CBT AUTOMOTIVE CONFERENCE GARY VAYNERCHUK KEYNOTE | ATLANTA 2017

morning thank you that was fun uh thrilled to be here I do want to go pretty hardcore Q& A uh and so I will set a framework for this discussion and then we'll do some Fireside and then really at the end of the day the reason I'm trying to push more Q& A is at the end of the day the content is something that you guys can all Google and see over and over but it's so rare for us to be together and I want to go into the details I think a lot of the way I think about the world is I call it clouds and dirt right you have your strategy your thesis the things that matter to you and then all the magic the word that's been said so much as hustle it's the execution I genuinely believe that the reason I have the luxury of standing here and having things that are happening to me in my life uh are only predicated on the fact that not only am I the architect of all the things I do and try to accomplish but I'm the plumber and the Mason and the garbage man as well I have enormous heart uh for being a practitioner the biggest issue in this room whether vendor or owner of a shop or a marketing manager within it the largest issue is the lack of practitioners ship across all disciplines to then be able to weigh the benefits and to me that is something I've become massively UPS obsessed with I you know Frank where are you look there you go my man it's fun to have Frank here Frank this is really funny Frank is literally the first agency I ever knew existed he sent me a bill for Billboards that I bought for Wine Library and I said to him what the are you sending me the bill for because I actually thought people that sold advertising got it from the people they were selling not the client it was like a whole to do I'm glad I got my dad to actually pay you um so it it's fun to have him here it's fun to be here especially the discussion we had 15 minutes turning into 90 minutes is a rarity comes out of the heart and the way I feel about you guys uh you know the tone that I'm bringing to this talk is very simple I massively care and could care less of you taking action on about what I'm about to talk about right at the end of the day you aren't my sister or brother or Mom and I can only care so much at the same token I am baffled at why people aren't recognizing what's happening in the world right now and it comes out of fear insecurity it comes out of who's making the Judgment call right when 73-year-old Stan is and he loves print or outdoor or television or what have you I'm empathetic that you're pandering to him being the king judge and the jury it doesn't make it right we are about to live through and we are in the biggest culture shift that the human race has gone through since the event of the printing press like please understand that in 5 to six years seven years we've gone from internet dating being the most taboo weird ass that you told nobody about to every single person you know swipes to the left and the right like we are living through massive culture shifts I was told as an early investor in Uber that nobody would get into a stranger's car like there are people in this room that never thought they would buy anything on the internet that only buy Amazon Prime this is real and I don't even want to get into the macro 20year dealer Brands and cars going direct to Consumer and having no need for the middleman infrastructure that's not even where I'm going cuz the truth is that will take a lot of time and probably the far majority of the people in this room won't deal with that but where do you think this is going like what the hell do you think is happening and so we are living through the biggest culture shift we've ever lived through this goes Way Beyond should you spend money on Facebook versus a billboard or radio spot this is how are human beings interacting with each other and what are we really actually living through and how fast is it actually happening it's happening way faster than people think and the thing that I'm most concerned about is that you're going to lose off of silly things like your romantic point of view of how you think the world should be you're going to lose on what how you got here my friends let me promise you one thing what got you into this room today is not going to get you to the next place the game is changing constantly and the attention is Shifting aggressively this is the remote control of our lives this is it if you don't understand everything that's going on in this device which platforms let me remind you over 50% of our time humans time on a cell phone are in a social

network when you start understanding that it's not as easy to just disregard social media as this little thing and let me promise you something for the people that don't know who I am I could care less about social media technology I was 19 years old before I ever really even used the computer I'm not techy I don't think it's cool I don't give a about gadgets I only care about one thing there's only one thing in the world I care about which is attention I want to know where the attention is and then I want to figure out how to story tell to it to make the outcome that I want to happen whether that was to sell wine whether that's to turn you into a New York Jets fan whether that's to raise money for my nonprofits whatever my punch my right hook whatever I'm trying to accomplishes I can't do anything until I have your attention there's a lot how many people here are vendors B2B marketing to dealerships raise your hands high higher so there's a lot makes it fun for me I'm fascinated by B2B right sales in a world where setting up at conferences cold blasting emails using LinkedIn to just Spam people 247365 like I'm fascinated by B2B today in a world where I built a $150 million agency in 5year Period on the back of using the same stuff I'm pontificating about including following one more time vendors all the vendors in here all the people in this room and the world that you're trying to get to live on some social network and you can actually follow what they give a crap about and instead of giving them a spam email in LinkedIn that they've never read ever you can actually figure out that they care about the Atlanta Braves or cooking or coconut juice or running actually engage in a conversation you know like a good salesp person and create a gateway drug to a relationship that you then close business on so to me what's really remarkable I would say General Electric uh for you that don't know I have a very large agency you saw a clip in the video I would say GE might be our happiest best client because B2B I'm in B2B now I grew up in the wine business that was b2c you didn't know who your customer was everybody's your customer it's expensive it's hard B2B is a piece of cake just straight up like I don't know how you feel about that I'm just telling you it is you actually know the name of the human beings that run the businesses that you could do buiness business with like you know the ability to actually follow what they care about Market to them get to them is remarkable it's literally shooting fish in a barrel yet everybody does the same tactic which has no value and aren't able to close so I think about a couple things I think that on a Cloud's level on a macro level everybody in this room needs to start figuring out who the hell they are what they are and what they aren't and you need to surround themselves with the things that they're not right self-awareness is the quickest way to happiness building a business I know I'm a Salesman Visionary I know I'm not a CFO I spend zero