« Off The Pill

#22 - Ft. Michelle Phan - Bitcoin and How to Build a Billion Dollar Business

2019-07-07 | 🔗

Ryan, Paco, David, and special guest Michelle Phan discuss what Bitcoin is and why it’s important in today's society. Michelle also shares how she built her nearly Billion Dollar company Ipsy, and how she bought back her brand, Em Cosmetics, from beauty giant, L’Oréal.  Michelle also has some tips and advice for aspiring entrepreneurs. Guest - Michelle Phan http://instagram.com/michellephan Shout to RODE Microphones - http://en.rode.com Order Ninja Melk - https://ninjamelk.com Listen on: Apple Podcast - https://itunes.apple.com/us/podcast/o... Google Play - https://play.google.com/music/listen#... Spotify - https://open.spotify.com/show/6XBRxzv... Follow "Off The Pill" and send us your questions and topics! http://twitter.com/OffThePill http://instagram.com/OffThePillPodcast Hosted by: Ryan Higa Instagram - http://www.instagram.com/notryanhiga YouTube - http://www.youtube.com/RyanHiga Facebook - https://www.facebook.com/higatv/ Twitter - http://www.twitter.com/therealryanhiga Contact Information: Media Inquiries - media@offthepillpodcast.com Advertising - advertising@offthepillpodcast.com

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
And the laws now catching its exact? And this is why Bitcoin and crypto and decentralization is the next week is the most important evolution of. I was how we were able to sell out over eggs and, Inter Alia, tonight ten thousand backs thirty thousand fifty thousand a hundred thousand and then two million the flat responsive collapsing Obviously, this is something we do not go back to another episode of off the pill. Podcast. We have a very special edition, as you can see, everything's very different. This is our first time being in allay where we're gonna be but another especial guess. Miss Michel Fawn. And we have of course, David Joy at the moderator seat. And possibly to right next to me
you're, a joke. That's my everybody everybody laughing! I'll, be out we're Michel here. Thank you for being here on our first episode. That's not quite ready. It welcome tally with thanks, It's been a long time Does it mean? I don't know we ve? Actually me you and David have no each other since, like I don't know a long time ago, ten years we're just owed you tubers Nagasaki policy. S now we're ancient may I know we're just owed tumors, whereas this is this is how dated we are. We were at the first Bitcoin put it. There is five thousand attended and Teddy's was a really just five thousand for now I coming back like white, twenty thousand is or how many thousand no for real. You haven't renal vaccines. Have you been back since I went back a few years, Now as it do it like a Youtube headings, you that's how it feels to Really yeah was
she considering. We were considering of actually going back after ten years there ten year, eight ten european, we were. I can support. Gonna go by himself now with mere by David. Was trying to convince me to go, and I think you as well I mean, are you gonna go above eager because I've ticket In fact, this comes out between what, when his bitcoin it'll weak guitar, should we just go? It's been is: is it near thing right and they won't wait another ten years. I come back, though, from New York on so only on Saturday what it is a start ten which shoes on Tuesday, I think all maybe no Winston Wednesday. I welcome do so, but we just go on Friday. Then I can't come Friday because I come back from New York on Friday got it, so we would have to go Saturday I think about it. Are you really gonna? Go though, for ill I'll give you go, I want to go along with you. We'll be there go together let me guess
we're trying to see. If we can get you a carpet, I got I got to slots and make her love for people who don't know Michel is in oh gee, you tube or not, don't eat, as in some people refer to me That is why, on David, obviously sniffer dogs Oji, he is there, you go, and I guess now know if you are the first but pray, the biggest makeup guru right, and they were the first and biggest make up through the glass you touch it and we're not used to having these makes. So I gotta stop touching the table hitting it yet biggest and while the first make a bruise on you too premature. And basically I don't know honey. I can't even get started well as in two thousand and seven, I got rejected from a job a beauty counter. I needed a job because I needed to pay my bills and am I applied and always good, but
because I lacked sales experience. They didn't hire me that so I run it now. I want you know right. Will we get into that because you have your own company, which is like like hugely successful where's your copy. What is valued at all, almost a billion dollars rights, crazy area tipsy? My left the company. Two years ago, though, right, but you still built, you still started that company right initially a company is like Hillyer worth billions on national doing great. They saw three minutes bags for ten dollars each it's a subscription model, so it's very scalable on and its helped. A lot of the Indy Brands Round should become big and also get acquired by the big chief. Nobody brands after Gamble Laurel. How far into you two did you start that actually it was when I reached a million subscribers- and I was about to want to brag though, but just to give people Next I was the first woman to write a million subscribe.
