- so what you canget on podcast. this guy is such awealth of information. his media company, vaynermedia, is probably the hottest company out there in the worldof digital marketing. we are so excited to havehim with us today, ladies and gentlemen, pleasewelcome gary vaynerchuk. (bright music) - thank you.
(applause and cheers) by show of hands, how many people here have no idea who i am? raise it. (laughter) yup, that hurts. so with all thoseaccolades and all the things that go on i was aware of thatsituation so what i'm gonna do for the first 10 minutes hereis give you a little background. i apologize to those who've seenit a few times but i think it
matters because so many of youdon't know who i am and i think the biggest thing that mattersto me is to create context with you because once you understandwhere i come from, how i got to this moment i think it's gonna deploy and matter to a lot of people in this room. and i think it maps to where i think the opportunity is for so many of you in themarketplace today. so i was born in belarus,in the former soviet union. i came to the uswhen i was three.
i lived in a studio apartment with my family in queens, new york. (cheers) big ups. we were super poor. there was eight familymembers in a studio. it was really tough. my dad got a bunch of side jobs. it was the late 70s for, this is a young crew, but the economy wasn't good.
and my dad got a job as a stock boy in a liquor store in clark, new jersey. he eventually became the managerof that store and we moved to edison, new jerseywhen he did that. i like this cheering everything. i can get into this. when i moved toedison, i was five, six. that's when i started myentrepreneurial career. when i was six years old i hada six lemonade stand franchise
which meant i was goodenough that selling a.k.a. manipulating my friends intostaying behind the lemonade stands all day while i would go around and make signs and put them on trees. i'll get back tothat in a minute. i used to ride my big wheelsbike at the end of day to pick up my cash like i waslittle tony soprano. so that was how it started. it was good.
actually, you know what? i think a lot of you would appreciate, this is actually a better way to go. i always tell the story as thatbeing my first business 'cause the truth is i'm actuallyembarrassed of the first business that i ever reallydid have but six months prior to that business i started aseparate business which was i went in to people's yards i ripped their flowers out of their yard i rang their doorbell and i sold it back to them.
great margin. and the reason i wanted to tell you this story is i'm about to get an on the backend of this talk into a lot of warm and fuzzy feelings, a lot of community, a lot of technology but i want to makesure everybody knows that i'm very grounded in being asalesman and a businessman but i think there's a good way todo it in a bad way to do it. i think it's a bad way to rippeople's flowers out and sell it to them.
i think i got better along theway and i think i continue to get better and to be very honestin the competitive landscape that so many of you play intoday, i actually do believe the good marketing and sellinghas become disproportionally valuable in a sea of bad andit is the separating point. the problem is is that 95% ofthis audience and look, this is where i start getting unpopular,i did a lot of homework before i came to this talk because i knew it'd be a lot of people. i was excited about it.
so been doing some homework over the last three or fourmonths actually. following the hashtags,following your social media presence and truth is punchlineis i think 95% of the people here are just not working hard enough. i think a lot of peoplelike to cry about stuff. oh, facebook changed the algorithm on you. tough. it's the market.
that's what happens. we'll get to that in a minute.my entrepreneurial career took a great shift wheni was 12 and 13. when i was 12, 13 i was selling baseball cards in all themalls of new jersey. for all the 35 to 45-year-oldmales probably in this room you might remember big,big deal back then. it was the, it was thepokã©mon go of that moment. and it was great and listenwhen you're making two to
$3000 a weekend and you're 14 years old and you're putting, you know, $25,000 in cash underyour bed and you're not selling weed you're doing a good job. so that was probably,my goal in life is to buy the new york jets which is gonnacost me several billions of dollars but i do believe thatthe richest i will ever be in my life is when i had $25,000 wheni was 14 because you just don't know what to dowith all that money. and so, that was great andthen my dad ruined my life.
at this point my dad, verymuch my hero with my mom. i am perfectly parented, a newbook that i'm writing how to raise an entrepreneur. my dad ruined my life i was making $2000, $3000 a weekend, my own boss. living large and turned 14 and oldest son, immigrant family born in the old country. my dad now has a small liquorstore in springfield, new jersey
as he saved up all hismoney and worked hard. he drags me into the businessand he pays me two bucks an hour to bag ice for 15 hours a day. how many people here by show of hands saw the movie"the goonies"? (cheers and applause) great. so for two years of my life,every weekend, every summer vacation and i mean all of them.
how many of you remember thelast day of school you would have a half day?recall, right? my parents were so gangster theywould pick me up on my half day of the last school anddrive me to the store to work. like zero days,zero vacation days. i would work all the timeand for two of those years the reason i referenced "the goonies" basically i was chained to the basement of my dad's liquor store like i was sloth.
finally, i turned 16. i was allowed upstairs. and something very interesting happened. it was the early, early-ish 90s, i start realizing people were getting into wine. and wine library waswhat i had in mind. what happened wasmy dad's store, shoppers discount liquors, was in an affluent area of new jersey so people were
coming and asking for wine eventhough we sold beer and liquor. and finally somewhere aroundwhen i was 16 six months in to being upstairs somebody came inand asked for a bottle of wine. then somebody else came in andasked for that bottle of wine. finally, the fourth guy came and i said, "what's going on with thiscaymus cabernet?" he said, "it was just named "the wine of the year by thewine spectator." i said, "okay," people keptcoming in we were sold out.