times on the finances other than make sure nobody's ripping me off you know like I think spending your time on what you know and you don't know now what that doesn't mean is for at the end of this talk the three dealers that get inspired and go you know what yes now I'm going to give 24-year-old Kathy the Reign on spending more in Social I want to remind every business Le in here how many people here uh own their business raise your hands you have to be the best practitioner at your business you have to know I don't understand how in a world where you would spend 50 or 100 or $500,000 on social or digital media that you would allow yourself to be at the mercy of another human being and by not knowing it at all in a world where 5 to 10 hours of watching videos or reading or however it's you know fun for you to conse consume content will put you in a remarkable place of knowledge of what's actually going on and there's a website that can help you in detail find all the little details so I see a lot of you have pads if you want to write this down it's uh it's spelled g o gle. com here's what you do with this site called Google you type in things like how do I run Instagram ads to sell cars and this is remarkable shows up and I want to remind everybody YouTube is the number two search engine in the world and it's somebody who can't read it for YouTube would be great for me to consume content audiobooks I don't care but I promise you if I could get anything out of this keynote today I would get the leaders to not pass the buck to this future world that you don't know and you didn't grow up with driving you figured it out right um to pass that buck and not put in I'm going say it one more time 10 hours 6 hours 9

hours 13 hours of homework to understand what's happening on Facebook and Twitter and Instagram and Pinterest and YouTube and understand what's happening there and searching very detailed things not you read about a juice cleanse and how does that work to you when you're trying to sell a $30,000 item no search selling cars through I mean this is just real there are dealers and I've spoken on the dealer circuit quite a bit over the last four or five years Toyota is a very large client I understand Tier 1 2 three now I've become dangerous I know what pulk data is I know this world and so what scares me is how quickly how utterly quickly with zero days of history and youve third generation dealer how quickly I would your world up if I bought a dealership in your town not because I'm so special but because you're wasting money you're just thr money away and I just wouldn't and that would play itself out over time and that's why I've been successful in every business that I've run and every business that I impact it's just trading attention if you're overpaying for attention and I'm stealing attention I will catch up to you no matter where I start this is the history of the game of business this is what happens and if you're actually just fascinated by marketing the way I am I implore you back to Google go read articles and books however you roll on what happened in the late 40s and early 50s when we transitioned from a primary Radio Society to a primary television Society we are in the full swings we're in it now this is not coming we are in it of transforming from a full television Society to a full mobile consumption society and that's why the stakes are so high and this will happen quickly like how many people here are retiring in the next s years and I don't mean you're going to crush it for the next 7 years and go buy an island I mean you're old and you're finished 7even years raise your hand show me one or two one no that was a selfie one enjoy it good work for the rest of you I want to implore you if you think there's a lot of tech things going on right now wait till you see 7 years from now wait till the platform shift right in 2000 2001 the reason I was able to build a w a big business and this is great to recall Frank again I've said this a couple times lately I shouldn't have done the Billboards or the print or the radio or television not cuz it was really a bad price cuz in that day it was a good price it was fine I was fine with the price of it was that Google AdWords was so underpriced like I'm embarrassed when I tell My3 to $60 million business story it should have been 3 to 150 million cuz I should have taken every one of those dollars and continued to buy more5 sent clicks on the word Cabernet Mero Bordeaux chardonay but I was doing a full mix I didn't realize I hadn't lived or had the experience yet to have that moment in time when you have the best hand in poker and you're supposed to go in I didn't know I know today right now my friends as I tell you if I bought a car dealership this is just one man's point of view that I would spend 95% of my marketing Budget on Facebook ads and Facebook videos and influencer marketing 95 search is phenomenal I like search I like DriveTime radio I think iHeart radio live read is actually a very good buy it's one of my favorite things it's just that Facebook is so ungodly underpriced the data is so ridiculously clean and correct and the5 to $13 cpms that you'll pay today to get into somebody's feed that's it within a half mile radius of your dealership when they're in consideration to buy a sudan that's going to cost $50 and $880 in 3 to four years the same way how many people here have been doing search for their company for more than 12 years raise your hand anybody there's one back there two right so you remember the prices they're different now that's all that's going to happen in Facebook and the one thing with Facebook unlike Google with long tail and you can continue to extend it I just want to remind people and this is depends on how good you are at basic economics called supply and demand unlike car becomes this model becomes this year unlike wine goes from wine to Cabernet to Silver o Cabernet to 2001 silvero Cabernet right there is only one news feed on Facebook and you are competing for that attention with not every dealership with everybody in the world and this Marketplace cuz that's what it is unlike digital pre-rolls on websites or car Centric websites or Billboards or PR print or television or

radio where they create a floor of pricing for their business this is a Marketplace supply and demand and it is going to be where everybody's attention is cuz by the way it already is I love how I speak to especially my favorite is like let's call it the cliche 44 year- Old marketing executive who argues with me about this and then her or his entire world outside of work her their friend Network and that age group lives on the phone my highest conversions right now and best case studies in Facebook is targeting 50 to 70 year olds on Facebook because here's the thing you don't know about 50 to 7 year olds when are on Facebook they're the best they go real slow and so they're just consuming it this is common sense this is real and so you may not like that the world's going more digital your child or grandson uh are always on the iPad live in it you may not like that when you go to a restaurant that couple's sitting there and they're both on the phone the entire time but I do I believe your grandchild and your children are going to live in a digital world and I think learning this stuff is a good idea when I go and see a couple both sitting there for 3 hours both on the phone I remember that same couple 20 years ago they both sat in front of each other and didn't say a word to each other right they just sat there and stayed quiet now I'm happy for them at least they're doing