enough quality. Kathleen: Yeah, I think that's so true. I mean, I have a Blue Yeti microphone, which is, I would say, kind of comparable to the ATR, around the same price range, and easy to connect. You don't need to be any kind of an expert to use it, and don't have to spend a lot of money. It makes a huge difference. To that, I would add, having a really good Internet connection because I definitely had a good solid few months when I moved offices, where my Internet was not reliable. It was some of the most painful times. I had people messaging me who were listeners going, "Have you checked your Internet? It's cutting out a lot." It makes for a terrible experience. You're absolutely right. David: I love your guest booking experience as well, because you are very definitive with guests, with regards to what's good and what's not so good as well. I've done the same thing with many shows as well. Unless you're very specific with people, then people are going to get it wrong, or their audio quality isn't going to be as good as it could actually be, and you're not going to be delivering the highest quality of audio product to your consumers. Some people are switch off because of it, so you have to be like that. Kathleen: Yeah, no one wants you in their ear for 45 minutes with terrible static, or as one of my guests once did, shuffling papers right next to the microphone. David: Yes, or beards, yes. Kathleen: It's just a horrible sound. David: I don't know if you've experienced many beards on microphones. They are not so good either. Kathleen: Yeah, yeah it makes a big difference. So, what type of podcasting were you doing that led to the live streaming? From podcasting to live streaming David: Sure. I got more serious about podcasting about 2014. I think I played with a little bit before then, but as I alluded to, I did about 20 or so shows to begin with solely in audio format. I moved onto what I considered the next stage to getting a decent microphone, doing things like incorporating my intros, my outros, and different bumper noises. I've got this app on my iPad called Boss Jock that I connect to a mixer, and then I can bring that audio into it as well. That makes the show easier to edit in that you don't have to do everything towards the end as well. After that, I started recording on pre-recorded video. I started Hangouts at the time as unlisted video. Then that made me feel more comfortable, because I knew that if everything went wrong I didn't have to release the video at all. It made me feel less stressed to begin with, when I was getting involved with video. The next stage after that, as I see it, is live streaming and actually live streaming to social media, and looking at comments as you're live streaming as well, and being able to bring those comments into the conversation. There's so many different skills involved, and different aspect of that when you're starting video to begin with. You want to be comfortable looking into the camera, at least for the intro and the outro sections of your show. You want to be incorporating your musical elements, if you bring that into the show as well, and of course the readers' comments as well. You just can't do that to begin with. I see so many people, as I mentioned earlier, just starting live streaming and not being able to do that because they haven't gone through those steps. Kathleen: You were doing some podcasting, if I'm correct, for SEMrush as well as for MobileMonkey. You've had a lot of experience, both with your own podcasts, working with some other companies. David: Yeah. Repurposing podcast content into a book Kathleen: What gave you the idea to think about venturing into the world of books? David: Of books. Well, I've done, as you say, a lot of different podcasts. I've probably interviewed about 500 different marketers, so I've got an incredible database of contacts out there, people that I can reach out to. About 2015 or so, I decided to produce an end-of-year show, so perhaps I'd interviewed about 100 people by then. I thought, "Okay, it's be a lovely pre-Christmas-type show to get 20 or 30 marketers on and all give their thoughts of the year, what's their number one tip from what's happened during the year." Yeah, I had about 20 or 30 people on. It was about a two hour live stream, and it went really nicely. The following year, I decided to double it up and potentially make a book out of it. The following year, I did a four hour live stream and had just over a hundred marketers join me live. I gave them all three minutes each to share their number one actionable tip. I took the content and made my first book out of it. It did fairly well. It sold a few thousand copies. It just seemed to be the next logical step in terms of publishing content. I think you have to go where the opportunity is, but you have to really look to see what your competitors are doing out there, and also you have to work harder than other people who are out there. 10 years ago, I used to be able to publish blog posts and quite easily get those blog posts ranked. Then it moved on, and you had to publish incredible blog posts that 2000-5000 words long. Now, unless you've got a fairly authoritative domain name, it's even quite hard to get those sorts of posts ranked. "So, where are the other publishing opportunities?" I thought. Well, perhaps it's not even online at all. Loads of people still read books. It doesn't have to be Kindle book. It doesn't have to be any book in any form. It could be a physical copy book, and people still read physical books: paperback books, hard copy books. "First of all," I thought, "Well, it's very hard to publish a book. It's a lot more effort to publish a book. So, if I publish a book then it's going to position me above other people producing content around the same kind of topic." Then I thought, "Well, there are thousands and thousands of people that want to read this copy in book form as well." So, I guess those are some of the reasons I chose to publish a book. Kathleen: I have to laugh, because hazards of podcasting, I'm in my quiet home office and my dogs start to go crazy. That's the home alarm system, as I like to call it. David: Oh, that's great. I heard that in the background, Kathleen. I was wondering if you were able to edit it out at all. I thought, "Okay-" Kathleen: No, I always tell my guests when I listen to podcasts, I like it to be really organic and not overly scripted. So I say, "You know what, we're going to roll with it." So, I'm leaving this segment in so everybody can hear my two Labrador Retrievers who like to play- literally, if anybody walks by the front of my house they go crazy. David: And I was trying to talk over it, thinking- Kathleen: You're so good. David: Maybe you were going to be able to edit that out, and it was going to be easier for you to- Kathleen: No, we'll leave it in, because- David: Okay. Kathleen: It just gives more color to what's really happening behind the scenes. David: Great stuff. How David published his book Kathleen: You decided to publish a book. Can you talk a little bit about how you went about doing that, because I've had a couple of people on who've talked about writing and publishing books, and they've all taken different approaches. This is something I'm very interested in. I've spoken to so many marketers who've talked about either wanting to write a book, or wanting to use the content creators within their company to create a book as part of their marketing strategy. David: Yeah. Kathleen: There's the route of working with a publisher. There's self-publishing. There's so many options now. Can you talk about how you specifically did that? David: Sure. I haven't gone down the working with a publisher route, mainly because I think there's more profit in it being a self-publisher. I initially, several years ago, published some books just for Kindle. If you publish books for Kindle, then as long as you're charging between $2.99 and $9.99 in US dollars, then you can get 70% commission as a result of doing that. So, that's quite appealing. Then after that, when I published my first physical book, which was called "Digital Marketing" in 2017, that book was also published using a service called CreateSpace at the time. That's been merged into KDP, which is called Kindle Direct Publishing, but you can publish paperback books through that service. If I'm publishing a book for $14.99, and through that service for a book that is 268 pages long, it's costing me about $4.10 per book to get that book produced- Kathleen: Hard copy. David: No, that's our paperback copy. That's a paperback. Kathleen: Oh, okay. Well, yeah, but I mean printed. Printed copy. David: Yeah, absolutely. Yeah, sorry. I'm just differentiating because hard copies- Kathleen: Hard cover and paperback, right, right, right. David: Exactly. They cost quite differently. But paperback, they cost in general just over $4.00 if you're producing a book which is about the same size as mine, which is 268 pages of paper. Kathleen: Am I correct that, because I've talked to somebody else who has used Kindle Direct Publishing, am I correct that there is no minimum quantity for orders? You can order like one at a time? David: Yes. Yeah, yeah exactly. You can order them yourself personally. You can get your pre-published copies, which have a bit of a nasty extra bit on the front to say, "Do not resell." Then after it's published, then you can get the proper versions, which are the single copies. However, obviously you're going to be charged postage for doing that. So, sometimes you're better off getting 10 copies, or something like that. You can also do the same through another service called IngramSpark. IngramSpark also will produce that hard cover version of your book for you. If you're producing a hard cover version, then it's normally about five or six dollars to produce, because you've got that hard cover on top of it, and you've got your sleeve on top of it as well. So, you generally have to price it a bit higher. Hard cover versions, they're generally about $25.00. The paperback version is generally about $15.00. There's not much more profit in the hard cover version. I think the only benefits really for the hard cover version, is the perceived value of it. Because again, it looks like a higher quality product, so if you have your own events, and you're speaking at events, and you want to take hard cover copies of your book with you and sign them, then the hard covers are very nice in terms of perceived authority. Kathleen: Yeah, it's really fascinating to me, because the technology is such now that anyone can really do this. There's no issue with affordability. There's no issue with you need to have the connections in the publisher world. Anyone can write a book and publish it, and create a really very professional quality-looking printed version, as well as Kindle version, which presents an amazing opportunity from a marketing standpoint that so few people have taken advantage of. David: Well, it's hard, hard work to do and it takes a lot of time to do. So, I can understand where people don't want to do it. But I think it's about planning your content marketing out for the entire year, and if you're doing a podcast, if you're doing a series of blog posts, if you really think about it then you can design 12 chapters in a book out of the content that you produce. To a certain degree, you can write your book over your year out of your content that you're already producing. So, it needn't take a whole lot more effort. Which came first, the podcast or the book? Kathleen: Is that the way that you went about doing it this time? Did you really conceive of this in advance, and then create audio content kind of knowing that your end game was to create the book? Or did you have this audio content and then think, "Wait, this would be great fodder for a book." David: It's the way that I probably will do it in the future at some point. What I did this time was a few months ago, I hosted a massive live stream which was eight hours long. I had 134 marketers on that. Then I took the transcript of that and then completely rewrote it. Then I determined the categories of each piece of advice that all the marketers share. So, it was just the one question that I asked everyone. Hello doggy. I've got a two old son, and he likes to say, "Hello doggy." Anyway, look I think what I did this time was a whole lot of work, probably too much work, but it was a learning process as well. I categorized all the content after receiving it, because I was just about to say I asked all the marketers the same question, "What's your number one actionable marketing tip right now?" They all shared that number one tip. I thought the tips that were shared fitted very neatly into three key sections of the book, and then also into 12 categories from there as well. The 12 categories, of course, turned into 12 chapters. From the research, I've done 12 chapters. It's quite as nice number to have within a book. That's a nice way to break it down, if you're planning a book as well. If you want to write a whole book as a one-off, 60,000 words, that sounds quite a lot. But if you break it down into 5000 words per chapter, even 4000 words per chapter, plus an introduction and conclusion, then that's not too much to do. The difference between blogging and writing a book Kathleen: Now a lot of the marketers that listen to this podcast are prolific content creators. They are very accustomed to blogging, to writing articles. Many of them are also podcasters of their own right. I'm interested to know from your perspective, what do they need to know about creating content that is intended for a book as opposed to writing articles or blogs, which is a little bit more episodic, is there something different that you need to do as you approach that project? David: I think the key thing is, is to have that thread. So, to have that thread that binds the different chapters together. So, you can't just write 12 separate large pieces of content without that intended thread together, and the intended overarching topic of your book. I think you have to start with the end in mind. A good way to do that, is actually to research Amazon, to have a look at categories of books and to see what exists already, and where the opportunities are. Because one outcome that some authors wish to achieve is to get a bestseller. You can get bestsellers in different categories of Amazon as well. It's quite nice to take a screenshot of your book being number one in a category of Amazon. If you look into what topic of marketing, or another area of your business, and you find a category that's either under-serviced or perhaps doesn't actually have the type of book that you believe that you can offer, then that's a good place to start. Then you've got your topic of your book. Then it's a case of brainstorming maybe three sections, then four different chapters within those sections of your book, and then starting writing from there. Then you've got your thread, which binds everything together. Marketing your book Kathleen: So you write the copy, you probably create cover artwork, you pull all this into the Kindle Direct Publishing system so that you're able to publish the book through it. You just talked about people wanting to have Amazon bestsellers. What does someone need to know as far as the work that has to happen to market the book, especially before it's even published, because the little amount of research I've done into this, it's very clear to me that a lot needs to be done before the book even hits the virtual shelves, to lay the groundwork for a successful book launch. I'd love to hear from your standpoint what you're doing for that. David: From a successful marketing perspective on Amazon, one of the key things is reviews. It makes it more likely for people who stumble upon your book to decide to make that purchase if there are positive reviews. So I think that's a bit of a given. It's much, much better to have something in the region of 10 reviews in the marketplace that you want to target. I'm targeting with USA and the UK, and you want to have a reasonable number of views in those marketplaces. You've also got to be thinking about [crosstalk 00:31:22] together. You've got your hard cover, your paperback, and also your Kindle edition, and perhaps even an audiobook version as well. They can be all tied together. You can ask Amazon to tie those things together. One of the important things to try and get on a bestseller list within Amazon is to get a decent number of sales within a short time period. I would be guessing to a certain degree, but I'm pretty sure that if you can get maybe even just 100 sales of your book within 24 hours in a category of Amazon that's not particularly competitive, then you're quite likely to get fairly high within that category. So, a number of reviews. If you publish your book a few days before you intend to say that you're going to publish it, you reach out to your friends and your colleagues, and you ask them to buy it, and then you ask them to submit a review as well. Then on publishing day, you do some kind of live event. I'm doing a massive live stream on launch day. One of the intentions behind that is to get as many people as possible to buy it as soon as possible, and to get that algorithm of Amazon to notice that there's a lot of sales of that particular product happening. That's going to move it up the rankings. Kathleen: So I did see that. I went to your MarketingNowBook.com website, which if you're listening, you should check it out. I saw that you have the book launch party set for December 10th. I'm definitely going to sign up to listen to that. I'm curious to see how that comes off. It's a great idea. It's interesting what you said about having a slightly different date when the book goes up onto Amazon versus the official launch date. David: Yeah, well you can do that with one person. With IngramSpark, it's possible. There are lots of strange technicalities. With IngramSpark, it's possible to have your book available to purchase prior to launch date. With Amazon paperback, with a KDP paperback, it's not possible to do that. But with Kindle, it is possible to do that, to have pre-orders, is the technical term. You could have your book available for pre-order. I believe though any sales made within that pre-order period doesn't count towards the ranking after the book's been ranked. That's not going to help a lot with regards to your ranking afterwards, so you do want to make a lot of sales, if possible, on rank day. What I'm going to do is make my hard cover version and my Kindle version available on December 10th when it launches. I'm in the process of doing a quiet launch for the paperback version. That's going to be publicly available hopefully within the next few days. We're recording this on the second of December, so it'll be available a few days just before the 10th of December if everything goes according to plan. Then I'm going to get a few friends and colleagues to buy it, and to publish reviews on that version. I'm going to have that linked together with the hard cover version and the Kindle version, which is going to be then published on the 10th of December. Kathleen: That's great. Well, I can't wait to check out the book when it comes out. Again, if you're listening, you definitely need to go to MarketingNowBook.com so that you can sign up to attend the live stream. This has been so interesting, David, just hearing this whole process laid out. While I think you've made it clear that obviously writing a book is no easy undertaking, and I think it's important to understand, but I also feel like you've made it very accessible in terms of understanding the process of bringing a book to market. So, I appreciate that. David: Yeah, hopefully a couple of people give it a go. It's not easy, but if you plan it out beforehand, then you can save yourself a bit of heartache, perhaps, that I've gone through. Kathleen's two questions Kathleen: Yeah, that's great. Now I have two question I always ask my guests, and I'm curious to hear what you're going to say. We talk a lot about inbound marketing on this podcast. Is there a particular company or individual that you think is really killing it right now with inbound marketing? David: The company that springs to mind is a company called Conversion Rate Experts. They've been doing this for a while. What they do is they put together blog posts that are on a fairly infrequent basis. They probably publish maybe just once every two months or so, but they are incredible case studies that really help you with conversion rate optimization. Although these blog posts are thousands of words long, they've got videos in there, they've got wonderful images in there as well. You feel that you're getting a lot of value from that. Towards the bottom of the page, they say what you should be doing now. Then they've got a list of call to actions at the bottom that introduces you to their service. But it never feels like they're asking for the order beforehand. They're providing so much value beforehand, and they link up lovely emails with this as well, and entice people to read the articles. I think that a lot of marketers haven't necessarily got the right idea of what a blog is. A lot of blog publishers don't have this sense. Obviously, blogs originated from web blogs, which were regular updates of people's activities. To me, a blog is just a publishing opportunity. It's a CMS now, with some marketing opportunities baked into it. It's just a publishing opportunity. If it's a publishing opportunity, you can publish any type of content in there, and I think this company, Conversion Rate Experts, demonstrate that a blog can be used for different reasons. Kathleen: I love that point that you just made about a blog being a publishing opportunity. The last job that I was in, I was really charged with building out essentially a brand publishing business for the company, which is really just like a blog on steroids, if you will. It's articles, it's podcasts, it's all the different type of content that you think of when you think of a publisher. There's no reason that any company can't do that. It's certainly a more aggressive approach to content marketing, but it can be a very powerful one, all of which lives on a blogging platform. Kathleen: So, you're absolutely right when you characterize it that way. David: Great. Kathleen: Love that. Now, second question, the world of digital marketing is changing at what can seem like a lightening-fast pace. How do you personally stay educated and up-to-date? David: Funny enough actually, since I've started being really serious about podcasting in the last five years or so, I've probably read less to keep myself up-to-date with things. I've interviewed about 500 or so different top marketers out there, and that's been a wonderful way to keep up-to-date with things. I would say to people if you haven't started a podcast, simply do it to have great conversations with powerful authorities within your niche. I would have done all these podcast episodes with a view to just having the incredible conversations, and making incredible contacts that I've made. Obviously, not all my guests would have wanted to do that. They would have wanted to have the content distributed as well. But for me personally, that's been a great source of knowledge. I listen to a couple of podcasts as well. I listen to a podcast called Podcasters Roundtable, which is a good source of podcasting news, what's happening in Apple Podcasts, and podcasting in general. I listen to Mixergy, which is more of a digital business/entrepreneurship-type show, but that's a great source of information for me with regards to what's happening right now in digital businesses. Then I could tie different marketing activities up to that. The final source that I'll give you, if I'm hosting shows that relate to SEO and pay per click, then Search Engine Land is probably one of the key blogs that I go to, to keep abreast of the latest news there. Kathleen: Yeah, that's a great one. You are preaching to the choir when you talk about the power of podcasting. I always say if people listen to this, they've probably heard me say it several times, that I would keep doing the podcast even if no one listens, which as you pointed out, I'm sure my guests would not want that. It's an incredible learning experience, and I get to talk to people I would never otherwise meet, and to learn from them. That's just such an amazing gift, so I could not agree more with what you said about that. David: Absolutely. How to connect with David Kathleen: Well, if you are listening and you are interested in connecting with David or learning more, David, what's the best way for people to get in touch with you? David: I've got a brand new domain name that I just acquired a couple of months ago or so. Obviously, I'm using MarketingNowBook.com as the landing page for the book, but I'm really happy that I've finally got the DavidBain.com domain name. It took me a long time to get that. There were many people that squatted on it for a while, but I eventually got it. I had to go down to auction to get it. I'm thankful to have David Bain on LinkedIn, David Bain on Twitter, and DavidBain.com as well. I guess any of those areas are good. You know what to do next... Kathleen: That's great. All right, well if you're listening and you liked what you heard, you learned something new, please head to Apple Podcasts and leave a five star review for the podcast. That's how new people discover us. If you know somebody else whose doing kick ass inbound marketing work, Tweet me @WorkMommyWork, because I would love to have them be my next interview. Kathleen: Thanks so much, David. This was a lot of fun. David: Great to be on with you, Kathleen. Thanks again. Kathleen: Yeah, and you win the award, by the way, for muscling through more dog barks than any other guest. So, kudos to you. David: Sounds good.
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In today's episode John talks to David Well's from the United Nations Counter-Terrorism Executive Directorate (CTED)about the role which the UN broadly, and CTED specifically play in counter-terrorism and CVE. This episode is sponsored by IB Tauris. If you want a 35% discount on all books from the Middle-East and Politics sections of bloomsbury.com be sure to use the discount code TALKINGIBT19 at checkout. If you or anyone you know is interested in doing an MSc in Terrorism and Counter-Terrorism Studies at Royal Holloway, University of London be sure to visit rhul.ac.uk for more information.
In this episode of The Dr. Hedberg Show, I interview Dr. David Brady about how to overcome Fibromyalgia and his new book The Fibro Fix. We talked about the history of fibromyalgia diagnosis, the causes of fibromyalgia, the difference between "Classic" Fibromyalgia and "Pseudo" Fibromyalgia, treatment strategies, supplements for Fibromyalgia, and much more. If you have Fibromyalgia or know someone who does, this is one interview you definitely don't want to miss. Dr. Hedberg: Well, welcome, everyone, to "The Dr. Hedberg Show." This is Dr. Hedberg, and I'm really looking forward to the conversation today. We have Dr. David Brady on. And if you look at the history of "The Dr. Hedberg Show," we've actually never had a repeat guest. And so, Dr. Brady is gonna be the first repeat guest. Our last podcast discussed the GI map stool test from Diagnostic Solutions. So, I urge you to check that out. So, for those of you who don't know Dr. Brady, he really is the foremost authority on properly diagnosing and treating fibromyalgia, which is what we'll be talking about today. He's been featured in top media outlets like "Elle" and "NPR." And he's also published in leading peer-reviewed medical journals including "Open Journal of Rheumatology and Autoimmune Disease and Integrative Medicine," a clinician's journal. He's published chapters on fibromyalgia in definitive medical textbooks, including "Advancing Medicine with Food and Nutrients" and "Integrative Gastroenterology." He has presented at prestigious medical conferences, including the Annual Symposium of Functional Medicine and the Integrative Healthcare Symposium. He is in private practice at the Whole Body Medicine in Fairfield, Connecticut. And Dr. Brady is also the Director of the Human Nutrition Institute at the University of Bridgeport, as well as the Chief Medical Officer of Designs for Health and Diagnostic Solutions Laboratory. So, Dr. Brady witnessed his own mother suffer through the ringer of the medical system. So, Dr. Brady is uniquely passionate not only as a doctor, but also as a patient advocate. So, his website, more specifically for his book, we'll be talking about today is fibrofix.com and then his practice website is drdavidbrady.com. So, Dr. Brady, welcome to the show. David: Dr. Hedberg, thanks for having me back. I didn't realize I would be the first repeat guest, so that's quite an honor, and thank you. Dr. Hedberg: Yeah. So, I'm looking forward to this. Let's really dig into fibromyalgia. And so, you know, you witnessed your mother going through the medical system and then you became very interested in fibromyalgia. Is there any particular event that really got you interested in this condition? David: Well, I got an interest in sort of integrative medicine, as we would call it today, or like just routes of care and ways of looking at healthcare conditions, particularly complex chronic conditions that were not the, you know, real standard orthodox way of doing things or standard of care probably because of that experience with my mom growing up. I mean, my mother battled breast cancer most of my childhood, and double mastectomy, got radiation and chemo, and all that stuff back in the '70s when it was even more brutal than it is now. And she found some of her best outcomes and best quality of life, unfortunately it was toward the end, with some providers who were doing more sort of integrative complementary medicine type of stuff. So, it really opened my eyes to that. And even though I originally went and became an engineer and worked in aerospace and stuff, I always had a sort of a desire to come back to dealing with the human condition, and I had originally thought I would use my sort of engineering background, and biomechanics, and things like that, and to go into research, you know, in biomedical research. I had the engineering background, I was looking for ways to get the medical, clinical background.
You have 3 options: Famine, Fleeing, or Plague, which one do you want? David's pride leads to a choice that will effect his people. What can we learn from David? We'll talk about it in this episode. --- Support this podcast: https://anchor.fm/gracepointedaily/support
Joe Fontenot: David Odom, you are associate professor of student ministry here at NOBTS and you're the Director of the Youth Ministry Institute. David Odom: Yes. Joe: Now you got your start in youth ministry. David: That's right. Joe: And eventually transitioned to teaching at a seminary level, but you're still teaching youth ministry. What I think is really interesting, and you wrote a blog for us recently, is kind of an insight into Generation Z. Age wise, who is Generation Z? Who is that we were talking about? David: Well, they're teenagers and even children today. Typically the age range starts at those born 1996 to about 2010. And then there are some that would sort of flex those date ranges a little bit, but it gives you an idea that we're talking about children, youth, college students today. Joe: Yeah. So this is a pretty huge range. So we're talking to like eight years old all the way to even 22 years old, which are graduating college in a lot of cases. So you go from like third grade to college graduate. So this is a massive generation, at least in this span you're talking about. And I think for a lot of people, a lot of people are just now getting used to who Millennials are. Millennials are in a lot of ways coming into their own. Economically they're becoming this force. But now we've got Gen Z who in a lot of estimates are just as big as Millennials, if not bigger. They're kind of arrival. So here's the question. How do people best relate to Generation Z in the church? David: Well, I think that that's the question because I think, and many of us that are seeking to help churches understand this generation or wanting to help them understand how to reach them and to know exactly how to help them come to faith and then grow in faith. I think that it comes down to relationships and building and developing those relationships and that takes time. So we've got to make sure that we are wanting to know a little bit more about who they are as individuals. And maybe even some of the assumptions that we may have about teenagers and young people letting some of that go in order to build those relationships. Joe: You know, it's not uncommon that the college years at a church dropoff, unless you're like a college church kind of thing. And the youth and the younger ones are often in a different area for many of their activities. Does Generation Z, does this age in general, do you think they want to be part of the bigger church? David: Well, I think so. And, it's not necessarily something that I don't know that I hear students verbalizing that they want to be a part of the church as a whole. But I do hear students talk about the impact that they want to make. And so part of that then comes from what we are understanding about Generation Z and their desire to want to see change happen, and even changing institutions like the church. And so they want to be a part of seeing things change and grow and develop rather than maybe keep the status quo. And so that requires involvement, that requires them being a part in order to see that happen. Joe: A big criticism of Millennials is that they are entitled. Do you think that Generation Z acts entitled or do they feel entitled? What is your opinion on that? David: Well, no. I don't know that so much it's an entitlement as much as it is empowerment. I think that today's students feel empowered to really make a difference. I think we see that expressed in the desire for Generation Z to join a cause and be a part of a cause. And one of the reasons for being a part of a cause or movement is because they have a real sense that they can make a difference and they can make a change. And their involvement and their participation, their commitment to a cause enables them to be, I think, feel less entitled as much as someone who's entitled would feel like what does society or the institution have to do for me. And the other side of it is saying what impact then can I make on culture or in my church? Joe: Right. I think one shift that I've seen, like when you look at older generations. Older generations, I think many times think in more of a hierarchy in the sense that I'm not qualified such and such. I haven't put in my hours to be at this table. And one thing I see a lot with younger people, Millennials and Generation Z, is that they seem to just jump right in and say I want hands on right now. David: Right. Joe: And I think a lot of people confuse, like you're saying, it's really more of an empowerment. They want to be involved right now. David: Right. And I think that we need to rearrange some of our structures in our churches to allow for that participation at that level. I think that so often leaders can be comfortable with having a role that's allowing teenagers to have more subordinate place in the churches, in our churches. But it takes some effort and some intentionality there to say no, what are some ways that we can enable our students to lead and take ownership of various aspects of the ministry that we have. Joe: So here's the question, what kind of areas would someone like a teenager who doesn't have a lot of life experience yet, but as a heart to do something, what are some areas that they would be equipped generally speaking to get involved in? David: Right. Well, and I think of service and ministry opportunities. I think that talking with students about some things that they might be passionate about and related to serving the community in some way. And then gathering together students and talking about, okay, what are some things that we could do as you lead and kind of put the onus back on them to say "If you were in charge of this, what would it look like? What might we accomplish or what impact might we make if we were to have us all work together to minister, to serve whatever it might be?" It could be in our church locally or it could be in the community. Yeah. Joe: Is Generation Z different from Millennials? Obviously the age are different, but is the characteristic, do they act differently? David: Well, I think that there's subtle differences. I'm not so much necessarily that they're acting differently, but I think that there are some things that are some identifiers or characteristics of this generation. I mentioned the change and looking to change institutions, wanting to join a cause and those types things. I think too that when we think in terms of of generations, separate generations, we're talking not only in terms of an age range and folks that study this look at a population spikes and how that plays into making a determination from one generation to the next. David: But it's also shared experience. It's shared cultural experience. Those that are in a certain generation have shared a life experience that's similar. And so when we think about today's generation, we're talking about folks that have grown up with social media and access to internet through their phones and these types of things that's something that adults have come into and made it part of our lives, but these are young men and women who have had these devices and had this access their entire lives. And so it's, it's a pretty, pretty significant difference. Joe: If someone in the church who's from an older generation, whether it's Millennial or older, wants to mentor a person from Generation Z, granted, an eight year old is different from a 22 year old, but let's just say youth or college, right? Just for this question. How would they go about that? How would they approach them? Would someone from Generation Z even be interested in that? David: I think so. I think that there's an opportunity in a mentoring type discipling relationship, you have an opportunity to pass on and share what you have learned in your experience. And I think that if you're just starting out, if you're interested in that type of a relationship, then you want to start basically trying to get to know folks, right? That you want to, if it's a church setting, look at volunteering in some way, whether that's just a being a sponsor or helping out in some way in a youth ministry. And as you have an opportunity to get to know students and build some rapport, asking questions about their life and things are concerned about, then you have an opportunity maybe to have a greater impact. Whether that may be a small group leader or volunteering in some other way. And then after that, then there's an opportunity, I think, once relationships are built to be able to approach or to offer the opportunity to be a mentor, to be a spiritual leader, a discipler in that situation. Joe: One thing, one theme I hear as you're describing this is Generation Z is ... It's less about "Generation Z" as it is in the case of teenagers, these are teenagers. David: Okay, right. Joe: Right? Or these are college age or something like that. One thing when we were talking the other day, you mentioned to me is that they're not a whole new species as much as teenagers kind of had this shared, like you mentioned before, the shared thing that they go through. And I think that's pretty helpful too when you kind visualize as an older person, how do do I engage with these people? I have a passion. I want to help them learn. How do I engage with them? David: You're talking about really developmental differences, right? So we know that we're talking about different generations, but that's not necessarily the same thing as just talking about what someone's going through developmentally that's a young person, young adult as opposed to a more mature adult. So there are some common experiences that everyone goes through and experiences during the teen years. As you're getting older, you're wanting to have more independence and to be able to make your own decisions. And that can be difficult because you may be labeled as rebellious when maybe really you're just asserting that independence that you naturally want to express because you're no longer a child and you're becoming an adult. David: And so, I think that for me, when I'm interacting with a student then I'm trying to come less with maybe preconceived notions about what teenagers are like today as more of wanting to find out about them as an individual and to ask questions about who they are, things are concerned about. And I think that that is again, all a part of that interrelation, interacting and inter-relational skills that you want to have with someone. Joe: Yeah. Yeah. I think that's really helpful thinking really them as not as a demographic but as an individual. David: Right. Joe: Right? And one thing I noticed about teenagers is they don't always give feedback. David: Yeah. Yes. Joe: So how do you know when you're interacting with them, if you're really helping or they're just tolerating you? I mean, in your experience, what are some ways that you know that you're actually being a positive influence in their life? David: Right. Well, it can be tough and typically you don't ... It's maybe years later that you get feedback or you hear a student share about the positive impact that you made on their life. But it's years later after they're reflecting back. I think in the moment that it's really all about just being yourself. It's all about being genuine and real. It's rather than trying to be cool or to be something that you're not, or just to try to fit in or to engage with a teenager. It's more about just being honest about your own inadequacies or maybe not so self conscious about who you are as an adult or an older person in trying to relate. And just seek to get to know them and to be willing to ... Maybe they'll be a little nervous around you and maybe you're nervous around them at the same time. But I think that any of us would respond to someone that genuinely cares about us and is expressing a desire to be a help and support in any way we can. And I think that students respond to that. Joe: You know, that's really helpful because when you think about all the different social media platforms, right? This group is usually the one of the first ones to find them and use them and embrace them. And everybody's else is like well, I just figured out Facebook, which they're like, you know, that's terrible. I never go on Facebook. And so it's kind of helpful to know that you don't need to be cutting edge on all that stuff simply to engage with them. They're not necessarily looking for that. David: No, not necessarily. And in fact, I think that there is a sense of ownership that students have with whatever social media might be popular at the moment. And when we kind of invade that space, they're maybe not as comfortable with that as maybe they would like to. It doesn't mean that we totally are not using social media at all, but that we have to feel that we're using social media or engaging with students in social media as a way or as a means to get to know them. David: I think it's really the other side of it. I think that as I'm developed a relationship and as I know students, and so I get to know them, then maybe I'm able to interact social media in some way and it's less intrusive, right? Because I already have established a real face to face relationship with them. And that face to face is key. Even though this is the social media generation and they're interacting with between three and five screens every day. Studies are also showing that they value that face to face interaction. And that's a win for us at the church because we have an opportunity to do something low tech, which is to have those face to face conversations and to realize that it's something that students value and they're not necessarily sensing and feeling like that I've got to only interact with you digitally. But now there is a longing for the intimacy of the face to face, the being in the room. Being present and being real. Joe: You know, I remember when I was in the youth, I had to go to church. My parents went to church. So I kinda had to do some things even when I didn't want to. And I think sometimes we can look at the youth and we can kind of wonder are they here because they want to be here? Or they here because their parents want them to be here and they don't really have a choice? Are there ways that are ... Let me me back that up. Are there certain things that hold this group back from wanting to get involved in the church? In other words, they might appear to be involved because their parents are making them go, but on the inside they could care less or whatever. What are some of the things that caused them to care less? What are some of the things that we could do differently to involve them more in the work of the church? David: Right. Well, I do think that integration in the congregation is key. Otherwise I do think that as they get older, as they graduate from high school, and we see this in statistics, that students are walking away from the church. And some walking away from faith. And so we do need to be more intentional about how we are seeking to find ways for students to become more involved. And I think it goes back to what we were talking about earlier about the empowerment that I think students feel, if we will sort of get out of the way. David: There's an opportunity for us to provide leadership opportunities to students, leadership in the youth group itself or perhaps even leadership in variety of ways where some churches have changed bylaws to allow for teenagers to serve on committees. For teenagers to be involved in various ways as ushers and serving and those kinds of things. Parts of leadership on teams, whether that be some kind of ministry team or service team, missions work. All these types of ways are ways in which we can help our students understand that they're not just the church of the future, but they have a place now. And if we want them to be a part of the church of the future, it means giving them opportunities to serve and be a part of the church now and here as students. Joe: You said something that stuck in my head. Some churches have changed our bylaws so that teenagers can be on committees. And my first thought is teenagers, you know, what if they make a bad decision, you know what I mean? That's kinda their life right now. They make a lot of bad decisions. Maybe that's a stereotype, I don't know. So how does a church who wants to do things like that do it in a way that doesn't just derail the train and the process? David: Sure. Well, and I think that we're talking abut situation that would be a group primarily of adults and that they would be one or two teenagers, a part of that committee. So I'm not talking about necessarily a completely student run a committee, although there could be value there too. But part of it is to realize there are going to be mistakes that are made. I think there are going to be ideas that are gonna kind of be seemingly out of nowhere. Or they're going to be opinions that aren't gonna necessarily be the opinions of the other adults in the church. David: But being a part of that is beneficial, beneficial to the student to help them grow and mature in their faith and maturing as as a young adult. But then also beneficial to those adults as well. To have input and to seek advice and to have the perspective of a young person is pretty special. And wanting it to be less about just having a student on a committee just to maybe have that one token youth or young person on the committee, but to genuinely respect that opinion and to want them to be able to contribute to some way. Joe: Yeah. I remember when I was about 16, my youth minister at the time sort of took me under his wing and I wasn't talking about going into ministry or anything like that. He just just did this, and he treated me like an adult. He didn't just give me anything I wanted as if he couldn't tell me no, but he just talked to me like an adult and that made such an impact. And it could have been that nothing shifted, no authority shifted, nothing like that. I don't even remember. All I really remember was that he valued my input. And that left such an impression on me. And what does it take? What does it take in your opinion to do that for someone who wants to get involved with these people, these youth? What kind of time commitment are we talking about here? What kind of investment are we talking about here to actually start making a difference in their life? David: Well, time is a big part of it. And it can be maybe a difficult thing to think about because we're all busy and we all have busy schedules and lives. But if we're really wanting to make an impact on students life, it will require time. But I think that we're talking about also a somewhat slow process because you're talking about giving time to develop a relationship, which it takes time to develop that level of trust that you need to have and you would want to have with teenagers. And the student though is going to translate that time commitment that you're making to caring and love, right? They're measuring that. That you care enough about me to take time out of your schedule to spend time with me, to be my small group leader or to mentor me or to disciple me along with a small group of students. But over the long haul, that time that you dedicate to interacting with students in this way will see results and will result in opportunities to see that student grow in their faith. Joe: Can you tell us the top mistakes or it could be the top one mistake that you generally see people make when they try to engage with this youth age. David: Right. Well, I think that maybe we think that we've got to change the way we dress or we've got to change the way we speak, the languages that we use. Maybe we try to use phrases or terms that we hear on the radio or social media or something like that. We think that those types of things are going to help make that connection with the student when really I think that the teenagers have a pretty good radar and a pretty good sense of when someone is being kinda disingenuous, right? And they're not really being real. It's more of a false front maybe in some way. And it's not necessarily our intention, but that's the way it can come across. David: And so again, I really think that the best advice I could give was just to be yourself, right? And to just own the fact that you're an adult, you're older. You know, you could be a young adult in your 20s or someone in their 40s and yet, even someone in their 20s has a different experience. And what's cool now isn't what was cool then and so there are going to be those things. David: But I think too that we also need to be able to not take ourselves so seriously. That we can joke about those differences. That we can be willing to be self deprecating where we recognize that there's some things that we're just not cool anymore and we're not going to be. But we again, are comfortable about those things and willing to even joke about some of those things. And that helps I think put the student at ease too. That you're not trying to be something that you're not and you realize that you're an adult. But that there are opportunities to still connect with a teenager from another generation because you're just expressing genuine care and love for them. Joe: This has been very helpful, very insightful, David. I appreciate you coming on podcast. David: Definitely. It's been a pleasure.
