BeachBody Coach Summit Keynote 2016 | Gary Vaynerchuk

- So what you can get on podcast. This guy is such a wealth of information. His media company, VaynerMedia, is probably the hottest company out there in the world of digital marketing. We are so excited to have him with us today, ladies and gentlemen, please welcome Gary Vaynerchuk. (bright music) - Thank you. (applause and cheers) By show of hands, how many people here have no idea who I am? Raise it. (laughter) Yup, that hurts. (laughter) So with all those accolades and all the things that go on I was aware of that situation so what I'm gonna do for the first 10 minutes here is give you a little background. I apologize to those who've seen it a few times but I think it matters because so many of you don't know who I am and I think the biggest thing that matters to me is to create context with you because once you understand where I come from, how I got to this moment I think it's gonna deploy and matter to a lot of people in this room. And I think it maps to where I think the opportunity is for so many of you in the marketplace today. So I was born in Belarus, in the former Soviet Union. I came to the US when I was three. I lived in a studio apartment with my family in Queens, New York. (cheers) Big ups. We were super poor. There was eight family members in a studio. It was really tough. My dad got a bunch of side jobs. It was the late 70s for, this is a young crew, but the economy wasn't good. And my dad got a job as a stock boy in a liquor store in Clark, New Jersey. He eventually became the manager of that store and we moved to Edison, New Jersey when he did that. (cheers) I like this cheering everything. (laughter) I can get into this. When I moved to Edison, I was five, six. That's when I started my entrepreneurial career. When I was six years old I had a six lemonade stand franchise which meant I was good enough that selling a. k. a. manipulating my friends into staying behind the lemonade stands all day while I would go around and make signs and put them on trees. I'll get back to that in a minute. I used to ride my big wheels bike at the end of day to pick up my cash like I was little Tony Soprano. (laughter) So that was how it started. It was good. Actually, you know what? I think a lot of you would appreciate, this is actually a better way to go. I always tell the story as that being my first business 'cause the truth is I'm actually embarrassed of the first business that I ever really did have but six months prior to that business I started a separate business which was I went in to people's yards I ripped their flowers out of their yard I rang their doorbell and I sold it back to them. (laughter) Great margin. (laughter) And the reason I wanted to tell you this story is I'm about to get an on the back end of this talk into a lot of warm and fuzzy feelings, a lot of community, a lot of technology but I want to make sure everybody knows that I'm very grounded in being a salesman and a businessman but I think there's a good way to do it in a bad way to do it. I think it's rip people's flowers out and sell it to them. I think I got better along the way and I think I continue to get better and to be very honest in the competitive landscape that so many of you play in today, I actually do believe the good marketing and selling has become disproportionally valuable in a sea of bad and it is the separating point. The problem is that 95% of this audience and look, this is where I start getting unpopular, I did a lot of homework before I came to this talk because I knew it'd be a lot of people. I was excited about it. So been doing some homework over the last three or four months actually. Following the hashtags, following your social media presence and truth is punchline is I think 95% of the people here are just not working hard enough. I think a lot of people like to cry about stuff. (applause and cheers) Oh, Facebook changed the algorithm on you. Tough. It's the market. That's what happens. We'll get to that in a minute. My entrepreneurial career took a great shift when I was 12 and 13. When I was 12, 13 I was selling baseball cards in all the malls of New Jersey. For all the 35 to 45-year-old males probably in this room you might remember big, big deal back then. It was the, it was the Pokémon GO of that moment. And it was great and listen when you're making two to

$3000 a weekend and you're 14 years old and you're putting, you know, $25,000 in cash under your bed and you're not selling weed you're doing a good job. (laughter) So that was probably, my goal in life is to buy the New York Jets which is gonna cost me several billions of dollars but I do believe that the richest I will ever be in my life is when I had $25,000 when I was 14 because you just don't know what to do with all that money. And so, that was great and then my dad ruined my life. At this point my dad, very much my hero with my mom. I am perfectly parented, a new book that I'm writing how to raise an entrepreneur. My dad ruined my life I was making $2000, $3000 a weekend, my own boss. Living large and turned 14 and oldest son, immigrant family born in the old country. My dad now has a small liquor store in Springfield, New Jersey as he saved up all his money and worked hard. He drags me into the business and he pays me two bucks an hour to bag ice for 15 hours a day. How many people here by show of hands saw the movie "The Goonies"? (cheers and applause) Great. So for two years of my life, every weekend, every summer vacation and I mean all of them. How many of you remember the last day of school you would have a half day? Recall, right? My parents were so gangster they would pick me up on my half day of the last school and drive me to the store to work. Like zero days, zero vacation days. I would work all the time and for two of those years the reason I referenced "The Goonies" basically I was chained to the basement of my dad's liquor store like I was Sloth. (laughter) Finally, I turned 16. I was allowed upstairs. (laughter) And something very interesting happened. It was the early, early-ish 90s, I start realizing people were getting into wine. And Wine Library was what I had in mind. What happened was my dad's store, Shoppers Discount Liquors, was in an affluent area of New Jersey so people were coming and asking for wine even though we sold beer and liquor. And finally somewhere around when I was 16 six months in to being upstairs somebody came in and asked for a bottle of wine. Then somebody else came in and asked for that bottle