what they want to do their marriage is broken not their communication and so we it's true and so what I'm scared of is you're making business decisions based on romance that's what I'm scared of that you're making business decisions with complete lack of Education you've decided the ROI Facebook you have no idea what's happening there you may not even have a Facebook account and you've definitely never run an ad on it so that's what's happening it's not super complicated that's what's happening and so that's one big pillar attention underpriced overpriced let's talk about the agencies and vendors in this room if you do not believe in what you sell you are out of business a lot of you have jobs in here how many people work at a B2B company right now in here a vendor if you do not believe in what you sell you've lost if your children's health depended on what you sell working and you think no no I don't want to do that cuz I know it doesn't work but that's what pays my bills you need to think about that it's a losing formula everybody I've ever watched 20 30 40 50 60 70 80 years old has lost with this formula and the way to win is if you believe in what I believe you need to put yourself in a position to sell what you believe in the reason I'm the best goddamn salesperson you've ever met is I believe in everything I've ever sold every wine I've ever tasted that I sold any thesis I've ever sold any IDE idea I ever had any investment I ever made it makes it really fun I love selling nothing is more fun than selling what you believe in not going to always be right but you have to believe it from the get and the enormity and I'm talking 70 80 90% of people that I know that are selling B2B products that they know are Jack do nothing and are not valuable but it's good to get in because once you're in and you're a SAS product you're reoccurring or this that and the other thing or because your agency sells search or Banner or the hell you sell if you do not believe in it you need to figure that out cuz that will play itself out and then you're going to be in a really bad spot so I'm here to bring value that's what I'm here for so that's my little rant for you guys let's go into family business how many people here are in family businesses raise your hand so this is interesting this is probably why I like this space so much there's so much of that it's probably what attaches me to it it's why I said I wanted to be here I didn't realize how lucky I was you know I was 22 years old I came to run the business I'd been in the business since I was 14 and when I say been in it every weekend every summer vacation so I probably spent you know 30 40% of the year in the store since I was 14 years old I was in it so it was a foregone conclusion to me that when I became 22 my dad would let me do my thing cuz I proved in those 8 years 30% of the time that I was awesome right I thought that was a for gun conclusion I'm 41 years old as I stand here today my dad was 44 years old when I came home to run the business the fact that he handed me the keys to the car at that age blows my mind today I'm so grateful I'm so thankful I proved it in a lot of ways he was right because the first two years I ran the business I took it from 3 to 12 million in sales so that was good bet by Sasha vaynerchuk but I I'm thankful and so here's why

I want to touch on this issue for the fathers or mothers in this room who are not giving the air cover to their kids you're better off calling their Bluff and giving them some air cover to maneuver in than to have this debate and fight forever the thing I'm always Fascinate by is and I talk to a lot of dads and moms because they know my story I'm like no give them to like you know and by the way it's so awesome to talk to parents when you get real with them they're like no Gary you don't understand you're talented my son Rick is a face you know I'm like I get it I go listen the quickest way to get rid of Rick is to give him two years of some freedom to do something so that you have scores on the table so you could say Rick I love you but look you're over 16 everything you've done has been coming you burn down the the dealership you know like whatever it is so I highly recommend on the family business Dynamic to allow meritocracy to come through on the flip if you're the kid and you're now in year seven and grandpa grandma's mom's not letting you do your thing if you're such a winner leave if you're so great and Mom and Dad don't get it leave or save your money while you're getting paid here and go buy something and do something this is meritocracy this is C capitalism at its finest this is why we're so lucky one thing that has to stop in family businesses is the 40-year debate the tug of war it's Roi negative to both parties so if I can bring any value to this talk today for the people that are in family Dynamics it is the following number one if you're the king or queen a decision maker give them 10 15 20% call their Bluff show them absorb the short-term business loss and have less family headaches for the rest to your life if you're the kid and you're year seven or eight and you're such a goddamn Superstar prove it show me show yourself enough you couldn't convince them through 8,000 beers dinners family vacations move on means mom and dad is still hungry still want to do it just cuz they're 63 I'm going to be 84 years old and hungrier than all of you combined times 10 this is not an age thing hunger and ability like I love when I talk about digital like yeah grandpa doesn't get it I'm like yeah but Grandpa built a business you have 64 Instagram followers so this is not you know like like you know just for the 20 year olds 30-year-olds this is not like that this is you know I don't want to mass all this attention on social media cuz my self-esteem is wrapped up in my likes I want to buy the New York Jets this is business and I want to remind everybody on the recall of the first part everything you're going to hear from me in the Q& A in the Fireside I only believe in Facebook and Instagram influencers cuz it's sell stuff you know like I'm thrilled to buy banner ads I'm pumped to buy direct mail I don't buy Direct Mail anymore because I can get the same people through Facebook with better data and customized content for an eighth to 15th of the price I still want them to come to my liquor store and buy a bourbon I still want them to come in and buy you know like I you know again this is the lack of practitioners ship I'm far man Grandpa Rick in here than I am kid 22-year-old I'm just far that more to me it's all practical we've lived through seven-year bubble of good economy everybody under 29 to me hasn't tasted a punch in the mouth yet and I don't trust a man until he gets punched directly in the face right so like things have been good so like you think you're an influencer on Instagram and brands are going to pay you mlof but wait till you see what happens when the world melts so I this is pulling for both directions right but again since I'm over here now let me swing the other way meanwhile there you know you've seen innovation in this industry you guys are one of the most interesting Industries you've let internet companies get in between you and your actual customer now you're paying a vig to them that's your fault you should have built that right you guys know it was fun to get that reaction from all of you guys know what I'm talking about this is going to continue to happen it's going to get worse and worse and more and more expensive and ultimately if you don't provide value or have skills you won't be prepared for the world we live in this is like Fitness if you're not running hardcore Facebook advertising and doing Instagram influencers and trying to do Snapchat filters around the high school to get them to buy your used cars or like if you're not doing these smart things you will not be ready for what's next in 36 and you're going to keep getting further and further behind if the last Innovative thing you did was like buy a yellow page ad you're in deep like really so I here the things for the owners of