And now that milestone, I knew okay. This is a good milestone to think about how longevity because I knew its the internet. People have such a. Attention span that I'm not going to last as long my popularity is not going to last. Long, and so I need another stream of revenue. That's not based on my human bandwidth, because we made this comparison about how being a Youtube is like being Ann Arbor driver and your cars or channel, and you have to drive a car. If you want to make money and with Youtube it's the same way, we have to constantly upload imposed, and even you beings park ass. You gotta, keep moving your newbridge hybrid. I know we're going to what extent is it you want to come back into eight? You resent you miss it, I do miss it. I dont like the politics, though, because within What is our space? We'll see you and the beauty space you don't really say all the drama and no you don't wanna be do there's so much drama in the hospital flowed being glad natural beauty to so
what do you mean the politics it into the aware it again to the drama version is ok. Call a little easier bill. The t call em out now my only drink tea and still less I have a sense of nobility, where I'm not that's just now. Things are. It's like karma, take care of it. You know, and also there's always two sides to the story with every one, and you know rose. You tubers even the ones who are a kind of like a little fucked up a little. They don't have the worse intentions, it's true right. They dont and they're just normal people in a way that people see them as this grand grandiose idle, but once the camera turns off their just a normal person, and I I do actually feel bad for a lot of you, two birds and beauty craters who do get pulled into the German and it has become
Hollywood were especially within the beauty space because there is so much money in it and where there is money, there's gonna be a lot of people who are going in and who want to be part of this economy with your tip torture, on something like Is there no? I mean do now behind that duty, space, you're, saying this, our politics. I give you an example of what that means it takes like allotted Brands will pay to four sponsorships, and so, if there is a product, that's not good a beady creator. We'll still say it's good, even though everyone knows it's not good violet, just so yeah yeah selling out. So that's one ass. We use your. Luckily, you don't have to do that right down, but I got lucky. See I got here early and at that time, in two thousand and eight, this was right when the economy crushed- and I was sixteen thousand dollars in debt. No one was hiring. I dont know what to do. Then. I saw you two pad adsense and they just rolled out the partners programme,
And I figured wait: I can make money making these Youtube videos. I was doing for free anyways, hell yeah, I'm gonna do this, you aren't you doing before the partner programme way before it all went on a well. What? What time? What date did you like? What year? Did you actually I started in May two thousand and seven, oh all its extreme, is me really June. I think, or July did uncertain. The boy to have just for fun, and those in oil has nothing to do. David was actually before David's origin Four Oji: when are you two thousand six vibrate not good enough. Five to eight August Devout Dan L failure like dinosaur, I have. I have her to us having a different economic that I was put before. David's really excuse among an ounce much. Ok, women simply use it. You want to go back into it. I was home telling you like. I just
randomly and other having. Could you haven't really been posting anything before in the past liked in two years? Yet so I haven't like clicked on anything. The channel and randomly. I just saw recently that your? U can help was suggested to me and it was live yeah and I clicked on. Checking to see you and their wishes, this animation and Georgia is playing and is that that's what you gonna be using it for more, are you trying to do TAT S kind of like my first, it's like when you go to a party in you, just people who come in early they can just enjoy the music to setting the tone
the atmosphere but really interesting that you're using your channel in that way. Yeah. I mainly you have those you know those live streaming channels right out the music ones I always had them years ago, playing in the background and people actually loved watching. My videos back then has of my music that I recommended, and I have this peer to peer market place. I have this peer to peer marketplace called thematic, where we help me: music creators and creators link up and collaborate, because you know how hard it is to get music rights and write down or take downs happen. Allied in with article thirteen in article, seventeen in the EU is going to become harder and harder and Youtube. Now there are liable for anything copyrighted, and so they dont want to be liable for
So we have a lot of these pre cleared songs from actual music art is for creators to use, and so that's a company that I found it because I was sued years ago by a musical able unfairly is so unfair for, but it's it's not even lake there is no one's fault two miscommunication along the way like I have no hate or anything towards that music label. What happened with the lawsuit? Oh, I just settled it, ran right. I remember one that was happening. I would just like, while they're gonna- I guess you are kind of, the time to lay I order you come on, that's what they really you're a target yeah, because I was I was like. Oh, I thought we were safe for a cause. I thought we'd, just individuals yet know how big business and well. This is what happens that I not just me, but even I'm not gonna, see who, with which you to read. This is because I don't have she wants me to say anything but she's a menu tumor and she was in the car just saying a lyric, miss I'm just saying it out loud, like twinkle, Twinkle Little STAR and she got clean, I use a meeting leads to the act.
They actually hire people to scout, more than happy to burst sides sickening. There's one eyed wonder my biggest videos, its cause, giving the Illuminati Israel and The whole video got cleaned. I'm going to see the lyric because going to claim this, but in the end car other video. What I'm with take me Sup, ok, something low low near something. Then advice still gonna get that I know you love song. It is said that in the end, hard crossing like wake up America right, wasn't, wake Is it and then they claimed the whole video and there's nothing? I can do about it, and if it has nothing to do that in the end card of the video, I know but that's that's how it but that's why you created thematic right yeah, but that was even this. I was using the song. I just said the lyric of it,
this is the sad part about me. The whole point of capitalism is you're. Giving people have a chance to build a business to build their capital relevant. They have great product or they have a great service that they can provide an competing against another, and it's better. They can win its it's that opportunity that America gives to people, and I feel like when you have these big lobbies, whether its lake in the beauty space when the music space, like the ones you own everything they just make it so unfair and harder for the smaller people, to win a gay tellers. I gave you work really. Hardy have a great idea: you're gonna wind, that's bullshit, you're! Not unless you have twenty lawyers, and this is why Disney is so well protected, even though most of the movies that they create are stolen. Like all of the fairy tales man, that's, these are fables that weren't owned by anyone. You know I mean I mean I'd hundred persons or stand and that really just run
have like making this drink has been such I just open my eyes. I thought like. Ok, I'm just as I keep I'm not used to having things that thing on the tables are making noise. I apologize for the listeners, enviers, ok, but just like getting. Approvals for things take so much longer and you don't realize that you have to go through all these. If I am speaking really careful. What I'm saying is, I don't know I went in trouble, politics? Is politics? That's one thing. The whole point of the internet was it's a big. It was this way for everyone in the world to connect to share our younger I'm could choose what they want to watch and what they want to get into yeah. And the laws now catching that's exactly. This is why Bitcoin and crypto and decentralization is the next wave. It's the most important evolution.