Blair asks David to make some predictions about the new year, and then they discuss some ways that businesses can prepare for and react to (God forbid) an economic downturn. TRANSCRIPT BLAIR ENNS: David, predict the future. Coming year, the year ahead ... It doesn't matter when people are listening to this or when we've recorded it, but in the year ahead is it going to be a year of abundance or is it batten the hatches, we've got trouble? DAVID C. BAKER: I think it'll probably be right in the middle. I think it'll be- BLAIR: Oh, come on. Make a guess. DAVID: Oh, no but that is a real prediction. BLAIR: Don't you love driving through these small towns and rural parts of whatever country and you see these fortune tellers that read the cards or whatever? And they're all in these shitty little offices. I'm just wondering, how does that work? DAVID: How come they're not in palaces? BLAIR: Yeah. Right. Or the 49th floor of some high rise condominium. DAVID: You talk with your clients, a lot of them every week, and I do as well, it'd be interesting to see what you're feeling right now. What they're feeling right now. My sense is that there's quite a bit of uncertainty, like the stock market wasn't great through last year, and unemployment is still low, and there's some political uncertainty. The world feels a little bit fragile. But really that's kind of in our heads. DAVID: The actual business results have been pretty good for almost everybody in the marketing field. There are a few isolated examples of firms that have struggled a lot. Often because they lost one big client or something like that. But it's generally, firms have been doing really well, and there's thinking okay, is this next year, is this year, 2019, going to be as good as last year? DAVID: I don't think it will be better. I don't think it will be a whole lot worse. I think we'll be lucky to have a similar year. But what do you think? BLAIR: For context, we're recording this on December 21st, 2018. So Happy Solstice by the way. So we're going into 2019 wondering how things are going to shake out. And the stock market, see I don't pay much attention to the stock market but I just noticed that all the gains for the year have been wiped out in the last few weeks. So the market is down. There is discussion within the broader financial markets about whether, or not we're headed for another 2008-ish crisis. There is the global political unrest and uncertainty. BLAIR: But in the face of all that, if you ask me to make a prediction of the year ahead ... this has nothing to do with reality, I realize as I was thinking about it. And only to do with whatever is going on inside of me. But I always believe my future is bigger than my past, to steal a phrase from Dan Sullivan, from Strategic Coach. So I'm an eternal optimist. BLAIR: Now it doesn't mean I think that the market conditions are going to improve next year. I actually don't spend a whole lot of time thinking about this. That's why I'm going to interview you on it. Because you've spent some time thinking about it. And this can't be right, but it's a great way to go through life. I actually think it really doesn't matter what the markets do. BLAIR: If I'm running a well run business, I will be able to survive anything. So, that's the way I think about. And then how I think about a bad year, looking back on it, might be entirely different. But I go into it with this, you might call it naiveté, around what's going to happen. But you should hope for the best and prepare for the worst. Is that the saying? DAVID: Yeah. That's a really interesting perspective. And by the way, you are so messed up in the head. BLAIR: I know. I acknowledge that. DAVID: You think I wouldn't be surprised anymore by the stuff you say. BLAIR: What surprised you? DAVID: Well, you said something really powerful, that I don't want to pass up. I want to make sure that people don't miss it. And that's that from a personal performance, or a firm performance standpoint, next year will be better than last year. And that's separate than what the marketplace might bring us. I think that's really, really smart thinking. DAVID: I want to clarify having, in that broader context, that yeah, I absolutely believe that too. Every one of my clients is going to be running their business better in 2019 than they were in 2018. But what will the marketplace bring them? And I think that's just brilliant the way you just separated those two things. BLAIR: So I've spent a lot of time contemplating the question of, is there such thing as free will? Do we human beings have free will? Then one day I realized, you know what, it's kind of a stupid question. Because the answer is it doesn't matter. You should live your life like you have free will and you have total control. And I feel the same way about business. BLAIR: You should operate your business like you have complete control over what happens. Because I think in those moments when we feel helpless and out of control; and if we have a tendency to blame the market, really most of us we're running businesses that can survive a downturn in the market. If we're making correct and courageous decisions and preparing ourselves appropriately, it really doesn't matter what happens in the market. BLAIR: Now there are some exceptions to that. Maybe we'll get into that. Because some vertically specialized firms in particular are more susceptible to an economic downturn. Is that right? DAVID: Right. For sure. I think of this as ... so you, the people listening to this, are the captain of the ship. You're standing on the deck, and you can't control the winds that are going to come your way, but how far out should you look so that you can take corrective action if you see an iceberg coming. That's kind of your job as the captain. You can't just rail at the winds, assuming that you're going to change them. But you can get your crew ready. You can think about the decisions you need to make, as far in advance as possible. Think about the culture of the crew and all of those things. DAVID: So it's a unique balance that nobody else at the firm has to think like you do with a finger firmly on the immediate pulse, but also looking far ahead, and making those smart decisions that way. BLAIR: Okay. Let's begin by talking about those things that our listeners can do to prepare before a downturn even hits. So if you suspect, or if you're worried about the economic conditions in front of you, wherever you are in time, what are some of the things that you should do to prepare yourself? DAVID: Well, one of the things that you might do is think about, rather than building a much more expansive, slash expensive, amount of money going to people, you could give somebody a one time bonus, instead of building that amount into their usual salary. Because it's very difficult to take money away from somebody, so that would be one thing that you could do. I don't mean a Christmas bonus. I just mean, instead of an annual bonus, maybe you'd give them just a one time bonus, rather than raising their compensation. That'd be one thing to think about. DAVID: Obviously if you've been doing the opposite for a long time that's going to raise a few eyebrows, but it also might just be prudent thinking, and say, "Hey listen. You've kind of maxed out within the salary range that we set for your role. But you've been a fantastic employee. I don't want to build a whole lot of fixed, higher money going to salaries, but I do think you deserve something. So here it is." I think that might be the first thing you probably think about. BLAIR: I think that's a great way to phrase it. Because as you were describing it I was thinking, well how do you communicate this? So you communicate it by saying, "I want to acknowledge your good work." I guess this is my question. Would you acknowledge nervousness about the market? Because of the market et cetera, I don't want to build in higher, fixed salaries. Or would you always come back to, you've kind of maxed out in the salary band. Is it appropriate to communicate to your people, I'm doing this move because I'm concerned about the larger economic conditions? DAVID: Not unless not mentioning it would strike them as odd. So if they are feeling the same thing, because of what they're seeing in the news, and what you're talking about. And if you don't acknowledge that potential for something right around the corner then I think you're going to look kind of stupid. But if saying that feels more like an excuse to them, then I wouldn't say it. So just sort of acknowledge what is widely viewed in the marketplace. I think that's how I would view it. BLAIR: So preparation point number one is to consider bonusing people rather than building salary raises into fixed compensation. What else should people do to prepare? DAVID: I'm really just working down the income statement thinking about where most of the money goes. Right? And most of the money goes to people. Where does it go next? Well it used, and this is kind of changing a little bit, because of how expensive benefits are for people. But where it goes next is facilities. DAVID: So this is not the time to sign a 15 year lease. Right? It might be as long as you have some outs. And those outs are the ability to sublease to somebody else, or the ability to give them six or twelve months notice at any point in the lease, and walk away from it at that point. Or maybe if you're providing a personal guarantee for the entire term of the lease, that personal guarantee is capped at some certain amount. DAVID: So when you think about how you might need to adjust the size of your firm, other than people, facility is the next thing to think about. So just really careful about some of those long term decisions that you're making. BLAIR: Okay. That makes total sense. What else? DAVID: This is one I want to talk about together. And it's just this notion that lead generation, if done well, is this massive fly wheel. Where I grew up we had to supply our own electricity, and there's this diesel generator. I remember how slow that thing would start. You'd have to crank it over by hand and it would go ... little faster, faster. And then once you turned it off it would take forever to slow up. You could lose a hand if you put your hand in there too quickly. That to me is what lead generation is like. It takes so long to spin up. DAVID: So if you don't have your own lead generation plan well in place, before some sort of downturn hits, then you are screwed, my friend. Because it just takes so long. People are always asking me, after we fix positioning and lead generation at a firm, and you're doing the same kind of work as I am, well what results should I expect? How long should this take? And the answer isn't the same for everybody. But frequently it sounds something like this. "Well, if you do everything right, you should expect to land the first right fit client in about six months. And then about every three months you're going to land another one." And they look back at you thinking, that is not what I expected to here. DAVID: So you've got this downturn that hits and then you decide to get your act together. Sorry friends, it's too late. You know. What do you think about how long this kind of stuff takes to spin up? BLAIR: Well, and both of these issues, positioning, and lead gen in particular, they also affect how you see the new business position. So if you don't have the flywheel, the lead generation flywheel moving already, by creating content, building a reputation, et cetera, putting stuff out there that positions you and drives inbound inquiries. If that's not happening and then you hit an economic downturn ... and let's say you've got the new business seat is empty, and you decide oh we need new business, we have to fill it. You're going to look at the new business seat as you want to feel it with somebody who does lead generation the old fashioned way. The outreach, the cold outreach way. BLAIR: And when times are good and your lead generation flywheel, to continue the metaphor, is turning with little effort, then most small to midsize independent firms, probably don't need a business development person who is its salesperson. They need somebody who is actually good at navigating a sale to a close. BLAIR: Just very quickly, if you need your new business person to generate leads for you, rather than navigate the leads that marketing is generating for you, than you want somebody who has got a very high competitive drive. Who's rejection proof. Who goes, goes, goes. Who talks people into things. When leads are coming from marketing then you tend to think of a salesperson as somebody who is a little bit more patient and consultative, who's good at navigating. Is a little bit more discerning, so they have a lower competitive drive. And they're good at navigating opportunities through to a close. And in a lot of firms that can be the principal or another senior person. BLAIR: If your lead generation flywheel is turning you don't need that kind of old school typical new business person, who's out there smiling and dialing. DAVID: Right. BLAIR: But as soon as the downturn hurts and you realize that you haven't done the hard work on the lead generation flywheel issue, then you're going to panic, and you're going to go looking for a salesperson, lead generator, who's going to smile and dial and try to talk people into things. DAVID: I always picture those people driving a Taurus for some reason. BLAIR: Why? DAVID: I don't know. They drive 300 mile max trip and it's usually a dark colored Taurus, and they're wearing a polyester suit. Maybe I'm a little prejudiced about those sales people. BLAIR: Yeah. Maybe you are. DAVID: Yeah. Maybe. BLAIR: Okay. So we're talking about preparing for a downturn. You've talked about trying to keep your fixed comp lower by maybe bonusing people, rather than raises. You've talked about being careful about signing long term leases. You've talked about do your positioning and lead generation planning and work in advance, so that the flywheel is still spinning even in a down economic period. What else? Anything else on the preparation list? DAVID: Last thing maybe would be just to pay down as much as possible, the debt that you've already incurred from either ignoring operational issues that you should have solved in other ways, or maybe from the last downturn, or whatever. Get that off the books. Because when you are looking at reducing your monthly outlay there are some things that you simply can't touch. One of those is the debt. So if you have debt, still on the books, in a downturn, you have to cut the people side even deeper than you would have wanted to. You can't cut the facility. You can't cut the debt. So you have to cut the people side deeper. DAVID: So you really want to focus there, and in particular you want to focus on any debt that's personally guaranteed. Which for any smaller firm listening, almost all of it is. Even the credit cards. That would be like a term loan from a bank or a line of credit. Sometimes in the bigger firms, it's not. If there's a distinction there and some of the debt is personally guaranteed, and some isn't, then focus on the part that's personally guaranteed. So that if there's a really big disaster and we have to walk away from the firm you won't be as harmed personally outside of the corporation, that is the business. BLAIR: Yeah. This in a previous episode we talked about the idea of steady pressure and a pulse of something hitting. So the steady pressure in this case might be debt. You're carrying an unnecessarily high debt load, and then the pulse is rapid economic downturn. You've talked before about how ... I don't know if you abhor debt, but you can correct me if that's wrong. I think you've got a great line about how debt covers up some other issues. Right? It hides things. Is that right? DAVID: Right. Right. Debt is okay in some cases. I personally hate it for anything except for appreciating assets. But where I particularly hate it is where it's just covering up sins that need to be solved in other ways. Whatever the reason for the debt that's on the books, get rid of it as much as you can before a downturn. Then of course if the downturn does hit you could borrow again. I don't think you should. You could borrow again. But mainly it's about giving yourself the flexibility of not cutting more people than you would have otherwise done. BLAIR: Yeah. If you're carrying a lot of debt in good economic downturns, the likelihood of you surviving an economic downturn is not good. BLAIR: So let's move from how to prepare to how to react. So let's say, God forbid, the market keeps dropping. Other things happen. And we get something close to what happened in 2008, and a big part of the economy kind of takes a big hit. Or freezes outright for a little while. I think you're a big proponent of having a plan. Right? Essentially having a plan, in writing, that you enact at the appropriate time. Is that fair? DAVID: Yeah. Because it's very emotional when it hits. So whether it affected the world around you, and you weren't being singled out, or whether it was just you losing a big client. Whenever that happens it tends to freeze you. It's emotional. You don't know exactly what to do and the best way to prepare for that, I found, is for you as a management team to get together before it happens, and put two plans together. One is the adjustment plan. One is the survival plan. And you put it in a folder. I mean, maybe it's not really a physical folder, where somebody could find it. Maybe it's just in a folder on your computer, or whatever. You just pull that plan out. It will still need to be modified a little bit. But it's a fantastic starting place. DAVID: The adjustment plan would say, "Okay. We probably need to get rid of this one administrative person. We're going to need to slim down and have two fewer account people. Whatever." Then the survival plan is much deeper than that. "We are going to sublease half of our facility. We are going to stop our cooperation with this other firm that we've been doing. We are going to put off this particular purchase. We are going to draw down our line of credit, up to this amount but not a penny beyond that. I am going to cut my salary." Whatever all of those things are. You just pull out the appropriate plan. The adjustment plan or the survival plan, and then you put it into place. DAVID: If you haven't done that then you're typically going to lose two or three weeks worth of very valuable time in reacting the way you probably should. BLAIR: Okay. So I'm imagining, it's a little bit of war planning or just scenario planning. You have these two folders. Here's what's going to happen when things go bad. But I also imagine that that subjective measure of when things go bad, changes as things are going bad. So you probably should have some objective measure that says, when this happens or when revenue or AGI per FTE, or when this client leaves. Or a client of a certain size leaves, or whatever. Is that what you're saying? And if so what would those objective measures be? DAVID: That isn't what I was saying but I really like adding that. Because otherwise, you just don't know when ... so if we were part of the military planning in the U.S., we might say, "Okay if North Korea launches this missile, this is what we're going to do." That would be very easy to measure. But if we say, "Okay how do we measure our relations with that country getting worse, and so on." DAVID: So one of the things that I've seen some firms do is that when they add generous benefits ... so they say, "Okay we're going to pay for everybody's parking now." That makes sense. A lot of firms say that. But what they don't do is they say, "We're going to pay for everybody's parking now, because now our fee billings per full time equivalent employee are above X. And by the way, if they drop below X again, then we will no longer be able to do that." So they layer the generosity, and they tie those individual layers to specific performance metrics. DAVID: The ones that they would particularly pay attention to would typically be the fee billings per full time equivalent employee. Or it could be net profit. That net profit frequently would need to be indexed so that if the principal pays themselves less money to help get through a downturn, we recognize that. And say, "The net profit lower would be a whole lot lower if I hadn't lowered my compensation." So, that's what I mean by indexing that. DAVID: But I like that. So we're going to go to this folder if we lose this client. Any client that represents more than 25% of our billings. Or we're just going to go to this folder if we have two quarters in a row with less than five percent net profit. Or something like that. That's how I would think about it. BLAIR: So I think our listeners need to go out and buy one orange folder and one red folder. DAVID: One red folder. Right. BLAIR: Okay. What else should we be thinking about in terms of our reaction plan? DAVID: You know when you work with a firm, and I work with a firm, and we're sitting there looking at their situation for the first time, it's really obvious to both of us that the roots of what they're struggling with came about many years ago, or many months ago. Then you stop and say, "How did that happen? What led to that?" And frequently it's when they began to chase cash instead of chasing profit. DAVID: So they had these people that were working for them. They didn't want to lay them off. So they said, "Okay I know this is not an ideal client but at least it's something for them to do. We're not going to make a lot of money, but we'll make more money than if we didn't take work for them." And that's fine if you want to do it. But what you don't want to do is lie to yourself here and say, "And then when things get better we'll convert them into the good client that we had hoped they would be at the first." That is simply not going to happen. It's very unlikely that that's going to happen. DAVID: What you want to do is not necessarily, you wouldn't be able to drop this edict on yourself and say we're just never going to chase cash. We're really going to chase profit only. That's probably unrealistic. But at least be honest with yourself and say, "We are going to take this client. We're not going to make much money. But at least it's going to cover our overhead. We know that as soon as we are able to we are going to replace them with a client that will deliver profit to us." So just being honest at the very beginning and recognizing when the switch in your head flips, and you chase cash instead of chasing profit. BLAIR: That's a really important point. And you wrote something years ago, and I quoted you again within the last two weeks on the subject. I think the article was titled, it wasn't the title it was the point of it. Most cashflow problems are profitability problems. DAVID: Right. BLAIR: And somebody said to me the other day, "Oh yeah, we're going to do X. It's just an issue of cashflow." And I probed deeper into that to try to determine whether it was a cashflow problem or a profitability problem. But the interesting idea there is some people know it's a profitability problem. We're just not getting validation from the market that what we do is actually worth something. And others are somewhat delusional about it. So they might know it and they might be spinning a story to you. Others might be spinning a story to themselves. BLAIR: So you're saying, be honest with yourself. First of all. About whether or not we're talking about cashflow or profitability. But in this specific situation, I really like how you said it, it's unrealistic to say never take something for the cash. Because there are times when you've got good people sitting there with nothing to do, and along comes a project that isn't profitable, and you think, 'yeah, what's the harm. It will keep them busy. Maybe they'll enjoy it. There's no profit in it for us but allows me to keep those resources around.' So you're saying that perfectly valid. Just be honest with yourself, and maybe your teammates or your leadership team about what you're doing. DAVID: Yeah. Exactly. And when you mask a problem and say it's cashflow, what you're really saying is this is a problem with my clients. If you said profit, that's really a problem with the way you're running the business. So it's easy to deflect some of the decisions you're making around that. DAVID: You know the other thing I would do too, working down this list, is just about, do you really want to continue this business? In the past it never seemed to be an option to just close the business because there was so much stigma attached to that. But I don't see that stigma in the marketplace anymore. I don't see the stigma of failure like I used to. In fact, I see more stigma associated with people who stick it out, and they really shouldn't. Instead the courageous decision is not to stick it out. The courageous decision is to just stop it. Right? DAVID: But you want to make that choice for yourself. Like every professional athlete, they want to chose when they stop. They don't want their contract to not get renewed, or get shuffled down to a minor league team or something. Just deciding, making a good decision, early on, and not just bleeding all of the money that you do have out to fix this thing that in the end never gets fixed. BLAIR: Now you work with about 50 firms a year. How many times a year are you advising your clients to shut their businesses down? DAVID: About, probably two a year. So four percent or so, of those firms. BLAIR: Yeah. Yeah. Okay. What else is on the list of how to react to a downturn? DAVID: Maybe you need to get rid of that partner. Maybe this is the right time to do it. The firm will never be cheaper if you need to pay them out. This is going to be the cheapest you'll ever get it. That would be one way to look at it. BLAIR: So I'm imagining a firm of two partners, and both partners are listening individually, and they're both thinking, 'Yeah.' DAVID: Yeah. BLAIR: I'm going to get rid of that other partner. DAVID: And they're trying not to flinch as they listen to betray what they just thought of. Yeah. BLAIR: Okay you're both in the car together. You're not making eye contact. This is getting really awkward. You better stop for coffee. Or switch to country music. DAVID: Surely it's not that bad. We don't have to go to country music. BLAIR: We can stop right now. We're done. This podcast will not get any better. DAVID: It probably won't. Why do you not get through a tough time, if you do have a partner? You would think that having a partner would make it easier to get through a good time. When in fact sometimes it's just that you're not on the same page. You're not pulling the oars in the same direction. I often think that, oh there's a great opportunity to adjust your partnership. Especially if this highlights how one of you is just not carrying your share of the weight. BLAIR: Insert awkward silence here. We just stirred up a whole hornets nest, didn't we? Anything else on your reaction list before we get to things that we don't dread about a downturn? DAVID: No, that's about it. Those are the big things. But if you get those you've covered almost all of it. BLAIR: Okay. So I'll just recap. So it happens, you've got to have two folders. One is like things are going bad and when things are really bad. You want to have objective measures where possible. You want to know who you're going to layoff because as you've pointed out, that's probably the easiest part of your overhead to deal with, is the personnel. Don't chase cash instead of profit. Unless you're honest with yourself about what it is that you're doing. Think about shutting it down if it's appropriate. If you're thinking of getting rid of your partner, now is a really good time to do it. Probably financially as well. Okay. BLAIR: So you and I have talked about this before, in private conversations. We have each talked about this from a stage, or written about it. But a downturn isn't all bad, is it? Why? Why isn't it bad? DAVID: No, and I'd want to hear what you have to say about this because you have a very strong evolutionary way of thinking about this. Right? BLAIR: Yeah. DAVID: You see animals killed where you live and you realize it's a part of life. Maybe firms dying now and then is a part of life. It just sounds so cruel when we say it, right, but thinning the herd is okay. If maybe you don't survive, maybe you didn't deserve ... did I just say that? Maybe you don't deserve to survive right? BLAIR: Yeah. DAVID: And if you do survive than tomorrow you're going to have fewer competitors. And it's kind of sad for them, but it's kind of a good time, too, right? Oh that just sounds so awful saying it. BLAIR: Well first let's put it in a larger context. Because I think for most of listeners here, let's just acknowledge, we're all very fortunate to be born when we're born and where we're born. And to be running businesses. And if our business fails what's the worst that's going to happen? If we've been successful entrepreneurs to a point, and our businesses fail, then we will regroup and we'll be fine. We will start another business, or we will go work for somebody else, and we will put those skills to bear. BLAIR: A small number of people, for whatever reason, whatever else they're dealing with in their lives, it's not going to be so easy. So let's just acknowledge that there's always some human suffering. But as we talked about in one of the podcasts a couple of episodes ago, the worst case scenario really, for most of us, isn't all that bad compared to most of the population on the planet. BLAIR: So with that greater context, the idea is that a downturn is like a disease running through an animal herd. It kind of kills the sick and the weak. And in some ways it's a horrible ... well it's a ruthless metaphor. It's not horrible. But in the end it makes the herd stronger. There have been times when I've heard you say, you know if you've opened a design firm in the last ten years, and you haven't made money, then you're an idiot. Because the economic times have been so good that all you had to do was- DAVID: Did I really say it like that? BLAIR: Yeah. Maybe on paraphrasing. But you've essentially said, times are so good that it's really hard not to make money. We have to make exceptions for the exceptional situations. Like when you're young, you're just starting out. You're highly leveraged debt wise. Taking all this risk when you're just starting out. I'm a big fan of those people. And other things, you care for a sick loved one, et cetera. There are all kinds of extenuating circumstances. But generally speaking there are some firms that continuing with the ruthlessness streak, that the world's just not going to miss. DAVID: Right. BLAIR: If they go out of business. Because the honest to God truth is they weren't creating value in ways that other firms, that may have been somewhat similar to theirs, were creating real value. So if you're not creating real value in the world, and an economic downturn hits and your firm gets wiped out, you can feel sorry. You can say, "Oh the odds were stacked against me." But statistically the odds are probably that your business isn't going to be missed. DAVID: Yeah. BLAIR: So what does that do to the profession? It makes it stronger. At least in theory it does, doesn't it? DAVID: It does. And even though it does sound callous I concur exactly with what you're saying. So if you are running a firm right now, and you know how well you're positioned, you've got this lead generation flywheel spinning. And you've got good people, and you don't have a lot of debt. What if next year is bad? In the world around you. What if the environment does take a turn for the worse? In some ways you ought to be rubbing your hands together, and saying, "Oh man. This is going to clear my head. I can't wait to make sharper decisions and to think more clearly about this. And to not tolerate some of the poorer performers that I have. And to use my time more wisely. It's okay." DAVID: So as we face some of the uncertainty that's coming up, I hope the people that get nervous are the ones who should get nervous. And they get off their asses and start fixing their lead generation problem, mainly. That's the big one. I know you've got some events coming up. I've got some events coming up. People need to take that sort of stuff seriously. Or if they just know what the answer is, then they just need to get off the couch and start doing things. Those are the people I want to hear this and just really implant this sense of excited, not urgency, but excited about the future. Excited about taking their firm a little bit more seriously. I think is a message we want for people. BLAIR: You wrote to me an economic downturn is like a breath of cold, fresh air, on a cold winter day, in the mountains. What the hell did you mean by that? DAVID: You just can't ignore it. You just climb out of the tent and ... oh my goodness. It opens up your lungs in a way that it doesn't. And you feel alive, like you're never going to feel alive in an apartment in a city somewhere. Right? BLAIR: Yeah. When I read that I thought some of us our wartime CEOs. When there isn't something wrong, when we're not under attack, by say a competitor or a larger economy, then we are not at our best. When you see threat on the horizon that's when, you know it's like that bracing cold air. It's like, all right. I recognize that in myself. I don't know if you see it in yourself. I recognize it in some of my clients. BLAIR: There's nothing like a little bit of threat to reinvigorate you about your business. And that's what I was when I read your line that an economic downturn is a breath of cold, fresh air, on a clod winter day, in the mountains. DAVID: Yeah. And I didn't mean that as a Hallmark card either. I meant it as a terrifying, sort of invigorating statement. BLAIR: Yeah. DAVID: This has been fun. BLAIR: It has been fun. So let's just leave our listeners with this. We hope an economic downturn is not in your immediate future, but if it is we'd like you to think about it, like a breath of cold, fresh air, on a cold winter day, in the mountains. Okay. Thank you David. DAVID: Thank you Blair.
Blair offers seven mindsets that any seller of expertise needs to master so that they can behave like the expert in the sales cycle. Links "The Jedi Mindset" by Blair Enns McClelland's Human Motivation Theory, also known as Three Needs Theory, Acquired Needs Theory, Motivational Needs Theory, and Learned Needs Theory Transcript DAVID C. BAKER: Good morning, Blair. You are in London. I'm in Nashville. BLAIR ENNS: Yeah, it's my afternoon, and it's your seven AM. DAVID: And don't tell me you've gotten a lot more done today already, because that's just a time change thing. Has nothing to do with productivity. Today we're going to talk about the seven masteries of the rainmaker, choke, choke. BLAIR: You're choking on the word rainmaker, are you? DAVID: Well, a little bit. I'm also, it's like seven. How come it's not six or eight? Seven sounds quite biblically, almost like we need to take an offering at the end of this or something. BLAIR: Let's do that. DAVID: I'm more choking on the idea of the rainmaker. Do you hear that term much anymore? I don't really hear it. We know what it means, though. BLAIR: No, but there was a time when you heard it often. In fact, if an agency were running an ad looking for a new business person, probably a health percentage of those ads would have the title rainmaker wanted. DAVID: Yeah. BLAIR: I've never liked the term rainmaker. It's a little bit funny that an agency principal would be looking for an individual who essentially has magical powers, the ability to make it rain. DAVID: Right. It's dry. The crops are going to die. All we can do is just rely on magic. So let's call on the rainmaker. We have no idea how he ... it was always a he back in those days, but we don't know how he or she does it, but this is our last resort. BLAIR: We have no positioning. We have no leads. We have no prospects. We have no formalized new business process. You absolutely need somebody who can make it rain, yeah. So I've kind of used that term tongue in cheek, but the idea of seven masteries, it really stems from the notion of mindset. Because you can master behaviors. You can master all kinds of things. And when I originally wrote about this a few years ago, I had come home to the idea that I was teaching people sales process and people were learning, so they were onboarding and understanding what it is that they knew to do in specific situations, but yet, they still couldn't bring themselves to do it. BLAIR: So I kind of went deep into the subject and realized well, the things that I'm asking them to do, because my approach, the Win Without Pitching approach to selling to new businesses is a little bit contrary to the conventional way it's done in the creative profession. So the things that I was asking them to do were contrary to their overall general pattern of behavior. And then you ask yourself, well, what sets somebody's general pattern of behavior, and the answer is it's really the thoughts in their head, the mindset. BLAIR: So I kind of arrived at this model, this idea of the seven masteries of the rainmaker. These are the seven things that are concepts that an individual needs to master in order to put themselves in the mindset, the mindset of the expert. I sometimes refer to it as the Jedi mindset, so they master those concepts. So they're in the proper mindset. Then they can begin to behave, generally speaking, across the pattern of general behavior, they can begin to behave like the expert, and then they can start to take onboard these very specific things that we teach client does x, you do y. BLAIR: If you learn those specific points of sales process, what to do in the sale, in certain situations, but you're not already operating or behaving like the expert, then they're not going to work. So this whole idea was about getting to somebody's mindset. DAVID: Okay, so we're going to go through the seven, but before we do that, let's assume that I want to embrace this way of thinking. What specifically, almost mechanically, are you suggesting I'm going to do with these seven things? Do I just write them down, and I chant them to myself? No, you're not talking about that. It's more I analyze my behavior against this list. What am I going to do with this after we get through going through the seven? BLAIR: As I walk you through the seven, you'll think about where you are on that spectrum, and in the first mastery, just ask yourself, hey, are you mastering this now, or do you have some homework to do? And then I am going to get you to chant something funnily enough. DAVID: Good luck with that. BLAIR: After we get through four of the ... I think I said to you, this is either going to be really fun, or it's going to be a complete disaster. DAVID: Right, yeah. BLAIR: So we'll just see how it goes. As I explain the mastery, you just ask yourself, well, is this something I have mastered, or do I have some homework to do? And then once we get through four, the first four, which I consider to be the foundational masteries, then I'll actually talk about stringing them all together in a little saying or a mantra that you can say to yourself, and I don't mean to say that you're like Buddhist guru here or something. DAVID: As you laugh and talk about that, right. BLAIR: We're going to get you to say it out loud and then you'll see that when you do this properly, this becomes the conversation that you're having yourself with, and it sets you up to go into a situation where you're behaving properly. And even if you don't remember the specific things I tell you that you should be doing in the situation, it won't really matter, because you'll be thinking the right things. Therefore, your tendency will be to behave appropriately. You will behave like the expert. And then you can forget all of the nuance, and you'll still probably do pretty good. DAVID: Okay. All right. So let's dive in then. The first one is focus, right? So talk about that. BLAIR: Yeah, so mastering focus, it begins with the subject of focus. When you go in and do a total business review with a firm, I don't know this for certain, but I would expect that one of the very first things that you look at is the firm's positioning. Once you do an assessment of where the firm is and how they need to improve, I suspect that's kind of the foundation of where you start, or one of them. It certainly is in my business. DAVID: Yeah. In fact, I'm doing one today, yesterday and today. And as I was driving to where I'm talking with you now, I was just thinking, you know, I love this work. There's so much science and art around positioning, and it sets the stage for everything, right? How can you have all these other conversations without that? And that's what you mean focus, power in the sell comes from deep expertise, which comes out of that focus. DAVID: So when somebody's listening to this first one, and they're thinking, okay, do I still have homework to do, that question is is my firm focused enough to give me power or leverage in that relationship. BLAIR: Yeah, are you focused, or are you the individual benefiting from a focused firm. And the benefit of focus is when the firm narrows its focus in terms of the types of problems it solves or the types of clients it works for, usually a combination of those two, when it narrows its focus, it allows the firm to build a deeper expertise. So if you're an agency principal, and you have a dedicated new business development person, just ask yourself, are you arming this person with the benefit of focus. So we're going to build a four statement mantra. BLAIR: And the first statement is I am the expert. I am the prize. And that comes from this notion, this idea that I see myself as the expert practitioner in the relationship and not a vendor. I have some power in the relationship because of the depth of my expertise. Therefore I have a sense of being in control, but this idea that I am the prize, I am the prize to be won. I and the firm, we are the prize to be won in the relationship. And it's not the client is the prize that I am trying to win. BLAIR: So again, that's a mindset thing. Do you see yourself as this deep expert and representing a firm that has deep expertise that is desirable to the client, and do you see yourself and the firm as the prize to be won in the relationship? DAVID: That is so powerful, even though the words are so simple. It's the opposite of being a supplicant. It's not an arrogance, though. It's more of a quiet confidence that I've seen this before, and I'm eager to help, but we should talk about whether this is a right fit. I don't have to have this. I keep thinking of all these statements that emerge from what you were just talking about on the focus side. Even though we're kind of skipping, we could unpack this notion for weeks. We could talk for weeks, just about what focus means. But that's how it all starts. I love the fact that ... obviously, it has to be on this list, but I love the fact that it's also the first one. DAVID: So I am the expert. I am the prize. So that's focus. Second would be purpose. So talk about what that means, because we're still talking about very foundational things. How does purpose relate to this as a second one? BLAIR: Yeah. So after you master focus, you build deep expertise. The second, master a sense of purpose. And by purpose, I mean kind of a higher mission or calling. So most well-positioned firms can express their positioning in some fairly standard, almost formulaic language, and I don't mean to denigrate the language by calling it formulaic. I think first, you actually have to express your positioning in a formulaic language before you get creative with the language. BLAIR: So most specialized firms can say we're experts at helping this type of client solve this type of problem, or this discipline for this market. And that's just the beginning. Once you have that nailed, you want to go off in search of a higher purpose. Now, what purpose does for you in the sale is it gives you moral authority. It gives you the moral authority because you're driven, not to sell something to the person sitting across the table from you, and you're driven, not to help them sell things to their client. By tapping into purpose, you're tapping into something that's bigger than you, and even bigger than your client. And that gives you some moral authority in the sale. BLAIR: I'll give you an example in my own business. So Win Without Pitching, I can express our positioning as sales training for creative professionals. So the discipline is sales training. Creative professionals is the market. But my mission based positioning is we are on a mission to change the way creative services are bought and sold the world over. So there are different reasons. It starts to get into this Simon Sinek, tapping into your why thing. But there are certain moments when I will say that statement to myself, or if I'm being introduced to give a speech, I'll hand that language to the person who's introducing me, and that helps me get through maybe a slightly anxious moment and tap into something bigger than what I'm trying to accomplish in the moment. BLAIR: And when you're thinking bigger, when you're thinking past the transaction that's in front of you, and you're thinking past even what your client's objective is, to something even bigger than that, that steals you, gives you this moral authority, it contributes to your confidence, and it allows you to kind of ... gives you more ... I don't want to go back to the power word, but more confidence to navigate through the situation, through the sale, acting like the expert. DAVID: Yeah, and what I'm going to say next, I don't want it to take us too much off track, but I couldn't help but thinking of something as you were talking through this. Part of what we're doing at the beginning of a transaction like this or a possible transaction, or relationship, I guess would be a better way to say it, is to gather some control in that relationship, set ourselves up for that, not, though, so that we can misuse the power, but to use it for the benefit of the client, and sometimes it looks like a mistake. It looks like a power trip. It doesn't make sense sometimes from the outside. It's like if you saw somebody holding a child down, and it was through a glass window, and it looked cruel, and then the next thing you saw is that they were giving the child a shot, or they were dressing a wound or something like that. So we're doing something where we're exerting control to help the client, not to abuse the client. And we're reminding ourselves of that during this purpose discussion. DAVID: I love the example of getting up on stage, picture you've traveled a long time, you're tired, maybe something has happened that's shaking your confidence just a little bit. And you say this to yourself that I am on a mission to help. I guess that's the second phrase here that we're talking about. The first one, I am the expert, I am the prize. The second one, around purposes, I am on a mission to help. All of a sudden, it settles everything down. It reminds us why we're here and what we're trying to do. BLAIR: Yeah, well said. DAVID: So the third one is leadership. This is also a foundational statement. These first four are very foundational. So leadership is the third one. BLAIR: Yeah, let me just build where we are so far. So focus, I am the expert, I am the prize. Purpose, I am on a mission to help. And leadership, the line that goes with that is I can only do that if you let me lead. The idea of mastering leadership speaks to the notion that the sale is the sample of the engagement. So for you to do your best work in the engagement, you need to be able to lead. I use the word power, and I tend to overuse it, and as you point out, I don't mean power for the sake of power. I don't mean overusing it, but I mean, the client letting you assume the expert practitioner position and lead them through the engagement, rather than them relegating you to the vendor position and having them drag you through the engagement or dictate to you how the engagement is going to work. BLAIR: You're being hired to help solve a problem or capitalize on an opportunity. And for you to do your best work, you need to be allowed to lead in the engagement. Now, if you're not leading in the sale, then you won't be allowed to lead in the engagement, because the roles in the relationship are established well before the engagement begins. They're established in the sale. That's why you need to behave like the expert. You need to behave appropriately. BLAIR: So this third mastery of leadership is simply recognizing that for you to do your best work in the engagement, you need to be allowed to lead the client. Therefore, it's your job or a requirement that you assume the leadership position in the sale before you're hired. Again, I refer to the battle for leadership or power or control as the polite battle for control. And it should never feel to the client like you're dominating them or lording anything over them. They should feel the way it feels to you when you're hiring an expert practitioner yourself. They're calm, they're collected. They're clearly in control of where things are going or what the appropriate next steps should be. BLAIR: But they're also quite consultative with you, and they make you feel like you have input and you're not being dragged along. So that's the third mastery is leadership. DAVID: I can't help but think about the notion of process as well, because many clients of the folks that are listening to this podcast, those clients are sometimes going to question the process you want to take them through, and it's pretty important to not only have a reason for the process, but to also stick to your process as the expert. Now, if it's not a good process, you don't need to stick to it. I guess that was obvious. BLAIR: It's funny. I was thinking that, too. I'm sure you've seen this, too. There are a lot of agencies out there that kind of manufacture this, I'll call it process, the Canadian version. They manufacture it, and they lead their clients through it, and I come along, or you as a consultant come along and look in and go oh, it feels a little bit hollow and empty, and it's needlessly long, and it's not as fruitful as the client might think. So I think we can laugh about it, but there's actually some fairly hollow processes out there. DAVID: Right. But assuming that it's a good process and it really is a core part of how you're going to lead the client, then this begins to be a part of how you conduct this conversation. It's like you've hired me as an expert. The way I've done this in the past many, many times is to follow this process. I don't mean the hollow process. I mean the good process. It's allowed me to find the truth more reliably and more quickly. And that's a part of leadership. Leadership is not just the advice I'm giving a client. Leadership is also the process that we go through together to arrive at that advice. That's more the point. So focus, purpose, leadership. And the fourth one is detachment. DAVID: Let me go through and repeat these phrases again. So on focus, we have I am the expert, I am the prize. On purpose, I am on a mission to help. On leadership, I can only do that if you help me lead. And then third is detachment so walk us through that. BLAIR: Yeah. Fourth is detachment, and the line that goes with it is all will not follow, and that's okay. There's really two things you want to master about detachment. First of all, you want to detach from the outcome. So we're talking about the mindset you get into right before you go into the sales interaction. And you layer in all these masteries, focus, purpose, leadership, and this idea of leadership, I'm going into the exchange, and one of the things I'm looking for is I'm looking to take the lead, and I'm looking to see if you will let me take the lead. Do you recognize me as an expert, and are you willing to let me lead in the engagement? If you are, you'll let me lead at least a little bit in the sale. And the fourth mastery here, detachment is letting go of the fact of well, if they don't, that's okay. BLAIR: Your business is bigger than any single one interaction or any single one opportunity. You are this focused expert. The idea is if this person or this client or account doesn't come with you, if they don't let you lead, if they don't hire you, et cetera, that's okay. So you detach from the outcome. That's number one. You focus on the mindset and the behavior, and you detach from the outcome. So again, if you imagine when you hire or work with other professionals in your life, if you end up saying to a lawyer or accountant or solicitor or whoever the most vaunted expert is in your life, if you decide kind of not to go with them, they're not pleading for you to please, please, please give me your business. Because they're this recognized expert who have, you imagine that they have all kinds of opportunities available to them beyond you. BLAIR: And that's essentially what you should be thinking to yourself and then communicating to your client, and just let go of the outcome. So that's the first point on detachment is just generally focus on the mindset, focus on the pattern of behavior, and let go of the outcome. Don't be tied to the fact that this person absolutely must buy from you. BLAIR: There's a lot rolled up in this idea. The idea of not over investing in the sale is tied to it. It's easier to detach when you haven't over invested in the sale. But the second part of detachment is each of us personally tends to have something, and it's usually one recurring thing that we want from the other person in the sale. BLAIR: And I'll go back to this model of motivation known as McClelland's needs theory of motivation or the three needs theory that says people are motivated primarily by one of three different things. It's the need to win versus others, the need to orchestrate others, and the need to connect with others. So if you're a high competitive drive, and you have a high need to win, then you really need to detach from, before you walk through the door, just let go of the need to win this opportunity. If you have high power needs, you have the need for authority and respect, that's probably a good thing, because you and I and have been talking about that. You want to occupy the expert practitioner position, but some people can be in danger of having too high a need for authority and respect. BLAIR: And that's me. So I need to let go of the need to be the absolute authority on something, and other people have high affiliation needs. What they're concerned about in any social interaction, even in a commercial one like this is the need to be liked by others, the need to connect with and be liked by others. So in that situation, they would be telling themselves something like all right, this person doesn't need a friend. They need an expert practitioner. So I will detach from my need to have this deep, personal connection with somebody. There's some more nuance there. You don't want to detach from that completely. But you do want to recognize essentially what a big motivator is and recognize that you tend to go to this too often, and in the situation you want to let go of it. BLAIR: So the idea is that all will not follow speaks to this notion that you don't need to close every deal, and then there's this secondary detachment of what is it that you personally need. Identify it and let go of it. DAVID: Because we should not need constant affirmation that we are an expert in the relationship. We should enter that potential relationship. Every once in a while, it's on a rocky ground, but believing generally that we are the expert, and there's a lot of evidence for that and that many, many clients over many years have paid us a lot. And then after the engagement, we've heard that it made a difference for them, whatever business our listeners are in. DAVID: I love talking about this notion about how much we care or what we care about. I have this theory that has zero scientific underpinnings, just to make that clear. BLAIR: Those are the best theories. Go on. DAVID: All of a sudden, you're interested now. The idea is that we have 200. Now the number might go up or down, obviously, but we have about 200 instances in our souls where we can care a lot more than the client can. And every time we deeply care more than the client does about something, a little part of us dies. And then we have 199 left. So you want to use those very carefully. They're like little tokens that are not going to be replaced. Caring about the wrong things, it just kind of kills you slowly, right? BLAIR: Yeah, you've punched all the holes in your care card. You're out. DAVID: Exactly. Where's my free card? BLAIR: Clearly, you've punched yours years ago. DAVID: I don't even know what a care card looks like anymore. Okay. So what's this mantra that you're going to try and get me ... you say it, and I'll repeat it. And this rolls up the first four. BLAIR: I am the expert. I am the prize. I am on a mission to help. I can only do that if you let me lead. All will not follow, and that's okay. You try it. DAVID: Okay. If I say that is, will you let me lead the next six episodes of the podcast? BLAIR: Yes. DAVID: Okay. BLAIR: You can have whatever you want if you say this. DAVID: Okay. I don't believe that. But I am the expert. I am the prize. I am on a mission to help. I can only do that if you help me lead. BLAIR: If you let me lead. DAVID: If you let me lead. All will not follow, and that's okay. So obviously, I messed it up. I have to practice this some more. Okay. So those are the first four, and you've wrapped them up. The next three masteries are different, though. They're not foundational. They're more specific situation masteries. And we sometimes get these in as well, today. BLAIR: Yeah. DAVID: So what's the first one? Silence. BLAIR: You're looking at the list. You tell me. DAVID: Ah, you were pulling that on me. You just did that to me, and I fell right into it. BLAIR: Yeah. DAVID: Okay, I'm a sucker. BLAIR: The fifth mastery is silence, and I think we've talked about this a little bit before. I think mastering silence is the single biggest little thing that you can do, if that makes sense, and it does make sense, the single biggest little thing you that you can do to become a better sales person. Nature abhors a vacuum, and when a buyer and seller are talking, any time there's a pause in that conversation, there's an impetus on both parts to fill it, and if you're the seller, you tend to fill a pause in a sales conversation with some sort of concession. You don't even have to master silence. You just have to learn to be more comfortable in silence than the other party. Because if you can be more comfortable, then the client is likely to fill the void with a concession or they will give you really valuable information. BLAIR: So we always teach that any time you raise an objection or place kind of a hurdle in front of the client and ask the client to jump over that hurdle, or you ask for a behavioral concession, after the statement or the ask, you just be quiet. So if you put forward your proposal, and it's got a price on it, and you're putting it forward orally, and you say and the price is $200,000, then you just stop and say nothing. And it's hard to do this initially, but it's actually very easy to get good at this. And if you can just kind of not be the person to break the silence, and you let the client fill the void, then you'll get all kinds of information on where the client stands, on how much power you have in the relationship. And you might even get some concessions, whereas sales people like to fill a void in that moment. The price is $200,000, silence, and then the sales person can't stand it, and says, oh but we could do it for less. DAVID: Yeah, and the panic rises so quickly. It's like yeah, maybe they just need to pull out Fortnite and start playing it or check their email. You're not suggesting that. BLAIR: I would say count to 10 under your breath. DAVID: Yeah, okay. All right, so silence is the first of the three after the foundational ones, and the second one is directness, say what you're thinking. We've talked a lot about this one, but it fits in the system, right? So just remind people, if they haven't heard that episode. BLAIR: I was just working with a firm earlier this week, and we were just doing some role play scenarios where I was on the subject of saying what you're thinking. So I was just throwing out some scenarios. And I was saying okay, here's a scenario, you're talking to a prospective client. You're thinking oh, they're probably too small. They probably can't afford you. What do you say? And I was really surprised at how people ... and I've been doing this for years. I continue to be surprised at how people struggle with finding the language to actually politely say what you're thinking, because we are not conditioned to do that in this business. In the creative and marketing firm business, we're taught that we're in the service business. The customer's always right. We're taught to nod and smile yes, even when we think the answer is no. BLAIR: But an expert would never do that. If you've got an opinion that's contrary to one that's been stated by the client, including an opinion on what the next step should be in the path to determining whether or not you're going to work together, you should say it. So be direct. Put it on the table. So I say there's a slight pause. As soon as you get the thought, the contrary thought, you have an obligation to state the thought, and you pause long enough so that you can think of a way to say it with kindness. So we talked about before, the subject goes by the name kind ruthlessness. So you're kind in your language, but you're ruthless in your standards and your behavior. By that I mean, you're being direct, you're saying what you're thinking. If you think the client's assessment of their problem or their opportunity is wrong, then you should say so. BLAIR: If you think there are flaws in the way they're proposing to hire a firm like yours, then you should say so. If you think the client is making a mistake in the engagement, then you should say so. Any expert worth their weight would confront politely with kindness the client with the mistake they think the client is making. And we, almost universally ... it's not universal, but it's almost universal. We don't do that. We need to learn to get better at doing that. So you master this idea of directness of saying what you're thinking. DAVID: I'm picturing somebody taking the oath of office or being sworn in before they give testimony. There needs to be something like that for experts, a commissioning service for experts where they raise their hand and say, I pledge to do it politely but to be honest and to state the truth with the clients who deserve that from me. They deserve that leadership from me. This is very powerful. BLAIR: I love that idea, our equivalent of the Hippocratic oath. DAVID: Right. So silence, directness, and the last one is money. So master your own wonderful relationship with money. That's one of the things we got with another couple or some friends or whatever, and we can talk about sex. We can talk about all kinds of ... we can't talk about how they raise their kids, and we can't talk about money sometimes, and that carries over into how we conduct these early relationships and sales studies as well. We can't really talk about money for some reason. BLAIR: Yeah, and that's why it's the seven and the last mastery. I like the idea that if people were just to read it, you have to master money. Some people would be repulsed by it, the idea. And those are the people that I'm really speaking to here, because we're not mastering the accumulation of money or the spending of money. What I mean by mastering money is mastering our own relationship with money. I believe, and I think we've talked about this before, that most of us have a dysfunctional relationship with money. BLAIR: In my book, Pricing Creativity, the last chapter, I think it's titled the last obstacle is you, and I talk about the mental barriers ... we've done a podcast on this ... the mental barriers to profit. And that's what I'm talking about is not getting hung up on money, and all of the personal emotional things that we were taught or we learned around money, all of the baggage ... baggage isn't fair, because as you pointed out, in social situations, the rules around talking about money are actually quite different than they are in a business situation. You say you've got friends where you can talk about sex, you can talk about politics, you can talk about things. But you can't necessarily talk about money. There's only a small number of people in my kind of personal life, where I have an open relationship without the subject of money, where we've agreed that we're going to talk openly about money, and there's really nothing off limits. DAVID: Yeah. BLAIR: I'm really talking about mastering the subject of the hold that money has over you or the idea that the subject of money is somehow holding you back because you don't feel it's worth it. I got an email two days ago from a client, who said ... he forwarded an exchange that was happening in his firm. He said, oh you're going to love this. He said read down and start from the bottom. So this is a firm that's recently moved to value-based pricing. So they still scoped it based on hours. Somebody internally said, well, it should take this many hours. The client wasn't buying hours, but they sold it for way more hours than it took to deliver. And two people internally were saying this is unethical. We cannot do this. BLAIR: So the principal at the firm and I are kind of laughing back and forth about this, because if you think it's unethical to create extraordinary value quickly, then you have a dysfunctional relationship with money. DAVID: You also have some other issues that are coming around the corner, too. This is such a great topic. I'm not at the point where I'm going to start chanting this. But I do ... I really do like this. So the foundational four, focus, purpose, leadership, detachment, and then the three masteries that are more for specific situations which you might use in certain specific cases would be silence, directness, and money. Blair, this was fantastic. Loved our discussion today. BLAIR: Yeah, thanks. It wasn't nearly as weird as I thought it would be. DAVID: Thank you, Blair. BLAIR: Thanks, David.