dealerships in this room not only do you need to get serious about this and reallocate your funds and whether you do it or not I don't care but I highly recommend it not only do you have to do that as you do that in parallel you have to be educated on what you're actually spending your money on you're probably undereducated on how you're spending your money on Google search or to your outside agencies to get to begin with so you're probably a good 7 to 10 years behind to begin with the amazing part about the world I live in is if you've done nothing right in digital marketing the way I believe for the last 10 years you can literally catch up in a weekend it's just business it's the same old thing it's just really business I don't know it's no different than buying you know a full page ad in a newspaper it's just a trade are you getting and by the way what I highly recommend is also putting more teeth around your marketing I love when people try to debate if it's working in environments where you have the full funnel you have the dealership put a code in there make a special offer make them ask for your best salesperson with a secret word that does this like just add one layer of smarts to figure out if it's working and now you understand if Instagram's working better than Direct Mail like versus radio this is very simple but what it gets to is people actually just not giving a enough you know like people are cruising along just like they kind of want it to be the way they are everybody's getting lolled into a good economy you know my biggest enemy is that you're doing well like yeah Gary's probably right up there but who but I've been growing 7% of a year so who cares I'll tell you who cares the guy who thinks you should be growing 39% a year what's wrong with 39% a year so and 8 years of a good economy just a matter of time and then you're really going to care how every dollar does everything and for the gray hairs in here like me we've been through a couple of those Cycles so you should not be confused what that's going to taste like and feel like and how you're going to be thinking and so wait are you telling me that you're going to wait for Wall Street to melt 9 months from now and now you'll get serious about the I'm talking about that's called losing DNA so I implore you to actually pay attention to what's actually happen happening in the world and what's actually happening with again this isn't 8 years ago when I was talking about this your 40 and 50 and 60y old friends live in their phone too there's a 68-year-old man in here who sent a poop emoji last night this is real now you even know what emojis are you know and so it is time to get serious about shifting your dollars traditional media works it's overpriced New Media the one the media I believe in Facebook advert iing Instagram influencers Snapchat filters you can buy us let me tell you what you can do that 98% of you don't know recently Snapchat opened up its Open Marketplace for filters which means everybody in this room can put a filter on a Snapchat photo I know 73% of you don't even know anything about Snapchat or have never been in it but it's a platform it went public the other day I'm sure you heard plenty of people use it predominantly people under 35 it was well on its way to becoming the next Facebook Instagram copied all its Fe feature so it's slowed down its age up so it's sticking for now 35 and under extremely strong 25 and under for your world has value get them into consideration set different things but here's the underpriced thing every person here the way that Filter Works is you take a picture and then you swipe your phone to get filters so little images that can overlay your picture and we like that okay now you can put your filter your custom filter about your dealership your face on it whatever your logo this Saturday sale whatever the hell you want to roll with we'll get into creative later but you can put that over any 20,000 mile radius box for $5 an hour I think it's a really good idea for every dealership here to buy the 20,000 Mi radius around the four closest high schools to your dealership and to run them but between 2: and 5:00 p. m. because there's an enormous amount of selfies being taken by high school kids and I just think it's a good idea I think that's a good $15 investment yeah dude right it's $1 15 dollars that's what I would have done when I had no money with wine library because I built that business from 3 to 65 million my friends on a budget that was $144,000 in marketing in year one 14,000 but because I made every penny work so

well because I thought about every single thing I could do and I decided email and I decided Google AdWords was going to get me the most that 14,000 became 100,000 that 100,000 became 500,000 that 500,000 became 3 million and so yeah I just don't understand that's really the truth I don't understand how you're running your business in 2017 without any knowledge of what happening in the Deep digital world you know to me by the way I just want everybody to hear this buying programmatic banners so in math and I know there's a lot of agency people here buying banner ads on websites that you don't even know where it's going to show up but you're just buying it because it's a low cost is the worst form of advertising in the world today worst than buying television commercials that I believe not a soul is watching on the flip side I genuinely believe that the Super Bowl ad is the best deal in marketing that paying $6 million to get 30 seconds store in a superow is the best deal in marketing so this is not about digital or traditional this is about trading the reality of the marketplace the $2 million Oscars commercial is straight the $6 million Super Bowl is amazing cuz every American will see what you're saying the banner ad for $6 CPM on digital the worst the bottom of my chart the worst thing to buy in the world the $6 CPM picture on Facebook targeted to people within a one M radius against pul data for your store the best they look the same they're very different that my friends is the difference between somebody who pontificates and somebody who lives it every day thank you want to come up we'll do a little Q& A and yeah cool so cool we'll do a little Fireside right now and then I'd love to like really get into the details with uh with anybody who's got questions thanks for having me great job I think it was spot on with the crowd I saw a lot as I know you did a lot of head nigh um right where you left off yeah I want to I want to pick up on that okay uh cuz you said here's a guy that's not just pontificating I'm living it yes and I think that's one of the your biggest messages at least that resonates with me is the fact that you do live exactly said so I know that you do something with the Toyota account yes talk to us a little bit about when you said attention is the most important thing where is the consumer attention in Auto today Facebook like Facebook is underpriced attention it's listen our attention's everywhere but here's the problem when people talk to me are what are you going to spend your money on right