Of the internet, your beer really a notice that you really into crypto in that in a very forward thinking in technology like what? What about Bitcoin? Are you why? Why do you believe in it? Much will not. Everybody understands what it is. First off rights, brain, what kind of talk show Well, that's a big big statement. It's because there's some so many different components of what they coiners, but if I were to give an elevator pitch, what is Bitcoin Bitcoin is the the true money, the truth truest
money that we should have had since the beginning of time and just to give some just just to make this easier to digest, and why is gold? Why was gold always considered the standard for money, even during like the ancient days in Egypt Mesopotamia? Why was it always goal because gold one it's finite? So the fact that you can't find it everywhere to out of all the precious metals it is the most stable metal and three it's hard like. It takes a lot of energy to mine goal that you can figure out. You can even have scanners and scan for tee for gold, but to pay for the labour to pay for the cost of like the digging and lit and all the people feeding them and just to get a little bit. That's why it is so expensive because it takes a lot of energy to mine, gold and its finite so now bringing it to Bitcoin between operates in the same way big.
Mine is like digital gold, but it's different. It's not gold, because gold, you can carry it right, tangible, but the acquaintance digital, but the fact that it is scarce, digital asset is what makes it so unique how's. It scares there's only twenty one million coins in existence. That's it There is never going to be more coins. It's not like our money. The banks can just put more money. They want to and then they do without permission not make more bitcoin you cat. It is possible that is it there's only twenty one million units and weave Bitcoin has the White Paper's started in two thousand and eight. So too. She created this white paper and no one even knows hoosac sorrow. She is. It was an anonymous person who came up with this thesis,
what is Bitcoin is essentially a currency. That's not built on trust, because if you look at the back of her dollar says in God, we trust telling us trust in this dollar its money. It's it's it's a real money to its legal tender. But can I go into Fort Knox to count all the gold? No, but with Bitcoin you can you can verify raising everything's time, standards, verification, and so you have a currency, that's not built on trust, because people don't trust anyone anymore, you trust but verify, and this is what they brings to the table. So, since two thousand and eight we ve mind up to if seventeen million between units and six million four million of them are lost meaning four million between people lost their private keys. Means we will never see it again, it's impossible to retrieve it and so that even that drove the scarcity even more it's even more scarce. But when you say you mind, I'm just
because I really don't know I'm China they break it down to me. Are you? Are you mind a bitcoin? What does that entail? it entails, its essentially to mine, to mine a you need to have a computer. You could have had a normal computer back then I would easier to mine. But today you need a lotta computers, a lot of energy because at solving very hard math questions- and I think we ve just reached a having point which means now it's gonna, be even harder to solve these math questions. It becomes exponentially harder and they say the last few hundred, because will take several years and the last one will probably be probably be mind by two thousand one hundred and forty. Two thousand one hundred and forty will be the last bitcoin. They say. Theoretically speaking, if we haven't come up with, if we haven't advanced, quantum computing will it will take another hundred years. I saw me last Monday's math equations, though, what in recent days ago, that's kind of a gradual. What are you getting from them are just a number or like what But what are you getting exactly
but it's only these. What are you gonna do something online like if you solving these if you're solving these on trapping of something like I'm teaching a coin, actual bitcoin, rather what they like local the cool thing about a big queen? Is you can buy them in decimals, meaning that you can buy them infractions? You don't have to buy a whole bitcoin, you can buy half of the between one tenth of a big one their constitutions or going by his approaching they say in the future. So one bitcoin is a hundred thousand cities. It's like pennies. They having a hundred pennies equals one dollars or a hundred thousand cities equals one Bitcoin. They say that once a Toshiba in the future would be worth ten dollars. So imagine what a full bitcoin will be worth and some have even speck later, this is the craziest number, a million for one one bitcoin in the future. So You seen is twenty one million and that's a cap right at sit right. It's fine, a who decided or is it such a? She decided. Ok, so It is a constructive somebody protocol, yes right, but
he said, I don't know he or yellow we're gonna holidays. The CIA could be right group of intelligence agencies, we don't know whose is it up that person right could just be like all right. Here's more you'd be can't it's just impossible. Because only the moment you don't follow the protocol and then bitcoins worthless, Right, so that's. Why did MIKE what? While I mean, if it does happen than big it's worthless, but it's not gonna happen, because because you have people who verify you have minors who are verifying it, who making sure there mining it everyone can verify it. Like. I said it's a source of much ledgers time, stamps leg, you can't it's actually impossible right, but I ll call. You said gold is a fine, thing re someday, you can hold its. There will always be there physically, like that, U S dollar, it has We all verify has value right, but it could instantly become worthless.