Listen Here: iTunes | Overcast | PlayerFM Keep Up with the North Star Podcast Here My guest today is Devon Zuegel, a writer of code and writer of words who spends her time unlocking human potential through incentive design and tools for thought and cities. In this conversation, we jump from coordination problems to urban planning to travel to architecture. We compare cities like Singapore and San Francisco and talk about the power of urban density and architecture to make us happier and healthier. Then, we talk about writing, specifically the three tiers of common knowledge, how to find good ideas, and the concept that Devon calls playing chess with yourself. One thing sticks out from this podcast and other conversations with Devon. Above all else, Devon lives in obsessive pursuit of high leverage ways to spend her time and energy. In the past, that’s led her to computer science and in the future, I suspect it will lead her to cities and infrastructure. Why cities? Devon offers an excellent answer. Cities are big enough to have real importance in the world and small enough to be nimble and somewhat understandable and there are a lot of cities. You can actually hope to make some comparisons in a way that you can’t really do with countries. Please enjoy my conversation with Devon Zuegel. Links Bloom Algorithms To Live By: The Computer Science of Human Decisions Georgism Devon’s articles related to this episode: Advice on Writing Why Flaking Is So Widespread in San Francisco A Day In Singapore: Urban Identity 2:03 Devon on coordination problems and the problems they’ve caused, such as climate change and housing issues, and how clever solutions to these problems are the reason humans have progressed so much in the past hundreds of years 6:19 Human cognition and thought as it is augmented by media, cities and blockchains and the benefits of this augmentation 8:10 The most classic tool for thought and why it’s such a catalyst for healthy and productive cognition, long term and short term memory function and increased IQ 16:41 Devon’s writing process and why she defines it as playing chess with herself 17:45 How Devon has been able to get her writing to flow and the three categories of topics available to write about, common knowledge, obscure knowledge and the intersection in the middle 20:17 Devon’s theory of on why people in San Francisco are so flaky in comparison to sister cities like Chicago, Los Angeles and New York City 28:16 How Devon chooses what rabbit holes she wants to go down prior to writing an article and how to make most topics interesting by creating a model around the idea 32:25 What makes Singapore so interesting to Devon, in regards to history, culture, GDP growth, etc. and her major observations after visiting the country 47:20 The moment Devon became aware of the effect of architecture and how it can make employees less involved with their colleagues by not promoting micro-interactions 50:53 The five metrics that a house should be described with, that are never used, when being promoted on websites like Airbnb, Zillow, Craigslist, etc. 57:00 Devon chooses the three metrics that she’d pick when it comes to the city she lives in and the home she’s living in for maximum interaction, convenience and mental economy 1:03:16 Algorithms To Live By and why Devon sees it as the best self help book she’s ever read, despite it not being a self help book 1:05:37 Devon’s opinion on Georgism and how people talk about economics as a spectrum from capitalism to socialism or communism and the third category of economic goods that it doesn’t touch upon 1:07:30 Devon’s changing opinions and her epistemic status placed on each of her blog posts written with a strong opinion 1:10:03 Devon’s philosophy of travel and why she views it as scale free regardless of how many or little places you visit 1:11:51 Devon’s philosophy of productivity and how she writes down dozens of notes and uses long form emails to repurpose her ideas into publishable articles Subscribe to my “Monday Musings” newsletter to keep up with the podcast. Quotes “I am very interested in coordination problems. I think that they explain a lot of the problems that we see in the world, everything from climate change to nuclear disarming to issues in cities to making it so that people can actually live where they are the most productive to housing policy. I could go on and on. The solution to coordination problems is incentive design, and clever solutions that are some of the reason humans have been able to progress to the extent they have throughout the past few hundred years.” “The most classic tool for thought, and one that I think we tend to take for granted, is writing. Most people think of writing as a way to communicate ideas that they’ve had in their head to other people. Obviously, it does serve that purpose and people sell books for a reason. But, I think it goes way beyond that.” “In the last year, I have found that writing has gotten a lot easier for me. There’s probably a lot of reasons for this but I think the core is that I realized there are three categories of topics you can write about. There’s the stuff that everybody knows that is trivial to write about because it’s easy. On the other end, there’s stuff that nobody knows yet or nobody around you knows yet, so it takes a lot of time to figure it out and it takes a lot of research. Now, there’s this middle area between common knowledge and really obscure knowledge of stuff that you have a unique perspective on because of where you happen to be in life and you understand it so intuitively that you can just talk, think and write about it fluidly. But, a lot of people don’t know it yet. That’s the sweet spot.” “For me, it’s very important that I can walk places. Walking is a way to interact with your community in these small ways, every single day. The way people get comfortable in a place and in a social group is not through one really intense interaction, but through a bunch of smaller ones where you see things from different angles. You experience, what does my neighborhood looks like on a sunny day, on a cloudy day, or when I’m tired. These tiny, trivial things help you understand, much better, how things function. You get to know the vibe so much better and you meet people you wouldn’t meet if you were in an Uber.” “Algorithms To Live By is the best self help book I’ve ever read and it’s not intended to be a self help book, it’s intended to be an algorithmic look at certain problems that people see day to day. But, it helps me frame certain problems that I personally run into in terms of the algorithmic complexity. I realized the stress that I was feeling about certain things I was worrying about, were actually totally rational.” Subscribe to my “Monday Musings” newsletter to keep up with the podcast. TRANSCRIPT DEVON: I am very interested in coordination problems. I think that they explain a lot of the problems that we see in the world. Everything from climate change to nuclear disarmament to issues in cities and making it so that people can actually live in where they're the most productive, in housing policy. Well, I could go on and on and on with the list. So the solution to cooperation problems is incentive design. And I think clever solutions to incentive design are some of the reasons why humans have been able to progress to the extent that they have throughout the last few hundred years. So a primary example is contract law, it makes it possible for people to trust one another. Other examples are the development of risk and the concept of commodifying the risk. DAVID: I was having a conversation yesterday in another podcast and the guest was saying that in 1471, what happened was people were able to pool maritime risk. And what happened was it let big expansive ship voyages happen because you could pull risks together. And so if you invested in a ship and say that ship broke down, then you wouldn't lose all your money. And by pooling risk and by coming up with new financing and coordination solutions, you could do things that weren't previously possible. I thought that was really interesting. DEVON: Totally. That's a great example. Actually. Old maritime risk looks a lot like venture capital today wherein venture a lot of things fail. A lot of things fail spectacularly. But if you can spread out that risk across a whole pool of investments, it only takes a few to like really, carry the whole fund. In the case of maritime investments, a lot of the ships broke down, they had problems. But if one ship came back with a whole load of goods that could repay all of the rest of the costs. However, most, most investors back then couldn't take that risk because most of them would have failed. They might've lost all their money before they hit that one big one. And so by the development of that maritime risk, they were able to get past that sort of short-term problem and to get into the run longer returns. I think that's a really good metaphor for all sorts of problems that we run into wherein the short term it's rational to do a thing that is not as interesting, that it's not as lucrative, but it's also not as risky. But if we're able to coordinate as a society, as a company or whatever level you want to talk about. So one more concrete example to bring it down from like highfalutin, venture capital and maritime risk, you could just look at cooperation problems as simple as when you're dating someone for the first time, there's that standard wait three days until you text them back after you met them because you want to come off as cool. You don't want to come off as desperate, right? But if you really like each other, like all this is going to signal is that you don't like them very much. And that may be rational for you because you don't want to come off as desperate. But if you're both doing that, you end up with an outcome where it seems like you don't like each other very much and it takes a really long time to actually realize that you do. Ideally, you would have some neutral trustable third party who could be a person A, person B, out Alice and Bob like you both like each other. You told me that you liked each other, just go for it. You know, have fun. And I think a lot of healthy relationships that I've seen have actually started in this way because of some small quirk at the very beginning. It can be super useful, but a lot of the pain that I see my friends going through when they date is literally just the result of playing games because rationally, you're supposed to. It's basically a prisoner's dilemma. And so if you can have someone who forces you into the correct quadrant where everyone is better off, that's much better. DAVID: So then let's jump into sort of human cognition and human thought. Maybe begin with media. What interests you? Sort of when I think of where this conversation is going to go today. So much of it is about augmentation, right? Like cities augmenting the potential for humans interact and making that so much easier. And blockchain augmenting human coordination is making that easier. And then here with thought and having tools, augmenting human thoughts and letting us go places that we probably wouldn't be able to go if we were stuck in the mountains on our own. DEVON: I think the underlying reason I'm interested in incentive design is because it allows us to unlock human potential and allows people to do much cooler stuff that makes them happier, healthier, makes life more worth living. I see ways to augment our cognition as serving that same purpose though from a different angle. The umbrella term that people sometimes give this is tools for thoughts and we have basically the same brains that we and our ancestors had thousands of years ago, but we're able to do so much more. Part of that is because we've developed incentive design. The other reason is because we've developed tools for giving our cognition more leverage. And I use the term leverage actually very specifically. You can only get so strong no matter how much you lift. How once you go to the gym, like you're still not going to be an order of magnitude stronger. You're definitely not going to be two orders of magnitude stronger. However, if you design an engine, if you just even add a lever that gives you that leverage, you can do so much more with your muscles. I see that that translates directly to your brain. The most classic tool for thought and one that I think we tend to take for granted is writing. Most people think of writing as a way to just communicate ideas that they've had in their head to other people. It obviously does serve that purpose. People sell books for a reason, but I think it goes way beyond that. So one thing that writing does for you is it expands your working and your long-term memory. With the long-term memory, it's pretty obvious. You take notes, maybe you don't remember all the details, but you can look them up later. DAVID: To your point, even today I was writing something this morning and I wrote something that I wrote about a year ago and I have no recollection of writing it and I read it and I was like, wow, that's actually pretty smart and it really helped me, but I think to your point, there's a permanent element of writing and being able to sort of work through sentences and craft them, makes it so that you can achieve thoughts because of the repetition and the sort of tweaking and editing of writing that you can't do if you're just speaking like we are right now. DEVON: 100 percent. And I've also had that experience more times than I can count of like coming across something I've written and being like, oh, this is interesting, I wrote that. That came out of my brain. And as long as you have enough of a pointer to that idea that you can find it when it's necessary, or it gets surfaced by accident because you happen to open up an old notebook. That's extremely powerful. It makes you much better at remembering. I think even more importantly, a writing helps you with your short term memory, your working memory. There have been a lot of studies showing that a working memory is one of the highest things correlated with IQ and the ability to solve problems. And I think the reason for this is because if you have good working memory, you can hold a lot of state in your head and you can sort of fiddle with that state. You can hold contradictory but potentially correct ideas and outcomes in your head while you work through the problem. And then they collapse into one at the end. DAVID: Describe state real quick for someone who doesn't have the computer vocabulary that you do. DEVON: So state is what is the current status of the world right now. Let's say you're working through a personal problem and with your family or something, and you want to go through step by step and sort of understand the implications of what different people have done. You're getting the story from different friends, like maybe you're helping reconcile like your aunt and your uncle or something like that, having marital problems and you want to understand how they got to that point and how, given where they are right now at that point, like how different changes result in better or worse outcomes. Understanding the current state of the situation and then like fiddling with it and being able to hold all of those sort of partial computations in your head are really important to be able to compare them and to be able to move forward and find a solution. DAVID: So you're saying that writing and sort of computers at large now help us hold more state so then we can move on to higher-order tasks that perhaps aren't memory, that our brains are really well suited for. DEVON: Exactly. And they're more interesting. And working memory can kind of provide abstractions. I think the best metaphor for working memory or external working memory is like scratch paper, that there's a reason why math teachers always tell you, feel free to use as much scratch paper as you want. That's not just because they hate trees and they want to waste all paper. It's because being able to externalize that process is really, really helpful. Offload is the perfect word. DAVID: So back to writing. DEVON: I think it actually goes even much further than memory. With writing, it is fundamentally the process of externalizing an idea which allows you to play with it in ways that I don't think are so easy when it's in your head. I'm certainly not capable of it. Writing things down can reduce the amount of ego that you have as you fiddled with an idea. Maybe I'm just crazy, but when I wrote them down and almost pretend like the person who wrote that wasn't me, it was like, that's past Devon or someone else entirely. I can detach myself from it much more in a way where, when I am a thinking through something just in my head and lying in bed wondering. I'm not going to be as rigorous about it. Now that's not strictly worse. There are other things like everyone has great thoughts in the shower for instance. It's very common. But it doesn't serve all purposes, especially if you're trying to vet and find the nooks and crannies of an idea. When you write it down, when an idea has inconsistencies or gaping holes, they are clear and right in the face when it's written down in a way that is just so easy to gloss over when they're in your head. DAVID: And also when you're speaking, you can sort of gloss over some of the inconsistencies with emotion, right? If I speak really deeper and confident with what I'm saying, actually there's an element of trust there. It was really funny. So we had a meetup in Queens a couple of weeks ago and my buddy goes on Snapchat stories and he goes really confidently, coming to the meetup and he goes "Did you know that the reason it's called Queens is because Queen Elizabeth came to New York in 1754?" and you're sitting there being like "Man, you know, why are you being so smart here?" And then he finishes the thing and he goes "Well, I just made that up, but you believe me because I said it so confidently." So what writing does is it strips out the emotion out of a form of communication and it allows logic to take over emotion. DEVON: Right. And it allows you, it gives you something like almost physical to move around and change. I'm a really big believer that constraints are actually a good thing in your thinking because if you're completely working in a vacuum, you have nothing to push off of. You have no feedback cycles. Whereas if you can just get a draft onto the page, you can fiddle around with it so much more. And I find that writing that draft in the first place, that's usually the hardest part, but once I have something to work off of, it gets much, much easier. It helps you find implications that you didn't realize there were, which again, I don't fully understand like the cognitive science behind why this is. But by putting it on the page, you start seeing these almost trails in your head of like, given this, given I said this, what are the implications there? And you can actually follow those trails and like come back to them after you've written them down and realize, oh, this thing does have an implication I hadn't considered. One of my favorite things to do when I'm writing is just looking up synonyms for words. And the reason is not just to make myself sound smarter. Though, that's always a plus. But much more importantly is that by looking up synonyms, you can think about which words don't make sense here. Even though they are technically synonyms. And why they don't make sense and analyzing that is extremely useful. It's sort of a generator function for coming up with new ideas. Similarly, I think choosing the right word is also really important. Words come with such heavy connotation that picking the right one can be the difference between concepts really striking home and like feeling kind of flat. So I highly recommend people using sources when they write, all over the place. I actually use sources when I write code as well, for variable names and class names and things like that, because it helps you. Computer science and programming is basically the art of abstractions and abstractions is another way of saying names mostly. And coming up with really good names for things is a really critical piece of being able to write good software. So I think the source, I go to thesaurus.com probably 300 times a day. I have never actually counted, but it's a lot of times. I've always idea called playing chess with yourself. DAVID: Walk me through that. DEVON: So I think writing, especially the writing process, before you've published, as kind of like playing chess or yourself. There's that Pixar short, it's called like Geri’s Chest Game or something like that. And it zooms in on this guy sitting on a park bench playing chess and his partner isn't around. And you're like, oh, I guess maybe they went to the restroom, maybe they're coming back and then all of a sudden the camera zooms in and he's like on the other side, playing with the white pieces now. And then he flips back and forth and you realize he's just having a ton of fun and playing against himself. And he's really excited against himself. This is a hard thing to do inside of your own head, but it's actually a lot easier when you've externalized something because once you have that writing on the page, you can treat that as sort of another person almost. And play around with it in a way that is just much harder when you're by yourself. DAVID: Totally. And then the other thing is I think you have sort of an uncanny knack for generating unusual ideas and I don't say this to discredit you, but I think that you've built some systems to make that a hell of a lot easier. Walk me through different tiers of common knowledge. So I got an email last week from a guy who said, I love your writing, but the biggest thing preventing me from writing is that I always think that everybody else knows the things that I know and that's the biggest thing. Stopping. And I responded and I said, well, that's not necessarily the case, but I wasn't able to formulate something that I think that you've been able to grasp in terms of different ways of thinking about what is common knowledge? If you could describe that. And then how does that translate to writing and drafting an idea? DEVON: Yeah, that's a great question. So in the last year, I've found that writing has gotten a lot easier for me. There's probably a lot of reasons for this, but I think the core one is that I realized there's sort of three categories of topics that you can write about. There's the stuff that everyone knows that's like trivial to write about it because it's easy. The sky is blue. Okay, good. That's awesome. No one wants to read that. Very common knowledge. On the other end, there's stuff that no one knows yet or no one around you knows yet. And so it takes a really long time to figure it out, requires a lot of research. I can point to some examples of things I've written where I'm very proud of this writing that I've done, but it was a slog all the way through. Some of the stuff that I wrote about, the federal housing administration last year, just required poring through hundreds of documents from old FHA manuals and things that I don't know if people have looked at in a while and I found some novel stuff, but it also was a ton of work. Now there's this middle area between common knowledge and like really obscure knowledge of stuff that you have a unique perspective on because of where you happen to be in life and you understand it so intuitively that you can just talk and think about it fluidly. But actually a lot of people don't know it yet and I think that that is the sweet spot for generating a lot of streams. DAVID: How would you know when that's true? DEVON: That's a hard question. For a long time, I just thought that this the way I think is the way that everyone thinks. And so I was like, no one really wants to read about like my theory on flaking in San Francisco. Everyone in SF knows that already. DAVID: But what's your theory on flaking? DEVON: I haven't lived really in any other city, but my impression from talking with friends is that the rate of flaking is extremely high, with friends, with romantic partners, et cetera, relative to sort of sister cities like New York or Chicago or LA. I think part of the reason is that people in my social circles in San Francisco really understand opportunity cost well. There's a very casual culture here where it seems like an acceptable flake. And we also are like, even more so than other millennial types, are very technologically savvy. So if 10 minutes before your coffee date you're like, oh, sorry, I got caught up in something. Can we reschedule next week? It feels trivial because it's just a text. You're not going to literally stand them up because they just won't show up. But the problem with this is that it's another cooperation problem where we ended up in this equilibrium where it feels acceptable for everyone to flake all the time and just not show up to their commitments. But then like everyone's worse off because your scheduling is more complicated. You never really know. If things are going to happen when you think they're going to happen, you kind of don't want to be seen as like the pathetic one who doesn't cancel the plan. So you almost are incentivized to flake because if someone flakes on you enough times, you're like, well, I don't want to look like an idiot. I don't want to be taken advantage of here. So, next time we make plans I'm going to double book and see which one feels more interesting that day. And I think that leads to a real breakdown of trust and like happiness and satisfaction with relationships. Since I realized this, I've personally made a stance where I'm like, I will not flake on something unless I have an exceptionally good reason. And my friends I've noticed have also started to like follow up with me where I've put a stake in the ground. It helps that I wrote a blog post about it. I put a stake in the ground of like, I don't want this to be okay anymore because it's like making everyone's life worse. DAVID: What about San Francisco makes flaking uniquely common here? DEVON: I think there's a mentality of casualness where if you walk around the city, no one's ever dressed up. I mean, literally today I am wearing yoga pants and a tee shirt, and people want to look mostly clean cut, but they'll wear athletic gear almost all the time. I think that is indicative of a broader social casualness. Certain social norms are not as strong and in fact, the social norm is to not have strong social norms. And if you want to come off as like cool and casual. If someone is placed on you and you say something and you're like, hey dude, you flaked on me last time too. That's sort of like a point against you. You're seen as uptight or something. Maybe LA is also more similar to this, but I think like in New York, I feel like there's more of a seriousness in the way people interact where it's like your people get dressed up when they go out. Like when I go to New York, I always feel super underdressed. I think that carries over to a lot of parts of the culture. Where you don't break dates unless you have a good reason. Whereas I can look back on my calendar before I had all of these thoughts and honestly I was either breaking or having commitments broken on me like 50 to 70 percent of the time. And I don't think I'm unique in this because I've had conversations with a lot of people on my team. So I want to go back to writing, but I just want to summarize why I think that falls into the second category of common knowledge. So the first category is things that everybody knows like the sky is blue. The third category is things like the history of FHA housing, which probably requires a lot of research and nobody knows those things. But the second category is things that everyone sort of has a common framework for discussing like flaking. But because you are in a social circle that has a high opportunity cost in San Francisco, you have unique insight into that problem. And when we have a common knowledge, a common way of speaking about something and you have unique insight into that same sort of thing, that is when you should go pursue an idea and share it with the world. DEVON: Totally. I think that's a really good framing of it. I especially like the term common knowledge. Because I don't think anything I said in the post was surprising to anyone, but I think finally sitting down and putting the pieces together as to why all of this stuff comes together, I think is the difference. And just taking the time to sort of reflect on like various dynamics in your own life I think can be a really powerful generative tool. DAVID: I gotta ask, as you think about your writing, you think about your learning sort of your process for living, so to speak. It's cool because I like people like this. Your process for living is also a process for sharing, right? It's almost like a co-dynamic between the two where you live, you share, you share, you live, and I think that they, they sort of co-evolve and develop. Who were the people who have really inspired you to become like that and who were the mentors, digital or physical that have really inspired you? DEVON: There have been a lot. And this actually ties really nicely into the framework of like common knowledge to obscure knowledge. I think I used to think that a writing had to be this big formal process where you sit down with an argument or a spectrum and you try to decide where on that spectrum of arguments you lie and then you dive deep into the literature and you study it, and then you pop out weeks later and you've like displayed to the world this thing, this masterpiece you've been working on. A lot of writing does follow that. A lot of great writing. And I don't think people should stop doing that by any means, but I think there's this other type of writing that is treat your ideas less as a final project product and more as a process. Someone who I think does this very well, I don't know him personally, is Ben Thompson at Stratechery. He writes about the same stuff day after day, but each time he writes about it, he turns it a little bit in his mind. He comes at it from a slightly different angle and over the course of years he has built this canon of like what aggregation theory and he has this whole vocabulary that he's built up and you can see when you go back to his earlier writing, the idea is not fully developed at all, but the writing itself was the thing that developed the ideas. And I think that that is a huge mindset shift that I've had where I used to think first you have the ideas and then you write them down, but actually, you should have some seed of an idea. But then when you start writing, that's what actually brings it out and like causes it to flourish and grow. Another person who's played a really big role in helping me realize the value of this is Tyler Cowen (my podcast episode with Tyler). His blog, Marginal Revolution is just like one of my favorite things on the internet. It's the most ridiculous set of things. It's the intersection of all stuff and he doesn't take it that seriously. DAVID: Right. And the juxtaposition of ideas that you find there puts your brain in crazy places because he'll share, NBA basketball, his recent trip to Ethiopia, and then markets and everything in some weird market that you've never heard of. And I think that really cool ideas and really cool ways of thinking come not necessarily when you discover a new idea, but when you juxtapose ideas that you're vaguely familiar with and then your brain just goes in weird places through that. DEVON: Yeah, by having this huge diversity of sources and ideas, it allows for a type of lateral thinking that I think is really missing in the world. And something I particularly love about Tyler's work is that he both does and doesn't take it seriously at all. So by does, I mean he does, he spends all of his time doing this and he cares about deeply. So he's serious in that sense, but he also treats it as this big game where he's just like, you know, I'm just having fun, I'm pursuing the things I find interesting and I will go down the rabbit holes that seem interesting and ultimately they will become useful. DAVID: So talk about that. So that is a really important part of the learning journey, especially on the internet. so if you take before the internet, right? Like, think of the process of going into the library to research a project in college, right? You go to the librarian and you say take me to history and then it's between like book number 800-899 on the little codes and sort of you spend time in history. But you said something there that I don't think you realize that you said, but it is what it means to learn on the internet. It's sort of having hunches and ideas that certain rabbit holes are going to be interesting and having the audacity to go down those rabbit holes. But how do you gauge what rabbit holes do you want to go down? DEVON: So I think it doesn't matter. I actually think that almost everything can be interesting if you try to build a model for it. Now so things aren't interesting if you try to just rote memorize stuff and I think that that's going to be true with basically every topic actually. However, if you try to understand why things happen and build a causal model in your head, everything's interesting. When I was much younger I felt like, ugh, I like playing sports but I don't really enjoy watching sports. And I think this is a pretty typical like nerd opinion to have. But I realized that if you actually watch a game and you tried to understand sort of where the threads are, like if you pull this thread here, what happens to the fabric over there, have this ongoing game. It's extremely fascinating. Same with a mortgage history. Like if the FHA had done this like tiny little thing differently, like what would have been the rippling effects downstream and why do you think that's true? What are the other explanations for that same behavior? So I don't think the specific rabbit hole really matters that much as long as you are actively forcing yourself to build a model. DAVID: It's interesting because I was just watching the NBA finals and with the Warriors. So Stephen Curry, the reason where he is so good, is because after he passes the ball, he runs to the corner and tries to catch it and you just watch it and it's like, it's amazing to watch. But just, it's funny because. And then I would also watch switches on screens and what not. These are things that sound advanced, but they're super simple. And just by having two or three things that I could sort of hook to, then it opened the door for the rest of it. And it was funny because to go back to Tyler when, whenever I try to learn something the best advice that I've gotten from Tyler Cowen is the idea of entry points. Find something that you like, something that it's intuitive, a metaphor that you like, start there. And then as you begin any sort of learning journey, start with an entry point that you're familiar with and use that as your balances, your crutch to go explore new territory. DEVON: I strongly agree with that. So in high school, I thought of myself as much more of a liberal artsy type of person. I was always pretty good at math and science and so on. I didn't struggle but it just didn't click until I was 16, 17. My boyfriend and I at the time rebuilt a 67 Mustang that he owned and we did an engine swap. We replace the rear end, we did a lot of work on this car. And suddenly all of the engineering and engineering related skills that I've picked up over time became fascinating. I was like, I want to understand how all this works. I picked up something like thermodynamics books and like this, this car was the entryway to all sorts of things and now this is a particularly useful one because if we did it wrong we would die while we were driving it. So like we had pretty good motivation to figure stuff out. But I think finding some sort of entryway into that is critical. And I mean working on the car has literally changed my career in the sense that I don't think I would have gone into mechanical engineering and then computer science if it hadn't been for that thing. I mean the guy helps too, but the car was like really this concrete thing I could imagine in my head and then want to understand the pieces that made up the whole thing. DAVID: Totally. Well, I want to switch gears and talk to you about the thing that I'm most excited to talk to you about today, which is really cities and with the intersection of architecture and incentives. Maybe we can start with Singapore and I'm going to ask that selfishly because I'm really interested in Singapore. I think there's a lot to learn from Singapore, but you were also just there and you've written a lot about Singapore. What is so interesting to you about Singapore? DEVON: Oh man. What is not interesting about Singapore? So Singapore I think is one of the most interesting countries in history. And that's saying something, given that it's only been around for I think 50 or 60 years. It is a city-state. It's only about 5 million people. It is ethnically extremely diverse. There are ethnic Chinese, ethnic Malays, ethnic Indians, and many, many other groups there as well. And it's one of the safest places in the world and it has a booming economy and it has been for a long time, seen as like a center of stability in a region that has not always been stable. So all of those things are incredible about Singapore and that would be crazy for any city or any country, but especially considering where they came from, where they had, I don't remember the exact number, but they had GDP, I think equivalent to like Vietnam in the sixties, and now they have significantly higher GDP than almost any country in the world. One of the highest. Now GDP doesn't measure everything, but it correlates with a lot of important things. The reason I think if I had to pick one reason why I'm fascinated by Singapore, it's because it has one of the weirdest types of governance ever. DAVID: Describe the governance. DEVON: The governance is increasingly less so now, but it's quite to totalitarian. It's not very Democratic at all. DAVID: It's funny because my first thought is whoa, that's not good. But it seems like you're hinting at something else. DEVON: I also think it's not good. And if the whole world were run the way Singapore is run, I don't think that would be a good thing for the world. In part because of the specific things that Singapore does, like it still has like physical punishment and so on for not very big crimes. But then also beyond physical and capital punishment. It also just like having one system for the whole world is not a great thing. It's extremely fragile. Things can go wrong in ways that ripple across the entire world. Now that sounds extreme, but I bring that up because I think Singapore is interesting because it is the opposite. Not only does it not, not only is the whole world not governed the way Singapore is. Singapore is tiny. So even if you really strongly dislike what Singapore is trying to do, what it's experimenting with, it's relatively easy to leave. Now I want to add the strong caveat that like leaving the country you were born in is never an easy decision. And I am not like underplaying that. But it is relatively much easier than leaving a massive country that is not deeply interconnected with the world. And so the thing I find exciting about this country is that it provides this room for experimentation at a relatively low cost. If the entire United States were to take on an experiment, say universal basic income or something else entirely, and if it were to go wrong, it would just, it would be a disaster. It could cripple the country and it would affect roughly 20 million people, something like that. And like you also wouldn't even really be able to know if what the causal mechanism was if UBI was the thing that screwed up or something else entirely. Whereas if you can run a bunch of smaller experiments, which this is the idea of federalism, then you can actually compare the results. People can leave if they really don't want to be part of this experiment. And I think this is really important. People don't like the concept of being experimented on and I get it, but if we don't experiment with new models, we're never going to improve. And so I think the question shouldn't be, should we experimental or should we not experiment. It's like, yes we should, but we should find the ways to have the greatest diversity of experiments while also minimizing the cost. DAVID: Right. Like a lot of what China's doing is sort of A, B testing cities, but the downside risk is impacting millions and millions of people. And I think to your point about minimizing the downside, you know, you could argue that they've gone too far. DEVON: Yeah. I think there's a Slate Star Codex blog post that has a great word for this. It calls it archipelago communitarianism. The concept is like we could have a bunch of cities or very small countries, that had radically different systems and the only promise that they make to each other is that they won't stop the people from leaving those places if they really want to. Maybe there are a few other rules too. I'm not gonna remember the entire details of the blog post, read it a few years ago, but I love this idea of having like little islands of extremity to really push an idea to its limit. And if it, if everyone leaves them, that means that that's not what people wanted. DAVID: Well, that's sort of where the whole voice exit loyalty idea of crypto is coming from. Traditionally in terms of countries, you could voice and you could sort of vote and you could say we want to change the way that things are run by speaking up and there's an exit where you can leave. But traditionally with citizenship, you haven't really been able to leave your country. Even if you're abroad, you still have to pay taxes as an American citizen. And so you're forced to be stuck between voice and loyalty. Whereas now we're switching to where you can still voice your opinion, but if you don't like it, you can exit. And there's a lot of freedom that I think comes with that. DEVON: Yeah. I think it's not just that you can still voice your opinions and also you can leave, it's that you can voice your opinions often better if you have a very small community. A single person has much more sway over the outcome. So it seems very likely to me that it's much easier for a person in a very small community to be able to make a change in that community to begin with and like shape it in their own image than it would be for a massive country like the US or Brazil or something like that. So by bringing it down to a smaller scale, you both get added exit rates, but you also get a greater voice. DAVID: Totally. So you were just in Singapore. What stuck out about being in Singapore to you? Let's go to two places. What is the biggest thing that surprised you when you were there? And what is the biggest thing that you've been thinking about since you came back from Singapore? DEVON: I knew that Singapore had great Infrastructure. I knew that its citizens were well educated, that a lot of its systems just worked. But I didn't realize how much this is embedded in the psyche of the place. It's not just that like, stuff works well and some people forget about it and like go ahead and do their own thing. It's like the most central place of the city right next to Maxwell's Hawker Center, which is like a big destination in the core of the city. There's this place called the URA, the urban research association. I don't remember the exact acronym. Basically, it's this like big gallery on urbanism and like what it means to be an effective city with good governance and what it will take for this to continue and get better over time. I went into this gallery exhibit because I can't keep away if you say that it's like an urban museum. I'm like, okay. It's Devon catnip. I couldn't help but to go in. And I was there at 3:00 PM on a Tuesday and it was full of students, the sense that I got is that like every Singaporean student probably goes there like once a year. I don't even think that we have a gallery like that in San Francisco. And certainly not in the center of the city and kids definitely don't go there all the time. There was this overall sense of understanding of why things work so well, how things won't necessarily keep working well in the future unless we do something about it and like a sense of responsibility that people in the community have to like be a presence voice, which seems very contradictory with some sort of a more totalitarian style of ruling. But Singapore may be the only place in the world where there's a brain drain into the government and not out of it. That is very consistent with what I saw. It's very deeply respected to be a good technocrat. Someone who understands how systems work and like truly wants to make them better. DAVID: They pay well, what else? DEVON: They pay very well. There's really high prestige going in. I haven't really thought about this too hard. DAVID: Okay. Then we'll switch gears. So you said something really interesting about cities before we were recording the podcast that I thought that you phrased perfectly and that you're especially drawn to cities because they're in this middle of scale, right? Where they're big enough to have an importance on the world stage, right? Like a city like New York, San Francisco, Singapore, they're a big deal. But then there are small enough to be nimble and still sort of understandable like it's hard to sort of wrap your head around what it means to be American because they're just so much going on here, but then also sort of what you were talking about earlier in terms of experimenting. There's a lot of them so you can sort of abstract lessons from each one. And so it's this perfect size, perfect density, perfect volume that makes cities really interesting to study. Right? DEVON: Totally. I think that the nimbleness is really important. There is some digital ID that Singapore is rolling out for all of its citizens pretty soon and they're going to just do it. They have 5 million people, which is a lot of people to roll something out to, but it's big enough for this ID to really matter, but it's small enough where they're like, we can just do this, we can just, we can just make it happen. And I think that's thrilling that you can experiment with something of that size. At the same time, you have this really tight feedback loop. If your trash isn't picked up tomorrow, you're gonna notice within a week you're going to probably start writing letters and like your trash better get picked up. I think at the national level, the feedback loops are much longer and it's just harder to know if people are governing you well at all. And that's a recipe for disaster. It leads to much more misalignment of incentives. DAVID: Definitely. Tight feedback is key to learning. DEVON: It's key to everything. Like if you don't have a tight feedback loop, you're just not really going to improve I think, and you're actually very likely to do things that aren't purely for signaling that you care as opposed to actually doing the right thing. DAVID: Go off on that because that's an idea I haven't explored. DEVON: Yeah. Officials in the US tend to do grandstand a lot, at the federal level. And the reason for this is because they don't even really know if they're having the impact they want to have or that their constituents want them to have. The only real information that people get on both sides is like what someone said, even after the facts, even a decade later, it can be very difficult to draw any meaningful causality stemming from a particular leader. I think that's true in any organization ever. Even as small as a single person organization. You can't do randomized controlled trials on like everything or almost anything. But the problem just grows in scale to a huge extent as you get bigger. I think if you can keep it to a smaller size, it's like, well, you either did your job or you didn't. And the problems are much more manageable, the relationships are less opaque. It's just a much more transparent system overall. DAVID: Totally. So, I mean, for me what's been really interesting is in New York studying art decor, one thing that I love about architecture is I've been thinking about this idea a lot, where a lot of history is sort of subject to the narrative fallacy where it's written by the winners and the really good book on this is The People's History of the United States by Howard Zinn. He admits that it's biased, but he tries to tell American history from the perspective of the losers. And if you have a generic understanding of American history, you're going to get so many ideas pumped into your head that are totally different. So what's really cool about architecture is, if you look at something like the Chrysler building and at the very top of it and in the lobby and sort of the birds hanging off the side, you know, 60 feet below the top of the building, you can see this like technological enthusiasm, this almost sense of like a utopian spirit that technology in the twenties and the roaring twenties was going to come and save the world. And through the architecture of New York, you can really understand the city in a way that understanding history might not allow you to do. DEVON: Yeah. And I think it's especially interesting to see how buildings change over time in reaction to that original time when it was created and how they shift. I think the moment when I really became aware of the importance of architecture was in my very first job, we started out in this very small office that was cozy and like my desk was far away from the restroom and the kitchen. So when I wanted to take a break, I'd have to walk past everyone and I'd have like a little conversation and I felt very positive about all my coworkers and I feel like we had a really good rapport. About halfway through my time there, we moved into a totally different building. It was supposed to be fancier, it was nicer by everything you could put on paper. But the shape of the rooms was super messed up. Basically, everyone was very close. It was more like a doughnut where like all of the good stuff was in the center and good stuff, meaning, like the kitchen. And so you didn't have to walk past anyone to go see it, which was kind of nice if you're focusing on a problem or you want some alone time, there are pluses to that, but you don't end up having these interactions. And as a result, I almost immediately started feeling like the only people I knew in the company were my team and a lot of the work that I was supposed to be doing was cross-functional. So this made me significantly worse in my job just immediately. Now, of course, this doesn't stop you from having coffee with a coworker and the sales team or something or organizing something with the product team or you know, inviting them to sit at your table at lunch. But these micro-interactions are really critical for building that rapport, for making, keeping people on context. I almost felt like I was a remote worker, and I don't mean to insult remote work. I think that there are huge pluses to that, but it's really undercut the benefits of being in the office as soon as we moved into this new place. DAVID: It's funny because I feel like so much of architecture now, we place such an emphasis on the outside of a building what most people see. But I don't know that we have the same sort of rich discussions about the experience of actually being somewhere. And I guess the example that comes to me is natural light. Like I value natural light in indoors just to such a high degree. It's like the number one thing that I care about in a building, but so often we look at the outside of buildings, so we say, oh that's beautiful. It looks great in a photo, but the experience of being inside of it, I don't actually know that the incentives are aligned for architects to think about that. DEVON: I agree. I mean if you have ever spent time looking for an apartment on Craigslist or a place on Airbnb, actually everything and I'll explain that later. But on craigslist it's like it tells you the square footage, it tells you how many rooms, how many bathrooms there are, which are obviously important details, but it does very little to describe features like natural light and things that make you actually happy, how livable it is. I think part of the problem for this is that it's a much harder thing to commoditize, which means that like it's harder to measure. It's harder to compare two things, there's not a strict measure that you can really use. But it really matters. It really matters a lot. The experience of being in a place is totally different from the way people will often describe a room, at least in describing a room in