it's just practical like what are you going to spend it on you can spend it on Google ads right you can spend on banner and digital stuff TV you can spend on radio you can spend on Direct Mail you can spend on outdoor like what are we going to spend our money on to sell our thing it's it the attention's everywhere to some degree but does anybody think that more people are looking at outdoor today than a decade ago now that every passenger and every car looks at their cell phone while they're driving it can't be as valuable it just can't it's not it's not common sense right do you spe how many people have been on email for 15 plus years raise your hand do you look at every email as carefully as you did 15 years ago of course not my friends let me promise you one thing there's one thing I know more than the sun will come up tomorrow marketers ruin everything it's what I do the second I saw Snapchat come out I'm like okay how am I going to up this ghost like sell right like I'm trying to ruin Facebook here's why zux is such a beast Mark knows that attention is his only asset so the reason he ads on Facebook are going to get very expensive is he runs better and more math than any company in the world to know how many ads you're willing to see before you quit and never go back to Facebook and he's going to give you one less and he'll fill you with as much as possible which is only so many cu you got to see your friends pictures and your sports thing and your fake news and whatever the hell you need to see right you have to understand that's going to get expensive and wait to Toyota and Honda and Lexus and Nissan as corporate starts trying to get in there as well there's only one feed and wait to Coca-Cola Macy's just closed all those stores you guys heard that Macy's stores what you don't know is they closed all those stores to use all that money for Facebook ads so now all of a sudden you have $80 million more of Macy's ads competing with you and you haven't even started it's going to be bad for small businesses where everybody's paying attention and that's going to price us out so I'm trying to get you there now so that you get the

value now you learn from it and then you in 3 years when you're priced out can start going on Snapchat or whatever's new and replicate the wheel because it's always cat and mouse and so the attention's everywhere but no I don't think you should be giving van Wagner or Viacom billboard money I think you should take that 2,000 3,000 4,000 5,000 or 6,000 and spend it on pictures and videos and getting into news feeds on Facebook and I think should be giving it to Attractive people that live in your neighborhood on Instagram to come by your dealership and take a picture on the top of the hood of a car and get people to show up you could pay an influencer $1,000 appearance fee who like in the Atlanta Market Julio Jones on his best day Matt Ryan and Julio Jones on their best day couldn't have more people show up than an Instagram influencer I promise I Pro I'll tell you a great story I'm driving to a meeting I'm with a business partner there's this three block line in Manhattan at Sephora and it's pouring I'm on a call I look at him he's my partner company called resi which is a almost like an Open Table competitor so he's not my world I look at him I go I'm on a call I go YouTube so I'm just still on my phone I get done he goes I'm finishing up he goes what you say said I said YouTube I said Twitter it see if see what's going on to see what was happening there I get off the call he goes how'd you know I go and so the what I was telling him was the person at Sephora was a YouTube star and he goes how' you know that it was a YouTube star at Sephora with that ridiculous line and in the pouring rain and I said to him because a real celebrity couldn't have that long of a line the world's changed speaking of that we're all trying as marketers and and you've got an agency and I thought when in New York you touched upon something you said the importance of having not only the dealer understand where the marketing dollars are going but how important it was to have a marketing manager and director of marketing in the dealership that knows what they're doing yeah and if the owner if she or he doesn't know what's going on then the marketing manager can trick that person and that happens at every company here has somebody in the middle who's doing one of two things pandering to the old man to like keep their job safe or tricking the old man to keep their job safe it's just not working so everybody's losing I hate it it's just not right so you know and by the way the pandering one's devastating the person may know what to do but they can't sell it through and they're scared because they don't fully know cuz they haven't done it enough yet to know if it really works they feel it but they haven't tasted it enough so they're scared to take the risk of moving 100,000 to Facebook not having anything happen and then losing their job um it's a real chicken and egg thing that is solely squarely on the owner of the dealership everything is my fault as the CEO of Vayner media all of it I hired that person that's a right so like this is all on the owner's head she or he has to become educated and then they need to audit their person first they need to get educated if they if one or two of you because that's about all I'll get out of this talk if one or two of you are motivated to actually do this and I don't mean after this talk and you're jazzed up and you text your son and say yeah this guy I'm going to do it and then next Tuesday sales are down and don't I mean actually do it right if one or two of you are actually going to do it the first thing is you need to get educated read watch learn then the next meeting needs to be with your head of marketing and you need to say listen I know you've been here for six years I know what the course has been it's been my course if I'm saying Clean Slate what do you believe in the most because I'm looking at things a different way you've got to make them feel safe to tell you the truth they may be a traditional marketer by the way not everybody agrees with what I'm saying nor should they do your thing uh but that's what has to happen to that point one of the things we're finding in our and by the way there's another problem how many people here at agencies right I mean look and one more time we're all on the same team raise your hands don't worry agencies uh how many of you are owned by one of the holding companies raise your hands and how many are privately held great so the problem for agencies is they have their business to run you can't take a gen's advice blindly they're there to run their business and what they believe in and what their capabilities are that's like buying everybody's sneakers or drinks or shoes or homes they're in business this relationship between agencies and clients is a disaster at a macro level it's a disaster like and by the way it's not only the agency's fault if they know old man McGee and I'm going to keep picking on him only buys this that's what they're going to sell them Vader would be 500 million strong right now if I sold people what I know they would buy I'm obsessed with being historically