coming in, finally 20people have come in. they're all coming in, wedon't have it, they're leaving. seems like a bad business model. i say to myself, "you know what? "the next person that comes ini'm gonna take a back order." right? we don't have a back ordersystem but i go to school on monday anyway and i won't have to deal with it. guy comes in goes,"do you have the caymus cab?"
i go, "no but i'lltake a backorder." he goes, "great," name,address, phone number. i go, "how manybottles would you like?" he said, "i'll take sixcases if you can get it." i said, "whoa, an alcoholic." i said, "six cases?" he goes, "yeah," hegoes, "i collect wine." and that was it. it's, you know, i love you guyslike smell something or hear a
song but you can bebrought right back to a moment. literally, telling you thestory, remembering how that guy said it, i remember what i felt in my heart which was the following. at that point, even at 16 yearsold, because of all of my success i thought i could runthe business better than my dad as any good punk entrepreneur kid should but i wasn't interested in selling budweiser or coors light or absolut.
i wasn't interested and i wassad 'cause i wanted to help because i was so thankful andgrateful of, by the way real quick, how many people are inthis room are an immigrant or children of immigrants? (light cheers and applause) it is such an advantage because i remember feeling so thankful to be able to be in thisamazing country. i was born, i'm abusinessman, right?
i'm an entrepreneur. i was born in the worst place in the world for that,soviet russia, and i came to the best place for that. so i remember i felt guilty. i wanted to give back to myfamily business but i wasn't interested and at that moment i remember thinking, "oh my god, ken griffey, jr., "michael jordan, frank thomas.
"caymus, opus one,chã¢teau lafitte. "same crap." and so, basically i deployedall my passion of learning everything about sports intolearning everything about wine and no 17 year old on earthshould know as much as i did about pinot noir and sancerre and that's because i had one huge advantage. how many people areparents in this room? (light cheering)
i want you to pay very close attention to what i'm about to say. my big advantage was i was a d and f student. i was a d and f student and thatwas very weird because if you're an immigrant in this roomyou know that when you come to america everything that you'retaught is education is the way out of our poverty. right? but i was a d and fstudent and i mean d's and f's. most people don't believe meanymore because of my success.
so much so that i have myassistant last week reach out to my high school, i'm getting myreport cards and i'll be posting them on instagram for youin the next couple of weeks. real d's and f's and again, if you're my age group, a lotof you are younger. you're lucky, right now, asa lot of you know, being an entrepreneur is cool. i take selfies. it's a trend.
people care when in the 90s itwasn't and school was the way out and so my d's and f'smade my teachers and my friends' parents think that i was going to lose. that i was a losing player andso it's so interesting to me that the reason i know i'msuccessful was somewhere around fifth grade i realized i didnot give a crap about saturn. algebra wasn't gonna do it for me. and so what i did was i deployedand honed my skills at 12, 13, 14, 15, 16, 17 so by the time i fell in love with the notion
of what that was going to be that was already ingrained in me. i thought i was gonna open up8000 wine and liquor stores, the toys "r" us of wine, sell the franchise, buy the new york jets. here's where the storystarts getting relevant to you. i go to college, i'm playingmadden '95 in my dorm room, dominating by the way, my friend runs in and he says, "you have to come and see this."
i finish my game, i walk intothe room and there are eight 18-year-old dudeshanging around a computer. now for a lot of youngstersin this room, you don't recall this, i was 18 years old at thispoint and probably spent less than three hours on acomputer in my life. by being a d and f student andgetting an f in computer class i was able to stayoff the computer. right? this is 1994,i go in this dorm room. there's eight guyshovering around a computer.
i hear for the first time in my life (mimicking dial-upmodem sounds). 'member that? my friend signs on i say some profound thing like, "is this the informationsuperhighway?" my friends load up an aol chat room. they type in asl. there some35-year-olds in here. that was a snap back in the day.
we talk to make pretendgirls for five hours. we were for three of those hours make pretendgirls ourselves. we're doing our thing, i literally get my turn. we're like hanging out, like forthe youngsters in here, we hung out and watchedpeople on the internet. i got my turn. i get on there in eight minutessomehow i end up on a message bulletin board in aol that's
selling and buyingbaseball cards. in 14 minutes i make a transaction. within 20 minutes of ever beingon the internet, i said, "my god, i don't need toopen up 8000 stores. "i'm gonna do something on this." 18 months later i launched oneof the first three e-commerce wine businesses inamerica called winelibrary.com. don't clap. here's why: the first 18 months that that site ran,
that site cost $15,000 to build. we were small family business. $15,000 to build that website,in the first 18 months, 'cause i was still at school, i wasn't fully back at the liquor store, in the first 18 months on that$15,000 investment in 1996, '7, '8 internet world where mostpeople still weren't on it that $15,000 investment brought back $480 in sales.