comparable terms. I think maybe it seems possible. Maybe someone just needs to build a vocabulary for it. DAVID: Okay. Let's play a little game. So if you had to take five metrics for deciding a house on Zillow, right? We have rooms square foot, but if you had five metrics that don't exist right now, what would it be? You do some, I do some. DEVON: Okay. I kinda like this, I'm thinking of it sort of like the, you know, the big five personality. It's kind of like that. DAVID: So you get three, I get two. DEVON: Let's see, I'd say flexibility. Like how much can you change the space to fit your own needs? Is it like very tightly custom designed? The purest example of this would be like the cabinets are built into the walls so you can't move the cabinets. Versus like a lot of ability to move stuff around. DAVID: Mine is the density of power outlets. Most houses don't have nearly enough. DEVON: Oh my god. The computer science building at Stanford has almost no power outlets, which is insane because you go there for the office hours and you know, everyone's there for hours and hours and hours and everyone's computer starts dying around hour three and there's one power outlet and the whole building. Yeah, that needs to change. DAVID: Here's another one. Where I really like houses where the rooms are super private and the open spaces are super public. So you have the kitchen, the living room, the dining room, all sort of in the same room because at the houses that I grew up in, the kitchen was always separate from the dining room. And so whenever we would cook as hosts, It was always sort of awkward because you sort of had to choose. Whereas you get this awesome communal vibe, but I think it really helps with family dynamics if all that is sort of in the same room and it has really good natural light and there's a nice ambiance in there because then people can cluster there. But then you balance that with like the privacy of the rooms. DEVON: I'll expand that one to like the ability to pass through. So in the house I live in right now, it's very hard to get to the backyard. DAVID: Yeah, describe this house because it's actually really cool. It's a commune with 10 people, but like really intelligent people here. DEVON: We call it an intentional community because commune has a lot of economic implications that probably don't apply. So I'm one of 10 people who live in this house. We're actually expanding to an upper floor and it'll be 16 soon. And we're just a group of people who we all care a lot about, having really easy relationships and what that means is I think a lot of the most meaningful and happiness-inducing experiences and interactions that you'll often have will be these little micro-interactions. It's very similar to what I was talking about with my old office. Where if it's really expensive to meet up with someone and hang out with them, it takes money, time, and energy. You have to have to call them, which seems like not a big deal. But here's an intention that's necessary therefore it to happen. You're only going to become close with people where you have an explicit reason to do so. Like sort of a motive almost. Whereas if you're just in the same place, this is why people love college so much. If you're just in the same place with a lot of people who are energetic, motivated, ambitious, like these amazing things will happen where you'll just bump into each other throughout your day and like amazing things will happen without intention and I think that's amazingly valuable and really easy to undervalue. DAVID: You make a really good point because that's almost in a place where that's not the case. Having relationships where you meet somebody right away is almost the mark of a good friendship. It was Saturday night, 11:00 PM a couple of weeks ago. My friend calls me and he goes, what are you doing right now? And it was the first time that happened to me in New York, but it was this like moment in our friendship where in order to do that. Like that happened all the time in college. Like that's college 101. Oh, what are you doing right now? But for it to happen in New York? First of all, was like shocking to me and second of all it was like this mark of our friendship where to get there with somebody takes so much more work because of the way that New York is built and that happens daily in this house here, which I think is really cool. DEVON: It's amazing. I mean, it's amazing you say that that's the case in New York because New York is probably one of the best places in the entire US for this. Like in the opposite sense of what you're talking about. Now imagine if you guys lived in Irvine, California or a far-flung suburb of Salt Lake City or something comes up for you to meet up with this person. Like right now it's just, you jump on the subway, you're there in a few minutes. Not that big of a deal. In those places, you have to like get in your car. Maybe you have to get your snow boots on. You can't get drunk and go home, which is also a good way to bond with people. Also, when you arrive, it will likely just be the two of you, probably no one else was invited, whereas like in a city, maybe you meet up at a bar where there's like a bunch of other random people around you who ended up being really interesting. Actually one of my closest friends. I met like at an event at the MoMa, and just because we like bumped into each other at a mixer afterward. That wouldn't have happened if we weren't in the city. You don't have things like the MoMa in far-out suburbs. And so this is like another example of not just architecture but the general built environment, having dramatic effects on the way you actually interact with the world. DAVID: So let's play another game. If you were to take, I gave you three, we're just going to do metrics again, three metrics or three data points that you could pick and you're going to choose where you live, the house that you lived, a location, what city, what the house looks like, what would the three that you picked be? DEVON: That's a good one. One would be, how long does it take for you to walk from where you live to like your top 10 favorite locations in the city? I think if the answer is a long time and especially if the answer is like you can't even walk there, that's not a good sign for me. Now I don't mean this to be normative for everybody. Other people do have other preferences. Some people want to like go on a big ranch in Idaho and like never see another human. Again, totally not my type but good for them. I'm not saying it's the case, but for me it's very important that I can walk places. I think the reason for this is because walking is a way to interact with your community in these small ways every single day where I think the way people get comfortable in a place in a social group is not through just like one really intense interaction, but through a bunch of smaller ones where you sort of see things from different angles you experienced, you know, what does my neighborhood looked like on a rainy day, what does my neighborhood look like when it's a cloudy day, what does it look like when I'm kind of tired? And these sound like tiny, trivial differences. But you can understand much better how things function. Maybe usually on a sunny day people will like to sit outside at Maxfield's coffee down the street, but on a different one, people sort of tuck inside and it has this closer vibe. You get to know the vibe just much better and you end up meeting people that you probably wouldn't meet if you were in an uber going from point A to point B all the time. So walking is one. Another one would be if for random and sort of once in a while type things like I had to get a necklace fixed the other day, how easy is it for this to be a part of your daily routine? So is it like you have to drive like way out of your way and find some really specialty store to do it? Or like what I did, I was able to walk two blocks away. There's a little jeweler who was able to fix it in three minutes and I walked back and that was like not even my whole lunch break. That was just a little pause in the middle of my day. I grabbed coffee on the way and I came back and up until that point, I had no idea that jeweler was there and we had a nice conversation. But it was just right there. And I love that my whole community can be inside of this little circle. Number three. DAVID: I'll give you my three real quick. So my first one would be natural light, as I've said many times before. That's super important to me. The second one, yours is walking, for me, it's like not having to use a car. So I actually sort of like taking public transportation so I just don't like driving and I don't really like being in cars. So those are the two. The third one would be I like being able to walk, especially to food. Like at my old apartment I was super close with everyone who worked at the bagel shop and I'm pretty close with all the ladies who work at maya taqueria, my local taqueria. And the last one would just be a high density of super intellectually hungry people, which for me is why I've chosen to live in New York. DEVON: Oh, I see. So we can expand this beyond built environment. I would definitely make that my third one as well. This is why I'm in San Francisco, New York maybe is a good choice too, but there is just always someone I can talk to about whatever crazy idea I have going in through my head or is going through their head any given day. I find not everybody here necessarily wants to discuss these ideas, but by using twitter you can actually find these people and like create this strong core where I've basically tricked my brain. The thinking that like everyone around me is just this crazy monster of ideas, continually coming up with new things. There's so much intersection of like different types of people doing work in the city. Everything from like researchers to engineers to entrepreneurs to artists. And unfortunately, fewer these days, as a city gets more expensive. And they're all just mixed together in this pretty small city where you can always find them. But then I think the important component is you also have to have some tools that sort of overlay this to help find them. Just walking around the city. Like I was talking about before, won't surface all of these people and you also are less likely to get outside of your current network if you just stick in your small neighborhood. DAVID: Let's do a quick fire round. So I'm going to ask you like five, six questions and try to keep your answers to like 30 seconds or less. Why do you love Stewart Brand so much? DEVON: He is a polymath. A lot of people take crusades on things. They pick one idea and they just drive it for years and years. Stewart takes hundreds of ideas and makes them all good and is still able to keep a really strong sense of identity despite not having like one thing that he ties himself. DAVID: So I have a theory that personality will end up being almost like the last mode and that sort of so much of what's happening in society right now is like brands are sort of disappearing where many people have less likely to have a favorite brand. But I think that the internet has made it really easy to connect with people. And Stewart Brand is always sort of been a pioneer of technology and I think that people can move around and explore different things through their personality in ways that institutions can't. And I think that that's really helped somebody like Stewart Brand. I don't actually think that focusing on the same thing is like a vector that really matters when it comes to consistency with a person. DEVON: I think that's true. And I think Stewart and Tyler are two fantastic examples of this being 100 percent possible. I think that most people don't realize that and they think that they have to pick one thing and so that you see th
Listen Here: iTunes | Overcast | PlayerFM Keep up with the North Star Podcast. My guest today is Michael Nielsen a scientist, writer and computer programmer who works as a research fellow at Y Combinator Research. Michael has written on various topics from quantum teleportation, geometric complexity and the future of science. Michael is the most original thinker I have discovered in a long time when it comes to artificial intelligence, augmenting human intelligence, reinventing explanation and using new media to enable new ways of thinking. Michael has pushed my mind towards new and unexpected places. This conversation gets a little wonky at times, but as you know, the best conversations are difficult. They are challenging because they venture into new, unexplored territory and that's exactly what we did here today. Michael and I explored the history of tools and jump back to the invention of language, the defining feature of human collaboration and communication. We explore the future of data visualization and talk about the history of the spreadsheet as a tool for human thought. “Before writing and mathematics, you have the invention of language which is the most significant event in some ways. That’s probably the defining feature of the human species as compared to other species.” LINKS Find Michael Online Michael’s Website Michael’s Twitter Michael’s Free Ebook: Neural Networks and Deep Learning Reinventing Discovery: The New Era of Networked Science Quantum Computation and Quantum Information Mentioned In the Show 2:12 Michael’s Essay Extreme Thinking 21:48 Photoshop 21:49 Microsoft Word 24:02 The David Bowie Exhibit 28:08 Google AI’s Deep Dream Images 29:26 Alpha Go 30:26 Brian Eno’s Infamous Airport Music 33:41 Listen to Speed of Life by Dirty South Books Mentioned 46:06 Zen and The Art of Motorcycle Maintenance by Robert M. Pirsig 54:12 Cat’s Cradle by Kurt Vonnegut People Mentioned 13:27 Rembrandt Van Rijn’s Artwork 15:01 Monet’s Gallery 15:02 Pierre Auguste Renoir’s Impressionist Art 15:05 Picasso’s Paintings 15:18 Paul Cezanne’s Post-Impressionist Art 25:40 David Brooke’s NYT Column 35:19 Franco of Cologne 56:58 Alan Kay’s Ted Talk on the future of education 57:04 Doug Engelbart 58:35 Karl Schroeder 01:02:06 Elon Musk’s Mars-bound company, SpaceX 01:04:25 Alex Tabarrok Show Topics 4:01 Michael’s North Star, which drives the direction of his research 5:32 Michael talks about how he sets his long-term goals and how he’s propelled by ideas he’s excited to see in the world. 7:13 The invention of language. Michael discusses human biology and how it’s easier to learn a language than writing or mathematics. 9:28 Michael talks about humanity’s ability to bootstrap itself. Examples include maps, planes, and photography 17:33 Limitations in media due to consolidation and the small number of communication platforms available to us 18:30 How self-driving cars and smartphones highlight the strange intersection where artificial intelligence meets human interaction and the possibilities that exist as technology improves 21:45 Why does Photoshop improve your editing skills, while Microsoft Word doesn’t improve your writing skills? 27:07 Michael’s opinion on how Artificial Intelligence can help people be more creative “Really good AI systems are going to depend upon building and currently depend on building very good models of different parts of the world, to the extent that we can then build tools to actually look in and see what those models are telling us about the world.” 30:22 The intersection of algorithms and creativity. Are algorithms the musicians of the future? 36:51 The emerging ability to create interactive visual representations of spreadsheets that are used in media, internally in companies, elections and more. “I’m interested in the shift from having media be predominantly static to dynamic, which the New York Times is a perfect example of. They can tell stories on newyorktimes.com that they can’t tell in the newspaper that gets delivered to your doorstep.” 45:42 The strategies Michael uses to successfully trail blaze uncharted territory and how they emulate building a sculpture 53:30 Michael’s learning and information consumption process, inspired by the idea that you are what you pretend to be 56:44 The foundation of Michael’s worldview. The people and ideas that have shaped and inspired Michael. 01:02:26 Michael’s hypothesis for the 21st century project involving blockchain and cryptocurrencies and their ability to make implementing marketplaces easier than ever before “The key point is that some of these cryptocurrencies actually, potentially, make it very easy to implement marketplaces. It’s plausible to me that the 21st century [project] turns out to be about [marketplaces]. It’s about inventing new types of markets, which really means inventing new types of collective action.” Host David Perell and Guest Michael Nielsen TRANSCRIPT Hello and welcome to the North Star. I'm your host, David Perell, the founder of North Star Media, and this is the North Star podcast. This show is a deep dive into the stories, habits, ideas, strategies, and rituals that guide fulfilled people and create enormous success for them, and while the guests are diverse, they share profound similarities. They're guided by purpose, live with intense joy, learn passionately, and see the world with a unique lens. With each episode, we get to jump into their minds, soak up their hard-earned wisdom and apply it to our lives. My guest today is Michael Nielson, a scientist, writer, and computer programmer, who works as a research fellow at Y Combinator Research. Michael's written on various topics from quantum teleportation to geometric complexity to the future of science, and now Michael is the most original thinker I've discovered in a long time. When it comes to artificial intelligence to augmenting human intelligence, reinventing explanation, or using new media to enable new ways of thinking, Michael has pushed my mind towards new and unexpected places. Now, this conversation gets a little wonky at times, but as you know, the best conversations are difficult. They're challenging because they venture into new, unexplored territory and that's exactly what we did here today. Michael and I explored the history of tools. This is an extension of human thought and we jump back to the invention of language, the defining feature of human collaboration and communication. We explore the future of data visualization and talk about the history of this spreadsheet as a tool for human thought. Here's my conversation with Michael Nielson. DAVID: Michael Nielson, welcome to the North Star Podcast. MICHAEL: Thank you, David. DAVID: So tell me a little bit about yourself and what you do. MICHAEL: So day to day, I'm a researcher at Y Combinator Research. I'm basically a reformed theoretical physicist. My original background is doing quantum computing work. And then I've moved around a bit over the years. I've worked on open science, I've worked on artificial intelligence and most of my current work is around tools for thought. DAVID: So you wrote an essay which I really enjoyed called Extreme Thinking. And in it, you said that one of the single most important principle of learning is having a strong sense of purpose and a strong sense of meaning. So let's be in there. What is that for you? MICHAEL: Okay. You've done your background. Haven't thought about that essay in years. God knows how long ago I wrote it. Having a strong sense of purpose. What did I actually mean? Let me kind of reboot my own thinking. It's, it's kind of the banal point of view. How much you want something really matters. There's this lovely interview with the physicist Richard Feynman, where he's asked about this Indian mathematical prodigy Ramanujan. A movie was made about Ramanujan’s mathematical prowess a couple of years ago. He was kind of this great genius. And a Feynman was asked what made Ramanujan so good. And the interview was expecting him to say something about how bright this guy was or whatever. And Feynman said instead, that it was desire. It was just that love of mathematics was at the heart of it. And he couldn't stop thinking about it and he was thinking about it. He was doing in many ways, I guess the hard things. It's very difficult to do the hard things that actually block you unless you have such a strong desire that you're willing to go through those things. Of course, I think you see that in all people who get really good at something, whether it be sort of a, just a skill like playing the violin or something, which is much more complicated. DAVID: So what is it for you? What is that sort of, I hate to say I want to just throw that out here, that North Star, so to speak, of what drives you in your research? MICHAEL: Research is funny. You go through these sort of down periods in which you don't necessarily have something driving you on. That used to really bother me early in my career. That was sort of a need to always be moving. But now I think that it's actually important to allow yourself to do that. That's actually how you find the problems, which really get, get you excited. If you don't sort of take those pauses, then you're not gonna find something that's really worth working on. I haven't actually answered your question. I think I know I've jumped to that other point because that's one thing that really matters to me and it was something that was hard to learn. DAVID: So one thing that I've been thinking a lot about recently is you sort of see it in companies. You see it in countries like Singapore, companies like Amazon and then something like the Long Now Foundation with like the 10,000-year clock. And I'm wondering to you in terms of learning, there's always sort of a tension between short-term learning and long-term learning. Like short-term learning so often is maybe trying to learn something that feels a little bit richer. So for me, that's reading, whereas maybe for a long-term learning project there are things I'd like to learn like Python. I'd like to learn some other things like that. And I'm wondering, do you set long-term learning goals for yourself or how would you think about that trade off? MICHAEL: I try to sit long-time learning goals to myself, in many ways against my better judgment. It's funny like you're very disconnected from you a year from now or five years from now, or 10 years from now. I can't remember, but Eisenhower or Bonaparte or somebody like that said that the planning is invaluable or planning plans are overrated, but planning is invaluable. And I think that's true. And this is the right sort of attitude to take towards these long-term lending goals. Sure. It's a great idea to decide that you're going out. Actually, I wouldn't say it was a great idea to say that you're going to learn python, I might say. However, there was a great idea to learn python if you had some project that you desperately wanted to do that it required you to learn python, then it's worth doing, otherwise stay away from python. I certainly favor, coupling learning stuff to projects that you're excited to actually see in the world. But also, then you may give stuff up, you don't become a master of python and instead you spend whatever, a hundred hours or so learning about it for this project that takes you a few hundred hours, and if you want to do a successor project which involves it, more of it. Great, you'll become better. And if you don't, well you move onto something else. DAVID: Right. Well now I want to dive into the thing that I'm most excited to talk to you about today and that's tools that extend human thought. And so let's start with the history of that. We'll go back sort of the history of tools and there's had great Walter Ong quote about how there are no new thoughts without new technologies. And maybe we can start there with maybe the invention of writing, the invention of mathematics and then work through that and work to where you see the future of human thought going with new technologies. MICHAEL: Actually, I mean before writing and mathematics, you have the invention of language, which is almost certainly the most significant single event in some ways. The history of the planet suddenly, you know, that's probably the defining feature of the human species as compared to other species. Um, I say invention, but it's not even really invention. There's certainly a lot of evidence to suggest that language is in some important sense built into our biology. Not the details of language. Um, but this second language acquisition device, it seems like every human is relatively very set to receive language. The actual details depend on the culture we grow up on. Obviously, you don't grow up speaking French if you were born in San Francisco and unless you were in a French-speaking household, some very interesting process of evolution going on there where you have something which is fundamentally a technology in some sense languages, humans, a human invention. It's something that's constructed. It's culturally carried. Um, it, there's all these connections between different words. There's almost sort of a graph of connections between the words if you like, or all sorts of interesting associations. So in that sense, it's a technology, something that's been constructed, but it's also something which has been over time built into our biology. Now if you look at later technologies of thought things like say mathematics, those are much, much later. That hasn't been the same sort of period of time. Those don't seem to be built into our biology in quite the same way. There's actually some hints of that we have some intrinsic sense of number and there's some sort of interesting experiments that suggest that we were built to do certain rudimentary kinds of mathematical reasoning but there's no, you know, section of the brain which specializes sort of from birth in solving quadratic equations, much less doing algebraic geometry or whatever, you know, super advanced. So it becomes this cultural thing over the last few thousand years, this kind of amazing process whereby we've started to bootstrap ourselves. If you think about something like say the invention of maps, which really has changed the way people relate to the environment. Initially, they were very rudimentary things. Um, and people just kept having new ideas for making maps more and more powerful as tools for thought. Okay. I can give you an example. You know, a very simple thing, if you've ever been to say the underground in London or most other subway systems around the world. It was actually the underground when this first happened, if you look at the map of the underground, I mean it's a very complicated map, but you can get pretty good at reasoning about how to get from one place to another. And if you look at maps prior to, I think it was 1936, in fact, the maps were much more complicated. And the reason was that mapmakers up to that point had the idea that where the stations were shown on the map had to correspond to the geography of London. Exactly. And then somebody involved in producing the underground map had just a brilliant insight that actually people don't care. They care about the connections between the stations and they want to know about the lines and they want some rough idea of the geography, but they're quite happy for it to be very rough indeed and he was able to dramatically simplify that map by simply doing away with any notion of exact geography. DAVID: Well, it's funny because I noticed the exact same thing in New York and so often you have insights when you see two things coming together. So I was on the subway coming home one day and I was looking at the map and I always thought that Manhattan was way smaller than Brooklyn, but on the subway map, Manhattan is actually the same size as Brooklyn. And in Manhattan where the majority of the subway action is, it takes up a disproportionate share of the New York City subway map. And then I went home to go read Power Broker, which is a book about Robert Moses building the highways and they had to scale map. And what I saw was that Brooklyn was way, way bigger than Manhattan. And from predominantly looking at subway maps. Actually, my topological geographical understanding of New York was flawed and I think exactly to your point. MICHAEL: It's interesting. When you think about what's going on there and what it is, is some person or a small group of people is thinking very hard about how to represent their understanding of the city and then the building, tools, sort of a technological tool of thought that actually then saves millions or in the case of a New York subway or the London underground, hundreds of millions or billions of people, mostly just seconds, sometimes, probably minutes. Like those maps would be substantially more complicated sort of every single day. So it's only a small difference. I mean, and it's just one invention, right? But, you know, our culture is of course accumulated thousands or millions of these inventions. DAVID: One of my other favorite ones from being a kid was I would always go on airplanes and I'd look at the route map and it would always show that the airplanes would fly over the North Pole, but on two-dimensional space that was never clear to me. And I remember being with my dad one night, we bought a globe and we took a rubber band and we stretched why it was actually shorter to fly over the North Pole, say if you're going from New York to India. And that was one of the first times in my life that I actually didn't realize it at the time, but understood exactly what I think you're trying to get at there. How about photography? Because that's another one that I think is really striking, vivid from the horse to slow motion to time lapses. MICHAEL: Photography I think is interesting in this vein in two separate ways. One is actually what it did to painting, which is of course painters have been getting more and more interested in being more and more realistic. And honestly, by the beginning of the 19th century, I think painting was pretty boring. Yeah, if you go back to say the 16th and 17th centuries, you have people who are already just astoundingly good at depicting things in a realistic fashion. To my mind, Rembrandt is probably still the best portrait painter in some sense to ever live. DAVID: And is that because he was the best at painting something that looked real? MICHAEL: I think he did something better than that. He did this very clever thing, you know, you will see a photograph or a picture of somebody and you'll say, oh, that really looks like them. And I think actually most of the time we, our minds almost construct this kind of composite image that we think of as what David looks like or what our mother looks like or whatever. But actually moment to moment, they mostly don't look like that. They mostly, you know, their faces a little bit more drawn or it's, you know, the skin color is a little bit different. And my guess, my theory of Rembrandt, is that he may have actually been very, very good at figuring out almost what that image was and actually capturing that. So, yeah, I mean this is purely hypothetical. I have no real reason to believe it, but I think it's why I responded so strongly to his paintings. DAVID: And then what happened? So after Rembrandt, what changed? MICHAEL: So like I said, you mean you keep going for a sort of another 200 years, people just keep getting more and more realistic in some sense. You have all the great landscape painters and then you have this catastrophe where photography comes along and all of a sudden you're being able to paint in a more and more realistic fashion. It doesn't seem like such a hot thing to be doing anymore. And if for some painters, I think this was a bit of a disaster, a bit of dose. I said of this modern wave, you start to see through people like Monet and Renoir. But then I think Picasso, for me anyway, was really the pivotal figure in realizing that actually what art could become, is the invention of completely new ways of seeing. And he starts to play inspired by Cezanne and others in really interesting ways with the construction of figures and such. Showing things from multiple angles in one painting and different points of view. And he just plays with hundreds of ideas along these lines, through all of his painting and how we see and what we see in how we actually construct reality in their heads from the images that we see. And he did so much of that. It really became something that I think a lot of artists, I'm not an artist or a sophisticated art theory person, but it became something that other people realized was actually an extraordinarily interesting thing to be doing. And much of the most interesting modern art is really a descendant of that understanding that it's a useful thing to be doing. A really interesting thing to be doing rather than becoming more and more realistic is actually finding more and more interesting ways of seeing and being able to represent the world. DAVID: So I think that the quote is attributed to Marshall McLuhan, but I have heard that Winston Churchill said it. And first, we shape our tools and then our tools shape us. And that seems to be sort of the foundation of a lot of the things that you're saying. MICHAEL: Yeah, that's absolutely right. I mean, on the other side, you also have, to your original question about photography. Photographers have gradually started to realize that they could shape how they saw nature. Ansel Adams and people like this, you know. Just what an eye. And understanding his tools so verbally he's not just capturing what you see. He's constructing stuff in really, really interesting ways. DAVID: And how about moving forward in terms of your work, thinking about where we are now to thinking about the future of technology. For example, one thing that frustrates me a bit as a podcast host is, you know, we just had this conversation about art and it's the limits of the audio medium to not be able to show the paintings of Rembrandt and Cezanne that we just alluded to. So as you think about jumping off of that, as you think about where we are now in terms of media to moving forward, what are some of the challenges that you see and the issues that you're grappling with? MICHAEL: One thing for sure, which I think inhibits a lot of exploration. We're trapped in a relatively small number of platforms. The web is this amazing thing as our phones, iOS and whatnot, but they're also pretty limited and that bothers me a little bit. Basically when you sort of narrow down to just a few platforms which have captured almost all of the attention, that's quite limiting. People also, they tend not to make their own hardware. They don't do these kinds of these kinds of things. If that were to change, I think that would certainly be exciting. Something that I think is very, very interesting over the next few years, artificial intelligence has gotten to the point now where we can do a pretty good job in understanding what's actually going on inside a room. Like we can set up sufficient cameras. If you think about something like self-driving cars, essentially what they're doing is they're building up a complete model of the environment and if that model is not pretty darned good, then you can't do self-driving cars, you need to know where the pedestrians are and where the signs are and all these kinds of things and if there's an obstruction and that technology when brought into, you know, the whole of the rest of the world means that you're pretty good at passing out. You know what's inside the room. Oh, there's a chair over there, there's a dog which is moving in that direction, there's a person, there’s a baby and sort of understanding all those actions and ideally starting to understand all the gestures which people are making as well. So we're in this very strange state right at the moment. Where the way we talk to computers is we have these tiny little rectangles and we talk to them through basically a square inch or so of sort of skin, which is our eyes. And then we, you know, we tap away with our fingers and the whole of the rest of our body and our existence is completely uncoupled from that. We've effectively reduced ourselves to our fingers and our eyes. We a couple to it only through the whatever, 100 square inches, couple hundred square inches of our screens or less if you're on a phone and everything else in the environment is gone. But we're actually at a point where we're nearly able to do an understanding of all of that sufficiently well that actually other modes of interaction will become possible. I don't think we're quite there yet, but we're pretty close. And you start to think about, something like one of my favorite sport is tennis. You think about what a tennis player can do with their body or you think about what a dancer can do with their body. It's just extraordinary. And all of that mode of being human and sort of understanding we can build up antibodies is completely shut out from the computing experience at the moment. And I think over the next sort of five to ten years that will start to reenter and then in the decades hence, it will just seem strange that it was ever shut out. DAVID: So help me understand this. So when you mean by start to reenter, do mean that we'll be able to control computers with other parts of our bodies or that we'll be spending less time maybe typing on keyboards. Help me flesh this out. MICHAEL: I just mean that at the moment. As you speak to David, you are waving your arms around and all sorts of interesting ways and there is no computer system which is aware of it, what your computer system is aware of. You're doing this recording. That's it. And even that, it doesn't understand in any sort of significant way. Once you've gained the ability to understand the environment. Lots of interesting things become possible. The obvious example, which everybody immediately understands is that self driving cars become possible. There's this sort of enormous capacity. But I think it's certainly reasonably likely that much more than that will become possible over the next 10 to 20 years. As your computer system becomes completely aware of your environment or as aware as you're willing to allow it to be. DAVID: You made a really interesting analogy in one of your essays about the difference between Photoshop and Microsoft Word. That was really fascinating to me because I know both programs pretty well. But to know Microsoft word doesn't necessarily mean that I'm a better writer. It actually doesn't mean that at all. But to know Photoshop well probably makes me pretty good at image manipulation. I'm sure there's more there, but if you could walk me through your thought process as you were thinking through that. I think that's really interesting. MICHAEL: So it's really about a difference in the type of tools which are built into the program. So in Photoshop, which I should say, I don't know that well, I know Word pretty well. I've certainly spent a lot more time in it than I have ever spent in Photoshop. But in Photoshop, you do have these very interesting tools which have been built in, which really condense an enormous amount of understanding of ideas like layers or an idea, different brushes, these kinds of ideas. There's just a tremendous amount of understanding which has been built in there. When I watch friends who are really good with these kinds of programs, what they can do with layers is just amazing. They understand all these kind of clever screening techniques. It seems like such a simple idea and yet they're able to do these things that let you do astonishing things just with sort of three or four apparently very simple operations. So in that sense, there are some very deep ideas about image manipulation, which had been built directly into Photoshop. By contrast, there's not really very many deep ideas about writing built into Microsoft Word. If you talk to writers about how they go about their actual craft and you say, well, you know, what heuristics do use to write stories and whatnot. Most of the ideas which they use aren't, you know, they don't correspond directly to any set of tools inside Word. Probably the one exception is ideas, like outlining. There are some tools which have been built into word and that's maybe an example where in fact Word does help the writer a little bit, but I don't think to nearly the same extent as Photoshop seems to. DAVID: I went to an awesome exhibit for David Bowie and one of the things that David but we did when he was writing songs was he had this word manipulator which would just throw him like 20, 30 words and the point wasn't that he would use those words. The point was that by getting words, his mind would then go to different places and so often when you're in my experience and clearly his, when you're trying to create something, it helps to just be thrown raw material at you rather than the perennial, oh my goodness, I'm looking at a white screen with like this clicking thing that is just terrifying, Word doesn't help you in that way. MICHAEL: So an example of something which does operate a little bit in that way, it was a Ph.D. thesis was somebody wrote at MIT about what was called the Remembrance Agent. And what it would do, it was a plugin essentially for a text editor that it would, look at what you are currently writing and it would search through your hard disk for documents that seemed like they might actually be relevant. Just kind of prompt you with what you're writing. Seems like it might be related to this or this or this or this or this. And to be perfectly honest, it didn't actually work all that well. I think mostly because the underlying machine learning algorithms it used weren't very clever. It's defunct now as far as I know. I tried to get it to run on my machine or a year or two ago and I couldn't get it running. It was still an interesting thing to do. It had exactly this same kind of the belly sort of experience. Even if they weren't terribly relevant. You kind of couldn't understand why on earth you are being shown it. It's still jogged your mind in an interesting way. DAVID: Yeah. I get a lot of help out of that. Actually, I’ll put this example. So David Brooks, you know the columnist for the New York Times. When he writes, what he does is he gets all of his notes and he just puts his notes on the floor and he literally crawls all around and tries to piece the notes together and so he's not even writing. He's just organizing ideas and it must really help him as it helps me to just have raw material and just organize it all in the same place. MICHAEL: There's a great British humorist, PG Boathouse, he supposedly wrote on I think it was the three by five-inch cards. He'd write a paragraph on each one, but he had supposedly a very complicated system in his office, well not complicated at all, but it must have looked amazing where he would basically paste the cards to the wall and as the quality of each paragraph rose, he would move the paragraph up the wall and I think the idea was something like once it got to the end, it was a lion or something, every paragraph in the book had to get above that line and at that point it was ready to go. DAVID: So I've been thinking a lot about sort of so often in normal media we take AI sort of on one side and art on another side. But I think that so many of the really interesting things that will emerge out of this as the collaboration between the two. And you've written a bit about art and AI, so how can maybe art or artificial intelligence help people be more creative in this way? MICHAEL: I think we still don't know the answer to the question, unfortunately. The hoped-for answer the answer that might turn out to be true. Real AI systems are going to build up very good models of different parts of the world, maybe better than any human has of those parts of the world. It might be the case, I don't know. It might be the case that something like the Google translate system, maybe in some sense that system already knows some facts about translation that would be pretty difficult to track down in any individual human mind and sort of so much about translation in some significant ways. I'm just speculating here. But if you can start to interrogate that understanding, it becomes a really useful sort of a prosthetic for human beings. If you've seen any of these amazing, well I guess probably the classics, the deep dream images that came out of Google brain a couple of years ago. Basically, you take ordinary images and you're sort of running them backwards through a neural net somehow. You're sort of seeing something about how the neural net sees that image. You get these very beautiful images as a result. There's something strange going on and sort of revealing about your own way of seeing the world. And at the same time, it's based on some structure which this neural net has discovered inside these images which is not ordinarily directly accessible to you. It's showing you that structure. So sort of I think the right way to think about this is that really good AI systems are going to depend upon building and do currently depend on building very good models of different parts of the world and to the extent that we can then build tools to actually look in and see what those models are telling us about the world, we can learn interesting new things which are useful for us. I think the conventional way, certainly the science fiction way to think about AI is that we're going to give it commands and it's going to do stuff. How you shut the whatever it is, the door or so on and so forth, and there was certainly will be a certain amount of that. Or with AlphaGo what is the best move to take now, but actually in some sense, with something like AlphaGo, it's probably more interesting to be able to look into it and see what it's understanding is of the board position than it is to ask what's the best move to be taken. A colleague showed me a go program, a prototype, what it would do. It was a very simple kind of a thing, but it would help train beginners. I think it was Go, but by essentially colorizing different parts of the board according to whether they were good or bad moves to be taking in its estimation. If you're a sophisticated player, it probably wasn't terribly helpful, but if you're just a beginner, there's an interesting kind of a conditioning going on there. At least potentially a which lets you start to see. You get a feeling for immediate feedback from. And all that's happening there is that you're seeing a little bit into one of these machine learning algorithms and that's maybe helping you see the world in a slightly different way. DAVID: As I was preparing for this podcast, you've liked a lot to Brian Eno and his work. So I spent as much time reading Brian Eno, which I'm super happy that I went down those rabbit holes. But one of the things that he said that was really interesting, so he's one of the fathers of ambient music and he said that a lot of art and especially music, there will sort of be algorithms where you sort of create an algorithm that to the listener might even sound better than what a human would produce. And he said two things that were interesting. The first one is that you create an algorithm and then a bunch of different musical forms could flower out of that algorithm. And then also said that often the art that algorithms create is more appealing to the viewer. But it takes some time to get there. And had the creator just followed their intuition. They probably would have never gotten there. MICHAEL: It certainly seems like it might be true. And that's the whole sort of interesting thing with that kind of computer-generated music is to, I think the creators of it often don't know where they're gonna end up. To be honest, I think my favorite music is all still by human composers. I do enjoy performances by people who live code. There's something really spectacular about that. So there are people who, they will set up the computer and hook it up to speakers and they will hook the text editor up to a projector and they'll have essentially usually a modified form of the programming language list a or people use a few different systems I guess. And they will write a program which producers music onstage and they'll just do it in real time and you know, it starts out sounding terrible of course. And that lasts for about 20 seconds and by about sort of 30 or 40 seconds in, already it's approaching the limits of complex, interesting music and I think even if you don't really have a clue what they're doing as they program, there's still something really hypnotic and interesting about watching them actually go through this process of creating music sort of both before your eyes and before your ears. It's a really interesting creative experience and sometimes quite beautiful. I think I suspect that if I just heard one of those pieces separately, I probably wouldn't do so much for me, but actually having a done in real time and sort of seeing the process of creation, it really changes the experience and makes it very, very interesting. And sometimes, I mean, sometimes it's just beautiful. That's the good moment, right? When clearly the person doing it has something beautiful happen. You feel something beautiful happen and everybody else around you feel something beautiful and spontaneous. It's just happened. That's quite a remarkable experience. Something really interesting is happening with the computer. It's not something that was anticipated by the creator. It arose out of an interaction between them and their machine. And it is actually beautiful. DAVID: Absolutely. Sort of on a similar vein, there's a song called Speed of Life by Dirty South. So I really liked electronic music, but what he does is he constructs a symphony, but he goes one layer at a time. It's about eight and a half minute song and he just goes layer after layer, after layer, after layer. And what's really cool about listening to it is you appreciate the depth of a piece of music that you would never be able to appreciate if you didn't have that. And also by being able to listen to it over and over again. Because before we had recording, you would only hear a certain piece of music live and one time. And so there are new forms that are bursting out of now because we listen to songs so often. MICHAEL: It's interesting to think, there's a sort of a history to that as well. If you go back, essentially modern systems for recording music, if you go back much more than a thousand years. And we didn't really have them. There's a multi-thousand-year history of recorded music. But a lot of the early technology was lost and it wasn't until sort of I think the eighth, ninth century that people started to do it again. But we didn't get all the way to button sheet music overnight. There was a whole lot of different inventions. For instance, the early representations didn't show absolute pitch. They didn't show the duration of the note. Those were ideas that had to be invented. So in I think it was 1026, somebody introduced the idea of actually showing a scale where you can have absolute pitch. And then a century or two after that, Franco of Cologne had the idea of representing duration. And so they said like tiny little things, but then you start to think about, well, what does that mean for the ability to compose music? It means now that actually, you can start to compose pieces, which for many, many, many different instruments. So you start to get the ability to have orchestral music. So you go from being able to basically you have to kind of instruct small groups of players that's the best you can hope to do and get them to practice together and whatever. So maybe you can do something like a piece for a relatively small number of people, but it's very hard to do something for an 80 piece orchestra. Right? So all of a sudden that kind of amazing orchestral music I think becomes possible. And then, you know, we're sort of in version 2.0 of that now where of course you can lay a thousand tracks on top of one another if you want. You get ideas like micropolyphony. And these things where you look at the score and it's just incredible, there are 10,000 notes in 10 seconds. DAVID: Well, to your point I was at a tea house in Berkeley on Monday right by UC Berkeley's campus and the people next to me, they were debating the musical notes that they were looking at but not listening to the music and it was evident that they both had such a clear ability to listen to music without even listening to it, that they could write the notes together and have this discussion and it was somebody who doesn't know so much about music. It was really impressive. MICHAEL: That sounds like a very interesting conversation. DAVID: I think it was. So one thing that I'm interested in and that sort of have this dream of, is I have a lot of friends in New York who do data visualization and sort of two things parallel. I have this vision of like remember the Harry Potter book where the newspaper comes alive and it becomes like a rich