correct I have that luxury because I went into the game wealthy already so I don't need every dollar and so my wealth is going to be compounded in a marathon not in a Sprint I could care less if anybody does anything in this room agrees or disagrees with me I just know all of you are going to think about this talk in four years that's my Roi so you know the agency thing is a real problem too because there's more margin in search in programmatic in television in print in radio than there is in doing Facebook and Instagram properly and the truth is I know every agency in the game and audit everything 99% of them don't know how to do it properly cuz their clients haven't forced them into that bucket yet thus they're not doing it they believe in it they think it's coming they've seen the pattern recognition but they're not doing it at enough of a scale they definitely aren't creatively doing it I mean we are genuinely on an island of a 250 person creative and 75 person production video company that is native to making mobile content we don't even think about making content for anything other than Facebook feed Instagram like and that takes a whole different skill set because it's different copy it's different creative it's different understandings of the first three seconds of a video by the way let me make it more daunting if you fully believe in this if your picture and video sucks when you spend all that money on Facebook you lost the creative is the variable so it's not only believing in this thesis of allocation of attention then you have to be good enough or have the right Partners to actually make the pictures and videos that actually make people buy a car so to that point one of the things we're finding with I know the vendors out here will agree and so with the dealers is there's this change of narrative on metrics what's working what's not working which metrics to look at which ones to not sales of cars and the way you do that is by suffocating the marketing I want to be in a bake off with your stuff my picture can say ask for Rick or call do you guys know how to get Google phone numbers get a bunch of Google phone numbers use twilio make all your separate marketing call a different phone number and then measure it not only that cuz calls aren't sales of cars then follow through and which you know you might get 80 calls from Facebook you might get 130 phone calls from the radio but if you sell one car from the radio and seven from Facebook because the data you targeted were people actually in the goddamn Market to buy a car the reason you guys spend so much money is you're always spending because you never know when the person's in consideration Facebook has data of people searching to buy cars and you can get in their feed I mean what's the matter with people I'll tell you what a matter you don't know that truth that I know you didn't know that Facebook you think this stuff that came out the other day about the FBI and CIA like hacking every that yes like just assume everybody's looking at you at all times yes privacy is dead you are naked you don't like it stop using your phone let's see how long you last so yes it's a huge advantage and so you know the metric is selling cars man yep like you know the reason I want to pay an Instagram influencer who's like a goodlooking Ab dude or a booty chick is cuz I know 4,000 people will show up to my dealership and three of them might buy a car and I'm willing to make that bet I have to at least taste it I want to see what it looks like how are you not curious you touched on the third place let me tell you how you do it you go into Instagram you search uh you search a hashtag like whatever you just search actually you search I'm sorry you go into Instagram there's a search bar up top you search by location so you put in your ZIP code your town it shows you the 12 most trending pictures within a one M radius of your goddamn town you then look at all the pictures I promise you seven of them are attractive Scandal clad the other five or something else but you click on them you see how many followers they have they're Global it's not like all their followers are from Alpharetta you know like they're all over the place but you click on them and then you there's a triple little button in the top right corner that's how you message people you click it you DM the person and you say I own a car dealership I'd like to pay you to show up at my car dealership this Saturday from 12:00 to 4: and you tell your Instagram followers they'll reply they'll say how much you say I have no idea some weird guy told me to do this how much is it they give you an answer and then you take a risk you may lose $600 you may crap your pants when they ask you for $50,000 and you realize how real this is and you keep playing and then you try and then you learn when you're a pioneer you have to taste it there's no report there's no white paper

there's no modeling mix metrics that are going to teach you how that's going to work when you're the first explorer you have to taste the berries and hopefully they're not poisonous good stuff uh questions do we have some questions from here I want to make sure we get that crowd invol he's got a there we go hey Gary how are you great talk thank you uh so as I said you earlier we run an agency and one of our focuses is on educating our clients do we feel they're smarter of course but I want to take a different thing that you about but you talked about in some of your other videos and I think it would benefit them to me the honey culture yes the honey Empire that whole concept of somewhere along the line something tricked in your brain and you said we're too much honey not enough hard skills to grow so one what triggered it two is that part of the reason you can scale your company up to these things and how far do you know you go to or too hard not let me you guys are like what the hell so let me explain what he's talking about I uh I want my legacy to be something called the honey Empire my great ambition in life is to buy the New York Jets which was which will mean I'll have to become a multi-billionaire if I can build a multi-billion dollar net worth on the back of being a good human being and teaching the future Generations that you can achieve all the financial iial wants you have by being nice and being honey over vinegar that will be far greater Legacy than me actually buying the New York Jets I was very affected by two major things number one Sasha vaynerchuk my dad was 22 years old when he came to America he grew up in the Soviet Union it's not a good place I hate when people compare America to anything remotely when Obama was President people would say that we were communist I or social I laughed it was a bad place and my dad got trained that way and my dad treated his employees like they were the enemy so I came into a family business where the 11 employees hated my father and it was I was visceral to that with my own DNA being I like being liked uh number two I grew up in Silicon Valley that era of Web 2. 