i don't know how manyof you have a soviet father-- but sasha vaynerchukwas not happy with the roi. it was one of the more important lessons i've learned in business. the disproportional reason somany people in here will not win, let's just get right tothe chase, the disproportionate reason that most people in thisroom will not win is actually not the hard work which is whati'm gonna talk about probably for next 45 minutes.
it's your lack of patience. (applause) for some unknownreason when people go into ventures like this and otherthings they somehow miraculously think it's going tohappen in five minutes. that you're the one person inthe world, whatever you guys call your big club and putposters of each other up on you think you're going to be in thatcircle in five minutes for some reason 'cause you're the mostcharismatic, you figured out
some weirdsystem, you've got it. and the lack of patience is whathurts so many people and so by losing so much money in thosefirst 18 months, i had walking into a system that i had to be patient. i had to build. i had to work from 22 to 30years old for eight years in my 20s i worked 15 hours a day, seven days a week in mydad's liquor store. today, with all things thathappened to me, i get emails on
facebook from friends i went tohigh school with often starting with, "gary, you're so lucky." i reply to everysingle one of them. all of them with the reply of an opening line first, "jan, great to see you again.you look great. "kid's super cute. "p.s. i am super not lucky. "let me remind you, rick,remember when we graduated "college and you went to thejersey shore every weekend and
"hooked up withchicks and drank beer. "i worked." "rick!" in those 15, 18 hoursa day out of school i grew my dad's business from a three to a$60 million business which meant i was 27 years old running a$60 million business and i was paying myself $54,000 a year.you know why? 'cause i'm patient. because i don'tneed a cool watch.
i don't a fat whip. i want to build something and one of the other biggest things that pisses me off abouteverybody that's been crying about the facebook feed. let me tell you what happenedwhen the facebook feed changed. the single, follow me here,the single greatest advertising product in the last50 years was built. but instead of taking a thousandof the $6000 you've made doing this buying and facebook ads
with it and then making$12,000, you cried. thank you, have a nice night. let me tell you how i built that business and what i want you to get out ofthis talk that brings you value. the only thing that we are allconnected by no matter what you do for living inside of thisgame, other games, if you go on to something else. you start a shoe companyremember this if you remember anything from this talk this ishow you will win, i'm convinced
it's been the samegame for everybody. patience, hard work, talent matters. nobody's gonna watch yourlifestream if you suck crap. all those things matter. all those things matter,however, this is the one thing that is my religion in thegame that i play that brings disproportionate value which isthe following: remember the one thing that connects all of us,the one thing that binds us all what you do for living, yourrelatives, your friends, you can
all kumbayaaround this one thing. the only thing we all want and fight for issomebody's attention. we all have to get yourattention before you tell me how great your system's gonna workor how awesome and delicious your product is or how greatyour abs are before you do any of that you need my attention. and what i do for livingis i day trade attention. i follow attention and the funnything about that game is you
can't be romantic about whereyou want the attention to be. you just have to reverseengineer where it actually is. let me explain. in 1997, when i launchedwinelibrary.com, i went on a mission to collect every singleperson's email that ever walked into that liquor store. and if i was out about at abaseball game, i asked for business cards and i want youremail and all and every day all i cared about in the world wasgetting somebody's email to put
them on wine library's email service. in 1998, i had 150,000people on an email newsletter. how many people here have doneemail marketing in their career? raise your hands. hi, quite a few. good, listen to whati'm about to tell you. in 1997, i had 150,000 people on my email newsletter that had 91% open rates. just to let everybodyunderstand, right now, if you're
in the 30s you're a hero but itwasn't because i was so great in 1997, that my content was sogreat, it was that nobody else was doing email marketing. i understood where the attention was and i understood that it was underpriced. while other people did directmail and billboards and radio and did catalogs to your house, i understood that email was emerging. i was going to gather.
how many people had emailback in 1998, 1999, 2000? so for youngsters, watch this. do you remember how wetreated email in 1998? we read every single email and every word like it was a god damn letter. and because i had that attention, i was able to build a very big business. then i moved on. there something called google.
i looked at it, i saw this new ad product where if you searched for a wine you could buy the first result, that was insane to me. i thought that was incredibleand so i bought the word wine and many other words likecabernet and pinot noir the day google adwords started. how many people here have donegoogle adwords in her career? very nice. i owned the word wine the daygoogle adwords started for five
cents a click for nine months before anybody bid me up. and that worked. and i kept going and then mycareer took a massive change that i think will really impacta lot of people in this room if you follow this blueprint. there was a new website out that i was intrigued by it was called youtube. everybody in the world was really not ready foronline video.
it hadn't happened yet. i'd been wanting tolike play in that space. i finally saw the site youtube. it was couple months old. there's not a single video on youtube that had a million views yet. period, on the whole platform. so seven months after youtube came out, i started wine library tv
which is the first time i wasdoing content not advertising and the premise of theshow was very simple. i sat at my desk with fourbottles of wine and i had somebody videotape me drinkingit for 20 straight minutes. it was a great gig. and somehow a year laterhundreds of thousands of people watched me taste wine and givemy thoughts and what i did was i understood the winebusiness at that point. i understood mycraft at that point.