dynamic medium. So I have that compared with some immersive world that you can walk through and be able to like touch and move around data and I actually think there's some cool opportunities there and whatnot. But in terms of thinking about the future of being able to visualize numbers and the way that things change and whatnot. MICHAEL: I think it's a really complicated question like it actually needs to be broken down. So one thing, for example, I think it's one of the most interesting things you can do with computers. Lots of people never really get much experience playing with models and yet it's possible to do this. Now, basically, you can start to build very simple models. The example that a lot of people do get that they didn't use to get, is spreadsheets. So, you can sort of create a spreadsheet that is a simple model of your company or some organization or a country or of whatever. And the interesting thing about the spreadsheet is really that you can play with it. And it sort of, it's reactive in this interesting way. Anybody who spends as much time with spreadsheets is they start to build up hypotheses, oh, what would happen if I changed this number over here? How would it affect my bottom line? How would it affect the GDP of the country? How would it affect this? How would it affect that? And you know, as you kind of use it, you start to introduce, you start to make your model more complicated. If you're modeling some kind of a factory yet maybe you start to say, well, what would be the effect if a carbon tax was introduced? So you introduce some new column into the spreadsheet or maybe several extra columns into the spreadsheet and you start to ask questions, well, what would the structure of the carbon tax be? What would help you know, all these sorts of what if questions. And you start very incrementally to build up models. So this experience, of course, so many people take for granted. It was not an experience that almost anybody in the world had say 20 or 30 years ago. Well, spreadsheets data about 1980 or so, but this is certainly an experience that was extremely rare prior to 1980 and it's become a relatively common, but it hasn't made its way out into mass media. We don't as part of our everyday lives or the great majority of people don't have this experience of just exploring models. And I think it's one of the most interesting things which particularly the New York Times and to some extent some of the other newsrooms have done is they've started in a small way to build these models into the news reading experience. So, in particular, the data visualization team at the New York Times, people like Amanda Cox and others have done this really interesting thing where you start to get some of these models. You might have seen, for example, in the last few elections. They've built this very interesting model showing basically if you can sort of make choices about how different states will vote. So if such and such votes for Trump, what are Hillary's chances of winning the election. And you may have seen they have this sort of amazing interactive visualization of it where you can just go through and you can sort of look at the key swing states, what happens if Pennsylvania votes for so and so what happens if Florida does? And that's an example where they've built an enormous amount of sort of pulling information into this model and then you can play with it to build up some sort of understanding. And I mean, it's a very simple example. I certainly think that you know, normatively, we're not there yet. We don't actually have a shared understanding. There's very little shared language even around these models. You think about something like a map. A map is an incredibly sophisticated object, which however we will start learning from a very young age. And so we're actually really good at parsing them. We know if somebody shows us a map, how to engage, how to interpret it, how to use it. And if somebody just came from another planet, actually they need to learn all those things. How do you represent a road? How do you represent a shop on a map? How do you represent this or that, why do we know that up is north like that's a convention. All those kinds of things actually need to be learned and we learned them when we were small. With these kinds of things which the Times and other media outlets are trying to do, we lack all of that collective knowledge and so they're having to start from scratch and I think that over a couple of generations actually, they'll start to evolve a lot of conventions and people will start to take it for granted. But in a lot of contexts actually you're not just going to be given a narrative, you know, just going to be told sort of how some columnist thinks the world is. Instead, you'll actually expect to be given some kind of a model which you can play with. You can start to ask questions and sort of run your own hypotheses in much the same way as somebody who runs a business might actually set up a spreadsheet to model their business and ask interesting questions. It's not perfect. The model is certainly that the map is not the territory as they say, but it is nonetheless a different way of engaging rather than just having some expert tell you, oh, the world is this way. DAVID: I'm interested in sort of the shift from having media be predominantly static to dynamic, which the New York Times is a perfect example. They can tell stories on Newyorktimes.com that they can't tell in the newspaper that gets delivered to your doorstep. But what's really cool about spreadsheets that you're talking about is like when I use Excel, being able to go from numbers, so then different graphs and have the exact same data set, but some ways of visualizing that data totally clicked for me and sometimes nothing happens. MICHAEL: Sure. Yeah. And we're still in the early days of that too. There's so much sort of about literacy there. And I think so much about literacy is really about opportunity. People have been complaining essentially forever that the kids of today are not literate enough. But of course, once you actually provide people with the opportunity and a good reason to want to do something, then they can become very literate very quickly. I think basically going back to the rise of social media sort of 10 or 15 years ago, so Facebook around whatever, 2006, 2007 twitter a little bit later, and then all the other platforms which have come along since. They reward being a good writer. So all of a sudden a whole lot of people who normally wouldn't have necessarily been good writers are significantly more likely to become good writers. It depends on the platform. Certainly, Facebook is a relatively visual medium. Twitter probably helps. I think twitter and text messaging probably are actually good. Certainly, you're rewarded for being able to condense an awful lot into a small period. People complain that it's not good English, whatever that is. But I think I'm more interested in whether something is a virtuosic English than I am and whether or not it's grammatically correct. People are astonishingly good at that, but the same thing needs to start to happen with these kinds of models and with data visualizations and things like that. At the moment, you know, you have this priestly caste that makes a few of them and that's an interesting thing to be able to do, but it's not really part of the everyday experience of most people. It's an interesting question whether or not that's gonna change as it going to in the province of some small group of people, or will it actually become something that people just expect to be able to do? Spreadsheets are super interesting in that regard. They actually did. I think if you've talked to somebody in 1960 and said that by 2018, tens of millions of people around the world would be building sophisticated mathematical models as just part of their everyday life. It would've seemed absolutely ludicrous. But actually, that kind of model of literacy has become relatively common. I don't know whether we'll get to 8 billion people though. I think we probably will. DAVID: So when I was in high school I went to, what I like to say is the weirdest school in the weirdest city in America. I went to the weirdest high school in San Francisco and rather than teaching us math, they had us get in groups of three and four and they had us discover everything on our own. So we would have these things called problem sets and we would do about one a week and the teacher would come around and sort of help us every now and then. But the goal was really to get three or four people to think through every single problem. And they called it discovery-based learning, which you've also talked about too. So my question to you is we're really used to learning when the map is clear and it's clear what to do and you can sort of follow a set path, but you actually do the opposite. The map is unclear and you're actually trailblazing and charting new territory. What strategies do you have to sort of sense where to move? MICHAEL: There's sort of a precursor question which is how do you maintain your morale and the Robert Pirsig book, Zen and the Art of Motorcycle Maintenance. He proposes a university subject, gumptionology 101. Gumption is almost the most important quality that we have. The ability to keep going when things don't seem very good. And mostly that's about having ways of being playful and ways of essentially not running out of ideas. Some of that is about a very interesting tension between having, being ambitious in what you'd like to achieve, but also being very willing to sort of celebrate the tiniest, tiniest, tiniest successes. Suddenly a lot of creative people I know I think really struggle with that. They might be very good at celebrating tiny successes but not have that significant ambitions, but they might be extremely ambitious, but because they're so ambitious, if an idea doesn't look Nobel prize worthy, they're not particularly interested in it. You know, they struggle with just kind of the goofing around and they often feel pretty bad because of course most days you're not at your best, you don't actually have the greatest idea. So there's some interesting tension to manage there. There's really two different types of work. One is where you have a pretty good goal, you know what success looks like, right? But you may also be doing something that's more like problem discovery where you don't even know where you're going. Typically if you're going to compose a piece of music. Well, I'm not a composer, but certainly, my understanding from, from friends who are, is that they don't necessarily start out with a very clear idea of where they're going. Some composers do, but a lot, it's a process of discovery. Actually, a publisher once told me somebody who has published a lot of well-known books that she described one of her authors as a writing for discovery. Like he didn't know what his book was going to be about, he had a bunch of kind of vague ideas and the whole point of writing the book was to actually figure out what it was that he wanted to say, what problem was he really interested in. So we'd start with some very, very good ideas and they kind of get gradually refined. And it was very interesting. I really liked his books and it was interesting to see that. They looked like they'd been very carefully planned and he really knew what he was doing and she told me that no, he'd sort of come in and chat with her and be like, well, I'm sort of interested over here. And he'd have phrases and sort of ideas. But he didn't actually have a clear plan and then he'd get through this process of several years of gradually figuring out what it was that he wanted to say. And often the most significant themes wouldn't actually emerge until relatively late in that whole process. I asked another actually quite a well-known writer, I just bumped into when he was, he was reporting a story for a major magazine and I think he'd been working, he'd been reporting for two weeks, I think at that point. So just out interviewing people and whatever. And I said, how's it going? And he said, Oh yeah, pretty good. I said, what's your story about? He said, I don't know yet, which I thought was very interesting. He had a subject, he was following a person around. But he didn't actually know what his story was. DAVID: So the analogy that I have in my head as you're talking about this, it's like sculpture, right? Where you start maybe with a big thing of granite or whatnot, and slowly but surely you're carving the stone or whatnot and you're trying to come up with a form. But so often maybe it's the little details at the end that are so far removed from that piece of stone at the very beginning that make a sculpture exceptional. MICHAEL: Indeed. And you wonder what's going on. I haven't done sculpture. I've done a lot of writing and writing often feels so sometimes I know what I want to say. Those are the easy pieces to write, but more often it's writing for discovery and there you need to be very happy celebrating tiny improvements. I mean just fixing a word needs to be an event you actually enjoy, if not, the process will be an absolute nightmare. But then there's this sort of instinct where you realize, oh, that's a phrase that A: I should really refine and B: it might actually be the key to making this whole thing work and that seems to be a very instinctive kind of a process. Something that you, if you write enough, you start to get some sense of what actually works for you in those ways. The recognition is really hard. It's very tempting to just discount yourself. Like to not notice when you have a good phrase or something like that and sort of contrary wise sometimes to hang onto your darlings too long. You have the idea that you think it's about and it's actually wrong. DAVID: Why do you write and why do you choose the medium of writing to think through things sometimes? I know that you choose other ones as well. MICHAEL: Writing has this beautiful quality that you can improve your thoughts. That's really helpful. A friend of mine who makes very popular YouTube videos about mathematics has said to me that he doesn't really feel like people are learning much mathematics from them. Instead, it's almost a form of advertising like they get some sense of what it is. They know that it's very beautiful. They get excited. All those things are very important and matter a lot to him, but he believes that only a tiny, tiny number of people are actually really understanding much detail at all. There's actually a small group who have apparently do kind of. They have a way of processing video that lets them understand. DAVID: Also, I think you probably have to, with something like math, I've been trying to learn economics online and with something like math or economics that's a bit complex and difficult, you have to go back and re-watch and re-watch, but I think that there's a human tendency to want to watch more and more and more and it's hard to learn that way. You actually have to watch things again. MICHAEL: Absolutely. Totally. And you know, I have a friend who when he listens to podcasts, if he doesn't understand something, he, he rewinds it 30 seconds. But most people just don't have that discipline. Of course, you want to keep going. So I think the written word for most people is a little bit easier if they want to do that kind of detailed understanding. It's more random access to start with. It's easier to kind of skip around and to concentrate and say, well, I didn't really get that sentence. I'm going to think about it a little bit more, or yeah, I can see what's going to happen in those two or three paragraphs. I'll just very quickly skip through them. It's more built for that kind of detailed understanding, so you're getting really two very different experiences. In the case of the video, very often really what you're getting is principally an emotional experience with some bits and pieces of understanding tacked on with the written word. Often a lot of that emotion is stripped out, which makes can make it much harder to motivate yourself. You need that sort of emotional connection to the material, but it is actually, I think a great deal easier to understand sort of the details of it. There's a real kind of choice to be to be made. There's also the fact that people just seem to respond better to videos. If you want a large audience, you're probably better off making YouTube videos than you are publishing essays. DAVID: My last question to you, as somebody who admires your pace and speed of learning and what's been really fun about preparing for this podcast and come across your work is I really do feel like I've accessed a new perspective on the world which is really cool and I get excited probably most excited when I come across thinkers who don't think like anyone who I've come across before, so I'm asking to you first of all, how do you think about your learning process and what you consume and second of all, who have been the people and the ideas that have really formed the foundation of your thought? MICHAEL: A Kurt Vonnegut quote from his book, I think it's Cat's Cradle. He says, we become what we pretend to be, so you must be careful what we pretend to be and I think there's something closely analogously true, which is that we become what we pay attention to, so we should be careful what we pay attention to and that means being fairly careful how you curate your information diet. There's a lot of things. There's a lot of mistakes I've made. Paying attention to angry people is not very good. I think ideas like the filter bubble, for example, are actually bad ideas. And for the most part, it sounds virtuous to say, oh, I'm going to pay attention to people who disagree with me politically and whatever. Well, okay, there's a certain amount of truth to that. It's a good idea probably to pay attention to the very best arguments from the very best exponents of the other different political views. So sure, seek those people out, but you don't need to seek out the random person who has a different political view from you. And that's how most people actually interpret that kind of injunction. They, they're not looking for the very best alternate points of view. So that's something you need to be careful about. There's a whole lot of things like that I enjoy. So for example, I think one person, it's interesting on twitter to look, he's, he's no longer active but he's still following people is Marc Andreessen and I think he follows, it's like 18,000 people or something and it's really interesting just to look through the list of followers because it's all over the map and much of it I wouldn't find interesting at all, but you'll find the strangest corners people in sort of remote villages in India and people doing really interesting things in South Africa. Okay. So he's a venture capitalist but they're not connected to venture capital at all. So many of them, they're just doing interesting things all over the world and I wouldn't advocate doing the same thing. You kind of need to cultivate your own tastes and your own interests. But there's something very interesting about that sort of capitalist city of interests and curiosity about the world, which I think is probably very good for almost anybody to cultivate. I haven't really answered your question. DAVID: I do want to ask who were the people or the ideas or the areas of the world that have really shaped and inspired your thinking because I'm asking selfishly because I want to go down those rabbit holes. MICHAEL: Alright. A couple of people, Alan Kay and Doug Engelbart, who are two of the people who really developed the idea of what a computer might be. In the 1950's and 60's, people mostly thought computers were machines for solving mathematical problems, predicting the weather next week, computing artillery tables, doing these kinds of things. And they understood that actually there could be devices which humans would use for themselves to solve their own problems. That would be sort of almost personal prosthetics for the mind. They'd be new media. We could use to think with and a lot of their best ideas I think out there, there's still this kind of vision for the future. And if you look particularly at some of Alan Kay's talks, there's still a lot of interesting ideas there. DAVID: That the perspective is worth 80 IQ points. That's still true. MICHAEL: For example, the best way to predict the future is to invent it, right? He's actually, he's got a real gift for coming up with piddly little things, but there's also quite deep ideas. They're not two-year projects or five-year projects, they're thousand year projects or an entire civilization. And we're just getting started on them. I think that's true. Actually. It's in general, maybe that's an interesting variation question, which is, you know, what are the thousand year projects? A friend of mine, Cal Schroeder, who's a science fiction writer, has this term, The Project, which he uses to organize some of his thinking about science fictional civilizations. So The Project is whatever a civilization is currently doing, which possibly no member of the civilization is even aware of. So you might ask the question, what was the project for our planet in the 20th century? I think one plausible answer might be, for example, it was actually eliminating infectious diseases. You think about things like polio and smallpox and so many of these diseases were huge things at the start of the 20th century and they become much, much smaller by the end of the 20th century. Obviously AIDS is this terrible disease, but in fact, by historical comparison, even something like the Spanish flu, it's actually relatively small. I think it's several hundred million people it may have killed. Maybe that was actually the project for human civilization in the 20th century. I think it's interesting to think about those kinds of questions and sort of the, you know, where are the people who are sort of most connected to those? So I certainly think Doug Engelbart and Alan Kay. DAVID: Talk about Doug Engelbart, I know nothing about him. MICHAEL: So Engelbart is the person who I think more than anybody invented modern computing. He did this famous demo in 1968, 1969. It's often called the mother of all demos, in front of an audience of a thousand people I believe. Quite a while since I've watched it and it demonstrates a windowing system and what looks like a modern word processor, but it's not just a word processor. They're actually hooked up remotely to a person in another location and they're actually collaborating in real time. And it's the first public showing I believe of the mouse and of all these different sorts of ideas. And you look at other images of computers at the time and they're these giant machines with tapes and whatever. And here's this vision that looks a lot more like sort of Microsoft Windows and a than anything else. And it's got all these things like real-time collaboration between people in different locations that we really didn't have at scale until relatively recently. And he lays out a huge fraction of these ideas in 1962 in a paper he wrote then. But that paper is another one of these huge things. He's asking questions that you don't answer over two years or five years. You answer over a thousand years. I think it's Augmenting Human Intellect is the title of that paper. So he's certainly somebody else that I think is a very interesting thinker. There's something really interesting about the ability to ask an enormous question, but then actually to have other questions at every scale. So you know what to do in the next 10 minutes that will move you a little bit towar
David and Blair compare each other's competitiveness, and then offer some specific ways principals can actually collaborate with their competitors as a part of building beneficial business relationships. TRANSCRIPT BLAIR: David, today we're going to talk about how to crush your competition, is that right? DAVID: Instantly I got very excited about the concept, that's really not what we're going to talk about, but I love that idea. Oh my God, I'm just too competitive, but that's actually the opposite of what we're going to talk about I think, unless you want to switch it at the last minute. BLAIR: No, I was with a bunch of guys the other night, and had this little men's night retreat thing, and maybe more than half of them were entrepreneurs. One guy was winding down a business, and he was saying, "I'm not sure if I'm competitive enough to be in business." I didn't say anything, but I thought, I suppose that's vital for you to be competitive in your nature to succeed in business, would you agree with that? DAVID: Yes, I would, but there's something wrapped around competitiveness that is just as important to me, and that's risk-taking. BLAIR: Yeah. DAVID: It does seem like the two of those are related, that's why I quit doing a few things outside of work, because I realized I was not as competitive as some of the young fools that were willing to sacrifice their body, and I wasn't. It's not that my body is so precious, it shouldn't be sacrificed, it was more I was allergic to the pain. Yeah, there's something about competitiveness and risk-taking yeah, for sure. I'm competitive, do you think of yourself as competitive? BLAIR: I've measured my competitiveness and your competitiveness, and you're more competitive than I am. I'm as competitive as the average person, but the makeup of that competitiveness is a little bit skewed. You can break down competitiveness into different forms, so I think of myself as average competitiveness. DAVID: Okay, this is more about how do we tame or tamp down some of our competitiveness for our advantage, and for the advantage of the world really. BLAIR: You really want to talk about this idea of collaborating with your competitors, is that correct? DAVID: Right, yeah, and it's something I've learned in my own business life, but I've also tried to coach my clients to do it as well. It's been really interesting, it's a concept that strikes us like, did he really just say you should be more collaborative with your competitors, or did I mishear him? No, that's really what I mean. BLAIR: Okay, so we think of being in business just like my friend said the other night, we think of it as business is highly competitive, and we need to be cutthroat, and we need to always have an eye on our competition. We're trying to best them, I'm fond of saying that positioning is an act of relativity. You position relative to your competition, and in endeavoring to position your firm against your competition, you're trying to kill them. BLAIR: Now that's an overstatement, but that's the prevailing view, right? The competitors are there, people that ... It's your job to beat, it's your job to win against them, and you want to fly in the face of that a little bit, so where did this idea come from? DAVID: Well it's been rooted really in 20 plus years. I did something a little crazy back in the late 90s. I wanted to start an event, and that was obvious to me, I wanted to start an event. Okay, so what kind of an event would it be? Well it needs to be an event that's going to attract a lot of people. How do we do that? Well, the content has to be fantastic, it's like okay, then I just stopped in my tracks, because I'm thinking, well if the content's going to be great, then I've got to invite a lot of my competitors there. DAVID: We don't see eye to eye on everything, but I need to have them there, because they're very smart. People are going to come and want to hear from them as well, like what kind of a stupid conference would it be where I'm the only one speaking? That's not a conference, that's like your own personal platform. I was faced with a decision, do I really want to give my competitors a platform? DAVID: I was nervous about it, other people were a lot more nervous about it than I was, they thought I was crazy to be doing that. I thought, this is a worthwhile experiment, and maybe there's some value in being the person who organizes the conference, and does the programming for it. There turned out to be that value, but it was a wonderful experience. It opened up my eyes entirely to the fact that I don't have to make somebody else lose in order for me to win. DAVID: That I can let my guard down, and it actually translated into the way I run events now. People come to an event for the first time, and they're surprised that within about an hour, an hour and a half of the start of the event, people are starting to share stuff that they would not have thought they'd see themselves sharing at the beginning. They're much more transparent about it, and it's just sort of that style that I like to have, it fits with this notion of competitors. DAVID: Recently what struck me, and then I'll shut up for a minute, because I know I'm taking a long time to answer your question. I was listening to the Dan Patrick daily talk radio sports show, and he was talking about interviewing Kobe Bryant one time. They were talking about how do you get yourself up for a game that doesn't really matter? In other words, maybe you're out of the playoffs already, or you know you're going to beat this team, because they're not good. DAVID: What Kobe Bryant said, was at the end of the game, I want my competitor to question why they even got into the sports game. I want them to question why they even became a basketball player, right? I thought, well that's kind of funny, but it's really not the kind of spirit I want as a collaborator. BLAIR: Even when he's playing in a game that they're almost certain to win in, he's still thinking about crushing the spirit of his competitors. DAVID: Right, yeah, what's the point of that? BLAIR: Do you still have a page on your website that lists your competitors? DAVID: I do, right? I do. BLAIR: Am I on there? DAVID: I don't know, I know you don't want to be, so let's just say you're not. BLAIR: Yeah, I think you had me on there, and I called you out, I said, get me off that list. DAVID: Right. BLAIR: I don't know why that is, okay, so you conceived of this idea, this event, and you had a partner in this event, can we name the event? DAVID: Yeah, it's MYOB, Mind Your Own Business. BLAIR: Yeah. DAVID: The how people, were the financial partners and the marketing partners, and I did the programming. BLAIR: That's where you and I first met in 2003. I reached out to you when I started my business somewhere in 2002, and you invited me to speak at this thing. DAVID: Yeah, and look at how much good has come from that, right? BLAIR: Yeah. DAVID: You and I have become friends, we do a podcast together, we share a lot of clients. Here's the biggest thing, I learned so much by having you there. I mean the very first time I heard you speak, I learned so much. It made me such a better advisor, and the same could be said of the other folks, not everybody, but most of the other folks that I invited. It's like, oh wow, it made me a much better advisor by listening to them in that kind of a setting. BLAIR: Let's walk through how somebody can, once they get their head around this idea, how they can put it into practice. First, I can imagine what the objections are, right? When you're talking to somebody about this idea of be more open to your competitors and collaborative with them, what's the first thing that comes up objection wise? DAVID: Well it comes up a lot too, and it's like, "Oh, that's a good idea, but I can't put that on my website, because what if my competitor's see it?" It may be something like our new focus, that's usually not as big an issue, but things like client criteria, or some unique way we have of going about solving problems for clients, or a case study, or something like that. They envision these competitors in the wee hours of the morning sneaking onto their website and furiously copping things down and grabbing screenshots, and then reinventing their own firm, as if they're really doing that. DAVID: That's the objection, I don't want my competitors to see that. I don't want them to copy me. Do you hear that, or do you see it in other ways? I'm curious if it's just my clients. BLAIR: I'm not sure if I hear it a lot, but I sense it a lot, and I've experienced it myself too. My own experience has been, if you're really carving out a path of leadership in something, it means you're constantly, by the reinventing your business, or coming up with new IP, with new ideas, and by the time somebody's adopted something that you've ... Let's call it stolen, stolen something that you've put on your website and made it their own, you should be somewhere else, right? You should be off into the distance. DAVID: Right, and that's part of your practice, part of my practice, part of what we urge clients to do is to reinvent themselves frequently every couple of years maybe. While this may work beautifully for you now, it's not going to be the thing that you're doing down the road, reinventing. Let's talk about the whole positioning thing, how many competitors does Win Without Pitching have? BLAIR: It really depends on how you frame the question. If you look at sales training for creative professionals, I don't actually know of any other organization that frames their value proposition, the discipline in the market, the combination of discipline in the market that way. That would be ridiculous for me to say there's no direct competitor, so that's at the very narrowest, who else says we just do sales training for creative professionals? DAVID: Right. BLAIR: Our real competition is any new business consultant to the creative professions. DAVID: Right. BLAIR: Anybody who's selling sales training. Most sales trainers aren't specific to a market, so anybody in the sales training business, any new business consultant. DAVID: If somebody popped up, let's say you just heard through a client of yours or something, and they said, "Hey, have you seen [inaudible 00:09:14], it looks a lot like yours?" Pretend that you have this conversation with them, and you look at the website. It is the same positioning, sales training for creative professionals, or creative entrepreneurs, what would your reaction be? BLAIR: My reaction would be, I would gird myself for a fight in the most positive sort of way. I love a challenge, if somebody was using that same language, I would just steel myself and whip my team into a frenzy, and run out into the battlefield. DAVID: I'm picturing this movie scene, yelling to this guy. BLAIR: Yeah, Braveheart. DAVID: Right. BLAIR: Somebody would have to be using very specific language, very specific to me. One of the things that I've seen over the last few years, is when I started my business back in 2002, when I was a new business consultant, there were very few new business consultants. Whoever was out there, the Internet was still a relatively new thing, right? Web browsers were about seven or eight years old in 2002. BLAIR: If there was a lot of competitors out there, I wasn't aware of them, I was really aware of two or three. Nowadays there's rarely a week or a two week period that goes by where I'm not made aware of a new business consultant. I made this conscious decision a couple of years ago to just quit thinking about them as competitors, and just to think about them as my future distribution network. BLAIR: I recently put out a call on LinkedIn saying I want to forge a closer relationship with the world's best new business consultants. I know I met a lot of consultants out there who say, "I give your book, the Win Without Pitching Manifesto to all of my clients." What I said in this post on LinkedIn, I had about 30 inquiries from it, is if you're already preaching the principles, and if you're already teaching the Win Without Pitching way, and you're interested in formalizing the relationship, then reach out to me. BLAIR: I had to see somebody else doing that, and somebody else talk about the benefit of it just the way that you're doing it now. DAVID: Yeah. BLAIR: For me to just have this switch in my mind. You've been very good at this, and you've been a very good role model for me in this, in being a generous competitor, and it hasn't been in my nature. I'm the person who loves a fight, so something has shifted in me in the last couple of years, and I look around at the people I know in business, and some people that you and I both compete with. They are such open, generous, sharing people, even though we are fairly direct competitors. DAVID: Right. BLAIR: I've just decided that these are going to be my role models in that front too. Now, I'm mellowing in my old age or something, because something's definitely changed. DAVID: Yeah, it is really interesting to see. I'm doing an event shortly, and I've invited ... You'll be speaking there, it's really important to me that you speak there to address the whole sales training process. I'm just unqualified to even speak to it, but I feel like the people coming need to hear that. Then, I think four of my competitors will be there. They won't have a platform, but I will introduce them, they're coming for free. DAVID: I invited them, and I plan to put in the work. We're going to split up into groups, and we're going to try to apply these positioning principles to the individual firms. These competitors know what they're doing, and so the evil side of somebody might hear that and say, "Well, wouldn't someone just hire one of these." It's like, well that's fine, because in my mind feeling like you have all these competitors is really misunderstanding the fact that it's not just about what you do, but it's about how you do it. DAVID: I have a very specific style, and whenever I try to cross the line and be somebody that I'm not to a client, like more of a coach or something like that, I am doing a disservice to them, and I'm doing a disservice to me. I find it really wonderful to have these other folks who are very good at what they do, who have a more appropriate style for a certain client. When I think about living in a world where I couldn't recommend other options for my clients, it's a little bit sadder to me, because I do want my clients to get help, even if it's not with me. DAVID: Now what's interesting though, is we have different approaches to this when we're not as busy. BLAIR: Yeah. DAVID: We tend to be a little bit less generous when our businesses aren't run well, when we don't have a steady stream of opportunity. That's just another argument of 100 arguments to run your firm well, so that you're not paralyzed by not enough work, or thinner margins, or something like that. BLAIR: I was going to play devils advocate here a little bit, and push back and say, well it's easy for you to be magnanimous this way, you're the worldwide leader in your field. You've got all the work you want, I think most people from the outside looking in would see that, so it's easy for you to just say, "Well there's plenty for everyone." If you're running an independent creative firm, you've got a dozen people, you're not seen as meaningfully different, do you think the principle still applies? DAVID: No, I don't, and I think the solution there is to have a positioning where it's so much clearer to you and to your prospects where you're a perfect fit. If you haven't nailed that positioning equation yet for your firm, then I think this is a very dangerous thing to do, right? Now you could still be generous in some other ways, like you could be generous in sharing contractors with other agencies, or even some employees. In terms of clients, I think that would be a dangerous thing to do, if you haven't ... DAVID: Well, a couple of things, not just positioning, but also having this lead generation process in place. You and I have talked quite a bit about this, how we have a simplified plan that's driven by discipline, so if you don't have the positioning and lead generation in place, then it's a pretty dangerous thing to be this magnanimous. The way to fix that is not to be selfish, the way to fix this is to fix your positioning and lead generation. BLAIR: Do you find that your generosity towards your competitors is returned? Are you referred business or other similar invitations from these competitors? DAVID: In some cases I am for sure. I think about Tim Williams for instance who I think does really good work. I've sent work his way, he's sent work my way for sure. I think about Carl Sachs, I think about the folks at Newfangled. I think about Philip at the Consulting Pipeline podcast. I think about Drew McClellan, I hate mentioning names, because there's going to be a bunch of names I've left off, but in general yes, absolutely. DAVID: Even at the beginning where they're taken aback by the generosity, they'll soften up over a few years, and discover that it's real. I'm really trying to help them, I'm not trying to hurt them. That started years ago, like you write a new book, or you have a new program, tell all your competitors about it in a gracious, respectful way. Hey, this is where I'm headed, just want to let you know, and oh by the way, here's a copy of the book, hope you're doing well. DAVID: You see an article that's really helpful that would benefit them, you send it to them. I tell you, a big one is speaking engagements. BLAIR: Yeah. DAVID: If I've been on the platform somewhere, and I talk with the program person, I say, "Listen, this was fantastic, I loved this event. I appreciate you inviting me, do you want a couple of suggestions for people who are also would be a really good fit for this?" That's a perfect opportunity to extend that graciousness to one of your competitors. I find that you're not hurting yourself in any way, you're simply helping everybody in the process. DAVID: I've found that to be very effective, and I've had a lot of my competitors do the same for me, where they've introduced me to a speaking opportunity, and it's been very, very much appreciated. BLAIR: A guy I know who does over a million dollars a year in speaking fees said to me, the number one lead source for speaking engagements is other speakers, right? They get approached and say, "Well, I can't do it, but you might want to think of this other person." He said it's important for you to cultivate relationships with these other speakers, and that means you start referring speaking opportunities to them. DAVID: That's interesting. BLAIR: Two weeks later I was invited to speak in Dubai when I was in another part of the world, and I referred to my new friend. DAVID: Yeah, because you didn't want that long travel, yeah, absolutely. BLAIR: Let's talk about some specific ways agency principals can collaborate with their competitors. I think I've got a list here of some things that you've identified. At the top of the list you've got learn how to run your firm from each other. Do you want to unpack ... Oh, I just said the word unpack, do you want to peal that apart? DAVID: That even sounds more pretentious than unpack. BLAIR: Like an orange. DAVID: Let's just say unpack, okay? BLAIR: Yeah. DAVID: Yeah, what's the possible benefit in not helping another principal run their firm well? Hoping that they'll fail? Well, that seems pretty evil, right? The one area where it seems like there's the most benefit for everybody, is to learn how to run your business well. You've learned some principles about key metrics you want to look at, or how to hire the right person, or how to run a meeting better, or how to have the best relationship with your bank, or there's 100 things we could list there. DAVID: Those are the kinds of things that I would put at the top the list, because nobody enters this field with the business management training that would really benefit them. They're all starting from some other skill path, not a role path, and so they come into the business, and they have to learn everything either from somebody that they worked for, and often that's the best place to learn it. DAVID: A great example of a principal that you worked for before you started off on your own, or they learn it from maybe an advisor, like a paid advisor, or maybe they learn it from another principal. That would be the first area I would suggest collaboration, it could be informal or formal. I find that most principals have three or four people that they're friendly with, they can just shoot them an email, or get on the phone and say, "Hey, I'm facing this noncompete situation, what have you learned? Can you introduce me to a lawyer?" Something like that. BLAIR: Oh, that's great, including on here help find good employees. I was thinking about there's an agency principal in Australia you and I both know him. I've done a bunch of work with him. He's told me some stories of when he's had to fire people, they don't say fire in Australia or UK, they sack them, which always sounds extra harsh to us in North America. He's told me stories of he'd bring somebody in who isn't working out, and says, "You're not working out, I'm letting you go, but I think you've got great skills in these other areas, so I've lined up two interviews for you today." DAVID: Wow. BLAIR: Yeah, so he's ruthless when it comes to correcting hiring decisions, but he's very kind in how he goes about it, and he recognizes that everybody's got strengths, and he's got good relationships with his competitors. He's very clear about why he's letting that person go, and why he thinks his competitors should think about bringing that person on, and usually in a different role. DAVID: Right, yeah I think that's great, like if it's for the right reasons, there could be something about the style of this firm that wouldn't be true of another firm. It's not like they're a bad person, they're just not a good fit for this particular role. BLAIR: Is there a line that there's the danger of crossing? The first word I wrote down when you sent me notes on this was collusion. DAVID: Yeah. BLAIR: At some point can you get too close to your competitors? Does it cause some sort of problem, or the perception of problems maybe among clients, or maybe even regulators? DAVID: Yeah, well in the US that would fall under the jurisdiction of the FTC, Federal Trade Commission. Where collusion is very clear, and you can get your hand slapped pretty quickly would be around pricing. BLAIR: Yeah. DAVID: Not so much which opportunities to pursue, although you could get in trouble there, like hey, if I don't pursue this one, can you not pursue that one, that would be collusion. The main area would be on pricing, like how about what's your price on this? There have been some specific lawsuits, the handbook of pricing and ethical guidelines was one example that had to get rewritten, because of a lawsuit as I understand it. DAVID: That strikes me as evil, and I don't think we're talking about that so much. It's more like here's an example, so let's say you're going to respond to an RFP, okay? I know, don't shriek on me here Blair. You're going to respond to an RFP, and you know that another agency has been through an RFP process with them. You might just call them up and say, "Hey, what was that like? Is this even worth it?" Most of the time it's not going to be worth it, but that would not be collusion, that would just be simply sharing public information. BLAIR: I hadn't heard the story around pricing, I was doing a talk on pricing about 18 months ago to an industry group slightly tangential to the creative professions. There was a lawyer in the room, and he kept warning about collusion, he did not like the idea that the competitors were in the same room talking about pricing. I thought he was being ridiculous. DAVID: I think he was being ridiculous, where it can be collusion, is if we're talking about a specific instance. It's not about for instance, the labor law allows you to band together against a common enemy so to speak, that's not collusion. Collusion would be a specific instance related to pricing usually. BLAIR: Gotcha, all right, so let's say somebody's listening to this, and they're warming up to the idea of being more collaborative with their competitors, but they don't currently have relationships with those competitors. How do they go about it? Where do they find these people? Maybe they're so highly specialized, or poorly specialized, they're just not sure who their competitors are, how do you go about it? DAVID: Yeah, if you're poorly positioned, most of your competitors are the ones in your locale geographically. You know those, because they're there, and you share employees, and so on. If you're well-positioned, your competitors are more known to you, even though they're not close to you geographically. These are the names that keep coming up when you are competing for work and so on. DAVID: That would be one way to identify them, obviously Google's our friend here. Another way to identify them, is going to trade conferences. Trade conferences are almost always vertical, or they could be more demographic oriented conferences, horizontal conferences, where you keep seeing the same people there, not so much exhibiting, but you just see them there, they're speaking and so on. DAVID: You notice that these are the folks whose articles are appearing in the same places that yours are, so just connecting with them through your contacts, within a particular focus would be a good way to connect with them. Another might be a common mentor, I get this question a lot, like do you know of somebody that's doing this that I could talk with and so on? I don't connect people who aren't clients of mine, but if they are clients of mine, then I'll try to find somebody to connect them with. DAVID: I actually put round tables together, which are specific attempts to do this, that's not really the subject of this podcast, but that's an example of what a paid advisor might do. Sometimes a common mentor, so like if you're getting advice from an older woman or gentleman in your town who's coaching you on running a good creative business, because they've been in that field, and they've slowed down a little bit, they usually are going to know somebody else that would be a good fit for you. DAVID: I am talking about cooperating with folks who are definitely otherwise competitors of yours. I'm not talking about people that you might meet in a YEO, or YO kind of a context, I'm talking about people that you'd compete with normally. BLAIR: Okay, are there instances where this can go wrong? Obviously, I wouldn't ask you to name names, but I'm sure there has to be situations where you started being magnanimous towards a competitor, and then at some point realized this is a one-way relationship where this person is taking and not giving, and your idea about them ended up changing. DAVID: For sure, yeah, I can think of an attorney actually in New York that I was referring lots of work too, and it turned out that not only did they never share generously, but they kept asking, kept asking, and it became annoying. I just basically shut them down, they still do good work, so I haven't done anything to hurt them at all. If somebody is actually out to hurt me, then we come into the Kobe Bryant crush them phase, which is actually the evil side of this, and it's kind of fun. DAVID: You have to do that once or twice a year, right? Otherwise, I was just wondering if people are still listening at this point. Otherwise, it just doesn't happen, because who are the people that are going to hear the worst things about me as an advisor? It's going to be my competitors, right? If my competitors hear about me, but their experience in working with me is not at all matching, they're going to pause the conversation and say, even just to themselves, you must not be a good client, because that's not how I've experienced him. There's so many advantages here to make this work well. BLAIR: Yeah, it strikes me as this is going sound a bit corny, it's a bit like love though, right? The more you give, the more you get, and the more open you are, and more gracious you are with your competitors, the more likely you are to get back. Even if it's not a full reciprocation, there's still that feeling of you helping others, of yourself worth, etc., it's got to escalate. DAVID: Yeah, for sure, and there are many times when somebody does great work, and you've sent them lots of work, but they're not sending you work. That's okay, because they might be at a different place on the referral chain. In other words, by the time they hear of a client, they're past their need for you, whatever you happen to do along that chain. DAVID: It can't be a tit-for-tat thing, it's really just about surrounding yourself with people who are generous in life in many ways. I find that, that's a very satisfying experience, almost regardless of the outcome. BLAIR: Well, you've convinced me, I'm going to start thinking about maybe referring a piece of business to you. DAVID: Yeah, it's about damn time honestly. BLAIR: Thanks David, this has been great. DAVID: Bye Blair.