of wine. Finally, the fourth guy came and I said, "What's going on with this Caymus Cabernet? " He said, "It was just named "the wine of the year by the Wine Spectator. " I said, "Okay," people kept coming in we were sold out. Coming in, finally 20 people have come in. They're all coming in, we don't have it, they're leaving. Seems like a bad business model. I say to myself, "You know what? "The next person that comes in I'm gonna take a back order. " Right? We don't have a back order system but I go to school on Monday anyway and I won't have to deal with it. (laughter) Guy comes in goes, "Do you have the Caymus Cab? " I go, "No but I'll take a backorder. " He goes, "Great," name, address, phone number. I go, "How many bottles would you like? " He said, "I'll take six cases if you can get it. " I said, "Whoa, an alcoholic. " (laughter) I said, "Six cases? " He goes, "Yeah," he goes, "I collect wine. " And that was it. It's, you know, I love you guys like smell something or hear a song but you can be brought right back to a moment. Literally, telling you the story, remembering how that guy said it, I remember what I felt in my heart which was the following. At that point, even at 16 years old, because of all of my success I thought I could run the business better than my dad as any good punk entrepreneur kid should but I wasn't interested in selling Budweiser or Coors Light or Absolut. I wasn't interested and I was sad 'cause I wanted to help because I was so thankful and grateful of, by the way real quick, how many people are in this room are an immigrant or children of immigrants? (light cheers and applause) It is such an advantage because I remember feeling so thankful to be able to be in this amazing country. I was born, I'm a businessman, right? I'm an entrepreneur. I was born in the worst place in the world for that, Soviet Russia, and I came to the best place for that. So I remember I felt guilty. I wanted to give back to my family business but I wasn't interested and at that moment I remember thinking, "Oh my God, Ken Griffey, Jr., "Michael Jordan, Frank Thomas. "Caymus, Opus One, Château Lafitte. "Same crap. " And so, basically I deployed all my passion of learning everything about sports into learning everything about wine and no 17 year old on earth should know as much as I did about Pinot Noir and Sancerre and that's because I had one huge advantage. How many people are parents in this room? (light cheering) I want you to pay very close attention to what I'm about to say. My big advantage was I was a D and F student.

and that was very weird because if you're an immigrant in this room you know that when you come to America everything that you're taught is education is the way out of our poverty. Right? But I was a D and F student and I mean D's and F's. Most people don't believe me anymore because of my success. So much so that I have my assistant last week reach out to my high school, I'm getting my report cards and I'll be posting them on Instagram for you in the next couple of weeks. (cheers and applause) Real D's and F's and again, if you're my age group, a lot of you are younger. You're lucky, right now, as a lot of you know, being an entrepreneur is cool. I take selfies. It's a trend. People care when in the 90s it wasn't and school was the way out and so my D's and F's made my teachers and my friends' parents think that I was going to lose. That I was a losing player and so it's so interesting to me that the reason I know I'm successful was somewhere around fifth grade I realized I did not give a crap about Saturn. (laughter) Algebra wasn't gonna do it for me. And so what I did was I deployed and honed my skills at 12, 13, 14, 15, 16, 17 so by the time I fell in love with the notion of what that was going to be that was already ingrained in me. I thought I was gonna open up 8000 wine and liquor stores, the Toys "R" Us of wine, sell the franchise, buy the New York Jets. Here's where the story starts getting relevant to you. I go to college, I'm playing Madden '95 in my dorm room, dominating by the way, my friend runs in and he says, "You have to come and see this. " I finish my game, I walk into the room and there are eight 18-year-old dudes hanging around a computer. Now for a lot of youngsters in this room, you don't recall this, I was 18 years old at this point and probably spent less than three hours on a computer in my life. By being a D and F student and getting an F in computer class I was able to stay off the computer. Right? (laughter) This is 1994, I go in this dorm room. There's eight guys hovering around a computer. I hear for the first time in my life (mimicking dial-up modem sounds). (laughter) 'Member that? My friend signs on I say some profound thing like, "Is this the information superhighway? " (laughter) My friends load up an AOL chat room. They type in ASL. (laughter) There some 35-year-olds in here. (laughter) That was a snap back in the day. We talk to make pretend girls for five hours. (laughter) We were for three of those hours make pretend girls ourselves. (laughter) We're doing our thing, I literally get my turn. We're like hanging out, like for the youngsters in here, we hung out and watched people on the internet. I got my turn. I get on there in eight minutes somehow I end up on a message bulletin board in AOL that's selling and buying baseball cards. In 14 minutes I make a transaction. Within 20 minutes of ever being on the internet, I said, "My God, I don't need to open up 8000 stores. "I'm gonna do something on this. " 18 months later I launched one of the first three e-commerce wine businesses in America called WineLibrary. com. (applause and cheers) Don't clap. Here's why: the first 18 months that site ran, that site cost $15,000 to build. We were small family business. $15,000 to build that website, in the first 18 months, 'cause I was still at school, I wasn't fully back at the liquor store, in the first 18 months on that $15,000 investment in 1996, '7, '8 internet world where most people still weren't on it that $15,000 investment brought back $480 in sales. (laughter) I don't know how many of you have a Soviet father-- (laughter) but Sasha Vaynerchuk was not happy with the ROI. (laughter) It was one of the more important lessons I've learned in business. The disproportional reason so many people in here will not win, let's just get right to the chase, the disproportionate reason that most people in this room will not win is actually not the hard work which is what I'm gonna talk about probably for next 45 minutes.