Why does it have a has? He gives we have given it right week. We gave it value after around the Vietnam WAR, when actually it was actually the Vietnam WAR when the dollar went off of the gold standard. So Originally we were on the gold standard and became less and less and less and the Vietnam WAR happened, and that was when we became off the gold standard. That was when they started to sign treaties with Saudi Arabia to back up our dollar by petroleum. That's why you have the petrodollar and again takes comes into place in all of this, and the beauty with Bitcoin is no one owns it. They were the dog. What are the Federal Reserve and the dollar by Vila get? Who is the federal reserve? It's not the people. It's private banks, trysting right, the Bitcoin owned by no one, even the banks, the basic by half of all the Bitcoin and TAT. Actually, what a lot of them are looking into buying cause they're realizing wait. We can't stop this. We should by some because in the future in mind,
I mean there's theories, but some people saying the future. Some countries might even by a ton of Bitcoin and their money is backed up by their between their Bitcoin Reserve interests to show your lying a digital land. Yeah, like you're, buying digital real estate. You know how real estate is expensive, because land is very fine, alien, that's essentially what they coiners, but the thing is wit with real estate and like with gold, you can physically, like that. You can just tell no one can take that away from you write a monolithic physically, take it away from right with Bitcoin. I just feel like how do you know you could? If he could, you show me right now, if your bitcoins, I mean they drowsy. How do you know it's not going to disappear based on like someone or somebody else in the future will just make sure you have your private keys measures. I'm your private keys in offline wallet in cold storage. Just like you're, not gonna. Have your gold on your
people you're gonna have have in the in the backyard gonna have it in a in is safe and in a ten, our fireproof safe, but you're, not gonna. Take your golden, unlike ship off a little being go to Starbucks me: hey! Can I buy like no they're, not gonna, do that its bitcoin is not a lot of think. Well, I'm not am I gonna buy things a bit queen, not necessarily there could be future crypto currencies that are backed up by Bitcoin, but Bitcoin is the reserve coin. Like gold protects her purchasing power when the bank's fail. If you have gold you're, still good, you can still by bread. If you need to thread, that's bad. This is how Bitcoin helps people something happens to the bank. Something happens to our money. There's a war, you still have your private keys and you can still protect Europe missing power cloud. Our just China think like beer, like technology, goes away. Right, leg is its apocalypse right. Goldstone has value because You sure, if you know one of one technology goes away, the lasting we're going to care about is we're gonna, try and make
are we going China exactly like old still has value right or they cause it is signed out. You can melted, exactly will examine it. Yes, then we go to the truth. Energy policy is going away from the dead. I want to say how, but I'm just trying to promoting picture my own country to figure out what it really is. Of course I never out, but I was understood it. I just don't know why they ve done test now. I think, like in Nepal or somewhere else, where you can Stilson acquainted someone without fast internet it's just gonna take a longer time, but you can still send it without the internet. Well,. So how much Bitcoin do you have a gather another another thing I always tell people here is but like here in Amerika the western world on Wednesday America, but just in the western world, the culture is everyone's China flung through well that you want to be on the front cover for yeah, I'm rich well. Within that turn, you into a target of any
I was reading article about in China. A lot of the wealthy people in China will pay money to these magazines, not to tell it to put him on the list because they want to protect. They want to be low key about it because they know they're gonna become a target. I mean came a target. That's all yeah yeah! That's what had that's, why I've been distinguished keen so the same with acquaintance, don't help people you're between Billy, No, you gonna hackers coming out you good thing: we're broke your cell broke I've, no Beckley. I have seven you do it anywhere? I see the fields work, I'm sorry I was. I didn't mean to stay on that I just like. I guess I was really try to figure out what I I never knew. I never understood it. It's fascinate it is. It is low interest, that's gonna either. The only thing I know about Bitcoin is that's. Why, like graphic guards, are getting expensive or computer yeah, it is harder to late pay, you shouldn't about the of the Facebook one? I know
the same thing, but is that it's ok, so the Facebook Libra Clane? Think of it like Facebook is an hour, aid and you go and in exchange for dollar into the quarters, and that's what see can only use it within their ecosystem. That's different! Then it's totally different. It's not the same as our competitor. I would a winning imitates competitor. Could me mother? No because Bitcoin again, it's finite? What about anyway, my computer There's other versions, aliens yapping but they're, not competitors. They offer different things. You till it like their utility coins. Like a theory, am I offer different rings and of them will say like our fast, your calling for better but like no between there's a reason why big It is at all right now, let's see how much it set a new one. Why did you kind of language and it was at twenty for a while, they say soon. It's gonna go up to thirty thousand says only recommending for us. So should we put in the title why No funds has to buy Bitcoin now and then, if their sell their things go up. They clean as eleven thousand eight hundred but
I go down to nine thousand migrate on a three thousand. If it does, then you start buying the goes down to three thousand cassettes. Ridiculous. Really, but I tell people, don't extorts me: it's not stocks! Well, it's not that it's not start like it's, not even the cliffs. Gold isn't a stock gold. Is a reserve like treat moving. Winning Bitcoin is a goal. I think big queen is digital gold, digital gold, real estate, cadets finite, and it follows a protocol- is all about following the protocol in for over ten years it hasn't slipped, it hasn't even steered an inch away from the protocol. It so When will you I mean, like you got in early? When would you wear what point do you yourself decide how want to sell it? Ok, so there's different, so you don't even have to sell it. You could buy a house
with Bitcoin I've seen a video. I know the cool thing is you have to deal with taxes? Anything has set legal, no one! That's legal! Ignore one owns the idiotic government, regulated icy, its nine and in a way We have the internet. We should have had a money that when we should have had a currency that, when within internet- but we haven't everything's, been tied to banks, they do it. So I was reading about how there is four hundred million dollars, because that was moved. Guess how much the transaction fee was. Four hundred million dollars discuss. Well yeah, but would you dollars exactly two? I'm a genius. I know about Bitcoin, but you know in Zimbabwe they have a crazy currency out there like. I think they have a note, that's a hundred trillion dollars and one note that a hundred trillion guess how much its worth. In? U s. I have no idea two dollars.