how many people here have afriend or relative that is fairly into wine?raise your hands. so you guys know exactlywhat i know which is the second somebody gets just a little bitof wine knowledge they become a straight jerk off. you're drinking the wrong year.shut up. so what i did was, by knowingthat, i talked to people about wine instead of down to them. i talked about wine the way itactually smelled and taste to me
instead of the words onthe back of the label. i called wines, you know, thisreminds me of what a racquetball smells like when youfirst open the container or if i ate an entire pack of big league chew and swallowed it this is what this tastes likeor when it didn't go as well if you're at a farm and a sheep farted in your face, this is what this wine tastes like. what i'm about to tell you and i'm noticing some
people are in to notes this isa very important moment of this talk when i asked my stock guyto go to best buy to buy the camera for wine library tv whilehe went to the store and was coming back what i thought i was about to sit down and do in february 2006 was build the qvc of wine. i was gonna be on camera andi was gonna sell you wine. and then the firstepisode happened. literally the first one.
the light goes on and because i understood where the internet was going, i realized, my god, this is going to beonline forever. and this is gonna work. and i'm gonna get big and if i go to a party and somebody says what do you think aboutthis wine and i taste it and i'm like terrible and they go butyou said it was awesome on wine library tv, i could be crushed. and so, from the first episodeof wine library tv,
i separated the content from the business. in fact, i had so many hard-corefans, one kid at mit who loves math and data mapped my ratingon every wine on that show and on that show over a thousandepisodes that i did over 5 1/2 years i paned 71% of the wines that were on that show. wines that i was selling in mystore i was telling you not to buy because i realized it wasbetter off for me to become america's wine guy then it was
for me to sell you an extracase of pinot noir. the reason i want a lot of you to pay attention to this because over the lastweek as i've been looking at the instagram hashtags for beachbodyand this summit and things of that nature when i've gonedown the rabbit hole of your instagram accounts and yourfacebook fan pages that is not the percentage of whatpeople are putting out there. the majority of it is whati would call a right hook. i wrote a book calledjab, jab, jab, right hook.
give, give, give and then ask. put out content that actuallybrings value but don't be scared to ask, you know, the funnything is you would think based on the tone that i'm talkingright now that i wrote the book to get people tothrow more jabs. ironically, i wrote the bookbecause i saw a lot of people in 2008, '9, '10, '11, '12 do agood job on social media but not know how to askfor the business. they were justputting out content.
lot of people email me, they're struggling, i look like i'm like what's wrong? it's so good and i'm like wait a minute, have they not asked for the business? it's very appropriate to have people sign up, buy as long as you can provide so much value that you basically guiltthem into buying. basically, my entire life ispredicated on providing so much value that i guilt you intobuying my stuff but even more
importantly 'cause already good,i just kinda want you to come to my funeral, right? and when you think about thatand when you make that your strategy you go intoa different place. wine library tvchanged my career. youtube sells for $2 billion. i freak out and go jesus i'vebeen right about everything where consumers are going. this has to be bigger then justselling a couple more cases of
pinot noir and that's when i decided that i would invest in companies. i said the next time i feelsomething like e-com or email or google adwords oryoutube i'm gonna invest. i went to sxsw 2007, everybody was talking about this app called twitter. everybody thought was thestupidest thing of all time because who cares if you'rewalking the dog or eating pizza. i thought it wasthe future of email.
i invested in twitter. i made a video about it. facebook saw it, i spoke at facebook. i became friends with zucks. i invested in facebook and theni saw a bunch of high school kids playing on tumblrand i invested in tumblr. i'm rich. but why i tell youthat story is that's when my career started take,
i'm telling that story because i wanted to brag. but i'm telling you that storybecause that's what my career starts and my god what i do is day trade attention. now i'm gonna make thistalk very valuable to you. i'm to go through everythingthat i know you're going through platform by platform and i'm gonna give you really good advice. i run a company rightnow called vaynermedia. we're $100 million a year
strategy and creative and media agency. we have under armour and toyotaand dove and budweiser and the biggest brands in the world paying us to sell stuff on the internet. let's start with a couplethings that you need to know. social media, it doesn'texist it's a slang term. social media is the slang term for the current state of the internet. if you're sitting in this crowdand still not devoted to these
platforms, you will lose becausethe only thing that people care about in marketing and sales that are smart and successful is attention. and if you don't realize thateverybody's attention is now in their phone you are notpaying attention to society. how many people in this room, inthis arena, how many people in this arena are always withinarms reach of their cell phone in every 24 hour window? look around.keep 'em up.
keep 'em up.look at this. we're becoming robots. we'll get into that later. over 50% of everybody's time in the world on a phone is spent on a social network. besides the games you're playing maybe pokã©mon go's changed that a little bit. besides the games you're playingand the things of that nature, this is where we live and foryou to sit in this audience and
disrespect facebook, snapchat,instagram, tumblr, pinterest all these platforms isan insane thing. more importantly,it's just beginning. everything we know, everything we play in didn't exist 10 years ago. how many people here are retiring within the next 10 years? and i don't mean you're gonna crush it and go live on an island.