0 when everybody idolized Steve Jobs and the narrative on Steve Jobs was he got a lot out of people but he was tough and I watched a lot of my friends manufacturing being mean to their employees cuz they thought they were Steve Jobs so I think it's important to bring more value to something that's good to you than you take from it and Entrepreneurship has been good to me and so I want to leave Legacy of something called the honey Empire which is I want to build an Empire like I just want everybody like when you guys like this is so weird the chemicals in my body are wild when you guys all raised your hands that you worked at other agencies I literally wanted to punch you in the mouth like in my body it's weird I'm extremely competitive it's comfortable it's a flaw it's extreme I genuinely actually hate you guys right like from a when we have the jerseys on when we don't we can have a beer but like I kind of want to put you out of business right so I'm there right on the flip side I believe in this Honey Thing what you're referring to because you're following my stuff is at Vayner media and at Wine Library I did the same thing which is the first three to four years I run a company I only do honey no Empire no meritocracy I don't care how good you are at your job I want you to be a tremendous human being if you're and you're a schlam you got a three-year career with me in the beginning because I want to so ground the culture in kindness in empathy in gratitude in being the bigger man and woman in every situation in lack of politics in that when a company gets to about six or seven years old for me and everybody can do it differently kind of like you know I have a seven-year-old daughter you start expecting different things from your seveny I have a seven and a four-year-old you expect different things from your seven-year-old than you do from your 4-year-old last year and this year have been a little bit more difficult for my company because I've been putting it all on my back and you know 100 schlam and CN D players were getting by because of my ability to grow Topline revenue and hide that issue but what happens when you start building a company at scale is the a players start sniffing out the C players and they start getting frustrated if they are being equally treated and they're a winner meritocracy and capitalism start to fail and you start having an issue I keep a pulse on my businesses cuz I'm in it every day and I felt that late last year early this year was the time for us to make 30 40 significant cuts that would set the tone that we were now on a different path so yes I do think the reason I'm able to scale monster businesses is because I give a about my people more than they care about me I should I laugh when my friends tell me how do you get your employees to work as hard as you don't the way you get them to work as hard as you is you give them equal economics to

you which is not what most owners want to do so I'm uh I only care about what my employees want in their lives if they want money great I'll give them that if they want work life balance great they can work 9 to5 like they want to be challenged I'll move them Department to Department I reverse engineer every single person one by one and I try to figure out what they care about every day CU it changes cuz 23-year-old Sally who just moved from Alabama to be in the big city in New York is going to be a different woman six years and she's going to want different stuff and so that's how I think about the honey Empire and it will be the great legacy I leave in the business world when I write that book when I put that narrative out a lot of what daily V is that a lot of stuff I don't show in my Vlog in Daily V that we've got in footage which will be released in 10 years because it's now people's lives not on the line anymore well I really do want to leave a big big business Legacy because I feel like I was gifted naturally gifted most 12y olds aren't supposed to make $44,000 a weekend selling baseball cards like I've got something the same way an athlete has something or an actress or Beyonce like I'm all time like I know it like you will tell people one day that you were here I promise you I'm going to be the biggest most successful best business person to come out of this generation I know there's real fancy people way ahead of me I will catch them that was the Empire Empire P that was the EMP High part hey here how are you good how are you really well uh welcome to Atlanta thank you happy to have you here side note having you and Tony Robbins in the same room was epic thank you I hope that happens again I'm sure it will um so and you kind of touched on this earlier but you said before that um no amount of paid advertising is going to turn bad creative into correct uh you know good content that's right and it might seem kind of obvious but I think sometimes we're kind blind to it in this of defining what is bad creative um and then also just a second are you asking how one defines that yeah I mean just can I give you a quick answer so you can go to your next one yeah absolutely you have to produce creative this is on agencies make margin on their creative and aren't looking for efficiencies they're making it fatter agencies need to create more creative quicker cheaper so that we can let it go live in the market because you and I don't get to decide good creative the boss that owns the agency the deal ship doesn't your creative director doesn't the market does and if you're relying on 13 second video of a Jeep going up a Hill to like drive your business you're out of your mind so the only person that decides good creative is the market so the game now has to be how much creative can we create efficiently at scale to give the dealership as much at bats to sell product so because nobody gets to decide beforehand nobody not a fancy person that want to can lion not what ad age said nobody the market okay and um thank you for that and my second question is um we're kind of unique industry in that and you know it the tier situation tier one three um and sometimes the lines get blurred and I'm wondering if you can kind of uh create some distinction and Define really the roles in advertising for tier one versus three I think the dealerships in this room should not care about what the mother ship is doing the best lines are the ones that you don't even accept are there crying about what corporate's doing is loser DNA like what are you going to go to Japan and talk to Mr Toyota and convince him like like crying about you can't control is asinine it's the definition of insanity and it speaks to people that are just not going to win at the highest level lels like I don't care I every time there's a political presidency thing like it's such loser DNA like not Trump not Barack not Bernie not Hillary no they're not going to do anything for you idiots like you're in charge like yes you can pay less taxes fine but when you paid more everybody that looked like you paid that too come on like nobody's going to do this for you nobody cares about your feelings nobody cares that you grew up in a broken home suburb nobody cares you should care and take full control and responsibility it's the quickest path to Victory so I don't care what corporate's wasting their money on you've got your money figure it out or change dealerships you don't like Mercedes go be an Audi house I don't give a but don't cry right like everybody's crying like if you're sad switch hey man