Forty cents there arose but locally. I think, two days ago locally in Zimbabwe, the queen was seventy two thousand dollars locally already yeah, that's crazy. It dude like this is just the beginning. Everyone so slept on. I've been telling people for years pickling whom bickering over the future, while the hype sure died down because it was at like twenty something everybody was buying garret and their lot. I got so well when I see down that's when you buy you. Diana DAS, buying the debts to Warren Buffett did stocks YAP Warren Buffett said Anne Bitcoin is rat poison and now he's kind of eating his words and he's talking to crypto people. Now, really
interesting, okay! Well, that when done around, I did not know me, I'm just like our eye or how do we do? This now has a big hit. Some vague now was so yourself like negative things around it, though, like a minute, whether its true or not, so, is that even the beginning there stood a little doubt. China criteria you to assure well, you can make money on Youtube that Sudan and the content to be talking about some parts. You can't argue there was blood dome, stuff. There's no them stop at it. It makes money. There's enable want tv s sure to you know, but I'm talking like currently too dumb stuff. Oh yeah click bait I'll, get everyone's stores. Before too, though, that's true, but I feel it now the rhythm on Youtube has become like a fucked up god that everyone's China, please he's trying to chase after and get an understanding and they're trying to optimize their content. If to favour the algorithm with vision, better or groups of you tumors a magazine
But there's groups that talk about this and it is they tell each other? Do you know about this? Here's your in one there's! If there's a discord channel analyze, the algorithm kill you in diabetes doesn't know that general. I would like, on a daily basis, is pretty pretty antenna to get a penny semi that channel I just I carry it interesting. It is interesting, but it that I it's hard to keep up with the changes. Its never ends. Have rents- and you don't have to tell us either so Apple, very many mark. Ok, I guess we'll take a quick. She. She break and engine outbreak in genetic energy made with organic, no conflicts record her baby she's such a nice voice, lightly, carbonated, energy, trunk, no artificial, sweeteners, preservatives and taste amazing.
Let me try and let me try and which are this lightly. Needed measure. Not while I quickly she read and we'll be right back Hey guys just want to say thank you to our sponsor anchor anchor the easiest way to make a pot cas it so easy? In fact, we decide to use it to distribute our show. This show off the pill. Podcast. You're gives you everything you need a one place for free, which you can use right from your phone or your computer. Anchor also offers creation tools that allow you to record and edit your pie cast so that they sound great, though, distribute your pike ass for you, so it can be heard everywhere from Spotify to Apple podcast. Google pike ass in a bunch of other ones, and you can also make money from your podcast with no minimum listener ship, so go and download the anchor app or go to anchor dot fm to get started.
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Actually that's the time, crypto we're just talking about your other company M cosmetics, re its awesome. Oh that's a second one. Did you engineer opening sound Why? Yes, I did I completely engineer the opening sound to sound, delicious and fresh we're just talking this off camera because things because I'd I'd, I do Do that. But you asked me that, and you said I should tell more people that see ran, says, and I can't lighter people. Marketing is lying or just exaggerating. Ok, but I didn't invent that sound sound. That's just science knows there's all things are actually people who engineers sounds like that, like the Snapple bottled up? Yes, Ok, that is satisfying young. I am here I mean that I made it up.
What we are talking more, we just animal distracted myself as you having a general, yes M cosmetics. I have and like this isn't sponsored or anything I leave it wanted to bring this up because he stopped by my office interesting story two months ago and he was asking like yeah. So what's up with this and cosmetics thing, how? How did this come about? So, to give you some perspective, most people who started beady brand. They started they bootstrap Eddie. Do you know your? start ups, you understand, like you, put your money into it, new grow it and if you get down, like a million to five million a year pretty good, but when you get up to around ten twenty million up to like fifty million. This is when bigger brands, like the S day, Lauder the lorry all the Procter and gamble they want it they're interested in acquiring your brand, so they want to acquire it, and then they take your existing company in your brand they just power through and turn it into a billion dollar company. So they may you out, and that's normally the lifecycle for by airlines
don't, have any part of it once it economically nowhere company, no they doesnt, become a billion, are accompanied by you at fifty million goddess of aid. Turn it into a billion dollar company. So with em, we did the exact opposite. My brain was actually created with low. Beyond this was the first time in two thousand and eleven Laurel as ever, created a brand from the ground up. Normally they acquire brand. That's what they're really good eye they acquire the brand and grow into big business like Nix urban decay. It cosmetics, in my case, with an early k, Michelle, He's doing this really cool thing on Youtube: let's take a gamble and let's create a beauty brain with her. And granted Laurel is a great their masters when it comes to marketing, creating beauty products expanding on that, but creating a brand from the start. You know from the ground up it's hard. It is hard because you need to have you can't take a
corporate structure and then bring it into the startup world. It's really hard to do that because you have too often tends a lot of the corporate structures there. So many layers and bureaucracies and to get wanting approved you have to go through fifteen different people on on a startup. You just talk to three people. That's it it's instant, and so it's interesting was when I was develop. The brand with Laurel, and this was two thousand and eleven, I was also building gypsy at the same time so in the EU. I'm building and cosmetics Valori Alan, I fly back to allay San Francisco and I'm building obscene, during the two and its. It was interesting seeing the dichotomy between the two worlds, because on the lorry Alcide, they hear they had a lot of budget and a lot of people a lot of bodies in the company building the bran with me beat, but because we are too many people involved, things became very convoluted. My vision became convoluted along with it, but then on the other
side of the spectrum we had it see where we only had two point: seven million dollars seed funding, and that was it and we were able to use that money and stretch it and go. Completely grass roots like our marketing, was through Youtube, we would just talk directly to these Brandon. That was how we were able to sell out of our bags and then grow it till egg, ten thousand bags, thirty thousand fifty thousand a hundred thousand and then grow up to a million on and then when we launched an cosmetics in two thousand and thirteen with Laurel. If flopped, it's completely flopped, people were hating on the brand because they said the packaging looked so cheap. The product was too expensive. It didn't look like me in I was getting so much hate, even though I had no control over anything. I really do because I really was not like your branding then no lasting when people saw one We'll watch my videos and unknown first a aesthetic and there are so confused when they saw em by lorry all because it wasn't it was completely off. Of my aesthetic was an offensive
it was not often take no. So I got a I hate and a really sucked because I couldn't say anything under certain contracts, so I'm lakes, hundred Billina Andy's and all of that long story short, I was stuck and but thankfully I had seen, I was doing really well said in a way that was kind of my saving right may saving grace like that saved my face. They, I wasn't seen as a failure, because even though the bring em cosmetics Florio flopped, if she was it's like doing two million bags doing really well and we we only needed two point: seven million dollars and we never needed to raise Sarah So really shows you it's not about legal legacy. Companies like these big companies, like you know, a Google when Google started, Google plus they thought or we can take on Facebook or Facebook, is like. Let's take Don T talk and launch lasso like Nardoo, like innovation comes from small startups. It's always been like
that's where you really truly see it, because you have people her very passionate and again you don't have so many different layers of people have to go through to approve one thing and it see as a great testament of that. So going back to two thousand and fifteen we raise Three million dollars for absolute were able to use that money to buy em from Laurel into acquired under it, see which was great, but again it wasn't my brand. It was it sees so I couldn't approve every thing of course, even though I am a founder of its, he have shares in it. There is still a lot of politics when you do raise money for a company. You give up some some control room and it got to a point where I just became so tired. I just wanted something that was mine. I was ready to also be independent and so tears ago I left and I bought my brand em back, and so I am now is completely owned by meeting awhile and he was waiting for the heads of state.