Debbi Mack interviews crime fiction author David Swinson. To buy any of the books displayed, just click on the cover. The interview transcript is below, if you'd like to read it. Or download the PDF copy and read it later. Debbi: Hi! This is the Crime Cafe, your podcasting source of great crime, suspense and thriller writing. Before I introduce our guest, I'd like to remind you to check out the Crime Cafe story collections; a boxed set and a short story anthology. They're on my website, debbimack.com. Just click on the link “Crime Cafe” and you can get to the buy buttons there, as well as see our merchandise and other stuff that's cool, and subscribe buttons, of course, to the podcast. Also, get ready for our Patreon launch. I'm setting up an online community for supporters of the Crime Cafe and there will be great perks for anybody who contributes and exclusive content if you contribute at a certain level. It's not a very high level, either. So, it's monthly contributions and I would greatly appreciate your support for that. When that comes out, I'll let you know. In any case, without further ado, I would like to introduce my distinguished guest… David: Oh geez! Debbi: A really great author who writes wonderful crime fiction, David Swinson. David: Hi! Debbi: Hi, David. How's it going? David: Good, good. Debbi: Excellent. I met you online after reading, The Second Girl. I found a review, I can't remember where it was, but somewhere or other a review popped up for, The Second Girl and I was just captivated by it. Not only because it's set in D.C., which is, you know, I live near D.C., arguably Columbia is a suburb of D.C. David: Fairfax Station. Debbi: Yeah, but it was just such a wonderful story with a great protagonist. David: Thank you. Debbi: Now reading Crime Song, which is a stunning and wonderful follow up. It's excellent and I would like you to tell us more about Frank Marr and the series and how and why you developed this character. David: Well, Frank Marr … I think The Second Girl was published in May of 2016 and then Crime Song, June of 2017 and then the third book is not coming out until February 2019. But prior to 2016, I mean Frank Marr was in my head seriously for years, I mean a long time. And I had written a couple of other books prior to The Second Girl and they got rejected and they were police procedurals and then I went back to Frank and said, listen I'm just going to have fun. I'm going to do something that's so outside of me, and Frank Marr is totally outside of me. I mean, in certain ways I'd love to be like him. In certain ways I would not want to be like him at all. But nothing bothers him or affects him, I mean as far as like his habit and stuff like that. It's like he's almost blind to that kind of stuff. But I just sat down and had fun and wrote it, and when I gave it to my agent with the other two books I had written, she goes, “Are you sure you're done?” You know? And that's sort of like an indication, well, maybe I better go…but on this one she didn't say that. She just said, this is good and she did not send it out wide, she only sent…I wanted her to send it to an editor who had turned me down like two times, Josh Kendall at Little Brown in Mulholland and he ended up falling in love with it. But Frank…before Frank was a retired cop turned PI, he was an actual burglar. Not a cop, just a regular burglar that got involved in some PI work. But he was also a burglar and that's what, you know got him his money and stuff like that. But Frank Marr, he ended up changing and I made him a retired cop turned PI. It also used to take place in 1999, because that's really when MS-13 was really active with trying to recruit young girls and stuff like that in high schools and I agreed with my editor. I mean 1999…I wanted to really get away from all the social media, because I can't stand having to write about that stuff.
Last week the ALPS team gathered for a discussion about the company's vision this year and beyond. Afterwards Mark sat down with ALPS CEO, David Bell, to continue the conversation about vision and why it's imperative for every business, from a large corporation like GE to a solo law firm, to truly understand why they are doing what they are doing in order to give clarity to their vision and in turn, spark intentional action. ALPS In Brief, The ALPS Risk Management Podcast, is hosted by ALPS Risk Manager, Mark Bassingthwaighte. Transcript MARK: Hello, this is Mark Bassingthwaighte. I'm the Risk Manager here at ALPS. And welcome to another episode of ALPS in Brief. We're here at the historic Florence Building, in downtown Missoula. And I'm delighted to be able to introduce our guest this afternoon, David Bell, CEO of ALPS. David, can you take just a few moments and tell the audience a little bit about yourself, your background. DAVID: Sure Mark, thanks for including me in today's podcast. I've had the privilege of being at the helm of ALPS for almost six years. I've worked my entire career in the insurance industry, both domestically and abroad for small companies and large, and in some cases turning a small company into a large one. It's such a blessing and a privilege to have the opportunity in 2012 to come home to Montana, and also to take the leadership of ALPS. We've accomplished a lot of great things together since then. MARK: You sure have. David Bell: More importantly we have a lot of exciting things on the horizon for the company and for its people, and for its policyholders and stakeholders. MARK: Well let's talk about that a little bit. We had just a great meeting today, getting the company together and looking more long-term and developing some vision. Would you just take a couple moments to share your vision, what are we doing here at ALPS, where are we going? I'd love to share this with our listeners. DAVID: Sure. We're at an exciting inflection point for ALPS. Having changed our regulatory structure and begun to move into the states remaining that ALPS has not been in historically, and really take the value proposition that has made ALPS successful over the past 30 years, and double and triple down on that. Today's meeting that included everyone in the company in various offices from the east to the west coasts, really set the vision for us together on our culture, on our financial metrics, and what we're striving towards, and how we're measuring ourselves, and also really the why. The why we do this vision. Why we do this together, why we do this for our customers, and what we hope to accomplish with all of the hours that we spend together, growing in the same direction and fighting for the same goal. MARK: I've been with the company now, 20 years. It's just been such an exciting time in recent years, to see the growth and the direction ALPS is moving in. And I'd kind of like to pivot the conversation, just a little bit and look at the value of vision for businesses in general, to include solo and small firms. In my experience, in terms of doing some consulting risk management, vis-à-vis, these kinds of things over the year. At times, you do find attorneys, for lack of a better description, sort of spinning their wheels, and there's not a lot of growth. I would just be interested in your comments in terms of the value of vision to helping a lawyer move forward, and in the context of any business. There's nothing magical about vision, whether it's GE or a small solo. Do you see where I'm going? Your thoughts, your comments. DAVID: Sure. Well I think one of the reasons why we had the meeting we had today, coming off of a fantastic year in 2017, was, I felt frankly wanting at the end of '17 in messaging our accomplishments. But yet I'm recognizing that we close a year where we have the highest and first in almost every category, the highest revenue ever, the highest surplus ever, one of the lowest claim frequencies ever. The business is as healthy and vibrant as its ever been, and it's three decades. But yet, I felt like the year-end wrap-up of accomplishments was missing something, and I feel, and this is where I'm accountable, that what it was missing was some clarity and vision beyond the budget. Did we beat budget, did we not beat budget, right? That is a component piece of a plan, and part of a vision, but it's not the vision itself. Nor is a mission statement, or a several sentence tag line that identifies your values. That's important, and we have that, but that's not the vision. The vision really comes down to the why we do what we do. And doing a little more than last year, a little more revenue, a little more profit, that's good, and it's necessary, but it's not the why. And if it is the why, it's frankly hard to seek inspiration over the long-term, if that is the why. And so today at ALPS, and I suspect the same is true within the story of a solo practitioner or a moderate or large size law firm. The why we do what we do, is as important as how effectively, ... how much money we make, in doing what we do. And so for us, the vision of why, really comes down to solving the problems for our customers. Doing it in a way that honors our core values. We write transparent, easy to read policies. We apply claims in a fair, honest, and transparent way, and we're proud of that. We can all look in the mirror knowing that we've both created and effectuated something that we can be proud of. But within these walls and the people that are working together, this is a giant relationship potpourri. Everybody is interacting, everybody comes from different life experiences. They have had accomplishments and they have been wounded in different ways, and they bring all of that in those experiences to work. And work, we're complicated people and when we put a lot of us together, we're exponentially more complicated. So reminding ourselves of the why we're doing what we're doing, becomes really important so that it's not just we did a dollar, now we've got to do two dollars. We're doing it for each other, we're doing it for a certain mission, and we can seek inspiration from that. And Ideally, what we come up with is something that makes us excited to do what we're doing. We don't do it for a job, we do it because we really enjoy it, and we enjoy the people we do it with. MARK: And I love that. That's just fantastic. Can you, sort of the last topic I'd like to explore with is, ... I'm a lawyer, so it's a hypo here, and I've come together with a few other lawyers, and we're starting a small firm here. We may have a couple employees, this kind of thing. Maybe we've been in practice for a year or so, and we're still struggling, just, again finding direction, finding success. And so we reach out to you just as, if you will, even just as a business consultant, and somebody who just has a tremendous amount of experience here. How would you, ... well David, I appreciate the value of vision, but how would I go about this in a small setting? Do you have some thoughts, or some general, just advice to the business side of this? Because I think lawyers spend a lot of time, ... we're taught how to practice law, and the education we have is a great education, but we're not taught how to run a business. There is this business aspect, this business side. And if we're not successful with the business of law, we're not, ... you see where I'm going? So do you have any thoughts to share on just a couple of day-to-day tips, how might I go about? DAVID: Well anybody who has a law firm is a better expert than I am at this, at the moment, on how to run a law firm. But I would suggest that like any business, as it pertains to lawyers and law firms, which is an industry we know quite well, and we see them succeed, and we see them fail. We see them dissolve, we see them merge, and we see them become phenomenally successful in a lot of cases. I do think that it is important that those who run a law firm, it doesn't matter whether it's a solo practitioner, or a 50-person firm, really thinks in isolation about, I am a legal practitioner, I strive for excellence in my understand and application of the law. That's critical, that's really hard to be a great lawyer in a law firm if that's not a commitment. I also separately, to your point Mark, separately, I also have a business. And that business needs to be run like a business, which means I need to be sensitive to the fact that my time is billable hours equals money. There's only so many hours in the day. There are both efficient ways to spend that time, and inefficient ways to spend the time. And if I don't take some time understanding the difference between the two, it will lean towards inefficient, and will become financially stressful for the business. So there is the legal practitioner of, and there is the business manager, and there also is the why. Because, why am I doing this? And the practice of law, is one of the most noble pursuits around. Different lawyers practice different types of law, and that are involved in different areas of law. But the fact that you are bringing your expertise to someone who doesn't have it themselves, and who would be disadvantaged, in some cases are literally lost without you, that's a great fiduciary responsibility that you're undertaking. There's a lot of inspiration that can be naturally born in the why of why I'm doing this, from that. But I suspect, and listeners can just reflect for themselves to what extent this might be true for their practice, that you do have to pursue the why intentionally, and pursue the most noble of the why option. MARK: I absolutely agree. In follow-up to that, is it important that, ... so again, I've got this small firm, they're three, four, five of us, whatever we have, is it important that each of us, as lawyers practicing in the firm, and perhaps to include our staff, does the why need to be uniform? Do we all need to have sort of a similar vision if the firm's going to succeed? Is that something you would encourage and advise? Do we sit down and have these kinds of conversations? Or is it more of a personal thing? Do you have any thoughts on that? DAVID: This is one guy's opinion, and I can't say that this is the right one. But my opinion is that you don't actually have to have the same why, with your contemporaries and colleagues in the firm. But I do think it is, the why needs to be known and discussed. And to the extent that there are differences, and in some cases there can be enormous strengths harnessed from different whys. As long as the whys are complementary. And as long as the whys are not in conflict, and that they can not just coexist, but that they can work off of each other. And so, I don't know that they need to be the same, I think it could be great if they are exactly the same, but I think it can also be great if they're not the same. But I don't think if can be great if it's just an unknown. An uncoordinated, every man or woman for him or herself, and we'll just see how it works out. If you want to just see how it works out, then you're not going to know how it's going to work out. MARK: Well this kind of circles back to what we were talking about earlier today. It seems to me there's this a difference in terms of having a vision and having clarity of vision. We, as business partners, if we all understand the whys of each other, and understand where we're trying to go, we can have some clarity of vision. And I think that lends itself to success in the business side. DAVID: And purpose. Success and purpose, where you wake up and say [crosstalk: 12:26]. MARK: Well yes, exactly. DAVID: We've said here before, we have a wonderful business and a noble profession. This is not, ... we aren't feeding kids in Africa and so the inspiration that can be garnered from that type of a business, isn't the same as this business. So you have to, ... so often, people wake up one day, and they lack meaning, or they lack purpose in life. And we should all guard ourselves against that. But we don't all have to be in this wonderful philanthropic non-profit profession in order to feed and fulfill that side of us. But if we aren't watching for it, then one day it will just confront us when we wake up. Whether the crisis actually happens in midlife, or happens at some other point, that's often times when the crisis comes personally. MARK: There's some food for thought. Listen David, it has been such a pleasure. I really appreciate your taking the time to visit with the listeners here on the podcast. And I hope at some point in future, we can get together again and explore some other topics. To those of you listening, thanks again. And please if any of you have any thoughts or ideas or things that you'd to hear in future podcasts, please don't hesitate to reach me at mbass@alpsnet.com. That's it, thanks for listening. Good bye.
When we launched The Copywriter Club Podcast, we made a list of copywriters we wanted to interview and the guest for episode 51, David Garfinkel, was at the top. Known as the World's Greatest Copywriting Coach, David is a world-class copywriter who regularly consults with clients like Agora Financial and GKIC along with several high-level copywriters to help improve the performance of their copy. During our interview, David talked about: • how he got his start as a copywriter • a “this will only work for me” method for finding your first project • the story behind his $40 million dollar sales letter • the mistakes he made as he was just starting his business • how he made the shift to coaching and what he does as a coach • the three things to look for in a copy coach • how to overcome objections with your copy • what mistakes he sees over and over again that you will want to avoid • the importance of “relevant credentials” when making any sale • when you should start coaching other writers • the two or three things to go from good to great as a writer Plus David talked about what his business looks like today and he shared details about the breakout hit song he wrote for the urology department at the University of California’s Centennial celebration. (This is stuff he hasn't even shared on his own podcast.) To hear it, you need to click the play button below, or scroll down to read a full transcript. The people and stuff we mentioned on the show: Sponsor: AirStory McGraw Hill World News Gary Halbert’s Newsletter Aaron Sorkin Barbara (Bloch) Stanny Jay Conrad Levinson Jim Camp KOLBE Copy Chief Breakthrough Copywriting Garfinkelcoaching.com Kevin Rogers Scientific Advertising The Billion Dollar Copywriter Peak by Anders Erickson Agora Financial Fast, Effective Copy Homespun.com David’s Facebook Page The Copywriters Podcast Kira’s website Rob’s website The Copywriter Club Facebook Group Intro: Content (for now) Outro: Gravity Full Transcript: The Copywriter Club Podcast is sponsored by Airstory, the writing platform for professional writers who want to get more done in half the time. Learn more at Airstory.co/club. Kira: What if you could hang out with seriously talented copywriters and other experts, ask them about their successes and failures, their work processes and their habits, then steal an idea or two to inspire your own work? That’s what Rob and I do every week at the Copywriter Club Podcast. Rob: You’re invited to join the club for episode 52 as we chat with the man who has been called the world’s greatest copywriting coach, David Garfinkel, about the lessons he’s learned coaching and working with so many copywriters, what it takes to be truly great as a copywriter, how his life away from copywriting makes him a better writer, and how to do an effective copy critique. Kira: David, welcome. David: Thank you. I’m glad to be here. Rob: Yeah, we’re excited to have you. Kira: It’s an honor to have you. Yeah, this is the highlight of my day. David: I know I’ve been looking forward to this for a while now. Kira: I feel like every time I think of you, David, I think of the beach because I listen to episode 13, Why Customers Buy, while I was running on the beach on vacation last month. I’m just happy anytime I hear your voice because it takes me back. David: Yeah. I think you mentioned that in an email to me. Which beach? Because I’m about six blocks from the Pacific Beach in San Francisco. Kira: Oh, this was Myrtle Beach. David: Oh. Yeah, I went there when I was in high school. I grew up in Maryland. We went there in the spring break or something. It was a very nice beach. Kira: Yeah, it was great. Rob: A great place to do some running, some copywriting learning. Kira: Exactly, yeah. David: Well, everyone has their own use for the beach. I think that’s a good one, frankly. Rob: Yeah, exactly. David,
David A. Duryea is business improvement veteran with more than thirty-two years of experience in practical business improvement and technology innovation. He has led more than sixty business improvement and innovation projects in sixteen different industries. As a legal expert witness for failed technology and business innovation projects, David has performed project forensics on failed implementations for over a dozen large-scale projects. A popular speaker on business improvement, he has been featured at Computerworld, InfoWorld, and industry conferences. His articles in the area of ERP (Enterprise Resource Planning) and advanced technology implementation practices have been featured. David holds a patent from the United States Patent Office, degrees in business administration and computer science, and an MBA with a focus in project management. David is happily married with seven children, four of whom were adopted from China. He and his family live near Cleveland, Ohio. When not studying the intricacies of business improvement, he enjoys hiking, bicycling, baseball, coaching, and investing time in activities with his children. His Business-Improvement Model Part 1: Business Strategy Structure Step 1 Understand the Law of Business Reality Organizations serve customers in a profitable way (balancequality and efficiency) or cease to exist. Step 2 Understand the Target—The Core Business Model Why organizations generate profit different from their competitors. Step 3 Influencers of the Core Business Model Pressure and Enhancers on Performance Step 4 Embrace Business Strategy and Structure Basis for Improvement—Whether Leaders Know It or Not Part 2: Business Process Structure Step 5 Common Processes and Functions of a Business Model The Law—Inherent to Process, Functions, and Operation Step 6 Industry Processes of a Business Model Developing Industry Common Process Structure Step 7 Core Business Model Processes Embrace for Uniqueness and Profitability Step 8 Business Processes Influencers Influencing Process Structure, Performance , and Profitability Step 9 The Business-Improvement Objective Change Operations to Further an Organization’s Core Business Model Step 10 Business and Operational Performance The Performance Goal—Core Business Model Productivity Step 11 True Operational Performance Measurement Measure the Goal: Core Business Model Productivity Part 3: Business Enablement Structure Step 12 Business Process Enablement: Resources to Realize the Core Business Model The Interview Transcript Interview with David Duryea Hugh Ballou: It’s Hugh Ballou again. My guest tonight is a man I met through another person, his publicist. We talked a little bit, and I discovered we had a lot of values in common and we do similar work. We are going to talk about David Duryea’s new book that is out. I have a copy of this book, and it’s really good. It’s 200 pages of really, really well-researched, well-written content. The book is called- I’m getting to the cover. I’ve started reading and I am deep down into it. The cover is a light bulb, and it says Do the Right Thing. My guest on this podcast is David Duryea. David, tell people a little bit about yourself and what inspired you to want to write this really great book Do the Right Thing. David Duryea: Well, first of all, Hugh, thanks for having me on again. It’s been a great conversation and connection with you as well. Basically, Do the Right Thing is doing the right thing in business improvement, including process and technology. I would have to say that I came up with the idea, or at least the inklings of the idea, somewhere around the late ‘90s, believe it or not, when we were in the heydays of putting in a lot of different technologies. Dot coms were coming up as well, and we were doing a lot of implementations. I also saw at the same time a very high failure rate. Some of my background is integrated in that. Not only have I been working in this industry for almost 32 years—I have done a lot of researches, I have been on over 60 different implementations and projects myself—I was also called on the courts to be an expert witness for failed projects. What that means is I was in project forensics. I would go in, figure out why the project died, what caused it, and where the bones were buried. I wrote the reports and submitted it to the courts. During that process, there was a lot of things that came to light. I saw a lot of different failures, and I also saw a lot of different reasons. What happened was all of those projects converged into a similar idea and concept. Those are the concepts I have highlighted in the book. I put a lot of these concepts into different phrases so people could really understand them and use them in their insightful way. The first thing was the law of business reality. The law of business reality is how an organization is created basically to serve their customers in a profitable way. The law says that if you don’t serve your customers in a profitable way, you will cease to exist. All organizations are under that principle, that law if you will. A core business model, which is a big part of the book, is a subset or derivative of the law of business reality. That is an organization serves its customer uniquely in its industry in a profitable way. Every organization needs to understand exactly why they are there, how they serve their customers, and how they do that in a profitable way. If you cannot serve your customers, and you cannot be profitable in some way, then you will cease to exist. Hugh: You say in the latter part of the book that “You understand how crucial it is to have a good understanding from the law of business reality to your organization’s own core business model to a sound, functional, and cost-effective enterprise establishment strategy. It is a cascading relationship that starts with the essence of the organization.” “It is a cascading relationship that starts with the essence of the organization.” That is a profound paragraph. David: Hugh, the core business model is what an organization is all about. It transcends all the mechanics and knowledge and things people want to do with their business. It is the heart of why you’re there. Very successful organizations have those. If you look around at the most successful what I would call start-ups or large organizations, like Apple, Netflix, FedEx, even Amazon right now. Amazon is really in the news right now with what it did with its acquisition that it’s impending on. They know exactly who they are, how they serve their customers, and the customers themselves know who they are and how they will serve them. When you have that essence, when you really understand yourself—you are not just going through the motions of “Hey, this is serving up a service or a product, and here you go,” but you really have that passion for it—then your organization emulates that as well. The connection point between the core business model of the organization, all of the operations that need to activate if you will your core business model, all of that is- In the book, it is described as three major pieces: your marketing and sales, your product or service development and delivery, and your administration to support those. All of those have different activities and processes that they need to go on. The essence is something that permeates all of those things. The core business model turns into core business processes, and then they also turn into core business enablement. And we discuss that all the way through the book so you understand when you buy a certain type of technology, if it doesn’t further your core business model, then you will have a real problem serving your customers in the way they want to be served. Just to give you a quick idea, Hugh: When we were doing implementations, one of the root causes of the failures was because they actually purchased software, which is called ERP software, that was really designed for a different industry than the industry they were in. For instance, this was a distribution company, and they bought software that was about manufacturing. Those were a mismatch; therefore, the software didn’t fit them real well. The project failed. In this case, the project failed, and it brought down the organization. It literally sent the company into chapter eleven. Hugh: Oh my goodness. You talk about that as well: “You can see the direct relationship of how it affects not only your business, but also every business. It’s the reality-based improvement that so many organizations seem to try to ignore or circumvent. Now that you have the insight to the misguided leadership styles, failed establishment initiatives, and disintegrated operational models that have led to failed projects and bankrupt companies, you in turn have the methods to directly drive your company to be one of the industry leaders.” How did you come to the essence of all of these moving parts? There are a lot of them, and you address all of them in the 200 pages of this book. I find it easy to grasp because it is laid out so cleanly. I hate books that are all just copy, but you have it laid out so it’s really easy to grasp the concepts visually, which means in my simple mind, I can internalize it. Tell me about your background of how you assimilated all of these components and put them together in this really good book. David: Because I was not only doing the implementations for business, but I was also doing forensics, I could see it from both ends. I was speaking not only to people that were in the operations side, but I was also speaking to the business side and boards of directors and investors. It gave me such a broad-based perspective of exactly every level of the organization and which level has an impact or influence on it. I also spoke to some customers. I also got the unique perspective of understanding how the customers looked from the outside in, and also from the management and leadership from the inside out. Because of that broad base or that holistic viewpoint I was able to glean out of so many different engagements, I was able to clearly put all of these concepts together, and also I saw how they all connected and they were all holistically and synergistically connected. Hugh: I like that word “synergy.” My company, as you may know, is called SynerVision. I took Synergy and Vision and put them together. As you may also know, I spent 40 years as a musical conductor. We create the culture of high performance, which we call ensemble. SynerVision is what resembles ensemble in a culture that is not a music culture. What you talked about, about your core model, I relate everything to the orchestra, the choir. There is a core model for how we function. It is a very high-performance model. You either cut it, or you don’t play. It’s a very high standard indeed. I’ve yet to find that kind of standard in any other organization that I work with, whether it’s a mid-cap organization or a smaller nonprofit. I don’t find that system anywhere. This core business model driving to higher performance, expand on that a little more, if you think there is some synergy with what I just talked about. David: Absolutely. I have been nowhere near the level of music talent that you’ve been, but I certainly have played an instrument. I was all the way through college in the marching bands. If you can’t play in tune, you’re out. You know it instantly when someone is out of tune. You’re always nudging the guy next to you and saying, “Hey, what is wrong with you?” In the same side of it, in the marching band, if someone isn’t in line, you know that, too. In fact, the whole audience sees that. The idea of the core business model is exactly what you said, Hugh. It actually is not only the essence, but it is also the goal. It gives you the idea of exactly what you need to do. As you say, you’re a conductor. Everybody in the orchestra needs to look at you. Everybody needs to know where they are in the music. Everybody needs to know what’s coming next. It’s the same thing as the core business model. Everybody understands what it is they are driving for. This is the model; this is the goal; this is what we need to do. They all know their places in the organization, whether it’s in the process of marketing/sales/service; administration; or service/product deliverability. They all know their individual roles, and they all know how they fit together so the whole operation runs at the same time. Believe me, Hugh, they know when the sales and marketing isn’t in sync with the product deliverability because someone is overselling the features or just the product itself, the features aren’t doing what they said they did, and it’s not in alignment with the core business model. All the way down to your attorneys. If your attorneys are not expressing the contracts they need to, it emulates who you are at a core business model. All of it together is either in sync or out of sync. And guess what? Your customer is going to know immediately. Hugh: That is so critical. Under your business improvement model on page 162 in your book, step one under part one of the Business Strategy Structure, Understanding the Law of Business, the footnote, the description underneath it is, “The organization serves customers in a profitable way (balance, quality, and efficiency) or cease to exist.” In the next one, Understand the Target of the Core Business Model: Why Organizations Generate Profit Differently from Their Competitors. We want to serve customers in a profitable way. It’s really the balance that is important. Talk a little bit more about those. We get off track. Some companies are so focused on profitability at the expense of the customer experience that it really hurts their company. Talk about this balance a little bit under the law of business. David: That’s a great point, Hugh. The whole idea of the core business model is about balance. You have to serve your customers, and you have to earn profits; otherwise, you are not sustainable as an organization. You cannot continue to serve your customers in the way they would like if you cannot make the profits that you need. At the same time, we know you have to earn some sort of profits not only to maintain but also to pay all of your expenses and to earn a little bit of investment. You have to have some investment; otherwise, you can’t be sustainable. At the same time, if you take advantage of your customer, or even basically take them for granted, I see that so often in businesses. Taking a customer for granted, that they are always going to be there. Well, because of the invent of all the things of social media, online purchasing, it will take you all but 30 seconds to lose a customer. In the book, I actually highlight the cost of losing customers and how that has an impact and how much of an impact on market share and things like that. You definitely do not want to take advantage of your customer, and you certainly don’t want to take them for granted. That takes a lot of effort and investment on the other side. You have to be efficient at serving that customer. If you are not efficient, you won’t be profitable enough to serve your customers in the way they expect. The balance is constant, where you are constantly trying to serve, constantly trying to be efficient, and constantly trying to do both at the same time. If you don’t keep that focus of constantly balancing, one of them is going to get out of balance, and then you are going to start to slide into unprofitable situations or you will lose market share and customers will run to a competitor who is serving them in the way they want. Either way, it’s going to slide the company into probably dissolution. Hugh: Absolutely. You should send a copy of this book to the major airlines. Let’s let that one slide. How does focusing on an organization’s core business model help drive higher performance? Going back to the musical analogy, to me, the core of who we are is our performance. It’s not the theory of what we do; it’s how we actually perform the day-to-day operations. We do make a profit because we provide value to our customers. How does focusing on this core business model drive higher performance? David: The first thing you want to do is understand why you are serving your customers, why they are coming to you. It’s not, “Hey, this is what we’re offering you. You need to come to us.” That’s not the way it works. The way it works is the customer says, “Hey, you’re serving me in the way I want. I like that, and you’re giving it to me for a fairly good price that I can work with.” The idea is the performance side of it is first you have to lay out how you are going to serve your customer. From that, there are processes and functions. You also need to enable those processes and functions. The number one enablement right now is technology, as everybody knows. Technology is a big deal. But the issue is now technology is extremely expensive. Furthermore, it can be complex to work with. The company needs to keep a very good focus as to what kind of technology they need and their own customer value. When you are driving in performance toward the back end of the book, I have actually laid out how you can measure the performance of the processes in something I call core business productivity. There is a way you can measure that and then compare that with a new operation you want to put in. That is a good way for most organizations to understand whether a new piece of technology, a new vendor, or even a third-party outsourcer—I am constantly being asked if we should keep something in-house, or should we give it to a third party? Remember this. Any time you take a particular function and move it outside of your organization, it is going to dilute your core business model because somebody else is doing it. If there is a way you can maintain that, then it’s fine. But most of the time, if you keep it in-house, you have total control, but it could be more expensive. So you are constantly balancing those pieces of how you are going to enable your process and your operations to perform it in a higher way. Performances can be measured in the core business model productivity. This helps you understand what keeps you in balance all the way through from the top part of the organization down to the lower ends, where you are actually in contact with your customers. Hugh: Productivity = F:E. Is that the shortened version of it? Core business productivity = Core business model functionality and efficiency performed. David: Yes. It’s basically functionality times efficiency. The reason why it’s laid out that way is that the functionality piece is the functions you want to perform for your customers. It’s literally what it is that needs to get done. The efficiency side is how efficient are you at performing those functions. That’s the balance. You have these functions that need to be done, and the efficiency, how well you are performing those functions. If you multiply those two together, then you get what is called productivity. If one goes out of balance, meaning you are not doing the functions you need to, then your productivity goes down. If you are not doing the functions efficiently, then your productivity goes down. See how those balances balance out? Hugh: Yes. What I was thinking is this ought to be mandatory reading for anybody starting a business. We get off track because we look at the existing models of ineffective, inefficient productivity and not really valuing the customer experience. I guess you are familiar with the Gallup poll that says 70% of employees are either disengaged or actively disengaged. David: Correct. Hugh: Which adds to negatively impacting their performance. David: Exactly. They are not- I’d love to be able to do some research on that to peel back the layers on the onion here and try to understand why that 70% exists. Why is it so persistent out there? I bet you those people are not connected to the organization’s core business model. They are not invested in what’s going on. They don’t seem to understand how they fit into the tonal model. Hugh: My experience is you’re spot-on. I do the people part of that. How do we integrate it into performance? It’s the culture piece that I work with. We call it leadership, but very few people understand leadership. What you are giving us is a solid framework to educate us on what it should look like and how we measure it. I am going back to if we are starting a business. A lot of people start a business, and many of them fail. Dunne and Bradstreet said 90% of entrepreneurs fail because they don’t have the skillset to run a business. They call it manage-to-manage. It’s leadership, and as John Maxwell says in The Law of the Lid, the organization can’t go any further than the leader’s ability to lead it. What you are giving in this book from what I have seen—and I have not digested it, it’s a lot of really useful content that I was not willing to rush through, but the parts that I have seen I resonate with a lot. Your listing of citations in the back, your attributions, you did a lot of research in addition to your own personal experience. So it’s not just you shootin’ from the hip. It’s well-thought out, well-researched. It took you five years to put this together, I believe you said. David: It took me five years to write it. Again, it was a part-time thing. But it probably took more like 15 years to actually be able to solidify and legitimize all of the concepts in the book itself. But yeah, it was pretty rigorous, but I wanted to be comprehensive. I wanted it to be something a business leader or someone in the trenches could pick up and say, “Okay, I understand this piece. I know how this works for me.” Like you said, it is step by step. It is like a handbook, but also something people can pick up and understand the concepts and how those concepts fit in their own organization. Hugh: I found that to be very true. What do you see as the major issues as to why organizations do not perform or projects that do not attain the target of performance? David: Well, I would say the biggest reason is the leadership really doesn’t understand their own core business model. This one, Hugh, was a big revelation for me. I even have a story in the book of how I sat down with a business leader and asked him the question, “So why do the customers buy from you?” And he said that I was the very first consultant that ever asked that question of him. He said many consultants come in and talk to him about all kinds of performance models and analytics and things like that, but I was the first one to ask him why the customer buys from them. Instinctively, he knew his core business model. It was a private organization, and a lot of private organizations know that instinctively. A lot of leaders and organizations do not understand their core business model, and they get into some ideas how they want to expand the company. They don’t even realize some of those initiatives go against their core business model. That is very problematic, and we have seen that a lot. The first thing is why do businesses or some project initiatives fail? That is because they don’t understand how those initiatives are going to affect their core business model. I would say the next thing is the companies don’t understand how their own products and services fit into their core business model. One of the great cases I would think of is the Apple computer. If you think of the history of the Apple computer and what they have been able to do, and they have changed a lot over the years, but what hasn’t changed is their core business model. People don’t even realize this, but they take technology and make it simple. That’s what they do. On top of that, they make it, if I will, cool. And that is how they have been able to add on all products, not just computers, but also their phones, their pads, their iPods. Everything they do is all about taking some technology and making it easy to use and then making it real fun. They really understand their products and services and how all of their products would fit inside their core business model. I would say another big one is the misnomer that technology will automatically further an organization’s core business model. Not necessarily. You have to get the right kind of technology. The next one is the big one I work with almost every day. That is innovation will automatically further an organization. Those two sound a little bit the same, but they’re not. There are all kinds of innovation that comes out, but sometimes organizations don’t necessarily mesh with the innovation itself. Here is the biggest one of all: Organizations that don’t even realize that their industry has been changed by innovation. They don’t grasp that. Hugh, that dovetails very much into what you do with leadership and the skills and things you are talking about. They didn’t have the skillset to realize what the impact of certain innovation is going to be on their organization and in their core business model. I see that a lot these days because these things are changing very well. Hugh: I agree with you. It’s partly that leaders don’t understand their role and the consequences of their actions. They think they have to be the boss. They have to make all the decisions rather than using the expertise around them. I bought a little camera store in Florida and grew it from $12,000 a year to $1.4 million and owned commercial photo in that part of central Florida over the years. I had five distinctly different Kodak dealerships. At that point, Kodak owned the imaging business. They were the big guy on the block. They totally ignored Fuji and the innovation of dealership. As you know, they ultimately went into bankruptcy. Now they are just a very different minimal player instead of a major player. The leadership was really blind to the status quo. This innovation thing can really distract you or not. It can kill you. That’s a huge point you just made. David: Exactly. Hugh: I’m curious: What instrument did you play? David: Trumpet. Hugh: Ah! I won’t tell you my trumpet player jokes because you will probably come back with conductor jokes. There is some synergy in the core business model and the orchestra; I want to use an orchestra because there are so many different kinds of distinct personalities. Brass players are very different from the woodwinds, for example, would you say? David: Absolutely. Hugh: So the leader nuances all of those, but your core business model is your culture, and your core business model is the structure, which is a very analytical, highly mathematical structure, which then provides the basis for structure to be created. In that core model of the orchestra, we have the strategy of the music itself, the piece of paper, but it’s the connection and integration of that and performance that really makes something happen. The core business model and the understanding of it is what’s missing and the different players understanding their role. We serve the music, we serve the client, which is the audience. We focus on what makes a good user experience. Is there an analogy there that fits what you’re talking about? David: Absolutely. What you are talking about, analogies with music, and we were talking the other day about that- it really does fit similar to that as well is that the model itself gives the goal of where the organization wants to go. The other people, as in musicians, know how to play that instrument. They need that sheet of music to know how they fit altogether. If they fit altogether, and they are doing the right thing, they sound fantastic. If they don’t, then we are out of tune, out of key, and some are coming in when they are not supposed to come in on the music. I only make that analogy because I had a professor constantly tell me- He was a stickler for making sure you were coming right exactly on the downbeat where you should be. And he knew, within milliseconds, or that’s what it seemed like, whether that was accurate or not, but all of those things together, if you don’t come together, then you sound awful. Just like the core business model, if you don’t have everyone together, which sounds like an amalgamation of the culture and the structure and operation all working in concert together. When they do, then it’s working very well. You will be able to instinctively know how to serve customers and balance that quality and efficiency that you need to maintain profitability and sustainability. Hugh: This fits my podcast “Orchestrating Success: Converting Passion to Profit.” The profitability, as you said earlier, drives what we do. I am amazed at how many people don’t realize that even in charities we have to make profit. We are focused too much on profit, or we don’t do that critical balance that you talked about. This is helpful. What steps can an organization take to help improve their performance? David: Well, the first thing they need to do is they need to implicitly understand their own core business model. If they don’t know, they need to figure that out so they can figure out the effects on the operation itself. Once they understand that, they need to understand exactly how their profit generation is tied to their core business model. They need to understand that customer and why they are buying from them. They will be able to understand how that is affecting the model and the generation itself. I really think that businesses need to constantly review industry trends and changes that might impact their core business model. They need to sift them, if this is really moving this or if it’s not. Further technology and innovation, or even a lot of it, is- what about a disruptor? A particular company that is coming in and they look like the start-up, father/son, if you will, and they come up and all of a sudden they dissipate out. An organization that understands why their core business model is there and why that customer is purchasing from them will understand whether a particular disruptor is going to impact them or not. So organizations need to really understand the disruptors and any new innovation and technology that is coming in and sift that with their own core business model. They might need to make the moves, to make the changes. Right now, there is a huge change in what we call the financial advisory industry. Those organizations are starting to really feel the impact, and actually a number of them are starting to file bankruptcy because they did not change, from the impact of how innovation is making it move from an active management model to a more analytical and technology-driven model to reduce costs and make them more efficient. Huge changes that are going on in there. That is just to name one of those impacts. Those pieces themselves constantly looking at what their core business model is, why customers purchase from them, how they can constantly improve that model, and further their customers is the best way to understand how to improve the business. Hugh: This brilliant book that you’ve created, Do the Right Thing of Business Improvement and process and technology. How does the book help organizations to improve? Where can they get the book? David: Okay. The way that it helps them be able to improve themselves is the book is laid out, as you mentioned, Hugh, in a step by step process. It is organized in three areas from top to bottom. It goes from the strategy side to the process of execution side, and then it even has a section on enablement, which is how to evaluate resources for your organization. Basically it goes from A to Z. You can pick it up and read it, and with the stories and research in there, I try to make it more interesting than just a book of definitions, then hopefully you can pick it up and understand the concepts a little bit better. Where they can get the book. It’s on Amazon, Barnes and Noble, and my publishers’ website at Westbone.com. It is under the name Do the Right Thing of Business Improvement with my name of David A. Duryea. The other thing they can do is if they like the book and some other resources out there, then they can go to my website, davidaduryea.com, and out there, we highlight those core business model ideas. We have other resources that folks will be able to download, a bunch of white papers, if they are interested in strategy, innovation, and even disruption. Hugh: Love it. David Duryea, you have created a book that should be a standard in anybody’s business library. It’s not only a learning experience, but it’s also a good reference tool to go back to to keep current. I suggest to clients they get good books like this and they read it through with a highlighter and then six months or eight months later, go back and read it again with a different colored highlighter. We find that we have learned enough that we are ready to learn the next thing. This book has enough depth to it that there is more to learn when you go back and review the content. It’s many years of sweat, and it’s really practical advice. Practical content. And very usable content, I find. Thank you for sharing your wisdom with the listeners of Orchestrating Success. We are people who are making a difference in the world, and it’s content like this that empowers us to make a difference. As we close out this interview, is there something we didn’t cover that you’d like to mention briefly? Finally, what is a tip or thought you’d like to give people as we do a summary at the end here? David: The one thing I wanted to do is to make sure that your audience understands that the core business model- There are a lot of ideas, but the one takeaway they have is understanding a core business model in their organization is to serve the customers in a profitable way. They keep that in the forefront of themselves. This is the tip: always keep that in the forefront. Every time you think about an improvement or something you want to do to add a product or a service, keep that in the forefront. Your organization will not get off the rails. It will keep to the core business model. I believe they will be able to sustain a high level of success in all they do. Hugh: David Duryea, thank you for sharing your wisdom with our listeners today. David: Thanks for having me, Hugh. It’s been my pleasure. Thank you so much.
