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Kind: captions Language: en dude you you did that school deal right yeah no the school deal is going exceptionally well um we’ve you know five or Sixx the business in the last eight months break it down why do that deal it seems like you made a much bigger bet and I’m saying that because you started wearing the hat around whereas your other deals you don’t promote so I’m like okay he definitely like ponied up for this one and made a big bet on this so why do a SAS deal or you know why why do the school deal how how did you figure out the BET size and and was it like a butt butt clenching number and then what’s the plan well I’ll say this so breaking down to the into into the deal components any brand endorsement for me is by far the butt clenching component of it not the cash because you only have three four brand bullets that you can use where you’re going to promote without becoming a shell right and so if I looked at my audience I think about the people who best monetize an audience do percentage conversion times LTV that’s it so what percentage your audience you convert and what’s the lifetime gross profit per customer and that’s that’s it that’s the math the person who makes the most money wins and so the the big thing that I saw with my audience is that obviously we have a a very skewed you know monetization structure because we have portfolio companies where we just make a tremendous amount on like a handful uh and then everything else like kind of doesn’t matter um and do you even promote you don’t even promote those others right no I don’t no no the other no not at all that’s just but they come inbound though so that’s it still comes from content often um I’ll let’s put a pin in that because I have a whole bunch on Deal gen that I think you might find interesting but a huge percentage of my audience are people who want to start a business and that’s probably some of the people who listen to your stuff they’re people who are employees they’re high up they’re Executives things like that or and they or they want to start a business with their own whatever and so I was like okay so there’s this entire huge part of my audience that wants to start a business and I want to have something for them and so I also don’t want it to cannibalize acquisition. comom in terms of how we generate deals or things like that and so uh it had to be something that would help people start a business which in my opinion was going to be the closest match you like audience match so highest percentage conversion um it had to be a scalable thing so I didn’t think a service would work given the amount of volume that we have and so it’s was like okay it has to be something that’s uh demand constraint not supply constraint so it’s like okay and ideally if there’s something that we can create some sort of network artifact um and some sort of compounding machine within it and it has to be at the right point in the life cycle of the business right if you’re a da a thousand at Facebook is probably too late you know what I mean to get in on Facebook at any appreciable percentage right um and also where I would have less leverage and less value to add uh to a company of that size and so school was a big company uh in terms of its value and the rounds that they had done already but I also have a really big brand and so it took Sam and I call it nine months to work out kind of every component of the deal uh there is in my opinion it was the best deal I’ve ever done not in terms of like winning over anything like that it was just it’s a it’s a really elegant deal the way that it works which I’m not at Liberty to explain all the pieces of it but basically like we both gave a lot and we both are happy with how it’s going and so we both made commitments to the other person of what we can and can’t do like if if someone’s going to come on and uh you know be in an ad from school like I have to be okay with it because I have a strong association with that and things like that right it’s like there’s how can I M mitigate this risk how can you mitigate that and so to Circle back to the original question why did I do the school deal I felt like I had 70% of the audience that I have because there’s always way more people who want to start a business than have a business especially if you make business content and so I wanted to have something for that audience that I that met all those other requirements and I knew Sam um and Sam told me about school two weeks into him starting school and so I was kind of like I’m not going to try and bet on a platform at day one that’s why that’s where Sam has just massive balls I think on our on our podcast I think he said he I think he said he spent $10 million of his own money to fund the business and I think he also said that was the bulk of all his money yeah it was I mean I think he’s been public about it and then he and then he still raised another five to still keep continue to reinvest in the business and when I saw the metrics of school it had everything that you want it had viral organic GL it was compounding you know 20% every single month month over month over month and I was like this thing’s a [ __ ] monster and it was right at that point where he’s like we need to grow and I was like okay I need a product and so it was a perfect match and um it’s worked really well all right if you like that clip there’s a full conversation with a lot more just like that just follow my finger it is right here