That's also in its just been incredible because we're small, but it feels like a family unit which is small. Guessing comparisons. A year the things we ve seen your office, it's not so yeah, it's. Thank you. It's not small, but I guess it coming compared to you mean compared to having two hundred employees and now having like twelve. It was really small, but we are a force to be reckoned with, because we everyone can wear multiple hat like this. I thrive and smaller environment. I can't do a corporate companies. I just can't it's just. I think it's it's so opposite of, even who we are right, like you probably get more work done. If you were to just work with you in a few, the Navy were thrown into like an office radio. You have a hundred people and everyone just focus on the one job ready a collaborative, become super hyper specialist area compartmentalized and like
so one so does that refer to that, rather than owning it together owning the project together then, because, if it's all you know individuals, it always ends up being like I'm. Some do my job, I set off if they're not doing their job, that I don't care, I'm doing my thing exactly yeah. That's that's tough, but I got a question so you know you're versus Peaceful entrepreneur obviously needs to be built large companies. What are like, top. Three things are worded is to top things at you, you think are required for people out there, we're trying to start something like you did like what are some of these things that you feel like can help build massive businesslike A billion dollar bacilli knowledge is. How do you mean a billion dollar business. Well, ok, evaluing! let me refer you to raise that. What does it even mean to be worth a billion dollars because you'll get Netflix and they're worth a billion dollars, but they haven't profited yet t you
and even Amazon, I think even Amazon is still in a deficit or something they started to make more money. Weirdly. The Amazon web services for the longest time. Amazon wasn't profiting yeah, they weren't profiting for like years years years, and I don't know what year was it two thousand and fifteen or fourteen? I forgot what year but Bezos, because so many people were using Amazon, they needed the best first, they needed private servers and all that he decided a let's. Let's do redundancy servers where we build more servers, because if one server shuts down Amazon can still run in like Colorado, because we have the servers there, so they did redundant scene. It took a whole year to build several several different servers all across the nation, reforms, server, farms, okay and when he went to the board- and he was telling oh no heating or the board yet he had engineers come to him and say: ok, we finished everything and
curious? He asked how how much is Amazon using of all the servers and Lego, just like six or twelve percent like very little, and he had an aha moment. He went to the board, he said: hey, let's cry: a subscription Amazon web servers because we're only using a very small amount and we have all this access and we can make money with just servers below about it? It's a genius because you're not selling products do not storing anything. You don't have to ship anything. It's just she's upset as data yeah that helped the mixture this money, and so now, when you opted to Amazon web servers, it's so impressive, As you can get leg you can like machine learning involved in there I mean it's crazy, like it's not just a normal. It's not a basic set out like it's very, very robust and impressive, so again like going back to the valuation having a billion dollars. That's like height that, like saying. My companies worth a billion, but that doesn't necessarily mean you're, making a billion dollars. That's what the invest
earth who invested in your company are projecting for you to be worth and to make some sense noise. All I did a lot of these companies who raise, like eighty million dollars and they still don't profit yet, but then there investor. To be? I gather worth like a billion dollars. They can I can say that so it's kind of hype, thankfully, with deep sea weed, were so, and I hope we were actually doing really well, because we were subscription. People were paying ten dollars a month and three million backs are being sold, but we weren't, like we weren't, relying on that type of being worth billions. Or so to go back to everything. I don't think I think if you have the intention to build a billowy billion dollar company, you don't have the right intention in place. You your gun, all is misled. I numbers and what s happening is. If you don't meet these numbers in me milestones oftentimes, you can lose sight of yourself and you can burn out really fast and are always tell people in potential business owners and entrepreneurs.