i mean you'reold and you're finished. my man, you still look good though. i'll come and fish with you. this dude gets a pass forthe rest of you, you have to understand we are just starting. this is the biggestcommunication shift in our society since theprinting press. you have 50-year-old men sittingin this audience right now who texted a poop emoji last night.
what happens, you have to understand, is that when these platforms are formedwe aged down our society. how many people in this roomsaid they would never be on snapchat and now are?don't lie, lying is the devil. look at the hands. i want people to look round. stand up.let's do this right now. stand up, right now, stand up. don't get lazy on me.
you're supposed to be athletic. stand up, stand up right now if you not generally if you, if you said you would never be onsnapchat and you now are, stand up. if you didn't do that, sit back down. i need you to lookaround this room. i need to look around thisroom before everybody sits down because this is basically myentire keynote in visual form.
i am going to buy the new york jets on one thesis: i'm going to invest time and money in the places that you say that you're not going to be that i know you're going to be in. you can sit down. next year 50% more of this audience will be on that platform. there is so much opportunitygoing on and what happens is did i cry when my email newsletter
went from 91% to 30% over a decade? no, i did not. did i cry that i spentseven years building my twitter following to 1.3 millionfollowers by, as many of you know, how many people here havei replied to on social media? one by one by oneby one and engaging. did i cry that when i had 5000followers on twitter and i tried to sell a book or wine orsomebody to do something with me that i can get more peoplewhen i had, let's really call it
right, when i had 50,000followers on twitter, i could get more people to dosomething than i can today at 1.3 million followers on twitter. it's why when you roll up atme and go i have this many followers, i don't give a crap. it doesn't matter howmany followers you have. it matters how manyfollowers you have that care. you're not paying thebills with 100,000 instagram followers that youbought on ebay, jerk.
so, i didn't cry thattwitter was losing its grip. that was a big run for me. that's where most of youmet me and understood me. that's where i built my brand. it was huge for me but in 2011and you can go watch the videos 'cause they're out, there i was 30 pounds heavier and pretty angry thattwitter was going away. i could taste it. the attention was slipping.
even though i had 700,000, 1.1 million followers i was losing it. i could tell and so i madeinvestments in where i thought the platforms were going. some worked. instagram, snapchat. some didn't vine, socialcam butthe one thing i wasn't crippled by was putting in the work. the one thing i wasn't crippledby was putting in the work. and let me tell you the part ofthe work that i put in that
i think a lot of youneed to consider. on the flight here this morningi looked at the last 50 tweets and profiles of people inthe audience right now. on their instagramaccounts they put out content. 15 people comment. 11 people comment. 29 people comment. 67 people comment and of the 50 people i audited to get fresh data for this talk not one,
goose egg, 00, robert parish, not one, not one of the 50 people in this audience engaged to one of the people that left a comment. not one follow-up. zero because we've become, ina social media world, pushers. we talk but we don't listen andthat is where all the action is. if you take one different tactfrom this talk and i'm doing this selfishly 'cause i wantyou to email me in a year 'cause you're gonna make more money.
and i want you to say thanks. if you do one tactical thing,we're talking theory, i'm giving you tactical. do me a favor instead of goingon a 20 week ab program or you want to get your butt up andsquat or whatever instead of that program do my program reply to every single person that leaves a comment on any socialmedia that you put out for one year and watch the money grow.do that plan.
problem is that takes work. problem is to win you've gottastop watching entire seasons of "house of cards." that is the variable butthe attention is there. crying about facebook, let metell you about 50 people that jumped on snapchat in januaryand are making 10 times the money in whatever gamethey're playing because they're arbitraging snapchatwhile facebook's going three. crying about facebook, be abusiness and not be an income
eater instead of buying a nicething with the money you make from this, why don't you takethat money and deploy it against facebook ads because the wordwine was five cents a click when i started and nowit's nine bucks. and a three bucks it was goodand at seven bucks it wasn't as we sit in this arena today rightthis minute the number one way that i would build every one ofyour businesses is facebook ads. i love snapchat. i love instagram.
i love a lot of things. the number one guaranteed wayfor every single person in this room to make moremoney is facebook ads. the problem is a lot of people in here are headline readersand not practitioners. you have opinions of facebookads but you never really run a campaign at scale and sothat to me is fascinating. and, by the way, you know when i do these come talks especially in a big room like this, i'mnot gonna be able to answer
follow-up questions, everybody always asks me, "okay, gary you got me. "you were so great energy. "you're super handsome and i'msuper pumped and i really want "to do this and so what do i do?" so i'm gonna tell you what to dooff of anything you hear from me in headline and you want to goget the details like again, and i'm gonna pound it intoyour face until you succumb, facebook ads will make you alot more money if you deploy the
ads and if you learn it whichmeans 27 to 30-year-old males that live in omaha, nebraskathat are into fitness. there's a lot of skip, omaha, what up? (laughter and cheers) whatever you decide to target, i feel like just randomly saylas vegas, nevada,-- chattanooga, tennessee--(cheers) chattanooga is like, "us?"