It's your lack of patience. (applause) For some unknown reason when people go into ventures like this and other things they somehow miraculously think it's going to happen in five minutes. That you're the one person in the world, whatever you guys call your big club and put posters of each other up on you think you're going to be in that circle in five minutes for some reason 'cause you're the most charismatic, you figured out some weird system, you've got it. And the lack of patience is what hurts so many people and so by losing so much money in those first 18 months, I had walking into a system that I had to be patient. I had to build. I had to work from 22 to 30 years old for eight years in my 20s I worked 15 hours a day, seven days a week in my dad's liquor store. Today, with all things that happened to me, I get emails on Facebook from friends I went to high school with often starting with, "Gary, you're so lucky. " I reply to every single one of them. All of them with the reply of an opening line first, "Jan, great to see you again. You look great. "Kid's super cute. "P. S. I am super not lucky. "Let me remind you, Rick, remember when we graduated "college and you went to the Jersey Shore every weekend and "hooked up with chicks and drank beer. "I worked. " (cheers and applause) "Rick! " (laughter) In those 15, 18 hours a day out of school I grew my dad's business from a three to a $60 million business which meant I was 27 years old running a $60 million business and I was paying myself $54,000 a year. You know why? 'Cause I'm patient. Because I don't need a cool watch. I don't a fat whip. I want to build something and one of the other biggest things that pisses me off about everybody that's been crying about the Facebook feed. Let me tell you what happened when the Facebook feed changed. The single, follow me here, the single greatest advertising product in the last 50 years was built. But instead of taking a thousand of the $6000 you've made doing this buying and Facebook ads with it and then making $12,000, you cried. Thank you, have a nice night. (laughter) Let me tell you how I built that business and what I want you to get out of this talk that brings you value. The only thing that we are all connected by no matter what you do for living inside of this game, other games, if you go on to something else. You start a shoe company remember this if you remember anything from this talk this is how you will win, I'm convinced it's been the same game for everybody. Patience, hard work, talent matters. Nobody's gonna watch your lifestream if you suck crap. (laughter) All those things matter. All those things matter, however, this is the one thing that is my religion in the game that I play that brings disproportionate value which is the following: remember the one thing that connects all of us, the one thing that binds us all what you do for living, your relatives, your friends, you can all Kumbaya around this one thing. The only thing we all want and fight for is somebody's attention. We all have to get your attention before you tell me how great your system's gonna work or how awesome and delicious your product is or how great your abs are before you do any of that you need my attention. And what I do for living is I day trade attention. I follow attention and the funny thing about that game is you can't be romantic about where you want the attention to be. You just have to reverse engineer where it actually is. Let me explain. In 1997, when I launched WineLibrary. com, I went on a mission to collect every single person's email that ever walked into that liquor store. And if I was out about at a baseball game, I asked for business cards and I want your email and all and every day all I cared about in the world was getting somebody's email to put them on Wine Library's email service. In 1998, I had 150,000 people on an email newsletter. How many people here have done email marketing in their career? Raise your hands. Hi, quite a few. Good, listen to what I'm about to tell you. In 1997, I had 150,000 people on my email newsletter that had 91% open rates. Just to let everybody understand, right now, if you're in the 30s you're a hero but it wasn't because I was so great in

1997, that my content was so great, it was that nobody else was doing email marketing. I understood where the attention was and I understood that it was underpriced. While other people did direct mail and billboards and radio and did catalogs to your house, I understood that email was emerging. I was going to gather. How many people had email back in 1998, 1999, 2000? Raise your hands. So for youngsters, watch this. Do you remember how we treated email in 1998? We read every single email and every word like it was a god damn letter. (laughter) And because I had that attention, I was able to build a very big business. Then I moved on. There something called Google. I looked at it, I saw this new ad product where if you searched for a wine you could buy the first result, that was insane to me. I thought that was incredible and so I bought the word wine and many other words like Cabernet and Pinot Noir the day Google Adwords started. How many people here have done Google Adwords in her career? Very nice. I owned the word wine the day Google Adwords started for five cents a click for nine months before anybody bid me up. And that worked. And I kept going and then my career took a massive change that I think will really impact a lot of people in this room if you follow this blueprint. There was a new website out that I was intrigued by it was called YouTube. Everybody in the world was really not ready for online video. It hadn't happened yet. I'd been wanting to like play in that space. I finally saw the site YouTube. It was couple months old. There's not a single video on YouTube that had a million views yet. Period, on the whole platform. So seven months after YouTube came out, I started Wine Library TV which is the first time I was doing content not advertising and the premise of the show was very simple. I sat at my desk with four bottles of wine and I had somebody videotape me drinking it for 20 straight minutes. (laughter) It was a great gig. And somehow a year later hundreds of thousands of people watched me taste wine and give my thoughts and what I did was I understood the wine business at that point. I understood my craft at that point. How many people here have a friend or relative that is fairly into wine? Raise your hands. So you guys know exactly what I know which is the