Set goals set intentions. First, when I started my Youtube Channel, There is no money and because there is no adsense rate, My intention was to teach. I wanted to share. I want to teach when I started Gypsy, I wasn't I didn't have any idea would become such a big thing, but my intention was: I have this great product idea. And I want to help people with it. I think that's really important, so intention said intentions, and the second thing is look for a market gap really important. You, because you can have a really good product idea or service, but if it to early on. Then you miss out on that boat. So you have to be. You have to know when to be ready to launch it oftentimes. So so many people have great ideas, but it's too early or its too late, so learn and observe the different market gaps that you have an market gaps so to bring it to bring us into like
like to lake, bring into my context. Cause may be yours my understand. In two thousand and seven there were no make up tutorials people. If people wanted to learn make videos, they would either have to go to a beauty counter and by products or pay for beauty seminars or read books, and there is never something where they can just sit at home and watch for free and rewind. It were skip and have some unreliable speaking to them. So that's a market. A market gap is wait. No one's making these videos, I'm gonna, make them the identified these market gaps in the market. That would that's one of the first things you would say: So I did not get a user and join a yeah set the intention finding the market gap, and I guess my third one It doesn't have to be doesnt really: okay, tat yeah, we're just gonna. U doily! You taught me to stop us another good. Those are good tips and I think it is important. Most people don't know when they hear like or the evaluation is a bit
dollars, you don't know you're, not making a billion making Snapchat for one they were. They were another one right that wasn't making do with Europe. What are they worth another I've here right now there their public company right now, but I think over a long time they were making zero dollars no money at all, but they were like the biggest thing in the world because they had active users. They had no means of agro users is so the ideas like everyone wants to find the next facebook, but for it's like it's over, because all Facebook needs it. Was just copy it, which is Dolly when I did it into their yeah and there's no shame in that like, as in you, don't see shaman that because they have to look out for their business and that's just how cut throat it as China copies you know, like everyone, just copy each other, and that's why I was telling don't try and link create something that Facebook can easily copy like look at the future market cap. If we are going towards this decentralized marketplace, where money will even become decentralized feel towards that that's going to start happening in the neck
years, you want to build towards a future. If you want to build something that you can sell fast, How, then, yes, surely build something, a typical and then try and find an exit fast, as you can, but often primacy, when you don't find an exit you're stuck you're like a hamstrung, unwilling or stuck in your in this very all old company that makes sense let us now that is good advice. Actually, I'm sure some people whose trial are people who were like I'm gonna, get Bitcoin start my own company when it would have people in need right now, so I know I think he's got engine Dago Benjamin! gee not paid for it. Tell her to do this. She just has a voice. It's worth a lot of money, anyone while the bitcoins- I don't know that's a lot. We just learned is a finite about. Do we still have the imprint them other questions and stuff? Do we have some stuff? I'm looking super state
and thanks for coming with super last me, it literally David deems me yesterday That's where we talk, hey you d emulate had we did last night, I see you, for a long time ago and you ve had a different number. That time are you always changing? Your number? Why is that? I have some crazy people, man who Korea yeah. I thought but that's just talk about these crazy. Did the crazies There is one guy who came into my office village and My team, like oh dear, an appointment with someone here and using words, Michel and use scratching himself right Wagner Mosaic armies like you, to cyclical crackers machine. I dont know leadership, I'll write, you know, I don't know like an and my business partners sent me a picture. As with security cameras. Are you wearing he's a Katy know this guy, like nod, or know him right to negotiate so on what one? On one of my co workers I came,
but can only send him really far away like this habitat physically. I let me locked him escorted her off the property. And I think like it was a gift two days later I was- and I had Instagram stories I was going to one of my friends- show his heat. He was dj at the show and I was gonna go and support So I, when I arrived with my other friend, I hear this guy's Michel. So your, first instinct, when you hear your name is turn around when I turned around and I remember him from the pitcher MIKE I should have shown right same guy rate and he's like Michel Michel, but thankfully my friend was areas is blocking Hamley tolerable like. He does not mention and we are talking about and they quickly like, let me into the volume and they blocked him and the security guards with India, This guy's showed up like that. He was here Six hours early and when you went in, he started being his head against the wall and he doubts. I do this crazy cos
been on high. It is for so long. You know like it would make sense of lake your act vows. Also, I mean not to wake. You know not ninety lake. Anything anything, but I was more promiscuous to like them, showing where promiscuous motors myself. Ok, that makes more sense, but you go in my instagram feeds. CAT and me in an enemy pictures, and I'm so from out even pictures. Are you yeah dangers? The members of a timely do this is crazy. I can't even imagine other people who have a following built on you know their sexuality and all of that, but yeah do there's a crazy people, I'm sure he's not crazy but Now you just don't do that idea, Bulgaria, don't you are right. I mean that that point, that's not even by car core fan. That's like even events, I think have enough Awareness did not show up in an hour he added in the whole scratching thing on purpose, but that's all I know I could be wrong and unjust, judging rain or something I only. This guy is you'd like you just you just
do that like have some just have some respect for people spaces enough, and I feel like a lot of a lot of viewers. The thief almost feel entitled when they see online personalities like oh, I know them because their my best friend, and so they ve I've, heard horror stories of view toolbars, where they would have people like outside there. Act like taking pictures of of their house because they saw maybe Energy Piazza where they were going out. That's why I moved and its know how I moved because I was not in a integrated community and I have camera. I still have footage of people. Kids come into my house and like taking pictures like through the windows and obviously I was already paranoid by all the things they could. I never see me but yeah. There's that happens all the time I mean David had heads carriers store like your story, you about your stock or dude yeah you in key keener, we had a his is scarce, shared stalker. Aren't you share that story? You never talked about that sure pretty
there's not watching by. He might be go ahead. Yes, I can- and I had this once doktor on Twitter and he would put out these like really mysterious, like the death, the day of death shall come upon. Keen like you tag cannon and you just like competent bodies are creepy cryptic of messages- and I just didn't really think too much of Africa's wherever you know where this guy is who this guy has so eventually keen, and I we both went on tours separate, separate tours, but at saint we're both on tour, I'm she plays it. This venue in Florida and I was gonna play, the same venue two weeks later so to ex layers guns by and I I roll up mean I with my gear and everything in my crew, and they were the crew they're. Like hey David, we heard that there's a stalker guy, and now we have a sure of aim in which
to let you know that we are we. We know it's going on and will keep an eye offered for anything we are discussing. That may happen. Local awesome I made my green room getting ready for the show guy us. Regard comes in David, like the guy shut up like white no way, and they were like yeah. He came in it a fake idea. He he eat saw before before that the tour actually keep keenest shared me website like it and he had a mug shot like a little mustache. So when he came to the show he actually shaved off his moustache and he showed up in in the grey thing is he bought a ticket
in a city? You know I'm like a dog me. Yes, a boy might arise when they saw him and they caught him. I mean I'm glad you did after he bought the teachers, and I would have signed a firm tube old buddy was angry was so, but he had a luxury, yes monks in, and then there are like the escort them out and that's it I was it. Did you not call the police or anything I think that we need to know anything wrong. So we just identified him. We escort him out and then that's all we could do just not let him back in else still on a scared, because he could have waited a block away with a gun and he could have shot or that. That's why hope, Christina thing, Handkerchief Remy. That really affect me a lot and I stopped doing show not just for that reason, but The main reasons I stop doing I dont travel.
