#AskGaryVee Episode 28: How to Keep Your Startup Competitive

– Kyle say hello to the VaynerNation. – Hi everybody, I’m Kyle with LockerDome. I run for partnerships at LockerDome. – Awesome! – You can reach out to me at
lockerdome.com/kylecummings. – I like the plug Kyle, go
ahead what’s your question. – Yeah absolutely, you’ve
been in the influencer space for just over a year,
specifically with GrapeStory. With that business model what are the biggest
challenges you’re facing in scaling that business model and what is the brand you would say is embracing that model for marketing with mobile and those channels: Twitter, Snapchat and Instagram specifically. – Which brands are doing a
good job in those channels using influencers? – Yep. – Uh, I think a lot of brands
are starting to do it well. Right like any brand that’s
not doing well is losing but I think our GE
client was first to jump, did a really good job. Virginmobile’s done a really good job. I think Hewlett Packard
right now, Samsung, there’s a lot of brands, I
think, that are getting the value of influencer. The problem with scaling my business is we’re a talent agency, right. And so these guys and gals get built up. We build up with them and then they get too big and they want to go to CAA
or things of that nature. So, unlike Niche which is an
investment that’s building technology in a platform, you guys, there are people who are
doing it smarter than me. The model issue for me is, it’s just client service. It’s just people. You’ll only have the leverage for so long. But it’s not different
than CAA or William Morris if you’re the best and you’re good at it. There’s a real business there. But that is clearly the challenge. To make this an over arching
question for everybody, when you decide to build a model where you’re not building an asset, which is technology or
something of that nature. You’re only vulnerable to your sources. It’s being an accountant or a lawyer or an agency. You’re only as good as
your last billing cylce. And that’s why those businesses don’t get the higher multiple. That’s why people want to
build technology companies. For me I love people and so I’m always gonna
have a competitive advantage betting on my strengths which is people interaction. So I like building those businesses but I gotta tell you something. It’s really not for everybody and there’s definitely
a huge vulnerability. – Cool.
– Cool man, thanks for stopping by.

_ Hey, I’m Jordan Moran. – Jordan. – I’ve been a huge fan of your
since the Wine Library days. – Thanks brother.
– Thank you for having me. – Of course, say hello to VaynerNation. – Hello guys, pleased to see you. So, my question for you is I am transitioning to a
new project management role in a company. How do you maintain having
high standards with your team making sure things get done, but still keeping the project
on time and on budget? – I wish Aaron Bear was
here from VaynerMedia because he is the head of
all that at VaynerMedia and he’s killing it. You know I think it takes humanity. I think the answer is humanity. I actually think the best way to be a great project manager or get things done is to be a great listener
instead of talker. Right? You go into this new role,
I see with a lot of my project management people. They’re organized, they’re good but they want to talk it to success. I actually think it’s the drop
down, flip it and reverse it. I think it’s a Missy Elliott structure. I think the way you win is
by listening to the people of to why they’re not doing well. Why are they two weeks behind? If you haven’t actually applied empathy and understand what’s going on there, you become known to everybody as the project manager that gets it. And so I say you walk in with, not your architecture and organization and like, I’m gonna guide this. You’re gonna guide it with
your ears more than your mouth. And that is most something
most project management oriented people only learn later in life and realize is the key factor. – Got it. Thank you. Appreciate it.
– Thanks for those kind words. I’m glad you got on. Alright next, let’s go.

So I co-founded a company called Shimmer and we’re just building
a whole bunch of assets around social media and filter space. – Okay – So as you know, you work with the space, it’s really raw. – Yep! – So, what do you think the
biggest opportunities are there currently untapped? – In social media influencers? – Yeah, like, obviously
there’s brand agencies, there’s events. All that stuff, where do
you think like the next you know, like the next big
thing can be in the space? – I’m gonna go over arch again. I know we already had
an influencer question, so I like how this is working … We’re you, like holy
crap he asked way too .. We’re you pissed? Yeah. – That’s not cool. That’s why I gotta go first. To me this is the biggest thing that people don’t understand about the influencer space. Not only do influencers create content, they create distribution. So for the first time ever, in one entity, you get both things that people want. You know, if you think about television production companies or
movies, Steven Spielberg. But then you need distribution, right. So what I would say is, the biggest opportunities for these guys, for you, for me, for everybody’s that ‘s
playing in the space, is to recognize that unique principle in today’s internet world where they actually can drive two things. And then apply them. The other place that I think
there’s a huge opportunity, to answer you question, to give everybody more
information, go a little deeper as I’ve been trying to go, is product. I think that the infomercial space, the leveraging of like, you know of like celebrity into product. I at one point could have easily sold tens of thousands of glassware sets because of my wine influence. I think retail and
product, call it QVC 3.0 is another place that
people need to think about. – Okay.
– Thanks brother. – Appreciate it, Gary.
– Good luck to you, stay well. Next, let’s go.