second somebody gets just a little bit of wine knowledge they become a straight jerk off. (laughter) You're drinking the wrong year. Shut up. So what I did was, by knowing that, I talked to people about wine instead of down to them. I talked about wine the way it actually smelled and taste to me instead of the words on the back of the label. I called wines, you know, this reminds me of what a racquetball smells like when you first open the container or if I ate an entire pack of Big League Chew and swallowed it this is what this tastes like or when it didn't go as well if you're at a farm and a sheep farted in your face, this is what this wine tastes like. (laughter) What I'm about to tell you and I'm noticing some people are in to notes this is a very important moment of this talk when I asked my stock guy to go to Best Buy to buy the camera for Wine Library TV while he went to the store and was coming back what I thought I was about to sit down and do in February 2006 was build the QVC of wine. I was gonna be on camera and I was gonna sell you wine. And then the first episode happened. Literally the first one. The light goes on and because I understood where the internet was going, I realized, my God, this is going to be online forever. And this is gonna work. And I'm gonna get big and if I go to a party and somebody says what do you think about this wine and I taste it and I'm like terrible and they go but you said it was awesome on Wine Library TV, I could be crushed. And so, from the first episode of Wine Library TV, I separated the content from the business. In fact, I had so many hard-core fans, one kid at MIT who loves math and data mapped my rating on every wine on that show and on that show over a thousand episodes that I did over 5 1/2 years I paned 71% of the wines that were on that show. Wines that I was selling in my store I was telling you not to buy because I realized it was better off for me to become America's wine guy then it was for me to sell you an extra case of Pinot Noir.

(applause) The reason I want a lot of you to pay attention to this because over the last week as I've been looking at the Instagram hashtags for BeachBody and this summit and things of that nature when I've gone down the rabbit hole of your Instagram accounts and your Facebook fan pages that is not the percentage of what people are putting out there. The majority of it is what I would call a right hook. I wrote a book called Jab, Jab, Right Hook. Give, give and then ask. Put out content that actually brings value but don't be scared to ask, you know, the funny thing is you would think based on the tone that I'm talking right now that I wrote the book to get people to throw more jabs. Ironically, I wrote the book because I saw a lot of people in 2008, '9, '10, '11, '12 do a good job on social media but not know how to ask for the business. They were just putting out content. Lot of people email me, they're struggling, I look like I'm like what's wrong? It's so good and I'm like wait a minute, have they not asked for the business? It's very appropriate to have people sign up, buy as long as you can provide so much value that you basically guilt them into buying. Basically, my entire life is predicated on providing so much value that I guilt you into buying my stuff but even more importantly 'cause already good, I just kinda want you to come to my funeral, right? And when you think about that and when you make that your strategy you go into a different place. Wine Library TV changed my career. YouTube sells for $2 billion. I freak out and go Jesus I've been right about everything where consumers are going. This has to be bigger then just selling a couple more cases of Pinot Noir and that's when I decided that I would invest in companies. I said the next time I feel something like E-com or email or Google AdWords or YouTube I'm gonna invest. I went to SXSW 2007, everybody was talking about this app called Twitter. Everybody thought was the stupidest thing of all time because who cares if you're walking the dog or eating pizza. I thought it was the future of email. I invested in Twitter. I made a video about it. Facebook saw it, I spoke at Facebook. I became friends with Zucks. I invested in Facebook and then I saw a bunch of high school kids playing on Tumblr and I invested in Tumblr. I'm rich. (laughter) But why I tell you that story is that's when my career started take, I'm telling that story because I wanted to brag. But I'm telling you that story because that's what my career starts and my God what I do is day trade attention. Now I'm gonna make this talk very valuable to you. I'm to go through everything that I know you're going through platform by platform and I'm gonna give you really good advice. I run a company right now called VaynerMedia. We're $100 million a year strategy and creative and media agency. We have Under Armour and Toyota and Dove and Budweiser and the biggest brands in the world paying us to sell stuff on the internet. Let's start with a couple things that you need to know. Social media, it doesn't exist it's a slang term. Social media is the slang term for the current state of the internet. If you're sitting in this crowd and still not devoted to these platforms, you will lose because the only thing that people care about in marketing and sales that are smart and successful is attention. And if you don't realize that everybody's attention is now in their phone you are not paying attention to society. How many people in this room, in this arena, arena are always within arms reach of their cell phone in every 24 hour window? Look around. Keep 'em up. Look at this. We're becoming robots. We'll get into that later. (laughter) Over 50% of everybody's time in the world on a phone is spent on a social network. Besides the games you're playing maybe Pokémon GO's changed that a little bit. Besides the games you're playing and the things of that nature, this is where we live and for you to sit in this audience and disrespect Facebook, Snapchat, Instagram, Tumblr, Pinterest all these platforms is an insane thing. More importantly, it's just beginning. Everything we know, everything we play in didn't exist 10 years ago. How many people here are retiring within the next 10 years? And I don't mean you're gonna crush it and go live on an island. (laughter) I mean you're old and you're finished. (laughter) My man, you still look good though. I'll come and fish with you. This dude gets a pass for the rest of you, you have to understand we are just starting.