David Belove, CEO at Prodly, joins me, Jen Spencer to discuss investing in the channel, compensating your channel sales reps, and more on this episode of The Allbound Podcast. Jen: Hi everybody, welcome to the Allbound Podcast. I'm Jen Spencer here at Allbound, and today I am joined by David Belove, who is CEO at Prodly. Most recently he served as Vice President of Sales Operations and Productivity at Nitro. Welcome David. So good to have you on the show today. Can you share a little bit about yourself and about kind of some of the roles you played in sales operations? David: Well, first of all, I've had three distinct careers. I started out as a marketing professional and then I had a sales career, and now I'm refocused on sales operations. So that spanned almost three decades. So I've been making that transition from marketing to sales to sales operations over the last 10 years, I would say. Jen: That's great. David: I'm just going to stay in that process so I moved from selling hardware to software and now I'm to the SaaS software. Jen: I love that, you know, you've had experience in the marketing side, sales, sales operations. I think it's great today to have that breadth of knowledge. You know when it comes to SaaS… you mentioned that you are at Nitro, you had roles at Apttus and eFolder and Cloud9 Analytics. You're pretty well-versed in SaaS sales at this point and I'm curious, you know, over the course of your career, what are some consistencies that you've seen that have really created successful SaaS partner channels? Because selling SaaS through partners and with partners can be different from selling traditional software or hardware even? David: So, several things come to my mind. One of them would be that, vendors in particular but also that channel partners have to have a super clear picture of their go-to-market strategy. So if you think about go-to-market strategy as where you define your market segmentation. And then the way you pursue these segments, you've got to have a really clear picture in mind so that everybody knows what their role is. And the goal is to avoid sending conflicting messages to your partners and to your direct sales team. You want them to play nicely together. So for example, at Nitro, partners play a pretty clear role. Nitro has Geographic and that's a small company, has geographic and language coverage limitations. And so partners are absolutely crucial in many parts of the world. But also, you know, having a clear picture of which verticals you can cover yourself and which vertical partners have to have expertise to cover for you, or situations like integration. If your product involves integration with other products, partners are going to be really important. It's really hard for a vendor to cover every different instance from an integration perspective. So, in all three of these cases you would have a really clear ROI, and that would make it much easier to explain what your partner's role is in. But that's one point, it's understanding the roles. And then, the second point would be making sure that you have dedicated marketing and sales resources assigned to the channel. And it's kind of hard because, most especially when you first get going, and in particularly in a SaaS environment where direct sales tend to be the first approach to the market and dedicating these resources is kind of hard to justify. It's an investment because the bookings are probably going to be coming from the direct sales initially and so you're kind of betting on the [come?] that the channels gonna contribute. But if you don't have dedicated channel marketing and channel sales resources you'll never gonna make any progress. So, one quick story - at Apttus, we were very interested in signing up SI's to help us with not only opportunity generation but implementation. And so we kicked off the program but we didn't have the implementation training programs put in place, and so nothing really happened. We were disappointed with the results. Once those training programs were put in place everything at the top of the funnel started to fall in place. Jen: That makes a lot of sense. I was really kind of like really curious about… you made a kind of statement about how channel can allow a SaaS organization to not pivot but to kind of expand into another part of business that maybe they couldn't previously move into. Like, whether that's moving from targeting small and medium size businesses to enterprise or going the opposite direction enterprise down to a more of an SMB market. I know that there's... It's one thing to say, “Okay, let's bring on this partners and they're gonna have this expertise so they're gonna get us into these deals or they're gonna get us into these opportunities.” I wonder if you can share a little bit about what makes that kind of a shift or taking event into that kind of opportunity successful. What does an organization need to do in order to really embrace that kind of opportunity to expand beyond a target market that they've already sort of claimed? David: Yeah. Well, it's tough but it would be similar to expanding into a new geography or if you are expanding your product line, those are both examples of investments that you have to make. Well, expanding your go-to-market strategy to include channels is similar. You've got to be willing to invest, putting in place that dedicated channel resources and training programs and being willing to essentially share the market with your partners is critical. Jen: What else do you think is really critical for a channel leader who's working on maybe building out or exchanging a channel partner program? Maybe there's… there's a lot of folks we talk to who, you know, they've got these channel partner programs. They sort of were created almost organically, maybe not a lot, maybe not very intentional, and now they've got these program and things are maybe a little bit out of whack or a little bit out of sync. What do you think are some of the most critical elements that a leader should consider when going into... I mean, I hate to use the word "repair," but really optimize their channel program? David: You know, I think there are various reasons why things break down or need to be optimized, to put it in a positive way. One would be having vague agreements with your partners. If partners are not fully committed to your program, if you don't understand their motivations, there's going to be a problem. The second thing is making sure that you're properly motivating them. Do you have a compensation program for them that makes sense? I mean, moving into SaaS is hard for everybody. Especially if you are transitioning from software, to perpetual software, to SaaS, all of the sudden your revenues are stretched out over a longer period of time. Well, the same thing happens to the channel. They're going through this transition where instead of booking everything upfront, now their revenues are booked over a long period of time, or recognized over a long period of time. So understanding that there's going to be some shared pain there, and making sure that your partners are willing to accept that pain that transition is critical. And not everyone is willing to do that and so you've got to pick your partners carefully. I think one critical role or one idea is to focus on partners who get it. Focus on partners who have accepted the SaaS model and are compensating their sales people that way and are making the transition themselves. Jen: Yeah. I think that's really a good advice because you really got to work, you know, with you and your partner, vendor and partner have to work as a team together. You really wanna make sure those partners are really on the same page that you are for certain… that makes a lot of sense. And I'd love to hear a little bit more about... you know, it's so interesting to me, I sort of started sorting this sentence okay, and how do I frame this? So when I think about sales operations, this is a very growing field right now. I feel like I'm seeing more and more organizations invest in sales operations. David: Yup. Jen: And I'm really focusing on being productive, being efficient, maximizing resources. You know, probably a lot of this has to do with things like growing technology stacks, things like geographically dispersed workforces. So I looked at sales operations professionals as being the fixers in an organization, right? So, it's like, here's what we wanna do… David: Yeah. Jen: … and like, all right? Like, we got to go to this, it's like you're an engineer, like help kind of construct this and make sure we think kind of stays inline. So I'm sure you've seen a lot of challenges. I'd love to know about some of the big challenges that you've seen when it comes to management and collaboration of direct and indirect sale programs. People talk about channel conflict a lot. We talk about, you know, how do you continue to have harmony between your direct and your indirect efforts. But you probably see the pain more than anybody else in operations? David: Yes. Like you've said, we're often tasked with straightening it out, because in some sense we're the Switzerland in that situation where… Jen: Right. David: … we, you know, supporting both the channel group and the direct group. But it comes down to a couple of things. One is we have to be able to integrate a channel into the CRM system, so to speak, with the sale stack. And so, it's an extra complexity when you've got to be able to measure channel leads and channel bookings, and be able to integrate that with the direct channel, and know how things are attributed. So do these come from a channel partner or does it come from a direct source? Which one was inbound, which one was contributing? So there's lots of attribution issues. There are CRM tracking issues. And then there are sales process things like, how do you roll out a new price book? You can't forget the channel. Jen: Right. David: You're gonna have probably two price books instead of just one. And these are things that a lot of times that SaaS providers are not accustomed to. So, during the integration, and thinking about the channel, whenever you make changes and whenever you plan a new enhancement is really important. The second aspect is in terms of compensation. How do you compensate your channel managers? And a lot of times you have to think about these in terms of their contributions. Is the channel the source of the opportunity or is the channel manager essentially reacting to an opportunity that a direct sales person has located or essentially playing matchmaker. In those two cases, you might want to pay them a different amount of money or a different percentage of the deal. So compensation is an issue, integrating the pipeline, the funnels of the two channels, direct and partners. So there are lots of implications. Jen: Do you have any war stories you can share with us? Anything maybe that you've experienced that was a major lesson learned or at times maybe you painted yourself into a corner? David: Well, I think the one that comes to mind would have to do with compensation where their quotas have to be aligned with the quotas of the direct team. And there you have to decide whether they're gonna share that quota or not. And so, I've seen on a couple of occasions where the quotas for the channel team were aligned more towards run rate business. Say a large number of small deals, and then a large deal comes in. And maybe that large deal is a million dollars or more, and so the channel person blows out their quota but the direct team doesn't. So whoever is in the compensation plan need to be carefully architected to ensure that you don't have a channel manager totally blowing up their number but the direct team doesn't. Jen: Right, right. That makes a lot of sense. Have you ever experienced any challenges where like internal struggles with revenue share with partners? So you talked about compensation for the channel, the channel manager who works for the vendor. David: Right. Jen: What about for partners? Is that something that you've experienced, you know, challenges in that area as well? I find that a lot of people… they're not sure like how much should we be spending, like how much should we be giving and there seems to be like some philosophical battles that I've seen people sort of face when it comes to that. David: Yeah. There's a couple of different challenges. One challenge would be that the vendor doesn't wanna part with a piece of their SaaS revenue stream. Jen: Right. David: And so they'll try to get the partner to accept some sort of a finder's fee or a fixed upfront fee and then forgo the annuity. And of course, if a partner accepts that then they're really not participating in the best part of the SaaS business. And so they're not going to be as committed to you as they would be if they had annuity for an ongoing revenue stream. Jen: Right, right. So if you want your partners to bring you SaaS business you should be expected to pay them as such, and pay them the commission, is that what you're sharing? David: That's right. Jen: Yeah. David: Yeah, and it should be not some sort of a fixed finder's fee, so to speak upfront. But we want them to share in the ongoing revenue. And of course a lot of SaaS companies are very direct sales oriented and they see that as a major sacrifice for them. So that's something that everybody has to work through. It's the idea that partners should be sharing in the revenue stream. And so that's one scenario. And then, another scenario would be where partners are having to shift their role in the sale from a software model where they're making their money by doing provisioning and the licensing and installation and upgrade, and things like that, to providing more of a strategic consulting role, where they're helping their client with business transformation and with integration and security. And that may be… I mean, I don't think that's new to many established partners today, but five years ago that was a major transformation. Jen: Right. David: So essentially they have to upgrade their value to their clients to take into account the difference in the way a SaaS product is delivered, versus a software product. Jen: I'm just curious also, over the course of your career, and you have mentioned kind of like three decades of working in marketing and sales, and sales operations, let's just go back five years ago, you know. I mean technology has advanced in the last five years but not so significant. So what's a piece of advice that you would have told yourself five years ago based on what you know now about sales, about the channel, about business, just wondering what you'd like to tell yourself in the past? David: Well, just to kind of keeping at the theme of this conversation, I would say that five years ago I still probably had some doubts about how the channel would participate in SaaS. Jen: Yeah. David: I think I was still unclear about that. But so I would reassure myself, my younger self that SaaS is something that the channel can participate in, must participate in, and that there's a major role there. Like I've said, it's gonna be different in many cases. They're gonna have to develop a more essentially business expertise, meaning expertise in their vertical expertise, in system integration, in security; things that are more difficult than just focusing on the delivery of hardware and software. Jen: Right. And perhaps there's a role that the vendors can play in helping to coach their partners and bring them along for the ride, and treat them like that natural extension of their sales and marketing teams that they have and truly partner together… David: Yeah. Jen: … so those partners aren't kind of felt like left off in an island by themselves. David: Yeah. So I think this has been going on but essentially the partners contribute their vertical expertise and their integration expertise. Well, the SaaS vendors can share their expertise in how you manage a SaaS business. How do you pay SaaS sales people? How do you make this transition from selling software to software as a service? That's something that vendors have been forced to go through and to figure out and they can share that with their channel partners. That's essentially comes right like a franchise where the franchisor is teaching the franchisees how this sort of business works, how the model works. Jen: Right, right. Here you go, right. Here's the kit, here it is in the box, right. Here's everything you need to know in order to be successful. I think that's a great example of franchisers have been doing this for decades, really setting their franchisees up for success. I think there's definitely a lot we can learn from that model for sure. David: Yeah. There are many of examples of channel partners now that do understand SaaS and are making that transition but there are ongoing lessons to be learned that vendors can share. Jen: Always, always. Well, David, before I let you go, it's been great talking to you about sales operations and the role of operations in and the channels in SaaS, I do have… at the very end of all my podcast I ask some more personal questions just so we can get to know you a little bit better. Our listeners feel like they get a little bit more of a glimpse into your life. So I got four really simple questions as long as you're willing? David: Sure. Fire it up, Jen. Jen: All right, all right. So first question is what is your favorite city? David: My favorite city, other than my hometown of Los Altos where I've lived for most of my life, I would say it's Santa Fe, New Mexico. Jen: Oh, nice. I haven't been there yet. But it's one of the places I really like to go. What do you like about Santa Fe? David: Well, the atmosphere is amazing. For example, if you go in the summer time, the monsoon clouds build up over the Rio Grande Valley and they charge across the valley and move to Santa Fe, you'll get a 3 P.M. rain shower. And then the whole thing kind of dissolves into bright blue skies again. Jen: Yeah. Sounds a little bit like the way some of the storm that get into Tucson, Arizona. I went to college there and have amazing, amazing lighting storms. Where amazing monsoons where it just keeps pouring rain and the streets would be flooded and we'd be trudging that from class, with like water up to your knees. And all of the sudden, it just stop and the sun was out and skies are blue, and it look like it had never rained. David: Yeah. Like nothing happened. Jen: Yeah, unbelievable. It's really cool, nature is amazing. Second question for you, would you consider yourself an animal lover? David: Oh yeah, for sure. My dog is sleeping on the couch next to me here. Jen: What kind of dog do you have? David: A Goldendoodle. Jen: Oh, very cute. David: Yeah. She's looking at us now, “Are they talking about me.” Jen: Yeah, that's right. Okay, next question, Mac or PC? David: Well, I started out as a big Mac fan and I still first use iPhones and iTunes and all that. But I'm pretty accustomed to using a PC at this point. One short story is that my parents were one of the first distributors for Apple computer. Jen: Wow. David: This was in the 70s. They were the distributors from Mexico. Jen: Wow, that's crazy. So you had a Mac early on, you had an Apple computer early on? David: Yeah. Jen: That's interesting. A lot of people I talked to when I ask that question they said, “Well, it was always PC. And then they started working for this company, and they gave me a Mac, and now I'm using Mac.” So I haven't heard a lot of people share the opposite way around. It's interesting. My last question for you is, if I were able to offer you an all expenses paid trip, where would it be to? David: Oh gosh. This is really hard. I would say Venice. Jen: Nice. Have you been there before? David: I have been to Venice once before, and I remember to this day getting off of the train and looking out across the Grand Canal and seeing the gondolas, that was just magical. I think I would want to go back. Jen: Excellent, excellent. Well, I would love to join you. I've been to a few different places in Italy but I never made it to Venice, so my only knowledge of Venice is basically like the Venetian in Las Vegas, which is really embarrassing to admit I don't know why I just said that. But that's all I can picture in my head besides pictures in books. So, one day I'll get there as well. Thank you so much for spending some time with me today. It was a pleasure just chatting channel with you. If any listener would like to reach out to you personally, maybe to dig in, ask you a few follow up questions about your experiences, what's the best way for them to get ahold of you? David: I would say, just ping me on LinkedIn @davidbelove, BELOVE. And yeah, I'll respond that way. Jen: All right, perfect, easy enough. Well again, thank you David. I really appreciate your time and thanks to everyone else for tuning in and we'll catch you next week for all new episode. Narrator: Thanks for tuning in to the Allbound podcast. For past episodes and additional resources, visit the resourcecenter@allbound.com. And remember, #NeverSellAlone.
David Corbin: Keynote Speaker, Business Adviser, President of Private and Public Corporations, Inventor, Mentor and pretty good guy…..David M. Corbin has been referred to as “Robin Williams with an MBA” because of his very practical, high relevant content speeches coupled with entertaining and sometimes side splitting stories. A former psychotherapist with a background in healthcare, he has served as management and leadership consultant to businesses and organizations of all sizes – from Fortune 20 companies to businesses with less than 1 million – and enjoys the challenges of all. He has worked directly with the Presidents of companies such as AT&T, Hallmark, Sprint as well as the Hon.Secretary of Veterans Administration and others. http://davidcorbin.com Notes from the interview: Why is it important for nonprofits to be clear about their brand? You have a brand. If you don't work at defining it, your audience will. You create an impression by your actions, intent does not stop that. Everything you do adds to the impression you create. Make believe you are always being observed and act accordingly. Audit your service by experiencing your deliverable. Would you do business with your organization? When working with people to build organization framework, when to we focus on brand promise? From the beginning. Why do we exist? Who do we serve? How do we want to be known? What do we really want? Who are we really? Everything we take on needs to fit who we are at the core! Do the Brand Audit right at the beginning(Before you deliver any services or approach anyone)! Team must be fully engaged all the way through. Quality and Clarity Determine Financial Results. Growth must start at an individual level for the organization to grow. People – The only completely renewable resource of any organization! (And the most valuable) Culture is a reflection of leadership! How Do Leaders Keep Our Internal and External Brands Fresh? Integrity – Living the values of the organization. Boss Watching – Biggest Sport! Model the behaviors the brand represents. Transformation consists of a series of small steps, often many of them! It starts with one in a row! Everything counts when it comes to integrity. Leader must lead by example. The Transcript NPC Interview with David Corbin Hugh Ballou: Greetings, this is Hugh Ballou. We are live with the Nonprofit Chat. Today, we have a guest who will bring energy to a lot of different topics tonight. David Corbin is a friend of ours. We have known each other for a number of years. This is the first time we have had a live interview, so welcome and thank you for being here. David Corbin: My pleasure. I'm happy to be a live interview. I hope the other ones weren't dead. What are you trying to say, Hugh? Hugh: You're a live one, man. I like guests to start out by telling people something interesting about yourself. Why do you do what you're doing, and what is your background that gave you… The few times you and I have had some deep conversations, I have really been impressed by the depth and breadth of wisdom that you have on these topics that you talk about. Give us a little paragraph or two about David Corbin. Who are you, and what brought you to where you are today? David: Well, I'm a human being. I'm not a speaker. I'm not an author. I'm not a doctor. I'm a human being, and I play the role of a keynote speaker, inventor, and mentor. I am a guy who loves life. What can I say? If there is a way- As I did yesterday, I had a client fly out from Mexico. The objective overall was for him to be happy, healthy, prosperous, and the like. I am the guy who likes to do that and likes to be that as the extent I can continue to learn and grow. I do all of those things. As you know, you have been in my audience, and I have been in yours. I love to share ideas from a platform. I like to consult with corporations at the highest levels and then solopreneurs. I love to run my 5K every Saturday, and I love to play tennis. I love to hang out in my backyard. I look out there, and I have chickens running around and a turtle in the pool. Life is great. Hugh: You're in San Diego, California. David: I am. Home of Tony Gwynn, the famous Padre. Today I was honored to be invited to the unveiling of his statue in our little town here. I was also with his family at Cooperstown at Baseball Hall of Fame as he was inducted with Cal Ripken. I am in southern California, San Diego. The town is called Poway. Hugh: Love it. The first time we met, we were in Lake Las Vegas, and you had just published Illuminate. You're not an author, but you write some really profound stuff. You actually were in a suit and tie that day. What inspired you to write that book, and what is it about? David: I'll tell you what it's about. It's about facing the reality of situations in our life and our business. You see, I have read the positive mental attitude literature, and I have had the honor of meeting Dr. Norman Vincent Peele and some of the luminaries in positive mental attitude. I am honored to be in the latest Think and Grow Rich book, Three Feet from Gold. Nowhere in that literature does it say ignore negative issues, that we should push them under the carpet as it were. I came to realize that my most successful clients were individuals who had the courage to face those issues, not just accentuate the positive as the song goes. But rather than eliminate the negative, I learned the key is to illuminate the negative in a model that I call “face it, follow it, and fix it.” That is what Illuminate is about. It came from the realization from practical experience, that whether it is a nonprofit, a for-profit, or a for-profit that doesn't intend to be a nonprofit but ends up that way, no matter who it is, the individuals who have the courage and the character to face the problems head-on, that is what I found to be the greatest model, and hence the title of Illuminate: Harnessing the Positive Power of Negative Thinking. Hugh: What I can count on if we are having conversations is the words coming out of your mouth are not what I can expect from anyone else, because David Corbin is one of the most creative people I have ever met. I remember when we were introducing ourselves at CEO Space one time, one person said they were a consultant, and then you came along and said, “I am an insultant,” and I said, “I'm a resultant,” and your head went, Whoosh. At least one time I one-upped you. David: It's on my website now. There is an asterisk at the bottom and says, “Maestro Hugh Ballou, genius extraordinaire.” Hugh: I am honored, David Corbin. I have not seen that. A resultant in a pipe organ is a pipe that is not as long. A sixteen-foot pipe has a certain pitch. They don't have space, so they miter it, and the result is a lower tone from a shorter pipe. We actually create a bigger result without having to be bigger ourselves. We can amplify the sound by what we do. You and I, I love this Illuminate. Two weeks ago, I talked to David Dunworth, who is also an author. He has quoted you. We talked about that. You illuminate a lot of people you maybe don't even know. It's really how we amplify what other people do. I'm just energized by the fact that you're here. You have another book that is new. You've written about brand slaughter. Is that the title? David: It is. I was just on the TV news this week talking about that. It was fun. The guy couldn't get over the title. The concept is- People create their brand based upon their values and the brand promise out to the world. They put a check off and think they're done. Don't stop there. You're either building your brand—you, your employees and everyone else in your organization—or killing it. Nothing is neutral. You are either engaged in brand integrity or engaged in what I call brand slaughter, just like manslaughter in the first, second, or third degree. We can read in the news that people are convicted of manslaughter, but you don't often see people convicted of brand slaughter, except maybe in the case of United Airlines or Pricewaterhousecooper in front of 30 million people after 87 years of great service to the Oscars. I don't know if it's brand slaughter. I think they can recoup from that. However, United Airlines is going to have a hard time coming back from that brand slaughter, wouldn't you agree? Hugh: I would. It's one that got highlighted in a series of really dumb things the airline has done. We're talking to passionate people who are providing amazing value but are limited by how people perceive us. I was talking to someone on a radio interview, and he said, “There is a charity in my area, but I quit giving because I really wasn't sure what was happening.” That is part of our brand promise, who we are and what we stand for. David: That's right. When we look at the organizations that part of our charter is to serve others in an amazing way, and there is no shortage of people in the giving field, those organizations are carrying a lot of weight for the society. They are making a promise out there. By and large, they are delivering. However, there are some actions and behaviors they either are taking or their management/leadership is taking or their front line people are taking—they are taking certain behaviors that are undermining the brand and the promise of the entire organization. It doesn't have to be that way. Look, I have had great experiences on United Airlines. I truly have. I love Gershwin, so when I hear that music, it pus me in a wonderful state. I have met some wonderful people. They are not just a group of dirtbags. However, the one person who carries the credibility and reputation of the organization pulled down the asset value of the corporation, the reputation of the corporation, and created for great humor, “United Airlines put the hospital back in hospitality,” such that Southwest Airlines came out and said, “We beat our competition, not our customers.” That kind of stuff is just going to keep going because of one guy making one bad move. I want to tell the leaders, managers, supervisors, and individuals who are carrying the torch of these organizations to do what I teach in this book called an ABI, an Audit of Brand Integrity. Have every one of your employees take a sheet of paper and write down the values, write down the brand, and then write down the touchpoints they have on a daily basis with the individuals they are touching: a customer, a fellow employee, a vendor. Everyone who is carrying that brand, and that individual looks at their touchpoints and asks themselves, “How does the brand live that touchpoint?” What could I do, what might I do, what should I do, what ought I do to really boost that brand? If the organization, let's say United Airlines because we are picking on them, but I can tell you two of them I experienced today alone. But I focus in on that one. If the CEO said, “Folks, this is our brand. We are doing a brand audit. After you do that audit, come back and tell us examples of how that brand is to live in your head. Maybe even tell us some examples of what you have observed in our organization when we have committed brand slaughter.” There is a statute of limitations. Nobody is going to get busted. But it helps us to see how the brand is alive and well and being fed and nurtured and supported, and on the other side, by the law of contrast, we can see where we have fallen down so we don't fall down that hole again. That would be an amazing solution. I implore everyone who is listening, whether you are running a nonprofit or not—maybe you are going to at some point but now you are a parent or a neighbor or a member of a church or synagogue—and ask yourself: What is your brand? How are you living that brand? I think when we get serious about this, we can't solve everything we face, but we can solve anything unless we face it. This is a way of facing the opportunity of building your brand asset value. I sound like a politician. I am David Corbin, and I endorse that message. Hugh: That's right. Your passion is contagious. Our friend from Hawaii, Eve Hogan, is watching on Facebook. We have a lot of people that we know. David, there are four million 501(c) somethings. There are 10's, 6's, 3's, and government organizations. There are all kinds of tax-exempt organizations. They are charities; they are social benefit organizations. Russell and I are on the campaign to eliminate the word nonprofit. Rather than defining ourselves by what we're not, which is not correct either—we do need to make a profit to make things happen—we are social benefit organizations. We leverage intellectual property. We leverage passion. We leverage the good works and products we have for the benefit of humankind. These nongovernmental organizations that we represent have a bigger job and more important job today than ever before. There is real confusion on the whole branding thing. I want to back up a minute to a question posted a few minutes ago. How can nonprofits eliminate their brand? But I think it's important for them to know why they even need a brand and why it is important to be clear about the brand. It's true for any organization, but we are talking to nonprofits. The reason we have top-level business leaders like you on this series is we need to understand good, sound business principles to install into these organizations that we lead. Why is branding important? How do we illuminate that into the communities that want to support us but need that information? David: Let's just say this. Whether you like it or not, you have a brand. Whether you know it or not, you have a brand. These scanners- I have a scanner over there. It's a Hewlett Packard. It doesn't compare to these scanners. *points to eyes* I have a computer that we're working through. It doesn't compare to this computer .*points to brain* Everyone is walking around with these scanners and this computer, and everything counts. Whether you acknowledge it or not, you are creating an impression from the eye to the brain to the heart to the soul of who you are and what you're doing, whether you believe in it or not. I don't know if you believe in gravity or not, but if you walk off of any building in any town of any city, you are going down. It's an immutable fact. Now, thank you for the concept of the not-for-profit. Why talk about what we're not? That was brilliant. You open up my thinking. I thank you for that. I want to let all of my service providers know that everything that you do is creating an impression, whether you believe in it or not. Could you imagine if I came out and said, “I want to talk about hygiene and important it is?” *while sniffling and rubbing his nose and eyes* That would be absurd. I happen to have a 501(c)3 for anti-bullying called Anti Bullying Leadership Experience. Everything that we do is going to be carrying our mojo of the anti-bullying. Could you imagine if I started yelling at one of my vendors and pouncing on them and playing a power trip with them? That would be the antithesis of everything. The point I want to make is make believe that you are on the stage of a microscope and you are being observed in everything that you are doing because you are. And as soon as the leaders know that, they will start looking at things differently. You drive up to the parking lot, see what the front door looks like, see how you are greeted, and you are watching everything that is going on. God is my judge, I must tell you. Hugh, you know I am putting together a little wedding party for my daughter. I was at two places today, one of which the woman didn't show up to the appointment, and she needed to call me back, and she didn't later. One was a very famous place called L'Auberge Del Mar. It's five-star. When I called to make a room reservation there, I was there for seven and a half minutes before I even found someone. I eventually called the manager who called me back. I said, “I'm going to give you a gift. I would like you to call and try to make a room reservation and get the experience of what that's like.” She did. She called me back and goes, “My goodness, Mr. Corbin. I had no idea.” We need to audit all of these activities. Our service organizations, which do not have an unlimited budget that a lot of corporations might have today, must be efficient, must be effective. The best consultation you can get is from yourself experiencing your deliverables and that which it is you are bringing to the market. I just think that we don't have a lot of wiggle room for error. There is a wonderful book by Andy Grove who started a little company called Intel. You probably haven't heard of it. Andy wrote a book called Only the Paranoid Survive. I don't think he is suggesting that we walk around paranoid. I think he is suggesting a strong and deep introspection into what we are doing and how we are doing it. I want to punch that home. Please, please for the benefit of all whom you are serving and whom you could serve in the future, take this message seriously. Know that you have a brand. Live that brand. Make sure that everyone in your auspices know how they live that brand. Hugh: Those are wise words. Mr. Russell Dennis is capturing sound bites. He is very good at picking out things, and you have given him a lot of fresh meat today. David, you work with a variety of different kinds of clients, some of whom you and I both know. When you are working with them on building out the whole framework of the organization they are launching and growing, at what point do you hone in on this brand image, brand promise, brand identity? At what point in this process do you focus on that aspect? David: I believe strongly with begin in the end in mind. It's more than rhetoric. If you are a service organization, really ask the penetrating questions. 1) Why do we exist, and do we need to exist? 2) Who do we serve, and how do we serve them? 3) How do we want to be known? 4) What do we want somebody to yell over to the fence to their neighbor about our organization? When you have that, you work backwards from that. Business planning takes the existing business and carries it out into the future, but strategic planning envisions the future and works backwards from there. I take a deep dive of visualization. Actually, as you know, I am a graduate of Woodstock. I was there in 1969. So I can say not just visualization, but hallucination. I can really hallucinate on those questions. I just was in front of an audience in Atlanta and said, “What do you want? What do you really want?” I say that to businesses as I do strategic planning. Who are you? Who are you really? Then you know all of that. That is when you contemplate for your brand promise and the reputation that you want to earn because you can't demand it. Then when you do that, you get the confidence to move forward. You now have the gristmill, and everything must go through that. How does it go against our brand? Should we do that? Great, tell us how it fits into our brand. When someone does something that is off-target, how did that dent our brand, and what can we do to prevent that from happening again? In direct answer to your question, do this brand audit right form the get-go. I promise you not only does it give individuals a sense of ownership, but it gives them a sense of confidence because nobody wants to mess it up. In Europe, they take it down to the bottom line. When you ding the brand, you are actually pilfering money from the organization. Isn't that something? Imagine if we really own the brand. No one changes the oil when we rent a car because they don't have ownership. When people know what the brand is in their hands, they take ownership. What happens is when you collaborate with your people, you breed creativity and commitment. Now they are engaged, they are enrolled. Nothing can stop a service organization with passionate, engaged people. That is why I plug what you're doing, Hugh. Hugh: Thank you for that, David. That is such a vivid description of how we can upgrade our performance and upgrade the performance of the organization that we have a huge responsibility for as the leader. Perceiving ourselves as the leader doesn't mean we have to do everything. It does mean we need to be involved in the grassroots of what is going on so we can know what is actually happening. And what you talked about brings to mind that we build relationship with others in the organization. To me, that is the foundation of leadership, and it is also the foundation of communications. You gave the gift to the hotel manager that she didn't have because she was too busy doing the top-level things to get into the minutiae and figure out, Whoa, how do we look to the public? You could go to any big company in America and help them do an audit, and it would bring them immense value, probably within the first 30 seconds of your conversation. Part of what you described is part of this word that you have used, which is such a brilliant framing of how we- Everybody in Synervision is a leader. We lead from different perspectives, and we impact everybody else in the organization. We also represent the brand. We don't know who is going to go wild, like United Airlines. That was such a terrible thing for everybody, but it highlighted an underlying problem. Brand slaughter was what brought it to the fore. I bet that cost United a whole lot of money so far, not to mention future business. Let's take it back to the charities. We are doing work that impacts people's lives, sometimes saving people from drug addition or suicide or insanity. There are a lot of worthy things we are doing. We have elements going on that kill the brand. I love it when you talk about this brand slaughter thing. I'd like to put it back into context in what we're doing with this world of charities and how we need to contain this brand and empower our tribes to represent the brand and not be guilty of brand slaughter. Give us a little more food for thought, especially for charities. I work with churches, synagogues, community foundations, semi-government agencies. I find there is a similarity with everybody, that we are not aware of how the culture is represented by the people, and that brand slaughter is committed in minor ways, but also in bigger ways. I am going to shut up now and let you talk about brand slaughter and why that is so crucial for our charities. David: I look at it this way. I believe that the financial results of any organization is largely dependent on the quality of its people and the clarity of its people. Be it a service organization or otherwise, I believe everyone in the organization should create a circle. I don't mean hands holding. I mean draw a circle, a wheel with a hub and spokes. Every one of those spokes is an essential core job function for that person. If it's a leader, we know some of the spokes are delegation, communication, strategic thinking, and financial management. Those are all spokes. Whatever the position is, if you're an operating room nurse or a development manager for a service organization, you create that wheel and look at the spokes. When you do, you start rating yourself on those spokes. The hub means you're terrible. Outside at the end is a number ten. That is mastery. You get real serious with whoever you are, whatever your job is, and rate yourself on a scale of zero to ten. Where you are an eight or nine, great, pat yourself on the back. That is really cool. But don't stop there. Unfortunately, Americans tend to stop at the immediate gratification. Look at what I'm doing great. We say no. Focus in on the threes, fours, and fives. Set a goal to a six, eight, and nine, and close those gaps. I say that to my brothers and sisters who work in the serious world of service delivery. I mean what we would call service providers and not-for-profits or whatever you want to call them. When you get serious, and you rate yourself on a scale of one to ten in those areas, and you start closing those gaps, magic happens. You know what the magic is? You start building a momentum of growing yourself. You can't grow an organization unless the individuals are growing themselves. You show me an organization that does what I'm talking about: closing the gaps, setting personal goals, and getting more efficient and effective in what they do. I don't care if their building burns down; they could accomplish their mission in a tent. They could do it with dirt floors. They could do it anywhere. The saying is, “Wherever two or more people are gathered in His name, there is love.” Let me tell you. Whenever you have a leadership team and a management team that talks about building their people, the only renewable asset in an organization, no matter what happens, they will win. Every one of the employees increases their asset value. You invoke the law of control. People feel good about themselves in the extent they are moving in the direction of destiny. Their confidence goes up. Their competence goes up. People talk about going down the rabbit hole. Now you are going up this amazing spire into success, achievement, productivity, confidence, peace of mind, and self-esteem. I am passionate about that because I have seen it work. I help it work. I live it myself. I couldn't talk about it if I didn't live it, or else that would be a form of brand slaughter. Hugh: I can validate that. You live out the David Corbin brand. You illuminate the brand. Or you don't do it. You are very serious about being spot-on. You show up fully present. I have been doing the German ice cream thing. I am being Häagen-Dazs Mike. Russell, do you have a comment or a question for our guest tonight? Russell Dennis: It's a lot easier to tear a brand apart than it is to put it together. Look at United. Those guys have been around forever and a day. And in the space of a day, they have torn the whole thing down and trashed a lot of good wealth. It's very easy. Brand is about- it goes beyond a logo. People think of a logo when they think of a brand. It's not the logo; it's what is behind the logo that symbolizes something. I am going to pull a definition out of a book that a very wise man wrote, “The brand as is a tangible expression of top-performing culture comes to life when the elements including the mission are taken off the wall and put into daily action at all levels and through all individuals in the organization.” That is a big mouthful. Hugh: Who is the wise person that wrote that? Russ: Just some guy who is sitting around while we chat. Hugh: David Corbin wrote that. Russ: Brand slaughter, to me, is the ultimate thing. To say this is what we stand for and do something completely different. I think there are some people out there who are scrutinizing and are waiting for somebody to make a mistake. I have seen people do that. You run into those folks in a supermarket. People don't intentionally set out to fail, but it happens. These are things that are talked about in the Core Steps to Building a Nonprofit course. When it's building that foundation, they could lay all those things out. The time to figure out your brand is right at the outset. Who do we serve? What is in our wheelhouse? What do we have? What are we weak at? Where are our gaps? I think you have to hammer those strengths and work with them, but when you have a gap, that is where your recruiting starts. You recruit your advisors, you recruit your board. Or you look for collaborative partners. But you find a way to do it that will stay because everything rides on it. You have to have it all in place. You have to have a solid foundation to start making those plans and do the things that you want to do first. What are we going to do first? There is a big vision. I have been working with Sue Lee. We had a great conversation yesterday. I have also been working with Dennis Cole on his foundation. We are looking at some potential sponsors. We have got some things that we are going to be doing really soon that are interesting, but we are ready to break out and go out there and be a service to people by telling them they don't have to succumb to any bad circumstances they have because of an injury or major illness. You can work around that. The whole brand is about living that and walking that walk. These are pretty courageous young men I am proud to be helping. Hugh: Part of that course where you talked about- David, Russell is helping people bring in revenue to their so-called nonprofits/charities. There is a relevance. Russ, I'd like to get David weigh in on the relevance of this branding and attracting revenue, the income that we really need that is the profit that runs our charity. Russell, I'll bring it back to you in a minute, but you had illuminated some things that I wanted to get David to weigh in on. There is a monetary equivalent to the integrity in our brand that you talked about earlier. David: Yeah. Just as in the strategic planning you are asking yourself who are we serving and why are we serving and how are we serving, when you look at the individuals you are appealing to in business development, you say, “Hey, contribute to us. Support us.” When we are looking at that, we then need to reverse-engineer that. That is what I do in my visualization/hallucination. Why are they contributing? What have they contributed to before? What are they contributing to? What is going to make them feel good? How do they know they are contributing to the right organization after they contribute so they might want to contribute again? When you contemplate the psychology of that, much like you look into why people invest into businesses, you think about those donors. Then you know that the emotional connection- You guys have heard me talk about the mojo factor or the God only knows factor. Why are you contributing to them year after year? God only knows. Would you consider not contributing to them or contributing to someone else? Absolutely not. Why? God only knows. They are not sure what that emotional connection is, but you know the emotional connection. In my case, with the anti-bullying, we are looking at the ramifications of some of these young souls who have been bullied and how it impacts their lives. Individuals who are donating to that might have experienced some bullying before and know the pain they went through, as well as the imaginations throughout their life. We know that now, so we know what the mojo factor is to get that individual to know who we are, what we do, and how and why they might want to invest. When that becomes our brand, when they can see it and feel it and taste it and touch it, which it to say there is energy between what we are doing and what we are saying, from the logo and the color and the actions and our behaviors and our sounds, then when we have that going on, we have this awesome connection. Years ago, some of us are old enough to know about Ma Bell. Remember Ma Bell? And then a company came in called Sprint and they wanted to break that God only knows connection, that amazing connection between Ma Bell. Sprint came in and said. It was MCI. They said, “We are going to beat the price,” and Ma Bell came out and said, “Oh yeah? Make them put it in writing.” Ma Bell, you don't talk like that. Ma? They broke that bond, you see. That is just an example of breaking a bond. When it comes to our organizations who are listening today, the bond is that promise. The two great things that my friend Russell just discussed are 1) it's a lot easier to kill a brand than to build a brand. That is so true. And secondly, among other things Russell shared, there are some people out there who are looking for you to mess up. There is an individual looking for the rabbi to have a ham sandwich. There is an individual who is looking for the such-and-such the wrong way. They are