"can't believe he said that." facebook ads,facebook ads, facebook ads. let me tell you the one thingthat you need to do off of this talk if i talk 'cause when i get in to other things like musical.ly and other places and you're gonna be what the hell is he talking about? there's a site you should go toafter you hear things from me if you want to get moredeeper information on it. i'll let you get your pens it's
g-o- o-g-l-e, google. do you know how many of you pissme off so much when you come up to me and say, "gary but i don'tknow how to run instagram ads." figure it out, peter. like what's the matter with you guys? "gary, i didn't grow upwith this social media stuff. "i don't know what to do."
hey rick, you didn't grow updriving, you figured it out. and so what does this isall really come down to? it's very, very basic if youlook at every business that is ever succeeded, every single one of them, there are couple of core principles. first of all, your product. if your product sucks the greatest marketing in theworld will not fix it. right? you guys in this model are notin charge of that so we need to
move to the next thing. let's assume that's in placesure seems that way, right? let's go to the next place. attention. you have to know where it isand preferably you need to know where it's underpriced. do instagram advertising fouryears ago when taking a picture your butt and abs workedgood 'cause less people did it. now everybody does it,doesn't work as much.
when it's every third photo on instagram you're not going to stand out. it's not gonna work. you may, it may work for peoplethat like to look at it but they're probably not gonna buyyour stuff and so understanding where attention isand then trading it. to me, right now, the greatest deals in order: facebook ads, i'm sorry theorganic reach went away. let me just giveyou a punchline.
no advertising is free. tell me where the alternative? what are you gonna call yourlocal tv station and they're gonna run yourcommercial for free? what you call the chattanoogapress and they're gonna put a full-page ad for you andyour service for free? for the people that did googleadwords you guys think you've been hurt by thefacebook algorithm. go talk to the homies in digitalmarketing that used to rely only
on google when google wouldchange their algorithm and people lose $1 million overnightand go from the first page result of diet to page97 and have nothing. so that's not that hard-core. the other thing,facebook, facebook ads. number two best deal in themarket, instagram influencers. you may think of yourselfthat way and that's great. you may have a good followingbut so do a ton of other people and you can email them.
they all love to put theirgmail in their instagram profile because they can't wait for you to call them and offer them some money. sponsored content through influencers is anextremely strong arbitrage. again, it is my great beliefbecause i've spoken to so many and i've watched so many andi paid attention, we're not investing in our business. we want our time and our contentto drive our business but when
we get the money, wewant to go buy stuff. we want to go put in the corner. we don't put it back into ourbusiness and that is the grave mistake of so many ofyou in this room today. so whether you deploythat against facebook ads or instagram influencers both areunder enormous arbitrages that can build your business. because remember the content isthe variable, but you have your story, right, otherpeople have their stories.
the number one thing youshouldn't do is make up your story 'causethat's how you lose. so you need other stories. you've gotta figurethat out, got it? next, snapchat. telling you guys right now,you know, in 2012, '13 there's a video i have online where i yell at the audience and i say, "you're all gonna be on
"snapchat you just don't realize it," and i believed it and i believed itand obviously a lot of people probably remember in november,december, january of this last year and into this year thedj khaled phenomenon happened. brought a lot more awareness. over the last six months it isgotten so much older where as everybody thought it waslike sexting for 15-year-olds. i think everybody nowunderstands it's not. and exactly what happened infacebook i used to go and talk
in 2006 and '07 say facebook, facebook, facebook and everyone's like, "that's college," and i was like, "you don't understand." when an entire generation ofpeople take on a platform as they age up and their liveschange they drag people down. i called it at the timein 2007 the grandma rule. i felt that when the kids offacebook, the early 20s, would start having children and puttheir pictures on facebook that grandma was gonnasign up for facebook.
it's happening faster now. do you know what fastest growingcategory on instagram of people that take selfies are? 40 to 50-year-old women. cougars selfies. the way we are eating, the way we workout, the way we dress,everybody in here right now, if you can think of how old you are if you're lucky enough to have known your
parents at the age you are rightnow and you can think about them you were dramatically younger inyour behavior and appearance and the way you roll. that's what's happening. technology is bringing us down. down the age down-ification. and my friends, the stakes arehigh with what i'm talking about because what is really excitingis the next 10 years the snapchat, facebooks, these,
how many people familiar with musical.ly? which means you have an 8 to14-year-old girl in your life. these things are popping up. there's opportunities. there's a real opportunity. who's gonna be the first 20people here to figure out what old people do on musical.ly? i'm trying to figure it outbecause the attention's there and there's opportunity.