– Hi Gary. – Hey man. – I’m Ashish, I’m a co-founder of a startup
company called lawtrades. We’re a market place for legal services. – Love it. – So my question is, you advise startups,
you invest in startups. But when startups become
inherently competitive with other companies. – Yes. – What’s your biggest advice
to stay ahead of the game? Is it just to give more value
than the person behind you or just interested on
your thoughts on that. – You know, I default as an entrepreneur thinking it’s always gonna be competitive. You know, I love when people are like, nobody’s in our space. I’m like great! Because if you’re good, everybody’s gonna be in your space, right. If you figured something
out, you’re gonna have plenty of competitors. You know, to me, it’s a same old game. Like, it’s better execution,
it’s better product, it’s better service,
it’s a better everything that’s actually going
to drive your business. So, I can’t give a blanket answer here. This is why VaynerMedia works in a world of #AskGaryVee and me
putting out content. I can give your general stuff. I’m trying to go deeper
and give you more stuff with this format. But I need to know who
your competitors are. So, for you, your business are they bigger entities with more money? When you’re David, you
don’t play Goliathscape. When you’re Goliath, destroy David. Like, that match-up, it
should have never gotten to the sling shot. Just squish that guy. So, to give the practical advice, it’s gotta be something … Here’s an example, back to depth. Something I’m trying to
challenge myself on this show. Was anybody else surprised as hell that I barely talked about
VaynerMedia for three years. Like, for somebody that’s
always out there promoting you noticed, if you went
to VaynerMedia’s website for the last two, three years. There was like nothing there because I was David. And I needed to make sure
that the bigger agencies didn’t realize how big
I was actually getting. That was my competitive play in a competitive landscape. Now that I’m getting a little bit bigger, I’m getting a little bit more out there. I’m putting myself more out there because I have the leverage
of having more money to hire the best talent or
acquire the biggest clients. So, the answer to your question is completely predicated on where you are in your life cycle versus
your competitor’s life cycle. And what I would tell you is, and here’s where I can give
the most tangible answer though still theoretical, never play the other person’s game. – Got it. – That’s where everybody gets, like oh, that big guy or gal is now running ads. We’re gonna too. Problem, they have ten million dollars. You have $80,000. – Yeah. – You lost.
– Yeah. – And so it’s never playing
the other person’s game. – Cool man. Thanks a lot. – Real pleasure meeting you.

– Charlie. – Nice to meet you.
What’s up, guys? – Pretty quick question, what’s your stance on investing
in competitive companies? – Meaning? Like for me as a fund. – You as a fund, you individually – Don’t, guys. – [Steve] It’s gonna
be useless audio though. – It’s not useless
audio, it’s just a horn. Nobody in the VaynerNation
is concerned about a horn. – [Steve] They won’t
be able to hear the words. – They’ll be able to hear the words. Do you think they’ll be
able to hear the words? – Yeah. – Can we hear the words. I get it and I love you
supporting your teammate DRock. I see what you’re doing.
I love the support. But that horn, this fire truck, is adding to the ambiance of the fact that we’re sitting in New York City. Like we’re not sitting in our normal room. They’ll deal with it. Right DRock? Alright, thank you. It pains you right? It’s like the editor in you just like can’t deal with, now the horns are coming. This is just pouring it on you. We’re sticking with it. So, if I’m a fund, for example, when I was an investor in Gowalla and there was a chance
to invest in Foursquare. I didn’t, but I know
people that have invested in similar companies. Are you asking me like
to put my VC hat on? – Yeah.
– And angel hat. You know, look I think,
there’s two answers. One I think, if you’re
investing in a company and then there’s a chance
to invest in somebody who’s a direct competitor and that company wants you to do that. That seems to me like … (sirens blaring) (laughing) That seems to me like a
little bit of a dick move. What I’m more worried about
is the problem I’m facing now. (sirens blaring) I’ll be quiet for you. This is me doing a nice thing for you. But the tape is running,
the tape is running. – It better be. – To me the bigger problem is the pivot. Right now my biggest problem is I’m investing in companies that
are a little bit different. But I can see an entrepreneur how one move by each product gets them in to a competitive space. My answer is, you go in with the open eyes and honesty that you can. But you can’t fight against
the fact that people are competing with each other. As we now live in a world
where the cost of entry to compete with each
other is so much lower. I think you should go in
with the right intentions. Your reputate, by the way, the only reason I think you
should be a good guy or gal and not invest in a competitor, is because your reputation is your equity. Like it’s selfish. It’s cause I want to be
able to invest in things in the future. And if I have a reputation
for constantly investing in my competitive stuff just
to win on short term money, I’m not gonna be able to get into deals. So I think reputation management in a transparent world matters. I think that is a dick
move, if you’re doing that. – Gotcha. – Is that basically
answering your question? – Totally makes sense.
– Why do you ask that question? Is that something you’re seeing out there? – Just kind of curious. I co-founded a startup with Max. Sometimes we kind of
run into that problem. People say no, they already
invested in a similar company. – And do you view them
as a direct competitor? – No, that’s the problem. Like on paper, they
see us as a competitor. But when you dive into it’s not. – Well that’s where you guys
just have to do a better job and educating people how it’s different. – Gotcha.
– Thanks. – I appreciate it, Gary. Thank you.
– Thanks guys. Guys, episode 28 in the bag.