looking for that. Why? Because it is easier to find the fault in others than to take the personal responsibility to build themselves. So when you know that, don't be paranoid. But be a little paranoid and know they are watching you. Not only are people scanning you from a neutral point of view, and those scanning you from a positive point of view, but there are also those naysayers who are looking for you to be hypocritical. They are looking for you to mess up. That is when I say have everybody lockstep in knowing what is our promise and behaving that way. You can't go after fund development and not be the brand, or you are wasting your time. Hugh: Whoa. So Russell, I have interrupted you. Were you formulating a question? We are two thirds of the way through our interview, and we are getting into the nitty-gritty. Did you have a really hard question to stump our guest with tonight? Russ: There is no stumping David. It just follows in with what I was saying. The fourth step of building a high-performance nonprofit is to be able to communicate that value that you bring to everybody you come into contact with. You have people that work in the organization. You have donors. You have people who get your services. You need to know how to do it with everyone. With people who are working with you internally, you have to set an expectation so people know exactly what they are signing up for. Understand that you are not everybody's flavor, but you are some people's flavor. When you talk to organizations or donors or people who are going to support you, here is the reality of anything you undertake: There is going to be some risk associated. If you walk in and tell them, “Everything is going to be peachy,” when you are in the service mind-frame or an entrepreneur, we can be hopeless optimists a lot of times. It has been my experience that a lot of things take twice the money, time, and effort they are going to take because we go in with those good intentions. We have to be fully transparent, especially if we discover we have some problems or snags implementing the project. The time to talk about that is as soon as you discover it and look at it and say, “Well, we may not be where we quite want to be.” Up front, transparent. Illuminate as David has talked about. That is a book that is on my shelf. I love that book. I read the thing in one sitting. A lot of people want to cover up. Or human egos want to make us look good. When we are in the business of trying to help people with some serious societal problems, you have to get the ego out of the way. That is hard to do. It makes it difficult to get organizations to collaborate or talk to one another. I have seen a lot of that, too. My philosophy is that you can get a hell of a lot done if you are not hung up on who gets the credit. It is an uphill climb often, but I think the landscape is changing a little bit. People are going into business with a socially benefited mind. They create business structures like the LLC and the B-corp and the benefit corporations. We are seeing a lot of these social enterprises crop up. People can not only make a profit but can also do some good. It's all about doing some good, but there are certain things we have to look at. It has to be run efficiently and effectively, but it doesn't matter what your tax stamp says. Hugh: There is a comment on Twitter: “Doing what you love, loving whom you serve, believing that your nonprofit is vital. I knew too many whose hearts aren't in…” That's interesting. David, do you want to respond to Russ before we go to the final set of questions here? David: Well, a couple things that come to mind. Something that you had said earlier, Hugh, and something that Russell just said. I'll start with Russell. Yes, you need to face the issue. Face a lot of issues. Look at what happened. Happily, there will be lemonade coming out of this lemon on the United Airlines. Not for that doctor, but he will get a huge settlement. That is not what he wanted. I think the industry is shifting now. I read somewhere that Southwest Airlines has changed their model around overselling seats. Sometimes it takes this type of situation for people to learn, and then they shift. A lot of people don't really appreciate their life or family until God forbid maybe a near-death experience, and that is what wakes them up. I say practice safety in driving before then, don't wait for a near-death experience. Start contemplating for the potential issues or challenges that might happen in your organization before it happens. That is the part of roleplaying what could/might happen. What could possibly happen in this situation? Those are the types of things. Don't be a negative nelly. Don't get me wrong. The government has something called Sarbanes-Oxley that says the corporation has the fiduciary responsibility to anticipate, predict, and prepare for a natural disaster. It makes good sense. You don't have to mandate that to me as a business owner. Of course, if I am manufacturing a car, I want to make sure that if the person who creates my rearview mirrors goes down, I am still going to be able to meet the needs of my organization, my shareholders, my staff, my employees. Of course I am going to do that. I don't need regulation. For crying out loud, I don't even need the Americans with Disabilities Act, which is to provide reasonable accommodations for people with disabilities. For crying out loud, that is just good sense. It is just good sense. Plus it is the right thing to do. But be that as it may, we need to face the issue before it happens. Oh by the way, be prepared for facing the issue after it happens. So Mr. President of United Airlines, anticipate if a problem goes down how you are going to handle it. Don't say he was only following procedure. There was a guy in Nazi Germany who used to say that, too. I was just following procedure. I hate to make an extreme example, but I make a point following procedure. Following procedure, pulling a guy off, breaking his teeth. Come on. To say that is just ridiculous. What Pricewaterhouse did after they had a big brouhaha in front of 33 million people, they had 87 years of doing the job really well. What happened after that is they came back and apologized. They said Mea culpa. Just like the Japanese corporate executives did if a plane goes down, they resign. They take personal responsibility. But what Pricewaterhouse did is they said: It was our responsibility, and we apologize. We are looking into it. We want to congratulate those people on camera, including Jimmy Kimmel, for handling it elegantly. Even bringing a little humor into it. We apologize from the bottom of our hearts—I am paraphrasing here—and we will get to the bottom of this. We will let you know what happens so it never happens again. You see, that ding wasn't brand slaughter. It was kind of like getting a ticket for tinted windows or a light being out. I believe we are going to forgive them after a while, but it will be hard to forgive United Airlines after they issued responsibility and took that cheap ticket out. I'm piggybacking off some of the comments you made earlier. I think it's an important point. Anticipate what can go wrong. It doesn't require legislation for that; it requires common sense. Then practice. Practice so it comes out naturally. Sir Lawrence Olivier said the key to acting is spontaneity, which is the result of long, hard, tedious practice. I say practice. Hugh: I could hear you talk all night, David. I think people would be with us this long. There are people listening to you with lots of focus. We could all reframe our own leadership. The question we threw out for people to think about is from the leadership position. My forty years of conducting, I know that what the orchestra and the choir sees is what I get. The culture is a reflection of our leadership. Representing the brand internally helps them represent the brand externally. My question to you is, in this whole spirit of illuminating- I don't know about you, but I find some leaders who have more blind spots than awareness on the impact they are having on the brand externally and internally. You can do your own inventory, but I don't think we can. We need to illuminate with some outside, impartial person asking us the right questions. David, how can a leader, especially one that has been in a position for a while, keep it fresh and illuminate our own representation of our brand internally and externally? David: I think it's about integrity. Integrity is a powerful word. It's thrown around. But integrity, the leader living the values of the business. I can't ask you to do what I'm not willing to do. They say one of the biggest sports in life is soccer, but I don't think that's true. I think the biggest sport in life is boss-watching. Seriously. I really think that. They set the culture. They set the pace. To the extent they are leading with honor and integrity, with the values and behaviors and all. I talk about illuminate, face it, follow, and fix it. One time, instead of getting out of the shower and running past the mirror, I stopped. I didn't quite like what I saw, and I saw a guy who was 40-50 pounds overweight. I thought, My goodness. How dare I talk about illuminate if I don't face it. I faced it. I am asking everyone, every leader, to face: Are you living in integrity? I followed it. I found out why I was gaining weight. I was having a glass of wine or two every night, and it brought my blood sugar down. I would eat anything that was there. There are sardines and chocolate syrup. Looks great! And then I'd go to sleep. I didn't realize I was training to be an athlete. There is an athlete who drinks alcohol and eats a lot of food at night, and that athlete is called a sumo wrestler. I was training to be a sumo wrestler. I couldn't be a leader of Illuminate and be that hypocritical. The fix it was to take small steps and make some transformation. I ask my leaders, my brothers and sisters who are leaders, to get serious. I walked into an association that has to do with diabetes, and I saw a big Coke machine there. I look at some of our organizations who are in the health industry, and they are not healthy. I did a lot of work with a company. I won't tell you the name of it, but it rhymes with Schmaiser Permanente. They are talking about their model called Thrive. And I look at some of their employees, and they are out of integrity. I say, “Don't talk about thrive. You are better off saying nothing. When I see the word ‘thrive' and see people who are grossly unhealthy, I know you are hypocritical. I wonder where else you are cutting corners. I don't like that.” Everything counts. Everything counts. I scan, I think, I feel. Maybe below the line of consciousness. But if it is not in integrity, I am not donating my time and my money to you. I am going to move on to someone who is. Any business, any organization, the leader must lead by example. When she falls down, she says, “Mea culpa. You know what. I fell down. I apologize for that. Here is my plan.” The feminization of business today is so important. Authenticity comes with that, and a lot of drive. When we have the character to say, “Whoops, I messed up, wow, that is a big difference,” that is leadership. Leadership is real. Vulnerability, authenticity, those are just words. They are being overused, but they are real. Get serious about that. Hugh: You are preaching our song. We preach that leadership is influence. We get to choose if we influence positively or negatively. Those are good parting words, but I am going to give you the chance to do a wish or thought or tip for people as we leave. I want to recognize that they can go to davidcorbin.com. David Corbin leaps over tall buildings. Do you really run a 5K every Sunday? David: Every Saturday when I am in town. Hugh: Wow. And you went to Woodstock? You know who else was there? David: My brother David Gruder. Hugh: Yes, he was at Woodstock. You and I are contemporaries. I am a little older than you are. I have never had anybody on this interview series take a sound bite from Rhapsody in Blue. He is a modern-day Renaissance man with many skills. David Corbin, you are indeed a blessing to a lot of people, but tonight, to Russ and me for sharing this great stuff with so many charities. As we are winding up this really powerful interview, David, what is a parting thought or tip you'd like to leave with these amazing leaders that are making such a difference in people's lives? David: I would express my gratitude for their passion, for their hard work. It is difficult today. Service organizations, it seems as though they are being told to jump through hoops and then they make the hoops smaller and then they set the hoops on fire. It's not easy. We need to attract people to volunteer and donate and work for our noble mission. Every morning, I wake up. My hands and knees are on the ground like our Muslim brothers, and I give thanks and gratitude every single morning. I want to give gratitude to those of you who are taking the rein and doing this amazing work, this social work. I thank you for that. I deeply hope that some of these ideas might help you be more effective, more efficient, and more joyous and confident in what you do. Thank you for what you do. Hugh: David Corbin, special words indeed. Thank you for sharing your wisdom with so many people. Your words will live on. Thanks so much for being with us. David: Thanks, brother. Learn more about your ad choices. Visit megaphone.fm/adchoices
"If you really want to grow as a Photographer, don't study other Photographers. Study the old Masters." This tidbit of advice has shaped David Edmonson's illustrious photography career. It's the advice that has led him to creating his best work. It's the advice that has produced a living photographic master. David graciously agreed to join me for another conversation on The PhotoTellers. In this episode, you'll learn: David's "WHY?" for being a Photographer Fascinating historical details about Vincent van Gogh and VermeerThe gift from Luke to his dad--the Artist in Residence's 1,000 day projectThe 2 qualities that David loves in other Photographers See some of the stellar wedding work that David & Luke are creating HERE. Photographer--do you want David to "adopt you?" CLICK HERE. Learn more about the 1,000 day project, and how you can personally participate by clicking the logo below. "I feel that there is nothing more truly artistic than to love people." -Vincent van Gogh Here's a brief segment where David explains why he's a Photographer. _________________ BILL: What is your why? Why are you a photographer? DAVID: Well, that's very simple. The why is . . . that I want to love on people, I want to have influence in their lives, and I have the excuse of carrying a camera. Everything that I do now that at this stage in my life actually the images that I create myself are--the "why?" is--they're for my children; they're for my grandchildren. I'm a terrible writer--I'm ADD and dyslexic as most artists are--and I compose terrible letters. But I think I can tell a story in pictures.
On today's show, we talk about a force that has the potential to make an impact on the depression and anxiety of millions of people. What is that force, and how can it help you and your family. So, what’s up with David? One thing I haven’t told you about him yet, is that David is Catholic. And every Wednesday night, he goes to confirmation class. His teacher is nice, and tries really hard to get this group of teenagers to care about the class, but the fact is that most of them don’t want to be there. David spends the time daydreaming, and he mostly thinks about homework and friends, the usual teenage stuff, but on one particular Wednesday night, he’s not in a great mood, and he starts thinking about how much this feels like a waste of time. And a resentment starts to build. It starts as a resenting this class, but quickly builds to resenting his teacher, his priest, his church, and then pretty soon, he’s feeling a pretty intense anger toward the Catholic church as a whole. For his whole life, David’s gone through the motions, first confession, first communion, and now confirmation, and he never really questioned anything until this confirmation class. One way the class has influenced him is that it has forced him to think: Do I believe this stuff? Do I really belong here? And so on this Wednesday night, his resentment gets him thinking a lot more about these hard questions, “Why doesn’t anyone ever talk about if God is real or not? They talk about God like it’s a given that we just believe in him, but what if I’m not sure. It’s like everyone is just going through the motions, just coming to this stupid class because our parents make us, because that’s what you’re supposed to do. I can’t believe I’m sitting here, pretending like I’m 100% on board, filling out this worksheet like a good little Catholic boy.” He wants to stand up and just say this to the entire room, to just unleash the doubt and profanity that’s swirling around in his head. But, his anxiety part is not going to let that happen, so instead, he opens up to a blank page in his notebook, and goes to town. He writes this angry rant with so much passion, that he tears the page with his pen. Every third word is an F bomb, and as he goes, he feels the pressure that’s been building in his head start to release. He’s still writing as the teacher dismisses class, and he takes some deep breaths, and goes home. Hi I’m Corey Busch, and you’re listening to The Teen Mind. Today, as you guessed, we’re talking about faith…I know, didn’t see that one coming. We normally think about religion and God in this box over here, and then mental health in this other box over there. But really, they are very closely related. Religion can have a negative impact on mental health, and it can have a positive impact. Today, we’re going to talk about how faith in a higher power can be a huge benefit to a person’s mental health, and why the teenage years are so important in the formation of faith. But first, back to David. That night, he can’t stop thinking about it. He wants to drop out of confirmation, he wants to write an angry letter to the priest or the bishop or the pope or all of them. But most of all, he just wants to talk to someone, he still feels like he needs to get this off his chest, to know that he’s not the only person that thinks these things. So, he works up the guts to say something to his mom. His anxiety is worked up, but it’s not completely taking over. So he goes to his mom and says, “Mom, what’s the point of going to confirmation class? It’s super boring and I just really don’t want to do it.” Sheila closes her book. She just sits there for a few seconds, thinking of what to say. She starts with what she thinks she’s supposed to say: “Well, umm…y’know ummm, I didn’t love my confirmation class, but I’m really glad I went because, yknow, it…it umm…was kind of a necessary thing to getting to where I am now with my faith.” She sees him look down and nod, like, “I thought that’s what you’d say.” But She can’t let this rare chance to have a real conversation with her teenage boy slip through her fingers, so she changes her approach: (big breath) “Yknow, David, I kindof just said that because I didn’t know what else to say. What’s on your mind…what are you thinking about?” “I just don’t see the point in any of this…confirmation, going to church, saying the “Our Father” and the “Hail Mary.” Like the only reason I do all that is because it’s what I’m supposed to be doing, and it doesn’t even mean anything to me, and it’s making me really angry, I guess. Y’know everyone talks about God like, ‘of course he exists’, and I don’t know…I don’t know if I believe in God…What if God doesn’t exist, like I feel like I can’t even say that.” He expects his mom to be shocked or angry or upset, but she isn’t. She is surprisingly calm. She just smiles at him. “Y’know I thought these same things when I was your age. I never had the guts to say them out loud. I’m glad you did.” He let out a long, slow breath. “Can I tell you a story?” She asks. “Okay.” “For a long time, I didn’t know if I believed in God. As I got older, especially when you were born, I knew that I really wanted to believe, but I still wasn’t sure. I didn’t even know exactly what it meant to believe in God. And then, we got a new priest, Father Julian was his name, and he was really smart, like just a very intelligent guy. And he talked about Jesus and God with such a passion, that it helped me to get over these thoughts that said, “I’m too smart to believe in God,” because if this, very smart man believes, then heck, I can believe too. “But the big thing was your dad’s depression. There was a time there when his depression made me really angry and depressed, and I was so angry at him and feeling sorry for myself. And it was right during the worst of it, that Father Julian started talking, it seemed like every week, about how no matter how much pain you’re going through, no matter how alone you feel, that the most powerful being in the universe is on your side, not in an abstract way, but in a personal, very real way. He’s giving you a hug and telling you that he loves you no matter how messed up you are. And even now, there is a part of me that doesn’t know for sure if God is real, but there’s a much bigger part that knows believing in him is really good for me. “I don’t know…does that help?” “Yeah, it does. So, wait…you don’t know if you believe in God?” So, I’m going to talk for myself, as Corey, and not as one of these characters, and I’m just going to put my cards on the table right now. I am a Christian, and a big reason I’m doing this episode is because my faith in God has helped tremendously with my anxiety, and I think that there is a very important place for spirituality when talking about mental health. So, one thing I am not trying to do is convince anyone that you should believe in God. I don’t think I’m capable of doing that, and it’s just not my goal. Another thing I’m not trying to do is convince anyone that Christianity is better than other religions. Again, even if I wanted to do this, I wouldn’t be able to. But I do want to say that faith in a higher power, who I’ll call God, has the potential to help a lot with anxiety, depression, and a whole bunch of other mental health problems. And if you believe in God, or think you might want to believe in God, or are curious about the mental health benefits of believing in God, then stay with me. I first want to quickly acknowledge though some of the big negative impacts that religion can have on mental health. One of the biggest ones, I think, is when religion makes people think they have to follow certain rules, or have a certain sexual or gender identity, or even that they have to “be a good person” in order to belong, and be loved by God, and go to heaven. This kind of religion I think can be very harmful to people’s mental health. So I just want to be upfront about that. Religion is not some perfect thing that’s always going to be helpful. So I want us to think about David, and his anxiety, and think back to a few episodes ago, when we talked about how David’s anxiety was born. It was born to protect him from rejection, especially rejection from his parents. And for most of us with anxiety or depression, this same fear plays a big part for us too. We are afraid of being rejected, because, as far our brains are concerned, rejection leads to death. And so, as parents, one lesson we can learn from this is that it’s important to show our kids unconditional love and acceptance. But, we are human, we mess up, we get mad, we do things, no matter how great of parents we are, that send a message of rejection to our kids’ brains. There are no parents who give their kids perfect, unconditional love. But there is one being who does: God. And even if you don’t believe that God exists, you still can acknowledge that the belief in a perfect being who loves you perfectly, no matter how much you screw up, no matter if everyone else thinks you’re a complete failure, that belief has the power to calm your panicking amygdala. Because no matter what happens, you can never be rejected by God. And I think it’s important here to say that this is probably a very different understanding of God and Christianity than some of you are familiar with, especially if you hear people talking about how if you do this or don’t do that, then you’re going to hell and God hates you. Well, there’s a whole bunch of really intelligent Christians, I’ll mention their podcasts at the end of the show, who don’t believe that. Listen to them, and you’ll hear that God is a perfect parent, that he loves you no matter what you do, and that he will never be disappointed in you or yell at you. He will just say, “yeah, you made a mistake, but I still love you just as much as I did before.” And, I’m just going to say it again, because I think it’s a really big deal: When you’re having anxiety or depression, you can tell your amygdala, “I understand you’re afraid of being rejected, but I can never be rejected by God.” And if you really believe this, then it will help your amygdala calm down, and your anxiety or depression will calm down with it. And so what does this have to do with David? Well, David is in one of the most important stages of his life for faith development. The teenage years are when a lot of people really make their decision about God. Think about it, until adolescence, your brain is just not equipped to really decide whether or not you believe in God. And so when David is 16, and is forced, really in his confirmation class, to think about God, it’s the first time in his life he’s really ever asked himself that question: Do I believe? And as adults in our kids’ lives, no matter what belief system you have, it is extremely important to ask our kids questions faith, and then to just listen. In these conversations, the less we adults talk, the better. Because another thing that’s happening for teenagers, is that they’re trying to figure out their identity. And if you try to tell a teenager what his identity is, he’s probably just going to reject that for no other reason than that you’re trying to force it on him. And it turns out that identity is really important, not just in terms of which religious group do you belong to or not belong to, but it’s crucially important in the deepest meaning of faith, no matter what the religion. I was listening to a guy talk about God and faith, and he said, when you think about the question, “who am I?” what comes up first for you? Is it, “I am a parent or I’m a friend, maybe it’s I’m an engineer, or a teacher, or maybe it’s I’m black or I’m gay, or I’m Chinese, or maybe it’s I’m kind or athletic or hard-working. Or is your answer, your first answer: “I am a child of God.” What he was really asking was, what’s most important in your life, what is your primary identity? Your family, your career, your race, nationality or is it God? Because if you believe in God, but he’s not the most important thing, even more important than your family, your friends, your career, what he was saying is that you’re not doing it right. And for me, and I think for most of us, my initial reaction was, wait a second here. I believe in God, I go to church, I pray sometimes, and now you’re asking me to make God more important than anything else in my life? More important than my family? I don’t know about that man. That sounds extreme. And I’ll tell you, I’m still wrestling with this now, but I can tell you that I think I get it. Because if the most important thing in my life is my family, then when things aren’t going great with my family, that’s going to really bring me down. But if God is the most important, then, when family life gets tough, it doesn’t hit me as hard, and I’ll be able to be more mentally healthy with my family, and more supportive to them when they need me. So, essentially, what this argument is saying is that faith has the power to bring about a deep sense of security and calm, even through really tough times. But most of the benefits don’t come if our primary identity is in something other than God. Let me give you an example: For many of the parents I work with, their primary identity is as parents. This means that when things aren’t going well for their kid, deep down, they are afraid their kid will end up a failure, which then means they’re a failure as a parent. And if their primary identity is their parenthood, then failure as a parent is very scary for their amygdala. So they get very anxious or angry, and try harder to control their kid, to stop them from messing up. And the harder they fight for control, the more they push their kid away, and the worse things get. And so it sounds like I’m making an argument for an all-or-nothing mindset about faith. If you’re going to believe in God, then you have to be all-in. Well, yes and no. But what I’m really saying is that all-in is the goal, but that doesn’t mean you’re going to always be there. Most of the time, I’m aiming to make God a bigger part of my life, but there’s also a part of me that crops up sometimes that thinks he probably doesn’t even exist. So, what I’m really trying to say is that if you want faith to have a bigger impact on your mental health, then you need to decide what’s the goal? Is it to make God the most important thing in your life? Or is something else? And if you choose to make God your primary identity, then you can just talk with him. And it might sound something like a conversation Sheila had with God during Tom’s depression. She said, God, I don’t know what to do. I feel so angry and miserable so much of the time. I’m so worried that Tom’s depression is going to be horrible for David. I want to quit work to be home with him, but we need to pay the bills. I want to make Tom go away until he gets over this, but I can’t do that either. Tell me what to do, please. And using her mind’s voice, God said to her, “Give David to me, and I will protect him.” And she imagined letting David go from her tightly wrapped arms and releasing him to God. And her anger and worry didn’t go away, but a calm security entered her body that gave her a small sense of peace. And without that, she may have had a breakdown herself, which would have made things even worse for David. And so the most important thing you can do as a parent, or as a human being, to care for those around you, is to loosen you grip on them. And the only way to do this, is to tighten your grip on God. We humans need something to hold tightly. And for most Americans, we choose our families, our friends, or our jobs. And the thing about choosing to make God the most important part of your life is that it does not diminish your relationship with your family, friends or career, but it enhances it. Because when you don’t worry as much about making people mad at you, or about screwing up a big project, you’re more free to be yourself, and just a happier, more productive person. And so at the dining room table, on that Wednesday night, David unleashes his angry rant against the Catholic Church. And where most parents would try to steer their child in a more rational or mature direction, Sheila just hears God say, once again, “give David to me.” And she remembers, she can’t control him, she can’t make him believe in God or be a Catholic. And so she loosens her grip, and she does not argue with him or point out why he’s wrong. She just listens, stays curious about his story, and when he’s done, she says, two of the most important words a parent can say to their child: “I understand.” If you want to hear more people talk about God in a way that will help you or your teen’s mental health, listen to the podcasts put out by Mercy Vineyard Church in Minneapolis, and by Tim Keller, who’s at Redeemer Presbyterian Church in New York City.
Just for the podcasters - a little bit extra from the acerbic wit of London's longest-serving talkshow host!
David: What are the rules for prosperity in the new economy? How do you apply conventional sales skills to an online world? And is it really possible to sell from a mobile device? Those are just three of the questions that I intend to ask our special guest today, Andrew J. Cass. Andrew, welcome to DMR. Andrew: Hey, David. Thanks for having me. Good to be here. David: Well, thanks for joining me. Well, Andrew was a seven-figure producer in two separate sales businesses before the age of 35. He's also one of the few Dan Kenndy certified business advisors and co-founder and president of RemarkaMobile. So Andrew, do you think that new web-based businesses are forgetting about learning sales skills? Andrew: I do actually because what's funny today is a lot of people I think like to hide behind, they like to hide behind the internet today or hide behind the web today and sort of sell virtually, which I think you can to a degree. But I think, the more you try to remove the actual person-to-person touch that we came up with or at least, that I came up with. You're leaving a lot on the table. David: Right, okay. So sales skills then definitely apply in the new economy? Andrew: For sure. I think when we talk about the new economy, we're talking really internet, the internet economy, the mobile economy that we're in right now. I think that we rely too much on technology. I know, I don't and you probably don't, David, that's why we're here. But I think, many people do. I think they rely too much on technology and it makes them a little bit lazy and they start to forget that at the end of day, people buy people and people trust people. And they do business with people they like and trust. We have to kind of keep the person element in the sales process as much as possible. In my work, I like to talk pre-internet and post-internet since as you mentioned before, I was a young stockbroker, investment banker in New York when I came up when I was 23, 24 years old. We only had a telephone, that was it. There was no internet, no video, no Google, nothing, just the telephone. We had to make a lot of dials and do a lot of prospecting, so we really learned the art of telephone communication. Then post-internet, as I got online and built an online information information and internet marketing business, I was able to maintain the communication skills I had and then, blend them with technology; automation and leverage. I think if you do those two things, you can build an amazing business. But what I find today is people do one or the other. The old school tends to stay old school. The new school doesn't want to hear from the old school. They just want to be new school. Like I said before, they sort of hide behind technology. It's a delicate balance and it's a balance that very few businesses even explore.
David: What does it take to be a productive writer? What is the most common mistake that business writers make? And if you produce more quantity, does that not reduce your quality? Those are just two of the questions that I intend to ask today’s special guest, Bryan Collins. Bryan, welcome to DMR. Bryan: Thanks for having me on. David: Well, welcome. Bryan is a writer who lives an hour or so outside Dublin, Ireland - and right now he’s just published his new book ‘A Productive Writer’. Bryan, do you think a great writer should focus on creating great writing only or can a great writer also be a great social media marketer too? Bryan: That’s a very good question, David. I’d say that if there’s two things that a writer needs to do today - particularly an online writer - they need to spend firstly time creating great content and writing and they also need to spend an equal - if not more time - marketing and sharing that content. There’s no point going and locking yourself into a cave and producing a great piece of work, and then leaving it sitting there and hoping that somebody comes along, sees how great it is and tells all her friends. You’ve to put your work out there because there’s so much noise now on the internet, there’s so many people producing high value content, that you need to go out and you need to tell people stories about your content, about your writing, how it’s going to benefit their lives and how it can even change them. I think Seth Godin even says that all great marketing is storytelling and great writing is storytelling too, so there’s definitely … great writers should do both. David: Does that mean that a great writer can't just focus on the writing and that it’s not possible to rely on other people to do the social media marketing on their behalf? Do you think to work best on social media it actually has to be the writer that does the interaction on social media as well? Bryan: If you are Stephen King or if you are a John Grisham … a massive publishing house behind you then you can probably go off and do whatever you want. I think the rest of us maybe have to go off and spend some time marketing our writing. I think even Paulo Coelho has over a million followers on his Twitter handle.
David: Can social media really be 'done for you' or do you have to retain control over your own voice? How do you use Instagram and Pinterest as marketing channels and why are some businesses using Squarespace instead of Wordpress? Those are just three of the questions that I intend to ask my especial guest today, Jenn dePaula. Jenn, welcome to DMR. Jenn: Hello, thank you for having me. David: Well, thank you very much for joining us. Well, Jenn is the co-founder of Mixtus Media, a Nashville-based social media and content marketing firm that specializes in serving authors and book publishers. Jenn, I'm interested, why do you actually end up focusing on the publishing industry in terms of where you offer you services? Jenn: Well, we initially started, I got my career started off in the music industry back in 2000. 2000 was really kind of a turning point for the music industry in turning into a more digital focused industry. I think they clawed and heaved their way up the hill of digital publishing and it seems like it's still going on just that battle of physical content which is the CD and just other items that musicians sell to the digital frontier. For the first 10 years of my career, we were really going through with musicians how the best market their content, their music to in a digital form and just the struggles and the lessons learned through that, we started noticing that our authors are going through much of the same thing. Over the last few years, just with Kindle coming along on the Nook and all these other digital devices for people to consume books, they were going through many of the same struggles that musicians were going through even five years ago. Through our experience with working with musicians and obviously the book world and the music world are different beasts, but they serve an audience that's consuming their product digitally. It's really, it's been an education not only for publishers, but also for authors as well because they aren't used to having to market themselves. They aren't used to having avenues such as social media and blogs and other digital ways to connect with people. Usually, they just had to hand off their manuscript to a publisher and that was that.
A candid interview with Comic-Con's Director of Marketing & PR regarding the rumors about Comic-Con International's possible change of venue Barry Robb - www.uglycouchshow.com February 28, 2010 Every summer for over 40 years, geeks of all walks of life have descended upon San Diego by the tens of thousands to attend Comic-Con International, a non-stop 5-day mega-convention celebrating comics, movies, pop culture and the visual arts. It's almost a required coming-of-age pilgrimage for any fan of pop culture. And for 40 years, San Diego has proudly hosted Comic-Con and made welcome its 125,000+ visitors, but recent rumors and speculation about the host city of choice being subject to change have left long time convention attendees wondering where they will be going on their yearly vacation after 2012, when the convention's contract with the San Diego Convention Center expires. The San Diego Union Tribune reported that Los Angeles, Las Vegas and Anaheim have reached out to CCI in hopes of luring the convention away from San Diego with promises of more convention space, more hotel rooms, discounted rates for attendees and more. However, San diego area businesses are making their own efforts to keep the massive convention right where it is. Comic-Con organizers are expected to make a decision about the future of the con within a few months. We asked David Glanzer, PR spokesman for Comic-con International, to help shed some light on these rumors. --------------------------------- Barry: Hey comic-con fans, Barry here from the ugly couch show. We're talking with David Glanzer, Director of Marketing and Public Relations for Comic-Con International. David, welcome and thanks for speaking with us. David: Well, thank you for having me! Barry: Comic-Con's contract with the San Diego Convention Center expires in 2012, and there's been some rumors online that Comic-Con might be leaving San Diego in 2013. Rather than listen to baseless rumors and speculations, we thought we'd go right to the source and ask, what's going on? David: Well, you're correct; our contract expires in 2012. One of the things we've been dealing with is a limit in terms of space...We can't allow any more people in the building.. and we can't allow any more exhibitors to display on our floor. Those are two really big issues for us, primarily because that's our main sources of income. When you cap your source of income, but your expenses continue to rise, obviously at some point you're going to upside down. what's happened over the last few months is convention facilities in other cities have put forth proposals basically saying why they think their city woudl be a good fit for Comic-Con. Barry: It's true that San Diego is the nation's most walkable city. It's not uncomfortably hot at the end of july, and there's a nice breeze from the ocean. If that were the only factor, I'm sure the con wouldn't even consider moving, but unfortunately it's not. Can you tell us some of the pros and cons are, from comic-con international's perspective, of keeping comic-con in San Diego? David: You bring up a very good point, and that's that there's a great deal San Diego has to offer. One of our big problems is that we have a finite amount of space. One of the things we've done at the convention cetner downtown is to erect tents to try to maximize space behind the center. It's not inexpensive to do that, but we just need more and more space. Barry: I'm sorry; are you talking about the tents outside of Hall H? David: No, no, tents outside on the mezzanine level. A lot of people don't see them, but if you were to walk on the the mezzanine level or in the sales pavillion area, in the back there's some areas that are...I think any other convention would use that as a smoking area or a lounge area. In many of those areas we've erected tents to handle overflow from autograph signings or segments of registration or things of that nature. We've really trying to maximize the real estate that they have...one of things that we also did in 2009 was utilize one of the ballroom in an area hotel, and it seemed to work well. We has some programming over there, and our attendees seemed to not really mind walking across the street and that worked out well for us. We're looking at other ways to mitigate the issue of having to cap attendance. Barry: The main events auditorium has steadily increased in size over the last few years, moving from halls 6cdef, to ballroom 20, to enormous hall h. We've got some footage of fans lining up hours in advance, some days before, to see the presentations. Is there a possibility of expanding the main events room or even moving it to petco park across the street? David: Any of these things are things we're looking at. One of the issues we are faced with is hard dollars. When you use a facility that is not a part of the convention center, typically you have to pay for that. Now you're saying that...how much is something... can we defray the cost of spending x amount of dollars on this by increasing attendance, or exhibit space, how many more people do we have to get in to defray that cost... it really is a math problem. It's something that the city is putting a good effort forth to address. They've met with local hotels, they've met with the city itself all the way from the mayor's office all the way on down...they've put together a proposal as well that they hope will mitigate some of the issues we currently have. But I should say that these other cities have done that as well. Barry: It's said that Anaheim, L.A., and Las Vegas are attempting to lure Comic-Con International away from San Diego. What's been put on the table? David: I really can't. I don't think it would be fair to talk about their specific proposals. But what I can say is, each one of the proposals we've recieved really does attempt to address the concerns that we have, and that's everything from the size of the facility, the number of hotel rooms that are available, the issues of meeting space... Each proposal we've recieved, it's obvious they've put in a great deal of time, effort and energy in really trying to dissect the issues we are faced with trying to address those issues. And San Diego has as well. What we're really tasked with now is trying to find out which proposal best addresses all those issues. Whichever decision we end up making will ultimately have to be the one that is most beneficial to the event. Barry: 4 day passes for comic-con were sold out back in november, and single day passes for friday and saturday are already sold out. In the short term, is there a solid plan for the Convention Center to expand to meet the needs of the con, and if it does, will you increase the cap on the number of tickets sold? David: Yes, to answer your question first, there is...right now the mayor has put together a task force that looked at the issue of expanding the convention center. That task force said that it would be a good idea to expand the convention center. And that expansion is not just for Comic-Con. It makes sense for the center to expand so that they can hold not only large events but multi-events in the same facility. If you go to some convention centers around the country, especially Orlando and some others, there are these nice sized facility where you can have two or three events running concurrently and not really have to feel like you're overcrowded. So I think that could certainly help San Diego... while it may attrract a Comic-Con or other big event, they should be able to handle a couple of other smaller events at the same time too, which will keep the facility booked and will keep downtown businesses happy and of course the tax revenue from what people spend will help the city in the long run. now as far as the second part of your question- Barry: Well, let me expand on that real quick. In the San Diego Union-Tribune it was said that task force that you spoke of endorsed a $753 million proposal to expand the convention center by 1.27 million square feet, including 385,000 square feet of new exhibit space but they said that there's no guarantee that it'll happen. A question would be, is that based on whether or not Comic-con stays, or would it be something that they would do to get Comic-con to stay? David: Neither. I think Comic-Con factored into that. But I think it was only one of many different factors. Meaning that I think that the task force looked at the size of San Diego, the size of the facility, the fact that I think last year when we had an economic downturn most convention facilities had trouble with bookings, but San Diego did not, or not as much as other cities, and in fact San Diego had to turn away some conventions because they just didn't have the facility size. I think the task force loked at a bunch of different variables, obviously Comic-Con was one of them, but I don't think Comic-Con was the deciding factor for them. Their determination was that by spending this money, by being able to do this, it will help the city in the long run. And if it keeps Comic-Con in San Diego that's icing on the cake. The paper is correct in that, because the task force and the mayor have said that this is a good idea, this is something we want to move forward on, now there's different governmental agencies that have to address the situation, and part of that is the port district, ...where the money will come from for that expansion ...the nuts and bolts of making that happen. It's still potentially a long process. Barry: And the second part of that question from before was will you increase the cap on the number of tickets sold in the short term. David: In the short term it's depending on if we can alleviate the crowds on the floor. In our experiment last year of having a big ballroom where we had programming, we were able to pull a few thousand people off the floor at any given time. Right now three of local hotels are talking about letting us utilize some of their big ballroom space. If that ends up happening, if we're able to put a major program, or at least a lot of our programming in those area hotels, that has the benefit of dragging people off the floor. If that is the case, then we could be able to go ahead allow more attendees in, which, you know, could be a good thing. But we don't know if that will work. Some of these are unknown variables to be honest with you. If none of that happens, we will always be probably around 125 to 175 thousand people in the facility, and the reason being is, we have that finite space. That number can go up or down by a few thousand probably, depending on the configuration of the space. As an example, people say, "Well, exactly how many people can fit in the convention center?" that's like saying, "How long is a piece of string?" And the reason for that is because, if you had just one booth that was a 10 by 10 foot booth in all open space,well you could fit maybe half a million or close to a million people in there, but that's not the case obviously. And what happens each year is the room is configured differently depending upon the exhibitors who come or go, expand or contract their booth spaces. So it's always going to around the 125 but it may fluctuate a bit depending on the configuration of the floor. Barry: Is there any negative to splitting parts of the con up? Like, putting some events in some buildings and putting some events in others? David: Well, yeah, if we had our choice, we'd love to be in just one facility. That's the way it's always been. We've certainly seen and been to other events that have basically taken over part of the city. When San Diego hosted the Superbowl a few years back, the whole downtown corridor was superbowl headquarters. It's really interesting, when you are downtown for Comic-Con, you have that same feeling, although it isn't offical. Meaning, I can walk around or any attendee can walk around and you will see a good majority of the people in the downtown area wearing badges or carrying bags. Barry: Yeah, I feel like I'm at Comic-con when i'm walking around the Gaslamp. David: Exactly. The thought now is, well maybe because we don't have the space in the facility, maybe we go ahead and do specific programs at different hotels, and thereby making comic-con feel even larger still, benefiting from those hotels and restaurants and meeting spaces and things like that...that's the idea. But will it work? We don't know. That's what we have to weigh right now. What is the best scenario when you have other facilities saying, "Look, you can try that experiment, or you can come our facility, and everything can stay in one building." Barry: Ok. Well that's all the questions we had for you, David. If there's anything you'd like to say to the Comic-Con fans out there before we let you go... David: Thank you for your support! Honestly, I think it's amazing that this has gotten as much press as it has. One of the things that I think is really heartening to all of us in the committee staff and the board is, there's a lot of support out there from the fans. It's amzing that this show is 40 years old and now for the first time really we're being told how much we're loved and how much the city wants us. we really appreciate that. And that is primarily because of the people who come to our convention. We have a unique event, we have an event that is homegrown and it is what it is because of the people who come every year to it, and for that we're incredibly grateful. ----------------------------- For more information about Comic-Con International 2010 including our Comic-Con Survival Guide, visit http://www.uglycouchshow.com