but no you debate dumb things like, "is it a fad? will snapchat behere in two years?" who gives a crap, it's here now. nobody cares when the number oneshow on tv "empire" or "american idol" is number one they run commercials during it and if it's canceled three years later who cares you run itsomewhere else. while you sit and debate issnapchat gonna be here or how long or or what to do on itwhile you sit and ponder your
squandering real money.real money. so here we arehalfway through the year, facebook changed their algorithm. a lot of you relied on that. the world a lot of people in theworld relied on that and what they've done for the first six months of this year iscouple different things. strategy number one, complain. strategy number two,(holds breath)
"they have to change it back,we're all gonna leave." yeah. instead of figuring out the ad product, instead of investing in what's going on insnapchat, instead of trying to create video content onperiscope or facebook live. either you're on the offenseor your on the defense and you gotta make that decision asyou sit here today which part of this game are you going be on. because what you have tounderstand is the attention of
the end consumer is shifting faster and faster. $90 billion spent on television commercials by my clients at budweiser, dove, toyota, allthese platforms, right? follow me here because this is gonna get really important to you. 'cause a lot people are like,"who cares, that's different?" it's very different. they spent a lot ofmoney on television. watch this.
by show of hands, how many ofyou in this audience now when you watch tv, outside of live sports, watch it on your time not when it actually airs? through netflix, hbo go,dvr, tivo, raise your hands. oh weird, everybody. and how many of you fast-forwardevery single commercial when given the chance? and even if you're lucky enoughfrom the advertiser standpoint
to get a commercial in front ofyou for let's say i don't know you dropped the remotecontrol off your bed. let's say if there even thatlucky, even if they're that lucky, the second a commercialgets on you grab your cell phone and you check your work, youlook at your social, you do not give attention towhat you're watching. attention,commercials aren't dead. people watch tv. people don't consumetelevision commercials.
got it? and then what really makes meangry with you guys and when i say "you guys" i don't mean you. i mean everybody on earth. is you do things as a businesswoman and man that is in your best interest but thenyou as a human when you live you would never succumb to that. you would neverclick a banner ad.
you don't want to bull crapsocial media ad either but you do it because that's what youwant to happen on your end but as a user you would never dothat and in that balance is where all the magic is. why does the tv numbersthat we just saw matter? why does the following to,guys, do you know that billboard prices are up 15% inthe last five years. billboards, outsidebillboards, right? meanwhile every person here whenthey're the passenger in a car
is looking at their phone. nobody's looking at billboards. just common sense, billboardsare not as, as a matter of fact by the way, real quick, when you leave this conference do me one favor. look at five people driving when you get to the airport and go home. just look into five cars, i promise you the following: every passenger is looking at their phone and
three out of the five driversare looking at their phone. you guys have scared me so much. i've been doing this formarketing, i'm now driving with two hands again for the first time 'cause i don't trust you jerks. my friends peoplearen't looking at billboards. they're not even looking atthe road and when we have self driving cars, that game is over. so where is the billions ofdollars from billboards going?
where's the almost trilliondollars, hundred billion dollars of television money gonna go? how many people here can't waitto leave this conference go home get to their mailbox and carefully go through their direct mail? you're weird, lady. tell me where those billionsof dollars are gona go? let me save you guysall a lot of time. in the next 5 to 7, 10 yearstens of billions of dollars from
the biggest companies in the world are going to go intothese digital properties. and the word wine goes fromfive cents a click to 10 bucks. and a facebook ad that i wasrunning 24 months ago the cost me $0.50 to reach a thousand people is now costing me four bucks. and right now you can competewith yourselves in that world but when coca-cola comes andwhen toyota comes and when the nfl comes, your numbersare not to be as good.
you're gonna be paying $88 aperson to sign up instead of $8. so you can either act now andgrab away or you can continue to complain, debate, ponder and noteducate yourself for you to be a self serving coach entrepreneursitting in this room and have not spent the one hour to eitherread or watch a youtube video of how to actually place a facebookad which i know, you know what, let's do this for each other. i'm gonna ask you something right now you're gonna want to do it.
how many people here, by show of hands, have neverplaced a facebook ad? it's gonna be, higher and howmany of those people haven't even spent one hour inlearning how to do that? please tell me thetruth for each other. it's unacceptable. let me rephrase, it's acceptableif you do zero complaining and you're super pumped. if you're happy, i got nothing for you but i'm just
very, very taken aback assomebody who really believes that you have tosacrifice if you want. guys, think about this for fiveseconds, you have the audacity to be here today with the ambition to live life on your terms. you sit here and youhave the audacity. you're gonna be the verysmall 1% of people that can live unbelievably on your terms. guys, the top 1% income makersin america, the bottom of that
number is $400,000 year. if you make $400,000 a year youare in the 1% of earners in this very competitive country, right? and that's a lot, a lot of moneybut i think a lot of people think $1 million is beforeit gets good, it's crazy. we have to reframeentrepreneurship. if you want $100,000 a year yousit in this room today and you have the audacity, i hopeyou're running facebook ads. you sit in this room and
you have the audacity to want to live on your terms. to not work for anybody else. to support your entirelivelihood on you, right? when i hear that and i know that you play candy crush and i know that you have netflix on 24/7 and i know that you've been in 48 parks this weekend trying to find pikachu,-- by the way, i believein work life balance.