hey you're good okay um so I know you talked before about a Samsung ad on your phone you never want to buy a Samsung product yes if you were out buying a car today what's one thing that would make you turn away from a dealership for forever you know truth is with cars they're so utilitarian to me like I know nothing about cars like I love when my friends try to talk to me about horsepower this that like I know dick about cars like the way I bought cars is my cousin loves cars and he's got friends in different dealerships and like I'm giving you the real answer which is I'm in this category I'm just super passive I'd be the cliche person that literally pulled out of their house and whatever dealership was first you won me on location if I didn't have my cousin telling me it's word of mouth so the key is influencing the influencer your key to sell me a car is Bobby Shi not me and guess who can tell you that Facebook so that's me you know it's just Word of Mouth from somebody in my inner circle who does care about it and that's how I've gone from Lexus to Land Rover like I don't know whatever awesome thanks yeah hey man hey um I didn't come from a business family started a auto reconditioning business 14 years ago um I may be the only person in that business here there's been a lot of focus on marketing my goal is to get the dealers to bring them value uh we also Start A Creative Marketing or media firm we do video production but on the Human Side okay um well that's kind of a weird thing to say but you mean on the stories of the people at the people HR try to build an brand um trying to figure out a way to merge those two things um because I want dealers reconditioning business I want to make the used car look good for sale which everybody still wants when they see the car um but I'm also trying to Leverage The human element the messaging and the creative to get the dealer door so from a B2B side for me um you just have to ask you're actually doing it you just might not be converting at the level that you like so then either your ask isn't strong right or it's just a Serendipity of the people you've talked to no you're right it's the ask it's pretty obvious though it's funny how but it's interest but that's how it is man like bro this is my world like the things that people say to me and the things that I don't understand that they answer this simply and you're like jeez I get it it's the ask like jab jab right hook remember like you got to throw the right hook you just might be in a place especially if you don't come from business DNA and salesman DNA that the ask is a little bit difficult but then if you don't ask you don't get and on that note uh thanks for agreeing to be on the podcast later if you got it I remember 5 minutes before I leave you may have to run with me because I'm running to the airport I will okay two years ago 2012 excuse me 5 years a couple years okay so J from pigon social working in starting in the automotive kind of the middle of my Care Now biggest client is there 2016 was really the year of the jab for us we hired full-time content creators at all of our big dealerships who they create value based content for our current customers you know here's how you do this that not selling but this year we're trying to get into throwing some right Hooks and I did a deep dive into data for the client and it's like ads is a big waste of money if you're not watching it very carefully so we by the way real quick Everything Is Right Facebook is a big waste of money radio is a big waste of money influencer marketing is a big waste of money when you're not watching you're losing yeah so the group has hired we we' hired a full-time guy to basically look at data for what we're doing and really move over from AdWords into Facebook yep um and we're trying to get like microt targeting and you know but it's really hard right like Google's amazing like search is great cuz it's intent based marketing I'm looking to buy a car this week like it's incredibly good marketing when you jump to face Facebook now you're in the art game right Google's blew letters and intent Facebook you can get in front of better people at scale but you have to be good at the creative and that's hard so as we're digging into that though like some of the markets we're in we could take our adwards budget and get in front of if we took $10,000 and put it in our city we'd be in front of everybody all of the time that's important own it but do you end up hurting yourself by kind of flooding it where everybody just sees you NOP cuz they won't see you all the time just cuz you're in a Newsfeed they might have been going through it and their kid dropped something and now they just missed you like people's attention is very difficult to catch there's no such thing as overexposure in our new world we're not in three channels and six newspapers anymore like yes a trillion people watched Mash you know like have you seen the numbers on how many people watched Mash or who shot Jr then last episode of Seinfeld people didn't know everybody predicted the biggest it was a big drop

off cuz the internet was already around now the number one show on TV is a blip television today last year Empire or two years ago Empire as the number one show would have been cancelled in 1984 attention's tough my friends so no such thing as overexposure you see you know how I always talk lately for the guys and GS that know me like watch me don't listen to me I'm pumping out so much content you guys love me with all your heart and you can't keep up on your best day I'm doing that because of what I believe which is you can't have overexposure couple things right if we were like I've been predicting the crash for like 24 months now so I'm you know I'm nobody to predict the crash I just know that eight or nine good economic years in a row has its play but maybe this is the time that it goes 16 in a row I don't know you know nobody knows we all did but here's what I would say this is why I'm so focused here today what the way you survive and remember and I might have mentioned in that episode both Wine Library and bayner media were built during bad times um because I'm a practical you know how I often say I'm not predicting or I'm not a disruptor I'm practical everything I just said I just want everybody in the room here whether you agree or disagree with me whether I'm right I I'm think I'm going to play out to be historically correct I think I'm stunningly practical I think everything I just talked to you about is March 27 is March 2017 practicality and I think what you're doing is insanity CU it's passed us by I think you're you know people think I'm a disruptor or a futurist or a provocator no I'm practical and you're insane holding on to the past that's why I've consistently made a lot of money so what I would say is the only way to survive is when you have to let people go when you're selling you know instead of 59 cars a week four like when that all starts happening that's when you have to make all these pennies work like never before that's why what I'm saying now has never been more important because if you actually know how to use Instagram so let's play out Instagram influencers just that one story you know booty girl and abs guy want 5,000 now if the world melts they're getting nothing and they're making 71,000 a year right now being an influencer and now they have to go work at Bank of America they don't want to do that they liked it when they were taking selfies with tea at their house and living the dream when you DM them now you might be able to pay them $100 instead of 5,000 see where I'm going just cuz the market crashes the stock market and forces the economy into a worldwind down doesn't mean that people are spending any less time looking at Instagram got it that will continue to grow so now the attention during a down Market is going to be remarkably well priced got it so what you have to do is make sure you actually have the money to do something the best way to have money is to make more money remember that joke I made about 7% and 39% that's when it rears its head that's when your stable growth that's equal to every other compactive average player stable growth doesn't give you an advantage got it so that's why I want people to start doing this because if they start reaping the benefits they'll have short-term Financial growth if they're really smart they'll stash a couple of those pennies and then they're going to make those pennies really work when people are looking for money Gary you've been awesome we appreciate your time I think we went a little bit over but again guys give them a round of applause thank you that's very nice