This is the biggest communication shift in our society since the printing press. You have 50-year-old men sitting in this audience right now who texted a poop emoji last night. (laughter) What happens, you have to understand, is that when these platforms are formed we aged down our society. How many people in this room said they would never be on Snapchat and now are? Don't lie, lying is the devil. Look at the hands. I want people to look round. Actually, you know what? Stand up. Let's do this right now. Stand up, right now, stand up. Don't get lazy on me. You're supposed to be athletic. Stand up, stand up right now if you not generally if you, if you said you would never be on Snapchat and you now are, stand up. If you didn't do that, sit back down. I need you to look around this room. I need room before everybody sits down because this is basically my entire keynote in visual form. I am going to buy the New York Jets on one thesis: I'm going to invest time and money in the places that you say that you're not going to be that I know you're going to be in. You can sit down. Next year 50% more of this audience will be on that platform. There is so much opportunity going on and what happens is did I cry when my email newsletter went from 91% to 30% over a decade? No, I did not. Did I cry that I spent seven years building my Twitter following to 1. 3 million followers by, as many of you know, how many people here have I replied to on social media? Raise your hands. One by one by one and engaging. Did I cry that when I had 5000 followers on Twitter and I tried to sell a book or wine or somebody to do something with me that I can get more people when I had, let's really call it right, when I had 50,000 followers on Twitter, I could get more people to do something than I can today at 1. 3 million followers on Twitter. It's why when you roll up at me and go I have this many followers, I don't give a crap. It doesn't matter how many followers you have. It matters have that care. (applause) You're not paying the bills with 100,000 Instagram followers that you bought on eBay, jerk. (laughter) So, I didn't cry that Twitter was losing its grip. That was a big run for me. That's where most of you met me and understood me. That's where I built my brand. It was huge for me but in 2011 and you can go watch the videos 'cause they're out, there I was 30 pounds heavier and pretty angry that Twitter was going away. I could taste it. The attention was slipping. Even though I had 700,000, 1. 1 million followers I was losing it. I could tell and so I made investments in where I thought the platforms were going. Some worked. Instagram, Snapchat. Some didn't Vine, SocialCam but the one thing I wasn't crippled by was putting in the work. And let me tell you the part of the work that I put in that I think a lot of you need to consider. On the flight here this morning I looked at the last 50 tweets and profiles of people in the audience right now. On their Instagram accounts they put out content. 15 people comment. 11 people comment. 29 people comment. 67 people comment and of the 50 people I audited to get fresh data for this talk not one, goose egg, 00, Robert Parish, not one, not one of the 50 people in this audience engaged to one of the people that left a comment. Not one follow-up. Zero because we've become, in a social media world, pushers. We talk but we don't listen and that is where all the action is. If you take one different tact from this talk and I'm doing this selfishly 'cause I want you to email me in a year 'cause you're gonna make more money. And I want you to say thanks. If you do one tactical thing, we're talking theory, I'm giving you tactical. Do me a favor instead of going on a 20 week ab program or you want to get your butt up and squat or whatever instead of that program do my program reply to every single person that leaves a comment on any social media that you put out for one year and watch the money grow. Do that plan. (applause) Problem is that takes work. Problem is to win you've gotta stop watching entire seasons of "House of Cards. " (laughter) That is the variable but the attention is there. Crying about Facebook, let me tell you about 50 people that

jumped on Snapchat in January and are making 10 times the money in whatever game they're playing because they're arbitraging Snapchat while Facebook's going three. Crying about Facebook, be a business and not be an income eater instead of buying a nice thing with the money you make from this, why don't you take that money and deploy it against Facebook ads because the word wine was five cents a click when I started and now it's nine bucks. And a three bucks it was good and at seven bucks it wasn't as we sit in this arena today right this minute the number one way that I would build every one of your businesses is Facebook ads. I love Snapchat. I love Instagram. I love a lot of things. The number one guaranteed way for every single person in this room to make more money is Facebook ads. The problem is a lot of people in here are headline readers and not practitioners. You have opinions of Facebook ads but you never really run a campaign at scale and so that to me is fascinating. And, by the way, you know when I do these come talks especially in a big room like this, I'm not gonna be able to answer follow-up questions, everybody always asks me, "Okay, Gary you got me. "You were so great energy. "You're super handsome and I'm super pumped and I really want "to do this and so what do I do? " So I'm gonna tell you what to do off of anything you hear from me in headline and you want to go get the details like again, and I'm gonna pound it into your face until you succumb, Facebook ads will make you a lot more money if you deploy the ads and if you learn it which means 27 to 30-year-old males that live in Omaha, Nebraska that are into fitness. There's a lot of skip, Omaha, what up? (laughter and cheers) Whatever you decide to target, I feel like just randomly say Las Vegas, Nevada,-- Chattanooga, Tennessee-- (cheers) Chattanooga is like, "Us? " (laughter) "Can't believe he said that. " Facebook ads, Facebook ads. Let me tell you the one thing that you need to do off of this talk if I talk 'cause when I get in to other things like Musical. ly and other places and you're gonna be what the hell is he talking about? There's a site you should go to after you hear things from me if you want to get more deeper information on it. I'll let you get your pens it's G-O- O-G-L-E, Google. Do you know how many of you piss me off so much when you come up to me and say, "Gary but I don't know how to run Instagram ads. " Figure it out, Peter. (laughter) Like