What do those kind of show is because I don't know that situation really like haunted me, because it could its. If you think about it, it's really easy to do like the securities there, but it's like it's not hard to get things past people right, so they were going through my shadow Holly Irina grounded, Tourism like they had now detectors and stuff, but for our shows it- and it was never like that crazy, but it has to be now right. So anyway, that's just I thought it was interesting, as you brought up something soccer related ya know. Dude I mean I think I think I do. I feel like some people thee fantasize about having stalker like I want to stop her. You think what people want to stop the morally various shades of. If The main I haven't seen and either by word like I've. I've read the wicked young of it, but I'm pretty sure of that.
Christian Gray Guy, who, whatever his name, is if he was a broke ass guy like yeah, it would not be a romantic story, but the ragged C mon super rich people fantasize out like eyes, stockard so hardly know. That is now it should now romantic? But what have you got? One of your stalker guy, the short your office he was like gorgeous like just best looking do looks clean is business suit. You need to see Michel, he wasn't. I got sing. Analyses show an annual even as voice is just like David but would you have still send ok. Thank you. You, have sent him away because it looks matter in that case, because you're not going to judge him in the same way right, even your workers right, looks, do manner night. If you don't have business with me and get the fuck out, even if he should have been a nice bourbon, we are of expensive, ran on our very suit.
Since it will never have a feeling that would just be plaid, like he's also came about what has happened in that. Was your stock or a new Simon, another event, and he showed up so low we're, but is that this gorgeous dude, expensive suit would use I have sent him away as my question, or would you have given him the benefit of the doubt and had a little talk with him. I would have seen. What is your business here all really yeah you're, the only one who is busy most gorgeous purse, even if the most gorgeous persons like now dad behind this money, man when he got it, how beautiful you are at Us You have time we're about to wrap up, but we want to get one twitter question in with you at least an since I've said three lines this whole podcast figure. I should pitcher to you before somebody asked so Michel. What's next that to your question on a lot about what what was in the past you're here. So you know we're gonna wanna, because you know you're like get your channel is like gives you started using now? There's no music coming also, and you like,
set. You made an algae, where it's kind of like the beginning of a party people come to it. You know to the party is starting up, so you know how you kicking off this party in an out truck coming in ten minutes. I don't I'm just I don't know, I don't have a master plan. Really? What were you doing what you doing currently rate without, but then you said you, which I thought was interesting because, like you said, I'm an maneuver driver right the driver and mean I have to show up and drive, but you have created another goober but you want to go back to driving a little bit you miss driving a little bit on a cruise entire regions, just for your own, because that's you, doing that you started because you laminate right you when you get back into. Can videos, or is it to make some what else do you want what else I am actually learning how to make music
I've been living but like making beats computer technology. Now I'm not to be just adding more to them the world to the world yadda. I'm just trying to acquire new skills. Just I'm also doing a lot of mentorship mentoring, alot of young entrepreneurs, helping them with their businesses to hire you two men to me. You told me a little bit about a spoken with like other asian continent greater They are always talking about how they reached out. You know like welcome with open arms the stuff. Something that I have had a brilliant. Yet instead might random creators, species or Gmail man, I'm Snoop Dog, hey. Well, I mean when you get many twitter questions in, but I guess that's what our time so again, thanks for being here, if you want to plug anything.
I'm not for your cell yourself or I would thank you, get your everyday came. Another milk also, my friend, who I've been mentoring, launched, really cool phone covers called hypes lights. He can find it on Instagram type in hype, slides it's a phone cover and it's very practical cause do they know. Is that why- and it looks fine because earlier you taking a picture now where you can wait a lot what are you a socialist Michel, fun, I follow Michel at Michel fan on La Fawn. I keep seeing fan artifice, easier, H, n on Instagram, all your other social, it's on their also drink, ninja support support on January, by the way, I'm not paying I've. Why one it wasn't. A quick was neither the music stuff that you're doing, though like. I want my later skin. Yes, I think that's
Let's just go to hell automatic dot com, a medic, Matic, hello, thematic dot com, and you can have access to all these great music for your content without having to worry about take downs because article thirteen, seventeen Bucky all fishing, the Uk Swish Young, once the UK approves out it's gonna trickle down. The U S and relieve us of class. Well, that's another topic: why have you back Monsieur year would have to come to you because you're far, I also follow asset at off the pill on Twitter at the bill pike, ass uninspiring. We still it every single podcast we will one day have them be the same thing, but until then almost there that was our first if I guess it was not bad while kings, work out, we're kinky, but let's robber outright so hawaiian? These is your basic just breathe into the MIKE and three to one of these.
Transcript generated on 2020-03-28.