there's a lot more to life. family, leisure, do it, right? but, but you want to live on your terms. you want to be able to do allthese great things and have all this stuff and you don't knowhow to run facebook ads and you haven't signed up fora snapchat account. do you understand as anentrepreneur you benefit from signing up for those accountsjust to learn even if it's not successful for you.
i signed up for socialcam,spent lots of hours, it died. i got nothing from it butwhen snapchat came along and instagram video came along,the things i learned by creating content on socialcam provided methe advantage that i needed to make all the dollars i have. and so, he said somethinggreat i'll talk to you outside. and so, i just genuinely, as i wrap up here, really want tofocus on work ethic. you can not go home from thistrip to all the lovely places
you live andmuster up more talent. you can get better atwhat you do, right? i'm not gonna go home and shootso many basketballs that i'm gonna be in the nba. right? i can become a better pickupplayer but nobody here's gonna go home and all of asudden become dramatically more charismatic, a better storyteller, you can't go home and do that.
you can get slightly betterbut your dna is your dna but everybody here can go home and work one more hour and work two more hours. it's just real. the reason i push it, and by the way, the whole like immigrants do well. it's 'cause that's what they do. they just don'tdo anything else. when you come with nothing andyou live in crap, you just work
every god damn minute and thenall of a sudden 13 years later something good happens. and i just genuinely want thatfor people to understand, look yourself in the mirror in yourhotel room tonight and say, "are you putting in the workthat supports the words that are "coming out your mouth?" my buddies always tell me,"i'm gonna be a millionaire." i'm like, "you're on sixsoftball teams, john." is your work ethic mapping the bull crap that's
coming out of your mouth? 'cause you talk a good game. you all talk about what yougonna do but then the work doesn't support it and so thework ethic is the number one variable because guess whathappens when you actually work three or four orfive more hours a day? because you can stillsleep your six, seven hours. you can still find an houror two with your family. you can have a 9-to-5 job and
still have plenty of hours to work. guess what happens? you watch the one hour youtube video how to place a facebook ad. you place the facebook ads. you look at the data. you realize what'sworking and not working. you find your moment. you find your segment.
you find your picture and videoand you start doing business. you know what else happens when you deploy five or six more hours at work? you reply to all the people thatsay nice things about you on your instagram account. you put in the work. you know what else happens when you were five or six more hours a day? you start making social mediaposts that look like this which
were very successful for me, "post your phone number, "i'm gonna call you and give you value." and then you spent fivehours talking to the people that decided to follow you andthrough a 18 minute conversation with them they decideto do business with you. but when you don't put in the five or six more hours,you don't. and you start relying onthings like ooh, the facebook
algorithm's been goodfor a couple of years. and then you wake up onemorning and zuck screws you. i have no interest inletting any platform, any move, any business dictate my futureor my family's future and the only way i know how to do that-- and the only way that i know how to do that is tofundamentally out work every single person in here. the work ethic matters.
it's the part youdon't want to hear. it's no different than thead he just showed, right? no. no, there's no system. no, you're gonna have someamazing facebook post that's gonna getting all these peopleinto your tree and then they're gonna do the work and you're gonna be in jamaicalaying there drinking rumchada. no, you know zero people on earth that have been
really successful thathaven't put in the work. zero, if they'vedone it themselves. if mommy and daddy gave thema crap load of money, cool. but anybody who's ever earned it put in the work and we live in a world right now and let's cut tothe chase it's been so great in our country for solong, we're soft. we complain about dumb stuff.lots of it. we complain, we're not grateful,
we think things are to be handed to us. let me give you a punchline. you're a minority? you're a female entrepreneur? your parents sucked? you grew up in abad neighborhood? something really bad happenedto you as a kid 'cause the neighbor's a weird dude? the market doesn't care.
it's not fun. that's no funespecially the last scenario. people have bad thingsthat happen to them. here's the sad part,the market doesn't care. the market doesn't care what'samazing about the american business market is if you'regood enough you win no matter what you look like. they will buy.it's what we do. it's been proven overand over and over again.
the problem also is ifsomething's against you, you can't speak english when you first come here, duh-duh-duh-duh, themarket equally doesn't care. it will reward you but itwill not feel bad for you. and it will not penalizeyou, which is unbelievable. we are so, so lucky and i justfundamentally believe that 99% of you in this room are nottaking full advantage of it because i'm gonna leave you with something very weird, do me a favor.
do me one favor from thistalk, go to a retirement home. i want you to go to retirementhome in the next six months and volunteer for one day and i want you to have 10 to 15 conversations. i'm gonna tell youwhat to look for. it's the scariest wordi've ever heard, regret. if you talk to 90-year-olds in aretirement home, they will talk to you about regret and whatthey talk about is the things they didn't do insteadof the things they did.
my friends, we are all goingto die and we got real lucky. i don't know if you've lookedto the math but the rarity of actually becoming ahuman being is unbelievable. i mean, you know, your mom could've went to go getanother glass of wine. the math forthat moment to happen. you could've been a tree. you could've been a rhino. you could've been a rock.
you're a human and wait a minute, punchline, you live in a america. lotto! lot!
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