what's the matter with you guys? "Gary, I didn't grow up with this social media stuff. "I don't know what to do. " Hey Rick, you didn't grow up driving, you figured it out. (laughter) And so what does this is all really come down to? It's very, very basic if you look at every business that is ever succeeded, every single one of them, there are couple of core principles. First of all, your product. If your product sucks the greatest marketing in the world will not fix it. Right? You guys in this model are not in charge of that so we need to move to the next thing. Let's assume that's in place sure seems that way, right? Let's go to the next place. Attention. You have to know where it is and preferably you need to know where it's underpriced. Do Instagram advertising four years ago when taking a picture your butt and abs worked good 'cause less people did it. Now everybody does it, doesn't work as much. When it's every third photo on Instagram you're not going to stand out. It's not gonna work. You may, it may work for people that like to look at it but they're probably not gonna buy your stuff and so understanding where attention is and then trading it. To me, right now, the greatest deals in order: Facebook ads, I'm sorry the organic reach went away. Let me just give you a punchline. No advertising is free. Tell me where the alternative? What are you gonna call your local TV station and they're gonna run your commercial for free? What you call the Chattanooga Press and they're gonna put a full-page ad for you and your service for free? For the people that did Google Adwords you guys think you've been hurt by the Facebook algorithm. Go talk to the homies in digital marketing that used to rely only on Google when Google would change their algorithm and people lose $1 million overnight and go from the first page result of diet to page 97 and have nothing. So that's not that hard-core. The other thing, Facebook, Facebook ads. Number two best deal in the market, Instagram influencers.

You may think of yourself that way and that's great. You may have a good following but so do a ton of other people and you can email them. They all love to put their Gmail in their Instagram profile because they can't wait for you to call them and offer them some money. Sponsored content through influencers is an extremely strong arbitrage. Again, it is my great belief because I've spoken to so many and I've watched so many and I paid attention, we're not investing in our business. We want our time and our content to drive our business but when we get the money, we want to go buy stuff. put in the corner. We don't put it back into our business and that is the grave mistake of so many of you in this room today. So whether you deploy that against Facebook ads or Instagram influencers both are under enormous arbitrages that can build your business. Because remember the content is the variable, but you have your story, right, other people have their stories. The number one thing you shouldn't do is make up your story 'cause that's how you lose. So you need other stories. You've gotta figure that out, got it? Next, Snapchat. Telling you guys right now, you know, in 2012, '13 there's a video I have online where I yell at the audience and I say, "You're all gonna be on "Snapchat you just don't realize it," and I believed it and obviously a lot of people probably remember in November, December, January of this last year and into this year the DJ Khaled phenomenon happened. Brought a lot more awareness. Over the last six months it is gotten so much older where as everybody thought it was like sexting for 15-year-olds. I think everybody now understands it's not. And exactly what happened in Facebook I used to go and talk in 2006 and '07 say Facebook, Facebook and everyone's like, "That's college," and I was like, "You don't understand. " When an entire generation of people take on a platform as they age up and their lives change they drag people down. I called it at the time in 2007 the grandma rule. I felt that when the kids of Facebook, the early 20s, would start having children and put their pictures on Facebook that grandma was gonna sign up for Facebook. It's happening faster now. Do you know what fastest growing category on Instagram of people that take selfies are? 40 to 50-year-old women. Cougars selfies. (laughter) The way we are eating, the way we workout, the way we dress, everybody in here right now, if you can think of how old you are if you're lucky enough to have known your parents at the age you are right now and you can think about them you were dramatically younger in your behavior and appearance and the way you roll. That's what's happening. Technology is bringing us down. Down the age down-ification. And my friends, the stakes are high with what I'm talking about because what is really exciting is the next 10 years the Snapchat, Facebooks, these, how many people familiar with Musical. ly? Which means you have an 8 to 14-year-old girl in your life. These things are popping up. There's opportunities. There's a real opportunity. Who's gonna be the first 20 people here to figure out what old people do on Musical. ly? I'm trying to figure it out because the attention's there and there's opportunity. But no you debate dumb things like, "Is it a fad? Will Snapchat be here in two years? " Who gives a crap, it's here now. Nobody cares when the number one show on TV "Empire" or "American Idol" is number one they run commercials during it and if it's canceled three years later who cares you run it somewhere else. While you sit and debate is Snapchat gonna be here or how long or what to do on it while you sit and ponder your squandering real money. So here we are halfway through the year, Facebook changed their algorithm. A lot of you relied on that. The world a lot of people in the world relied on that and what they've done for the first six months of this year is couple different things. Strategy number one, complain. Strategy number two, (holds breath) "They have to change it back, we're all gonna leave. " Yeah. (laughter) Instead of figuring out the ad product, instead of investing in what's going on in Snapchat, instead of trying to create video content on Periscope or Facebook Live. Either you're on the offense or your on the defense and you gotta make that decision as you sit here today which part of this game are you going be on. Because what you have to understand is the attention of the end consumer is shifting faster and faster. $90 billion spent on television commercials by my clients at Budweiser, Dove, Toyota, all these platforms, right? Follow me here because this is gonna get really important to you.

'Cause a lot people are like, "Who cares, that's different? " It's very different. They spent a lot of money on television. Watch this. By show of hands, how many of you in this audience now when you watch TV, outside of live sports, watch it on your time not when it actually airs? Through Netflix, HBO Go, DVR, TiVo, raise your hands. Oh weird, everybody. And how many of you fast-forward every single commercial when given the chance? Oh weird, everybody. And even if you're lucky enough from the advertiser standpoint to get a commercial in front of you for let's say I don't know you dropped the remote control off your bed. (laughter) Let's say if there even that lucky, even if they're that lucky, the second a commercial gets on you grab your cell phone and you check your work, you look at your social, you do not give attention to what you're watching. Attention, commercials aren't dead. People watch TV. People don't consume television commercials. Got it? And then what really makes me angry with you guys and when I say "you guys" I don't mean you. I mean everybody on Earth. (laughter) Is you do things as a businesswoman and man that is in your best interest but then you as a human when you live you would never succumb to that. You would never click a banner ad. You don't want to bull crap social media ad either but you do it because that's what you want to happen on your end but as a user you would never do that and in that balance is where all the magic is. Why does the TV numbers that we just saw matter? Why does the following to, guys, do you know that billboard prices are up 15% in the last five years. Billboards, outside billboards, right? Meanwhile every person here when they're the passenger in a car is looking at their phone. Nobody's looking at billboards. Just common sense, billboards are not as, as a matter of fact by the way, real quick, when you leave this conference do me one favor. Look at five people driving when you get to the airport and go home. Just look into five cars, I promise you the following: every passenger is looking at their phone and three out of the five drivers are looking at their phone. You guys have scared me so much. I've been doing this for marketing, I'm now driving with two hands again for the first time 'cause I don't trust you jerks. (laughter) My friends people aren't looking at billboards. They're not even looking at the road and when we have self driving cars, that game is over. So where is the billions of dollars from billboards going? Where's the almost trillion dollars, hundred billion dollars of television money gonna go? How many people here can't wait to leave this conference go home get to their mailbox and carefully go through their direct mail? You're weird, lady. (laughter) Tell me where those billions of dollars are gona go? Let me save you guys all a lot of time. In the next 5 to 7, 10 years tens of billions of dollars from the biggest companies in the world are going to go into these digital properties. And the word wine goes from five cents a click to 10 bucks. And a Facebook ad that I was running 24 months ago the cost me $0. 50 to reach a thousand people is now costing me four bucks. And right now you can compete with yourselves in that world but when Coca-Cola comes and when Toyota comes and when the NFL comes, your numbers are not to be as good. You're gonna be paying $88 a person to sign up instead of $8. So you can either act now and grab away or you can continue to complain, debate, ponder and not educate yourself for you to be a self serving coach entrepreneur sitting in this room and have not spent the one hour to either read or watch a YouTube video of how to actually place a Facebook ad which I know, you know what, let's do this for each other. I'm gonna ask you something right now you're gonna want to do it. How many people here, by show of hands, have never placed a Facebook ad? Raise your hands. It's gonna be, higher and how many of those people haven't even spent one hour in learning how to do that? Please tell me the truth for each other. It's unacceptable. Let me rephrase, it's acceptable if you do zero complaining and you're super pumped. (laughter) If you're happy, I got nothing for you but I'm just very, very taken aback as somebody who really believes that you have to sacrifice if you want. Guys, think about this for five seconds, you have the audacity

to be here today with the ambition to live life on your terms. You sit here and you have the audacity. You're gonna be the very small 1% of people that can live unbelievably on your terms. Guys, the top 1% income makers in America, the bottom of that number is $400,000 year. If you make $400,000 a year you are in the 1% of earners in this very competitive country, right? And that's a lot, a lot of money but I think a lot of people think $1 million is before it gets good, it's crazy. We have to reframe entrepreneurship. If you want $100,000 a year you sit in this room today and you have the audacity, I hope you're running Facebook ads. You sit in this room and you have the audacity to want to live on your terms. To not work for anybody else. To support your entire livelihood on you, right? When I hear that and I know that you play Candy Crush have Netflix on 24/7 and I know that you've been in 48 parks this weekend trying to find Pikachu,-- (laughter) by the way, I believe in work life balance. There's a lot more to life. Family, leisure, do it, right? But, but you want to live on your terms. You want to be able to do all these great things and have all this stuff and you don't know how to run Facebook ads and you haven't signed up for a Snapchat account. Do you understand as an entrepreneur you benefit from signing up for those accounts just to learn even if it's not successful for you. I signed up for SocialCam, spent lots of hours, it died. I got nothing from it but when Snapchat came along and Instagram video came along, the things I learned by creating content on SocialCam provided me the advantage that I needed to make all the dollars I have. And so, he said something great I'll talk to you outside. (laughter) And so, I just genuinely, as I wrap up here, really want to focus on work ethic. You can not go home from this trip to all the lovely places you live and muster up more talent. You can get better at what you do, right? I'm not gonna go home and shoot so many basketballs that I'm gonna be in the NBA. Right? I can become a better pickup player but nobody here's gonna go home and all of a sudden become dramatically more charismatic, a better storyteller, you can't go home and do that. You can get slightly better but your DNA is your DNA but everybody here can go home and work one more hour and work two more hours. (applause) It's just real. The reason I push it, and by the way, the whole like immigrants do well. It's 'cause that's what they do. They just don't do anything else. When you come with nothing and you live in crap, you just work every God damn minute and then all of a sudden 13 years later something good happens. And I just genuinely want that for people to understand, look yourself in the mirror in your hotel room tonight and say, "Are you putting in the work that supports the words that are "coming out your mouth? " My buddies always tell me, "I'm gonna be a millionaire. " I'm like, "You're on six softball teams, John. " (laughter) Is your work ethic mapping the bull crap that's coming out of your mouth? 'Cause you talk a good game. You all talk about what you gonna do but then the work doesn't support it and so the work ethic is the number one variable because guess what happens when you actually work three or four or five more hours a day? Because you can still sleep your six, seven hours. You can still find an hour or two with your family. You can have a 9-to-5 job and still have plenty of hours to work. Guess what happens? You watch the one hour YouTube video how to place a Facebook ad. You place the Facebook ads. You look at the data. You realize what's working and not working. You find your moment. You find your segment. You find your picture and video and you start doing business. You know what else happens when you deploy five or six more hours at work? You reply to all the people that say nice things about you on your Instagram account. You put in the work. You know what else happens when you were five or six more hours a day? You start making social media posts that look like this which were very successful for me, "Post your phone number, "I'm gonna call you and give you value. " And then you spent five hours talking to the people that decided to follow you and through a 18 minute conversation with them they decide to do business with you. But when you don't put in the

five or six more hours, you don't. And you start relying on things like ooh, the Facebook algorithm's been good for a couple of years. And then you wake up one morning and Zuck screws you. (laughter) I have no interest in letting any platform, any move, any business dictate my future or my family's future and the only way I know how to do that-- (applause) and the only way that I know how to do that is to fundamentally out work every single person in here. The work ethic matters. It's the part you don't want to hear. It's no different than the ad he just showed, right? No. No, there's no system. No, you're gonna have some amazing Facebook post that's gonna getting all these people into your tree and then they're gonna do the work and you're gonna be in Jamaica laying there drinking Rumchada. (laughter) No, you know zero people on Earth that have been really successful that haven't put in the work. Zero, if they've done it themselves. If mommy and daddy gave them a crap load of money, cool. But anybody who's ever earned it put in the work and we live in a world right now and let's cut to the chase it's been so great in our country for so long, we're soft. We complain about dumb stuff. Lots of it. We complain, we're not grateful, we think things are to be handed to us. Let me give you a punchline. You're a minority? You're a female entrepreneur? Your parents sucked? You grew up in a bad neighborhood? Something really bad happened to you as a kid 'cause the neighbor's a weird dude? The market doesn't care. It's not fun. That's no fun especially the last scenario. People have bad things that happen to them. Here's the sad part, the market doesn't care. The market doesn't care what's amazing about the American business market is if you're good enough you win no matter what you look like. They will buy. It's what we do. It's been proven over and over again. The problem also is if something's against you, you can't speak English when you first come here, duh-duh-duh-duh, the market equally doesn't care. It will reward you but it will not feel bad for you. And it will not penalize you, which is unbelievable. We are so, so lucky and I just fundamentally believe that 99% of you in this room are not taking full advantage of it because I'm gonna leave you with something very weird, do me a favor. Do me one favor from this talk, go to a retirement home. I want you to go to retirement home in the next six months and volunteer for one day and I want you to have 10 to 15 conversations. I'm gonna tell you what to look for. It's the scariest word I've ever heard, regret. If you talk to 90-year-olds in a retirement home, they will talk to you about regret and what they talk about is the things they didn't do instead of the things they did. My friends, we are all going to die and we got real lucky. I don't know if you've looked to the math but the rarity of actually becoming a human being is unbelievable. I mean, you know, your mom could've went to go get another glass of wine. (laughter) The math for that moment to happen. You could've been a tree. rhino. You could've been a rock. You're a human and wait a minute, punchline, you live in a America. Lotto! (applause and cheers) Lotto! Lot!